lecy-leavers, and what matters most to them matters most to us. it's no wonder we have a 4.9 out of five client satisfaction rating. ameriprise financial. >> all right. >> guys, thanks so much. welcome to closing bell i'm. scott connor, live from post nine here at the new york stock exchange. busy day. this make or break hour begins with the momentum message from palantir to applovin to robinhood to many stocks in between. that strategy getting hammered today, as you know, has some wondering now whether an even bigger rollover could be in the cards. we'll ask our experts that very question in just a moment. in the meantime, let's show you the scorecard here with 60 to go in regulation. it has been ugly from the jump today for the majors, led by a big drop in the dow jones industrial average off the worst levels. we're still down by more than 1%. walmart. you probably know that story by now too. it's the big drag there

after its outlook disappointed the stock having its worst day since november of 23. far from the only culprit, however, jp morgan, goldman american express all getting hit as well today. and tech not much better although nvidia it's been higher ahead of its key earnings report next week. we'll watch that over this last hour as well. it does take us to our talk of the tape, whether the reversal in momentum portends a rough patch for stocks overall. let's ask chris verrone. he is partner and head of technical and macro research at strategis. it's good to have you on a day like this. great to be here. you're watching this mau mau roll and you're thinking, what? yeah. well, first, i think we got to put this in a little bit of perspective. we're 24 hours removed from a new all time high on the s&p. 24 hours removed from a new high on the triple qs. so to say that this this market is on the cusp of some great rollover, i think is a bit aggressive. what we do have and what we have had are some divergences develop over the last number of weeks. we see it through the lens of momentum

over the last 24 hours hitting palantir, hitting robinhood, hitting carvana, but also hitting goldman sachs and blackstone and blackrock. so i think the shot across the bow. i don't think we're on the cusp of some devastating bear market, but could we correct or consolidate into, frankly, a weaker seasonal period ahead of us? i think it's certainly a reasonable view. i mean, you would suggest, though, and you are, that when you look at inside the market, at the internals that they didn't confirm the recent record high. >> it's the. >> first time in really 18 months where the recent highs have not been met with this swell of breadth. right. we only have 60% of issues above the 200 day moving average. the advance decline line this week did not make a new high along with the s&p. again, these aren't fatal developments, but it's certainly a change in the character. the language that we've been using is this is a very, very split tape. it's probably great for long short i think you've seen it all earnings season. this this divergence between winners and losers has certainly been pronounced. but what i also think is going on under the surface is you have this subtle leadership rotation taking hold. i mean, health care is quietly starting to perk up. we talked

about it last time on the show. abbott, gilead. bristol quietly some turns there that i think is reflective of a more modest shift to some defensive sectors. i was going to say that's not exactly the greatest sign for the overall market, which had looked a little bit tired lately, though really resilient. we've commented on that all week. absolutely. and, you know, here's what i think is important, scott. when we see cyclicality pausing domestically, i think the big takeaway is though, it's not being extinguished globally. i mean, the cyclicals in europe are on fire here. the cyclicals in asia are on fire. so it seems like anything cyclicality has just migrated to our east. and i think it's reflective of frankly of a value trade that's starting to take shape globally. i mean all these things we talk about health care, some staples, europe, china are all part of us of a stealth value trade. i mean, are you a buyer of that, too? because, you know, that's been a key part of the conversation as well, that the better value, the better return. this year is going to come from

europe and china, not necessarily the united states. in fairness, we were early here. so early in this business is wrong. we were probably too early this point last year talking about this, this turn in china or potential turn in europe. but i do think this is the real deal. when you look at the just the expansion in breadth in europe, the surge of momentum from china, the very procyclical leadership, chinese tech, chinese consumer discretionary, frankly, it looks a lot like how our market behaved 18 months ago over there. the cues were on the verge of a new high, too. i mean, the nasdaq 100 was back, you know, a lot. after sleeping for a bit, money started to flow back into tech. you've been watching bitcoin a lot too as it relates to the cues. yeah, it's an unusual dynamic where for basically the last two years, triple q and bitcoin have been tied at the hip. and the last five six weeks that has diverged here a little bit. so the extent to which, you know, both of these reflect risk on or animal spirits or this very low liquidity environment, it's not lost on us that bitcoin has really not kept pace with the triple q's here. we'll see what

that develops. but it's kind of added to the package of some of these divergences that i think at least suggest consolidation for the broader markets. listen the trend is up. the long term trends are still good. we have a lot of support underneath this market. 5858 50. but i think tactically there are some reasons for some caution. what happens if and you're not just a technician. i mean you look at the macro, but what happens if too much good was was priced in that may not come to fruition like investors thought. i'm thinking of a lot of policy out of dc. yeah, totally tax cuts. those aren't going to happen immediately. you have some you know, whether it's ceos or some of the world's best investors talking about the inability to invest with so much uncertainty around tariffs and other parts of, you know, trump 2.0 policy. well, i think what you just did there is you kind of described what our outlook for the year was, where we would be contending with a very high expectations. and again, not that that's unsurmountable, but i do think the bar certainly going into 2025 was a lot different than where the bar was

going into 24. and you kind of juxtapose that with what we saw globally. the bar is low. i mean, the bar is low in europe. the bar is low in china. so i think the ability to exceed expectations is far within reach over there. maybe a little less within reach here. my gut here is we chop this market for the better part of the first half. i think the better part of the calendar is found in second half of 25 rather than first. i mean, the other thing that sort of counteracts any bit of negativity or uncertainty is the fact that earnings have been pretty good. yeah, the outlooks haven't been all that terrific of late, but earnings growth was right where people wanted it to be. right 100%. the numbers have been good. i think 75% of companies have beat somewhere in that order of magnitude. but remember the market is about the future, not about the present. right. the market's giving us a read on the future here. so what i really want to watch is does this cyclical versus defensive softness that we've seen develop really since december. i mean, i think one of the ironies of the election is it has not ushered in some great move to

cyclicality. all that was priced before. so i think the big question going forward is do cyclicals weaken further and raise the prospect of some type of a growth scare in front of us? watch the bond market here. a two year yield in particular under 415 on twos. you begin to wonder if some type of a growth scare is out there. what's it telling us? that discretionary is the weakest of the year thus far? yeah. listen i think we got to look at this equally weighted discretionary. equally weighted is really not that bad. okay. so you're saying take out amazon tesla. you don't want to play that game where you're just taking stocks out of the index. but equally weighted discretionary and staples are about evenly matched so far this year. i think the way that relationship ultimately breaks is going to be important. but scott, it's a moment of big macro change all around us. i mean, look what dollar yen here is doing. this yen strength, i also think is another really important input as to how we want to view the world. i mean, since you're talking about that, i mean, i do hear some concern too, about, you know, the potential breaking of longstanding alliances from some of the talk in dc. and we'll see

what the actions are, whether they match the talk. is that an issue for investors? well, for this market i think about it this way. there certainly seems to be great change underway in the world. so why would we not expect there to be great change with security prices? and i think the most important of those on the macro front is what we're seeing in in dollar yen. i mean, if you look at all the yen pairs, frankly, a lot of them are back to where they were in early august when there was all this concern about the end of yen carry. i think we ought to revisit that and kind of understand what that means for east to west flows. right. that's been so dominant for a decade. money moving east to west. it seems like there's a reversal there now. and you see it with the strength in europe. you see it with the strength in china. is money starting to go the other way? it's good to catch up with you on a really busy day, chris. thank you. that's chris verrone. so one of the other things on the mind of the market today, and certainly playing a role at least somewhat a bunch of hawkish fed speak. steve liesman is here with that. and maybe steve, it was the

later speaker of the day who had the biggest impact in the way we should think about what the fed might be thinking could happen down the road. >> i think that's right, scott. you know, and you and i were talking yesterday about the minutes. had the minutes yesterday and three speeches today. it's clear that the uncertainty you were just talking about over fiscal policy from the trump administration, it has taken a central role in the minds of central bankers, fed officials. they seem more willing to amuse publicly about the potential economic effects of these coming policies from the administration. atlanta fed president raphael bostic, he said this morning that, quote, pervasive ambiguity calls for caution and humility when it comes to making policy. bostic still sees two cuts this year, but he said, hey, there's a pretty significant amount of uncertainty around that call right now. chicago president austan goolsbee, he said the more tariffs look like a covid size shock, the more nervous you should be. he's really worried about the supply side effects there. and then what scott was just talking about saint louis, alberta muslim saying immigration policy and higher tariffs are a potential source

of higher inflation. and it could be appropriate for the fed to become more restrictive if inflation from that is sustained, he said. the fed could also look through those higher prices from tariffs, but that the stakes are higher now because inflation is above target. what's clear is that the administration's policy path is now looming large in the fed's thinking about its own monetary policy path. >> well, very, very few people came into this year thinking there was much of any chance of the fed actually hiking rates. we could live with the fact that they were going to go from six cuts to maybe 1 or 2. but when you parse through what mr. musallam is saying for policy to become more restrictive, i we may have to hike if inflation becomes sustained. that really hasn't been seriously considered. >> it hasn't really been talked about. it's not priced into the market. scott. and it's funny that you mentioned that one particular phrase because i

called up somebody who i talked to about the fed with in on wall street and i said, am i reading this right? is he kind of hinting that if it goes the wrong way, we could be hiking? and that's what he chose to talk about, and that's why we're talking about it now. scott. it's the right thing. i think it's a low probability, a low probability event. but but it has to be on your radar screen if these tariffs are just to be clear, if they raise prices. and then what bruce allen was talking about was having second order effects that suggest that there's a broader issue. but the key here, i think, to emphasize is this is not 2018. and when muslim says, look, things are different now. the effects are different. you have there's more at stake here. that's what he's talking about, that tariffs may not be as benign this time as they were last time. >> yeah. just uncertainty all over the place. it feels like at the moment steve. thanks. steve liesman senior economics reporter well, the uncertain road ahead for fed policy, perhaps one reason why stocks have done little since the

inauguration. ceos wondering how policy is going to play out, of course, which takes us to the cruise lines of all stocks battered today on comments from commerce secretary contessa brewer joins us with more on that. quite the rollover for these names today. >> oh for sure. i mean but it was because it really threw down the gantlet when it comes to taxes on cruise lines, he said on fox news. and i'm paraphrasing here that cruise companies don't pay taxes, and that will change under donald trump. those stocks sank in response. look at royal caribbean. i mean down right now seven and a third percent. you've got carnival off by 5%, norwegian off by 4%. i even won spa world that provides the spa and wellness services on ships. it fell 8% today. the industry trade group told me cruise lines pay substantial taxes and fees in the u.s. to the tune of nearly $2.5 billion, which represents 65% of the total taxes cruise lines pay worldwide, even though only a

very small percentage of operations occur in u.s. waters. and then they went on to tell me that foreign flagged ships in the u.s. are treated the same as u.s. flagged ships abroad, where taxes are concerned. and the group points out that is exactly consistent with the administration's fair and reciprocal plan for trade. stifel analyst said, look, all these concerns are overblown and encouraged investors to buy the slump, to just get in there and take a cruise. scott. >> yeah. >> maybe brave today, given some of these moves that we've seen in the stocks. contessa, thanks so much. contessa brewer, for more on these markets, let's bring in gabriela santos of j.p. morgan asset management, christina hooper of invesco. it's great to have you both with us. how are you assessing what this market's doing. >> so i think as much as we've. >> had a lot of headlines over the last 30 days, i think we're still in. >> the. >> environment where investors, ceos, individuals are trying to assess the actual details around a variety of policy elements, around taxes, around government

spending, as well as the flow of goods and talent. and so for now, we're really counting. >> on the. >> momentum that the economy and earnings had going into this year, which is a good one. we still expect around 2.5% growth. and we do think double digit earnings growth is feasible this year, which is still a good environment for risk. but in terms of managing the decimal points of all of the major macro factors, we definitely have to have a lot more details on these policy aspects. and it's a trade. it's a tug of war there between aspects that can be good for growth or aspects that can be a little bit more concerning around inflation and margins. >> i mean, you're not the only one obviously, thinking about what this level of uncertainty is bringing not only, you know, business leaders, but investors. i want you to listen to both of you. listen to ken griffin today who talked about this down at the fii summit down in miami. listen, it's a. >> very difficult. >> time to invest because of the

policy uncertainty that goes with. >> this transformation. >> and one of the most difficult. >> areas that. >> we're all trying to navigate. is not just the status of. tariffs around the world. >> but who. >> will be. >> an important ally. >> to america. >> going. >> forward. and with. >> whom are we? >> are we. >> breaking down long standing. relationships that citadel's ken griffin, of course, down in miami, the point being second time in two weeks that he has used a forum to make that case. high level of uncertainty and very, very difficult to invest in it. you share that view? >> well, i think. >> it all depends on your time horizon. if you've got a long time horizon, i think it's important. >> to be well diversified. >> and to a certain extent put on blinders. because i do think it's. >> going to. >> be a bumpy road. >> there's going to be significant volatility. because there is uncertainty. we just don't know who the winners and losers are going to. be. >> there is so. >> much in terms of.

>> of unknowns with policy. i mean, we walked into this year thinking. that we were going to have some. >> positives for growth. >> in terms of both deregulation. and ultimately ta. >> cuts, but. >> that would take a little longer and. >> that we. >> would have some. risks presented. >> by. >> both tariffs. and if. >> we were. >> to get some sort of extreme immigration. >> policy with. >> a lot of deportations. >> those still exist. >> but there. >> are a lot of unknowns. >> around. >> exactly how you know. >> what what. >> the depth. >> and breadth of the. >> policies will be the execution. >> we've also. >> added in there. >> doge. >> because that could. create significant headwinds for the. economy in terms of a cut in government spending and a. >> lot of layoffs. >> that could contribute to an economy where job. growth has slowed. as jay powell pointed out last month in the. >> fomc press. >> conference. >> you seem to be suggesting to tune out or ignore a lot of the noise and focus on the long game. >> if you have. >> a long time horizon, i think that's what's important. >> i mean, ken griffin is not

investing for the next five minutes, right? the problem is, if you're a ceo and you're trying to invest for the next 3 or 5 or however many years, the policy uncertainty makes that a little more difficult. we came into this year thinking that it was going to be almost a layup. market's going to go up. economy is going to be good. animal spirits are going to take over. you're going to have more m&a. what if you just don't get that? >> well. >> again i harken back to diversification. there are opportunities around the world in a lot. >> of places. >> so to have an. >> allocation to. >> the us but also ensure that you're not underweight areas like european equities, uk equities, japanese equities, chinese equities, some of the other ems. again, we just don't know exactly how these policies. play out. but we do know that over the long run, being well diversified and having adequate exposure to equities is typically a good thing. >> this is now the in-vogue trade the part of the conversation. it's like no one wanted to touch china. it's the third rail of the investing

landscape. europe was a mess. cheap for a reason. economies in decline going into recession. you know their central banks. sure. we're going to be more aggressive in cutting before we were. but now everybody's talking about, well, there's better bang for your buck elsewhere. >> i think it's what we've really been seeing over the last month is if you're a bit unsure about the direction, valuations become very important. and this involves not just the direction of policy and the general macro backdrop, but also around the ai winners right after the deep sea news. and so i think this is where the rest of the world comes in. if you take a look at europe, for example, coming into this year, there was a 40% discount between europe and the us. the normal discount is 15. and this was true in every single sector in europe versus the us. >> for a reason. right. >> and then the question is, is there a reason for the discount to be that large. or is something improving at the margin cyclically? it does seem like it is. there's a little bit of an improvement in

manufacturing, in sentiment, in household actual consumption in europe. but then there's a much bigger question. and this is where i don't we're not fully settled yet, is if structurally something is changing in europe around fiscal spending, around more joint debt issuance, in a way that's a true game changer. and that will see this weekend with the german elections. and then perhaps related to some of the issues around the war in ukraine as well as tariffs. >> what if there are structural changes currently underway in our relationship with europe and the rest of the world? they're not cyclical. they become structural. is that a problem for the market? >> i think the question is how europe responds. does it seize the moment to join together and fix some of those structural issues that it has around low spending, low confidence, a lot of regulation, low innovation, low productivity or not? and

this is where, for example, some of the discussion around reciprocal tariffs might be a useful tool for europe to get together and think about lowering trade barriers, lowering regulations. these are some of the things that are being discussed. and that could be a pretty big game changer. the other one is around defense spending and having joint debt issuance to boost spending. >> maybe some of the tariff talk, high prices on, you know, inflation, people paying for eggs, for example, a lot of money. are you concerned about a consumer rollover? look, one of the reasons why we've been able to hit these new highs the way we have is because the consumer has remained so incredibly resilient through all of this 40 year high inflation. somehow the consumer hung in. well, walmart maybe has you believing that, okay, maybe times are going to be a little bit tougher ahead. is that a problem. >> so i think it's a risk that has grown. but i still think it's relatively small. i think what walmart was signaling today

was that there are significant unknowns. and so we could see a weakened consumer. i think it all really depends on the job picture. and again, if we see any kind of significant cut in government spending. >> or having a lot of we're having a lot of government cuts. >> for sure. >> and we could see the psalm roll triggered. i mean, the reality is we could be heading for something worse. thus far, though, what we've seen is a very resilient consumer. the worst case scenario, of course, would be a stagflationary type environment. >> people are entertaining that word. i mean, when you when you say that the risks are are pretty small of a consumer rollover. i mean. >> they're growing, but they're growing. admittedly. >> we are a consumption based economy. the market's not going to be able to deal too well if you get, you know, a walmart turns into somebody else and somebody else turns into the next company and so on and so on. >> especially with what has been

a fairly rosy earnings outlook for this year. agreed. we could see some volatility, some turbulence. again, it's not my base case, but i recognize it's a risk and it's a risk that's growing. but we there's always the potential for reversal. of course already some government workers have been hired back that were recognized as being more essential. so we don't know exactly how this plays out and that just contributes to the uncertainty. >> and here's where i think for the consumer so far, we've been continuously very positively surprised. consumption grew 4% in the fourth quarter. so it seems like it takes a lot to knock overall aggregate consumption off course. but we're definitely watching consumer sentiment surveys, especially around price expectations. and so is the fed. the last thing we've been thinking a lot about around stagflation is to christina point. christina's point around diversification is what we learned during the pandemic is a feature, not a bug. you need diversification for growth

downside as well as an inflation shock. and that's what we still see a lot of clients working through. >> all right ladies we'll leave it there. appreciate you being with us today gabriela and christina. we'll see you soon. thank you. all right. we're just getting started here on the bell. up next, capital wealth planning. kevin simpson will tell us how he is planning the growth names right now. joining us right after this break, we're live at the new york stock exchange. and of course, you're watching closing bell on cnbc. >> the number of public companies is shrinking. while the number of private companies is increasing. at franklin templeton, we're expanding access to the growing opportunity in private markets, offering the potential for greater diversification and enhanced returns through our world class specialist investment managers. we are empowering advisors with solutions to build the portfolios of the future today. alternatives by franklin templeton, your trusted partner

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luxury resale shop now with code 20 for 20% off terms apply. >> all right. welcome back. growth stocks leading the downside today. looking to snap a four day win streak here to share. how he is positioning right now is kevin simpson cio and founder of capital wealth planning. it's good to have you here. so what's your first take on the price action within this market today? yeah. >> i think it's. >> a great day for. >> trade school. >> scott. >> because it really is. >> an exemplification of. >> why we need. >> to hedge. >> when we. >> see. >> these stocks, these momentum.

>> names really. >> taking off. >> i mean. >> any given stock can move higher until it can't. and some of the trades that i hope we get to highlight today are how we've hedged some of the growth names in advance. and ahead of this little sell off we're seeing today. >> well go ahead. let's do that. >> yeah. well you know, we started our new growth strategy, the q devo. and previously when you and i would talk about option trading, it would always be 30 days or less on a dividend company. in the growth strategy, you can have a whole lot more fun. there's tremendous price fluctuations, lots of volatility. with that comes a lot more risk. but when you're selling calls and you're generating premium, it's a lot of fun to bring in a lot of cash flow. so the first trade that i'll bring you is on what now is strategy. but micro strategy. when we started it, we initiated this position in early november, got in the stock around $350 a share, and then into thanksgiving it ran to about 400. there was enthusiasm on bitcoin. there was enthusiasm, certainly on leverage. bitcoin with micro strategy, lots of volatility. we wrote a leap a

long term option. and the acronym is long term equity anticipation securities, which is a fancy way of just saying options that expire in excess of one year. so we went out to january of 2026 with a $700 strike price. so literally we could double the share, double the share price. and we brought in $160 on the call like unbelievable. so over the past few months, time has decayed. the stocks have come down a little bit. bitcoin has come down. so the stock is trading in the 320 this week. and we took the opportunity to buy that call back. and we literally netted $126 profit when we closed out that position. and on a $350 stock it brings our cost basis now down to 224. so we're up about 100 bucks on microstrategy even though it's pulled down. and we can continue to write calls against it for the rest of the year. so important day to think about a really good strategy. hedging strategies. the second one i want to cover, which is important today is

robinhood. you know you and i talk about this. yeah, we talk about it a lot on the on the halftime report. we love the stock. but look what's happening here. lots of volatility heading into earnings. implied vol. we wrote a leap a one year call for a $65 strike and brought in $13. now that gives us up to $78 of potential appreciation, which would be like a double round trip if it played out to fruition. but we expect that with any air pocket, we'll be able to buy this back. hopefully it'll be a similar trade to what we did with microstrategy. and the lesson is, you know, you can love a stock all you want, but when they go nuclear, it's not a bad idea to take a hedge. >> yeah. i mean, you talk about air pockets. i don't know if this is the beginning of a bigger air pocket for the momentum stocks that we've been talking about so much on the way up. what's your gut tell you when you see a rollover. and some of these names like you are today for some more dramatic than others, obviously. >> yeah. my gut tells me, scott, that it's probably not over. you know, you look at some of these

names and you can take your pick along the spectrum of momentum and they're up 40, 50, 60, 80%. robinhood, which we're talking about, we bought it in february. and you know, it's up quite a bit 40% over the past two months. i think it's up 70% over the past three months. so this is a name that, you know, had made some massive trajectory to the upside. and when you look at this chart relatively short, you can you can see how it could come down to 48 or 45. and at that point you can think about reentering some of these names. but if you're not in them, i would i would look at this as an opportunity to kind of get your list together and start picking away at stocks as they pull down. but after the momentum after the run, usually you get a pullback in another opportunity. and i think that's what we're starting now. not a massive rollover not a sell off. not the start of a scary bear market, but just a little bit of a breather. that's a normal course of market behavior. >> how are you feeling about your nvidia ahead of earnings next week? >> pretty excited. you know i wish we could own this in the

dividend strategy. we have it in growth. it's a name that hasn't been talked about every five minutes. people aren't expecting it to double every day. so i think expectations for retail investors are a little tempered. and you can't expect 200% growth every quarter. but i still think that this is the horse that has to lead the market. they have to have incredible growth. they don't have to, you know, blow it out of the water. but we think the growth is going to be really positive. we learned that from the hyperscalers that they're going to spend money here. so i'll be shocked if nvidia doesn't deliver. >> what's what's your take on the hyperscalers. >> well you know we love meta. it's our number one pick for the year. it's selling off just like we talked about more dramatically in the broader picture after a 20 day run. we also own microsoft. we know what they're spending here on you know, nvidia specifically in most cases. but what we think they have the profits and the free cash flow to support it. so this is a this is a stock microsoft that's in the green today a little bit of a surprise. i don't think i would be buying meta here. i'd be waiting for it a little bit more of a pullback. but we really

love the names long term. they crushed it in 2024. and they still need to lead the way from an earnings perspective for 2025. because ultimately for the market to grow into this valuation you need earnings to deliver. so far they have. but we really need it out of these big names to keep that momentum going. >> we'll see you soon. appreciate you. thank you. that's kevin simpson. all right. up next, retailing legend mickey drexler is standing by with his take on the health of the consumer. right now, the pockets of opportunity he sees in that of opportunity he sees in that space. we're back on the (♪♪) at enterprise mobility, we never stop looking for new mobility solutions. because sometimes the best road forward, is the one you didn't expect. (♪♪) when i started walton goggins goggle glasses, i had no idea what i was doing. but godaddy airo does. using ai to build a logo, website and social content. so i can let the world know, if your goggles ain't goggins, they don't belong on your noggins! with dexcom g7, managing your diabetes just got easier.

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you learn a lot here at cnbc. it's also a lot of fun. >> all right welcome back walmart shares having their worst day in a couple of years today after the company gave a dour outlook. it does raise concerns about the health of the u.s. consumer. it's a topic our next guest spends a lot of time thinking about. retailing legend mickey drexler is the former ceo of gap and j.crew, where he was also chairman, and he's now chairman and ceo of alex mill. welcome back. we haven't seen you in a while. >> chairman only. >> all right. chairman only. we gave you a lot. >> of time. okay. >> the point is you're a retailing legend. is that fair to say you take issue with. >> i don't like. that because. >> i think that. it's over. >> all right, well, we think that about you, which is why now is a great time to talk to you. walmart gives a week outlook. how do you feel you're on the front lines of the consumer game how you feel? >> i think. >> there's you know i don't know from the big monsters like walmart and all that, but i think i do my call around to my friends and business is been very tough in january. business is tough in february. might be

whether inflation ain't going anywhere. the i think tariffs who knows what's going to happen with that and everything it sailed is oh and you know the designers are getting not great pr these days. prices are high. so and i think people are worried about their jobs i don't know that that's. >> you're not you're not describing a landscape. that sounds pretty good. >> well i always look at worst case. and then i'd like to beat expectations, but i don't think it's look, i've been saying in retail that it's all about the product. it's all about integrity of pricing, good value. and i think today it's discount. you know, tj maxx has real prices every day. friend of mine i told him i was coming on. they said that old navy, you know, which i started over 25 years ago, was the first day in, day out value fashion company,

no sales. >> you knew exactly what you were getting when you walked in the door, the price. >> and it was style and fashion, which is always part of it, but style that does not go out of fashion. i'm wearing a vintage outfit. everything i wear is old. maybe because i'm old, but you know. >> you you do vintage. >> well, no. >> no logos. >> your your company. now, which you describe as aspirational. yeah. well is doing pretty well. >> it's doing. i'm very happy to say it's, it's having its moment now. part of it is style taste quality. i've said the same thing. always style, taste, quality, value and much important. most importantly, it's clothes that never go out of style. so i, i amortize whatever i buy and you know, i'm wearing 40 year old shoes. this vest from belstaff, we did a lot of business at j.crew. it's very

old. my shirt 2014. >> since you say you know, how's the higher end? how's the higher end? >> well, what i hear and, you know, i, i hear it's very difficult. there's price issues out there which, you know, some of the prices are whatever. and there's big expansion. and the people i think personal opinion is not such a big deal to wear designer thing anymore. logos. you know, the vintage business has never been better. the dupes, which i just learned about, you know, the counterfeits i've here never done better. walmart had the working bag. you know, the hermes birkin. so i think we're in a good place now. they trust us. we've come into our own bit and we have nice clothes. and you don't throw them away. >> when you when you talk about

tariffs. if you were running the day to day of a company that you like, you used to a gap crew or whatever, how would you manage the current environment? i mean, the ceos have been through this once before, right? it's not their first rodeo. >> years ago. >> trump 1.0. now we're trump 2.0 right. we they are presumably expected that you were going to have tariffs because he talked about it all the time on the campaign. none of this should be a shock. of course. so how would you deal with it. >> well what we did first trump was we started moving a lot of our factories out of china. we didn't have a time to do that here, but we're looking at sourcing worldwide and we haven't been very good at that at all. and so but what do we do? we're going to everyone's going to pay more money for their clothes. you know tariffs i don't know if it's 10% or okay i'm not worried because we do

have a aspirational but a lot of income middle income too. but you know our prices are very fair now because i don't i don't want to be greedy of a value, value value. >> but if you if you were, let's say you're sitting in the corner office at a company like gap, it sounds like you have no choice. you're saying but to pass the costs on to the consumer? >> well, yeah. >> at what point do you make the decision, i'm going to eat the cost or i'm going to pass it on. >> to really good question. very hard to answer. in our case, we are known to give very good value for the quality. so we ride on that reputation. but we're going to be very careful. the thing is, you don't want to overprice and lose day in and day out business, but the reality is you can wait for sales in many companies. some of my old jobs, they, you know, sale here or sale there or sale everywhere and new goods. so if

you're smart shopper, you just go online and look for what you're going to buy and then buy it online. >> well, everybody likes a good sale. yeah. no matter what part of the income scale you're at, part of the tariff issue obviously is trying to bring more jobs back and production back to the us. what's your take on the idea of just onshoring more manufacturing, making more of the clothes here rather than in vietnam and china? >> i have an opinion. i don't think i want to say it on tv because. >> well, you're always irreverent. >> that's no. >> no, that's why the microphone's on you. >> okay, well, there's a reasons that things are made overseas and it's a different environment. the needle and all my friends and people in the business, a lot of the stuff we do all our jeans in la, and they have a great jeans, you know, kind of. >> you make all of your jeans in

la. >> all we. yeah. all of our jeans this one la. we have a great factory there and they know how to make a great jean. >> well you pay more obviously to do that here don't you. >> but it's worth it because it's la made. or you can go to japan and make jeans. those are the two prestigious places. but i think there are a lot of experts around the world. i met with a guy today who manufactures. he lives in belgium. he makes goods everywhere and he has a great business with great pricing and great quality. but, you know, it's like anything else. i don't know if the factories here are there with the same competitiveness as asia. and i understand we want to get our fair share. but i think time will tell. i don't know if there's a negotiation involved with, you know, with mexico or canada. and, you know, we just

deal with it. and i think at the end of the day, >> the. >> tell you quality, style and not obsolescence and clothing wins. >> never obsolete, always stylish. >> okay. >> thank you so much. thank you. stay there for just one moment. that's mickey drexler. everybody up next, we're tracking the biggest movers as we head into the close. steve kovach is standing by with that. hey, steve. hey, scott. we got one gaming company soaring. double digits after reporting their. >> q4 results. we'll give. >> you that. >> name after. >> the break. >> the bond report is brought to you by pimco, a global leader in active fixed income.

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investors are keying in on unity vector, which is a new. ai advertising platform to take. >> on rival applovin. and for more on those results, ceo matthew. >> bromberg joins. >> overtime for an. >> exclusive interview. >> scott. >> all right. steve. all right. thanks a lot. steve kovach. still ahead, a rundown of what to watch for when block reports. to watch for when block reports. 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... client: yes, and let them manage some investments for me too. let's move on, shall we? no can do. client: i'll get out here. where are you going?? schwab. schwab! schwab. a modern approach to wealth management.

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>> wall street expecting 9%. >> revenue growth. >> to $6.3 billion. >> the stock. is up. >> 26% over the past year, but has. >> pulled. >> back 4% year to date. >> now, peers. >> paypal and. >> affirm have already. >> reported both. >> beat on earnings. >> investors will be. >> watching to. >> see whether. >> blocks rival. >> cash app business, a major profit. >> driver. >> shows similar. >> expansion and if gross payment volume picks up. now, bank of america calls block its top payments pick for 2025. >> also noting that. >> it could be added to. >> the s&p. 500 and. >> that underweight. >> positions from large investors may help drive future gains. >> now. >> another key focus. >> growth in. >> square's payment volumes. >> especially as the. >> stronger macro backdrop. supports a re-acceleration for. u.s. small. >> and mid-sized businesses. now we're seeing shares. >> of block. >> slightly down. >> with its. >> recently changed ticker. >> x, y, z. >> ahead of. >> earnings we'll keep you keep an. >> eye on it for you scott. >> all right. thanks so much for that, mackenzie. all right contessa, how about booking? >> more important, scott, than what happened in the fourth quarter is what's happening right now and what's coming down the pike. booking is juggling

some significant headwinds. analysts have noted moderation in travel demand in january. we know there are foreign currency challenges, especially in focus for booking. with its broad book of international business. and then there's the rising alarm at the possibility that ai agents could supplant companies like priceline or kayak.com. still, you've got shares up nearly 40% over the last 12 months, and the street's expecting bookings to report revenue of more than $5.2 billion with eps of 36.3. right now, the shares are off by 1.7%. scott. >> all right, contessa, thank you so much. that's contessa brewer with mike santoli. here we managed to dig ourselves off the bottom okay today. >> yeah. bent a little bit. did not break each of the last eight trading days. so basically since the beginning of last week there has been an afternoon rally, meaning we've closed a good deal higher than a mid day or a morning low. it shows today that reflex is still in the market. it's still going to kind of try that until proven otherwise. you're going to feel it in terms

of looking at the one day damage and things like jp morgan and goldman sachs and the leading crowded trades. >> like palantir. >> large cap banks. and then you have the high. >> fliers, like. >> as i said earlier, the best case scenario would be that the frothy parts of the market just calmed down a fair bit. the overstretched mega-caps like walmart and costco and jp morgan can just sort of relax, lower, and the rest of the market takes up the slack. maybe it's a lot to ask. i've been talking for over a week about how we're going to get through these expirations. the vix products yesterday, the index options tomorrow. and after that historically you might be able to see the market get a little twitchier and have wider bands. right now though it's been very disciplined around kind of retesting the old highs in the s&p which are right here 6118. >> as we you know, tomorrow we'll start looking really ahead to nvidia next week and we'll see you. that stock was was green too. all right. so we'll go off today off of the bottom. as you see we'll still be red. >> though across the board.

>> the dow down a little more than 1%. we do have those important earnings coming up in ot which is where i'll send it over organization. >> that's the. >> end of regulation. nyse partnership day. >> ringing the. >> closing bell at the new york. >> stock exchange. alpha motus holdings doing the honors. at the nasdaq. >> stocks sliding from record highs today. >> taking a breather. >> the dow seeing. >> the. >> most pain. >> it was. dragged by a. >> big drop. >> for. >> walmart and a pullback for the banks. worst day in more than a month. momentum names like palantir and robinhood are getting hit pretty hard today as well. >> that's the. >> scorecard on wall street. the action is just getting started. >> welcome to. >> closing bell overtime i'm. morgan brennan with jon fortt. >> and we have. >> got a. >> big show coming your way including earnings results from block booking holdings, dropbox, live nation and rivian, alo