meet unmatched service from the heart. with one chef for every ten guests, indulge in gourmet dining on an ultra-premium small ship. scenic days, endless memories. call now for amazing savings. book now at oceaniacruises.com >> welcome to power lunch. i'm kelly evans and we're seeing a big midday reversal here in the markets. we'll talk about why speculate. see if we can figure out which of the recent events might have been contributing. we were trying to break a four day losing stretch for the s&p and the nasdaq. but we're not looking that way right now. we're at pretty much session lows with the dow down 288 points two thirds of a percent. the s&p down 18 points a third of a percent. right now even the nasdaq has tipped lower. what's interesting about that nvidia was one of the best stocks in

the market earlier, and it's still up about 2% ahead of its earnings after the bell. we'll circle back to that. and let's look at a few names which have been caught up in this momentum sell off as they were looking to maybe bring that to an end. but applovin one of the hottest stocks last year, up 700%. down 13% now today and 35% since the start of last week, comes as a couple of short sellers released reports on the company. on the other hand, we have axon enterprise, the security company which makes the taser. it lost 30% of its value in the five trading days up until now. but the stock rallying back up 16% on better than expected results. also keep an eye on philip morris. it is quietly rising to an all time high, dating back to its spin off from altria back in 2008. barclays noting this morning we are in the early innings of a generational shift towards nicotine investing. more on that trend later on. let's start, though, with the first cabinet meeting of the second trump administration, with a special appearance by elon musk warning america will go bankrupt without spending cuts. eamon

javers has more from the white house. and eamon, not sure if it was some of the uncertainty around tariffs that's contributing to the sell off this afternoon, but plenty of headlines. >> yeah there was a lot of talk about tariffs in this cabinet meeting kelly. president trump says he's made up his mind for tariffs on the european union, which he said he'll be announcing soon and which will generally be 25%. that seems to be in line with what he was talking about in terms of reciprocal tariffs with other countries around the world. we'll see if we can get some more clarity from the white house on that. he was also sharply critical of europeans for not accepting, as he said, american cars and farm products. and he expressed hostility to the european union itself. >> european union has been it was formed in order to screw the united states. i mean, look, let's be honest. the european union was formed in order to screw the united states. that's the purpose of it. and they've done a good job of it. but now i'm president. >> so part of what the president might be upset about is that the eu currently places a 10% tariff on american cars sold into

europe. average european tariffs on american agricultural products vary. they've been as high as 25% on some products in recent years, although those numbers move around negotiation and negotiation. but speaking of trade, the senate voted 56 to 43 to confirm jameson grier as the next u.s. trade representative. remember, grier was the chief of staff to robert lighthizer in the office of the ustr in the last trump administration. kelly. so some more trump trade personnel coming on board here, even as this talk of tariffs is swirling around the white house. >> it seems the fact that he said, you know, tariffs day after april fools that you know i look at i think the market is seizing on that to some extent. >> yeah. so there's a couple of things going on. there's two different deadlines here. and that's part of the confusion. one deadline is march 4th. that's for the canada and mexico tariffs. remember he announced those tariffs put them on pause for 30 days. that 30 day period comes up on march 4th. the second set of deadlines is this april 1st slash april 2nd deadline, which he's been

talking about for reciprocal tariffs. that's for the entire rest of planet earth. so that negotiation is ongoing. every single country is obviously calling the white house and asking to be exempted from those tariffs or working on some kind of offering that they might give to get themselves out of it. all of that is a is a very much moving target. but you've got these two different sets of deadlines which are sort of conflated in that cabinet meeting, one for canada and mexico on march the 4th and the other for the rest of the world. reciprocal tariffs, which is april 2nd. >> but do you find it? am i am i, you know, reporting it correctly, eamon, that he said the tariffs on imports to mexico and canada would take effect on april 2nd. >> now he did say that i'm not. we'll have to see if that's a slip of the tongue. right. if he was conflating in his own mind those two different deadlines which are happening. that's what we know of those two deadlines. we'll get some more clarity from the white house on whether that was an official policy extension by the president or whether that was just a conflation, you know, sort of apples and oranges and bananas as you're talking all in

one sentence, right? i mean, i think some of this is confusing, even if you're the guy setting all these deadlines, because remember, he's proposed these tariffs and that put them on pause in different sets of tariffs for different sets of time. so it gets confusing indeed. >> and i think the market just heard tariffs going forward. and the details they'll wait for. but they're now going to maybe price that in more. appreciate it for now eamon. thanks eamon javers at the white house. now meantime investors are awaiting the most anticipated report of the whole earnings season just a couple hours from now. nvidia of course whose shares are higher after yesterday's declines. they're still up about 2.25%. the street expecting another beat and raise potentially a positive spin on that deep sea breakthrough breakthrough and all of that. for more, we have christina partsinevelos here on set with me along with d.a. davidson, gil luria. welcome to you both. christina. there's, you know, revenues. there's earnings. there's gross margins to look at. there's going to be his comments with jon fortt later as well. i mean, and we just heard from andy jassy last hour who basically reiterated that they have huge demand for nvidia chips. and he said, basically, if we had more, we

could do more. so what. >> are you telling me? you're telling me that the fundamental story is intact. >> for nvidia. >> but the problem is. >> you. >> look at the you look at the stock and it people have been on the sidelines for the past eight months. you raised gross margins are coming down. we know that management already warned us restrictions are a big overhang for guidance. and i think that's why you've seen especially buy side estimates. they've come down for the first time in two years to fall in line with consensus. so the big number would be guidance at $42 billion. that's what we're expecting. but you raised gross margins u.s. exports the air pocket going from the old iteration of the hopper. chip or architect to the new stuff, the blackwell and then the blackwell ultra and then eventually the rubin. so they're always going to have this transition period, too. but overall demand is still intact. i just think that there's questions more about capex monetization. show me the money. like, you know, you can't keep spending. and when do we hit this peak? and i think gil probably knows that. >> you know, inexhaustible or not. what do you think, gil? i mean, the market now is kind of saying maybe they feel better

about this than they did a day ago. >> well, i think christina is spot on in her analysis. and what how i would say it is what they're going to report this quarter is going to be fantastic. the fourth quarter spend from the hyperscalers and the other large customers for nvidia was a big jump up. and so this quarter is great and likely that the first quarter of the fiscal year, they're already in the books in terms of what the hyperscalers and other large customers are going to do. it's the other things christina talked about that investors are concerned about what kind of sanctions are going to have on china. what did jensen wan promise president trump when he visited the white house? how is blackwell going to translate to a gross margins over the next few quarters? and then finally, what christina brought up, which is really the biggest overhang, is when are we going to see enough usage of ai to justify

this massive build out that we've had? and if we don't see it this year, are we really going to build out as much next year? right. that's the biggest overhang in some of these questions are not questions that that the company is going to answer today on the call. >> well, if they can't answer some of them, you know we talk about how consumers are using it. the enterprise whether these gill maybe that's one. one quick follow up for you. what do you hear from the community. can you get to the frontier now with less computer. no. >> well in terms of the training, the pre-training, what we've learned is that you can't really scale to the moon. there's diminishing returns for the clusters. i think initially a year ago, we probably believed that we're going to train on 100,000 gpus and then a million gpus and then 10 million gpus, and we're going to get correspondingly better models. that is very clear that that's not the case, that the advancements in these models will be more incremental and will have little to do with the

size of the cluster they're being trained on. so a big source of the excitement about the ramp of data centers has gone away. and then when you start talking about the models getting smaller and smaller and more efficient, that means that demand is going to have to rise a lot faster to require more compute. well, we interestingly, a very important point that may have gotten missed in the deep sea conversations is when the models get small enough, they're not even going to be hosted in a data center. they're going to be hosted on a device, on an apple device, on a pc where there's not any nvidia chips. so these are the type of things we're thinking about in terms of going, especially going into next year and the year after that. >> and it's why we're watching stocks, christina lake, vertiv and those who are all part of this like gold rush. right. so it's going to be for that trade important maybe what nvidia says tonight or or maybe not. i mean they might be unique in terms of where they sit. >> well to gill's point. >> then if. >> there's a peak for hardware, nvidia is going to say, hey,

we're still focusing on dgx cloud. we have our cloud offerings, our software offerings. the run rate is going to increase for software. they're going to bring up robots, humanoids, all of these other avenues that may not affect the near-term, but that's going to be their argument. in terms of just your question about compute, think of grok three, right? elon musk went from they were originally going to use 100,000 gpus, and then they doubled it to 200,000. yeah. so that was a big surprise when it first came out. so the necessary compute the chips, the hardware is still needed in the short term. but i do believe it's going to be commoditized. and i say this because you you pay for your your monthly subscription. right. >> we it. goes back and forth. but i will say this, i guess i. >> pay. >> for grok because of maybe paying for twitter, but that model with the 200,000, that model is definitely better than some of the others that are out. >> not by that much. right. and so the reason why i bring it up is that they're commoditized. but the under the underlying foundation of all of them is still invidia. and there's been no other comparison. you can say, oh, the asic chips or, you know, these specifically programed chips would fall into

place amd so far behind gowdy three from intel so far behind. but nvidia still has that stronghold as well as cuda, which would be the programable language for developers. >> which is now, people say kind of becoming more and more ingrained. gil, quickly, i mean, not that you cover vertiv, but what would you say to investors who are wondering if this is a chance to look at look in? broadcom is down almost 20% from its highs. >> we will continue to build data centers. let's not forget we were growing data center build out even before ai because we need them for cloud storage. so we will always be building data centers for storage. and in fact, the overall build out that we've had over the last couple of years for ai will not go to waste, even if there aren't great applications for ai, because the hyperscalers will turn around and use those for storage. so for the other data center providers, it may be a little bit less of a concern if you're making liquid cooling. there's a company called modine that makes liquid cooling. blackwell runs hot. if you don't cool it enough, it'll melt the

wires. so if you're making liquid cooling for data centers, that's going to ramp up over the next few years, regardless of how nvidia does. >> and on that note, just circling back to amazon, we just heard from the ceo. he seemed to indicate that demand for nvidia and for all of this is still strong. they're rolling out their own new souped up alexa ai. what do you think about it? >> well, amazon just guided again. they reported a very high level of capex for the fourth quarter. and then they said, we're going to keep this level for the next four quarters. so year over year that's going to be up. but they're actually going to moderate spend going forward. they're not going to raise capex at the same rate. microsoft made a similar statement. their fourth quarter capex was very high, but it's going to remain the same for the first and the second quarter. so this rate of build out is very fast. they're expanding very quickly, but the rate of growth should moderate going forward as they support these very important applications they're introducing including alexa plus. >> all right. you still got a

280 price target. so significant upside ahead potentially we'll see what the next few hours bring gill thanks christina. thanks as well. gil luria and our christina partsinevelos. and after those earnings don't miss a live cnbc special report tonight john be speaking with nvidia ceo jensen huang following their earnings. and that begins at 7 p.m. eastern. lots more to come on power lunch. but first crypto declines are continuing as bitcoin falls below 85,000 today. that massive ether hack, along with theft claims in argentina sending chills throughout the industry. our dreams of a us bitcoin reserve just that. it's next. >> to. >> with allegra. >> i hope. >> you can stop being sneezy without feeling sleepy. get 0% brain interference for fast non-drowsy allergy relief with .

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optimism throughout the industry. and bitcoin prices are below 85,000 today. let's bring in mackenzie sigalos with more. are we? there's a lot going on here, mackenzie. but this this ethereum issue is being blamed for some of the weakness we saw in crypto earlier in the week. >> yeah, it certainly is. >> and this past week has been a stark reminder that no amount of pro crypto policy, even from a us president, can protect the industry from perhaps its biggest weakness security flaws in the technology itself. now, the largest crypto hack in history just hit dubai based exchange bybit $1.5 billion stolen. north korea's lazarus group is the prime suspect, using a sophisticated laundering scheme to move those funds. now, bybit is offering bounties to anyone who can help recover the stolen assets. they're literally crowdsourcing a digital manhunt, paying millions to individuals and companies that can track and freeze the stolen tokens. and this isn't the only turmoil in crypto. you've got world leaders who are now pushing meme coins. president trump, first lady melania and argentina's president javier millet have all

been tied to viral token launches. trump's meme coin skyrocketed to a $14.5 billion market cap in a day. now it's crashed over 80%. melania's token is down 93% from its peak. and then in argentina, the president promoted a token called libra, claiming that it would help the economy. then it collapsed, wiping out $4.6 billion in value. he's now facing a fraud investigation and calls for impeachment. and kelly. markets are feeling the fallout in the last week. you've got bitcoin and ethereum both down 10%. and there's been over $2 billion in bitcoin etf outflows. half of that just yesterday. >> are people in the crypto space connecting that to some of these issues you mentioned, like what happened with ethereum or some of these other things, or does it just seem to be a risk off mood? i think it's a. >> combination of both. so the hack specifically targeted ether tokens, and then you've got the nasdaq 100 that's down in bitcoin. still very much trades like a high risk tech stock. >> right. exactly. and we're seeing that today you know to the upside and to the down

mackenzie. thanks mackenzie sigalos. let's stick with crypto and break down what these recent events might mean. excuse me for the industry at large. joining us now is investment firm crucible capital. meltem demirors and cybersecurity firm trustedsec. david kennedy. welcome to you both. meltem, i'll start with you. how would you explain what happened to ether? >> yeah. so look, i think overall if we look at what's happened with bitcoin, bitcoin is 70% of crypto's market cap. so it is by and far the largest asset just in terms of mindshare in terms of liquidity. what we saw bitcoin teleported from 70 to 100 k around trump's election inauguration. we never really got prices in the 75 to 90 k range. we're seeing prices fall off and we're retesting that range. the etf inflows and michael saylor's strategy buying bitcoin propped up to bid for bitcoin throughout q4. then we saw some retail fervor, hedge funds buying as we saw from 13 f filings a few weeks ago. so i think it's really just there was

a massive bid for bitcoin around expectations on a rally. that rally happened. now we're seeing a retesting of this 85 to 90 k range. and again there's a lot of uncertainty. there's a lot of risk. markets don't like uncertainty. >> although david there are some blaming you know bad cold storage practices for leaving this ether vulnerable to this hack. yeah. >> what's interesting about this hack specifically is it it very much mirrors a breach that we know very well, solarwinds a few years ago. >> from. russian hackers. >> where. >> they were able to. >> get access through social engineering methods very similar to what happened here with north korea and the lazarus group. get access to a developer's computer. >> and then. >> use that to upload code to the safe wallet infrastructure that then targeted. the cold, cold wallet infrastructure, which is supposed to be, you know, heavily more secure. it's considered offline, you know, much harder to hack into. and they did a lot of research, a lot of. understanding around the exchanges, the infrastructure, how these types. >> of. >> you know, public and private key cryptography components work

and were able to really abuse that, showing that, you know, these are a major front of attack for these groups. and, you know, one of the largest, the largest heists that we've seen in cryptocurrency attacks ever. >> both of you seem to agree this is a north korea problem as much as anything. so, david, what do you do? like does a typical holder of things like ethereum bitcoin, do they need to worry about ever being targeted? >> well i think you're seeing the attacks on cryptocurrencies. you know continue to elevate. the lazarus group has been around for you know 15 years. and their focus has always been on cryptocurrency. and they're getting more and more sophisticated with what they're doing. they're spending longer understanding, you know, the technology, the code behind it, how they can abuse that. if you notice this, this attack went completely seamless. they waited for a trigger event to happen through bybit on that cold wallet and then, you know, farmed it out to over 6000 different, you know, addresses to try to mask and hide it, to make it very difficult to actually go and recover it, you know, very methodical, very repeatable, something that they're going to look at doing for other cryptocurrency exchanges as well, and targeting other companies that have, you know, security built into these

products and everything else. so it just goes to show you that, you know, it's a very rocky situation for cryptocurrency right now, and specifically this heist that was able to, you know, retrieve over $1 billion. >> meltem, would bitcoin ever be vulnerable to a similar issue, sort of speaking of the moving it to cold storage and that kind of thing where the north koreans kind of pounced? and do you think that might make corporate america or even officials considering a strategic bitcoin reserve, think twice. >> i think these are two. >> separate issues, right? i think when it comes to investing in bitcoin so far, bitcoin that has been secured by cold storage has stayed secure. again, there are these new vulnerabilities that are emerging all the time. i want to reiterate this is a north korea issue. it will continue to be a north korea issue. the trump administration is smart on crypto. they view this not as a crypto issue in north korea issue. there is always private key risk in crypto. it's just like any other sort of asset that trades on chain. that settles with finality right the moment you move it, it's going to be a honeypot. i think what we're

seeing in the industry that does give me a lot of encouragement is industry actors are working together in 2003, in 2023, in 2022, an incident like this probably would have been the end. and by bit of it, in this instance, all of the crypto companies came together, security providers came together. people are tracking, doing forensic analytics, freezing funds. so there is coordination amongst crypto players, governments and other actors in the space to try to stop these funds from moving to recover as much as they can. so again, this is something that is just an inevitability of interacting with this new type of technology and this asset that settles with finality. it is great properties. it has downsides, but in my view, this doesn't in any way mitigate or lessen the investment case for bitcoin as an asset that's worth holding in a balanced portfolio. >> david, do you think bitcoin is more secure? >> well, i think, you know, all of the technologies that are being used for cryptocurrency are designed to be secure. right. and when you start implementing the human element of things, where they can get access to developers that are

helping secure that infrastructure, i think that's where you have major risk and exposure, and bitcoin is not impervious to that in any way, shape or form. you know, i agree with the sense that, you know, there's a lot of investment, a lot of umph behind cryptocurrency right now. and i think that will continue to go. but it does bring into a pretty good light that there is a lot of exposure with this as well that are being heavily targeted by north koreans, but also other actors and ransomware groups and things of that effect, leveraging it as some of their main methods for payments. it's continues to be a problem all across the board, you know, supporting ransomware groups for payments and our own infrastructure in the united states when we receive attacks, as well as these nation states that are leveraging it for big heists like we see today. >> yeah. incredibly sophisticated. appreciate the detail there and kind of discussing what happened. thank you both today. appreciate it. meltem demirors crucible david kennedy with trustedsec after the break. two tech heavyweights facing off in a war of words. we facing off in a war of words. we have those details next. 7 million us businesses rely on tiktok to compete. within a week of posting, i had over $25,000 in sales. i don't have a million dollars

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of its rivals. microsoft is now rubbing some salt in the wound as well. seema mody here with the details on this growing feud we're seeing. hi seema. >> really fascinating to watch. kelly. salesforce ceo marc benioff is feuding with microsoft as it pushes to make its aging force the dominant ai product over copilot. benioff recently calling microsoft's copilot a repackaged chatgpt and clippy 2.0. ceo satya nadella has been less willing to outright attack salesforce agent forrest, but did suggest on a recent podcast that software companies relying on agents will lose over time. now, microsoft's chief communications officer taking it a step further, writing on linkedin that benioff has, quote, no idea what he's talking about. when salesforce reports earnings tonight. kelly, investors really want clarity on demand and the pace at which a.i. agents are growing. the latest channel checks from citi suggest heavy discounting to drive adoption. and, of course, whether the outspoken leader benioff will use tonight's

earnings call to bash its competitor again. >> so i think the larger backdrop here is sort of it's less about i mean, look, it's always fun to watch these two kind of have it. but it's an open question right now. i mean, a lot of investors on one side, you have people who say there's no way they're going to like outright replace these software names. software names are going to integrate ai to be more sticky with the customer than ever. and then there's others who just say, no, it's going to reinvent the way we do business and we'll see. >> listen, the stakes are high, as you just highlighted. and i think the war of words between these two companies really highlights how how competitive the artificial intelligence landscape is becoming. but also keep in mind that these two companies have history. they've competed when it comes to salesforce. slack, which competes with microsoft's teams. even salesforce's core customer relationship management software sort of competes with microsoft's 365 dynamics. so this is something it's sort of seen as the next era, right on

ai. and while copilot is different than salesforce asian forest, they're still have the similar objective, which is to use this cutting edge technology to drive adoption and increase productivity. we'll see who can win in the race. and tonight, what we hear from benioff on how how receptive customers have been. that will be key to understanding what the future of this company's ai product really is. >> yeah, this to me, this is what makes markets fun, is figuring out who's going to figure it out. seema thanks. appreciate it. seema mody. and don't miss jim cramer's exclusive sit down with marc benioff tonight after earnings. you can catch that at on mad money at 6 p.m. eastern. still to come our next guest is the most cautious. he's been on tech in over a decade. so he like many lately well, maybe not this name, but he is betting on this health care name. the reveal is health care name. the reveal is next. - [narrator] we just signed the lease on our third shop. my assistant went to customink.com to get new uniforms with all the locations. he found great products, uploaded new art, and had boxes sent to all the shops.

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the usda. the bird flu outbreak has killed 166 million chickens since 2022. california governor gavin newsom is ordering the state parole board to look into the public safety risk of freeing the menendez brothers. that's according to a letter sent to the defense lawyer today. if parole were granted, it would be a step toward clemency for eric and lyle, who are currently serving life sentences for the 1989 murder of their parents. and new york city police say actress michelle trachtenberg was found dead in her manhattan apartment earlier today. police say they do not suspect foul play. trachtenberg is best known for her roles in buffy the vampire slayer, gossip girl and the kids film harriet the spy. she was just 39 years old. very sad. >> so sad when i saw that. leslie, i appreciate it. awful. so tragic. leslie. picker. markets are off the lows. we hit earlier this hour when the dow was down about 300. we've actually come back significantly. the nasdaq is

back into positive territory. this uncertainty around tariffs we heard from the cabinet meeting from the president could be one cause of the volatility this afternoon. here to discuss that and more. jason ware is cio and head of research at albion financial. jason you hate tech stocks. welcome. >> definitely not. do not hate tech stocks. but i will say after over a decade of being quite. >> overweight. >> i am much more sensible about what's possible in the coming years. i don't know where these stocks are going to trade in the next few months, but as we look out over the next five and ten years, you know, there's just no way they can continue to compound at the rate that they have. it's just simple math. if you look at google and alphabet and microsoft, you know, amazon, etc, they've been growing at over 20% per year. just to give you an example, if apple were to continue to do that over the next ten years, it would go from a $3.6 trillion market cap to almost a $30 trillion market cap. so we still like them. we still own them. great businesses, just a smaller position sizes. >> what if the market caps don't

change? what if it's just, you know, earnings and buybacks. i mean well actually apple is not a great example of that. but look a lot of people look at the valuations and go they're not even that steep. so i take your point about their sheer size though. >> yeah. and the valuations aren't steep. i mean mag seven is trading at 39 times when you include tesla. when you take tesla out which has 100 pe, it goes to about 29 times. so sub 30 pe for companies that are growing high teens, you know, a peg of about one and a half is not terrible. but again, i think we just need to be realistic about what's possible. so we have we've rightsized those positions, but we still own them and we still think you should own them. these are the best management teams, best businesses, wide moats, good balance sheets, no reason to sell them. but just be more realistic about, you know, the forward path. >> i didn't ever think we would see trillion dollar companies consistently. i just figured, you know, competition takes over at some point, you know, and yet it's the new normal. i mean, we had a guest last hour who was bullish on amazon, say they're going to do a trillion in revenues by 2020. >> yeah. and we agree. you know, they're going to do 700 billion this year. that is something

that we absolutely see as well. and so these companies they can double. i mean amazon can go to a $4 trillion market cap. you know apple and nvidia you know they can be six seven 8 trillion. i don't have any problem with that kind of thinking. in fact that's our base case expectation. but again as we think about the ability to, you know, be three, five, ten baggers, that's just where we get a little bit more cautious. and we've been a little bit more realistic in how we want to size based on that. and there are lots of other opportunities in the marketplace where we can spread out that capital. >> okay. but unitedhealth, don't tell me you think that's a three, four or a five bagger. >> i guess it depends on the time frame, right? but i will say it's a cheap stock. this is trading at 15 times forward earnings. now this was a quiet compounder for so long until about three months ago now it's been taking on water. there's no question. but the earnings profile, the earnings power of the company we think is not changed. what has changed is the stock has rerated lower. it's trading at a 25% discount to its own historical pe. it's trading at a discount to the s&p by almost ten turns. and anytime

united healthcare gets this oversold, unless there's a fundamental impairment on the earnings, we don't think there is. it's a stock to be bought, not sold. >> what do you think is going on in the market more broadly right now, this churn that we're seeing, the collapse of the momentum names. you know the and weirdly it's accompanying a collapse in interest rates. you know you could easily make a story. oh you know rates are back up to five and the momentum is coming back. no it's the opposite. you know it's all the it's all kind of tilting underwater. >> yeah. it's a keen observation kelly. and the way that we think about it is, is that the drop in the ten year yield is a reflection of kind of this growth scare that seems to be bubbling up, almost a vibe shift, if you will, in the markets where we went from tax cuts and deregulation and pro-business and animal spirits to this period where people are now pausing and rethinking that and wondering if the offsets of tariffs and doge being perhaps heavy handed in terms of cuts and, and job growth and those kind of things at the federal level, whether that might upset the apple cart, our view is that that's not going to be the case that earnings will come through this year. we're quite bullish

on corporate earnings. we think the economy is okay. inflation is benign. yes it's above fed target. it's sticky. but we think the cocktail for stock prices to continue looks pretty good despite the volatility recently. >> it's not just health care you like thermo. that's another one. but also and this might catch some people by surprise based on your earlier remarks. you like nvidia. you like salesforce. you like uber i mean this that you like broadcom. >> see we still like tech kelly still big still big fans of tech. but you just have to be i think a little more diversified. and you have to pick your spots salesforce. you guys were just talking about it a moment ago. you know as i look at this this is a sub 30 pe for a company that's going to continue to compound earnings at around 15%. they're the number one leader in crm and cloud in that space. and they have a guy which we're very bullish on over the next five and ten years. you know broadcom you're not sure whether you want semis or software. it's a great play because 40% of their business is in high value software. meanwhile they're doing custom chips for ai which we think is kind of the next wave as we get more to infer inference. and then of course

nvidia. we're underweight in nvidia, but we still think it's one you have to own gpus still huge demand. we think blackwell is going to be big this year moving to rubin. and then of course there's a there's physical ai coming. so still a stock we want to have in the portfolio just on a smaller size. >> mystery man jason, thanks so much for joining us. appreciate it. as everyone thinks of reconsidering their portfolio, jason ware of albion financial. let's get to rick santelli. speaking of falling bond yields and some of these curve moves, rick, that people aren't feeling too happy about. >> well. >> you know, i think you. >> have to start at the source. >> tariff talk up. >> stocks down. >> yields down. >> listen what's going on in treasuries. it's not the proactive part of this trade. the proactive. >> part of. >> this trade is uncertainty and how it's affecting stocks. and once again, especially on. >> a day where. >> green turns to red. and yes, maybe it's getting less red or nasdaq is going up. but that. >> type of. >> volatility in the face of the way equities have been trading in the face of what the administration has been putting forth in the news. with all that uncertainty. well, look at the s&p, the dow and tens pretty

much it explains everything right there, especially the notion that as stocks go up on the right side you see there. look at yields there. not because it needs to be a stock day where you start strong, you get stronger. and you need a couple of days of that to take this attention away from capital preservation. turning into a savings account. trade in treasuries, especially the long end. now, you mentioned the curves. if you look at three months to ten, it's inverting. it's the most inverted actually of minus four. so to close here since the second week in december. but what i want you to really notice is how that chart looks pretty much exactly like a ten year chart. and it should because that's really the force going on here. and if you look at twos and tens pretty much the same chart as well. the flattest at just under 18 basis points since the 18th of december. and i would look for more of this to continue because it just one of those trades where it's a knee

jerk reaction. you now have just conditioned investors to more. they see volatility in the negative side in equities. the more they're going to camp out in long dated treasuries. and what's more, if you look at what's going on with the auctions this week they've been spectacular. yesterday was an a. today was an a. why? because investors are seriously wanting to own treasuries. back to you. >> what a thought rick. thank you very much rick santelli. still ahead going nuclear. why the huge need for more electricity is leading to an energy renaissance of sorts. and as we head to break, take a quick look at shares of solvent. this was a spin off of three reports hitting the market that nelson peltz is pushing the company to further simplify its business. that's good for a half percent pop in solve. we're back after this. >> the bond report is brought to you by pimco, a global leader in active fixed income.

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>> go. to. woo. >> overtime is about understanding what just happened in the markets that day and preparing for tomorrow. i'm looking to talk to all investors, sophisticated investors, beginning investors. i'm always learning. >> closing bell over time for eastern. cnbc. >> welcome back. demand for electricity is soaring. it's literally growing by the second. and as folks look to cleaner sources, nuclear is seeing a major rebirth. but building

large scale reactors is costly. it's complicated. it can take years, if not decades. so what if it didn't have to? diana olick is looking at that in our continuing series on climate start ups. hi, diana. >> hey, kelly. yeah. you know, we've talked a bit about small modular reactors with investments from big companies like amazon. but building these. >> and moving them on site is still expensive and can take many years. well, some are now working to eliminate those hurdles by putting the reactors in the water. at this shipyard in the uk. a new method of building nuclear power plants is being developed. a startup, blue energy, is building modular power plants for modular reactors using the existing cranes, equipment and workforce of the shipyard. ceo jake hurwitz says it will dramatically reduce cost and build time. >> everything is prefabricated in centralized shipyards and then floated to operating

locations close to the water. we're taking a light water small modular reactor and putting it inside of an excel monopile. the same excel monopiles that had been de-risked and commoditized by the offshore wind industry. >> the reactor is fully isolated from the rest of the onshore power plant, putting it in the water, gerowitz says, adds an important barrier. >> the water introduces an infinite source of cooling and aircraft impact protection, so it's much more protected from extraneous events, such as aircraft impact ship collisions. other sorts of extreme events like earthquakes, that you have to consider when you're engineering a nuclear power plant. >> others, like seaborg, core power and last energy are working on similar systems. blue energy is working with a data center in texas to provide nuclear energy by 2031. >> with success. >> what blue. >> energy does is. >> it unlocks. >> an asset class for. >> small modular. >> nuclear reactor.

>> deployment. and that. >> asset class is going to have enormous top line growth heading into the 2030s and beyond. >> in addition to engine ventures, blue energy is backed by at one ventures, propeller ventures, tamarack global, angular ventures, and starlight ventures. total funding so far $51 million. while all of this sounds new, it's actually an old idea from the 1970s. that's when westinghouse and newport news shipbuilding were looking at building nuclear plants at shipyards, particularly in florida, and then floating them up the east coast to new jersey. that that never materialized due to a combination of stagflation and cancellations of nuclear projects. kelly. >> new jersey has a decent amount of nuclear power as it is, i think 40% of the grid or so. it's been a source of stability. diana. thanks. appreciate it. diana olick. let's take a look at shares of broadcom bouncing 4% today as investors are a little optimistic ahead of those nvidia results. well tesla continues to

fall. it's down for a fifth straight day down 4% and below $300 a share for the first time since november. both of these companies, by the way, have also fallen out of the trillion dollar market cap club. up next, we'll look at some more movers of the day. three stock lunch is next. >> crypto watch is sponsored by crypto.com. crypto.com. crypto.com is at&t has a new guarantee. because most things in business are not guaranteed. like a distraction-free work environment. -yeah,i'll circle back around. -get those steps in, kevin. your coworkers keeping things confidential. [phone ringing] oh, she's spilling all the tea. ♪♪ or office etiquette. yeah, that's not guaranteed. i know you can see me! you know what at&t guarantees? connectivity you depend on, the deals you want, and the service you deserve. can i get that logo bigger? or we'll make it right.

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>> something you. >> can sign and make official. get started at trust and will.com and make it count. >> welcome back. let's do some three stock lunge. taking a look at three earnings movers today and how to trade them. matt maley is our trader. he's the chief market strategist at miller tabak. matt good to have you. we're actually going to start with workday which is higher by 6% nearly after beating estimates with 15% year on year revenue growth. what jumps out to you and do you like the stock? well. >> you know something, kelly? it was funny because i was a little worried about this one coming into. >> their earnings because. >> you know, their subscriber growth has been slowing. >> and. >> you know, this issue of the lack of increase of users was something i thought, you know, might really hit the stock even further. but the great news is

that two things. number one, they're increasing their margins. so that is a good obviously a good move. but the other thing i really like is that the where they're looking to broaden out, i mean they get 75% of their sales domestically. but they're looking to not only brought those out here in the us with small, small to midsize companies, but internationally as well. so if they can grow that kind of kind of any kind of earnings growth from overseas, that's going to be very bullish, especially because the stock is kind of fairly valued in the middle of its five year range in terms of price earnings ratio. >> all right. you're looking to load up there. then moving along to instacart. this one is super interesting story today. down more than 11% after disappointing q4 sales and weaker than expected revenue guidance. you know, we were just having this big discussion last hour with the launch of amazon's souped up alexa plus about the merits of thatne relative to doordash and uber for grocery and food delivery. no one mentioned instacart. >> and of course, that's a problem. i mean, the other thing, too, is that i'm worried about is what's going on with

the consumer. i mean, we know it's you know, there's a lot of talk about that. it's just really because of the weather, the weather's been bad the start of the year. but, you know, you remember last summer we were everybody was talking about the credit card debt being so big. well, now that now we're talking about something more, we're talking about credit card delinquency levels really shooting up and other consumer credit delinquencies shooting up like like auto loans. and so, you know, how much are people going to really pay for this kind of grocery and food kind of delivery is a concern for me. and so, you know, it's not i love the concept, but they're talking about making it more affordable. are they going to be able to do that and still maintain their margins. so this is one i want to avoid and not buy on a dip. >> yes. still up 37% over the past year, but some tough competition ahead. let's move along to lowe's which is higher after fourth quarter earnings. beat this morning. and it said its sales slump should end in the year ahead. impressively, this also comes after the shares rallied on home depot's results yesterday. do you stick with lowe's here? >> you know i do like lowe's on

a long term basis. i am a little worried near term. i mean, the reason why i like it, number one is, you know, every time you get a hurricane or something, these stocks tend to do better. and of course, with the rebuilding of la after those horrible fires, that should be helpful. also, you have people that you know they don't want to go into, you know, their 3% mortgage. they don't want to go into a 7% mortgage. so instead of moving into a bigger house or a different house, they're going to do that home improvement. so that's really positive. the one concern i have, of course, is that the housing stocks have been getting beaten up lately. we saw last week the housing starts worse than expected. new home sales worse than expected. and then the same thing with existing home sales today. actually it was the new home sales today. but those stocks are very highly correlated with home depot and lowe's. so it does make me concerned. but longer term i do like the stock. and i think that, you know, you may not want to chase it on this bounce, but it's okay to buy over time. >> yeah. and imagine if the ten year fell another point or so. maybe they're sort of looking

for that as well. matt, thanks so much today. appreciate it. >> thanks, kelly. >> matt maley with miller tabak. and be sure to listen and follow power lunch on any podcast platform that you use. never miss a show. never miss a three stock lunch and we'll be right back after. >> welcome to. >> reinvented with accenture. >> today i'm here with margarita della valle, ceo of vodafone. you were employee 25 in vodafone italy. today you're the ceo of vodafone. what is your strategy and vision for the future? >> we are changing our culture to really focus on our customers. we need to acknowledge. that change is. >> hard. >> but if people understand. >> it's. >> for the right reason, then. >> you get. >> the power of the organization with you. >> 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,

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oh, had a little upgrade have we? ♪♪ okay, so that's how you want to play. ♪♪ >> welcome back. last hour here is going to be interesting as we tip back towards session lows. with the dow down 235 points about a half percent quarter percent for s&p and nasdaq a couple of companies to keep an eye on tjx higher on strong holiday sales. shares up 2.5%. they had weaker than expected guidance for 2026. mike co was a bit cautious on it yesterday but again they're shaking it off. and budweiser parent ab inbev also jumping on a fourth quarter. these shares are up 7% now despite seeing a drop in volumes year on year owing to weakness in china and argentina. but again a little bit of a turn of fortune here. after the bud

light issue. general motors hire and this is impressive given the tariff headwinds in the market today. 3.5% after raising its dividend and announcing a $6 billion share buyback. that dividend will now match ford's. and again, as mentioned, keep a close eye on all the news flow as markets digest the tariff. talk into the close. thanks for watching. power lunch. closing bell starts right now. >> all right carl, thanks so much. >> welcome to closing bell i'm scott wapner live from post nine here at the new york stock exchange. this make or break hour begins with the countdown to nvidia earnings. all that is riding on those results. we'll ask our experts about that in just a moment. but first let's show you the scorecard here. with 60 to go in regulation. we did get out of the gates pretty well today as some of the hardest hit names got a nice bounce. we did start to cool a little midday. that is the current picture. with an hour to go we're red across the board. maybe after president trump said during his first cabinet meeting the tariffs will in fact go ahead as planned. there's been some nice bounces, though today from many