back to you. >> thank you to bob pisani. here with me is james cakmak. good morning, frank. >> bob laid it out for us. nvidia is weighting in the elx is going up over 20%. is that priced into the stock already and what do you make of the market action with nvidia we saw yesterday? >> sure. we do think it is largely priced in. at this point, we are left with 10% of next year. we capture a lot of the fiscal gains. that the point, as the stock has been running, we have been syst sy systematically trimming it. i think the nvidia story continues to remain strong. you still have to stay vigilant with the rise, the meteoric rise. >> it is a meteoric rise. it is witching day. options are set to expire today. for you, the second biggest holding. how do you view a day like this and volatility? >> we have been increasing our hedges going into today ahead of the consumer report on tuesday. you know -- and trimming positions where we can. i think position sizing is important. a company like apple, that was about a week ago one of our biggest weights. we exited that s

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in fact, bob pisani is over at the new york stock exchange. bob. >> kelly, this is a negative for stocks but a mild negative. so the base case was relatively few changes in the economic policy, and that's what we saw. the prior statement did cite a lack of progress on inflation. that has been changed to now there's been modest further progress on inflation. so a mild upgrade on the battle. but the real problem here is the dot plot. we were expecting two rate cuts. now we only have one. and four people said no cuts. that's a little bit of a surprise. so that's a bit of a negative. so let me address steve's issue here about why isn't the market down more? look at the conditions right now. we have disinflation, clear trend right now. we have rising earnings. we have a shiny new tech paradigm in artificial intelligence. and we're a couple years out of a recession. i think that's enough to support the economy. a lot of people talk about 1995 and the parallels. the fed started cutting rates in 1995. they had a shiny new thing it was the internet at t

bob pisani taking a look at what's behind the moves. good morning, bob. rjtsz good morning.ed with walmart they announced a three for one stock split in january and from there it's picked up steam. yesterday williams-sonoma announced a two for one split and wednesday broadcom announced a ten for one split that join nvidia, chipotle, lam research. stock splits are less common today than they were 20 or 30 years ago during the tech and internet bubble of the '90s stock splits were common but after the dotcom bubble stock splits declined and after the great financial crisis in 2008-2009, stock split practically ceased to exist and really didn't recover even after the market started recovering in 2010. the likely reason they didn't recover is that the institutional base for stock ownership has come to dominate the market. institutions are the big buyer and they invest by dollar value, not by the shares that they are trying to buy in. but recently there are some signs of a subtle shift going on. some of this may be because the price of some stocks have reached absurd levels. ten

bob pisani is there with highlights and headlines for us. >> this is the annual conference where thee exchanges like nasdaq and robinhood all get together to talk about trading trends. how is the business? here's the topics. first is the macro set up headed into the back half of the year especially with an election coming up. how much volatility can be expected. second what's the pulse of retail trading. what's the latest data on the explosive growth of trading in the options and futures, particularly zero data expirations. third is the mini-memos e stock rallies. has behavior changed, feeling is it has. fourth is the a.i. revolution. this is a big topic. how it might affect trading and the development of algorithms that guide a lot of the broader trading, a.i. is going to influence that. fifth is the state of ipos, how are the exchanges and the investing platforms expanding investments in companies that are still private. so getting into private equity is another way to expand as well. finally the industry's response to increasing regulatory oversight. remember gary gensler has been

bob pisani today.like nvidia lower today. our next guest does say while ai remains a theme for tech if companies can't deliver they are going to get left behind. citi's head of equity strategy is here on set. great to have you. >> good morning. >> help viewers understand how this rebalancing have affected price action this week? >> as bob mentioned the number of dollars to sell is small relative to the market cap but this is on institutional investors' minds. you would argue might be weighing on nvidia or, you know, weighing on apple a little bit as that weight kind of gets pulled back a little bit. i believe they have five days to also kind of accomplish a reweighting. take that notional amount over five days it shouldn't be too disruptive. sometimes the narrative overpowers the trading which i think is what's going on. >> how concerning to you, if at all, is the price action in nvidia yesterday in particular in broadcom on tuesday? we saw some outside reversals hitting highs and reversing completely,

bob pisani. >>> as bob pointed out we have target increases.s target last month and has one of the highest on the street, claims other strategists are involved in a chase. joining us to you vemo's brian belski, target of 5600. great to see you. >> thanks for having us, carl. >> do you feel pressure to play along and chase further? >> no. no. actually, on a short-term basis we're a little bit worried. on a sentiment basis, we don't begrudge any of these strategists for raising their targets. this is a really tough gig, and we think that, you know, many of these strategists have missed the forest through the trees. they've been focusing on the index level versus the underlying stocks. number two, obviously, they've been focusing more on macro variables in terms of their models. you know, how we explain that is, we don't know exactly their process, carl, but there are models you can take a look at with respect to how we look at the market. we look at dividend discount model, cash flow model, pe model, but then also a macro model. so if you look at