that will make broadcom shares more accessible to you. the market cap that is an easy striking distance. buena that went down for a while after it did the split and so did chipotle. beware, i like the situation, but i'm worried about the overhang of the split. there's a huge dropoff after broadcom, but any of these could catch up if we get favorable sectors over the next couple of years, yes, years, not months. jpmorgan reports friday morning. now this is a $597 billion situation. there is nothing in the $600 or $700 area. but it will be interesting to see this one go to a trillion. jpmorgan, the best bank sells for 12 times earnings, which is way too low. lower than the average stock in the s&p. if the feds starts cutting rates, then this could undergo huge expansion especially if the company puts on a huge set of numbers. and jpmorgan has a level of consistency that merits a much higher stock price. many thought the last quarter was weak and the stock just got clobbered. but it's come all the way back, clean, resilient, don't rule out a

remember, in semiconductors, it's nvidia and broadcom.t's about it and everybody else, amd and quite a few other, they've been weakened where it's not been helpful. with broadcom, they played some of the legacy networking areas and the ai business has been strong enough to completely bridge over it so they haven't had to taper their numbers down. their current ai guidance for the year is very, very conservative. they have software businesses and other things that can drive upside and the stock is very cheap, and i really do like broadcom. >> you're still market perform on intel and it stays at 35. just a final comment. what's significance of tmc reaching a dollar mark? >> i try not to put these arbitrary levels. it's a very important company and all of these folks depend on them to some degree and in some cases to a significant degree. it's an incredible company. it's very important to the ecosystem and they're doing very well. good for them. >> so to put a point on it, if nvidia is a $3.5 trillion market cap company and you think it can

this helps describe broadcom, amd and meta down.q 100 heading to a third down week in a row. caroline: particularly in europe, st micro shares falling four the lowest in four four years. let's get more on this selloff. nancy, so good to have your voice today. the macro picture. this rotation, small caps, are you buying this idea? nancy: hi. i don't think so. could be wrong. if you look at small caps, i looked at performance, the iw m for 10 years and 20 years. the 20 year, you had low interest rates, growth. they lagged the large-cap index s&p by 250%. over the 10 years, they were about half the s&p. if you expect rates to come down for the right reasons quickly, that will benefit small caps. i don't think that is the case. i think we see a slow decline in rates. many companies are highly levered. earnings are not great. for now, if you think the economy is slowing, you want to stick with names like service now who have delivered consistent mid 20% growth the last three years. caroline: on the macro ideal, adena joined us on whether

. >> they are reporting that openai is in talks and has talked to broadcom about developing a new ai chip they also report here that the chatgpt maker has been hiring former members of a google team, trying to take employees from google this is according to three people with the matter, and openai has been talking to certain chip designers, including broadcom shares are jumping around on this news, slightly higher mike, back over to you. >>> still power to move a stock. kate, thank you. >>> coming up nuveen saira malick has her new playbook. where investors should be putting money to work in the months ahead we'll be right back. has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. >>> it is red across the board do our next guest has eyes on three market possibilities saira, it'

broa broadcom has been a mixed bag. >> right. the fed rate cuts may be helping propel that. steve sent me his outlook. he's moving back to lean out of the big market cap names. >> rates go down maybe now. thanks for watching "power lunch." >> we'll see you in a little bit. closing belle starts right now. >> i'm scott wapner from post 9. this make or break hour begins with the rate cut rally. stocks extending record highs as fed chair powell makes the case for lowering the rates. most are wondering how long it can all last. we will ask our experts over the final stretch. scorecard, 60 minutes in regulation. dow is good for near .62%. nasdaq is up by nearly 1%. tech is good today. materials, they're among the best sectors. the semiconductor index hitting a new high. how about apple? up for a seventh day in a row. we'll have a report on that coming up as well. takes us to the talk of the tape. the market move with tomorrow's inflation report and coming bank earnings. let's talk strategy with dan greenhouse of solas alternative asset management. do you think i framed this right?

[laughter] stuart: let me move to broadcom. they raised $5 billion, i believe it was a bond sale. $5 billion? lap lauren to refinance some of their $69 billion vmware acquisition. it closed 7 months ago -- stuart: you've got that look on your face. >> if you want a.i., a company making chips for a.i., but they actually pay a dividend and grow it over and over and over again. we bought broadcom at $3000 less than 5 years ago $$to 0 -- 300, our dividend is 25% a year of what we paid for the stock. it's not speculative, it's cash flow. stuart: you think the stock has got to a high here? >> it's very high. nowhere near nvidia. stuart: next case, citi. they say it's time to take profits in a.i.? if lauren. lauren: yeah,s in biggest a.i. names. their analysts suggest like nvidia and also a taiwan semi. they briefly yesterday crossed $1 trillion for the very first time. we don't have to talk more about nvidia, right? but key point going to $180 on their stock. they say if you looked at demand for the new blackwell chip that comes out at the latter part of this year, demand is not cooling

broadcom led the way with a $5 billion sale as it looks to refinance a portion of the loans secured to for the vmware deal. total overall u.s. sales deals passed over and all three of this week's sellers were based overseas. one other corporate sale i want to highlight is saudi aramco. it pulled in more than $31 billion of orders for its $6 billion sale. it was the company's first dollar debt offering in three years and included 10, 30, and 40 your notes. looking at the options of three, 10, and 30 year treasuries, mixed demand with a three year auction drawing the highest bid to cover since january. the 30 year saw the lowest ratio since november. when it comes to credit, pimco is warning the market returns are failing to compensate for the risks. the firm cio of course strategies wrote liquidity premiums have compressed in both public and private credit markets with a lower quality segment of each facing elevated vulnerability to economic slowdowns and higher interest rates. this week on bloomberg, lauren bass mage and joined from carlisle to speak about those risks in credit. >> def

you get it to 600, maybe 700, but in the end, it's broadcom that's going to be next and broadcom andesla are the two that will be the next trillionaires. >> yeah. we'll be watching for fdic chair confirmation hearings today for romero. visa/mastercard, 10% dlau d drawdowns this year. >> i can't believe that. i think michael at mastercard is masterful. i'm surprised at that. i want to take the other side of that trade. >> delta had decent numbers on amex renumeration, also bastion's comments about the guidance for the quarter, not the year, the quarter, is lar largely, in his view, about capacity where it's growing at 8% summer domestic whereas demand is up 4%. >> i think all of us got very complacent because we've been on planes that are completely full. obviously, we are not on the routes out of new york -- new york must not be the case because i thought that ed is -- i love ed bastian, but the interview with phil was a little challenging because i didn't know they had great supply. i thought everyone was short supply because of boeing. well, that turned out to be c chimerical. this

shares of broadcom gained after discussing a chip.pproach them as part of discussions with chip designers even though nvidia has been the biggest vichy area. plenty more coming up. stay with us. this is bloomberg. ♪ >> north of paris a neighborhood has been plagued by drugs but the paris olympics could be a game changer. it will remain for basketball. >> a new campus, we will accelerated transformation, athletes will sleep, eat and train here. this place should become a new home for 6000 residents. the legacy of infrastructure has not always been a success. the london games regenerated deprived areas and it's a different story for beijing and rio, the games left those cities with abandoned infrastructure and a big pile of debt. paris promises this will not happen. lizzie: that was caroline reporting on how paris olympics have rejuvenated the north of the city and we love the numbers. dan curtis put together a chart on the cost of the olympics in $2022 but an interesting figure, olympics have the second highest cost of any project. onl

br broadcom and qualcomm falling 6% or more. they are rebounding this morning. less than 1% for broadcom and qualcomm. nvidia is up 2.3%. advanced micro up 1.75%. this has been the stocks which have been on a tear for so long with nvidia leading the way. we will continue to watch this. we have seen incredible out sized gains. let's look at the treasury market. the ten-year is yielding 4.18%. the ten-year yield is coming back down after pushing above 4.2% recently. >>> meanwhile, let's talk politics for a moment. president biden testing positive for covid yesterday. the white house says he is experiencing mild symptoms and willis l isolate in delaware. he is vaccinated. the white house will provide updates on the status. biden's x account with a post that said i'm sick followed by a post that read of elon musk and his rich buddies trying to buy this election including a link to his fundraising campaign page. this comes as pressures is mounting on the president to bow out of the race. congress member nancy pelosi tells biden that polling shows he cannot be reelect

broadcom, and supermicro, that have cooled off more significantly over the past month or a bit longeridia is out there by itself. and at the highs from about a month ago. >> that is sign for concern and sign for rotation. it makes sense if the leader is going to lead for another bit. it was the strongest player out of the gate. it makes sense it will be the strongest player going forward. we can't see the doubling and the tripling we saw last year. we should see the semiconductors hold up a little bit. the question is, in bold markets, you have changers. people sell the leaders and the stocks they are making money on, and rotate that money into something else. that's what we saw with the iwm and the microcaps moving a lot last week. we have to look at the profits being taken in that sector. that may put somewhat of a lid of what we're going to see from the semis going forward, where do we think they will move into? >> how important is the prospect of an nvidia chip design for china? kneecap it, if you will. if they make it good enough, it's good, very often, the u.s. just ends up bloc

semiconductors, x, nvidia, amd, broa broadcom has been a mixed bag. >> right.ping propel that. steve sent me his outlook. he's moving back to lean out of the big market cap names. >> rates go down maybe now. thanks for watching "power lunch." >> we'll see you in a little bit. closing belle starts right now. >> i'm scott wapner from post 9. this make or break hour begins with the rate cut rally. stocks extending record highs as fed chair powell makes the case for lowering the rates. most are wondering how long it can all last. we will ask our experts over the final stretch. scorecard, 60 minutes in regulation. dow is good for near .62%. nasdaq is up by nearly 1%. tech is good

let's take another look at the chip index because nvidia and broadcom to the bigger drags on the day.he 50 day moving average and today we are gapping below it. that tells you investors are surprised by the degree of bearish selling we have. you can see the rsi momentum indicator going down overbought territory towards oversold bread last, went below the 50 day moving average it was back towards the april bottom not much to see there. the question is will this continue and be a brief blip or is there something more that investors are mulling over here where it can be a bigger correction. there are a lot of bearish divergence is bullying -- between -- beneath the surface. >> the stock is down today. it is just ugly out there. thank you so much. coming up, former u.s. treasury secretary larry summers weighs in on the 2024 race as kamala harris ramps up her campaign. this is bloomberg. ♪ how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than

broadcom encouragingly joining nvidia trading to the upside. from a macro level, something interesting all week is as we have had lots of volatility the yen has rallied. the haven yen has rallied. the four day chart. the dollar-yen down 2.2%. that tells you the haven yen, there is a flight to safety. in the carry trade, the chief yen is no longer able to use as a carry trade. it can be a big reason. especially today's action as to what nvidia dipped down whether it was less cheap money available. now that the yen is coming off of its highs in the dollar-yen is coming off of its slows it creates an opportunity for investors to have a little more liquidity. i think one reason we are having this flight to safety, of course, too far too fast for big tech. alexion 2024, so many headlines. look at the vix. the vix relative to election 2024 has been a big tell all along this year. the curve october, november in next year elevated towards an 18 handle for much of this year including out of the assassination attempt of downtown, standout. then, around h

to the hyperscalers and you see the stock is down 5% and the competitor down a similar amount and broadcom develop its own inhouse chip and it's over 6% and then in the analog space, texas instruments is holding on to some gains after reporting better than expected second-quarter earnings on the call. the ceo said its u.s. operations makes it a geopolitical winner. 75% of its business is based here in the u.s. one stock is holding up and earnings is playing a more important role in understanding how strong the demand story. tonight, equipment player kla tencor will report. it's a till wind and recognizes the comments made by former president donald trump as potential risks. we'll look for those results, guys. >> it's hard to imagine in a world where the capex budget that was reported by alphabet is somehow going to be not good enough or, you know, in some ways not going to carry this through. just how much do these hyperscalers and the industrial level-type scalers in i.t., how much do they spend it to make it better or keep the momentum going. >> it's all about context and the companies i

lamb, nvidia, broadcom also down between 12% and 18%. we'll get more of todd's biggest movers when we come back. >>> welcome back to "the exchange." markets are positive. the russell is not here, it's the leader, the dow is up 429 points, somewhat of a rebound from yesterday, but the nasdaq only up half a percent. here are some of the names hitting new multiyear lows today. lulu lemon, it's been a struggle for this one, down 9%. las vegas sands, down half a percent. lamb weston, after that horrendous day yesterday, down another 2.5% today. again, the french fry restaurant trade not going so well right now. wynn resorts up fractionally, nooik, nike, as well. raytheon hitting an all-time high today, up 10%. and let's get a check on the ipo of the day. lineage is one of the world's largest temperature controlled warehousing and logistics company. making its public debut top of the hour, just now shares priced at $78 last night, opened at $82, so it's been a decent year for ipos and lineage will continue that lineage, you might see. now to b

>> reversal and magnificent 7 and eli lilly and broadcom dragging the indexes down and 490 componentsallying and spreading out and look at the chart for small caps and micro-caps and looks like elon musk spacex rocket went straight up in the last week. total change in sentiment and dynamic in the market. stuart: that's another one i missed. there you go. always good advice and sitting for three hour as day and maybe i should. thank you, lou. take a look at apple, something is going on there. lauren: bloomburg reporting they're in talking to license for films from hollywood to boost their portfolio on their streaming service. apple tv, tv plus and didn't give a figure but apple spends what, about $7 ball year on content in general that's nothing compared to netflix and also a drop in the bucket for what apple brings in in revenue every year. stuart: no verne nordisk and -- novo nordisk and eli lilly are working on a one day pill that takes the weight off. lauren: take the pill for 30 days and lose on average 6.1% of body weight. stuart: this is your area. >> yeah and fear not, el lie l

recollect check the big winner on the nasdaq and intel up, marvel technologies, at the scene la, broadcom's that? lauren: mercadolibre. david: thank you, lauren. that's up 2.25%. boeing, lauren, news about boeing all day. lauren: they work on written plea deal and they're reportedly in conspiracy fraud charge affects billions in contracts with the pentagon and with nasa. as a government contractor last year, those contracts were 37% of their annual sales. we're talking billions of dollars and now they would be a felon. what's the 7:pact of that? impact of that? wall sprite thinks maybe very lit and will maybe a waiver and be a major contractor and supplier to the federal government based on share price reaction and reuters reporting that beau asking in talk with the defense it -- boeing is in talks with the defense department on how it affects the government. david: stock up over 2%. you should notice and check the dow down there and it's now in the red. at one point this morning up over 200 point and down about 30. 206,000 jobs added last month in june. that was stronger than expected, b

names you mentioned like nvidia and even bro broadcom. >> given the political environmentopogeopolitics, investors are looking at which companies have an opportunity to diversify away from some of the asian suppliers. if that's the case, intel and global foundry seem to be top of mind given the investments they've been making here in the u.s. i also saw another analystpersp, intel looking better than nvidia, that have run up so much. >> thank you very much seema modi >>> check out the russell 2000 etf. a lot of this goes back to the cpi report showing significant slowdown in inflation. kate rooney has more on the move from the big to the small. kate >> kelly, yeah, so individual investors had a key part in what we've seen around small caps in the rally. tom lee calling it small cap summer these are stocks where the market cap is typically below $2 bill billion. according to new research, there has been record daily inflows from the russell 2000. iwm and tna, all stocked by the cpi print. higher expectations for a fed rate cut it comes during what is seasonally a slow time for this marke

broadcom is exactly -- just one for one with nvidia. it's terrific.meone who has a lot of money. you want to talk about people who have a lot of money? >> sure does. >> the ten for one pays out friday. >> that is going to be, let everyone know, that right after chipotle and right after nvidia, there was churn. don't feel like you should buy it ahead. that has been a bad strategy. >> and broadcom is in the $800 billion market cap. >> that's my point. >> i know it is. with lilly, tesla. >> lilly, i think, is $900. >> lilly is under nine. >> we mentioned barclay's going to $932, jim. they think mounjaro beats. >> how many plants can you build? how quickly? these are $5 billion plants. they are very hard to make, and in the meantime, all that happens is people say they might have a pill. believe me, david ricks, ceo of eli lilly, is going to be first with a pill too. and now they securichanged the . they've changed a lot of names. >> the alzheimer's drug. >> very important. >> could be yet another potential blockbuster for the company >> a lot of people,

you mentioned broadcom. nvidia has never recovered from that. look at where it closed today, look at what the high was. so, there's more pain in this, just on a technical basis. >> and you have to think about what a.i. people are going to demand. people -- what consumers, what a.i. they're going to consume. so, we could have those high b bandwidth memory chips, but maybe we don't need them. so, there's going to be a differentiation from the tech companies that are actually producing -- there's going to be winners and losers, but i agree to karen's point, too early to figure -- this story is not over. it's got a lot of innings left. we could separate the winners and losers years to come. >> okay, so, how, tim, do you think about this rotation, how then do you think about positioning right now, let's say for the next couple months? do you start re-examining some of your tech trades? i know you've been in utilities. do you look more at the so-called safety trades? >> yeah, i mean, i think, especially -- and as i think about it for my clients, alloc

into a 500 or $600 billion company like qualcomm, if that's a tradedown, we think qualcomm, amd, broadcom, oracle, are going to be the real winners the second half of the year. i continue to be quite worried that this is going to be a july 1996 type of event. if you remember then, and i was a strategist back then as well, these companies did not hit their earnings after a huge run the first half of the year, and we had a pretty sharp correction. we still think we're going to have a 10% correction between now and year-end, and we think july and august could be when it comes, especially if we do not get powell, as dr. siegel has been talking about, which we actually degree with, if powell does not tee up a rate cut in sed september with the volatility with respect to the election, especially the conventions in august, we think we could see some downside. >> so, brin, are we set up for a big earnings disappointment and a pullback for big tech? >> you know, i don't think that's going to be this quarter. i think earnings for big tech are going to be strong, but what investors need to know, bec

they are not exposed as much as say the envelopes of the world or the amd's or the broadcom, right? as you look at that, you've got to look at smci which actually is getting hit and by the way coming up, a very important interview with the ceo of smci, super microcomputer they build-out the data centers, charles liang is coming up and i'm fascinated to hear the geopolitical stance from his side because donald trump made comments about taiwan and balking at protecting taiwan. >> i think it's so interesting you bring this up because we talk about this idea of tech independence and how important the team is going to be no matter whose in the white house. just today we launched etf called made which looks at us manufacturing because we believe that that's something that's going to, again, be really important no matter whose in the white house, so think about tech independence as a source of strength in your portfolio regardless of politics, and continue to allocate to that, continue to allocate to quality and continue to think about ways in which you can preserve your portfolio regardle

pretty significant gain of more than 5% at the high points today and then smci, avago, which is broadcom and all the other names there kind of pushing nvidia down just a bit. what does that tell you? >> i think it tells you people are saying look at the valuations we've seen on the magnificent seven, they may be down to the magnificent five but what else is going to benefit from this a.i. trade? what have been the laggards. what should we be picking up for the second half which is not trading at nose bleed valuations we've got the global mega cap tech trading at a 10 time multiple, that's 10 times sales. we've never seen a valuation like that going back to the dot com so people are saying what else is in the market? boeing is up today, intel is up today so looking for the second tier tier tier and plowing the money in there. liz: the second tier, right but are you seeing flows on the floor that gives you a sense there's some movement elsewhere? we've talked a lot about utilit ies and energy, because running data centers takes a ton of this energy. are you getting to more calls and hearin

semiconductors took a pretty significant beating, that's the basket of all of the names including nvidia and broadcom, micron. you just can rollout the whole thing. everybody was in the red. that looked like a really goodbying opportunity, did it not? >> well, guess who went shopping. liz: you. that's exactly what i went after. liz: what did you buy? >> i bought nvidia. i bought amd. i bought palontier. many of the names beaten down because the markets are the only store where people fear sale. i believe in those companies long-term and willing to wait out the nonsense and that to me was a great opportunity to do so. liz: do you think it's nonsense there is a pretty pronounced rotation out of at least some of these very high-flying tech stocks, and into the russel 2000. i mean the russel looks like it's going to have gained this week alone, 3%. yeah, i'm looking at 3% here for the week, and s&p will be negative for the week by just under 1% and the nasdaq down 2% on the week. >> well, you know, it's interesting because i don't believe in the concept of rotation as it exists in the term as used today.

. >> broadcom, too. >> yes. >> has not reached that level yet. >> just -- as much as we marvelled atdia, you have to marvel at this move in meta, basically from jan of '23. this is a four to five-bagger, and it's extraordinary. and really, it's -- they've benefited from two or three important themes and secular investment trends. they were big beneficiaries, they coined the phrase the year of efficiency. this was a company, we always knew that, what percentage of the world's population is on some type of a meta platform? >> what's the population, 9 billion? >> i think it's a little less, but i think it's like 35% of the world -- >> so, there are those that always felt that if they just focused on free cash flow, we don't even need growth. this is a company that was ridiculously cheap and at its low, it was trading around 12, 13 times. maybe not even including the cash, right? >> right. that was absurd. it's a five-bagger, but never should have been that one bag. it's still not expensive here. >> and they've really been onboard for one of the first few that really -- that's not an nvi

. >>> and broadcom jumping late in the day on a report that the chip maker has talked to openai in developingchip. >>> former president donald trump set to take the stage at the republican national convention this evening. there he is expected to officially accept the gop presidential nomination. this as president biden takes a step back from the campaign trail after testing positive for covid, and after he's facing mounting calls to drop out of the race eamon javers has the very latest eamon? >> reporter: melissa, there's a rising sense of anticipation, particularly now that they've opened the security gates, and the delegates are starting to flow in for this evening there's a real question about what donald trump is going to say tonight. this is his first big major address after that horrific assassination attempt over the weekend. and for our audience, the question will be, will his tone match the populist rhetoric we heard from j.d. vance last night, very critical of wall street, very critical of big business so, we'll be watching for all of that i had a chance to talk briefly this mornin

you want to go down into the oracles, amds, broadcoms, still very, very large companies but also from receive earnings stability from these big names, charles, but where we see the growth and trajectory of growth surprising will be in big cap financials especially money center banks. tech areas, industrials, parts of health care. we'll start to see distribution of earnings growth across the market cap spectrum and across the sector perspective which by the way is very positive for u.s. equities. >> where does that put the small cap rally? coming into the week, thinking it was a flash in the pan. they outperformed yesterday. they're outperforming again today, despite, listen we know tons of money come into them, record breaking money. where are you with respect to the small cap rally? >> we love the small cap rally. we love this overreal action airy, one day they don't work. one day doesn't make a trend. that is one of my favorite sayings. you have to be an investor man. you have got to go where the puck is going, not where it is right now. and we really think, i said this i think on y

broadcom up 12%. the smh say its best day since march. did that give the all-clear?, i mean, you know, if you look at nvidia stock, it hit that high of $140, it traded at $103 and change yesterday. that's a pretty big drawdown. so, i think it was sort of ripe for some kind of positive news. there was that, and then, so, the big spend, and then also, amd, with some good numbers, as well. so, that sort of created enough of a bottom for a bullishness, and i don't know, sort of a vacuum up. >> you mentioned the best line that was the analysis that the market did on it. it wasn't a demand issue, it was a supply issue. and so, i think everyone looked at it, you guys were talking about it on the desk last night, everyone looked at it the wrong way, and they thought it was about a spend, thought about a dollar is going to get you how much on the back end, and it wasn't enough on the back end. but now that they know there's an unlimited amount, what perceived to be an unlimited amount of demand right now. >>> let's get an earnings alert in on two names in that sector that rep

>> i've got to tell you, when i see stocks like nvidia and broadcom go down huge i cannot reach for american superconductor not with these high-quality stocks that are just plain old on sale. let's go to greg in virginia greg >> caller: hi, jim long-time viewer first-time caller. >> okay. >> caller: owens & minor omi. buy, sell, hold. >> if i want medical device and i want those kind of properties, i will buy abbott labs, which is down huge and is much higher quality company. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> announcer: coming up, no finger pointing needed on free trade. but where do workers go from here stick with cramer. >> no application fee if you apply by august 29th at university of maryland global campus, an accredited university that's transformed adult lives for 75 years. you're not waiting to win, you're ready to succeed again at umgc.edu. >>> for decades we've followed the gospel of free trade in this country. a gospel that made big money for corporations and gave big cost savings to the consumer. but also soldout millions of blue-colla

you brought up broadcom. i mean, that march 8th reversal in nvidia actually worked.middle of april, the stock was down 24%. individual stock wise, the same thick on june 20th in that name, and by the way, it's never recovered. when you see a move like this, the magnitude of the reversal in the s&p, which by the way today made an all-time high and effect lively closed on the low. that's got to give you some pause for the overall broader market. so, i think the big names are vulnerable for the first time in awhile, and for the first time in awhile, you're starting to see technicals that suggest that the broader market might be in for a bit of a selloff. >> i know what you did last summer. remember that one? >> no. is that a movie? >> yeah. >> last summer, heading into q-2 earnings season, we saw similar sort of sentiment, you know, really positive in a lot of these big names. now, granted, they're all up a lot more year over year since then. and the nasdaq and the s&p were making new highs today, before these huge reversals. and so, when you think about just how invest

i mean, this was due to outperformance and so we trimmed back broadcom, microsoft, or or oracle, tesla. those names had become outsized positions in our portfolio but i do want to caution people on making assumption about what a trump trade is because going into his first term, many people and us included thought that technology was going to be to the trump administration what energy was to the obama administration and yet what you saw in that term was the xle energy was down 29% versus up 83% for the s&p 500 and financials were only half of what the s&p did which should have been an area that outperformed up 45%. who was the big outperformer? the qqq up 172% so i think what we have to do is step back and say buy great companies and don't try to game what sectors may or may not -- last week it was healthcare that was outperforming and now people are saying it may not be healthcare in a trump administration. charles: you know and i should point out, tan, the solar stocks are up almost 600% under president trump, so, and the gun stocks never had a better salesman than president obama. a

he says that all that microsoft -- all that microsoft money will benefit nvidia and amd, but broadcom, ariesta, and even intel. >> and oil prices are higher 4% today after concerns about fighting in the middle east escalating. iran is accusing israel and iran's leader is threatening israel with severe punishment. israel has not commented on the assassination, but did say it killed a hezbollah official in beirut, who israel blames for the attack over the weekend that killed those 12 children. with all of that going on, pippa stevens joins us with more on finally a big move in oil. and you wonder if they are starting to get more concerned about what could happen next now. >> we are seeing a big move in oil prices today and that's because these two back-to-back assassinations are raising concerns that we could see broader fighting in the middle east, nakd direct iran/israel conflict. the assassination of the hamas political leader ismail haniyeh overnight in tehran moves this conflict appreciably up the escalatory ladder and edges the region closer to a wider war, adding the fact that it

broadcom up.oining us to talk about it is stephanie link, chief strategist and portfolio manager at hightower advisers and also a cnbc contributor. steph, what do we think about what's happening with the chip stocks? pretty good news with the earnings, and there have been skeptics as we headed into those numbers. >> yeah, absolutely. i think amd is certainly the bright spot today, but just keep in mind, becky, the stock is down, it was before today, down 6% year to date. expectations were really low. and i think people were not expecting them to raise guidance, and i thought it was interesting that they're guiding higher in servers and cps. we talked about it. i own seagate for that very reason. really good for amd. i think the fact that microsoft, the fact that alphabet and all of these other hyperscalers are going to be spending a significant amount of money on ai, that's actually also feeling the higher semiconductor group as well. >> how much of this is any short activity that may be getting s

i mentioned amazon, arm, broadcom, some of the winners in today's session.a look at treasurys right now. it's a lighter data week until we get to thursday and friday and pce, but we do have some reports to get to in just a moment and the ten-year yield, 4.2%. we are 30 minutes into the trading session and here are three big movers we are watching. ups shares are dropping and profits dropping bu to high labor costs and weaker than expected demand. that said the company did see volume growth for the first time in nine quarters, but the stock is taking a pretty big hit. we'll talk about it later. watch danaher after the health care company beat estimates with core revenues down low to single dijity ands shares of gm giving up early gains and the automaker comfortably beating estimates and raising the outlook and it will restructure its money-losing china and autonomous driving businesses and we'll talk more about gm, tesla and autos on the show, but quite a reversal now down 6.5% almost. >>> we do have econ data crossing the tape and to that we'll go to rick sa

-related like nvidia and broadcom or the new pc cycle that we think is coming which we think will benefit amd and qualcomm. >> i'm going to write them all down as quickly as i can. time's up. thanks, joanne. join us tomorrow. "squawk on the street" is next. ♪ >>> good wednesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber at post nine of the new york stock exchange. futures are red as alphabet and tesla earnings lead to some mag seven weakness. meantime, some macro worries getting folded in as well from visa, capital one, lvmh. two-year yield is the lowest since february. our road map begins with warning signs for mega cap tech. tesla and alphabet fail to impress. >>> plus visa saying consumer spending remains strong while jpmorgan sees signs the macroeconomic picture may be "cracking." >>> and at&t delivers a beat for wireless phone subscription additions and the shares are higher, at least a half hour before we get started with trading. >>> let's get started with trading this morning, tumbling in premarket on that earnings miss. on the

broadcom avg out you argue is a place to go up 53% so far this year.e markets have stunk, over orange and a vodafone group are two of your picks. make your case. jeff: on broadcom you are seeing an incredible spending grace in the world of ai but you aren't seeing the use case come through. you aren't seeing broad enterprise solutions that can really change the world. as they use case is forced to come to fruition in a world with higher rates and more choices, i think that is where you continue to see the strength from companies like broadcom. you don't have to just play nvidia. you can play a little broader as the world of ai broadens. as we look internationally, the world of income is back. the world of dividend paying stocks is back. as we look at companies like orange and at some of the other telecoms abroad as well as the financials in the euro zone, really, the compelling case is you're earning a 6%, 7% dividend along the way and have the potential for equity upside. i want to touch on one more thing. the world of rates. i agree the fed should no

it follows a report last night that openai is in talks with broadcom to develop a new a.i.e analysts, though, finding opportunity in this rec. morgan stanley upgrading arm holdings from $190 to $107. shares are up 2.5% right now. next week we'll hear from nxpi, texas instruments, among other semiconductor stocks. carl? >> seema, yes, thank you very much. next week is going to be very busy, whether that's southwest or the airlines or 3m or gm and some others. a number of eshings movers on the move today. netflix, travelers, axp, we talked about earlier, which was not responding well to numbers. actually, adding to some losses here this morning, sara. >> yeah, we're down 4.25%. didn't express a ton of concern when it came to spending at american express but analysts on the -- we're expecting more on the revenue guidance, even though they did take up the profit target. i was looking at netflix as well because it's up 1.2%. 8 million subscribers added represent growth. they saw growth in every region. it was led by asia-pacific. and generally, most analysts, david, are taking t

some help from some of the bay area tech favorites, including nvidia and other chipmakers amd and broadcomthe bay area as well as apple taking a live look at the markets and the numbers. this morning, they headed higher when that opening bell rang this morning, little bit of a drop for the dow. but now it is back up about a quarter of a percent. the s&p 500 up almost a half of a percent. again every uptick is higher into record territory. there 5599 almost at 5600 for the s&p 500. the nasdaq also up about 100 points this morning. the latest wearable tech just launched today. and instead of a watch, it is a ring. samsung's galaxy ring offers a health tracking feature as a rival to the apple watch and fitbit. the rain can track your sleep, your heart rate exercise, the new technology comes in three colors. it starts at just about $400. federal reserve chairman jerome powell back on capitol hill today. he is still answering questions. want to take you there live just to see some of this. there he is answering questions. this is the house financial services committee. yesterday it was the sena

the nasdaq higher thanks to nvidia, meta, broadcom, charter, we'll talk about and amazon.tion numbers. the 10-year year 4.2. consumer sentiment data in a bit as well. we're 30 minutes into the trading session, some movers we're watching, norfolk southern heading higher. the rail operator posting its first quarter revenue growth in five. wraefl break down the action with alan shaw. deckers, the company behind uggs, top gainer after strong numbers, beating on the top and bottom line and raising its gaps. look at the move in shares of dexcom, tumbling after the diabetes management company's earnings beat estimates but revenue and guidance disappointed the street and the stock is getting pummeled down 40%. >> just crushed. we got consumer sentiment out moments ago. to rick santelli for that. good morning, rick. >> good morning, david. indeed, now these are july final reads on university of michigan sentiment so they will replace the mid month read. mid month read was 66.0, but remains the weakest since november of last year. mid month read still remains the lightest level sinc

-related like nvidia and broadcom or the new pc cycle that we think is coming which we think will benefitem all down as quickly as i can. time's up. thanks, joanne. join us tomorrow. "squawk on the street" is next. ♪ >>> good wednesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber at post nine of the new york stock exchange. futures are red as alphabet and tesla earnings lead to some mag seven weakness. meantime, some macro worries getting folded in as well from visa, capital one, lvmh. two-year yield is the lowest since february. our road map begins with warning signs for mega cap tech. tesla and alphabet fail to impress. >>> plus visa saying consumer

like i said, i prefer broadcom on any pullback or lam research. >> steph, can you explain the view ofhe uncertainty around the democratic nominee will be on the markets? i think we all saw where things were going two or three weeks ago and now we don't. i don't know if that changes the dynamics at play with regulations or taxes or any ceo looking at cap ex? now some are saying they are holding off because they really don't know what will happen. >> there is definitely more uncertainty at this point in time. what i have found in my career, it doesn't matter as much about the presidency, but it really matters about congress. the makeup of congress. if it is a split congress, that is actually what the market likes because nothing gets done, unfortunately, i don't like to say that, but that's what the market wants. them don't want surprises. it is more important there. >> what is your s&p earnings for next year? we will have tom lee on. i think he was 270. he is higher now. even if multiples could contract, it could still put you higher on the averages. what do you think for next year? >>

really notable in the month of june, we saw really interesting moves, particularly among nvidia and broadcomversals on june 20th. that week. they haven't really regained or back to highs at all. should we be more concerned given the speed bumps exhibited by some of the components? >> i think the expectations are so high. we have earnings coming up and you see outside reversals on high volume. 2x leverage on nvidia is very uncommon. usually it's your spys or iwm. you are setting yourself up for a correction. if i'm a manager, i have ten stocks that are 40% of the s&p and 60% of the growth. i want to look away. i want to look at healthcare and financials. as big tech has paused, those names are breaking out. there is opportunity away from mega-cap growth. >> going to the sectors that showed glimmers of life yesterday. reits had a good day yesterday. home builders on the pull back that the fed will start cutting decisively in september. are those moves sustainable? >> the reits are interesting to me and a lot in the small-cap space. the russell 2000 has gone 720 trading days. only following the

this is at the same time last year, everybody was like, oh, what about amd and broadcom and these guyspple, this could be the biggest cycle, you know, 100% we've ever seen being told you have to upgrade to get one of these zillion features and i thought there was something for everyone and i think that's going to resonate. it already is. we're seeing builds go up but apple could systemically grow iphone sales through this and catalyze ai for the masses, they really can, because a lot are like ai, sounds great. we don't use it day to day except for chatgpt and these guys will give you examples how to use it for the masses. google announces stuff and people sometimes goes past people because google is a little technical but when apple does it, it can go mainstream so i like what we're seeing there. >> ben thanks a lot. ben reitzes. >>> cfpb director rohit chopra will join us about the massive outages. >>> the latest from milwaukee after the final day of the rnc. "squawk box" will be right back. >> aflac trivia question, elon musk purchased a car featured in which hollywood movie? e sw wn