>> i don't agree i hope you're wrong on nvidia hitting the bottom because i'm long puts. in what world would you want to own a semi company, and that's what it is >> the assumption that you're making is that there is this universal moment where all industries are impacted by the economy. what really happens is that over the course of time, over the course of the last 8 to 12 months you've seen -- >> without a doubt semis were first in >> there's sometimes -- when you're a company analyst there's sometimes you need to be a marketanalyst. this is a time to be a market analyst. particularly how the market has changed in the last decade with indexes owning more than 50% of every publicly traded equity that's going through impact. we're still at ridiculously high levels for contracting economic environment and for an environment where the fed is going full steam ahead so i don't think semis are cheap enough we see the cars right now, that supply chain is gone we don't know what double ordering is. and nvidia it's lunacy for this to be trading high five times -- >> jason snipe

nvidia has had a tough year or two. there was a lot of excitement about that not happening. they were told by the u.s. government they can't sell a certain level of chips into china, which is a huge ebend market for them. and there's no reason to think next year is going to be some blockbuster year for enterprise spend. the whole crypto story is up in smoke. so all the reasons why we'd be bullish on nvidia in the short-term don't exist i'm in the stock and i'm in it for eight years. i'm not selling it but i'm not pounding the table or wanting to own more right now i don't feel like anything is going to change anytime soon and part of being a long-term investor and accepting not every stock is going to be on the 52-week high list all the time >> investing is hard and you've got to stick through the tough times. you've been through many cycles in your long, illustrious career >> yeah, it's really tough and that's why my comment before, you can't just rely on one data point or cherry pick data points. if technicals were so, so great then it would be pretty easy and to josh's po

and even though i loved nvidia at 29 times sales. no go. there's a company communicate to shareholders i'm not saying they have individual communication with individual shareholders no. but do you return the calls? >> who does not do that >> bausch health >> a weak performer. >> one of the worst you've seen. i called them -- one time i left a message my staff said who are you leaving that horrible message for? i told them, bausch health >> do you regret that? >> i read them what i call the riot act you'll love this one you have to stop having lunches and dinners with management. the ceos are unbelievable sales people they come back and say i don't buy that i come back from lunch and say, even a $12 latte from blue bottle i'll come back and say i had the greatest meeting you won't believe. and jeff marks who works with me says, jim stop taking those lunches, please. >> you have insight from them. >> but -- sara -- >> but they sell. >> -- have they ever said to you my stock is high >> no. >> maybe you want to wait, buy it 8% lower? no i can't

i think the bigger issue that nvidia experienced the kind of trifecta of hardships this year. a crypto currency collapse there was an impact on the gaming revenue related to slow down in china. so there was a combination of events that had a negative impact on their fundamentals and also on the stock price. so as we go into calender 23 a lot of those headwinds are going to turn into tailwinds with respect to gaming specifically, the gaming segment has been clearing out. they've been clearing out a lot of extra inventory that's been built into the zrikds channel this entire year so nvidia the undershipping, we're going to reach a bottom in q1 and we are going to see a rebuild of gaming. >> i can see where you're coming from at least on the long-term argument that equipment is going to be important because there's all this demand. eventually that equipment has got to go somewhere because the world needs chips. but applied materials was as low as 75 and now up near 100. and we're getting into this oversupply situation is it possible in the beginning of 2023 we end up with a situa

we can see nvidia shares are down over 41% right now year to date cowen also bullish on nvidia said russiad to the equation as well and nvidia will be a winner in a.i. we're talking about a bigger call from evercorps. they are arguing that bottom is in the index is clearly falling much more than the s&p 500 year to date. that was the chart we just had before and the drivers for that rebound is the china reopening, this is according to them, memory market bottom, and although we've talked about this quite a bit, inventory levels have been high with a lot of customers they believe had that companies will continue to keep that buffer higher level of inventory to avoid any future problems like a possible pandemic that's why they're bullish on marvel over here, 53% higher over the last year, asmlf, 24 and wolf speed 26% on a one-year basis whereas morgan stanley saying the opposite. they think we're in the first phase of an industry wide rec correction and believe amd and qualcomm and lamb have more revisions to come. amd the worst performer out of the group, almost 53% lower on a one-year base

nvidia has had some challenges with the chip, you know, some of the chips they're sending to china. obviously, the multiple is high. you know, nvidia is a long-term holding for us i mean, gaming data center is obviously all slowed this name has done great over the last decade, but it has been challenged recently. and even though i don't own micron, when i think about inventory, inventory has been the issue. you know, with the semis and steph has always talked about this, double ordering that they're experiencing throughout the year is now coming to roost. and that's been the problem. >> yeah, you go from a shortage to a glut. and that's going to be an issue that we'll be talking a lot before we get into '23 we'll take a quick break and do final trades, next what if you were a global energy company? with operations in scotland, technologists in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping find new

nvidia where is the opportunity there >> well, it is in the auto market nvidia -- we have five picksat, three are in the tech space. nvidia, the semiconductor space has gotten cheap from a multiple standpoint, nvidia is always too rich for us to buy and it is final down to a valuation that we think is affordable so, yeah, even though it is a pretty healthy 30 times earnings, it is down from 60 and i think that the markets that they serve, they are the premiere chip provider which are gaming in autos. >> and you are also bullish on microsoft. give us the elevator pitch >> microsoft at the end of the day is an amazing company. they are firing on all cylinders. they still have the overseas market in china that is a big market for them that can be tapped but the software is a service, subscription model is working, integration of the gaming business is wonderful and top three in the cloud services industry and cloud is here to stay so they have got pricing power in the cloud market. >> and what about alphabet >> alphabet, the advertising model will slow with the decline. and that is a va

. >>> and can chips be key growth drivers in this market amd, nvidia and marvell are top picks. we'll begin with markets moving lower. our next guest sees a recession on the horizon and doesn't think the economy can keep up. joining us this morning is sven hendrick great to have you. >> great to be with you. >> so, i know for a moment there there was a period where you were beginning to think about being more constructive. is that gone again now >> we were constructive in october. the technicals told us that the rally was coming in on the s&p, and we got that this week. i'm still kind of constructive, you know, we're entering a positive seasonality period here into year-end and beginning of the year obviously the reaction we saw in the last couple of days is both technical but also exacerbated by the fed's hawkish stance, at least on paper so far. >> what do you think breaks? is it going to be credit is this going to be a wave of defaults is it more about earnings disappointing? valuations not keeping up with earnings or a combination of all those things >> it's a combination of

i would be looking to add lam and add more nvidia next year.liz's camp. >> would you look at some stocks on your radar? >> no, i wouldn't take a look at them surprise to you, scott semi stocks, why would i own it that it's cyclical and shown that they're cyclical. >> since that was too obvious an answer, obviously, for you, so we know that smartphone demand is still good, right apple told us that you have liked some of their suppliers on the chip side in the past, so if you know that demand is still good, why wouldn't you at least take a look at some of the names you have owned in the past, and if not now, when? >> six months or so, look, demand is only one part of the market skyworks has an usually large -- well, at least 50%, which makes them a declining environment their margins can be put under pressure i just don't know how it will play out with china. number two, when people go back to work, you know, you are we get to go need more laptops? more semiconductor-powered equipment? i just son think so. you have irrational pricing, which joe p

jay powell never told you to buy meta or tesla and never told you get out of nvidia and not his job.ose money and to be fair the industry is like this. they like hot merchandise. the companies themselves turned out to be unworthy of their amazon can only grow $1.8 trillion valuation at the peak because the numbers were inflated by covid and still haven't got rid of the bloat was awful. meta got way too high on advertising. made it harder to track online behavior on their devices making targeted adsless valu■ble. it doesn't help they're seeking billions without showing much in the way of results when mark zuckerberg announced other cost cuts, he refused to touch that metaverse spending they have to figure out a way to get people to post more too. tesla's printing money land has no competition but that's no longer the case and nvidia had the best semi conductors in the world. china, you couldn't have sop of the best it strengthened the infrpáu)ucture business both of which are slowing. apple couldn't make enough product to meet demand and it's a high qua&■ty problem, problem nonetheles

nvidia today for example, it has a good chance of pauling even more?ople are glitery eyed about nvidia, it's a solid company, very, very interesting, lot of potential but maybe the valuation got very rich? >> i can't comment about nvidia but the market you have a great point. earnings for the s&p are expect the 5%. few month ago it was only 10%. ers need to be revised a little lower for the s&p next year. this will put pressure on stocks for the first part of the year. the good news, say we have the recession, most anticipated recession we have that, have that in the second, third quarter, valuations become much more attractive. second half of the year looks like a better story especially if stocks price in a recovery. liz: gene, less than a minute left, federal reserve probably continuing to hike rates. how much will that negatively effect stocks? >> we've been saying the fed, coined a term in our team, hawk ward. raising rates dramatically but they're awkward. lei as we talked about, consumer savings, 1year lows. we're headed towards recession most l

still seeing weakness in apple, nv nvidia, biggest players taking pain today coming up on the show, one of the day's biggest winners. surging today on the back of strong earnings and guidance that is not the ceo of signet jewelers that is jared bern stein will talk about the american made chips bet from this administration let's get straight to the market downturn mike santoli tracking the market action mike, what are you watching? >> second straight drop in the saupd. relentless drip lower. we hit the lows of the day may be what is a relatively significant effort too make a bit of a standing. first of all, i'm tiredof seeing a trend line that's been happening for months the market keeps obeying it. everyone is watching it. that's where this rally halted for a moment, that's where we pull back from as of friday's close. that's the down trend line from friday around 3900, just above there. late in october highs, mid november lows. in order to keep the look of a market in some kind of recovery mode, maybe sitting above that is significant what i think is going on here, sara, you know gold

plus how to play the china reopening, why one portfolio manager sees opportunity in alibaba, nvidia. but we start with the tech turmoil. no santa claus rally in sight. nasdaq falling 1.4% yesterday and now down more than 30% on the year and that is on pace to break a three year winning streak with the index's worst performance since 2008 take a look at some of the valuation declines amazon and apple losing more than $800 billion in market cap. alphabet and michrosoft and tesa not far behind these six stocks on the screen plus nvidia, they have lost about 5 it would in combined value, and they are responsible for about half of the entire u.s. market losses which really tells you a lot about this year and the role that big tech has played >> yeah, just the fact that those seven companies all tech companies of course could be responsible for $5 trillion in combined valuation loss really tells the story of how much has changed this year. if you look back at january where we were in january, how things have changed dramatically since the war in ukraine and then the total tech wreck, what

hadn't heard anything in particular ability nvidia.d be profit taking because nvidia had done a little better since coming off its lows in october i want to just move to one positive right now a positive for gaming and semiconductor names. that's china's recentapproval of gaming titles like pokemon unite, creating hope that china's government might be moderating its stance on large tech, morgan. >> we will see kristina partsinevelos, thank you. >> thanks. >>> we've got a lot more "squawk on the street" coming up after the break with all the major averages up modestly right now, led higher by the 5% pop in tesla. don't go anywhere. >>> good wednesday morning welcome to another hour of "squawk on the street. i'm morgan brennan with mike santoli. we are live at the new york stock exchange carl and david have the morning off. just getting a quick check on markets this wednesday morning modestly higher, the dow up about 49 points, the spp up .25%, 3839 and the nasdaq up about .4%. what's leading the gains tesla. other consumer discretionary

nvidia up 40% in october but probably a little exhausted but make the finest chips in the world. deer is my favorite industrial broadcom with a knockout quarter. this is high in semi and boeing is making a comeback air space. we have technology we have ag and two technologies. yes to nvidia up too high and once again, you got to have an economy slowing, you need health care i keep emphasizing that. this time i'm going to say once again we're going to go with j&j for those who don't like eli lilly so i'm giving you play let's go to alexander in michigan, alexander? >> hey, jim, me and my dad love the show i'm alexander from flint, michigan am i diversified coca-cola, gm, walmart, apple and boeing thank you. >> don blake, my brother-in-law is an engineer from michigan they probably know each other. that's probably a stretch. coca-cola, beverage company. mary barry is reinventing gm i'm here apple is technology. boeing we blessed that aerospace. walmart, all right walmart is good. i prefer costco to walmart but i like this of pure diversification. we got beverage. we have auto we ha

liz: and kenny, i know you've liked nvidia as a long-haul-i- day stock. why are you laughing? okay, santa. >> because corpina looked at my notes. liz: he stole your idea. okay i know you have more though >> i do, i do, and i have a couple, certainly ibm is a fan favorite, i love it, microsoft is one that you have to hold for five years but there's one that's really under-the-radar right? a nasdaq name. it's apcx, which is app tech technologies, it's a cloud- based payment system, fintech digital currency. it's a b2b business and it's going to change, continues to change the way we interact and how payment platforms not only between b2b but between consumer s and b2b. liz:apcx is the ticker right? >> apcx. liz: up. there you go it's right there on the screen an $0.85 stock are you kidding me what are we talking about this for? >> that's right because its got huge upside, so just run with me on this one. liz: corpina what am i supposed to say to that? i'll run to you, john, and ask you about the psychology right now with the markets as we head toward the christmas obviously, mon

microsoft, amazon, nvidia leading the way. tech is still a big loser on the session, down 6.25%. transports are taking off today. find out what's behind that when we come back power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities. while an earnings tool helps you plan your trades and stay on top of the market. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq moderate-to-severe eczema. it doesn't care if you have a date, a day off, or a double shift. make your move and get out in front of eczema with steroid-free cibinqo. not an injection, cibinqo is a

liz: you both like nvidia. look at this the dow is now up 404 points and counting. i think it's the polcari-masters effect here real quick here, kenny. when you talk about the yield curve inversion which is a screaming sign of recession between the 10-year and two-year it's so wide and i was looking at status because i'm a nerd. there's never been a soft landing with this degree of inversion ever. what do you say to that? >> it's only getting worse. we're about 80 basis points wide , now two weeks ago they were 25 basis points so the fact that its gotten wider over the last couple weeks suggest to you that the market is thinking that it's going to be a hard landing and it's going to be longer and deeper than what the market was expecting, and so that's why i'm still in that camp that it's a hard landing and i'm still invested but i'm playing it safe and i'm over weighted those names i told you but you have to be concerned because the two and 10 is telling you that it's not only is it coming. i think it's already here, but whether or not it's here or not it's coming

nvidia is ground zero. tim mentioned last night, the stock is right over 70% since the october low. it is now trading close to 15 times risens that is once again expensive it is not to pick on nvidia. there are a lot of stocks that have bounced significantly that still face the same headwinds they does the entire year. >> i always say, it is not a monolith, right. we have names that are still expensive that have come down a lot but they still have a lot to g go and google, to me, that is a very different story than i understood advertising slowing down and that is a very different story than high flyer like an nvidia or -- or any of the igv stocks. >> so do you think if alphabet has corrected for the exposure to advertising for its heavy ties to travel for instance, if we believe that travel is going to pull back, they have a heavy exposure to travel because it was a reopening stock for some time because of the exposure to travel so the reverse is true but that is all -- that is all in there >> i feel like at this point, when you back out the cash, a lot is in there. a really lot is

-based clients like nvidia it's not going to be easy. tsmc will have to deal with language barriers procuring equipment and finding the talent, kelly. >> wow >> yeah. i mean, it's a challenge that intel is also taking on, especially when it comes to the more advanced process technology what about oversupply concerns because these are such advanced chips, is that not an issue just as long as they're able to execute on the plan? >> i guess that could be an issue five years from now, but that means that every single company is going exactly to plan intel, you brought them up they have issued a statement to me about this because tsmc said they were creating the most advanced nodes intel is saying no, we are also creating a three nanometer node as well and we're working on that for 2023. yes, they could create an oversupply, but it's bringing it to the united states, which is the goal the white house thinks that they could pretty much satisfy all the demand here in the united states not sure if that's necessarily the case given how many littl

tesla's growth dwarfs those groups whether it is amazon or meta or nvidia, tesla is the fastest growthup that is where we get excited >> tim, this is a compelling story. if you wanted a blue chip in what you characterize, electric vehicles, tesla has to be it it is the biggest brand name there. what is to say a 2/3 decline in market value isn't enough for them to have a positive story in 2023 if so, the driving headlines will be what, tim, in the news headlines? >> the headlines driving that will be the return to massive sales growth that is what investors have been excited about over the last few years. the other thing we are for getting is the elon musk premium in the stock if his attention turns back to the company, that will excite a certain segment of the market which is nervous over his distraction at twitter and buying into the stock with the hope and excitement for the vision of the future of the car he has been selling. >> george, i'll give the final word to you here if you look at it and we know you have a buy rating on the stock because you're bullish on it what could be the

let's take a look at nasdaq laggards, moderna, lucid, nvidia leagued the declines and at thea is the biggest laggard down eight% and this comes after news that the ev maker will slow production at shanghai factory in january and tesla down 57% in the last three months. you've got eight% and the attention is split at twitter. the two year yield speaking to 4.4% and highest level we've seen in two weeks. now as we take a look at major averages this year, the dow down eight% and the s&p 500 down 19% and nasdaq down 33% and investors are looking for any glimpse of green on the screens and that brings us back to the santa claus rally. this is the time period between christmas and new years. it's produced positive results 78% of the time since 1950 is santa going to deliver this year? let's get to the floor show with trader scott shellady and steven sarge gilfoy. steven, should people be putting their money in right now and santa was able to make his way around the world but will he be coming to wall street? >> i don't have a high degree of confidence and i'm tactically set up for a santa

commerce secretary gina raimondo apple and nvidia are the first two customers. arjun is here on set with more arjun, the u.s. has been vocal about wanting to shore up its own manufacturing and supply of semiconductors to avoid a crisis like we saw during the pandemic. talk about how this new plant falls with that strategy >> on the one hand, they are looking to attract foreign companies to set up shop on u.s. o soil tsmc makes the world's most advanced chips on a huge scale apple and nvidia are customers the second strategy is to hamper chin china's progress that is where you see the tension with what the u.s. is doing and european allies. they talk about cooperation, but u.s. is moving to attract companies with billions of dollars of investment to the u.s. it proves competition to the eu. the export controls on china and specific equipment to china and u.s. persons working in china on chipmaking is stressed across the world with you see asml in europe they cannot service chinese clients and netherlands and asml is the poster child with the tension with the u.s.

nvidia is down 50% which seems not steube. i think there's opportunity there. there is certainly opportunity in consumer staples and healthcare going forward because they will provide some defense in terms of volatility in the marketplace. you have to start to look and you will see, energy stocks, fossil fuel stocks have so outperformed this year, the oil stocks have done really well so for investors to say there's no opportunity, you are not looking in the right place. ashley: you are masterchef so i must ask you what is on the menu for new year's? >> we will make veal, put it on a bed with shallots and parmesan cheese and then take the veal and put it on top with some of the sauce and vegetables and salad and nice red wine. what else do you need? than the coffee cream i gave you as dessert. ashley: i am very hungry already. you should have your own cooking show. you would be fantastic and happy new year to you. >> happy new year to you as well. ashley: never a dull moment with kenny polcari. sam bankman-fried met with the white house and white house aides bef

champion your skin. >>> take a look at nasdaq 100 laggards marvel and nvidia, micron, asml.ause only seven components are in the green. back after a graek break ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq esg is responsible investing. yeah... oh. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential. >>> what's on "mad" tonight? >> doug peterson has done a great job, and ritchie brothers, we're interested in industry that is in carvana they do auctions for cars. >> maybe your ow

>> nvidia had a nice bounce but good inventory issues. we heard that yesterday., big inventory problems allowed the hyper scale inventory built up in the system i think there's goes through and done and is flushed by the first weeks of january and will be in better shape it still may be -- i own it for the charitable trust and did sell some because we don't like the situation where inventory is in control let's go to kate in georgia, kate >> caller: hi, jim recently i saw -- >> hi. >> caller: good to hear your voice. i saw another contributor and he specialized in charts on cnbc and i really respect him and like him matter of fact, he did one on eli lilly matter of fact saying it would break out but i knew it probability because i'm in the investing club. >> perfect. >> caller: recently he did one on gold and i did my research and i looked into it and i decided to go with one of the positions in the bullpen and i want to know how you feel about it how do you feel about barrack gold >> i've liked it and continue to like it. it's got a good yield but the problem is

nvidia, applied materials, advanced micro devices, all the worst performers in the s&p.arnival down 10% reverse in upside yesterday after the ok quarter although the outlook looked cloudy. tesla is down 10% as well. do not want to leave that one out. i want to report that working below some of these key levels is some of -- is quite important. jp morgan has a hedged equity fund. there is a huge call option with a strike price that we blew through. the idea is that a 1% move in the s&p would prompt option dealers to buy or sell stocks to the tune of $2 billion. she says it could increase to $4 billion next week. the upside moves and the downside likely see today will have a lot more impact as we go. nevertheless we typically see higher equities as we head into the holiday trading week. they call it the santa claus rally. it does not seem like we will get that now. the differences you did not want to take on a lot of risk, but you do not want to sit on crack -- cash. you have news trickling through like micron for example. still ahead, the lifeand legacy of guggenheim's in

year, meta, you know, alphabet, alphabet down 20% from the early part of this year for 2023 earnings nvidia down 40%. my point is it's earnings estimates going down that are the bigger problem than yields parts of the market are outperforming. look at semi cap equipment relative to software a stark gap. it's happening in all parts of the market real stuff, capex related areas, machinery in general doing better over virtual assets or less tangible things >> i heard your call out there, mike, on earnings. our next guest is looking to that as well, expecting markets to shift their focus towards earnings in 2023, favoring enterprise and cloud names over consumer check joining me now is wilmington trust's megan schu what is a reasonable price two notable pieces of news in enterprise tech this week, oracle's earnings upside, due to the investment they've been making in cloud and systems, and then m&a, coupa getting snapped up for $8 billion. some people say there's reasonable prices now. what do you say? >> i would agree with some of that i think as we look ahead to the fed meeting in a couple ho

you look at names like nvidia which traded down to 108 i believe on october 21st. i'm probably off by a couple of days subsequently rallied in a month and a half over 70% and now it's given back effectively half that move think about a volatile name like that, and that's so interest rate and market sensitive. that's the environment that we find ourselves in. the so rates going higher, again, my opinion, this environment, is not any sign of growing growth, it's a sign of continued concern on the inflation front. >> here are a couple of stocks we'll talk about them later on in the show. two stocks that sort of fall into the cross hairs of higher interest rates not good, china potential more lockdowns not good either. tesla as well as apple apple in today's session was down another couple percent, dan. >> yeah. this one is about like, mel, the relative outperformance that we had seen of late versus many of its megacap tech peers it seems like there's a lot of investors hanging out. it was easy to do that it wasn't easy on valuations it wasn't easy on the supply chain

. >> well, micron, the chip maker, those shares having a tough year no word from amd ad nvidia could the start of turn around we'll discuss next tech check back in a moment. with ge profile smarter wash technology. more care for your cashmere. more power for your workout gear. this is smarter sensing and dispensing. fully optimized cleaning, no more guessing. getting the best out of everything that goes in. ♪♪ this is smarter cleaning. this is ge profile. >>> one more thing before we go, keep an eye on micron. reporting results from q1, its fiscal y1 in just a few hours. that stock up about almost 2% this morning as analysts expect earnings and revenue below previous guidance. negative free cash flow from the chip maker for the first time in two years. regardless if you look at the year to date on this, not much worse, not any worse really than amd which is down more than 50% year to date, and nvidia which is down just about as much micron warned last month in investor presentation about pricing pressure, though that's perhaps a little bit unusual for somebody to talk about pricing p

. >> nvidia downline at the oakland zoo. the cup issuing the exact behavior they want to say. they are investigating. the orphan met line was found and rescued last week. this year. >> finally tonight, float makers in southern california are getting ready for the rose parade. on the six floats in the parade are self though. meaning they are created by associations corporate sponsors. the cost of supplies like everything else is really increased. in the end, the flow creators say it is all worth it. >> we bring joy to people. that is what is more important to me. >> this is the 134th rose parade. it will be held on monday, january 2 because of the tournament's never on sunday policy. that dates back to 1893 when the festival -- isn't that interesting? ? this tonight with avett is coming up next. ♪ this rental car is so boring to drive. let's be honest. the rent-a-car industry is the definition of boring. and the reason can be found in the name itself. rent - a - car. you don't want a friend. you want the friend. you don't want a job. you want the job. the is always over a. that

nvidia up 6.5% sky works solution also seeing strength in consumer discretionary.d in things like nike, etsy amazon is higher today as well and that is certainly helping. the only sectors that are lower here on the close are energy and communication services that's it from me on "closing bell." overtime with scott wapner >> thank you very much welcome to overtime. you just heard the bells we're just getting started here at the new york stock exchange today. we have important earnings about to hit including lululemon, costco and broadcom. the stock moves i know you want to see eric jackson is going to be here with us today on whether you should buy or sell the tesla slide. which continues. an

tesla, nvidia, apple, amazon, ts getting slammed yet again on concerns about production in china. look at the stock, down more than 9%. we'll talk about that in just a moment with a bullish analyst. >>> also ahead, former macy's ceo terry lundgren joins us to talk about the holiday retail scorecard and his outlook for the consumer in the new year >>> tesla plunging the latest move lower comes as "the wall street journal" reports tesla will extend a production shutdown at its shanghai plant amid rising covid cases in that country. tesla on track for its worst year ever down more than 40% this month the majority of analysts still have a buy rating on the stock, according to fact set. joining us is one of those bullish analysts, george, why are you maintaining a buy on a $275 price target on this stock as it craters? >> hey, sara, happy holidays, thank you for having me. i understand and most participants understand what's happening with tesla stock the data points have been exceedingly negative for several weeks, even several months the latest is that one of the competitors in china

nvidia, micron, qorvo. kelly, they still remain pretty range-bound over the course, as an industry over the course of the last couple weeks. >> dom, thanks come on over, come on over and join us for this next conversation my next guest has controversial picks and we need the chuster to way in sarah mallick is nooufian's cio. sarah, controversial is what i meant in referencing your reit pick is this an area where you think investors should be for 2023 >> did you say reits >> yes. >> we like public reits. if you look at the stocks, down significantly more than they usually are doing downward cycles they've overly priced in what we acknowledge as a rollover in the housing market this is important. oftentimes the stocks will price in what's going on with the fundamentals ahead of time i think public reits look interesting at this point. >> what do you think, dom? >> you mentioned the residential things no doubt real estate is more tried to interest rates than many other industries. when it comes to residential,

check out the slump in semi stocks nvidia and marvel and xp, all deep in the red today. inventories swell as consumers are buying fewer gadgets, slashing production plans amid the weakening demandch it is the glut issue that we've been talking about for sometime. >> this is natural right. every corporation that runs into a supply chain issue both in normal reaction is to overorder. so if you need, you know, obviously some simplistic, if you need three sets, the truth is they've only used four. so if you're ford or gm, you don't want to sit there and have no cars on the lot you over-order the chips and then the next layer of the problem is going to be there is going to be new chips. so everyone already ordered these inferior chips for a computer and you're driving around in a laptop, you wouldn't drive around in a six month old laptop so you have to get the newer chips. this goes from a supply issue and now we're in a glut, we went from drought to glut and i want to goo back to the pandemic low and look at these on a three-year chart, none of them are near the pandemic lo

you've got nvidia, amd i don't know who is going to be in these intel fabs if and when. don't know, call me in five years. >> we talk about a lot of things where there's policy led demand either infrastructure or the chips act is where we find the labor. do you think that's going to be a material question once this thing opens? >> absolutely. so one advantage of doing this in arizona for all the factories who want to build there probably aren't enough -- maybe i should go back to this. 15 years ago if this wall street thing doesn't work out maybe i can find a gig in the fab someplace. arizona they've got already a lot of clusters there, and there's already people there, and there's education. and in ohio you don't have that yet. this is why intel is actually investing money in the ohio educational system to try to train engineers and operators and everything absolutely, i think there's a massive shortage of semiconductor talent like already today i think it's hard to find qualified people. they're going to build all these factories, that is absolutely going to be a criti

let's look at nvidia having a solid day up 2.8% after citigroup predicted the chat bot chat gpt couldbe a pokemon go moment for artificial intelligence. okay, i know pokemon go was really huge for like 10 minutes, so why is that a good thing? the chat bot is dialogue-based a i-capable, this is kind of cool, understanding language and generating written text. nvidia recently released the a 100 hopper core gpu, a microchip which can specifically be used in artificial intelligence like chatgpt, and it's a 3% gain at the moment. goldman sachs has named uber, amazon, and meta as its top pick s for 2023, all three are in the green here. the firm says it sees the most compelling risk reward in the group among the collection of large cap companies that had many of the same narratives in common, so you're looking at uber up half a percent, amazon up 2.5%, meta is getting the biggest jump 4.7%. moderna, the star of the day, surging 21% after biotech, after the biotech-issued promising data about its cancer treatment. the company announced that its experimental melanoma vaccine, imagine that, a

semiconductors they are getting crushed after may micron's results the materials makers down 10%, nvidia down 9% as i mentioned, micron's decline doesn't seem so bad, even in comparison to what some of its peers are doing. carmax is thinking as they missed on earnings and revenue this is a huge watch point for the markets and the economy right now. carmax, it's been a tough stock down 5% again today, and speaking of autos, got to look at tesla down 10% earlier just off those levels right now it's $125 stock. ford and gm, though, are also down about 10% in a week gm's down 11%, ford's down 15%, and tesla is down 20% r. >>> apple says david tepper is leaning short the equity markets right now. he expects more rate hikes and thinks you shouldn't fight the fed. >> ecb and the fed have -- and the boe have future tidings, so yeah, we're going to have a lot more tightenings as i told you once before ten years ago, sometimes they just tell you what they're going to do and you got to believe them i kind of believe them. >> are the markets doubting the fed or underestimating the impact of rate hik

. >>> the president joining the ceos of apple and nvidia to visit a construction site in arizona yesterday. with more companies diversifying their supply chains, what is the read-through for semi stocks of large? let's bring in vivek it's great to have you back. it sounds like you think the most obvious trade is going to be around semi capital equipment but that trade could last for several years. >> yes, thank you, carl. good morning i think when we look at what happened yesterday, i think it's great news for the u.s i think it's very good to have a more diversified supply chain. but when you think about this from the narrow perspective of just the semiconductor industry, it doesn't really change demand, right? who cares whether you are producing these chips as long as you are producing them and the demand really follows the cycle and the product cycles if you look on the supply side and see what taiwan semi plans to do, they were planning to move 1% of the capacity to the u.s. and now move 3 to 4% capacity to the u.s. even a few years from now, 90% plus of leading edge chips will still b

you've got some of these names, marvel technologies down 5%, nvidia lower by 3.5%, asla, they aren'tooking good at all. do you take a shot at them on a day like this? >> well, i tell you what. i'm looking very carefully at doing exactly that, right, when we get off camera. liz: really? >> i already own amd and intel and nvidia and as frustrating as today is going to be i also understand history, so if you look at what you just said, everything from your toaster, refrigerator, car, iphone, it all needs chips and data is just going to be our world for the next 20, 30, 40, 50 years so i'm keen to play that card. liz: mary ellen, when keith says i'm looking to get off the set and at least do some bargain hunting, when you were speaking to the folks at baird and your team as the co-chief investment officer, what is the sense that you are getting and giving when all the teams go out and fan across and speak to clients you should be repeating at the moment going into 2023. >> so most investors own some kind of a balance. the question is what the balance looks like, the best that meets their

and the chip stocks are the biggest gainers this afternoon nvidia, nxp, micron. and activision dipping lower on a report that the ftc could sue microsoft as soon as today activision blizzard down 2%. more on that in a moment. >>> we begin in the bond market today and the dramatic move in treasury yields. the ten-year yield started the year at 1.5% today the yield sits at 3.4 as the concern is now turned back to recession risk. is it possible that rates have now peaked and what does that mean for your investments? rick santelli walks us through the inverted yield curve and the three-month ten-year spread that is at its lowest level since 2001 bob pisani is here, and diana olick joins us on the mortgage impact rick, let's start with you >> yes, you know, the inversions, let's stick with what is happening. the dynamics of what is causing this we have a federal reserve and central banks worldwide trying to push up rates they left them too low for too long, covid money stoked inflation and here we sit. but as they lift and talk so aggressively about short rates, they

also in attendance taiwan semi 's first customers, nvidia ceo and apple ceo tim cook.king to move the iphone production out of china. susan li in with taiwan semi's investments help the tech titan accomplish those goals. >> reporter: we heard from apple ceo tim cook at the tsmc arizona event. it will be the single largest investment ever in the state of arizona. apple is ts mr. c biggest customers. they make most of the chips that to into apple devices. it's a chance to create high-tech american jobs, the jobs of the future, the jobs that could define our future. tsmc 40 billion-dollar investment it will create 10,000 total tech jobs in the state. 4500 direct tsmc hires. the investment reportedly encouraged by apple who wanted to make more high-end chips in the u.s. instead of in asia after the chip shortage cost companies hundreds of billions of dollars in sales. also ongoing disruptions in the china the past few years with the zero covid policies means the world's biggest company trying to fast track the supply chain away from being concentrated in china according to

even nvidia and advanced micro, some of the bigger names are down anywhere from 7 to 9% right now. so keep an eye on those chip stocks and then, of course, one of the big, big movers to the downside that's been highly publicized over the course of the past 12 months has been shares of electric vehicle giant tesla those shares are down 10% right now, over the last couple of years. i'm showing you a two-year chart. you'll have to go all the way back to september of 2020. >> it's down 10% right now >> it's a $1.25 trillion quarter at the highs, now about 75% of its value shed in that time. >> come on over, dom there's so much more to talk about. tesla shares, for those following along, and everybody is at this point, down more than 1 10%. $123 right now the flip side of fed liquidity coming out, maybe. and david tepper was saying these global rate hikes are making him pretty uneasy about stocks listen >> i would probably say i'm leaning short on the equity markets. right now. because i think they're -- you know, i think the upside, downside just doesn't make sense to me, when i have s

case in point, in many cases it was nvidia here nvidia was providing a kind of the chips for processinge their useapn the ai application to process large amounts of video coming in to recognize these faces. a lot of thed face an image recognition was based on these chips. it wasn't just a high end stuff like low-end stuff like hard disk drives because unique huge amounts of storage space to store all that video. they would callre for be used to be stored for 365 days. a lot of these hard disk drives came from companies like seagate and western digital. all and all what we found was we got less supply chain, commercial or financial partnership and there's a ton of links between silicon valley and the chinese communist state. >> what are you describing here is an effective this, some of the readers questions which am also seeing right now so i'm trying to shape them onto a follow-up. what you're describing is both china and u.s. have both sort of claimed the profit motive as a big thing, you know, we need more places to buy our stuff. we didn't know if we started placing everything that o

. >>> wall street is getting bullish on nvidia.ak. the s&p down 1%. every sector lower, but communication services is doing the best today, thanks to 'lbeig bk.d ta wel rhtac what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create >>> dow's down about 360 let's check in on the chip stocks smh, on pace for back-to-back losses and first monthly loss in three as stocks in the space continue to see pressure nvidia, the etf's second largest holding, 10% of the fund, getting top pick by bank of america as they say they see fewer estimate cuts for the sector going forward the stock's also a top pick for evercore and cowen that said, it's been an underperf

nvidia, 55 tesla, 69. that's the end of retail that's the end of retail as we know it.t's the second time within 13 years that retail has been blown out, and they're not coming back and so, it doesn't matter. he can say whatever he wants it's like adam aron can say whatever he wants. it doesn't matter. ryan cohen can say whatever he wants. the enthusiasm is over and when you talk about the stock market now with people, they very quickly change the conversation to anything but the stock market sports, politics >> well, look at what bank of america said this morning about weekly outflows. new records on that front. but does tesla -- we talked about this with mark fields yesterday on closing bell. does it command a premium because of its supply chain agility, lack of a dealer network, no advertising? >> yes, but premium to what? that's the problem i mean, to ford? >> exactly >> yeah, i mean, ford is going to have 50,000 evs they have some really good evs, i think, by this time next year rolling out, and that means that for the first time, you're going to have to see, i bel

and case in point, in many cases it was nvidia. so nvidia was providing a ton of the chips that were processing that were used in the applications to process large amounts of video coming in to recognize these faces. so a lot of the face and image recognition was based on these chips and it wasn't just the high end stuff, like low end stuff, like hard disk drives, because you need huge amounts of storage space to store all that video and often the chinese police would call for video to be stored for 365 days. so a lot of these hard disk drives came from companies like seagate and western digital. so all in all, i mean, what we found was in the not we got less of supply chain, commercial or financial partnership. there was a ton of links between silicon valley and the chinese surveillance state. yeah. so what are you describing here is and i'm taking this some of some of the readers questions which i'm also seeing right now here. and so i'm trying to shape them onto a follow up for what what are you describing as, you know, both chi