Transcripts For CNBC Closing 20240703

Cap names in the green today, including nvidia, back above 900 a share, 920 to be exact. Apple puts a touch lower after be Berkshire Hathaway cut for tax purposes, and strong day for uber, after the Company Holds its annual meeting. Weve given you highlights on this day, it does take us to our talk of the tape, the rebound, and whether you can trust it. Lets ask our panel, dan greenhouse with asset management, stephanie link, and steph and court are both cnbc contributors, everybody at post nine, having a little party over here. Steph, can you trust this bounceback . Its been pretty darn strong from the april intraday lows, s p up 4 , russell 2000 up 6. 5, nasdaq up almost 7. Earnings are coming through better than expected. Growth rate year over year is 7. 1 . If you exclude Bristol Meyers 12 billion charge that was 10 . No one was talking about 10 growth, why, because youre going to see the growth, because the growth is coming through. I know everybodys focused on inflation. I am too. But the growth is better than expected. We are running about two, two and a half, according to some gdp trackers, north of three in the economy, a lot of that is because of the job market, we all talk about that. The three and six month average, nonfarm payroll number, even though it was weaker on friday, its 242,000, the average for the last ten years is 166,000 per month. So, thats good. Thats leading to better wages. Thats leading to a better consumer. And then we can talk about this, scott, in more detail if you like, but manufacturing, we talk about the grid, we talk about green, clean, electrify cation, i will tell you, out of all the Conference Calls i listened to during this earnings season thats the number one theme and the most powerful within all of the sectors in the market. You think the bulls have the upper hand . Once again, that last week cleared some friction out of this market, powell was not nearly as hawkish as i think some people feared hed be, earnings last week came in pretty well, yields are calmer, you look at the bond market today, obviously the twoyear, tenyear are down fairly significantly from the boiling point of early last week. All good again . I agree with a lot of what stephanie got to, but ill add what you just mentioned the rate side of things. Underpinning the rally theres a belief that at least for the moment the rates peaked out, jobs report played into that, the ism number dip played into that that. The commentary coming out of an otherwise good earnings season isnt universally bullish as it has been last couple quarters. Thats put a cap onyields, shortterm, its a lift of the market and if that proves to be accurate, we are sort of getting more contreat data, the rates are done going up, to stephanies point that underpins a broader, more long lasting rally. Do you agree, court . Yeah, i think its great, earnings have been positive, the amount of Companies Beating earnings and by the amount theyre beating are above tenyear averages but thats backwards looking and forwards looking, youre seeing earnings per shares, Corporate Management has been more optimistic than pessimistic, meaning the future is looking positive. Youre continuing to see the consumer is truostrong, the s p now above the 50day moving average, and three quarters of the s p 500 companies are above their 200day moving average, its a broad market momentum, a really positive sign. Steph, youre hanging onto the fact that stronger growth is much more important to you, it sounds like, than inflation, which you admit is still sticky. David solomon, ken griffin talked about that. Ken griffin said during his presentation that the fed is either going to cut in september, and if they dont do it in september, theyre going to do it in december. For some, thats enough. That as long as you know a cut is coming, at some point, and the economys as strong as its remaining, then thats good. I dont think were going to see a cut this year. At all . No, not at all. Weve talked about this for the last, say, four or five weeks, ive been thinking that. I dont think inflation is going to get to the 2 3k9 level, or , the reason is not because the u. S. Growth is strong and above trend but we have Global Growth around the world thats stronger than expected. We saw 5. 5 growth in china gdp, the sequential analyzed number in china for gdp is 6. 6 . Intra7 . Japan, low single dinlts, if increasing estimate. Ill come back to you in a second. I have news around boeing. Phil lebeau has that story for us. Phil, what did we learn . Reason its under pressure, the faa is now looking into whether or not boeing employees may have falsified some records regarding inspections of the 787 dreamliner. According to the article boeing did notify the faa that some of the entries may by employees in april, or they notified the faa in april that some entries for some inspections may not be complete. Still waiting to get an update from the faa regarding this look into whats happening with inspections, with the dreamliner, keep in mind the faa has been working with boeing in terms of certifying these aircraft, once theyre finished, doing inspections on those aircraft, still unclear, though, according to this article, what were talking about here. Are we talking about a part of the process that the faa is not involved in, are we talk about, perhaps, documentation that was just not done correctly. Still a number of questions here but no doubt thats the reason greater pressure on shares of boeing down more than 2 3k9. Phil, i appreciate that reporting. Thank you very much. Thats phil lebeau. Stephanie link ill come back to you on the fact that boeing, you continue you have defended the position that you have in the stock, based on the duopoly aspect, thinking its theyll get past a lot of this, its more than noise too. Its more than noise. Theres been some real fundamental missteps within this company over the last year, at least. Yeah, id much rather be talking about the growth around the world, thats better than expected than another day of boeing. The fact that negative news that comes out, the stock continues to fall on negative news. When the stock stops going down on the bad news thats when you know its around the bottoming process. I do think last week was a big deal, the 10 billion debt offering, eight times oversubscribed, very important, thats bridging the Free Cash Flow gap. We know theyre actually going to or they just reported a negative 3. 9 billion. Theyre going to lose Free Cash Flow in this quarter as well. I think youre going to see eventual improvement. Calhoun is gone, hes a lame duck. Waiting for the ceo, thats your catalyst. And thats one of the reasons im sticking with it. Along with what you mentioned in terms of the duopoly. Their backlog, nine years worth of backlog, its valued at almost 500 billion. People want this stuff, theyve got to just get it out. Obviously, in much better quality and much better safety. I get all that. But the stocks already down 32 year to date. Its discounting a lot of bad news. You continue to bet pretty heavily on industrials and this conversation were having about economic growth, higher inflation, rates higher for longer, how long the economy can hang in there, a lot of talk about mega cap tech, you remain focused on the industrial trade, eaton, boeing, down the list, theres others. Mainly aviation, ge, and also this electrify cation, this grid repair we havent touched in over 50 years. Were just maintaining, not actually improving it and theyre going to have to do that. When you have a company Like Quanta Services ceo, talking about the amount of power needed to build out data center for evs and Everything Else, hes quote unquote, said it was mind boggling the amount of demand. Eaton said the same thing, their orders are up huge. These stocks are up a lot on this theme, but i still think were in early innings. What do we do, though, how do we square the cyclical economy trade if we want to umbrella it like that with comments from barken today, the richmond fed president , still talking about long and variable lags in the economy. These are his words. Take the edge off demand and that tightening is eventually going to slow the economy further. Well, that might certainly happen, we might see a slowing down. That would be normal given that weve raised Interest Rates as much as we have. However, its all this fiscal policies that have been put in place, nine trillion dollars worth over the last five years, thats actually more than offsetting the higher rates. Eventually we may slow scott, but i do think theres a lot of pent up demand andi look at the secular stories out there. Thats why i look at electrification, thats a theme i feel confident in. I believe the consumer will hang in there, even if we slow down. To build off what stephanie just said, the theme shes talks about are indeed secular, the grid not talking about that. I agree with you about that because of a. I. Im talking about other direct economic plays that have nothing to do with the grid relative to a. I. , more pure industrial type stocks or other things that are more directly tied to the economy that, you know, in a late cycle economy, and still talking about long and variable lags, like barken is, might not necessarily work as well. I would push back on the idea that what were talking about is Interest Rate sensitive or late cycle. The grid is a secular theme that will play out a while. The building of data centers is every bit as industrial policy as building airports and roads, et cetera. Just because its not a new locomotive, lets say, or new rail tracks doesnt mean its not industrial. That theme, building out of the data center is a secular theme thats insensitive right now and is as every bit as industrial as Everything Else. Thats incredibly powerful for the economy, not because of the data center but the ancillary effects we know its going to spiral throughout the economy. If you like home depot, and you like strong consumer plays, those are the types of things that may be more at risk in a slowing economy and rates that still remain high, i mean, lets be honest, Mortgage Rates are still high, even though rates have started to come down a smidge. 100 . And we might have a bumpy road this career but for the next ten years that also is a secular theme. Were 5 million homes short in this country, you talk to any home builder, we all have, they have theyve underproduced for 13 14 years, scott. You have 5 million millennials, that are First Time Buyers, yes, i get it, its expensive to buy a home and rates are a big deal but i mean, you talk to so many people out there, we have been able to survive with a six, seven, eight percent 30 year fixed and actually existing home sales might struggle because you have so many people, like 80 of the population that has a mortgage under 3 . Thats the difference. But i think new home sales, and the First Time Buyers are going to deliver, and by the way, no matter what your mortgage is, youre constantly putting stuff and buying stuff for inside the home, to the Home Improvement theme. Driving the point home, dont take our word for it, the builders themselves. Thats right. Are saying its not the level of rates that have potentially been a problem, its the shift higher. Yes. Whenever rates go up, demand slows a little bit, traffic slows a little bit, when they start coming back down everyone comes out of the woodwork. That goes to the argument, when some make the argument, well, you know, stocks have traditionally and his corically done well, Interest Rates have not exactly been the biggest burden for stock returns over a period of time and the flipside of that is the same argument, from zero to that level, in such a short and fast amount of time, thats where the impact comes in. Its not the level, its how fast you get to the level. And during that adjustment the stock market fell 27 , credit spreads hit 5, 600 and we did have the adjustment where i and many other people were wrong two years ago thinking a downturn would result. It did not. No. Just look what the stocks did last year, some up 40, 50, 60 in the face of rates going up as high as they did. Court, what do you like here . What parts of the market . Mine, were continuing to look at some of the underrallied areas of the market. A lot of clients dont realize energy has been our best performer this year, talk about that electrifying, thats outperforming growth, continuing the look at the sectors and small caps, broadening is likely going to continue. I think just to hitton your point here, yes we have rates higher, the reason the economy can continue to keep going is that 5 fed fund rate isnt the whole picture. When out of 60 to 80 of people with mortgages under 4 and you have baby boomers, a lot of money, 8 trillion, baby boomers have, 4 trillion in 5 earning money, sustaining that nonlabor growth rate, which is likely going to continue the strengthening of the consumer. Moneys gone back into mega caps, too, last week, and earnings pretty much told you exactly why the money continues to flow there, is that trade back on in full effect . We showed you nvidia, and we can throw it up again on an interday basis, back above the stock got 750, and now above 900 again. I dont think but you used the word trade. I would push back on that as well. This is another secular theme, again, weve made these points indefinitely on the network, these are each 20 different companies, not just one company, theyre the center of whats going on, the capex expenditure trend. That doesnt mean the stock cant go from 920 to 750. Thats volatility in the types of stocks, doesnt mean the underlying credit worthiness are at risk. No, but its it does sort of speak to the way that those trades went, you know, absolutely crazy, and then cooled off a bit. Sure. And you had some questioning as to whether they needed to cool off more if multiples needed to come in a little bit and here we are, weve had a pretty solid rebound since those companies started reporting. This one doesnt report until the 22 7bd. We have a little bit of time. An old friend of mine said, sometimes stocks go up, sometimes stocks go down. Is that the kind of insight you deliver on . You paid big money to hear insights such as that. In reality, all its telling you is that there are theres a fundamental reason to own the names, secular uptrend, earnings continue to grow at multiples of the broader market, they demand premium valuation. Et cetera. Until that theme is challenged theres no reason on balance the stocks shouldnt keep going up and to make the point for the millionth time, valuation is not particularly demanding for most of those names. Is that how you see that too . Yeah, i think ultimately it is going to come down to the valuation and the earnings, right, i mean were getting past this weird where inflation is the big concern. If we have the fed come out and they say, okay, pretty much took a raising of rates off the table, now investors are putting that aside and thats where they are starting to focus on valuation, and fundamentals, now some of your big mega cap sevens, those are still getting pretty expensive, thats where people are starting to look into other areas of the markets and thats going to continue. What if stephs right and the idea, she doesnt think we get any rate cuts, are we cool, do you think the market would be fine with no rate cuts . I dont think you need the rate cuts. Thats the more important thing. If the economy continues on good footing, the consumer is strong, we can maintain this level of a good economy, even when rates are higher. Thats when people started to get worried about, thats pretty much been taken off the table. As long as the next cut is eventually down, thats whats more important. Of course we dont the word need is like a loaded word, i think, when we discuss the market. Do we need a rate cut . No. Well, no, the economy is good. Do multiples and expanding multiples need a rate cut . Maybe. I dont know. To be justified. Do you actually think one or two or even three rate cuts are going to do anything to the overall economy . Its tiny. Doesnt it get harder. From zero to 550 in 18 months. The overall market multiple if rates remain higher for longer. Yes, but i think it goes back to more Long Duration assets, growth assets, part of technology, certainly will get hit and then at the same time you have some of these shorter end cycle stock sectors, you have some more of these value oriented sectors, courtney was just talking about energy, its financials, parts of industrials we talked about, materials, parts of discretionary. The reason were seeing a broadening, scott, is because the earnings are coming in just as good in these other sectors as youve seen in technology. Its not like, you know, small cap earnings have been not talking about small cap. Im not talking about small cap. The sectors i just talked about, i had industrials, go back to that, right, some are reporting 20, 30 Earnings Growth, ive got orders coming out of of eaton up 27 . Thats huge. The visibility that that carries. Same thing with energy. And they still have the tough compares year over year. I actually think that sector is poised to rise higher. Im double the benchmark. I see real value there. Its the earnings picture thats more important. If they can deliver, i think those stocks can actually participate along with tech. And we had rising rates and elevated rates all of last year, what was the single biggest explanatory variable, it was expanding multiples. No limit on stock price growth last year because rates were high and there appears thus far no limiting principle on stock price appreciation in the short term because the rates are going to stay high. Sure. But, if the economy is going to slow even a little bit then well get rate cuts. And rates are going to remain higher for longer, which they obviously are, that at some point the multiple might be challenged by all of that. First of all, yes, thats probably right. But listen, i operate in a quarterly and an annual basis, and im worried about here and now, and here and now the economy is doing fine, earnings doing fine, the themes weve talked about at this table are doing fine, rates havent been a prohibitive variable, stock market is biased to the upside, especially with a fed that by all accounts is screaming they want to cut rates. Justified or not. I wouldnt disagree with any of that. Thats why im here. See, it took 20 minutes for that insight to be dropped. I appreciate that. Dan greenhouse, courtney garcia, and stephanie lane, thanks, everybody. Thank you. And back to Kristina Partsinevelos, biggest names in the close. Look at coin base right now, b keep growing from here, although they are keeping an underperform rating on the crypto exchange, pumping up the price target from 179 to 204 a share, and you can see the stock is up about 1. 5 . Optimism spreading to other crypto brokers like marathon digital, moving way higher, marathon up 16. 5 . Meanwhile, shares of tyson food moving in the opposite direction, their worst daily drop in the last year, shares down almost 7 . The meat processor warned inflation pressures have created a more cautious price sensitive consumer and thats resulting in a drop in private label sales, specifically to lower income households, and thats why it added to lower guidance. For more on the Consumer Shopping trends and tysons latest earning reports, check out an interview with the cfo of tyson at 4 00 p. M. Eastern. All right. Thank you very much. Just getting started. Up next, running of the bulls, carson groups ryan detrick is back, the catalyst he says will drive that next leg higher. Were live at the new york stock exchange, the bell is back after this. At pgim, finding opportunity in fixed income today, helps secure tomorrow. Our timetested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. Pgim investments. Shaping tomorrow today. Hey you, with the small business. Whoa. Youve got all kinds of bright ideas, that your customers need to know about. Constant contact makes it easy. With everything from managing your social posts, and events, to email and sms marketing. Constant contact delivers all the tools you need to help your business grow. Get started today at constantcontact. Com constant contact. Helping the small stand tall. Your shipping manager left to find themself. leaving you lost. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire and theyre all coming . Matchthose who are stillption. With us, yes. Grandpa whats this . Your wings. Light em up gentlemen, its a beautiful. Day to fly. Were back, stocks extending fridays rally are momentum names leading the charge and our next guest says we are laying the groundwork for an even bigger summer rally. Bringing in carson group chief Market Strategist ryan detrick. Glad to see you. Good to see you. Are you bullish stocks from here, how do you see things . We are. What you just talked about before i came on. Earnings are strong, Profit Margins also have been significantly increasing, kind of against what a lot of people expected. Also capex, expenditures hitting alltime records, earnings and other two things, its hard not to be bullish. Weve been overweight equity since december 2022. A lot of people didnt like that call but it worked out. Right now, we had that 5. 5 correction last month, we think that was enough to bring the fear. The vix spiked above 20 rks a lot of outflows coming in and a lot of fear, even though it was only 5 . A lot of other stocks were down more. And now here we are, may is off to a good start and in an election year. Seasonality, dont blindly invest, but you tend to get a lot of strength in the summer of an election year. This year is playing out like that again, well have a good summer rally in an election year. Im glad you referenced the 5 pullback we had in april. Some would look at that and say its not enough, at least traditionally, to, you know, shake out some things that needed to be shaken out before you can, you know, refresh. Now, the market may be proving that incorrect because its been a pretty strong stepback as i said at the top of the show, and you think its believable based on earnings good enough, economy is strong enough, and rate cuts eventually coming . Yeah, you add it all up, we do. Stocks and s p, above 20day moving average at the middle of april lows and its less than 20 10 . Thats got washout material. We had the vix, last time we saw Something Like that was march of last year. Think about it, there was a lot of fear even though it was only 5. 5 correction, mild correction, i should say, from the point of view. And one other thing, guests have pointed this out before, ill mention it again, may is higher than nine of the last ten years, sell in may, go away, worst six months higher eight of the last ten years. So, again, history repeating itself but often rhymes, mark twain liked to use that, the washout, the economy is strong, fed is dovish, but overall were optimistic. Weve been joef weoverweight, a still are. Dovish, to a point. Putting it this way, im not going to suggest theyre screaming dovish, but theres certainly a chair himself and at the end of the day its all ma thaerts the chair himself last week was not as hawkish as some had feared, i dont know that i would go as far as to say theyre all that dovish. I mean, theyre certainly not cutting rates like we thought they once would and, you know, many suggest whether its ken griffin or otherwise that, okay, we may get one, maybe not september, maybe september or december, but were not getting nearly what we thought. No, youre right, good pushback there, because, again, it wasnt as hawkish, good way to put it. We look at inflation, up over 9 and then down to 3 on the cpi and weve hit this little blip, if you will, and were optimistic, scott inflation will continue to improve. Wages are a big part of thachlt the eci is scaring everybody, and then we saw the positive wage growth, adp saw wage growth across the board and the supply chains are still improving overall. So, bottom line is this, a couple months ago everyone said six to seven cuts, market said, and then two weeks ago were saying, listen, maybe no cuts, maybe even ahike. We push back against that for the first time in two years, we added some treasury, not a lot. A little bit about three weeks ago on models rereone for advisers, its not like were big bond bulls, we thought that pendulum swung way too far and were optimistic with the strong productivity, last weeks number was a little weak, but when you have strong productivity like we think well continue to see, higher wages, cover for the fed to cut and the economy does better when you have strong productivity. Optimistic two cuts, put a bow on it. If we get the summer rally that you expect, what takes us there, what leads us during it . Weve been overweight cyclicals and last month added more to industrials and financials, those areas, but i know a lot of people come on, signal small caps, dirty word sometimes, small caps and midcaps, if we see more pullback in yields like we have, look whats happened, we can that is one of those areas thats so underloved and so underappreciated, we could see a broadening out, we need inflation to come back, the broadening out of this bull market and we are slightly overweight, at least midcaps and a little bit of small caps in the models reone. Its possible before this year is over, that youre going to see some good outperformance there. Do you prefer those areas over mega cap tech which by the way reminded everybody for the most part over the last eight days or so, why those stocks have been preferred. Youre right, and i said, dont forget about us, didnt they say that . Its all relative skmt models we run but we have a slight overweight to midcaps and to cap small caps versus even weight. But by no means are webearish large cap technology. More alpha will come from those. One final comment, whats cheap about the market. Tech is pricey. Rest expensive. Small and midcaps really are cheap, relative to other areas, i get it, things are cheap for a reason sometimes. Right, thats exactly what i was going to say, right, thats what some would say. I knew you were. Youre anticipatory, good. How do you respond to that, though . Yeah, no, youre right, bottom line, good discussion earlier, i think stephanie pointed this out, i think it was stephanie, but again its all about the earnings, not great from small caps, midcap is better, if you get better inflation data, not saying i dont care about the earnings but its those areas that will do much, much better, and a lot of Earnings Growth coming out in 2025 and 2026. Its a long way away but thats where a lot of growth and revenue will come from small and mids, and thinking about from a Strategic Point of view. Ryan, leave it there, appreciate your time very much. Thank you. See you soon. Ryan detrick. The company set to report earnings tomorrow for the bell, shares outperforming past three months, up 17 . Now, the New York Times as jim stuart is standing by, breaking down what investors really need to watch for ahead of that. Were back after this. So this is pickleball . Its basically tennis for babies, but for adults. It should be called wiffle tennis. Pickle yeah, aw whoo these guys are intense. We got nothing to worry about. With e trade from Morgan Stanley, were ready for whatever gets served up. Dude, you gotta work on your trash talk. Id rather work on saving for retirement. Or college, since you like to get schooled. Thats a pretty good burn, right . Got him. Good game. Thanks for coming to our clinic, first ones free. Back with shares of disney. Investors keeping a close eye on streeping ad sales, and whether disney can hit targets for profitability by the end of the year. Joining me, jim stuart of the New York Times, also a cnbc contributor, and wrote the book disney wars, we were just talking about all roads disney, lead back to you. Thank you. Where does the road for disney go postpeltz fight . Well, one point i would make is peltz is still hovering out there. I mean, this proxy fight is over, but hes still in the stock, and he says that hes closely monitoring the situation, which by the way i think is good for disney shareholders, keeps the pressure on a little bit to deliver the cost cuts that disney has said its going to deliver. But that aside, first start with streaming, thats where the main interest is going to be here, whether theyre on target to turn a profit by the end of the year. And, you know, my sense is, they should be able to make money at this. I mean, theyve got, if you count hulu, theyre up to 200 million subscribers and we see it, netflix has 270 which is better but netflix that has healthy margins, why doesnt disney . Theyve either got to lower costs or boost revenue. On the cost side one thing ill be looking for is, they still are benefiting from the strikes and the fact that they were forced to stop spending. And everybody in hollywood is telling me theyve been very slow to start again, all the legacy. Everybody. Pretty much everybody. Not just a disney problem. Not just a disney issue. But i think in the strikes they discovered, maybe we dont have to spend that many billions on new content. If they could actually slim that down and also cut some other costs theyre going to see some significant improvement on the cost side. What about the content issue itself, whether they have good enough content going forward, beyond the legacy content, if you will, to do what you suggest needs to happen . Thats a huge issue. I mean, there are two issues here. The quality of the content and the quantity of the content. And, you know, iger has been saying, and his fellow chief executives have also been saying, something ive heard for decades, which is were going to improve the content, only going to make hits. Well, if only everybody would love to believe that was going to be true. Its like im only going to write best sellers. Well would nobody has the magic formula for that. I mean, and disney had a good thing going there in the movie business for a while with the marvel stuff, the franchises but suddenly, you know, superheroes have been faltering. Why is that . These things go on decades long cycles, im old enough to remember when the western was the king of entertainment and that has never really come back. Is there superhero fatigue . Maybe, these things are long and cyclical but maybe that has played itself out. Theyre going to have find a new franchise there. Thats going to be challenging. The same thing with quantity. Netflix is still spending, and key to the netflix success has always been when one thing ends theyve got more for you to look at. Others have been struggling to keep that pipeline full, especially first covid and now is strikes. I hatd a shareholder of disney, the issue of succession, said i dont care about that, i care about these other issues more. How should investors, we, think about the issue of succession at disney since it went so terribly wrong last time . Thats why you do need to be concerned about that. I, myself, have been in the school that, well, maybe it doesnt matter who the chief executive is, especially if theyve got trends going in a good direction but 1udly you get a company like this, and an industry, going through, you know, radical transformation, i think who the ceo is hugely matters, and i think investors should be following this closely. I think his point was like, you know, well iger is the ceo now, and is going to be for a while here, ill worry about that again when i have to worry about that. But these more structural issues, perhaps, are more relevant right now to the shareholder base. Well, thats probably true. I mean, you know, look, igers at the helm now. He will be there a while. Dont have to worry about the radical upheaval. But these structural issues are huge. This is like one of the biggest Business Transformations ive witnessed in my now long career. And, its very unclear how this is all going to shake out, weve got the draw maria at paramount going on, clearly the status quo with the industry collectively losing billions of dollars a quarter is not sustainable. There has to be some major transitions but i do think disney should be one of the producers able to reach scale here and it is a scale business and they should be, in my view, able to make money. You want to give me a last thought regarding paramount and what you how youre gaming the finish out here . Its incredible, even Warren Buffett like bailed out and lost a huge amount of money on this, showing even when you think something is incredibly cheaper, it can get cheaper, paramount has the opposite problem, it does not have scale in its existing configuration, it has to either merge with somebody, its going to help it get there, or its going to have to get out of the streaming business, in my view, which is huge, going to be a huge loss. Is there a deal that makes better sense to you of the two that are being discussed . Well, theres no question, that to merge with an existing competitor, a horizontal merger, like sony, is going to offer competitive advantages no stand alone buyer can match. On the face of it that looks better. On the other hand, theyve got to offer Sherry Redstone a premium, shes the controlling shareholder. She deserves a premium. Has more valuable shares and they have not yet tipped their hand. I still dont know how real this bid is or how serious it is until they unveil how theyre going to break down that price for the share, the controlling shareholders and everyone else. Another story you know better than everybody. Jim stuart, thank you. Thank you. We appreciate skrg you here, thats jim stuart of the New York Times, and were tracking the biggest movers in the close, Kristina Partsinevelos has that. Premium travelers the reason this airline should climb higher, ill reveal the name and much more after this short break. This is our future, ma. Godaddy airo. Creates a logo, website, even social posts. In minutes how . A. I. impressed ay i like it who wants to come see the future . get your Business Online in minutes with godaddy airo do you have a Life Insurance policy you no longer need . Now you can sell your policy even a term policy for an immediate cash payment. Call Coventry Direct to learn more. We thought we had planned carefully for our retirement. But we quickly realized we needed a way to supplement our income. Our friend sold their policy to help pay their medical bills, and that got me thinking. Maybe selling our policy could help with our retirement. Im skeptical, so i did some research and called Coventry Direct. They explained Life Insurance is a valuable asset that can be sold. We learned we could sell all of our policy, or keep part of it with no future payments. Who knew . We sold our policy. Now we can relax and enjoy our retirement as we had planned. If you have 100,000 or more of Life Insurance, you may qualify to sell your policy. Dont cancel or let your policy lapse without finding out what its worth. Visit coventrydirect. Com to find out if your policy qualifies. Or call the number on your screen. Coventry direct, redefining insurance. 15 out from the closing bell, back to kristina now for the stocks shes watching. Whats on the radar . Top s p 500 stock, American Airlines, bern stein only hiked up by 1, enough to climb 6 . Growing premium revenues thanks to travelers who want the extra perks like more leg room, early boarding and theyre spending on that. Those premium dollars contribute over 60 of total revenues for American Airlines so definitely a big driver. Palantir shares are up 8 ahead of earnings, the Options Market is implying a 14 swing in the stock, specifically this Data Analytics software name, the focus on its a. I. Platform, calling it a. I. Pedes, just a. I. Software, the hope it will offset any weakness in the government business. Scott . We will see you in a bit. Chri Kristina Partsinevelos is going to join you go in the market zone. Semitrades higher, we have Details Behind that, guess whos going to do that . Were back on the bell after this. At corient, Wealth Management begins and ends with you. We believe the more personal the solution, the more powerful the result. We never lose focus on the life you want to build. Its time for Wealth Solutions as sophisticated as you are. Its time for corient. She always thinks of others first. But for one day, its all about her. Celebrate mom and all she does with thoughtful mothers day gifts from weathertech. Treat her to lasermeasured Weathertech Floorliners and cargo liner to keep her vehicle looking like new. Keep moms phone in reach with handsfree viewing with cupfone. She can feel like shes on cloud 9 with the antifatigue comfortmat. Or pick a gift card and let her choose. Find these American Made gifts mom will appreciate all year long at wt. Com. Happy mothers day from weathertech. Warren buffetts Berkshire Hathaway, revealing the Company Stock portfolio is largely concentrated in five stocks, for the names and the full story, head to cnbc. Com propick. Up next, ev maker reporting top of the hour, the stock losing its spark and falling. There it is. Oh, well close to 15 over the last three months, of course its up 9 today. Well tell you more in the market zone next. [crowd chanting] they ignored your potential, and mocked your ambition. But its not the critic who counts. With every swing and block, your game plan never changed. Some still call it luck. Let them. Because you know what its always been. Inevitable. Power e trades easytouse tools, like dynamic charting and riskreward analysis, help make trading feel effortless. And its customizable scans with social sentiment help you find and unlock opportunities in the market. E trade from Morgan Stanley with powerful, easytouse tools, power e trade makes complex trading easier. React to fastmoving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you wont miss an opportunity. E trade from Morgan Stanley were in the closing bell market zone, cnbcs senior markets commentator mike santoli breaking down the crucial moments of this trading day. Plus, Kristina Partsinevelos sharing the chip space today, and phil lebeau. Mike, ill come to you, you heard ryan detrick, the rally back is real. 5 , fine, wasnt as sharp as some expected, its okay. By ryans lights we did have a little bit more of a purge at the lows recently than really was visible by some other measures, its a total judgment call. Market, i see why its continuing to further relax today, last week was an Obstacle Course of catalysts. We got through them successfully. Thats true. Now we have almost ten days until cpi, you know, you have nvidia earnings and open field here where you can see the market can kind of drift and do what it wants and take its cue from treasuries. Its all to the good. I would say, all were doing is kind of lifting toward the upper end of what now looks like a sixweek trading range but, you know, its not doing anything wrong, surmounted the 50day average. Banks and breadth to me, was important. Obstacle course but a big alligator pit but didnt fall into it. Thats powell. We thought maybe he was more hawkish and by him not being it it allowed the rally to get back into business and also put the cool on the rates market, and thats, though, overriding story if you look at the russell, and financials for example. Up 6 in four trading days at this point, and market breath continues to be positive. By the way, tech round up to the s p peaked three months ago. Its not happening because the same old stocks are adding a ton of market cap and Everything Else is sitting there. Chips moving big today, Kristina Partsinevelos, what should we be watching . Lets start with micron, they raised their price target to 150 a share. They say memory prices are rising faster than expected, thanks to strong a. I. Demand. They also believe the stocks recent 3 pullback in the last month is a good buying opportunity, youre seeing shares up to date over almost 5 . But the chip sector overall is seeing a resurgence over the last two weeks, we can show that by the good brarometers, because of a rotation, back into generative a. I. Winners, given all that capex spending thats promised by the likes of microsoft, google, meta, et cetera, after the bell scott we do look forward to analog chip maker microchip, saying this is a cycle rider, never heard that before, but i like it, cycle rider, if you think the worst is behind us for chip demand, then this is a good play. Bank of america bets any positive results could create a stock breakout. However, they prefer auto exposed names like nxpi, and see its up way more than microchip in the last year. Kristina partsinevelos, thank you. To phil lebeau with what to watch for when lucid reports. Mainly guidance the main thing. We care about q1 results and this question, have they been able to cut their losses . Its a company thats struggled to do that. What did they say about saudi investments . Announced an investment in q1, anything further to say and then theres the question of 2024 guidance. They have a habit of changing their guidance a little bit when they do their quarterly announcements. Remember, as you take a look at shares of lucid, that their guidance right now is to build 9,000 vehicles this year. Do they stick to that . Well find out when they report their numbers in just a little bit and dont forget, scott, coming up during overtime we will be talking exclusively with the ceo of lucid about where they are, especially at a time when so many people are questioning demand for evs, fw especially high priced evs. Phil lebeau, less than two minutes, 90 seconds. Mike, i saw a social media post reporter saying ben here all day, eight hours, not a lot of pessimism, and maybe thats kind of rare because when you go to these big conferences, a lot of times billionaires and otherwise, you get a lot of pessimists, caution generally speaking. A lot of people for whom, you know, they have a lot and theyre afraid of losing it, and, also, you know, its still at its core kind of a bond owners forum, and they are kind of warriors. I do think theres some comfort in how the overall mechanics of the economy have just not really flagged at all. So youre able to lean on that, and you know the economic surprise index, theres been attention its slipped negative only because estimates for growth have come up so much. Were falling slightly short versus where we were, im not at the point saying everyone thinks everythings great. Not a lot of upside in terms of new highs but the volatility index is down back below 14, all of the kind of risk models tell you, you can own a little bit more exposure in that environment. No ones going out of their way to be all negative. Thats right. And looking to go out with a 1 gain on the s p here with a little bit of late action. So thats an interesting close for this day. Nicely green across the board. Russell takes the lead over the nasdaq by just a little. See you on the other side tomorrow. Stocks jumping a bit to start the week with nasdaq and small caps in the lead. Thats the score card. Welcome to closing bell skroefr time. It is good to be back, ahead of todays ahead on todays show weve got results from palantil, motorcycle ro chip, simon property, lucid and many more, all the numbers. And an interview with lucids ceo. And potential red flag for the consumer, tyson worst day in months after warning about inflation eating into sales