Continues to look dicey ahead of critical Earnings Report next week well discuss what is riding on that during this final stretch of trading elsewhere, chevron, a huge drag on the dow today after its earnings and concerns about its planned deal with hess j j, amgen, look at them also weak them, weak spots, de health care putting in a tough week we are watching jpmorgan, too, you heard the news yet again a moment ago, down near 4 jamie dimon will share some shares for the first time as that companys ceo it does take us to our talk of the tape what might the week ahead bring with apple on deck the fed meeting in focus, and probably so much more. Lets ask the chief Investment Officer for new edge wealth with me here, good to see you welcome back as i said, an ugly end to a pretty rough week, what do you make of it it would have been nice to see a healthier bounce, mostly coming out of yesterday, where a lot of the indices got shortterm oversold. We saw the rsi hit oversold levels some of the measures looked a little bit washed out to see even more selling into that, it just suggests that there is more digestion to come and the reality is, is that in the near term, weve been setting up this series of lower highs and lower lows, and that isnt showing any signs of turning yet. Are you giving up on the idea that we will have a late year rally . Or is it too soon to do that i think it is too soon to give up but the lower you start the rally, the less likely you that get back to the prior highs in july and much more room to go but the reality is that weve seen these bounces, and clearly, after a day like today, we could see another bounce like we have in early october, but theyve been rather tepid, so i think were still in the mode of, you have to judge the bounce as it comes. What do you make of what happened in tech this week the biggest question going in, along with where rates were. A big part of the thought is rates can remain a little bit elevated, as long as mega cap comes through and delivers and we find, it and we end the week not really feeling great about where mega cap is and rates are still elevated so where does that leave us compared to the rest of the market, tech is holding up okay. On a day like today, we see that tech is almost back near its relative high versus the s p, which is surprising given the rates backdrop we think one of the reasons this is happening is people dont want to sell their tech, because theyre probably sitting on big gains this year. So you may be less likely to take gains into the end of the year, maybe waiting until 2024 to do that. Although there is a view, and i mean will is action, not just a view, ive talked to some investors, whether on half time or elsewhere buying the dip. Ive seen it alphabet sells down hard. Steve weiss, hes not real positive on the market, but he buys some of these mega caps, too. On the dip meta, microsoft and others are doing the same. Yes, theyre great companies. With actual earnings revisions going higher compared to the rest of the market where were starting to see some earnings revisions turn lower. And the biggest question going into 2024 is you have a name like amazon, which has had earnings go up 350 this year, and that slows to 30 next year. What does that Second Derivative slowdown mean for the performance of the stock but at the end of the day, these are great companies, valuations are far more reasonable today, than they were back in july, and which is likely why some people are saying it is a good time to step in. A lot of the commentary over the last few weeks, utilities, it is a total disaster, staple stocks, not doing anything, and obviously, we have a little sign of life now, because the market is feeling a little upset. Is that what it is, a ploemts, or something to build on, do you think, for those areas were technically on down trends on absolute and relative basis for utilities and staples. Were seeing a bounce but we still need to see evidence that there is a sustained turn in relative performance if that happens, and if utilities and staples start outperforming the market, thats a sign that growth fears could be coming back and one of the questions were asking ourselves is are we at peak growth look at the gdp from this week 4. 9 can it get any better than that . And is that maybe what utilities are sniffing out if i feel like i need to play a little defense where do i do it bonds is that the most obvious choice. They still are super cheap relative to where stocks are if you really want to play defense, youre playing bonds within the shorter end of the curve. Because you still have the risk within bonds that yields could move higher on things outside of just the economic cycle. Thats the supply and demand factor of what were seeing in treasuries that is impacting the long end of the curve. Tlt continues to struggle. And yet you still have big huge inflows into long treasuries so people are trying to catch this bottom. It hasnt worked yet if youre playing ultra defensive, that cash is likely the best place to do it. Our, we would argue that there are a lot of stocks that are now trading at extremely attractive valuations, look at the equal weight s p 500, just 5 above its october 2022 lows. So youre already seeing that washout in valuations, in large parts of the market, that still really have good fundamentals, even if we see growth start to slow a little bit. Whats the most attractive, cheap enough part of the market that you see time to buy small caps, for example, or not . Got to be careful with small caps because it is all about the Balance Sheet. A lot of small caps have really ugly Balance Sheets because they have floating rate debt and a lot of debt on the Balance Sheet, and a lot of small caps arent profitable. So what you have to be careful of is the Balance Sheet. We think we are late cycle usually small caps only sustainably outperform at the beginning of a cycle when there is liquidity flooding into the market so small caps, you can have a big bounce, 10 , to get you back to the 200day moving average, that is not likely to be sustained. Unless we start to see support from policy. You said policy i think fed meeting. Right . Yes. I said to mike santoli a couple of hours ago, i thought you could make the argument that this was the most consequential fed meeting where nothing is expected to happen theyre not going to raise rates, we dont think. But i wonder what theyre going to say relative to where rates are, and feel like the move in rates has given them the flexibility to be patient, but if thats the feeling among chair powell, and others, the chair didnt really give us that feeling in the speech that he gave at the new York Economic Club recently, where all of that was on the table, and it came off as a little more hawkish than expected. Are we in for something we dont expect next week no, because he focused on Economic Data being stronger than expected. So instead of focusing on financial conditions, and maybe that could drive Economic Data lower, he called out the fact that growth remains above trend, and look at that strong retail sales, and though of course, calling on the gdp from earlier this week, and if he continues to say, in order to sustainably have inflation back to 2 we need a period of below trend growth, which has been their message, that just means that they continue to hone in on the higher for longer. The jobs report next friday, too. There is a lot ahead of us the Apple Earnings we will get to it. In a moment, we have somebody joining the conversation, somebody incrementally more positive the last few times weve spoken are you wavering now great to be with you. There was a float that put out today, that we think the pullback is an opportunity and some of the things that we are waiting for has fallen in place. It is an ugly way to end friday, but there is something we were looking at to break the 30day moving amp weve seen that we think between 4,000, 50 on the s p 500, plus or minus, some report. 50 retracement of the bull market weve seen. And going to tech, often as you mature in a corrective phase, you bring down the leaders last. And weve seen that, if we look at the magnificent seven, theyre down about 17 from a 52week high so weve seen a pretty good reset the other thing that is somewhat lost is weve finally seen some stabilization in Interest Rates, the 10year around 4. 8 a as well. From our perspective, weve seen a pretty broad reset, especially outside of the s p 500, where the average stock, the valuation is down, the valuation is down because theyredown 14 from the highs small caps are down 17 , and so from our perspective, and the ongoing equities, we would be using this as an opportunity because we think the risk reward has improved if i agree you with and im willing to do what you tell me to do, where is the nibble where should i do it no, good question we still like large cap. We Like Communications services. But theres lots of if i am right that the risk reward is improving, is the bigger balance, the areas that we mentioned, the small caps, and the equalweightedsan. I think that is a look at the conditions but when we look at the third quarter, we look at the mutual funds and so forth, i think that is where you see a bigger bounce. Do you feel, keith, we have a bit of a floor in some respects . Ernl under the nasdaq, just because the stocks got sold off pretty hard this week, you do have some buyers coming in, you can only figure that if these stocks continue to trade lower, theyre going to be snapped up, like weve witnessed over the last 24 hours, if not a little bit more than that yeah, i think if you look at large cap managers, a lot of them are underperforming because they were underexposed to these areas and now this will be an opportunity for some of those managers to get back in. And it wasnt like they had bad earnings it is just that was expectations that were too high the stocks were up 50 on average, and more than that, and before this correction, and weve had a nice correction, so i think the big cash flow generation names, and in some ways even if the economy slows, we still think there will be good cash flow from these names and will gravitate back to these areas of the market. What do you think, cameron, of what pete says . This is an opportunity for some people to add if you have been underweight equities it makes a lot of sense and he called out that 40 a le4050 level, 200day moving average. And we broke through it in 2020 and bounced back quickly if we dip down to that level, quite interestingly you would be trading at about 16 times 2024 earnings and thats not stretched but then of course, it raises the question, is that 2024 number of 245 dollars a share the right number is it too high is it too low . But thats where certainly there has been a long line of support, and that would be something where you can add to risk at that point you think its too high or do you think its too low what do you think . It all depends if we have a recession. And it is still very dependent on it, simply because if you look at under the surface, the estimate has 5 revenue growth, and margins going back to alltime highs so we dont have a recession, and were continuing into this strong economy, then yes, 12 is achievable however, if we have a recession, we could actually be looking at the third year in a row of around 220 dollars a share we were there last year. We are there this year and if we have a recession, it wouldnt being to surprising to see it repeat. What is the next catalyst for a bounce what is it earnings were supposed to be it. And mega caps leave more questions than answers, i think, at this point. It is a good question and the way i think about it, scott, the biggest challenge for this market is rates and if the rates come down and looking at the inflation a little bit softer and lets say the unemployment report next week is solid, solid employment with somewhat cooler wages, i think that will help out and i think as you go into the fourth quarter, everyone knows seasonality, and weve been talking about it, we are turning to november, typically a better seasonal period. Now you dont make an investment just on seasonality, but i think the solid growth and it could be enough to get people a bit more excited to move back into this market lets not forget, we can move to fear to greed very quickly just like we moved, you know, from greed to fear pretty quickly since july you make a good point he does, right this has been at times a big countertrend market just when everybody gets super scared, nervous, everything else, the smarkt somehow bounces and now were kind inform that feeling again but i would expect you, ex a dovish fed, what is the real catalyst if we cant count on earnings in the near term bonds could be to the point of so oversold or yields overbought, you correct on the trend. Trend on the 10year would bring you down to about 4. 3 maybe that coincides with the seasonal tail wind and thats enough to bring us higher into yearend as weve seen so many time with the 10year, it is in an uptrend, and so if it starts to fall, youre likely, the likelihood is it continues the uptrend and a relief rally and not necessarily the start of something great. And if im buying bonds, im probably, i got like econofear, right . Im worried about the macro. And or not knowing what is going to happen in the middle east in other words, the reasons that yields start going down is not the right reasons you want yields to be going down. Exactly that is the catch here which is that if youre really hoping for an easier, more loving fed, youre actually betting on the fact that the economy is weaker, earnings estimates are too high, earnings need to drop, and that yields are dropping, for a reason and if that reason is a bad reason, then usually, risk assets, which include equities, and credits do bad initially until the fed steps in, supports markets with liquidity and then you have your rally. Two phases pete, last words. That is the crosscurrent we have to deal with we want yields to go down, and the problem is that theyre going down because were worried about a recession, or were worried about new developments in the middle east that make us, you know, even more uneasy than we are, thats not great we can have yields come down because inflation is somewhat moderating we had an overshoot in a short period of time i dont think we need yields down to 4 but to come in and show some stable dont forget, all asset prices are priced off that riskfree asset and there has been huge volatility not just direction, it is just seeing stability and the other thing is again, weve had a broadbased reset already. So this happened since the variability in Interest Rates and i think it will go away, and we all had a 25week high on forwardearnings estimates as well and the first part of the fourth quarter, 2. 3 , which is fine i want to ask you one more question i know you said that was the last quarter and what was happening in the bank stomach stocks, exjamie dimon selling, we dont need to word into anything that was suggested, at least from leslies reporting goldman down big i mean its not great for the overall market if the financials cant find any stability, is it . Im not just talking about regional banks we could show a bunch of regionals up here that would look a lot worse than what were seeing on the screen right now. Exactly the old phase, you dont need banks to lead in a bull market but you certainly cant have them lagging significantly because already sniffing out some kind of weakness within the economy that we should be concerned about. And Balance Sheet issues with a lost banks they are not having to realize it because of the feds support, but that starts to expire in march, and so as we go forward into 2024, even though these names are cheap, is there more earnings risk to be considered theres a handful of stocks today that are taking the biggest chunk out of the dow, and Goldman Sachs is one of them it is 50 points in and of itself jp morgan is on that list. And chevron is taking the biggest chunk, 80 points 80 points on the back of the earnings i appreciate your time very much Cameron Dawson pete, talk to you soon thank you. Lets get to our question of the day now. Speaking of those declines, which dow stock would you buy on todays pullback jpmorgan chevron . J j . P g . The results are coming up. Later on in the hour in the meantime, a check of some top stocks to watch as we head to close Kristina Partsinevelos is here the schuhoe maker is going u, shares of deckers up almost 45 year to date, and almost up 20 right now. Sanofi, opposite direction the worst day ever on weak guidance as they plan to spend more on Research Development and overshadowing plans to spin off the Consumer Health care business, following similar moves by rival j j and the moves have wiped off 20 billion from the sanofi market cap shares back to you. Thank you, Kristina Partsinevelos. Up next, tom lee he has a heavy lift. He is bullish as you know in the face of this selling this week he will join us next to tell us what happens next. And Sam Bankmanfried still testifying in front of the jury in the fraud trial a few blocks from here. The highlights straight ahead. Youre watching closing bell on cnbc power e trades awardwinning trading app makes trading easier. With its customizable options chain, easytouse tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. E trade from morgan stanley. Power e trades easytouse 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. E trade from morgan stanley. As an independent financial advisor, i stand by these promises. As a fiduciary, i promise to be the financial steward that you and your family need. I promise to put your longterm Financial Wellbeing above any short term transaction. Everyone has a big picture. My job is to help you invest in yours. [announcer] Charles Schwab is proud to support the independent Financial Advisors who are passionately dedicated to helping people achieve their financial goals. Visit findyourindependentadvisor. Com you want to be able to provide your child to helping people achieve their financial goals. With the tools or resources they need. With reliable internet at home, through the internet essentials program, the world opened up. Fellas, fellas. Thats how my son was able to find the hidden genius project. We wanted to give yall the necessary skills to compete with the future. Kevins now part of this next generation of young people who feel they can thrive. Were back Sam Bankmanfried testifying for the second day in his fraud trial, this time in front of the jury kay rooney joining us now with the highlights hi Sam Bankmanfried has been on the stand today. Acknowledging mistakes and the customers were hurt in the collapse of the Crypto Exchange and the fed said he did not commit fraud, Sam Bankmanfried said the biggest mistake was not controlling risk, and asking if he had a Risk Management department, he responded we sure should have which got chuckles inside the courtroom and asked by the attorney, did you degree fraud anyone. No, i did not. And said no, when he was asked if you took customer funds Sam Bankmanfried has been trying to shift the blame to other executives and claiming he was toobusy and didnt know some of the issues going on in the Crypto Hedge Fund and too busy to get a haircut, and known for that hair and a much shorter cut on the stand lately and talked about his romantic relationship with Carolyn Ellison and former ceo of the hedge funds and didnt have the time or energy to put into the relationship and went on to say he did not direct colleagues to make political donations either. When it came to spending on venture investments, he said he believed funds for vc investments came from the profits from his hedge fund almeda and he said he thought that was okay because he owned the hedge fund and it had a few billion dollars of arbitragebased profits and saw no reason he couldnt borrow from those funds scott, back to you. Kate, appreciate. That kate rooney, outside the courthouse blocks from here. The dow is down 429. Were on track for a steep week in losses. The s p and the dow near session lows tom lee, the cofounder of global vooid advisers, one of the more bullish people. I said in one of the earlier teases you have a heavy lift and this week has left us with that. What do you make of what has happened it is a tough week. It is a victory for those who have been bearish. But to me, this is also a remindser that the stock market and investor views about equity depends on faang faang did not do this week as well in earnings and it took some of the support out of stocks do i think the faang thesis is changed or broken . I mean i dont think so. To me, if someone hasnt owned faang all year, this is a chance to get in. But the thesis can be intact, right, that these are the places you want to be, and you can have that while still sitting here when the stocks got too stretched and the valuations got too rich and now it is time for a pullback yes, i mean you know, were down 10 from the highs for the s p. So i think a lot of that news is baked in but we also have done, as you point out, a lot of technical damage and people dont like the 10year at 5 . I mean this is why next week is pretty critical because we do get some pretty important data points. Momentum is a dangerous thing at times, right . You can say well, it can carry you when the times are good, for these faang names, and that was one of the criticisms the whole time, its seven stocks, and 493 stick and now it is 493 still stink and the seven look dicey. Thats the problem. It is. And i think will is good news think there has been some improvement in the internals of the other 493. We did a reporting last night of how the small caps are starting to look a little stronger so i think the 493 is less bad. And in terms of returning capital and compounding capital, the story is strong. I dont know if the market is comfortable with the multiple now but in 12 months i think there is a great opportunity. Is there a cautionary tale where the earnings expectations have gone . That is the debate and we are oust earnings recession and start to get liftoff and higher and higher as we turn the calendar into next year do we need to rethink where we are, because were worried about the economy, rates are high, and they remain as such. I have a contrarian take on earnings number one, if you look at the stock market correction, those that beat, theyre up half a percent, and thats better than q1 and q2 of this year so actually, were Getting Better reactions it is just like you said, it is more in the 493, not the faangs. The pmis have turned up year over year. And historically that leads to Earnings Growth year over year so it is confirming that earnings should strengthen from here and if we look at even q3 earnings, theyve actually gone up 2 . Since the start of the reporting season so i think the faangs disappointing in terms of the Market Reaction but i think the rest of the market is okay and will get us through the year. And a counterintuitive way to look at that pmi is good for earnings but however, the fed doesnt necessarily want all of this to be good, right they want demand in some respects to start to slow down and they have been unsuccessful in getting it to do that so as they potentially step up their efforts, to make demands slow down, that potentially hits earnings, doesnt it youre right. I think there is a view that the fed is running out of patience theyre like look i think maybe the more subtle point is i think the fed would like to see the labor market slow down because we know underlying, you know, the two main drivers of inflation are with autos, they slowed and the job market is still strong. Next week is the jobs report if theyre still soft, i think that takes the edge off. And next week we have the f omc meeting and again, i think they will be patient because a lot of tightening, especially by your 5 10year is already going through this pipeline. So i think the fed can be patient. Sure, i agree with you that the backup in rates has given them the flexibility to be patient, and suggest that, well, the move in rates has done some of the work for us however, if the labor market starts to show softening, then we have to worry about whats been the whole key to this thing to begin with. And thats the consumer remaining strong job losses pick up spending goes down the soft landing story starts to unraffle, doesnt it it is a delicate balance. Because you know, you really want to see jobs at 100,000 a month and you want to see Wage Expectations cool off. So it is a tricky calculus but i think that we dont have to reflect somebody saying hey, if the job market slows down, were headed for a hard landing. That might be the markets reaction but then that ends up being an overreaction you are still a bitcoin bull . Yes i want to end our conversation on that, because i think it is the bestperforming asset class of the year. Yes certainly one of them it is up more than 100 . What is your view of it here and why has it been going up the way it has been recently you know, theres a couple of things one are it has been real buying. Institutional buying the volumes all time highs asia buying again. They have been absent. So this is true people wanting to get in. It has been a good sound money story. Especially as we worry about washington etf optimism, too is that where youre going to go also yes i think the etf is far bigger than people realize, because again, supply will be etf could be 100 million a day demand we get a turn in the markets tom, next week we have apple reporting. I think there are three catalyst you only have to get one of the three right. The apple and fomc and the payrolls report. Only one . If one of three is better than expected i think the market rallies. Do you think given what has happened you might need all three . You need all three if the vix wasnt elevated. And we werent down 10 already. And we had a terrible three days so i think to me, sentiment is so bad that i think it is rubber band stretched okay. I appreciate the conversation as always thanks for coming down and doing it in the presence tom lee, thank you. Dont give up the ship thats what Goldman Sachs says after another rocky week for stocks he will tell us why he thinks the path of least resistance for the markets is still higher. When closing bell returns. Im kareem abdul jabbar. I was diagnosed with afib. The first inkling that something was wrong was i started to notice that i couldnt do things without losing my breath. I couldnt make it through the airport, and every like 20 or 30 yards i had to sit down and get my breath. Every physical exertion seemed to exhaust me. And finally, i went to the hospital where i was diagnosed with afib. When i first noticed symptoms, which kept coming and going, i should have gone to the doctor and told them what was happening. Instead, i tried to let it pass. If you experience irregular heartbeat, heart racing, chest pain, shortness of breath, fatigue, or lightheadedness, you should talk to your doctor. Afib increases the risk of stroke about 5 times i want my experience to help others understand the symptoms of atrial fibrillation. When it comes to your health, this is no time to wait. We planned well for retirement, but i wish we had more cash. You think those two have any idea . That they can sell their Life Insurance policy for cash . So theyre basically sitting on a goldmine . I dont think they have a clue. Thats crazy well, not everyone knows coventrys helped thousands of people sell their policies for cash. Even term policies. I cant believe theyre just sitting up there sitting on all this cash. If you own a Life Insurance policy of 100,000 or more, you can sell all or part of it to coventry. Even a term policy. For cash, or a combination of cash and coverage, with no future premiums. Someone needs to tell them, that theyre sitting on a goldmine, and you have no idea hey, guys youre sitting on a goldmine come on, guys do you hear that . I dont hear anything anymore. Find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Stocks still on shaky ground after a week of critical mega caps Earnings Reports. It is not the time to give up the ship though. Thats according to our next guest. Tony pasquariello, Goldman Sachs, head of Hedge Fund Client coverage, he joins us back here on the desk. Good to see you. Welcome back. Thanks. You put out a note, usually saturday mornings, which a lot of us gets and everybody reads thats right. Last week, the headline on your note was the path of least resistance was likely higher you have come here on friday, and im like uhoh, what is he going to right now sometimes the bear gets you, sometimes you get the bear i think a few things in terms of trying to understand what is coming through the market. One is i think investors are Holding Holding their breath around a very fragile geopolitical backdrop and bond market, i think Stock Traders are holding their breath with Interest Rates and then the third piece, i think we were surprised about the setup, tech earnings clearly an impact. Has the game changed as a result of that i dont think so. We sift through Earnings Quality itself the quarter was fine the companies in question this week, i think it is more broadly through the index so the percentage of companies greating final estimates was higher than normal i think the challenge was twofold one is i think it is hard to disassociate that global price action from the broader riskoff narrative. I think the acronym, the pack of those stocks moves as a group in a risk off or risk on context. I think the other piece is, if you didnt upwardly revise 2024 guidance, the market punished you. On net for s p and nasdaq. That estimate has come down. It simply hasnt gone up and i think it is higher for the stocks than we realized. A telltale sign of the dicey market, the stocks go down and how problematic is ha. I think it tells you a good bit about the flow of funds and positioning and on that front we have a couple of busy weeks in the franchise and i think the systemic Trading Community is trading around a record short. And i think the fundamental community have been in sell mode since the prime brokerage data length with a threeyear low and where things improve, a Corporate Community that has been in that blackout mode that is starting to turn in the other direction. And as companies report. So i do think the technicals get better but theyve been very difficult the past couple of weeks if i shouldnt give up the ship, which is sort of the way we teased you, what is the most important, or powerful catalyst for reasons that we shouldnt, to still think we could have a move between now and the end of the year if i were to sketch out a bullish call for november, december, growth remains strong but not too strong here is what i find interesting about the world we live in if you and i were sitting here in august, the consensus estimate for q3 gdp was 50 basis points and we know from yesterday, q3 gdp was not 50 basis points, it was 10 times that 4. 9 what happened along that path . S p sold out three handles, why, because the long bond backed up 75 basis points. So that cat and mouse deal, that word choice, it has been very difficult for the stock market so i think one, if growth slows down a little bit, which is our expectation, in a way i think it will take down the temperature of the rate market and the equity market will breathe more easily. Youre more apt to say that bonds and yields are in the peaking process. I would hope so i would hope so. The front has been very steady the back end where people have been nervous and the most disanchored and open debate how to soak up the duration next year but i think if we go from a 5 run rate in gdp to a 1 or 2 for run rait gdp, i think that is a more friendly temperature fort market and the second piece alongside earnings would be full of funds. And i think the market is probably sold out. I think positioning sentiment is about as negative as can be. And i do think the corporate bid is usually very forceful in november and december. And i dont want to make too much of the market seasonals i feel kind of funny talking about it in this context but typically, november, december, comprises the best two months of the year. Does powell give us some kind of a halloween surprise next week that we need to be cognizant of what are your thoughts around that meeting we think theyre done the market thinks theyre done. Done fully. Done with the cycle i think the rhetoric from the Committee Suggests they want to be done. Now, youve pointed this out i think powell has been able to sit back a little bit and let the market do the work for him so if you look at the Financial Conditions Index since this summer, the backup has been equivalent to essentially 75 basis points of rate hikes that might be appropriate given how strong the economy has been a lot is going to happen between november and the december fomc, certainly with the geopolitical backdrop and we have the funding announcement we could have a Government Shutdown although that is not our view. My guess is he plays it pretty close to the vest. And again, lets the market do some of the heavy lifting for him for now. I felt like that was the opportunity he had and in the speech at the new York Economic Club, where a lot of the other fed speakers preceding him in the days prior, basically said just that, right rates were backed up the Financial Issues are tighter. It is the equivalent of one rate hike and then maybe i was naive i dont know he did didnt really go there. I think he came off to more people than not, i think, as hawkish. Yes and i was like all right, all bets are off and maybe that is how he wants it. Again, if you look at core pce today, if you look at core cpi, the reality is core inflation is a lot closer to 4 than 2 and were on track to create 2. 8 million jobs this year and for all of the debate about the consumer, i think retail sales are there dealing with the economy and the inflation, to let the market do the work is probably appropriate for now. It has given him the flexibility to be patient, you would think. Yes. And now well see followed by the jobs report. Tony pasquariello, Goldman Sachs, joining us here. Up next, the biggest movers as we head into the close on this friday. Kristina partsinevelos is standing by once again with that im standing by with beer, queso on my list and no mountain dew. Details next ah, these bills are crazy. She has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance policy of 100,000 or more she can sell all or part of it to coventry for cash. Even a term policy. Even a term policy . Even a term policy find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. To duckduckgo on all your devie duckduckgo comes with a builtn engine like google, but its pi and doesnt spy on your searchs and duckduckgo lets you browse like chrome, but it blocks cooi and creepy ads that follow youa from google and other companie. And theres no catch. Its fre. We make money from ads, but they dont follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. 15 from the closing bell Kristina Partsinevelos has the key stocks shes watching. It seems like my ear pierce is not working but ill keep going. Chipotle is higher after heavily beating earnings estimates along with a better than expected same store sales growth offset by price hikes last year. The Company Recently began hiking prices again but says traffic has remained strong and thats why shares are up over 5 on thor end, boston beer is lower today, after cutting its guidance the Sam Adams Brewer saw more strength in its twisted tea and hard mountain dew brands but it wasnt enough to completely offset weakness in brands like truly and Dog Fish Head. Yes, Dog Fish Head shares are down 14 . Scott . Thank you Kristina Partsinevelos. Last chance now to weigh in on a question of this day. We asked, which dow stock would you buy on todays pullback. Jpmorgan chevron . J j . Or Procter Gamble. Head to at closing bell. Inform n, at th ght time, may make all the difference. At humana, we know thats especially true when youre looking for a Medicare Supplement insurance plan. Thats why were offering seven things every Medicare Supplement should have. Its yours free, just for calling the number on your screen. And when you call, a knowledgeable, licensed agentproducer can answer any questions you have and help you choose the plan thats right for you. The call is free, and theres no obligation. You see, medicare covers only about 80 of your part b medical expenses. The rest is up to you. Thats why so many people purchase Medicare Supplement insurance plans like those offered by humana. Theyre designed to help you save money, and pay some of the costs medicare doesnt. Depending on the Medicare Supplement plan you select, you could have no deductibles or copayments for doctor visits, hospital stays, emergency care, and more. You can keep the doctors you have now, ones you know and trust, with no referrals needed. Plus, you can get medical care anywhere in the country, even when youre traveling with humana, you get a competitive monthly premium, and personalized service, from a healthcare partner working to make healthcare simpler and easier for you. You can choose from a wide range of standardized plans. Each one is designed to work seamlessly with medicare and help save you money so how do you find the plan thats right for you . One that fits your needs and your budget . Call humana now at the number on your screen for this free guide. Its just one of the ways that humana is making healthcare simpler. And when you call, a knowledgeable, licensed agentproducer can answer any questions you have and help you choose the plan thats right for you. The call is free, and theres no obligation. You know medicare wont cover all your medical costs. So, call now and see why a Medicare Supplement plan from a company like humana just might be the answer. In the u. S. We see millions of Cyber Threats each year. That rate is increasing as more and more businesses move to the cloud. So, the question is. Cyber attack as cyber criminals expand their toolkit, we must expand as well. We need to rethink. Next level moments, need the next level network. [speaker continues in the background] the network with 24 7 builtin security. Chip . At t business. When youre wearing the worlds coziest slippers, your comfort zone can be just about, anywhere. Step into your comfort zone with olukai. The results of the question of the day we asked which dow stock jpmorgan, chevron. J j, Procter Gamble . The winner at this moment is chevron. It was jp morgue an second ago but late votes coming in with chevron 38 . Intel, thats the best performer in the dow today after its earnings beat. Up next what it means for amd and qualcomm when they report next week. That story and morwh wtae ene ke you inside the market zone the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. We just got an order from dinosaur, colorado. Start an easy to build, powerful website for free with a partner that always puts you first. Start for free at godaddy. Com the power goes out and we still have wifi with a partner thatto do our homework. Rst. And thats a good thing . Great in my book who are you . No power . No problem. Introducing stormready wifi. Now you can stay reliably connected through Power Outages with unlimited cellular data and up to 4 hours of battery backup to keep you online. Only from xfinity. Home of the xfinity 10g network. What do you see on the horizon . Uncertainty . Or opportunity. Whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined Risk Management are needed most. Drawing on deep expertise across the worlds public and private markets in pursuit of longterm returns. Pgim. Our investments shape tomorrow today. I think im ready for this. Heck ya with e trade youre ready for anything. Marriage. Kids. College. Kids moving back in after college. Finally we can eat. You know you make me wanna. And then we looked around and said, wait a minute, this isnt even our stroller laughing you live with your parents, but you own a house in the metaverse . Mhm. Cool. I dont get it. Heres to getting financially ready for anything and heres to being single and ready to mingle. Whos ready to chacha . yeah, yeah the closing bell. Senior marking commentator mike santoli here to break down the crucial moments of the trading day, plus Kristina Partsinevelos and the chip makers in the week ahead. A huge weight on the dow today how about this headline, guys . I want to get this out there before we begin the conversation the wall street journal headline, google one of the worst hit. Down 10 on the week. And invest up to 2 billion dollars in the open ai rival an throppic and also said 500 million and kicks in another 1. 5 billion, and going to 2 billion dollars now. And remember, amazon had said it would invest 4 billion dollars in anthropic just this for what it is is it an act of desperation on alphabets part to try to become a bigger player in the ai game which some say it ceded to people like microsoft. We shall see but nonetheless, an interesting story about the arms race if you will among the mega caps and thats the center of the activity this week. It is an act of urgency or additional urgency, if not desperation. Were about a year out from when chapt first showed up. One year of this idea of who is out in front. It is not the kind of thing to get rewarded for right now. I think they have to constantly seem like theyre on the right side of this disruption curve. Yes so how are we going to look at what happened this week . As we turn our attention to apple and the biggest stock in the market, the chart has not looked great at all. And the pressure is really on now. None of the charts look great right now, you have done some structural damage to all of the uptrends to the point where it is now that moment in the correction where you say okay, is it now so bad its good is it now at the point where we can say it has washed out and oversold, youre starting to get in that area, if not absolutely there. And the question is, to what end . Are we going to have a cursory relief rally or something more you had valuations come down as earnings have come through fine and prices decline and you definitely had sentiment turn sour but not all that negative and i think there was news on decent results on the mega cap tech stocks, it was another piece being taken out of the things people were comfortable with so that is, you know, it is all part of the process of folks losing hope and feeling there is no where to hide well see if that happens. Youre one of those who reads Tony Pasquariello every weekend morning and dont give up the ship and the technicals are in your favor and buybacks will come back because of blackouts and seasonals are in your favor, too. It is an interesting counter view to the negativity. It would be strange if we said this entire market fell apart because the economy was doing better than expected companies were able to finally grow earnings again. And provided yields calm down as they have this week. All that put together, i do think you have an extra dose of friday anxiety the last three fridays weve had a clenching up of the market with the unknowns of the weekend on the geopolitical front. And what does intel say with chip gains a nice gain today. Like mike mentioned earlier today, that is where the stock was about 10 days ago. But with a lot of descriptions for this company, it was better than feared, less bad, and these are what we heard for intels earnings beat. Management did promise theyre on track for five new Manufacturing Processes in four years and in an attempt to catch up with Taiwan Semiconductor by 2025678 the quarter was driven by pc sales. This is the third consecutive quarter of pc shipment improvement and that should bode well for amds earnings next tuesday. Amd is the only real other competitor in the pc market. The stock is down 13 over the last three months and heading for the Third Straight month of losses intel also said it was supply constrained for the ai chip, with order pipelines doubling just over the last three months. Thats pretty good news for individual and amd who make ai chips. And lastly, you a thomas mobile, grew sales by 4 , mobile eye and texas instruments, also saw a resilient auto segment and positive signs for on semi earnings out on monday if you look at on semi stocks, a rough go ever since the uaw strike started on semi, like amd, is tracking for three straight months of losses appreciate that very much the dow is down about 415. The biggest drag within the dow today, chevron almost 7 down is it on earnings . Is it on prospects for the deal with hess . Or c, all of the above i think it is all of the above. When it comes to earnings, eps was 70 cents short of estimates and that is coming from multiple divisions, especially international. On the upstream front, chevron noticed a three month delay, with the operation in kazakhstan and they said their dividends will be about 2. 5 billion dollars lower than previously expected overseas refiners underperforming estimates as well chevron also citing taxes and what they call timing effects. And that includes things like cargos on the water, that are in transit, and across the quarterly period of course, as you said, these results definitely overshadowed by the feds announcement on monday and it feels like it is an overhang still for the stock, as investors evaluate how this will play out in terms of the shortterm hit, in favor of long term opportunity and the company ensuring shareholders that ill twill pay back in baby boomers in the future but the shares are down right now. Two minute warning. Thank you very much. Back to mike santoli not exactly at the low was dow and the s p not that far off. Firmed up a little bit. And the s p 500 is basically got down to 4100 if you go back to april, may, of this year, it has been an enormous amount of time, just kind of hashing around those levels, and it was considered to be a possible ceiling for the trading range for a long time. In theory, that should be a place where you do have some buyers finding reason to come in there. The idea that we sort of tried to kind of argue it out at that level for a while. So that you have that going forward. And this is the very short term. And we do have the treasury refunding announcement, the fed next week, apple, so you should at least be able to clear the way, toward having the narrative get fixed, in one direction or another. On whether the bond market can sort of live with the current level of fed policy and demand. I wonder how many of the big events next week have to quoteunquote go our way, out of what are really, four, as you said, apple, fed meeting, jobs number, supply, as well from the fed, i wonder now, just given what this week has put in, how many of those scores do you think are in your corner the more stretched you get to the down side in price in theory, you dont need that much to be wonderful. You just need it to be a little bit less bad and you have fewer new lows being made in the stock, in the new york stock exchange, and even as the market made a new one, so you have the swing, you can see the market trying to sort out some potential opportunities and take a shot at it. We will see you on the other side great to have you your insights. Mike santoli, thank you. The dow down more coming up the nasdaq modest gains with the major averages ending the week firmly in the red 4117 it looks like for the s p thats the score card on wall street the action is just getting started. Welcome to closing bell overtime, im morgan brennan. Three companies that bucked the down trend intel getting a major boost following last nights earnings results. Second in the nasdaq 100 and building on solid gains for the year we will hear from the Ceo Pat Gelsinger abou