Transcripts For CNBC Closing 20240704

And nasdaq are positive, many caps higher with the exception of apple, how many times have we said that . Amd is a big gainer approaching 300 billion in market cap, its largest ever, nvidia what else closing out with another gain, almost 800 bucks, not so much for snowflake today, it is tracking for his worst day ever following earnings and guidance that takes us to our talk of the tape, we are really in a sweet spot for stocks. Lets ask gabriella santos, chief Market Strategist for jp morgan Asset Management live with us once again, nice to see you. Welcome back. What a month it has been, its been broadbased, nasdaq 5 , s p almost five, the dow is the lacquered. Are we set up for a week spot . We are seeing signs of that broadening out, one thing we do is we track contribution to returns of the 10 largest companies. As of january, 90 . It was a arryover of last years story where we said today is with only 74 of returns being driven by just a handful of stocks, we are getting closer to what would be normal which would be about 60 , we are starting to see other companies participate in tag other sectors, healthcare, industrial is a very strong 6 1 2 . A record high today, this is february, discretionary 7 1 2. Industrials record high, tech record high. Its been two big themes this month, the first we know, there was a readjustment of expectations for rates just to closely align with the fed, i think it is important to realize that high for longer is not the same as higher for longer. It was the uncertainty of how much higher we have to go that was paralyzing. I think companies adapt just knowing what the cost of capital is hence why stocks did well even as rates eset higher. The biggest thing is earnings, better than expected end of the earnings season was really positive and you start to see sectors like industrial start to deliver better earnings. Should we believe a stat like this, since 1930, the s p has seen 16 cases in which the four month period of november to february positive, the full year has been positive in all cases. That speaks to momentum, that speaks to why perhaps we got here in the first place. Whether the trends that have been in place are going to remain in place so that stocks will have a good remainder of the year. It speaks to how low sentiment had gotten late october, that higher for longer tenure going to six, seven, what is going to happen with pockets in the economy, whats going to break next into now fully more appreciating we can handle high rates, and that you can make a soft landing with positive growth, we do think there is a bit of a sweet spot. Good enough at the same time that inflation is normalizing. It is still there, thanks to revenues as margins are stabilized. Eventually, that narrative goes too far. We are still talking about being later in the cycle which means really a focus on quality, still important and it is too early to go after companies lowquality or the kind of sectors that need rates which is up today. Gets a bit early for that. Can we be so late cycled of the russell is just starting to get going . Theres a bizarre cycle, a bunch of different cycles within the cycle. I think if you look at one metric like Unemployment Rate below 4 for 2026 26 consecutive months. Thats the sign the economy is late in the cycle, but that can last for a long time. Smarter about efficiency and cutting costs, companies that are bigger and have more cash on Balance Sheets stand to do better, theres other stuff there. Your neutral stocks . The idea is that you still have stocks having a supportive backdrop. Four months, a lot more about whats happening beneath the surface to at alpha2 the beta. Its an environment where yields are at 5 plus. We can remain where we are, and the prospect of further rate hikes is going to be the issue. He can do fine as long as rates are here. You can see that incorporate behavior that they are no longer paralyzed by the uncertainty of on the cost of capital. Issuance of bonds, record high for the month of february mma starting to pick up, investors starting to poke around if areas in the market are really what is paralyzing as always is the uncertainty factor. What about tech . As i said, its underperformed from a broad sector. Its up 5 and i said it hit a new record high, its underperformed some other areas of the market. What do we want to do with that now . We want to treat them as individual companies, it is quite healthy to see more dispersion in their performance and earnings. Three magnificent ones, two underperforming are not so great. Which ones are the two not performing . Apple. The ones that are down would be apple and tesla, google joining that now which is not just dump these three and by the other ones, they are behaving more like individual companies and other companies joining. An individual status this year, the top 50 global companies, 32 of them are not listed. They are abroad. There is interesting stuff happening especially in japan, we are excited. Invested partners with us as well, good to see you too. We will turn the calendar into a new month. How should we view the market based on where we have been and where we are . I agree with what gabrielle is saying and whats interesting is that a lot of advisers that are talking to, they came into the month of february skeptical in january thinking the market needed to correct off of the strain at the end of 2023. You thought that was going to be why wasnt it . Its interesting sometimes the statistics on historical probability do not work, there was this case where february is supposed to be a down month in particular, the second half of february. It did not work, theres a lot of people still sitting on the sidelines and that it cash yielding equivalent. Those people at some point will engage. Ultimately they are high, the next move is going to be seeing a recut. The market has i digested that fabulously, where was the market at the beginning of january when we were expecting six rate cuts, 150 basis points of easing. At that point, the market was 7. 7 lower. The 10 year treasury was 31 base points lower. We price that out and i just that remarkably well. You see what ray dalia put on the linkedin today . I heard he had posted something, my first thought are they negative on the market, he addresses the idea of whether this market is in a goes through a list of six items high prices relative to traditional measures of value, unsustainable conditions. Many naove buyers attracted because the market has gone up, bullish sentiment, High Percentage of purchases being financed by debt. A lot of forward and speculative purchases to bet on price gains, he sums it all up and says when i look at the u. S. Stock market using these criteria. It does not look very bubbly. I was kind of surprised, i was almost expecting him saying you know what, but this does not look sustainable. Asymmetric risks to the dow side in the past, Great Investors of our time make it in a period like this, its not true. Do you agree . I think it is interesting we were just speaking of matt seven, i dont want to leave the impression this is a bubble or that we should be out of some of these names. As you mentioned in the article, they have also delivered the earnings. As much as these companies are up, the evaluations have not exploded the way you think looking at the return. There are companies able to monetize Artificial Intelligence today, not a promise of it in the future. A lot of companies focused on profitability and cutting costs, another thing he mentions , it was all tbill and show last year until the end of your statement. And then we have had several of fries, hold on. Equities are at 25 , 6040 gave me could have given me that a few times. People did not purchase paid in the gains yet. Not that long ago either, i think what he says about this idea, the sentiment still a lot of out there. Ive had a lot of shows this week, there are some ready not ready to capitulate to the bull case. They think their story will work eventually, its not as euphoric as some might have you believe based on gains weve seen in the market so far. Its the expectation of a billionaire talking down the market, he obviously did not do that. I agree with everything he said, i also think when you look at the market, whats leading the market is quality to your point before, there is broadening out. The broadening out is happening in quality, mid and large cap names industrial financials. It is not happening in the nonprofit areas of the market. The only place i could look at his the speculation getting a little excessive . Its crypto but i dont claim to know anything about crypto, thats just a personal observation but other than that, the market sees quality. It sees quality globally. Ive had debates f people this week that say you really dont want to put money into equities, you want to go more towards quality parts of credit, what do you mean, youre telling me jpmorgan is not quality . The stock is at alltime high, you tell me burger hathaway is not quality . Thats an alltime high, costco, recliners, healthcare stocks that have picked up a lot, cigna, boston scientific, ge healthcare. You want industrial, i will give you parker hannifin, defense, general dynamics, martin marietta, vulcan. Are these not quality . You can focus on quality within that equities, it does not mean that it sends you all the way to the other extreme of fixed income markets. The metric quality cash on the balance sheet, thats a big reason why we have that tech. Leading to tech being an important sector, healthcare is a perfect example. For us, it means expecting a preference for large over small cat. Why not over weight stocks . It is quality for fixed income. Its quite tight, theres much less credit risk than there has been later in the cycle. We would have quality in stocks, quality and fixed income. You want us to stick with semi conductors. You look at what amd is doing today, i mentioned it at the top, what nvidia has done is extraordinary. Picked another chip stocks and the stocks look similar. Look more on the left, way high on the right. There is the pillar of strength along with looking internationally japan. India, the momentum factor, industrials and financials. But we see eternally in the market for the first time the momentum factor i keep citing is now acting as a catalyst. Since november of 2021, its coming back once again. Its a very powerful force and i think you want to focus on the areas of the market where thats extreme strength because that is your indicator for how long the strength can actually continue. Momentum. The d. O. T. Is at an alltime high. Thank you, it is. Be proud of that. You manage it, you deserve credit. What do you think we just talked about . Quality momentum, quality momentum, those factors apply to largecap equities. That is the key, i agree with you. I dont think small caps are there, the other thing that is popular, lets look at china in the month of march, there is an opportunity, there is a pivot will you get where you get stimulus. 10 , absolutely i agree with that premise. I do think you get the stimulus from china, it is time to invest in china, let me give you low hanging fruit from a Risk Management perspective, by oil, if you think they will have an economic revival and there will be stimulus, oil will not hover below 80, its going above 80. Its interesting if i can add a little bit, and our conversations with our institutional clients, china and japan have completely sought places for to many years, japan was a tactical trade, get out, grow your strategic allocation in china. It is the opposite, china is thought of as more of a tactical trade when evaluations are cheap and they might have a catalyst around the corner. Japan is growing as a buyand hold allocation to me, that is such an exciting change happening in japan. When she when you go international, first. You like it . India is the fourth largest stock market in the planet, it also has the same return on equity as the u. S. , it is liquid, it is quality, you have positive things happening with democratic demographics. They work inversely these days in india and japan if you believe in a china tactical rebound, that means it will come at the expense of india but chan japan but if you try to make a strategic allocation, we grow these two markets for Different Reasons. Let me go to energies since we have finished with the international. I think what is tricky about china energy story, china actually imported quite a lot last year, mobility has rebounded back to normal. Our belief as an energy is more range bound in terms of oil prices, 80, 85 but is an interesting hedge if you think about geopolitical risk and questions. Especially if you think about traditional energy. We had the ceo, it reminds me of the ceo of boxee on the day, joe. I said what is the breakeven for you . Its like 40 bucks. 80. Does that tell you that Energy Stocks are not getting enough respect . They ultimately well, because we dont see which energy and oil prices go lower. Forget that, thats in the dumpster. Candidly, i made the statement if you believe china has the economic revival and they are sub stimulus. I can hold Energy Stocks in that setting but prior to that, we have been carrying back holdings of energy and significantly helping weight. We have cut that in half, there is extreme disappointment surrounding performance of Energy Equities coming off a 2023. There is no price response to that. Im not giving you that answer because it is so much disappointment that has really been reflected in the price action of the last 6 to 8 months, youre an approved scenario, you need economic growth. Thats the first central bank, i dont know if you think that, they will cut before the Federal Reserve does. Let me point one more thing out, we have the nasdaq looking up a little bit as we begin the final stretch. 16,057 port 44. That is the number you need to watch because that means we are closing alltime high for the nasdaq. We are picking up steam. We have 40 minutes or so to go, we will see what we do but that will be yet a new ilestone for that index. They will be trading around record highs. Gabriella santos, we will talk to you soon. Lets send it to christina. Lets start with the food company or mel seeing it stock come up today, customers are going nuts for nuts, the company is seeing the sales being driven by corner nuts, snack nuts, the company reaffirmed its net sale Growth Outlook of one to 3 for the full year, shares are up 13 . Do not miss the interview with hormel ceo. October feeling the love today, after the Identity Management company from underperform to a buy. It pointed to does Customer Growth concerns have lessened, not too shabby for 22 stock pricing increase for okta. Not at all. Not at all. We will continue to watch the nasdaq where you are. We will watch for that record today. We are just Getting Started and will be back to you hortly, up next, are the stocks too affect expensive . With the dean aswath damodaran, live in from the new york stock exchange, youre watching closing bellbc n. We earn your trust. Maintain our financial strength and stability. And deliver solutions that meet complex needs. Massmutual. Partnering with financial professionals, benefits brokers, and institutions. Best thing ive ever done. Thats what freddie told me. It was the best thing ive ever done, and really . Yes, without a doubt i dont have any anxiety about money anymore. Great people. Different people, thats for sure, and all of them had Different Reasons for getting a reverse mortgage, but you know what, they all felt the same about two things they all loved their home, and they all wanted to stay in that home. And they all wanted to stay in that home. [announcer] if youre 62 or older and own your home, you could access your equity to improve your lifestyle. A reverse Mortgage Loan eliminates your monthly mortgage payments and puts taxfree cash in your pocket. Call the number on your screen. Why dont you call aag. And find out what a reverse mortgage can mean for you . [announcer] call right now to receive your free noobligation info kit. Call the number on your screen. Her uncles unhappy. Im sensing an underlying issue. Its tmobile. It started when we got him under a new plan. But then they unexpectedly unraveled their price lock guarantee. Which has made him, a bit. Unruly. You called yourself the uncarrier. You sing about price lock on those commercials. The price lock, the price lock. So, if you could change the price, change the name its not a lock, i know a lock. So how can we undo the damage . We could all unsubscribe and switch to xfinity. Their connection is unreal. And we could all unexperience this whole session. Okay, thats uncalled for. Welcome back, it was about a month ago that our next guest said he would not put any fresh money into mega caps because the evaluation was already too rich along with the nasdaq up another 5 february, what does the dean evaluation think now . Aswath damodaran of nyu joins us, welcome back , it is good to see you again. Thanks for having me. Here we are, february, the market is up nicely again. I will ask you to answer the question, what do you think now . It was an open value, it can be undervalued now, that would be reversal philosophy that would upend anything i think about. With that said, even a month ago i said only one of the stocks looks significantly of value, the stock that has gone up the most, they are doing things i cannot understand. Far for me to debate anybody that knows better than anybody but maybe the evaluation was not as overstretched as you thought . About a month ago, maybe we are not looking at things. Maybe we are looking at things in the way we used to but now you cant, we are having a hard time assessing what ai will mean to these companies, i bring that up noting that when you were last on, nvidia was at 682 now pushing 800. I asked bernstein, one of the best analysts around. What is up with nvidia and the evaluation . Want to listen to what you told me in the reaction on the other side. Nvidia is still not expensive, its actually still the cheapest of all of the ai stocks. Way cheaper than amd, cheaper than intel. At this point, so, i think there was room for expectations to continue to go up. This was right before they reported earnings and it was another blockbuster, how can we view this now . Thats like saying im short relative to the typical nba player. When you make pricing statements against subgroup stocks, ai stocks saying it it is of the cheapest. That might very well be true, they might be overvalued. Ai is real and would make a real difference to business, the biggest change in the market, that being said, that pathway is not easy as open to profits as the market seems to be assuming it is. Right now, nvidia is in the same place, and a great place but not a good investment. When you think about moment bye come, i never have seen a company celebrated as much as nvidia. Jackson brown is the greatest ceo to walk the face of the earth, the company cannot be stopped if he sets a perception. How can you stop that perception . Everyone at one point inside, the fever breaks and thats the question, when it will happen to nvidia. Is still a great company, that surprises me in the sense that i can almost make the argument, the exact reverse of what you have said, actually a great investment. Why trade around . I come run other programs and say i took 20 off with my nvidia holding, this is unbelievable. Now the stock is elevated, how do you get back now . It proves to be an unbelievable investment for those, i think you are one of them and we have been riding that wave ever since. Im glad i got in when i did. The question to ask what demise pricing it . The 2 trillion market gap, what nvidia has to do to break even has got to at about 400 billion in venues, it has to at 400 billion revenues. That is a daunting task, it is plausible but investing is about the game of the problem, you play the plus plausible game. You are setting yourself up to use, they would get the revenue and earnings because all religions are firing at full force right now. We have the next earnings report, they took their and beat them again which is what pricing is all about, thats why its a good trade, they would like to deliver upside surprises in the longterm, you price the company to be the best ever. I want to get your opinion on what was posted earlier on linkedin, im not sure if you heard that. I will recap it for you, looking at whether we are in some kind of bubble period. Obviously, insinuating if you think we are, that would assume evaluations are out of whack. He says i do find a bubble market is one that has the combination of the following in high degrees, high prices relative to traditional measures of value, unsustainable conditions many new and nao■e buyers, broad, bullish sentiment, a High Percentage percentage purchases financed by debt and betting on price gains, he says when he looks at all of that, this does not look very bubbly to him. Would you agree . I agree but i would agree with that statement pretty much any time over the last 10 years because we are surrounded by bubbles, people can make an argument for a bubble. I have been uncomfortable with that word, it suggest the people buying stocks are shallow and people are making the statement as deep thinkers. That is a dangerous place to be in markets, right now the market price, the overall equity market priced about a percent 8 . Thats an expected return from that perspective, it does not look massively miss spread, are there sectors . That will always be the case, absolutely. Do you believe in the broadening story that i feel like has not gotten enough respect if you look at all these other sectors as i read at the top of the program as well, that have done tremendously well this month, outpacing the gains and technology for example which is no slouch, obviously. Discretionary and industrials have looked awfully good but maybe we have not talked about them enough it i think it is broadening but the final break in the dam is where the cap comes back to the market, the ipo will be a good indicator. Risk capital has been on the sidelines in spite of market going up for much of the last year and a half, this capital year and three months, this has been on the sideline much of this period, risk capital is Venture Capital money, money invested in companies, ipos. That will be the next segment of this market if we will truly have a bull market, it would stay with staying power, if risk capital comes back. It would be interesting starting to see the ap ipos making their way back to market, that is a sign the market is truly back. Arent we already in some sense saying this with biotech and bitcoin . We are starting to see it, bitcoin i think is one of those things which is a noisy indicator, bitcoin i think of as very risky stocks from that perspective, im not surprised that the surgeon bitcoin pricing because it tracks with the nasdaq is doing with segments, i think it is a good sign for risk capital when you see crypto is going up because that is the ultimate spectacle of trade for risky capital. Professor, i always enjoy our conversations i look forward to the next one, thank you. Aswath damodaran joining us, new York Life Investments finds potential market headwinds , Lauren Goodwin says it can impact your portfolio in a big way. We are keeping a close eye on the nasdaq as we said trying to get that record closing high, 16,057. 44. We are almost there. Once again, we will see in the 20 minutes if we can actually get there, we are back after this. Trading at schwab is now powered by ameritrade, unlocking the power of thinkorswim, the awardwinning trading platforms. 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So you dont have to worry. Empower. Whats next. 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. Welcome back, we are showing to the nasa back because we are currently trading at a new alltime closing high, 16,057. 44 is the critical number to watch. In these last minutes of trade, we are above that level. We will see if we can hold it, it has been far from technology in february as we are about to put the fourth positive month in a row, our next guest is not sold, Lauren Goodwin, chief Market Strategist for new York Life Investments. Okay. The market has gotten a lot more broad. Thats the last thing the bears wanted to see because it chops further at their story and eventually you keep chopping away at the story, the tree falls. You are not on the page of the bulls yet . I want to clarify where i am a bear. And you would minute . Admit it, you are cautious on the equity market, fair . I have been very cautious on the use u. S. Economy. There we can talk about all kinds of risks or risks to that view. When it comes to being invested, we have been very constructive even at tech workers where the conversation is played out, they have been talking about how to play all the insides of her example the nasdaq story that we are seeing today and broadening market rally. Actually, if i look at the risks, its all kinds of things i dont see likely to happen even in the next couple of months, we are staying fully invested. I would not describe you as somebody on the program who was bullish, i dont believe you have been bullish u. S. Stocks. We had not been chomping at the bit, a lot of that has to do with being tactical for us, sixmonth moves, you have to move carefully, slowly were ever the case may be. When i look at this rally and the broadening we see at this month, and i would say how can that broaden further, theres a couple of things we would need to see. Earnings broaden further, we are not likely to see that, we are wrapping up earnings season. Better than expected. You also like to see rates expectations moved back lower, really though i think we have been saying it for three years, leaving all of us, this market comes down to not just rates but expectations, that comes down to expectation. No big surprise in pce and the expectation exists they will cut, maybe we do not care as much today as we do yesterday to speak on how much and when it starts. We know it is coming. That is all that matters, that is one of the reasons that investors should be getting the most allocation shifts and things we have talked quite a bit about moving cash off to the sidelines into bonds, the moves we saw in terms of bond performance, we have only seen the beginning of it when the fed starts actually cutting rates, there is so much caution and chat cash on the sidelines i can move in this market, we are choosing to be early on that front, moving into short duration credit and municipal bonds. Why do you favor taking cash off the sidelines and putting it into bonds rather than stocks . It feels like you are favored position is to credit. Not into equities. Its because growth is slowing, and our argument, that favors credit not only from a risk adjusted basis, part of the reason to move from passion to credit is because youre trying to lock in higher yields we may have right now. Considerably, you still get a sense thinking the fed will not cut necessarily for the right reason. The economy will weaken more than hole maybe thing today at will, is that fair . That is fair, i expect and hope the fed starts cutting for the right reasons. Thats where they saw the impact, which i do expect will continue to be the case that this inflation risk we have seen nearterm is a temporary blip. My expectation as we move throughout the year, growth is why it is so liable to slow and the fed will cut more assertively than we expect. Frankly for the next few months, bad news in the economy is good news for the market and investors, Even Economic bears like i tend to be our market bears in the very near term in that circumstance. The fed is not necessarily ever proactive. They are always sort of reactive two things that emerge. This will be interesting, they dont want to wait too long either. They dont want to defeat from the jaws of victory. One of the examples i see cited the most recently is the example of fisher greenspan who in the 90s similar in a lot of ways economic experience to now where the economy is looking pretty good and rates do not look restrictive so why do you start cutting . In that environment, one really big difference between then and now is that the global globalization and productivity story. Entering the global economy, labor market looking like a lot of labor was coming online. This is an environment where we are looking at d globalization or reglobalization environment. The inflation backdrop is a little higher than expected, thats why the fed has been pretty clear that later in the years, probably better but that does not mean they will try to take the thing at this point now that they have done a good job. Productivity is another aspect of surprising a lot of people and ai playing a large role, we will see where it all goes and continue our conversation. Lauren goodwin, up next, we are tracking the biggest movers into the close. Christina is back. We have a chip stock and drama all the scoop next. Best thing ive ever done. Thats what freddie told me. It was the best thing ive ever done, and really . Yes, without a doubt i dont have any anxiety about money anymore. Great people. Different people, thats for sure, and all of them had Different Reasons for getting a reverse mortgage, but you know what, they all felt the same about two things they all loved their home, and they all wanted to stay in that home. And they all wanted to stay in that home. [announcer] if youre 62 or older and own your home, you could access your equity to improve your lifestyle. A reverse Mortgage Loan eliminates your monthly mortgage payments and puts taxfree cash in your pocket. Call the number on your screen. Why dont you call aag. And find out what a reverse mortgage can mean for you . [announcer] call right now to receive your free noobligation info kit. Call the number on your screen. Tracking for a new record closing high, 6744, i keep mentioning the number to watch. About six points or so, we will see what happens over the last several minutes of trade. Lets go to the nasdaq where we are with key stocks, its all electronic, lets talk about amd adding to it. Amd stock is up 90 . Week guidance yesterday. They are putting pressure on their revenue growth, bullish setup for key ai writers. Also shooting a bullish chip note, they mentioned amd, not really the amd on this 1972 the year the godfather movie came out. Drama, chemical giant. Because of an internal investigation into its Accounting Practices and thats why. Almost 32 down right now. Thanks so much, christina. For hpe, that company repairing nhelts in the top of the hour isow t time to get in given that weakness, looking at the closing bell. We will be right back. Complexity. Healthcare payments are filled with it. Wasted time, inadequate resources. 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Before investing carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com. A reminder not to miss a new cnbc documentary, bigshot the ozempic revolution. 10 00 p. M. Eastern, tonight do not miss that. Hpe and dell in the top of the hour in overtime, we will tell you what to watch for. We will take you inside the market zone and will do that next. 5 apy . Thats new yup, thats how you business differently. Whoa, how did you defeat them . 5 apy . Thats new with a little kung fu strength and by connecting my devices to the most powerful force of all. Skadoosh. Hah, huh . Cool right . Amazing. Harness the power of xfinity internet and stay connected to the things you love. Ah, theyll be like this for hours. Hello dad, hello dad, hello da. Uhoh. Good bunnies. Ahh hi, im greg. I live in bloomington, illinois. Im not an actor. Im just a regular person. Some people say, why should i take prevagen . 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We are in the closing bell market zone, were here to break down crucial moments of the trading day plus watching two tech earnings out in overtime, steve kovach on what to expect from hpe. Christina is back to look ahead to dells results, i will turn to you. 16,057 44. We are well ahead of that right now, the alltime closing high since the november 2021. Its been a long repair process in that part of the market, it peaked before the rest of the market and it has been slower. It is a system of the fact that investors are going to second and third tier plays feeling more comfortable about the macro outlook, you have this upturn in annual earnings estimates, with pce today, not a dramatic market response but it is worth keeping in mind that the s p was a third of a percent drop before the drop. There is genuine comfort being spread by this, i do think we are at a point where you can say the market has passed so many test that im on the lookout for what could aspect upset the story a little bit. You have to be, yes, it is one of those deals where you no longer have to persuade a lot of people that the economy is in good shape, the fact the fed will not cut rates six or seven times in the market is okay with it is something people needed to be convinced of, i was saying that for months that the market was not here, now it is in the price. I think it is a bold marketing you give the enefit of the doubt for the bulls in that case, the first double not dip will not be nasty, you got into a point where you can respect the tape but not extrapolate this kind of move for directly for months to come. The dow was not doing much today, up nearly 100. The nasdaq is up 162 points again, this would be a new record close for the nasdaq if it closes above that level that we said earlier, 16,057 for your report. [ applause ] the bell is not ringing yet, the cheering has started. We will put in our fourth straight month of gains, we have more coming, steve kovach. Theres a bit of an ai story with hpe, theres that fast growing segment for High Performance computing and ai, that was up 37 this last quarter, the segment was growing faster than ever, intelligent edge was 41 , very high margin business, the storage and compute segments are shrinking, expecting sales to be down year on year. Hp buying juniper networks, they announced that last month. 14 billion deal, that will help with Edge Computing and ai. Thank you very much, christina is back with us looking ahead. Dells results . They are thought to be in a sweet spot. 60 of the server market, 35 storage, 18 of the pc market on dell. Softer pc sales impacted both hpe and best buy earnings recently in the near term. Thats why they expect q4 revenues to stay in line at best. It is a longterm setup that makes this name a favorite among analysts, their data center is largely enterprise firms which was a customer segment yet to pick up ai demand. Ai server revenue can go to nothing to 50 of total earnings by 2027. Thats why tenants focus will be around pc recovery, last quarter was on one. 6 billion. Thank you so much, we will turn back to mike sandle lee. We have just about a minute, what do you think of a rate alea saying i dont really see it. I see a lot of them honestly, how many have actually been even over 50 years . I do not think it is surprising to say things might be expensive, we have to buy them psychologically by the public. The bubble will plausibly go down 75 . To go back to the manger and, that is not anything like we can think about bradley. Obviously if you sought in the best regards parts of the market the past three years ago, three years plus of their market low which was a modest market. Its a little early to be talking. Another big month for stocks, just about in the glow. A new alltime record high. I will see you tomorrow. There it is, record calls for the nasdaq and s p. Even the dow has to do something in the last hour. This marks the First Closing high for the nasdaq since 2021, that is the scorecard on wall street. I am john ford, Morgan Brennan is off. Major averages are now higher for the fourth straight month, the s p and nasdaq closing the best monthly returns since november, asked getting set for another busy