i'm sure the hot dogs will stick around for a long time. i think we're out of time but look at the dow moving higher, 0.4% but still counts as a gain and nasdaq leading the way as we're getting ready to turn over the reins. thanks for watching "power lunch." >> and "closing bell" starts right now. welcome to "closing bell." i'm mike santoli in for scott wapner. this make or break hour begins with stocks working hard to hold gains for apple as the street waits for a pair of crucial events in coming days. nvidia shares up pretty small, especially for nvidia. ahead of ceo jensen huang's keynote in the next hour. you see it up less than 1%. while treasury yields pushed to three-month highs as suspense builds over a fed meeting that comes after an uptick in inflation that stoked more uncertainty over the outlook for rate cuts, 4.35 on the ten-year. the s&p 500 has been higher all

day. it is definitely a top heavy move. you see it up 0.8%. the equal weighted up too. nasdaq up by a full percent. alphabet as mentioned popping this morning. it is now up about 4.3% and the biggest upside contributor. apple is ahead as well, 1.4% on reports that apple might use google's zoo -- a.i. capabilities in the iphone. crude up another the high since halloween. it leads to the talk of the tape. based on a goldilocks economy, a.i. excitement and prospect of an easier fed, is the playbook changing? let's ask adam parker, research founder and ceo at a cnbc contributor so. adam, yeah, those have been the narrative threads that worked pretty well.

almost no pullbacks. some pockets in the market in the last couple of weeks and things have cooled off but not fallen apart. where does that leave us? >> i think the bull case is still intact, right? if the average company can have gross margin expansion and if i start thinking earnings will be up for the next few years we'll be ahead 25 versus 24 and if i think the fed will be accommodative, i think that's a pretty good three-legged stool for optimism. the things i'm monitoring, i guess to get cautious three things, does china continue to look bad not improve the fundamentals, the u.s. companies' exposure there? look bad? maybe i've gotten positive data points lately but we will see. u.s. consumer, does it slow? i was worried when discover reported then got bought and there's pockets at the subprime but in aggregate the consumer is in pretty good shape and the third thing is maybe don't worry

about the front end with the fed but quantitative tightening and the balance sheet you worry about but that's how i'm weighing it and still skewed to the positive in terms of risk taking. >> so, does that mean also on a tactical basis you would just stick with what has gotten us here? i mean, you have seen thing, for example, i mentioned the pockets and crypto had this huge -- it's backed off a little. >> yeah. >> you've seen a few little hints that the market is sort of saying enough for now on some of the hot stuff but what about tactically? >> most of my clients are institutional investors trying to beat the s&p 500, so they're never going to be too big in bitcoin miners or uranium for whatever. i think they are focused on how to play a.i. so to me that trend isn't in the price over a three to five or ten-year view, may be a little ahead of itself tactically. for me there's lots of stuff to own if you say, hey, this will last three, four, five months,

fear of missing out and i'll run toward the bubble as opposed to away from it. then you still want exposure to a.i. semis and software where revenue is accelerating and balance it, which is what we do we offered a note five ways to find something that's not correlated to the a.i. trade in semiconductors or maybe you own energy in copper where you pointed out, crude sup a little bit. so i think there's ways to balance the portfolio, but i don't think you want to run a fund and say i don't want anything related to a.i. that doesn't seem right to me. >> arguably that's what the market in aggregate is doing in a way. not quite as all in on one trade. we are less than an hour away from nvidia ceo's keynote. kristina partsinevelos is there with more on what we might expect, kristina. >> this used to be a few hundred people and now expecting 11,000 in this s.a.p. arena in san jose

for jensen huang's two-hour keynote. it's, yes, a developer's conference but his words could help add sustainability to the entire a.i. ecosystem which is why so many are paying attention. investors, first expect nvidia to launch a new gpu, the b100 which could be two times the performance of its previous h100 chip. nvidia doesn't usually provide pricing but i've seen estimates anywhere between $40,000 to $50,000 for this chip. and we will hear more products from cpus and how to do better. extending beyond the pockets of meta and into health care, government and sovereign wealth funs and lastly, inferencing so that's where you use trains, large language models to spit out answers to your queries as a

next step of the large language model train. nvidia and demand is expected to grow and be a major driver for the years to come. the bottom line today is about demand sustainability. investors want to know is the pace of demand going to keep up, you know, one to two years from now, even beyond that? they'll also want to see how that $1 trillion total adjustable a.i. market can go to 2 trillion in just five years and in turn justify owning this soaring stock, which i know you pointed out was up over 2% earlier today. now down ahead of jensen huang's speech. >> it's gone a whole day with a new all-time closing high and it's been a rough patch. you mentioned that huang is expected to give some kind of hint on the sustainability of demand looking out toward the horizon. the company is only a few weeks

out of its -- from its earnings report last time. is there a likelihood he will have, you know, things that are tangible about that supply and demand dynamic at this point? >> honestly i would say no. we already heard that. he mentioned in dubai not too long ago, so there are analyst notes guessing he'll say it will be roughly $500 billion per year which would obviously be a number we can work with, but in terms of putting financial targets, usually this event is about new products, right, and about how that demand is expanding to other facets of the economy and i think that's where they're going to lead with and the collaborations which i didn't even get to, the collaborations with other companies like micron, like broadcom, perhaps intel, again, i don't know. i'll get the information as everyone else in just an hour but these are all big movers for other names within this space. last point, the stock down four

or five sessions last week and concern that maybe this is a sell the news kind of event. you saw selling heading into this event and yet the stock keeps climbing ten weeks in a row weekly gains even with those drops last week. >> yeah, for sure. you know, i would expect big picture vision and we'll pick it apart once it's out there, kristina, thanks very much. adam, you mentioned before that you didn't think that maybe all of the upside for a.i. across the market is sort of in the price. in what way? >> there's the revenue side where nvidia is clearly the biggest beneficiary and then there's the cost benefit side over the next decade. you're just starting to see companies talk go it so i think that's what i mean when i say it could be a decade long. anyone with a lot of data about their employees and about their customers is going to try to get more efficient and that will take years to unfold. i think the other thing about nvidia, i wrote this note a few weeks ago, the nvidia guide trade. if you don't it, what you're saying is you're you think it's really close to the peak and you

know that even though you probably missed most of the first 2 trillion and will go down 30% which everyone expects at some point as soon as they're three months away from meeting demand and buy it at the bottom and ride it for the next ways up as though you weren't at the previous one. there is inherent arrogance in saying that. i'm running a fund, i want exposure to the biggest investment theme over the next decade. this is the best product from the best company in the early phases of its appointment. you can do what you want to say who are their customers and how is it going to happen but it's still early days and we all think it will be 30% going down but it could be -- >> you sound like a passive indexer. i could buy and $1 out of every 20 goes to nvidia. >> for the biggest six or seven names you should be close to market weight. you don't know anything about the stock that nobody else does. if large beats small, that explains 50, 60% of their returns and awfully arrogant to

say i know something about nvidia that nobody else knows of the hundreds of analysts that's not in the price so, yeah, you should be pretty close, pay low fees for that and make it elsewhere. probably prudent long strategy. >> i mean, i guess even if you are active, we've talked about this too, i mean, a 5% position is pretty substantial. >> pretty chunky. pretty chunky, yeah, that's right. >> let's bring in jordan jackson of jpmorgan asset management. jordan, good to see you. >> good to be here. >> let's get to some of the macro setup we've got going on. we mentioned the fed, two-day meeting starts tomorrow. a little bit more play maybe in what comes out of that in terms of the pacing of rate cuts and tolerance for uptick in inflation. bank of japan before that really expected to have kind of a signature landmark move. what do you expect out of it and what are the market implications? >> we think the bank of japan has enough ammo to finally get out of negative rates and think they do that tomorrow. you've got really strong wage

negotiations that are happening, so a lot of the big steel companies and big auto manufacturers have increased wages at some of the highest levels we've seen multidecade increase, largest labor union last week agreed to some pretty significant wage increases. this has been one of the criteria that the bank of japan has been looking for to get out of negative rates and growth side, they gotfourth quarter gdp revised slightly higher and avoid the technical two b back-to-back quarters. and this is a backdrop they can exit negative marks. the direction for the currency is the big question. >> it will be and the other question is, i mean, it's been one of the best markets for months and months in japan, best equity markets, you know, is it as good as it seems and can you actually buy that news? >> yeah, so the big risk for awhile there was this negative correlation between the value of the currency and the stock market performance.

it was very negatively correlated and big multinationals generate a lot of revenue overseas and have roughly negative 0.6, 0.7 consistent relationship between the yen and market from 2007 to roughly 2019. then the pandemic hit and that correlation broke down. it's actually roughly around flat today and when we look at underneath the hood, right, inflation while for consumers it's your business, it's your friend, you have pricing power now and expecting roughly 10% earnings growth coming out of japan this year. and so i think, again, there's things that finally be excited about in the equity market, right? so while there is scope for, again, rates to finally move higher, you've got to look at what's already in the price, what's already in forward markets and forward markets have about a quarter percent, 25 basis policy rate by the end of the year unless the bank of japan surprised hawkishly or the

fed surprises dovishly, i still think you've got maybe some modest upward pressure on the yen but not enough that will derail equity markets. >> you can envision a world in which japan looking to exit negative rates and get tighter at the exact moment the rest of the world is looking for an opportunity to go in the other direction. that could cause a lot of friction. so that's kind of the risk. i think there's greatest risk that the fed shows two rate cuts vfrs sticks to the three rate cuts. while over the balance of the last 18 to 24 months it's gone in the fed's direction. inflation has gradually come down and labor markets haven't toppled over but since december things have stalled out. wage inflation has proven to be sticky at 4%, 4 and a half% and

we got downward revisions on the three-month moving average when it reaccelerated to start off the year, so maybe the fed has to lean into being more patient. >> adam, i mean, i've been of the view that this bull market, this rally since october was not mainly or even like a top three reason was that fed's got to cut rates soon and deep, right? it seems like if the economy is okay bull markets don't tend to end but how do you see this after we've had all this kind of low volatility upside in the market and bonds at least sniffing out the possibility of higher for longer back on the table? >> yeah, i don't even know if i'm qualified to understand three-quarters of what he just said. i don't know anything about it and japanese monetary policy, i know even less about. i trade the yen six times in my life and lost money all six times so on the japan side --

>> must have bought it. >> i'll defibrillator to the gentleman to my left. the part that i could debate a little and i don't have a strong view is whether they go from three cuts to two in the consensus view if it matters. i could see somebody saying, you know what, good news is good. >> sure. >> let's forget all this stuff we invented after the financial crisis, bad is good and good is bad and how about just we're in this pocket where decent economic news means the fed doesn't have to be as accommodative. we're all guilty of using the last three cycles as part of our average, including covid, which don't have anything to do with the current conditions. if they only do it that many times it's good. maybe you can get a couple days where it trades off but holistically could be pretty good and earnings will be up, i think, so maybe that's the only thing i'm qualified to respond to. >> jordan, i guess the other question, the reason you might

be concerned is if you think that a lot of the stronger economic numbers have been a built of a head fake. in other words, the fed will stay too tight because they're focusing on -- they're sitting here waiting for shelter inflation to come down like everybody expects it to come down and while they wait for that, you know, the underlying economy maybe struggles more but hard to find the evidence of that. >> yeah, but importantly they situated themselves where they're not going from, okay, three to two cuts, so long as they're not going back to hikes. >> yeah, sure. >> that's really the key from a macro standpoint so long as the fed remains in this sort of cutting bias and that's three, two, one, i think that's generally pretty supportive. they think rates are restrictive and if you go back to 1980, there are 14 calendar years where there wasn't a recession. 13 of those 14 the equity market was positive and we had a hangover from the tech bubble

one year so this is a micro environment that adamtalked about that is supportive earnings growth and macro environment that the fed will go towards easing. >> i agree. if the fed hikes i think we're selling all. i agree with that but, look -- >> it would also take time probably for them to get to that point of making that. >> they need different data on jobs andinflation. our website, you search it and zero search results. i see so many opportunities to buy things underneath that it feels optimistic about security selection, active security selection and the risk/reward is still positive. >> 1985, i have been bringing it up as the ultimate soft landing if everything went perfectly, the fed cut twice, july and december after a long tightening cycle so i'm sure that's in your data set of markets that treated it well. >> yeah, but there was still

scope for the unemployment rate to keep coming down. >> that's a lot of the other stuff doesn't match up, exactly. we'll pick and choose as we can. thanks a lot. >> good to talk to you. >> let's send it over to steve kovachfor a look at the biggest names moving into the close. >> pepsico shares are popping about 4% today after analysts at morgan stanley upgraded the stock from overweight to equal weight. morgan stanley predicted fundamentals that the company will hit bottom in the first half of the year and rebound from there. and then shares of shift4 going down 7% or here after bloomberg reported the ceo told employees on friday that outside offers to buy the company weren't enough to make a deal according to the report. the shift4 board thought the oftens did not, quote, sufficiently value the payments possessing company, mike. >> all right, steve, thanks very much. we are just getting started here. oil prices climbing to a four-month high today. up next we're drilling down on that big move.

rbc's lori calvasina will tell us why and the other parts of the markets she's banking on ahead. we're live from the new york stock exchange. you're watching "closing bell" on cnbc.

my name is oluseyi and some of my favorite moments throughout my life are watching sports with my dad. now, i work at comcast as part of the team that created our ai highlights technology,

which uses ai to detect the major plays in a sports game. giving millions of fans, like my dad and me, new ways of catching up on their favorite sport. welcome back. a.i.-related tech has been the spotlight for most of the recent rally and energy stocks have quietly moved into a leadership position with the sector becoming the best performer over the last month. our next guest sees more upside ahead. lori calvasina is here. good to see you. >> thanks for having me. >> this in the context of a broader market feels like a lot of your work is pointing to fairly valued, perhaps, but there are things to do maybe on

other areas. why does energy get in there. >> i was talking to some of my salespeople and said sectors just haven't been that interesting of a discussion lately. >> that's true. >> all of a sudden energy got really interesting and just sort of had this big move and been overweight and viewed it as an inflation hedge and guess what, everyone got worried about it so it's doing what we hoped it would do serving the right function but it's cheap and my analysts like it much more than my analysts in other sectors so think that's an important read on fundamentals and money flows if you look at the epfr data it's starting to shift back. commodities, materials, energies, industrials, kind of cyclical areas that show benefit if the economy is running hot the way everyone is worried. >> is that your read? the underlying commodities have had a move as well and feel that's a global demand overlay. >> i think it's the u.s. is running pretty hot, obviously there's geopolitics when it

comes to energy but i do think there is a begrudging acceptance that we're not on the brink of recession and things are not that bad and maybe not so much the last couple weeks but maybe about a month ago or so there was a conversation about a bottoming in china we were hearing about so i think we're kind of in this weird healing process and energy is benefitting from that. >> you do mention the general acceptance. this embrace of the not just no recession but things look like they're humming along well and felt like that motivated a lot of people to allow equity exposures to go up and buy into the market as it went higher. are you struggling to substantiate possible further upside in the index? >> there are conflicting cross currents and in my meetings we talk about it. on the more constructive side it's been moving to upside of 5400. that's if you buy the idea that interest rates are going to moderate, the fed will do a certain amount of cuts and inflation will come down, and

maybe those are a little aggressive. we wrote about that in our weekly and said if you leave interest rates where they are and, you know, depending on earnings view it's more like 5,000 to 5200 so right where we're stalling. sentiment is a problem. people don't feel all that great when you talk to them. they're in kind of a bad mood. but if you look at the positioning data on cftc it's pretty scary and starting to retreat. so i think we're going to have a pullback. i've been saying that since january. it hasn't happened but it's going to come sooner or later. >> no, it's -- the part of the market that has i guess like prevented that from really taking hold is so hard to handicap, right? >> right. >> it's kind of like the big growthy stuff, they can work and the index will move away. >> yeah, i think it's an interesting debate, right, there is this view if those stocks break down or stop leading it will be a disaster for the whole market. and i can see that argument but i also, you know, sort of view it as raindrops in bucks and i'm an old small caps strategist. if you take a little money out

of some of the big seven names and put it in the russell 2000, it is more than some of the big cap names so it's a question do they really run into problems and fall? do they just take a breather and stop leading? do people divert more money and reallocate their portfolios? i think the market can still do fine. >> i was pointing out tesla lost 700 billion in market value peak to now and, you know, it got absorbed somewhere else. >> remember, you know, november and december was a pretty violent leadership rotation and market surged. >> that's true. >> if you look at february small caps outperformed and the market held on pretty welland we've had a good start to this year even though you have had row face underneath the surface so i think the market can handle rotation. does it contribute to some of those speed bumps that might be nasty for a short-term period of time? i think that's possible too. >> that's been the focus on just the momentum factor and whether that unwind really destabilizes something else. now, you mentioned small caps a couple of times.

what is your stance in terms of large versus small? >> so we've -- it's funny, this maybe happened earlier in february than i anticipated but we basically said coming into the year small caps got too consensus in december and i was talking go it in too many of my meetings with nonsmall cap people and said i'm not used to being the popular girl at the dance. and so that just felt a little uncomfortable so i think it was natural to take a pause and basically that november/december move was about the fed cutting rates and we said, you know, our positioning data, our valuation data looks middle innings so we think there is another inning but people need to get convinced the economy is running hot for that to sustain and probably need to get to the cuts because until we get to the cuts, i don't think people will be convinced the fed can do what they're doing and the economy is not going to take a bad hit. >> so with that said, what are you expecting out of the fed and maybe where is the market leaning? >> so, i witnessed just like so much angst over the fed. i mean just this dialing down of march cut expectations was

really weighing on people, you know, pretty significantly the last six weeks or so so i think a lot of that is kind of working its way through so it's all about the commentary. i won't predict what powell will say but i do think we're in the part of the market where the reasons why they're doing what they're doing matter a lot and so, you know, any kind of discussion of a hot economy, you know, sort of how things are trending in the labor market, what they need to see, i think they will impact my world. you know, i'm fortunate rbc my guys are always looking for cuts since last summer so they're now looking for three cuts in the back half instead of five and dialed down like everyone else but hasn't been as much of a journey so hasn't caused us as much angst. >> presumably he won't go back to we need the run the economy cool to do the job. >> i'm not the expertofn the fed but that's what i'm hearing and was always confused people thought the fed needed to destroy the labor market to justify cuts. that was never our house view

and felt like i was never hearing that. >> all right. we'll see where it goes, laura, good to see you. up next your goldman sachs market playbook and elizabeth burton is back and will explain her approach to diversifying your portfolio. the two is she's excited about. "closing bell" will be right back. [♪♪] your skin is ever-changing, take care of it with gold bond's age renew formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond. ♪ ♪ of 7 moisturizers and 3next.mins. next. stop. we got it? no. keep going. aga... [ sigh ] next. next. if you don't pick one... oh, you have time. am i keeping you from your job. next. i don't even know where i am anymore. stop. do we finally have it? let's go back to the beginning. are you... your electric future. customized.

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welcome back. stocks bouncing back today with alphabet leading megacap gains as the fed prepares to meet on rates this week. joining me here at post 9 with her investment playbook is elizabeth burton, client investment strategist at goldman sachs asset management. good to see you. >> good to see you too, mike. >> to focus on the big asset allocators and what they're up to and what the market might be giving them right to work with in terms of achieving their goals. i've been hearing a lot about being able to lock in returns at attractive levels for the first time in a long time. is that still an active dynamic? >> right, i think that's very much true. the average public pension plan in the u.s. has about a 7% return hurdle. somewhere between 6 1/4 and

6 1/2 but let's call it 7%. for a decade there wasn't a fixed income book to pull from. now you have more asset classes to pull from to generate lower risk returns potentially so you can pull back from some of the more growthy areas or high risk areas. i would say we're still at goldman bullish on equities potentially overcredit right now but you can look at your portfolio and say how much do i need to have in some of these riskier assets and can we look at new sorts of investments. a good investment is infrastructure. it's only 20 years now and nascent in most. if you think about private equity which in some public pensions is getting off the ground, some of them aren't even at target, that's been around 50 years so to say 20 years in infrastructure, that means you have 30, 40 more years for that to get off the ground and become a bigger stronghold in portfolios, and one of the reasons i believe that institutions are looking at them

are there are a lot of tailwinds but also might be a goodie verse phier to portfolios right now. >> i was going to say, we all know generally what infrastructure is but an investable asset class there's funds hydro power or pipelines. what does it surprise and what are the return characteristics and how does it diversify away from other things. >> you went right to hydro power but most think steel, concrete or the road i drive every day has so many potholes but you're right, it's not just steel and concrete anymore. it's a lot of thing, fiber, renewables, data centers and it has a lot of the same things we've been talking about in our 2024 outlook and 2023 outlook which is the 40s, deglobal si says, demographics, digitization and i'm forgetting the fourth one here but has those tailwinds and have regulatory tailwinds and typically asset heavy, some have pretty strong cash flows and they have inflation protection either regulatory or

embedded in contracts or they have such a market share they can pass some of those onto the consumer, really this is a position of strength and see tailwinds going on for decades. >> all right, so infrastructure is the first "i." india is the other one. a market a lot of folks had high hopes. why do you think it's time. >> we're not novel saying we're constructive on ingdz ya but we are bullish on them and we've seen a pretty good rung. why we like india, we like emerging markets in general and think there's a lot of opportunity there from a growth perspective but in india you get a lot of visibility into earnings which you might not get into other emerging markets and been consistent over time and when we say there might be double digit eps growth we have more confidence thank we might have elsewhere and similarly it has a lot of tailwinds behind it as well. >> because of just transparency of reporting you have that visibility in earnings or just because of the, you know, the

fundamental drivers? >> i think it's a combination of both of those things which should give investors increased confidence to look at those markets. we are seeing a lot of interest in emerging market, that would be one that we think has particularly opportunities here. >> you know, the traditional way of thinking about emerging markets when it comes to central bank policy is that fed eases, emerging markets get a tailwind. is that equation still in effect? >> so, well, i do think this year we should be less concerned about what the fed is going to do with respect to these markets, because there's a lot of uncertainty particularly in the last couple of weeks and think the generally trajectory is the same and end up in the same place but the pace of that so if you're going to look at emerging markets i'd be thinking more over the long term, i think in the shorter term, look, we usually look at emerging markets when certain things happen with the dollar, right, but i think we could be in a scenario in a year or two where the dollar's position has changed and do we want to in a year or two start thinking about where we want to be in the world or think about it now and get in before there's

massive flows going into that area? >> sure, india i guess is not really an export driven -- i mean it's what's going on there, domestic economy. >> right, you've got other things there that may help diversify your portfolio so i think if i add it together, consumer discretionary and info tech in u.s. markets, it's 42, 43% in india that's closer to 27%. so we can addie verseification if not just an outright bullishness on the market itself. >> good to see you. thanks a lot. up next tracking the biggest movers as we head into the close and steve kovach is back with us. >> yeah, we got two executive departures sending shares of two very different companies lower today. we'll reveal those names when "closing bell" returns after "closing bell" returns after this.

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18 minutes till the closing bell, s&p up 0.8%. back to steve kovach for a look at the key stocks to watch. >> shares of computer accessory maker logitech falling better than 6% after they announced their cfo was leaving the company for another job. shares still fell even though they reaffirmed its guidance for the 204 fiscal year which ends this spring and move over to hertz. also slipping today. shares down about 5.5%. that's after its ceo steven sher

announced he would step down and gill west, a former delta air lines exec will be the next at hertz and sher took over as the company tried and failed to transition to electric vehicles and was forced to sell thousands of its evs last year due to lack of demand, mike. >> all right, steve, thanks very much. still ahead, a big tech double play. meta and netflix shares on the rise. what is giving those stocks a boost and what it might mean for the megacaps in the long term. "closing bell" will be right back.

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our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. welcome back. nvidia's massive run-up might have some investors feeling some fomo. if you missed out on the nvidia bonanza, cnbc pros are laying out other investments to see huge growth. head to cnbc.com/propick. don't miss the highly anticipated keynote from jensen huang kicking off at the top of the hour. up next, alphabet shares popping on the possibility of an apple a.i. tie-up. at've got all those details. th and much more when we take you inside the market zone.

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alphabet share, they fell back in late february but on today he report, they're up as much as 7% at one point putting it ahead of microsoft's performance over that time frame. now, a deal to license a.i. features on the iphone would be a strong review to the bears who is oworried they're falling shot and having trouble monetizing it. an a.i. deal could give it a boost in these early innings here but, of course, there's a lot more that's going to be happening over the next few months that could reshuffle the perceived winners and losers again, google io is on may 14th. microsoft build is a week later then you have apple wwdc in june. you know, a lot of people are talking about where this puts apple but i don't think anyone is counting them out just yet. >> sure. i guess a couple of things come to mind. first of all to the degree this

is something like this is going to happen, it definitely suggests there's no kind of winner take all situation when it comes to these a.i. tools even if it's specifically for search and i guess the other one, it's kind of a vote of confidence for gemini but is it because it's a little ahead of where apple is gets to your final point. >> no, it's true and is this really validation for gemini? yes, on one hand it would give it huge distribution which was so pivotal for search being on the iphone but at the same time it's a race so up and down and that report said that apple was also looking at openai and considering partners with them and language models are coming out so quickly and getting better and better, so who is on top is constantly evolving and looking to those three massive events, everything could once again change. >> yeah, i mean obviously such a sense of urgency for all these companies to kind of be there where it's all happening.

thank you very much, d. julia, more street bullishness on netflix and meta. >> that's right, netflix shares up 2.5% after price target was raised to $700. loop raises estimates for subscriber editions as well as eps saying near-term engagement and long-term macro and competitive trends are positive for netflix and jpmorgan reiterated its overweight rating on the stock saying, they, quote, remain positive on netflix's ability to accelerate revenue growth in 2024. meta shares are also up 2.5% that's on its price target saying they expect add pricing for relation to grow with add units and improved performance and project facebook's shop e-commerce ad also accelerate from international launches as well as partnership within amazon and wells fargo reiterated its strong preference for shares of meta versus

google. despite the fact that year to date meta has outperformed saying that meta is regaining ad market share. back over to you. >> i guess in both cases, julia, the analysts are betting that the good news is not quite in these prices. that $700 price target for netflix would get it above its former all-time high below that level and wondered about the ad business of netflix and whether, you know, analysts seem happy to put it out there as another growth driver even if it's not necessarily, you know, reason one or two to feel like, you know, it's going to be driving earnings this year or next. >> yeah, look, they're talking about the ad business and netflix being incremental revenue streams and another way to not only generate new revenue but bring people into the platform at a lower price point so sort of the duel ben-- dual benefits. this idea that there continues to be cord cutting, netflix will benefit from that and maybe people will have fewer

subscription services but netflix is likely to be one they hold on to and when it comes to meta, these are sort of notes of optimism going into the next round of earnings saying they believe that meta will continue to deliver these various factors that they've laid out as growth drivers for the next year or two. >> yeah, so the winners keep winning basically in ♪ bases. julia, thank you. so, tesla for a change getting a little bit of a bounce, what's behind that? >> hard to know if there's something specific, mike. there are a couple of people who have been speculating online because they'll be raising prizes at the model y in europe next week and the u.s. later in april, that this perhaps is going to boost the sales a little bit or deliveries a little bit in q1. this comes at a time when goldman sachs out with a note cutting estimates and price target down to 190 and cutting delivery estimates citing ev headwinds and they expect 435,000 vehicles to be delivered down from 475 and now expecting

fewer than 2 million deliveries for all of 2024. just as a refresher the company delivered 1.81 million vehicles last year and the estimate out on the street is for 2.06 million to be delivered this year, so now you've got goldman saying, i don't think they get to 2 million. take a look at shares of tesla over the last three months, remember, even though the stock is down 25%, yeah, a bit of a bounce and the next real catalyst won't come for a couple of weeks. that's when we get the q1 deliveries, that will be happening in the first week of april. mike. back to you. >> i've been trying to puzzle out the implications of reports about potentially raising prices in europe. i mean, clearly, the need to cut prices and the sacrificing of margins has been a big overhang on tesla, but when you still hear about byd cutting globally their prices, i wonder how to make sense of this potential move in europe by tesla. >> and the argument is that

they're -- they're going to raise prices because they're trying to clear out inventory right now. either way you look at it. it's not a real good picture here because if you do clear out the veepts, fantastic. when prices go up, going against the price cuts that we've seen from byd and other competitors whether in china or europe it's not a good environment for tesla or all of theev companies because of the price cuts put in by the chinese competitors. >> phil, you've made the case constantly that obviously there's a lot. demand for hybrids. nobody feels like they necessarily want to or teed to be forced toward an ev. what does that mean? i think in the here and now for the traditional u.s. automakers there's bullish commentary on how throttling back is a little psychological boost. >> well, i think they continue to do that, mike. i think they're going to be judicious in terms of how much capital they plan to spend at least over the next year or two years when it comes to ev

development. the stuff that has already been allocated they'll go through with that but the longer term investments when you get i into '26, '27, i wouldn't be surprised if you see those get pushed out further. the longer this goes that people are prioritizing hybrids over evs that gives them less incentive to spend more or allocating more resources down the road. >> absolutely. yeah, they'll take it slower, phil, thanks very much. we got about one minute left heading into the close. you see the dollar has gotten a little boost. people are trying to knit together what it meanings for the fed to cut fewer times here. nasdaq 100 has been up 1% all day. the biggest upside contributors to the s&p 500 move today, google by far, followed by tesla, meta and apple so very much a megacap growth story and this is all happening in the face of still pretty aggressive increases in treasury yields. we hit about 4.34 on the

ten-year earlier. we are now around 4.33 as people again try to handicap what these inflation numbers might mean, what the fed has to do over there. even though the s&p up about 0.8%, only 52% of u.s. stock exchange volume to the upside. that will do it for "overtime." morgan brennan and jon fortt now. >> stocks edging a bit of a comeback after last week's losing streak although closing well off the highs of the session. that is the scorecard on wall street. welcome to "closing bell: overtime." i'm jon fortt with morgan brennan. >> tech really did the heavy lifting today. investors have been anxiously awaiting jensen huang's keynote address at his company's developer's conference all day. he is just moments away from taking the stage so let's brin