right way, maybe it will be one day. >> you never know. that's the goal. we'll continue to build value not only in our stock price but also within society and bringing communities together that's what we're trying to do >> good luck with the commanders this year, looking to living in my hometown, arlington, virginia, it's a great place great place. austin ekeler, good luck to you this year. thanks for watching "power lunch," everybody. >> "closing bell" starts right now. welcome to "closing bell" on this friday, i'm scott wapner live from post 9 at the new york stock exchange, and this make or break hour begins with the run to record high probably won't get there today, but sure looks like that's the direction which we are heading we're going to ask our experts over this final stretch how far this bull run can go in the meantime, your score card with 60 minutes to go in regulation looks just like that. it's been a mixed day for the majors we are green across the board for the week that's the important part. we closed above 5,200 for the first time in a year yesterday -- i mean in a month,

and we're hanging out there now. utilities, financials, they are among the standouts this week. yields are up a bit too on some hawkish leaning fed speak, and we're going to get to that in a minute as well it does take us to our talk of the tape the rally, how resilient this market can remain. let's bring in kevin gordon, charles schwab good to see you. it's been a minute. >> nice to see you >> this market's been incredible it's been resilient in the face of so much theoretically it's had this nice bounceback. what should we make from it? >> i think what's nice is through this mini pullback correction, whatever you want t call it, you've removed frothy sentiment as a pretty big risk that had been a risk from mid-november up until march where you had seen indicators on the behavioral and the attitudinal side that had gotten way into excessive optimism territory. as we know from history that can happen for a while until you get a negative catalyst to tip you over that negative catalyst probably ended up being inflation, this reacceleration that we saw in the first quarter. now that you've taken that back, earnings season for the most

part has generally been pretty good maybe less good on the sales side, but overall, i think there have been enough catalysts to keep you in this uptrend and sort of that broader picture going back to late october and the late october low of 2023 keeps you in the sub -- >> the key catalyst if we want to call it that, everybody is sort of coalescing around the idea that the fed chair changed the game at the meeting. he was not nearly as hawkish as some had feared he would be, and that's really why we find ourselves now where we are >> i have a little bit of a different view only because if you look at the shift in market expectations that we've seen a lot. there's been so much whiplash since the end of last year, when you really started to get favorable readings on inflation metrics. everything was pointing in the direction of right at 2%, maybe sub 2%, but if you go back to some of the commentary from powell himself, december and january, you know, there was no major pivot.

i know that in the sep there was an indication that on average fed officials were expecting three cuts this year even powell himself in january said we're not going to declare victory, it's premature. i say that to say and reaffirm the point that it's not the fed that has changed its tune. it's just the market that has had to adjust. >> let's discuss that. we've had these hotter than expected inflation reads, and we many a bad gdp read, so you know, all of a sudden we're sitting there, okay, now are we going to get any cuts at all is he going to come out at the news conference and be really hawkish, and is that going to be a problem? we have to worry about stagflation. so he comes out, and he says hikes, more hikes unlikely uses that word, right? highly unlikely. >> right >> no stag, no flation yields come down yields are down considerably since that day stocks are up. it's directly correlated >> if you look from -- at the point that the market started to aggressively price in cuts up to 7, if you want to go from that period from sort of late fall into the end of the year and at

sort of the max point was january of this year when you got to 7 at that point, yeah, that coincided with some weakness because under the the correction last year from late july to late october. then of course with the turn of yields, that helped propel stocks in the opposite direction. but since then as we've gone from pricing in seven to maybe just one, now to maybe two, the market still rallied that's the disconnect there where i don't think that the market is purely just trading off what the fed is going to do this year. >> if he coulhad come out and s or even gave you the glimmer that another hike was on the table, we would not be where we are. >> they always entertained that as an option. >> yeah, but the way that he came out and wasn't nearly as hawkish as some feared has to be a considerable part of the story, and so does the sector performance, let's just take this week. utilities are leading the way at 4.5%, financials, materials, industries, are you telling me those sectors would not be leading this market if rates

were still 20 to 25 basis points higher where they were around fed day, and he was hawkish. there's no way. >> but even if you look at the leadership profile since late march, i mean, you look at what's been leading -- and i'm sorry, excuse me, late february, early march, that's when you started to see a shift where technology kind of took a step back, hasn't really participated as much since then, but the three top performing sectors since that time, since the beginning of march have been utilities, energy, communication services so that's a traditional defensive area, that's a traditional sort of deep value area, and that's a growth area that are all leading i'm not really sure what the market's message is there. so it's not a clear cyclical risk on tone, but it's not a clear all in defensive tone either i think that's consistent with where we are in this part of the cycle where nobody's sure how much of a reacceleration is to be believed, whether we start to turn lower from here or that brings cuts back on the table for the fed. now you reintroduce a little more on the labor weakness side

and the consumer weakness side where i don't think we're in dire straits right now because of one jobs report that got you down to 175 and payroll, the unemployment rate tikd cked up little bit you reintroduce some of that and it fits with at least how we think about the fed cutting potentially, which is inflation and disinflakes, ttion, the tres the stage for them to be able to cut. a lot more members have mentioned this is weakness in the labor market, if the unemployment rate was to gain more momentum to the upside. >> we had a special event really in the last hour, an exclusive with president schools by and kashkari up in minneapolis, steve's with us now. wanted to catch you before you got on your plane to come back i thought this was significant, steve, in that, you know, it almost feels like now the fed chair is on the island, and almost everyone who's coming out certainly today -- and there have been many -- who definitely have a more hawkish tone certainly kashkari

e. >>. >> yeah, well, i think the way to think about, that scott, is you follow the data. i think what you're talking about to set the whole scene, you know the news like the back of your hand, in case people weren't watching, logan came out, bowman came out, said she didn't think they should cut rates this year. logan asking the question maybe the fed is not tight enough. that's from dallas, and then we had kashkari on who says, you know what? well, you know what, let's listen to what he had to say the good news here is he's not talking rate hikes, so let's hear what he is talking about. >> if we get concerning inflation data continued, we're going to sit where we are for an extended period of time. i think that's the default if the labor market stays strong, we don't have to do anything we can stay here as long as needed >> now, i don't think austan goolsbee's viewpoint is any different from that given the scenario, where austan may be a little different, is he seems to have more optimism that inflation is going to work itself out he will keep reminding you that

we had an historic decline in the inflation rate last year obviously not the price level, but the rate of inflation came down very precipitously. he's a little more optimistic. he does not accept the idea that we're in this last tougher mile of inflation he seems to have expect that the inflation progress of last year can and should continue this year >> i also, to be honest, was struck by the issue of rents, right? the fed chair at the meeting had you believe -- and he said it numerous times -- that he believes it's a lagging indicator, that rents are going to come down he sounded pretty confident in that if you listen to these two gentlemen with you today, man, they almost talked as if it's a leading indicator to them still that the stickiness there or as i think mr. kashkari pointed out, the tick up in new leases gets him a little bit worried, so i wonder if we have differing perspectives on that

>> well, you're 100% right to point that out whether it's leading or lagging, the fed can't get there from here if indeed housing inflation is not going to fall that is a prerequisite for the fed getting back to that 2% inflation level. you've got to remain at 5, 6, 7%, it's not going to happen on the 2% target, so therefore you get into this thing. goolsbee calls it a puzzle, kashkari's a little bit more worried about it, and as you said, powell is kind of -- i don't want to say doubling down, but more confident in his forecast that the decline in housing rents has to show up in the cpi. it is a puzzle, scott. we don't know quite what's happening. we do know that market-based rents and other data from that have shown a decline it hasn't shown up in the cpi. what we do know is that if you're going to get to 2% inflation, those housing numbers must come down. >> it was great stuff, and it's rare to have two presidents together live on television, safe travels back. i appreciate you spending some time with us

steve liesman, our senior economics reporter kevin gordon, off the macro and back to the market, do you believe that the trades that have worked this week, the sectors that have outperformed as i said utilities, financials, materials, industrials are now the place to be, that the economy is going toe remain god enough, irrespective of what the fed does down the road the market dynamic has shifted enough >> yeah, we think it has i mean, if you look at even our sector model has a couple of those has outperformed, financials, materials and i would add energy the move in utilities, i think if you were to take it back to what we had seen back in october, specifically for the utilities sector, not only did you have it relative to the s&p 500 fall to a new all-time low, but in absolute terms, the sector fell to a three-year low. that sector had gotten so deeply oversold it's not a surprise to me to see the run we've had since then that being said, our view that

the fed is probably at this point not going to go into an aggressive cutting cycle, that they're probably going to take it slow assuming the economy hangs in there, that's not consistent with utilities and traditional defenses continuing to outperform. i would say that the cyclical bias is there in terms of what we look for in terms of quality and everything, looks relatively strong even in a higher rate environment. >> we're wrapping up this week, and we got above 5,200 on the close. we're not going to do a new high on the s&p today, it doesn't appear, barring something dramatic in the final 50 minutes or so that we have because we need a 1% move from here how should we come away from this week thinking about this market >> i think that the s&p is going to be up about 2% this week. i think today you have a bit of profit taking going into next week's cpi, but i think this conversation around industrials, utilities, and ai, i think you

have to throw the old cyclical playbook out because they're all related. so we have this big ai spend that we get reaffirmation or confirmation from meta, google, amazon, microsoft, et cetera, tesla about the massive spend that they're going to continue to do, and where tdoes that play into actually? it plays into data centers, which plays into utilities, and so if you look at next day or nre, i think it's up about 23% this year. that's close to 15% of xlu, and then you think about industrials, we're doing so much onshoring, if you look at what's happening with intel, the chips act, ira et cetera, that's also to bring technology back onshore. so i think you have these cross currents, so i think it's really important for investors, that old playbook of when should you buy utilities. rates could actually on the back end start going up that's not great for like dividend yield and utilities but you have this other aspect, i think, of energy spend around

onshoring and data centers that's actually butting that and that is a much bigger move that could help utilities be strong for the rest of the year. >> that's an interesting play, and a lot of people are talking about that, kevin, including carl quintanilla, my colleague posted on social media the conversation that he and cramer had this morning about utilities. that they're no longer, at least now, a defensive play but rather a generational growth story as the power hungry data center drives upgrades to the grid. is there something to sna. >> i was thinking back to when bryn was talking about that, when we wrote our outlook for 2024, we do have that view, not just this year but maybe you're at a secular turning point where the ai ben fisheficiaries and t adopters start to take more of a turn there's still enough from a fundamental perspective, especially where we are given rates to weigh down on utilities, not that they have to go down. i think in terms of relative

performance, you look at the debt levels, the interest coverage ratio for that sector, it's not very high it's actually rolling over you look at the fact for the sector as a whole, the dividend yield relative to what you earn in the bond market, that spread has been slipping, and now you're kind of into a zone that is consistent with weaker returns, not outright negative, but just weaker relative to history. i do think that, yes, there's probably a secular story there, but i'm not sure given where we are in the fundamental aspect and what the market's been focusing on in terms of quality, i'm not sure that that's a long-term play right now. >> financials, we're showing them on the screen, it's number two on the list. they've certainly done quite well, it's 11% year-to-date. it's one of the top performing sectors in this market what should we think about right now? it feels like directly correlated to the fact that rates have come down there's a better feeling about how this whole thing is going to end. >> i've been i think really consistent we are very underweight financials we're trying to be away from financials i think there's better returns outside of a few individual

names. i think that we could go into -- when we look back at the end of the year, the fed could actually lower rates on the short end bubu you actually have a version of the yield curve where the long end actually goes higher and so whereas the big banks can actually do some stuff with that, i still think with the long end commercial real estate, mortgages are priced more on the long end, not the short end, and with a trillion dollars of refinancing on commercial real estate, i still have this unease that we have these land mines in the commercial real estate market and other areas that if you continue to get, once again, an uninversion, regardless of what the fed does, that's going to put some pressure on some sectors that we're not ready within financials and i think that probably brings moefsst of them down with it if that occurs. >> you like financials, don't you? >> i agree with bryn, if you start to break it up with large

cap versus small cap. >> let's talk large cap. goldman sachs has been hitting a new all-time high almost every day. jpmorgan has been doing the same i definitely think we need to separate the kind of conversation we need to have we're not talking regional banks out of the russell 2000. we're talking about large cap money center banks or capital markets focused banks, things like that. >> when we look at the factors we use whether it's quality, sentiment, growth value, that sector scores pretty well. for now it's worked thankfully for us knock on whatever here, but i think that you still have strong trends in place. the underlying breadth and internals of that sector are really strong. financials is one of the s&p 500 financials is one of the sectors that's scoring the best in terms of participation among its members. >> bryn, what about energy i think we have some differing views of late what's been a disappointing trade and fits and starts should we believers in that, asking had somebody who's

sitting in the houston, texas, area, may be a little biased. >> i'm fact-based. i'm boots on the ground. i think i have a really good lens. >> that's fair i got you. >> other people are biased and so i think that you're going to continue to have dispersion i still like the smaller names i mean, if you look at a diamondback, that stock, if you took the name off, you would think that would be a technology stock. i think that, you know, 80 is the new 60 i think these companies in general have good capital discipline the free cash flow yield isn't as good as it was last year. i think it's about 7% in ago gait aggregate. i like these names, like the diamondbacks, those kinds of names and ages we're playing it generally, so i can get some smaller emp names and not just sit there with chevron and exxon. i think that this needs to be part of the portfolio. also, energy does well in this kind of market when you're expecting rates to come down, energy is one of the top performers and i think energy is up about 11%, so it's been a

really strong performer. >> yeah, over a month, it's been the worst performer energy you like that too. >> yeah, you keep -- i mean, you go through these fits and starts we take a longer term approach past four years, energy is still the dominant performer out of all sectors. when you look at fundamentals, talk about a sector that looks a little bit -- or a lot a bit different than something like utilities. the profit boom for this sector over the past couple of years is notwithstanding the weakness we've seen over the past year has been enough to really lift that interest coverage ratio, keep it elevated, which is one of the reasons that we think areas like this can still do well even with rates really elevated we have to keep in mind, it's about risk appetite. it's not as much about the level of rates permanently affecting any given sector or any given company. if you're able to withstand it, which a lot of energy companies have been able to so far, then that ultimately is a good thing, especially in a higher pressure

economy, which we still seem to be in right now. >> let's finish by circling back to one of the areas of the market that's had it tough this week, and those are those high growth stocks, high beta stocks. like roblox, for example got crushed the other day. we had you on halftime, in which you said you were going to buy more soon and that time has come today. >> yeah, i mean, i added to palantir earlier this week, very overblown, and i added to roblox this morning i originally said yesterday i was going to wait until monday, but after the market it seemed really washed out, so i think that once again the stock will see $40 again. it's in a really strong channel. the market overreacted to this, and so i think this is a good opportunity. i can buy it around 30, probably take profits on this piece around 40. you know, in the next six months to a year, which would be a great total return >> yeah, a decent little move today, bryn, thank you, i appreciate it very much. bryn talkington, kevin gordon. >> let's send it to kristina

partsinevelos for a look at the biggest names moving into this friday close, kristina. >> move over tesla, chinese ev maker sizeker ipo'd in the u.s it offers several luxury ev models and opened at 26 bucks this morning the zeekr listing is the biggest by a chinese based firm in the united states b since didi in 2021 shares of the largest chip manufacturer in the world are also higher but up just over 4% after reporting a 21% sequential monthly increase in april sales. that's 60% higher than last year at this time those big numbers driven by demand for ai products, standard server builds, stable demand from apple and we're starting to see the seasonal improvements in hand set and pcs. >> skcott >> thank you very much up next, growingpains, a number of high profile growth stocks, we just mentioned one like roblox getting hit this

week eric jackson has been a big believer in that trade find out if he's bullish or if the recent turbulence has him changing his tune. it's friday, you're watching "closing bell" on cnbc >> announcer: this cnbc program is sponsored by truist wealth, where meaningful relationships matter most.

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stock market heading for a positive week. a different story, though, for a handful of high profile growth names, roblox, spotify, uber down sharply since reporting earnings this week a little bit of a recovery after that it's been a tough week, and our next guest says there's still more gas in the tank for that trade. joining me now, emj capital president and portfolio manager, eric jackson good to see you. welcome back it's been a while. >> hey, how are you? >> i think that's the theme of this week really is a lot of the blowups that we had, six, seven, eight names really got hammered after their earnings just

didn't -- weren't good enough. >> that's true, i mean, this is a market where you come up short you're going to get punished but looking through those examples, i mean, i think there is some good news this week, scott. ai, the big ai trade, you know, the names are much higher than they were a week ago, and kristina just mentioned it in the prior segment about the taiwan semi news overnight, their april orders being up 60% year on year so that's definitely helped those stocks the russell also is up just, you know, compared to a week ago, the vix is down, ten-year is sort of flat most of these -- most tech names, most growth tech names, if you go back and look at the charts, bottomed in the third week of april, and so despite the bumpiness and the individual names, i still think that growth is on its way up from here, not down >> why then did you exit out of

microsoft, amazon, and google? we could start there because that's what i see as part of your notes you recently got out of those stocks >> yeah, after earnings, you know, i look at -- those are all great companies, and i think there's going to be opportunities to trade all the mag 7 names throughout this year, including apple and tesla. i just thought they'd had great pots there was good news, there was sort of pessimism going in i decided to take profits. my two favorite names in the mag 7 all year and continues to this day is meta and nvidia i think those are the two, you know, solid holds for all of this year. the others, you know, some of them have stretched valuations some of them the growth prospects aren't as great. i think there's opportunities to look elsewhere in some of the smaller names, you know, wherever the valuations aren't as stretched there's sort of a growth story

emerging a lot of companies have cut head counts significantly, so they're much more profitable than they used to be >> nvidia, i mean, their earnings are looming large now we're going to have to wait 12 days or so before we get them how important a moment is that going to be for the whole market >> it's the biggest name affecting the whole market i mean, there's no one else bigger if they tanked, if they stumbled, it would have profound impacts on other names and other sectors that are far away from ai s ai, so there's no question that they -- everyone's looking to them the taiwan semi news, though, of today and just april sales being up sequentially 21% for them, and ai chips being a big reason why, i think, you know, it goes back to the story of nvidia as really the core way to play ai despite the fact that they've

had good quarters to this point i don't think it's going to be a 3/4 and done story i think it's a multiyear story, and nvidia's going to continue to move up from here. >> so the top picks you have relative to axi, one of which to be quite honest, i don't know that i've heard anybody talk about. maybe that's me, maybe i just missed it, is dell why so >> yeah, dell's reporting after nvidia, should be later this month, scott i think they've quickly emerged this year as sort of a stealth play in ai obviously super micro got all the headlines a few quarters ago for building out the data centers that are wrapping the nvidia chips but dell is, you know, arguably doing just as good, if not a better job than super micro. you know, we just heard all these -- the people like amazon and meta and google on their earnings call kind of spook the market because they talked about

how they are not stepping back from ai spending, and that's good news for the dells of the world. it's good news for the super micros and others. and so i just think dell, you know, there's obviously a consumer story, but the data center story, the ai story is one that's picking up steam big time >> you like arm holdings, right? they had earnings this week, and the reaction wasn't great afterwards >> it wasn't they bounced back today. they're up even more than taiwan semi today, i think on taiwan semi's news. i think the results were better than kind of the first reaction. they've already kind of taken some pain going into the earnings event so they are an ai story too. obviously they're more -- they make the cpus that power the ai data centers, but they've ngot close relationship with nvidia nvidia obviously tried to buy them a couple of years ago, and they've got a great management team i do think that they will continue to emerge as a very strong story going forward in

the rest of this year, and as they roll more and more chips, their royalty rates are a lot higher, so we'll see that play out in the story as well >> you like one of, gosh, what's been one of the most turbulent stocks, i think, in this entire market over the last few years that's carvana maybe the story has turned i don't know where the short interest is today relative to where it was before. my guess is it's not nearly as high as it once was. why do you continue to bereliev in that name >> it's been a binary story for well over a yeear, scott. most people thought this company was going out of business. they thought the debt was going to crush this company. obviously the management team has done a great job of proving those skeptics wrong over the last year. so now as sort of the bankruptcy fears fade, you know, the question is really like how do i value this company is there -- historically it's been a go go growth story.

there have been no profits, no free cash flow they've changed their tune now as they've gotten fit and much more focused over the last couple of years. now the question is can they walk and chew gum at the same time can they be a growth story and a profitable story, which they showed just in their last earnings report that had jumped significantly, and if they can, you know, people really will have to say, you know, where does this deserve to trade from a multiple perspective assuming they can continue to march up, they're not just a traditional car retailer, like a carmax they've got this well-known brand. they've got the e-commerce story. they didn't spend a lot on marketing in this past quarter, and yet sales jumped tremendously i still think there is gas in the tank for carvana. >> i appreciate it, enjoy the weekend. >> coming up, return to the fed put. ed yardeni is back, he says that's back, and he says there's rising risk of a market meltup

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the s&p in the green heading back towards record highs. investors turning their attention to next week's all important cpi and ppi data joining us now ed yardeni, the president of yardeni research.

good to see you. >> thank you, scott. >> what a remarkable turn since we were down 5% or so on the s&p, wondering if we were going to have a 10% correction from there, and here we are less than a percent away from a record high what should we make of this? >> it's clearly still very much a bull market. i thought we could have a 5 to 10% correction we had something a little bit over 5%. looks like we're not going to have anything like 10% the economic outlook remains really quite positive. i think inflation is going to continue to moderate i think the economy is going to continue to grow, and i think that means that earnings are going to continue to head up, probably not to a new high in the first quarter when the numbers come out, but i think over the next couple of orders we're going to make new record highs in earnings. i see the market moving higher. >> i mean, let's kick earnings around, if you would >> sure. >> because i know where the outlook is, but if you look at what just happened in earnings

season, and it's for all intents and purposes over, the growth was all from the mega caps, right? i mean, what are we going to do, less than 5% total earnings growth, maybe around 5, but the majority of that came from a very, very select group of stocks why should we believe that that's going to turn >> i'm quite optimistic at overall corporate profits. last year they came in at $222 per share for the s&p 500. we're thinking 250 this year, 270 next year, and 300 in 2026, and the reason for that is i think profit margins are going to continue to expand to all-time record highs. we have seen profit margins going up, and you're absolutely right, some of that leadership and higher profit margins have clearly been from the mega cap names. it is what it is we're talking about roughly 30% of the s&p 500 market cap being

dominated by eight names, and they're not going away, and they're going to continue to be an important part of the market. we've got a forward p/e of about 21 with them we've got a forward p/e of 17 without them the market doesn't look cheap when you look at the overall market, but then you've got to consider what you're getting for your money, and you're getting some pretty amazing companies. >> what about the sector shake-up, if we want to call it that this week is good evidence of it, right? the sectors that have done really well this week, and technology's not going to be mentioned by me, other than telling you it's not in there. what do you make of that do you believe in this broadening finally and for good? because i've asked you and others at times when, you know, we've broadened out, and it's fiz fizzled. will it this time? >> well, you know, and i think part of the broadening issue has been that the mega cap eight, as i like to call it, i watch a lot of movies, so i'm throwing netflix into the mega cap 7, and a lot of those stocks have

really seen their price appreciation, stock price appreciation so great that by comparison, other stocks that are up, maybe a piddling 20% since the impbeginning of the b market don't look that exciting. a lot of the breadth issue has been a mega outperformance by the mega cap stocks. >> i'm thinking utilities this week, financials have done incredibly well. when you look at utilities, most people look at utilities, they say, well, it's a yield play, you know, that's where it's defensive. now i hear the overwhelming majority of people suggest now these are just more ai offense plays, and others would suggest, well, that's going to end in tears. now we've taken utilities to the point of their ai plays too? >> well, i think i mentioned to you before my thesis here is that all stocks are technology stocks you either make technology or

you use technology if you don't do that, then you're out of business you're going to be competed out of business by companies that are using technology or making it, and so, yeah, i think the market is actually broadening out in a way that makes sense to me tremendous demand for power to power the data centers and naic all work. >> and the notion of, you know, what we heard today from the fed speakers who were out in force, which certainly tilt ed a littl more hawkish the fed chair obviously didn't or at least that's the read, assuming we're reading that correctly. what do you make of that >> well, look, i don't think the economy needs any change in rates. it certainly doesn't need rates to go up, andi don't think it needs rates to go todown we're back to where interest rates were before the great financial crisis, before the great abnormal between the great financial cricrisis

i'm very comfortable with rates here the stock market seems to be very comfortable with it i am concerned that the fed might just take any bit of evidence that the economy is slowing and lower interest rates, and my concern would be that that would be too much of a good thing we could have a meltup situation in that scenario so i'm rooting for things to pretty much remain even keel here, and that i think will remain very positive for the market. >> are we giving too much credence to the notion that the consumer is just going to hang in there forever because the data this week was squirrely on that front, and if you put starbucks, the recent earnings report into the mix and others, i'm not necessarily sure we come away from all of that feeling great. >> i think the consumer has got a lot of o'different stories in the consumer it's not just one story. you've got a lot of baby boomers

that are retiring. the baby boomers have $75 trillion in net worth. it's the richest cohort of demographically that we've ever had, and they're spending money like crazy they're going on tours they're going to entertainment venues, they're going to restaurants. they're traveling, and they're going to the health care system, and that's creating a whole bunch of jobs that all those kind of services on the other hand, you do have people that are struggling with consumer credit, and a lot of them are actually younger folks, and i think what we're missing here is there's a lot of intragenerational support going on where the baby boomers, i think, are paying some of the their credit card bills, and some of the mortgage down payments for the younger generations, so i know this from personal experience, scott, but i also know it for my friends. >> we'll leave it there and see you soon. >> thank you >> ed yaryardeni, we're tracking

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closing bell, back kristina for a look at the key stocks we need to watch. >> it's all about guidance this earnings season and that's why akamai technology shares are g getting punished they warned of weak june guidance the company is facing slower growth in media and that's why shares are down 11.5%. bring on the protein, maybe for scott's dinner, caramelized garlic steak coming to a sweet green menu near you. shares are popping over 33% right now because the salad chain beat on earnings and also upped its full-year revenue guidance scott, what's for dinner >> i feel like having carbs. is that bad? that's not that bad, right >> no, it's not bad. it's friday. it's allowed. >> thank you >> i'll let you know what i had on monday. still ahead, the big bio tech bounce, shares of vaccine maker novavax soaring today. we'll drill down to what's driving that near iptrle digit surge, look at that, 96% back on the bell after this.

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a reminder to tune in this weekend for a cnbc change maker special. you're going to hear from a number of women that are transforming business including the wnba commissioner and the ceos of fannie mae and amalgamated bank that's tomorrow 11:00 eastern time. mcdonald's cooks up a plan to bring in more customers serve that up in the market zone next

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and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley we're in the "closing bell" market zone, plus, angelica peebles on novavax's huge rally, pippa stevens on why donald's is popping as well. we're not that far from a new record high either how are we thinking about next week, inflation, inflation, inflation? >> market has really pretty much done what you'd hope it to do off of that low three weeks ago, responds to the overflow conditions, makes the most of a decline in treasury yields we've talked about the financials and others that have done well. i do think it was interesting that the university of michigan

consumer sentiment numbers today kind of stopped the levitation that was kind of underway in the morning, put the market a little bit back on its heels, got yields firmed up a little bit. that's really a tertiary type indicator, that one-year inflation expectations it says we have the sensitivity to those inflation numbers, so we're not going to fully relax until we get through those and see if we're still on track to have disinflation resume or have it be a good enough number that yields can stay calm. >> angelica peoples, a nearly 100% one-day gain. >> novavax is having its best day after after announcing a partnership to sell its covid vaccine. novavax will get $500 million upfront and another 700 million if they meet certain milestones. the total could go higher over time if the combinations pan out. jpmorgan is calling this deal transformational to novavax's overall business this is a company that about a

year ago warned they might not be able to keep the lights on. shares are doubles to about $9, they're still down from their intraday high of 332 in february of 2021, and novavax is still a favorite name to bet against with short interests representing almost 34% of the float as of the end of april per fact set data. >> angelica, do you have a quick thought? >> i'm really glad we shared the multiyear chart there. it's still down like 95% from the highs. it does show you it was one-third of the flow. >> it shows you sort of, you know, the post-covid playbook for some of these main names within that group, pfizer, we're dealing with that, moderna >> they don't really know the way out of it. the fact set numbers for the first quarter earnings growth would be much, much higher if not for big losses, it's still kind of an overhang on the overall earnings picture. >> mcdonald's making some moves

here tell us. >> mcdonald's is prepping a $5 value meal to bring customers back in this competitive environment. two sources familiar told our kate rogers it could include a mcchicken or a mcdouble with four piece nugget fry and soft drink. deal details are still being hammered out and an initial proposal by mcdonald's for the $5 value meal did not clear necessary hurdles. additional details are now being discussed: one source said coca-cola added marketing funds to the equation to make the deal more appealing for owner-operators. value remains key in this environment. mcdonald's has leaned into core items that have done well with consumers, but this value meal would be substantially lower than ordering those items individually that stock shot up nearly 3% >> all right, pippa stevens, thank you so much. we've got 90 seconds, mike, great week for financials. >> yeah. >> great week for utilities. and pretty spread out throughout, it's been a nice broad week >> it has.

i think one of the factors that's been driving a lot of what's gone on the last few weeks, we talked about this even going back to february was the extreme outperformance of high momentum products to this market, really look vulnerable for reversal the high momentum areas of the market have backed off, but what happens there is you get the low momentum washed out parts of the market benefitting because essentially the quantitative trades work in reverse i think that's a big part of what's going on with utilities, a little bit with staples that have acted a bit better too, and the glaring piece of this, which keeps me from saying, oh, we're seeing a broadens of the market because we have a better macro picture is the consumer cyclicals. you still have a little bit of pressure on the whole story line about whether the consumer is going to be resilient for all the reasons we've been talking about so, you know, the market has kind of like gotten over to this neutral spot, almost back to the highs no longer overbought or over

sold macro's going to pick up next week. >> you have a great weekend. that's mike santoli. everybody at home please do the same, but not until overtime plays out. we go there now with morgan brennan. >> the dow closing higher for the eighth straight education, the nasdaq and s&p 500 finishing out their third straight weeks of gains this is the fourth straight week of gains for the dow that is the score card on wall street, but the action is just getting started. welcome to "closing bell" overtime i'm morgan brennan, jon fortt is off today. evercore isi vice chairman krishna guha joins us ahead of a big week of potentially market moving data. and an analyst who calls himself, quote