of the market, but then you can play the other market of health care and other things too. so, i think you can be diversified in an area where the markets are overall overvalued but i think the opportunities are still there. >> appreciate it thank you for watching "power lunch. "closing bell" starts right now. ♪ kelly, thanks so much. i'm scott wapner live from post nine at the new york stock exchange this make or break hour begins with the markets on edge as critical inflation data looms large. the recent rally back from the april lows potentially hanging in the balance we will ask our experts over this final stretch what is really at stake this week with the release of ppi and cpi reports. our guests today including sara naison-tarajano in goldman-sachs. in the meantime, take a look at the scorecard. we're still less than 1% away from those new all-time highs. may not get there today. we're led by apple and some of

those higher beta growth names and we're watching alphabet shares closely today as openai refreshes its chatgpt chat bot, what it means for investors as well in the broader markets, well, most s&p sectors seeing modest losses today. small caps are outperforming yields are down. so, what else is new the russell is up. we'll watch that over this final stretch. it does take us to our talk of the tape, whether the bull market is at serious risk or not. let's ask dan greenhaus, chief strategist for solis you see the barons over the weekend? "dow, 40,000, so close you can feel it. why you should fear it." and make a direct line to the cpi because that's coming up on wednesday. ppi is tomorrow. they say recent history points to reasons for pessimism at this rate, investors could be betting on rate hikes instead of cuts before the fall what do you think of that? >> first of all, until this

moment, i had no idea where the dow is thank you to barons. i see it's on the wall now >> got to be paying attention. >> but listen, i think there's a lot to worry about in the short-term here. the market -- the s&p 500 is basically at a high and call it only a third of the index is within a couple percent of its 52-week high, so it's a little bit of a narrow breadth here obviously, the russell hasn't rallied. there's some things that you would like to see happening that aren't happening, but on balance, i think you have to be pleased with how the market's holding up here, especially with yields coming back in. >> the markets rallied back pretty sharply over the last month. the russell is up 3.2% that's not insignificant the broadening trade has obviously worked, right? the russell and the dow are the best over the last month by a fair amount. >> yeah. >> twice as good as the other. >> just to reiterate a point that we've talked about

repeatedly, i don't think that you need to look in terms of the broadening out i don't think you need to look at the russell 2000 as evidence for it first of all, it lost in the conversation about the russell lagging, and a longer term trend, is that mid caps are basically at a high as well. and those are companies that people are much more familiar with as compared to the s&p 500. and then, within the s&p 500, first of all, within the mag seven, you have a bit of a rotation here. >> sure. >> but within the s&p 500, you see, like, i don't think people realize, and it's just starting to get some attention now, the second best performing sector year to date is utilities. >> okay. >> now, obviously, that's part of the a.i. derivative trade that i think i've been harping on >> it's by far the best performing sector over the last month. it's not even close. >> yes >> double-digit percentage gainer >> i see we have a chart of the xlu up if you zoom in on that, that's a parabolic move >> people are now making it the next a.i. trade. >> well, first of all, and again, just to reiterate, whenever we talk about nvidia,

for instance, my point has been there are a.i. derivative trades that you can play that aren't particularly the semiconductors, and i'm not saying that i secretly meant you should buy the utilities the entire time, although i'm not not going to say that i wasn't saying that. >> there's no evidence to suggest one way or the other >> that's right. >> you live in the gray area >> that's my kind of evidence. but yeah, i mean, there are other plays at work here to play the a.i. trade right now, utilities are getting some attention there are others, and some of these names are up 80, 90, 100% year to date, rivaling some of the mag seven and more traditional a.i. plays >> let's talk about this if you look at the activity in the market, let's just call it what the, you know, "the wall street journal" sort of characterizes it as today. investors have been piling into the soft landing trade >> yep >> that's what it is that's why all of these other sectors -- you can take utilities out. that's not necessarily a soft landing trade. unless the derivative of rates coming down, the boil coming off rates, plays a role in that particular trade, but you know

what i mean. >> sure. >> financials, industrials, materials, people talking positively about china again >> broadening out. >> it's all sort of plays into that story is it misguided? >> i don't think so. all the evidence has been and remains that for lack of a better word, a soft landing -- and again, we have to have a conversation about what we mean by that, but at least for now, the hard landing, the recession that everybody thought would occur, is not. i think that the problem that we have right now is for someone like myself who thought there was going to be a recession, call it a year and change ago, but gave that up a year and change ago, there's still people holding out this idea that, well, it's going to happen, just give it time and maybe that will be the case. but in the meantime, the stock market keeps racing not quite to new highs but on its way to new highs while you're still out there clamoring for a recession that no data point right now, at least, seems to suggest is coming >> so, we should stay with the broadening trentd? >> i think so. i think so you see this -- again, not just from large to small or whatever. you see it within the market

you mentioned financials traditional dcyclicals. there are plenty of ways to make money in this market that are not just seven stocks, and it's been the case for, i don't know, seven months >> did it feel to you that the bulls remain firmly in control because we're basically back at prior highs? of course, he thinks that we're going to get there he said as much on the program last week. >> i think that's right. the bias feels like it's to the upside still i did mention before, only about a third of the index is within a couple percentage points of 52-week highs, so it is more narrow than i would like, but i think john is generally right and appears to be right in this case i think the bulls are in charge. but again, why is the bias to the upside it's because profitability is doing well it's because the economy is doing fine i know there's some worry that data's not meeting expectations as evidenced by the city economic surprise index, which has turned into negative territory. there are concerns, but there's

always concerns. you've got the commentary from a couple of companies like mcdonald's and starbucks, although i can counter that with any number of other companies. but despite that, and when you take the totality of the data and the evidence, i don't know why the bias doesn't remain to the upside >> let's bring in christina and marcy. nice to have you here. christina, welcome to post nine. you've heard mr. greenhaus what do you think? >> i agree with a lot of what he's saying. i do think that we're likely to see a continued broadening of the market for two reasons we've gotten some hints from this earnings season that we're going to see improvement in a lot of the cyclical names, that seems to be the case if the current trend continues number two is the anticipation that there will be the start of rate cuts soon i don't think this is a softening or soft landing trade. i think this is a re-acceleration trade. and that's why we're seeing the

broadening >> re-acceleration of the economy? >> yes, exactly. but the issue is that we can't count on the fed what's a far surer bet, in my opinion, is the ecb cutting rates in june, and that's why i think there's more opportunity, for example, in european equities but having said that, i do agree that we're more likely to see that broadening to continue in the u.s. >> if you think the u.s. economy is reaccelerating, doesn't that introduce, then, further risk of it not cooling enough to keep inflation coming down to where, as barons points out, at this rate, "investors could be betting on rate hikes instead of cuts before the fall" if the inflation data doesn't start falling into place let's not forget the last few reads have been disappointing, to say the least >> well, i think we're seeing a slowdown right now, but stocks are discounting out, and typically discount out six to nine months in advance, so i think that trade, that broadening trade, is about anticipating a re-acceleration i do think we'll see sufficient

slowing to see continued moderation and inflation i don't think we're getting to 2% this year i don't think we're going to satisfy the fed, but i don't think the fed expects to get to its target by the end of the year >> if i could add real quick, before we get marcy involved, the fed has told us from chair powell on down that they're more likely to keep rates where they are rather than hike them, and i think that we can have a separate conversation about it, but if they were going to hike, they should have hiked or at least not gotten more dovish at the end of last year that was the mistake >> some people don't even think that they're restrictive enough, like leon cooperman, by the way, from the omega family office, a legend in the investing world, who is on "power lunch" today, "there's a lot of talk about the fed being restrictive. i don't think they're being restrictive. where's the evidence the fed is being restrictive? we have a stock market at or near highs we have tremendous speculation in individual stocks." mind you, he says this on a day where gamestop is up like 70%. it's been halted like 6,000

times because of a photo that was put on social media that got, you know, the stock going again. so, you know, marcy, how -- in the context of what, you know, the two folks have just said, you've got the cooperman commentary on this network a little while ago as well, what's your own view? >> well, we have a market right now that's holding its breath a little until wednesday, when we get cpi, and we'll hear from powell right after, but powell's really pushed back on the idea of a hike being the next move. i think i agree that it's far more likely. our base case is the first cut comes in december, but i think, if inflation continues to plateau, it's far more likely the fed would hold policy tight and just not move from where they are right now and stay in pause mode, which, by the way, extended pauses in markets actually are pretty good times to be an investor in the s&p 500. we looked back at markets where the fed's paused over a hundred days, which clearly we will have passed that, and those tend to be pretty strong periods performance-wise at the end of the day, i think

this tug of war between inflation concerns, maybe stagflation fears, and earnings is going to continue ultimately, i think it's earnings that win out and support this uptrend in the market, because i don't think the rally we saw, call it from november to the end of march, was just fed enthusiasm. it was about earnings growth it was about easier financial conditions, and it was about liquidity. in the very near term, i think you have seasonality behind you. you have corporate buybacks perking up that's going to be a support in the market, but ultimately, i think it's earnings that win out here >> nine days from now, dan greenhaus, nvidia reports its earnings is that, with all due respect to inflation data -- i don't want to upset the cpi and the ppi and other reads that are coming down the pike -- is that the most critical event in this market to determine whether we actually have a sizable summer rally? >> unequivocally yes again, the cpi data matters. ppi data matters a little less but i think unquestionably,

nvidia is at the heart of the entire trade right now, because i mentioned earlier the relative thinness, if you will, of the rally up to new highs. i'd like to see something closer to 50% of stocks, be close to 52-week highs when the market's doing what it's doing, but nvidia is at the heart of this again, there's no evidence that they're going to i saw one sell-side shop raise their price from $750 to $1,200. you don't do that right -- let's hope you don't do that right in front of a company that's -- >> $750 looked good a month ago and the markets rallied all the way back to $902 >> there's a cardinal rule when the stock the above your price target, you got to raise your price target. what is nvidia telling us? that there's demand for these products, and that filters through to everybody else throughout the ecosystem, and the market in general. and again, i'm not an nvidia analyst, not particularly a large tech investor, but this is at the heart of everything and there is very little evidence

that there's a slowdown in demand >> it speaks, i guess, marci, in part to this all roads leading back to the broadening conversation because that seems to be where we always end up when we start thinking that, okay, going to have a soft landing, start to get more cyclical trade activity, so we think it's going to continue is that legit? do you think it will, or is nvidia going to remind us all the reasons why we were investing in those kinds of stocks in the first place? >> well, i think it can be both. i agree with dan, you know, when i think about, it's about that next circle out from the a.i. enthusiasm if you look at capex, i think we're in the first year of a multiyear capex cycle around artificial intelligence. if you just look, year to date, $57 billion in incremental additional capex has been announced. this is all about the a.i. boom. that said, the second half of the year is going to be about the other 493 catching up, the fact that industrials,

financials are joining the earnings growth party gives me some positive feelings about, you know, maybe the mag seven will moderate a little i wouldn't avoid it because of this innovation cycle that we're in, but i would think about the broadening when and what's next. i think it's industrials i think it's defense stocks. we like energy here. as well as consumer discretionary. >> what do you think, kristina, about this whole nvidia idea that, yeah, i know we're going to trade on cpi and ppi, that's unavoidable, but that's really the event that you need to pay close attention to more than anything else? >> i don't think so. certainly, nvidia could power the s&p 500 to new highs, but it would be a very, in my opinion, narrow market. it is not going to contribute to any very significant broadening. i think that comes from cpi, from ppi, from fed speak, from the view that markets have about how close we are to our first rate cut, in my opinion.

>> so, it seems to me, with you, all roads come back to the rate cut. the fact that, you know, you've got a changed fed, we believe. ever since we had that pivot, and you know, powell wasn't as hawkish as we feared and now it's just, don't fight the fed? is that fair >> i think earnings are very important. that's part of the calculus, but earnings have been relatively good, and so, now, we have to shift our focus back to the fed, and that's really the ingredient we're looking for now, in my opinion, to get to where we need to be, and i do think we are going to get a rate cut sooner rather than later. i don't think we're going to have to wait until december, because i think the fed's going to be satisfied. you had asked before, what's the evidence that we're in restrictive territory? we don't need to look for evidence jay powell has said we're in very restrictive monetary policy territory. >> i know there are some -- that was such a loaded comment, just because there are some who would say, i mean, he said that inflation at the outset was transitory also. >> fair enough, fair enough.

>> they haven't nailed everything, you know they haven't gotten everything exactly perfectly. now, they've managed it well, i think, most would think, once they had that out of the way >> they have and i do think that they just need more confidence, which means more data, so hopefully, cpi and ppi this week will do that but we do have to worry. we saw a spike up in michigan, and that was confirmed today by the new york fed i was -- >> inflation expectations, you mean >> yes, exactly. i was wary of the michigan reading because of that transition in the survey from phone-based to web-based but it was confirmed today by new york fed now it's the short-term consumer inflation expectations, but it does make me a little more uneasy >> let me add one. the question shouldn't be whether the fed is restrictive i think most people would agree the fed is restrictive the question is whether they're restrictive enough and this is a separate conversation for a separate panel i don't think they're restrictive enough and i think that's plain as day, but that's another story. what i did want to -- >> why, because the stock

market's near a high >> sure, where's the evidence -- with all due with respect, where's the evidence they're restrictive? >> where's the evidence that -- what needs to happen to move to you that they are? >> the original -- listen, they told me -- >> you want to -- credit spreads to blow out? >> how about go up instead of being the tightest ever? how about stocks not trading at 20-plus times forward earnings sitting at record highs, how about the economy doing, relatively speaking, just fine the whole point of raising rates to choke inflation out of the system is to slow things down. where are things slowing down? i know people wanted to point to starbucks, people don't want to spend $9 for an iced tea matcha anymore, but i listen to the credit card companies. no signs of slowdown uber, no sign of slowdown. there's a million things you could point to again, i'm not saying they're not restrictive. the question is whether they're restrictive enough nay told us they're not. >> it's a two-speed economy. where we're seeing the impact now is low-income households and that's come through in a lot of the earnings reports, most

recently tyson talking about the pressure on lower-income consumers. that's where it typically starts, and then it starts to spread >> i'm going to disagree i keep coming back to the credit card companies, and when mastercard reports and visa reports and tells me they see no change in behavior across income cohorts, that, to me, trumps mcdonald's or starbucks or tyson telling me some of our products -- >> we also heard from capital one. i think we're gettingthat in different industries, that there's pressure on lower-income consumers. and it matters now, do i think it's enough to cause a recession? absolutely not but i think when you see rates hiked 500 basis points, compare that though '94, '95, we only saw 300 basis points hiked and the fed only sat at that high level for five months. we are now more than double that >> you know it's a different economy today than then. >> it is in some respects, but we are playing with fire the longer we have rates as high as they are >> thank you all i appreciate it very much.

let's turn it to kristina kri kristina partsinevelos >> i watched "dumb money" on a plane. roaring kitty posted his first tweet on x he was one of the first key promoters of gamestop back in 2021 and hasn't tweeted in about three years. the tweet makes no mention of gamestop, nor arguments for buying the stock it doesn't even contain any words. just a drawing of a man leaning forward was enough for investors to add over $4 billion in market cap in this name since last friday's close speaking of memes reddit shares up about 9%. no news catalyst -- almost 10% now -- aside from, yes, the return of roaring kitty. i want to recall just last week the social media posted a losses in its first earnings report but

did see strong use growth. there's all this talk about a.i. but maybe memes are back or they never left >> why the qualifier that you watch it on a plane? you didn't want to admit that you ordered it up? >> very good catch, scott. very, very good catch. >> i listen to everything. >> i don't have an answer. i watched it on a plane. that's all >> we'll come back to you in a little bit you think about the answer, kristina partsinevelos we're just getting started up next, navigating the a.i. arms race. openai holding its big event today, google kicking off its developer conference tomorrow, so what is at stake for both of those names? we'll discuss and hear from an alphabet shareholder we'll do it after this break "closing bell" coming right back to start a business, you need an idea. it's a pillow with a speaker in it! that's right craig. a team that's highly competent. i'm just here for the internets.

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the a.i. arms race front and center yet again openai kicking off its big event today, front-running the likes of alphabet and its own developers conference tomorrow here to discuss, steve kovach and deirdre bosa you monitored this event >> one big announcement coming out, scott, this is the newest model, the flagship model from openai called chatgpt 4.0. that stands for omnimodal. what this means is it can have a conversation with you, sort of like you and i and deirdre are having a conversation now. you don't have to ask one question, then wait for the answer and ask another question. you can talk or interrupt it if it's not giving you the answer you want or you changed your mind you can kind of ask it again and it has what's called memory, which means it can remember the previous questions you've asked and add on to the conversation that way it's also what's called multimodal, which is a term you're going to be hearing a lot as we hear these a.i. announcements coming from google and microsoft and apple in the

coming weeks that means it can also interpret not just text but voice, of course, and images and kind of collate all that stuff and give you the answers you need so, really interesting the demo we're watching here, that was done, it appeared to be a live demo, and it reminded me of when google messed up its gemini demo, which was supposed to do a lot of what we saw today, but this appears faster and better it's also going to be free, and it's also going to be available for paid users and developers to tie into their own third party app, scott >> maybe, dee, there was a little bit of trepidation among investors of, you know, this looks like even more of a foray into search, and it's going to eat into more of the wheelhouse of alphabet, so the stock was down about 2%. you could see from the intraday that we showed, the stock has definitely recovered i'm wondering how we should perceive that, if at all, and what this means, really, to

alphabet's own ambitions here. >> so, one of alphabet or google's most -- biggest competitive advantages is its distribution, and chatgpt making more of their technology, more of their advanced technology as well, free that could be seen as more of a threat however, google will have its chance tomorrow. i think you're right in saying that openai front-ran the iowa event. it was shorter than i was expecting and they showed off some really cool technology, which steve was just talking about, but also, flew a little bit under the radar today. google tweeted out its own technology ahead of i/o and maybe it was just a teaser, but it looked similar to what chatgpt showed us and openai showed us earlier today and that is a phone looking at an empty i/o stage, responding very conversationally, looking at the images and understanding that, responding to a voice more in a conversational sense and scott, i think this tells us that we're moving from the era of chat bots to the era of a.i. assistants or agents, which a lot of folks have been talking about for a long time.

it's pretty amazing to see the first glimpses of that today, both from openai and from google, and so this race is just getting under way. it will be exciting to see what google has tomorrow. steve mentioned the botched demos in the past. it has been sort of a turbulent ride for google, trying -- it was leading the race, and then it was perceived to be catching up in the race tomorrow, they're going to have the chance to set the record straight >> it's also, steve, a bit of a relay race, and we're going to get apple down the road, wwdc, microsoft coming up with its own developers conference. >> i want to talk about the apple one. that's interesting and plays into what we heard from ownership a.i. today "new york times" on friday reported part of that announcement at wwdc is likely going to be an update to siri and also a lot of what we heard about today from openai. again, this idea of an agent, this more conversational, i don't have to tell you the problem siri has today we all experience it, and just making it a lot more capable than it is now so, i think that is going to be

a big announcement to watch, and then, of course, because of microsoft, a week from tomorrow, we know the relationship with openai and microsoft already microsoft, likely, going to lean a lot of the tech we saw today in order to inform its own products like copilot and the like i do want to point out one more thing, though, that even though sam altman was not part of this event today, he put out a blog post shortly after it ended, and he called openai -- he said, we are a business and we're looking for ways to make money i thought that was really interesting given all the board issues last year and elon musk suing over the fact that they abandoned this nonprofit vision, and here you have sam altman saying, we're a business >> interesting for sure. guys, i appreciate it very much. thank you. steve and deirdre joining me more on how to play it, we have an alphabet shareholder, among other holdings that he has in his books. good to see you. as you see what openai did today, and you think about what alphabet may do tomorrow, how are you thinking about it as a shareholder?

>> hi, scott yeah, i think it's really an exciting time for the a.i. industry admittedly, the openai exhibition was very, very impressive that being said, as an alphabet shareholder, we think there's plenty of room for the a.i. industry to have multiple players. i think where alphabet has an edge, though, however, is really the ecosystem which deirdre referred to. the search business, the android platform, the cloud business there's really a lot of levers that alphabet can pursue by entrenching the gemini product into all of these businesses so, from that perspective, impressive openai exhibition, but i think there's going to be a lot of great updates for us to hear tomorrow. >> do you feel like, though, this is yet another example of, you know, setting a fire, so to speak, underneath alphabet in terms of innovation? this is just a reminder that they need to keep innovating, to keep up with the likes of openai and others for that matter

>> that's exactly right. i mean, a couple of months ago, we talked about how google was a show-me stock. alphabet was a show-me stock timothy, and most recently in their quarter, they showed a lot. they issued their first dividend, their $75 billion buyback, which shows how confident they are about their fu future, but it does sort of light the fire under their engineers and -- for constant innovation but i think the company is really well positioned to do that >> what about apple? what do you make of nice comeback that this stock has had, $187, we'll call it that, up more than 2% today. >> personally, i think it's a big deal for apple if we think about the sort of rue medi rumored, if you would, openai and chatgpt entrenchment into the iphone, what it's going to do is make the older iphones

become more obsolete faster, if that's the case. because a lot of these applications, they are driven by a.i., are more processor intensive, which means that newer iphones are only going to be able to take advantage of that if that's the case, we would expect the refresh cycle to be accelerated, so i think it's great for apple, and i think that's the reason why the stock is doing so well today >> yeah. nice day for sure. king, thanks talk to you soon up next, critical inflation data on the docket for this week goldman-sachs private well, sara naison-tarajano is back with us. were you worried the wedding would be too much? nahhhh... (inner monologue) another destination wedding?? why can't they use my backyard!! with empower, we get all of our financial questions answered. so we don't have to worry. empower. what's next.

welcome back stocks hitting a pause after an early may surge. the nasdaq and small caps holding on to gains while the dow is falling investors grappling with rising inflation ahead of two key reports this week. joining me back to share her outlook is sara naison-tarajano, who runs the global family office building at goldman-sachs private wealth welcome back >> thanks for having me. very happy to be here. >> you deal with the longest of long-term money. >> that's right. >> probably the least tactical in a sense of any kind of private wealth-related investors. what does that mean in how the outlook is, generally speaking, on a perspective of where the markets are going? >> yeah, look, i think it's a great question, and as you mentioned, family offices are

managing money for generations they're not answering to a board of directors they're not necessarily thinking as much about how markets move day-to-day i think they think in terms of long-term themes, where is the money going to be made over years, over decades? and also, they tend to really run to the markets when others are running away so, on dislocations, they're in a position to really add exposure we saw that even with the april pullback we had, you know, 5% pullback, and the majority of our clients were looking to add exposures to names and sectors they liked there. >> so, i mean, there are tactical occasions >> of course >> so, like, i use the example of stan druckenmiller coming on our network, runs the duquesne family office. without you discussing nvidia, per se, as an individual name, just the idea of being tactical at a moment where you look at the landscape and say, i'm sensing a bit of froth, even in

a long-term theme that i believe so heavily in. >> it's a good question. maybe i'll take a step back and talk about the mag seven we've been spending a lot of time on this obviously, a tremendous amount of growth in the market has come from this, and they're not cheap stocks, but if you look at the earnings growth year over year, q1 earnings, earnings are up they still trade at 30 times, so they've delivered on their valuations, and i think they represent really important parts of innovation in the market. they have very strong balance sheets, lots of cash they're spending money on capex, which wasn't necessarily happening a year ago where there was so much focus on expense discipline, and there are stocks that our clients typically want to own now, do i think people should buy them at the highs? no these are stocks that move around we are very disciplined. we look for pullbacks on earnings, any dislocation that

may not have anything to do with the stocks, if vol increases, selling puts to get exposure, so i think that's really what the conversation has been, and obviously, earnings next week are going to be important >> you're alluding to nvidia, which is coming up on may 22nd for all of you who have forgotten. so, does that mean that the conversation around where to put new money still reverberates and finds it way to the megacaps are those the first types of questions you get? >> it's a great question there's a little bit of that for those that don't feel like they have enough exposure, but there's a lot of talk around, what's the next derivative what's the next beneficiary of this a.i. boom and people are thinking about what's going to power this >> so, the utility thing -- so, you really think there's legitimacy to that conversation? now everybody's talking about the fact that utilities are really the best-performing sectors of late, largely because

it's like the derivative play of a.i. >> i think it's legitimate there are other things too, whether it's a move to more electronic vehicles, and so there are other things that will fuel this that i think also are a contributing factor. so, we're definitely paying attention, and we'll see >> tell me about, on the list of things that -- the key themes, sports investing, that's interesting to me. tell me more >> sure, so, sports investing and my colleague who runs sports investing for wealth, we collaborate a lot, because as you can imagine, it's a very important space. >> she was just on the network last week. >> i know that it's a very important space for our family office clients. sports are just an area where historically low correlation to the market, our clients are always looking for themes and areas that have a low correlation to the broader market in addition, i mean, the valuations in sports, if you look at what are the nba teams trading in the mid 90s, like averaged $72 million today, that's over $3 billion for an nba franchise team, and the media rights have a lot to do with that, and i think what our

clients are starting to look for is what is the next big thing in sports where there's money to be made i'm a former athlete myself. i'm a mom of three daughters, women's sports is an area, i don't know if you got into the caitlin clark phase. >> i mean, hello, who didn't >> craze, phase, but i think women's sports and people are really excited to watch women's sports, that and emerging sports, so for all these reasons -- the last thing i'll say about sports, which i think is really important to our family offices and families in general, is that most of our families own sports in communities where they live and work and they love the idea of putting infrastructure and investments into where they live and work, and so for that reason, it's also super interesting. we had a lot on sports >> finally, real estate. >> yeah. >> so, in what context >> sure. so, i would say, for family offices, and again, i'm speaking about family offices, not broad private clients in general, for family offices, they tend to own real estate outright we did a global family office survey in 2023

our families actually have 10% of their portfolios in real estate one similar reason is they're hard assets, they can buy them in their communities, they can have an impact, they can own the buildings, pass them on to the next generation. and also, historically, has been a good hedge against inflation one of the things that i think was interesting at our family office conference is how popular the real estate segment was among our client base. last year, it was a breakout that not many people picked, but i think the last 18 months, we've seen some dislocation in prices that has been interesting to families. i said, you know, they run to the market when others run away, and with higher interest rates, financing has been more difficult. these families often have high cash balances and can come into markets when maybe less financing is needed from a traditional community. >> interesting enjoyed our conversation as always >> thanks so much for having me, scott. >> sara naison-tarajano of goldman-sachs. we're tracking the biggest movers into the close. back to kristina, who's now had time to think about my earlier

question >> i watched it on a plane because it was free and easy to watch, and i could focus versus, you know, getting distracted at home and trying to fight it. that's why it ha >> i'll buy that >> you have to tell me what you ate for dinner on friday but let's talk about a pharmacy chain looking to say bye-bye to the uk, and another tech firm going private. that and obviously so much more right after this break

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herwe're 15 from the bell back to kristina >> walgreens-boots alliance the company is holding early stage discussions with the potential bidders but the formal sale process has not begun square space shares surging after announcing a billion dollar deal to go private. square space is the latest in a string of tech firms going private after continued struggles with underperformance since its ipo back in may 2021 shares up 13%. >> all right we'll see you in the zone. kristina partsinevelos still ahead, charging high

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welcome back we have some news out regarding roku seema mody has that for us >> roku starts this weekend where roku will offer sunday mlb games key froee on the company' channel. peacock had been the platform of choice as the battle for sports heats up, scott. stock up 3%. >> appreciate that very much thank you. up next, a double dose of chip stocks popping. arm and intel higher in today's session. we'll tell you what's behind those mos, hveow it could impact the broader semi space when we take you inside the zone we are so excited to welcome you to our community. today is all about you. (♪♪) (♪♪)

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we're in the "closing bell" market zone. make santelli here to break down the crucial moments of this trading day. plus phil lebeau on what potential tariffs could mean and arm and intel shares taking off today. kristina partsinevelos on what is behind that move. mike, this is, i guess, feels like a, let's say what the inflation report in the morning is weight. >> we sort of pulled into neutral in a way i think the rebound rally has been broad enough, both domestically and globally. treasury yields are down enough. so, you know, the prerequisites are there for the market to make a little more of it on a benign surprise from inflation. that said, i still don't feel as if we really have a coherent leadership story going on, either cyclical or fully defensive, and i think there's some doubts as to whether we flushed out enough to have a really exuberant jaunt beyond the olds highs, but we'll see.

>> phil lebeau, what's going on with these ev makers and potential new tariffs? >> the white house has telegraphed this over the course of the last week, that there will be some type of tariffs likely announced this week, and that's moved shares of tesla, rivian, lucid, all higher because they know that they're not going to have to worry, likely, about chinese competition because when these tariffs are put in effect, right now, there's a 25% tariff on anything imported from china, the electric vehicles, and by the way, there's only two models right now that are imported. the likely proposal, 100% tariff we expect this announcement sometime this week, if not within the next couple of days this has given a boost of sorts to what's happening with chinese ev players why? don't be surprised if we see some kind of response from china that could further insulate or help the ev players in that country, which is why you see the shares of those ev players, those ev stocks from china moving higher, scott >> just had that ip down on the

floor of the new york stock exchange intel and arm on the move today. kristina partsinevelos filling us in there. >> nikkei arm is setting up an a.i. division with plans to launch a chip in 2025. that could lead to a spinoff, which would be a positive fo softbank, given its large stake in arm, but arm wouldn't comment to me on this deal there's two issues firstly, it changes arm's business model of license and royalty revenues, and then secondly, this means that arm could be in competition with its very own customer base, so there are some skeptics on this deal speaking of arm, let's talk about competitor intel, also higher today on a report from the "wall street journal" that apollo global is in talks to finance an $11 billion intel plant in ireland intel wouldn't confirm but recall it only just two years ago, intel struck a $30 billion deal with brookfield for a minority stake in intel's fab in return for investment. intel called that brookfield investment part of their smart

capital strategy with more plans to use that smart capital strategy, so apollo would fit that perfectly scott? >> all right perfection thank you. kristina partsinevelos all right, mike, back to you, about two minutes, we're going to hear the sound effect in a second. this apple comeback has been pretty powerful. >> yeah, for sure. you know, it's very interesting, in that you have this sort of serial anticipation of all these develop developers conferences and all you have to do is be a little bit of a left behind stock and say the words a.i., and have it be plausible, and it does work it also feeds into this kind of, you know, leadership influx. so, you see tesla and apple up there today in terms of mag seven performance. you see meta and alphabet on the downside so, i think that's what's been going on in this mark. it's been grabbing for left-behind stuff because you had extreme outperformance by the highest momentum stocks into the highs in march in that five-month sprint, and to me, since then, it's been a real unwind of that

i put the utility move in that bucket it's mostly about a left-behind, washed-out group bouncing. staples are up 5% in a month i do think that that's something that's been going on here that i think has been hard for people to get their arms around because you do get this overlay of, is inflation too sticky is the consumer suffering a little bit on the other side of it when earnings are rising the way they are, when credit spreads are the same, it's hard for the market to get into too much trouble. i think it's a question of the next step from here, whether we get something that feels a little more like a helpful storyline. >> well, nine days from now, you're going to get an arguably binary event, and you know what that is. nvidia earnings. >> there will be a build-up in anticipation to it in february, it was genuinely a spark for the entire market when we did get those results there are some reports right now that supply is really coming on pretty strong. you see the secondary market in some of these gpus, be very interesting to see what the sentiment is there nvidia is a stock that, point to

point, has done nothing for two and a half months. we'll see if that's been coiling up or telling us something else. >> that's mike santoli we'll see you tomorrow, all of you. that does it for us. into o.t jon fortt. stocks trading in a pretty tight range ahead of a number of key inflation reads and earnings reports on the horizon that is the scorecard on wall street, but winners stay late. welcome to "closing bell: overtime." i'm jon fortt. morgan is off today. we are getting you set for a major week of a.i. headlines, including openai's spring update, google i/o's conference and more, tiro price's tech portfolio manager jones us with the mega cap companies he says are best positioned to cash in and the consumer takes center stage as big box retailers home depot and walmart get ready to report results.