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tv   Closing Bell  CNBC  May 25, 2022 3:00pm-4:00pm EDT

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holdings >> are they in the s&p 500 or not necessarily? >> russell 1,000, screen them for the highest free cash flow yield. >> and soap the highest free cash flow yielding company would have the biggest percentage in the fund >> each is capped at 2%. >> he has all the answers and the best etf name ever >> listen to us on the power lunch podcast on your favorite ach. >> and watch "closing bell ". >> coming up right now stocks are solidly higher with the nasdaq taking the lead for a change at session highs as we head to the close the most important hour of trading starts right now welcome to "closing bell." i'm mike santoli take a closer look at the markets. the s&p 500 now up 1% building on modest gains earlier in the last hour or so after the fed minutes from its last meeting a few weeks ago did hit. nothing new, hawkish seems like more or less as
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expected, get out of the way and stocks able to get a lift off of that a strong bounce after its devastating loss dick's sporting goods after diving down up almost 10%. coming up we'll hear from ken moelis from davos with his thoughts on whether a recession is coming. the way tech companies are revalued we begin with the fed releasing those minutes from its main meeting last hour. steve liesman joins us from washington with the big takeaways. hi, steve. >> reporter: fed officials in the main meeting agreed they should move the funds rate to neutral and good agreement they may eventually have to raise rates above that level to slow the economy in order to fight inflation. they say, quote, restrictive stance on monetary policy may
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become appropriate the fed raised rates 50 basis points and expected them to do so at least two more meetings in a row. officials overall had a fairly down beat yield. wage pressure expected to continue new pressures coming from the china lockdown and the ukraine war. prices were being passed on to consumers. a risk of expectations against that backdrop, decent growth saying they expected the economy to rebound from negative growth and consumer spending should be robust the ministry suggested some support for a positive rate hike once the fed is around 2% to 2.5% at 1:00 p.m. in an exclusive interview.
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mike >> we'll need to tune in for that thank you very much. for more on the action in the markets richard bernstein, the ceo of richard bernstein advisers good to see you. today we have a little bit of relief, a relatively calm rally. very different in tone from the volatile tape we've had in place. some of the things you've been looking for in quite some time have been reflected in this market this year, right? defensive stocks vastly outperforming cyclical ones. i guess the question is can that continue or do you think the market has reached a spot where it's taken account of the things you were looking for >> mike, thank you for that. there are things i've gotten wrong, too thank you for pointing out the things we've gotten right. a little bit today kind of a hope that we go back
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to the environment in the pandemic who are really hoping that this is just a bad dream. that inflation is temporary, we'll wake up tomorrow and it will be 2018 all over again. you saw that in the market action personally i don't think the probability of that happening is even reasonable to even consider i think the economy has changed meaningfully and semipermanently and so i think you're going to see late cycle and defensive stocks continue to outperform here >> that seems to be one of the other questions here are we just counting down the ticks to ultimately a recession, and what does that mean for the market >> i think our view is the recession is farther out in the
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future than most people think. almost historically negative but every recession in the last 50 years has been receded by a positive real fed funds rate we're historically negative. a positive rate. it seems to us that the fed is kind of hunting el vants with a pea shooter here and the recession is farther out in the future that being said, let's say we're wrong and recession is closer in than we think, one has to remember that inflation is a lagging indicator and so what generally happens late cycle stocks hang on into the early stages of the recession and then defenses really kick in. our portfolios are really constructed with an eye to the life cycle over the past several months increasing weight in defenses as you mentioned before >> well, let's talk about that elephant that the fed is hunting, inflation you suggest it's going to be around a while more structurally not going to ease back to the
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levels of 2018 but how high, for how long, what does it mean for overall stock market multiples, too? >> right, mike, i think it's very exciting to talk about 8% or 7% or 6% inflation. i don't think as an investor that's the way you want to think about it you want to think secular inflation. what's inflation going to be over the next year, three years, five years or ten years. if you're long term that's what you want to think about. long term is about 2.5% and most consensus forecasts right now are between 2% and 3%. will inflation be higher than 3% we think it will be because of the structural changes going on right now but most portfolios are constructed for the environment we were in which is sub 2% inflation that's where we think the opportunity lies is people are waiting to go back to that sub
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2% environment >> right implicitly people are waiting for the kind of big growth stock leadership to dominate the indexes to come back into favor, i guess. before we let you go, you do have some thoughts about fixed income and its role right here just in the very recent few weeks bonds have started to provide some diversification benefit. yields have come back as stocks have struggled, but what does it mean longer term if inflation is the most present threat for fixed income in a portfolio? >> and, mike, i think this is the way it's going to hit most people's portfolios. if we're right, nobody has the copyright on being correct, if we're correct and secular inflation is higher than people think, fixed income is really an issue because during the 1960s and the 1970s, fixed income treasuries were the worst performing asset class they gave you low returns and high volatility. in fact, it was safer, sort of
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in quotes there, safer to be in small cap stocks small caps gave you higher returns and lower volatility of fixed income, something people today could never imagine. it means fixed income investing will change. most fixed income managers have ridden the wave of lower inflation and secularly falling interest rates and that covered many mistakes through time what we're envisioning here is an environment where managers have to be much more tactical and realistically fixed incomes will have to be active management, something we haven't had to worry about in 40 years so that could be a sizable change >> inguess over time active managers have outperformed those who have tried to do it in stocks thank you very much for the time appreciate it. >> mike, great to see you. all right. up next, one of wall street's best known deal makers weighs in on the wild market on the wild market >> volatility in the short ter
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let's check out general rack the generator maker is one of the best performers.
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and if you have a business strategy that you want to execute on for the next 20 to 30 years, and you have access to capital, you're going to go forward. >> but how long do we have access to capital? interest rates are going up, and they're going up aggressively versus where we were. >> but from zero >> for sure. >> from zero. >> it's been awhile since we've seen those kind of moves a 3% tenure used to be considered something you would hope for we've only been in the environment we were in for about three years, and so again -- >> but is there a level that impacts financing? >> yeah, there will be -- it's not really a level there will be a level that causes capital to become unavailable. i don't think we're getting there, but yes there's a level that -- >> you don't think we're getting there in this cycle? >> no, i don't think we're getting there. >> why >> it's a dynamic world. the changing on the -- quickly, i think the best -- i think high
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oil prices will shrink the economy as well as the fed i think the fed is serious about this i really believe they, you know, i don't know j. powell personally, but i don't believe he wants to go down in history as the fed champlirman that alld inflation after 40 years to come out of the box i don't think he hopes to be remembered as that guy i think we're serious about it whether he waited too long is subject to debate. >> i think even he would admit that. >> i think that will come under control, and capital will probably be priced higher, but it's available. >> there is a lot of tough talk lately from the antitrust authorities. how has the regulatory environment changed in your view as it remitlates to getting thee deals done >> i think there's a gut feeling now that, you know, i used to do a lot -- study the indexes and there's a gut feeling now that all that is going to be secondary. big equals bad, and so you can
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do a lot of -- of your own assessments, but i think there's a real concern of getting a little too close to the -- to the big is bad problem. >> speaking of deals breaking, twitter, which you are also not involved in, do you think that will get done? >> i'm going to stay away from commenting because i have been involved in these transactions where the -- you know -- >> but never with elon musk, right? >> never with elon musk, but i have been in these transactions, can you get out of it? can you get in it? at least one of them, it came down to a comma. >> a comma >> a comma we debated for days whether the comma was in the right place in the material of adverse section of the document. i think we thought about bringing in an english major in case we had to go to court >> right >> this is true. so without being totally immersed in the document and the strategy, it's very hard to know what the outcome will be. >> pretty good for the lawyers
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is the upshot. >> usually if it goes that way look as of right now, i think it's the general counselor of twitter who had a good comment and he said, there's no such thing as a deal put on hold we're making a lot of speculation, and as of right now, i assume they're -- they all think they're progressing with the deal. >> does elon musk and this whole twitter deal change the playbook at all or is it just a unique case because of who he is? >> i think the -- it's just -- it's just public sizing popularized m & a. >> he tweets about it. >> it's not that different other than an individual, and people are following it and this goes on, and it's just that nobody cares when it's two corporations it doesn't make the evening news >> well, sit a technology deal, and that's been a sector that's really been ripe, and we've seen valuations come down is that one industry where you
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expect we'll see a lot more this year >> yeah, it's part of what i said about, you know, again, i was talking about the revision economy instead of recessionary economy. we have had a violent revision, and i have been doing this 40 years now, a little over 40, and we went from valuing companies on earnings. 20 years into it, we started valuing it on evata, and then revenues by the way, what's interesting -- it was the same multiple just went from earnings to revenue. >> where's that now? that's not working in the market. >> right now we're seeing a revision to -- >> cash? >> profits, right, and that's why i think what's so interesting, people are going to have to revise their business models to generate profit as well as growth, and they're going to have to balance, and that's not impossible. i think in a world where growth was being valued at infinite multiples, you got what you incen incentivized, which was growth without profit the market is now telling
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people, we need some profit. we need to see demonstrated cash flow, and i think you'll see revision of business models. >> sara also asked moelis about the political environment and he said, it will likely result in a gridlocked government that will ultimately be a, quote, huge positive for business. one of the strongest for the stock market anyway over the electoral four-year pattern. let's get a check on the markets. hovering near the highs, the dow is up about 265 right now. not quite 1% it's up 1.25% from last week's lows and 2% below last week's highs, and at the bottom of the range nasdaq composite, up 2 2.25%. after the break, a wendy's boost is pushing dl.
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'lbrg u e details next and mark mahaney with details you need to know from tech shareholders today including amazon, twitter, and meta.
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wendy's getting a big boost on news that a major investor is pursuing a possible deal leslie picker has that story for us hey, leslie. >> hey, mike a new filing revealed that trian intends to seek participating either alone for with third parties in a potential transaction. trian saying it would include a tender offer, and it includes legal advisers to help them evaluate a transaction wendy's holds three seats including nelson peltz peter may holds another 2 1/2. wendy's said in a statement said, quote, the board will carefully review any proposal submitted by trian partners. they invested in wendy's 17 years ago when it was first
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founded. they invested in arby's, and it was sold to a private equity firm, but i think we have a chart going all the way back those 17 years, going back to december when he first invested in the stock, including today's jump, mike it's up 5% since then. >> wow yeah, it's not been an easy road, and i guess when you own that large a stake already, you're not happy with the valuation, you know, selling and walking away is probably not an attractive possibility so i guess they need to try to find some cat liezing deal sg >> yeah, and i think they thought that would be the deal, and i wonder if filing this 13-d elicits other potential bid toerbidders to come to the forefront, and knowing that, yeah, all is well, and maybe i'll take a peek at it i wonder if that effect will come from this as well. >> i wouldn't be surprised less than $4 billion market cap on wendy's
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leslie, thank you very much. >> thank you up next, mark mahaney on the takeaways from amazon, meta, and twitter shareholder meetings at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations,
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facebook's products harm children, stoke division and weaken our democracy. teens blame instagram for increases in the rate of anxiety and depression. it's not great when your customers are voting with their feet and deciding to kind of walk away. facebook's parent company meta dropping more than 26% last week... that is more than $230 billion in market share value. when will there be accountability? how many more people need to be harmed before mark zuckerberg listens? amazon, twitter and facebook all holding their annual shareholder meetings this
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afternoon. shares of each in the green today but, of course, this comes after steep declines from the 52-week highs all more than 40% lower. joining us now mark mahaney head of research. mark, good to talk to you. i guess a lot of times shareholder meetings not necessarily generating a ton of fresh news but in the meta meeting there was a little bit of a ruffle in the shares lower in facebook when, i guess, mark zuckerberg said, look, we're going to be losing money in the metaverse the next three to five years. those headlines seemed to have an impact. it's recovered but is that something in contrast with what investors already expect >> i don't think that's in contrast now i thought the real news earlier this year was when he sort of committed to tapering down expenses if there's going to be a slowdown in revenue. they weren't going to spend irregardless of the revenue. i don't think anything he said today changed that message, and i think he talked about metaverse profits out in 2030. from the beginning, to his credit, he's talked about this
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as a long-term investment, call it five to ten years out frankly that seems about right it's like an option value. that's how we all as investors should think about this. it's either going to expire worthless or be worth something. we're just not going to know don't buy facebook or meta shares for the metaverse if you make option, great. it will not expire that will be at least five years down the road. >> and what is your read through out of snap's results into the core business at meta at this point? >> mike, we're just doing channel checks by the minute on this the first read we had sort of took snap at its face value, that this was not surprisingly macro pressures out there and that's really what caused what seemed like a real inflection point in snap. as the data points come in, there may be some things that are company specific here. snap does have relatively substantial exposure to brand
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advertising. that will hurt much more than performance marketing and performance marketing is definitely of google but facebook, too. so my first read is this was a pretty clean read through for facebook and as we go into this more and more it's probably less than we and the market at first thought. so if facebook will stay depressed on the snap news, i think that's a great buying opportunity but emphasis on long term, mike >> yeah. and when it comes to twitter, you know, management did not address the pending deal, musk's deal to acquire the company. but i wonder what you think the stock would trade to in the absence of a deal. i know you haven't been terribly excited as a stock preceding this as a standalone entity. clearly anybody's estimate of where it would go to if the deal were falling apart, part of the equation for what you pay for it now. >> i would do the same thing you would think about, take it right back to where it was and then adjust it down for the trading off in the market that occurred
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since then the one fundamental piece of news, one is non-news and one is real news b, they put out the march quarter results. the user numbers, the mda numbers that are controversial, those were better than expected. this stock has always traded off those. you would adjust down but twitter because of that march quarter result, the user numbers that matter to the stock, probably have outperformed them post that and the other piece of news whether or not we have a bond issue here. i just think this is -- i don't think this is a new issue at all this is somebody looking for an excuse to negotiate down a deal. this is an example what you try to teach your kids, do your homework before a deal i don't think homework was done here this is a long-standing issue. >> thanks, mark. appreciate it. and here is where we stand in the market. still solidly higher
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a little bit off the highs from earlier. the s&p 500 has shopped short of the 4,000 mark but up over 1.1%. the dow up 258 nasdaq and russell still outperforming. china's covid lockdowns delaying the iphone schedule. the company's bottom line later on "closing bell." lk about those changes to your financial plan. bill, mary? hey... it's our former broker carl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl. look forward to planning with schwab. schwab! ♪♪
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welcome back check out the top searched tickers, the ten-year yield back in the top spot followed by tesla, dick's, apple and snap. and speaking of dick's sporting goods, the stock making a
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dramatic turnaround during the company's earnings call this morning. up next, find out what is behind that rebound that story plus apple's development delay and a countdown to nvidia's earnings countdown to nvidia's earnings inside the market zone [bushes rustling] [door opening] ♪dramatic music♪ yes! hon! the weathertech's here. ♪ weathertech is the ultimate protection for your vehicle. laser-measured floorliners... no drill mudflaps... cargoliner... bumpstep... seat protector... and cupfone. ♪ what about my car? weathertech.
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when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit and get started today. we are now in the closing bell market zone victoria fernandez is here to break down the crucial moments of the trading day plus courtney reagan on a rebound from one retail stock and what we are expecting from nvidia's earnings stocks broadly higher. after selling off yesterday, the s&p 500 up some 1% at this point.
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victoria we've seen 4% to 5% rallies before as reisn't lip as a couple of weeks ago. we've seen even bigger ones on the way down anything about the action suggest to you that after a near 20% decline in the s&p that this one might stick, or how are you approaching it >> i don't think we're seeing the bottom yet i don't think people should think just because we've had a day here of pretty substantial rally that they should be all in there's still some other things we want to see before we go all in on that capitulation idea we want to see the vix move higher, see put call ratios move above one. all of these things, financial conditions tightening a little bit more than where they are these are all things we want to see before we think the bottom is in. that doesn't mean there's not going to be volatility we think there will be plenty of volatility and opportunities for people when names come down they can nibble or names are up to go ahead and trend those names. i think that's how you should approach the volatility we
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anticipate and we think maybe later in the year when things settle down with inflation and with yields maybe then we get a better feel for a solid momentum move >> a lot of folks waiting for those tactical indicators to line up. moving on to the big retail, dick's sporting goods staging a huge comeback today. the company beat earnings estimates buttish be you'd a weaker than expected outlook that initially sent the stock sharply lower. courtney reagan joins us so what was said on the call that seemed to spark this turnaround obviously the stock had been pretty weak from its highs going into the report before this. >> yeah, absolutely, mike. you know that better than anyone about the stock performance. look, initially when we got the earnings result, the first quarter was very good and it gave the four-year forecast that was very dire with not a lot of information but on the call right near the top sort of clarified what they did with the guidance and why saying in part
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we believe it's appropriate to be cautious, to be clear, we expect our performance will continue to meaningfully exceed 2019 levels. so basically saying, look, we don't know what's going to happen out there we're watching all of these macroeconomic developments and things largely outside our control just like everyone else. we're going to do our best we expect things will do well. by the way, our consumer has not started spending differently we still expect things will go well but just in case we're going to throw this very cautious guidance. they used the word cautious multiple times over and over again on that call >> yeah, and it's interesting because there has been a little bit of a thread running through even some of the disappointing retail earnings about traffic isn't really the problem even the top line consumer spend volumes are okay it's sort of the margin issues, it's the inventory stuff and it seemed on the dick's call they did say they felt the recent margin gains over the long term should probably be sustainable >> yeah, absolutely.
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i thought that was very, very interesting. the company has done a lot of work on the product that it offers in store, solidifying the vendor relationships with the big, important national retailers like nike. it's elevated its own products and they sell through fairly well and so all of that merchandise margin they believe is something they spent years building up and it's not something that is going to be easily erodible. and so they put their stake in the ground and said we expect that to continue i also do think it's notable revenues are up about 40% since before the pandemic. even though this quarter was down year over year the business itself looks quite different than it did just several years ago. >> yeah. quite a bit bigger victoria, chain retail, there are some ugly charts there they all,or a lot of them, loo really cheap is this an area that would interest you >> so we do have some exposure to a lot of names, exposure to dick's sporting goods.
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i think something they're doing we can look at for some other retailers that may be more specific for them, dick's is opening up their house of sports but offering a service component with putting greens, rock climbing walls, all of these things trying to take advantage of the service component instead of just the goods. i think it comes back to what you were mentioning earlier, mike, the consumer demand is still there. it was just the margins that were really getting hit and some of the higher end retailers like ralph lauren, that's a name we've purchased recently, the high-end consumer is still quite strong we think you can look in that area of retail >> it's been a steady theme. courtney, thank you very much. meantime earlier today sarah eisen spoke to jim breyer at davos and asked if he is buying any beaten down tech stocks amid the recent sell-off. >> if we take a company like microsoft on weakness, i will continue to buy. i will continue to add and hold for years. what we really need is conscious
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leadership, leadership that understands left brain/right brain and this new set of challenges coming out of covid sati is not only a brilliant technical strategist but a great leader >> victoria, microsoft has certainly not performed as badly as some of the very large nasdaq names down high 20s percent, maybe not so cheap but it used to be a lot more expensive six months ago it's in a lot of the quality portfolios how would you approach this name here >> so i absolutely agree with what james is saying we own it and our large cap strategies we've been nibbling at it adding to our position that we have and if you look at our model at the risk adjusted upside potential for microsoft whether you're looking 18 months out, three years, five years, it really has strong numbers there so i think it's one of these, like you mentioned, one of these longer term holdings to have in
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your portfolio you want to have exposure to that tech space, microsoft one that hasn't come down as much as others i think it will give you some stability and if yields start to come down, which we think they are, that should give some support to some of these tech names. >> are there any others? whether it's an alphabet which really has been hit harder and arguably looks cheaper relative to its history, is that on the radar, too >> actually on the radar we like some of these old school tech names. you look at a name like intel, even texas instruments, these are some areas where we've been buying as the names have come down obviously you look in the semi space and we have like a qualcomm in there as well. so really trying to spread out and have some diversification in the sector >> we'll stick with the tech sector it's been a choppy session for apple after a report that china's covid lockdowns have delayed its iphone development schedule
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apple reportedly telling them to speed up development in an attempt to get back on schedule. cutting the price target to $180 from $210 over concerns wall street's expectations for iphone shipments during the june quarter may be too hot steve joins us with more on this steve, i guess the question, should investors really be surprised by this iphone development delay? it seems to me historically it's not always been profitable to trade on news of production issues with apple. >> maybe if they've been asleep they would be surprised by this. apple has been clear in their warnings about how the covid shutdowns are impacting their business we heard on the earnings call last month that a $4 billion to $8 billion negative impact based on the shanghai corridor shutdowns, and then let's zoom back to 2020 when the pandemic first hit and lockdowns were affecting production in the country. we know that caused the iphone 12 to launch about a month later
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than it typically does apple likes to launch iphones at the end of the september quarter and has that december quarter is the first full quarter of new iphone sales, what we saw in 2020 was it happened towards the end of october and that kind of threw off comps and things like that it is something to pay attention to when you're thinking about the last two quarter's earnings of the year. they were able to do in 2020, at least get the phone out even though a month late so they may see that again it sounds like they're more prepared this time, mike >> and all the talk about production, steve, implicit in the worry there is that demand is not going to be a problem, i suppose. is that a plausible assumption that whatever the they can produce they can meet their volume targets >> that's what we keep hearing in the retail sector we hear weird things about consumer demand when it comes to high-end smart phones, at davos qualcomm was saying demand is through the roof for these really expensive phones that we heard the same
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thing from apple despite everything that's going on, inflation, people are willing to pony up carriers are giving great deals and effectively giving them away for free still, the demand is there, mike >> the upgrade cycle has been smoothed out victoria, apple has retained more of its gains than the other stocks here. maybe not that cheap how would you screen it out at this point >> we see this similar, one of those tech names that needs to be a long-term holding in your portfolio. we've been buying it we were under weight we were buying it when it was down and definitely a name we want to hold in a portfolio. they need to be able to produce
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this i'm not as confident that demand will be there quite as much. dan pickering was on earlier talking about he thinks gasoline prices are going to stay close to $4 a gallon for the rest of the year and for an extended period of time that might start to bite into some demand on these higher priced items but yet at this point, like we said, the consumer is still holding strong >> for sure. and, steve, thank you. nvidia rallying after the bell today but overall it has been a rough year for the stock down more than 40% in 2022. joining us now is the managing director of semiconductor equity research and tell me about the setup here, raji there have been concerns about things like the gaming sector demand, the crypto and nvidia
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has been compressed relative to where it's at the last couple of years. >> yes, i agree with a lot of what you just said the setup is fairly good i think a good quarter any kind of -- however, any potential upside or additional upside could be capped on the gaming side. gaming has slowed down in part because of some of the lockdowns in china they generate probably 20% of their gaming revenue from china. some of the premium pricing in terms of their gaming, gpus, i think the pricing premium, the gap is starting to kind of narrow it down a bit and then ethereum collapsed in price. it's hard to gauge generating from ethereum but we estimate it could be between 2% to 3% of overall sales. those are some of the head winds
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on the gaming side the data center business is growing 80% year over year probably 70% plus. if you hear the commentary out of google or facebook or other hyper scaler companies, they're spending a significant amount of money and capex on machine learning that does not slow down an nvidia, the primary beneficiary for cloud capex spending and enterprise spending >> anything in particular that you would be looking out for in the results on the call that might give you a little bit of pause right here i ask because it is well below its highs. that assumes it's going to recapture a lot of that valuation premium.
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what might be the potential hiccups? >> i think the hiccups are the head winds in gaming related to macros particularly in china or if there's a slowdown in overall demand gaming. i think the ethereum, cryptocurrency risk is something that they can control versus, say, three years ago something we need how big an impact that could have that we'll have this quarter. i do think, though, the core thesis around data center and data center growth, that thesis has not changed at all and i think the growth is going to continue to be extremely strong. you have to understand, i mean, this stock, the multiple has compressed 50% the stock is trading at a five-year low, yet their earnings will grow 30% this year plus or minus, even if you have some slowdown in gaming.
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the earnings are going to grow 30%. so this is all about a reset in the multiple nothing really to do with multiples. you can make the argument across semis. we've seen multiple compression yet earnings growth will be on average probably mid teens >> right >> nvidia has been hit hard because it's considered a higher valuation chip stock >> sure, absolutely. it's down about 29 times forward earnings so i guess it was 16 not that long ago, to your point. thank you very much. victoria, you talked about old school tack. nvidia kind of standard-bearer for new tech what's your thought on that one? >> we like it. we think -- we have exposure to nvidia and we like the stock the concern is obviously going to be the crypto mining and the game, as was mentioned i think the ai is where the future is for this company it's where we're really going to be looking to see how they
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report and what that part of their business looks like going forward so we continue to hold it in our portfolio. >> and in terms of your thoughts on the market, we do see the nasdaq bouncing a little more today than the rest of the market obviously it's in a deeper hole. a lot of times the former leaders are not the ones that lead you out of a downturn what do you think makes sense in terms of the growth versus value or growth versus cyclical trade right now? >> value had been leading for a while starting at the beginning of the year and we've seen that differential really start to come together a little bit we've taken some of our value names off. we've added a little bit within the growth space we're still pretty balanced between the two. we do like some of the cyclical names. we like some of the credit card names like an american express or a discover financial. we talked a little bit about ralph lauren, so we like some of those retail names but we think
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you need to be pretty balanced because of the volatility we expect we want to see yields move higher and then start to level out. we think that's going to help the equity market calm down a little bit and we do think inflation is going to start to come down this summer. that should give a little bit of a reprieve to the federal reserve. we had the minutes come out
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earlier this afternoon do we still see the two 50-point basis hikes and go to 25 in september or what that looks like i think we have volatility to look forward to but a balanced portfolio to handle that >> the market seems okay with calmer yields this week. thank you very much. the s&p 500 up almost 0.9% more than 5 to 1 advancing volume two-year note yield has leveled off. the market has taken one quarter point hike out of the expectations based on where it was trading and the volatility index has ebbed. we're hanging around the high 20s and the 30 level as we head into the close it looks like it's going to go well into the 4,000 level. that does it for "closing bell." over to scott with "overtime." thank you very much. welcome to "overtime." i'm scott wapner you heard the bells. we're just getting started right here at post 9 right to our talk of the tape today. the moment of truth for a once high flying tech stock including my headliner today watched it get cut nearly in half is it poised for a rebound and what is riding on those results for a nasdaq that's down 30% from its highs josh


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