Closing Bell : CNBC : June 27, 2024 3:00pm-4:00pm EDT : Free Borrow & Streaming : Internet Archive (2024)

♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ [thunder rumbles] ♪ ♪ i'm scott wapner live from cnbc headquarters. second half setup. a record-setting rally, what has legs and how much is hanging on pce tomorrow? ask experts over this final stretch. a look at the score card with 60 minutes to go in regulation. tight trading ahead of the fed's favorite inflation read tomorrow. look at majors. a little work to do on dow and

zp s&p, nasdaq positive. amazon hitting $2 trillion in market cap you know a day ago extending those gains today. halftime doubling down on that stock. doubling its own position, and stock moving higher today as he made that bullish case yet again. meta, nicely in the green along with apple and nvidia well it is lower again. and it is pacing for a losing week. we will chart it over this final stretch. also watching shares of nike today ahead of earnings in "overtime." a tough run lately for that stock. set you up for that report as well. takes us to "talk of the table." what will lead second half of the year? same a.i.-related stocks or will the market finally broaden in a meaningful way? ask adam. ceo of a research company and cnbc contributor with us out at our hq. do to have you here. >> great to be here. >> satisfied where stocks have been first half of the year and how does that color view from

here? >> funny. we hold our big event this week. 25 investors in the room. sort of interesting pitching ideas. nobody pitched a short idea. interesting's in the past that's been the case. 11 or 12 of the folks used a different valuation metric to justify. everything from next year's earnings to i think someone used and adjusted ebitda in 2026 number. right? people are starting -- i can't imagine how people are reaching for justifying valuation for upside on long pitches. made me a little worried. >> wait. 25 people in the room. >> yep. >> and sounds to me describes a -- i don't know -- overwhelmingly if that's the right word but pretty bullish group? >> people weren't as cautious as i thought they would be. and that was one of my key takeaways. my view is, the financial conditions we've talked about on yore show for a year or nine months really since november last year being easy. that's what it says when you look at the bloomberg or chicago

fed number. talk to people on the ground, in real estate or small business lending, a little tighter. right? the question is, is private credit going to fill the void, still use easing conditions? second we talk about a lot, margins. most people are sketching out lots of stock ideas. imagine expansion second half of the year. >> a key part of your thing. >> yeah. >> your view colored since having these conversations better part of eight months to a year on the idea that margins will hold up, and then stocks do well as a result? that's a key part of your thesis. >> it is. still is. look, pretty triedand tested. stocks, margins go up do well and multiples tend to expand. i think financial conditions okay. margins could come up. estimates a little too high. people lower in september. i think market could be okay. i don't think depreciate second half of the year the way it did in the first. hard to sketch out another

second half return. volatility i think in the late summer, but end the year higher. >> talking about the same kinds of stocks remainder of the year? or do we have a more meaningful broadening of the market? if so, what enables that to happen. >> the last -- obviously the last couple months seen a narrow market again. mag seven working. year-to-date, a lot of version in this sector. not just the mag seven. every sector except real estate is off. go into meetings what's the excuse not keeping up -- concentration narrow argument? what's it going to be. reasonable argument to make. is what it is. in the stocks, good. if you're not, you're hurting. long s&p less of an excuse. hedge funds, hard to hold them. harder. my general view, though, is that the, probably skewed to the upside still, just because i

don't think we'll see anything that destroys that dream of a.i. productivity. 340e6 most of my meetings, when will we be frustrated for open a.i.? power? you've seen vst and pwr rip higher. transmission and electrification industrial? eaton and -- stocks to point to that have done well. people trying to figure. just buy the obvious stuff? still in the first inning of a nine inning game or pull back 30% and get a second bite of the apple? when my conversations about a.i. are generally going. >> you said 25 people in the room. idea gathering. nobody pitch as short idea. coming to us pitching short ideas, too, thinking about that kind of stocks. >> right. >> are you in turn reducing the kinds of things you would normally short? >> no. for me, my framework and wrote a big note sunday you need

exposure to things comparable to gdp. semis, housing, life sciences. you know? health care services. power, and then avoid the things that i think are shorts. physical retail boxes. human being-focused software. banks. you know, things that, commercial real estate. things in excess for a while you think, why banks? reasonably positive on the economy and where we are, why are banks not going to work? >> good point. reason, the whichy is strong they don't fully participate. if it's weak they do fully participate. down side. what i need to believe on banks, they're going to be productivity beneficiaries from a.i. and i'm unwilling to believe that because early in the cycle, see spending first. run existing systems. same time have new systems. i don't think they'll see the cost-cutting. >> you're telling me, wait a

minute. we shouldn't be positive on sectors that are not going to benefit from a productivity standpoint from a.i.? it's like a.i. or nothing? just like if you're an a.i. beneficiary in some way. >> yeah. >> buy the stocks? if not a direct beneficiary from it, either from productivity or spending to your business. >> right. >> you don't want to own those kinds of stocks? >> some. value stocks improving the balance sheet. banks generally compete on pricing. investment my whole life and certainly hasn't grew into a shareholder incrementally. usually man tests inferior sort of the end user or something else. i think the economy can be fine, and banks can do okay, but i take a step back. say, okay. banks long and you love it? what are you rooting for in interest rate environment? back up. it's a -- >> part of it. >> part of it.

why bank stocks are doing better as yields came down. >> if that works i'd rather loan in of the other stuff i know will grow gdp more more competent. >> not short the banks but won't keep up with broader market. >> some have done pretty darn well. jpmorgan up 17% year to date. citi's up 19%. goldman sachs around record highs. in large kept up with the market. >> they have. from here it's harder. depending capital market sensitive or not, ultimately get more activity, more stands, more ipos? less broken iposs that they'll participate and maybe you'll have a tiny multiple on that. it's not like i hate banks. i just don't think they're going to keep up as much as, you know, the better above gdp growers. >> bring in cnbc contributors, joe, and good to have you both with us. brin, all right. what do you make what adam had

to say? does your view largely match up with adam's? >> well, i think the narrative of you have to own things, i don't think adam said this. i think you said this and then y'all talked around it. you have to only own things around a.i. and productivity. i mean, we haven't seen that productivity. once again i'll bullish on palin to palantir and nvidia. product from i've aye a narrative. it's a let's hope this happens. everything's now son margins. apple's doing cool stuff with i phone gadgets, or you've got notetakers, but really, i don't think we will see really big productivity gains for some time to come, and so i think you always have to be mindful of valuations. i continue to see that when it comes to growth people continue to feel comfortable in the cues, in the amazons. the metas, apple's et cetera.

not only do you have that a.i. story, right? no revenues from that. you have durable for earnings. look across, like amazon and meta grow revenues this quarter in q2. at 56 -- earnings at 56%. microsoft 27%. so i think that you still are going to have people in these names because of the durability and growth plus optionality of optionality of what could come from a.i. in the next, you know, three to five years. >> doesn't mean, though, joe, that, you you know, the other kinds of imin as can't do well. brin make as good point. if the overwhelming majority of the money is going towards these names, then the other names are only going to do so well. they can do well, but you're going to be looking at sector performances that are, for example, you know, six or six and a half to seven percent. not the kind of even close to

gains in tech of 28, for example? >> absolutely. i agree with everything that adam has said. and brin has highlighted as well. what's interesting is that if you think about the capital that is sitting in cash on sidelines. a lot of conversations that i'm having with advisers this week, what they're sharing with me is that, that capital is coming back into the market, but that capital is actually going into the fixed income market. because they see that as where the value is, and if that's occurring that's to the detriment of the type of stocks you're talking about. the industrials, the financials, the ex a.i. halo. i think something interesting unfolded in this quarter as we've seen the retreat in yields. those sectors have not benefited with actual inflows from an asset allocation perspective. so i'll highlight what adam said at the beginning. i think the second half is a good one but i don't see why we

change the playbook at all. where it's about a.i. it's about semis, about exposure to technology, and i think it's represented in the performance you are seeing from names like amazon in the last several days. >> yeah. look, we're searching at trivarian for every a.i.-related word and every earnings call transcript and every webcast presentation to see who's benefiting. >> get some printers. printing out thousands of pages because everybody is talking about it and those who aren't will. >> do it in the club. no printing. i'm serious. we just do it efficiently. >> get my point? >> no. what i'm saying is, you start looking for a model, gpu, peek makpeek -- people make it up when they're not. medical case, ch, talking a bit on productivity. brin, i assume you meant out the obvious semiconductor. seeing from consulting firms, from power, from a.i. software

where the revenue trajectory is picking up. i agree ultimate profit pool is unknown and paying anticipatory for productivity is probably too early. i think the biggest problem is a lot of people use the word a.i. and they think that what they're really just saying is some sort of efficiency in analytics or better extraction of data. i told you, ice can search every earnings transcript the last 15 years for ten words in two hours. okay? if i did that ten years ago, have to open control f, and -- take, efficiency is massive. i didn't describe anything a.i. generative is much more common. misusing the phrase a.i. >> ask everybody this. do you think now in the here and now. brin, start with you, because you own the stock. nvidia. is it the market's greatest asset right now or is it the market's greatest liability? because of how much it's run. now people wonder whether they'll be more volatility in

the name. asset --. okay. got you here. 150-plus percent gain year to date. what is it now? >> i definitely think it's not its biggest liability. i mean earnings come out, i don't think until august 31st but they're delivering the goods. the biggest eight. all other hyper scalers are buying from nvidia. 87% market share, huge margins. i still think not definitely the biggest liability but can cool off, though. it may not be its biggest driver going forward. i do think these other companies that have earnings much, much quicker than nvidia, like amazon. huge efficiencies i think will do really well, i think from a positioning perspective, you'll see more money flowing outside of the speculative zero date options flow into other names like amazon and meta. et cetera. than an nvidia over the next couple months, because earnings are so far out. >> yeah. joe, how would you answer that

question? i mean, it's -- >> all due respect to the move seen in nvidia. but the stock's gone up an awful lot in a reasonably short period of time. does that make it a liability at this point? >> so it is clearly the mvp of the stock market. >> right. >> i agree with brin. the greatest asset, but, therefore, it's also one of the market's biggest risks. the risk being that not just nvidia but a lot of these companies in the a.i. halo don't deliver on the expected earnings growth. >> anyone assess that? >> it's the best. it's the best product early on in a multiyear cycle. i could see somebody wanting to own taiwan semi. a monopoly, or other things to get exposure to the same theme. that's a trillion market capital probably two or three eventually. there's other things you can own. i can see people wanting to say,

you know, in oct 10 trust and buy broadcom. so one plus one equals three. others way to do play it than just nvidia. the best company capturing most amount of pricing now. and end 2026. don't have vision past six or nine months. i think the only thing is we're innocent until proven guilty. meaning see something that makes you flevs. three to six months away from being able to meet demand. i don't think we'll see that second half of the year. if you think we get a totally different playbook second half of the year, not a different playbook unless you're nervous close to demand first half of '25. >> joe, same narrow market, then, until we're not? >> we are. shot you a note before the show. i think something within software and credit brad kearsener for bringing it up. i don't know where adam and brin are on this, but software the last several days seems to be

recovering. i own a lot of these names. palantir is a name i might be adding to that position. something interesting that's going on on software. >> uh-huh. >> see if it's more than just a near-term bounce. >> crm, for example. up 4% today. salesforce. you made the case, adam, earlier, to not -- don't be sucked in by the div. >> depends if you're a software that is related to human beings and, like, seat count and revenue per employee. esee the human capital management stuff or erp stuff. being more guilty until proven innocent. >> like the workdays? >> yeah. stock wasn't good late february to may. meaner was salesforce or others. >> right. >> i think adobe's print a couple fridays ago got people. catalyst to get people back into software. >> right. >> i look at it. let's see what revenues look like and if they can sketch out an acceleration story. interim i know semis will be

good, they grow way above gdp next five, ten years and not really sure how all the software plays out. they're not at important, unless you're talking about something around security and sort of the a.i. stack or transmission or other sufficient. those are still going to work. >> joe, a lot of marbles in "overtime" today in terms of nike. just bought it. didn't you? >> i did. listen, scott, technical in its nature. expectations for nike going into this report are low. talking about sales growth at 1% that could be a multidecade low. you want to hear fundamentally, hear what's going on in china. hear what's going on with innovationation and derivative, what's going on with relationship with wnba. they have to step forth with strong expected growth. to your advantage fundamentally that the expectations are so low. reasoning behind my trade is technical. >> all right.

brin? a thought on nike? any temptation to get into this name? >> i definitely have a temptation. with joe when he walked through the trade. i don't buy companies day before earnings. just like a hard rule. too much can go wrong. look at micron. face ripped off if you bought the call. put call, spread, whatever. right before earnings. we'll see what they say. i don't think it will recover fully after earnings if they're good. maybe step in after the earnings report, when we get more understanding of fundamentals. >> i know you don't like consumer names. what about -- >> nike's got probably, you know, a durable brand that at some point will be a good buy. we're wearing they're shoes a lot more in the office than we used to be. right? but, look, i could see what joe is saying technically as a short-term trade it's good. innovation for 2025, believe that before you get a big position to puhold a while.

>> see you soon. send it for the biggest names moving into the close. >> two-week surge after roaring kitty posted and animated dog onx. those shares up 34% at one point before held for volatility. 80% in the last month. levi strauss taking 16% after q2 revenue came in light. warning consumers generally cautious and aren't spending a lot on discretionary items. ret retailer, though, hiked dividend by 8%. first increase in six quarters. >> priippa, appreciate it. just getting started. a rough year so far chewy down double digits. kevin mccarthy owns that stock and telling us, results after the break. live in our global headquarters today and you're watching "closing bell" on cnbc.

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shares less than an hour away from earning. falling near 13%. lots of pressure. joining me with a setup before the results. good to see you. >> nice to see you, scott. >> what's been the problem here? >> nike has been, as you probably know, in the kind of early stages behind the scenes of doing innovation reboot. basically the last year. started really in ernst mid-2023. we immediate more plain talk and accountability. we're in the stage the pipeline is building but we need more proof points throughout the fall for this kind of newness to take

shape. right now newness is very important. it's about 10% of their sales. why this is so important is, it drives the -- newness drives the top-line brand. drives full price selling and of course drives margins. the good news, seeing very early hints of this. we saw it in march with nike upsetting adidas with getting the german federation, football federation. we just saw last couple of days the top five nba draft picks all wearing nike. and encouraging you to do a search of the pegasus 41. a workhorseshoe around since '83. but if you do a google trend search on that, and look at how tracking of that versus the last five, it's very encouraging. that, plus some brand heat we're seeing with the olympics. i think, you know, there are early proof points that innovation is starting to come

around. but they need additional layers of this to come into fruition over the next 6 to 12 months for sure. >> interesting points. when you say of this pegasus shoe, that it's been around since 1983. therefore, there's been a lack of innovation as well. has this company been too reliant on the past? we know about all of the hype around the jordan brand and all that. but, you know -- that's never going away. right? i'm not suggesting in any way, shape or form it will. still the shoes a lot of people want to wear, but has the company been too reliant on what was rather than what is going to be? >> that argument can definitely be made, and i would say that there was a course correction that was needed as a result of this focus on growing dtc and kind of taking their eye off the ball on the storytelling, the connections with the athletes. and that's something that, you know, really, when i'm alluding to the fact regroup started in

mid-'23, new leadership came in. breaking down the functional silos. so it's really kind of still in the early stages. i do think even though they're going through this franchise management with the jordans, the air force right now, which will give them a little bit of a pass on this quarter. not expecting anything exceptional, like flattish revenues to margin and kind of high eps but to the comments made by the previous few, viewer, previous people on you know, they really need to show they're stiainability going forward with innovation. today it's incumbent upon management really, results aside, incumbent on them to do three thing. one, provide line of sight to high teen margins for the business over a several-year period. two, you know, we need to

understand how these layers of innovations are going to come into play. and that they're sufficient enough to offset the franchise management process that's going to be -- you know, unfolding the first half of next year. so that there is ultimately growth. then the last thing is we need accountability. we need to know who's running point? and with what strategy? obviously there's going to be more told on that kwuming at the -- >> who's running point? i mean -- if we're questioning who's running point, i mean -- the ceo. everything that -- >> contract expires in january. >> everything -- everything that you've suggested is wrong with this company seems to flow back to execution, management and everything else. do you think, do they need a change? >> they do. they do. i think -- i think they need to have -- they've got a couple internal candidates right now

that are very capable. running product. running marketplace. i think those are two very good candidates right there. you've got a couple ex nike candidates, too, that have been in the discussion. and then you also have other competitors that have been discussed. but i do think that it's a -- assumed that the leadership of this company will be changing over the next six months. >> i wonder what that means for the performance between sort of now and then and the kinds of changes that even could be made, like the ones you're calling for. i suppose we'll see. kevin, appreciate your time very much. kevin mccarthy, neuberger berman joining us on "closing bell." upnext, a stress test in the review, banks looking to announce capital plans tomorrow. mike mayo is back breaking down what's really at stake for the biggest names in that space. who do you really need to watch out for tomorrow? with any potential announcement

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all right. welcome back. watching banks today after those stress tests yesterday. stock slightly higher after all 31 of the banks showed they were able to withstand a severe recession scenario. this as they prepare to release their capital return plans tomorrow. joining me, mike mayo. wells fargo. thanks for being here. you say they were tougher. in what sense? >> toughness on the fed's test

at three cs. credit card losses higher than before. second c were, was commercial loan losses. i think highest ever in the fed stress test. third c, surprising. costs. costs were quite a bit higher even though fees are lower. and the fed kind of extrapolated 2023 results forward. i think that was an unusually low level for fees. whereas year before that extrapolated high level. truth is somewhere in between. costs dinged several banks such at goldman sachs. >> the other thing stuck out to you another c, if you will. that citi. your number one pick. did especially well? >> who would think that we'd be mentioning citi group, fed stress test and a good result in the same sentence? like, wow! after those times when citi failed the fed's stress test. on your show after one of those times calling for management accountability, but here citi -- >> to say it mildly.

>> here citi, like, that was a surprise. that they -- we estimate they had 30 base points lower capital in the future. and that's the best of the bunch from what we saw yesterday. i think right for the wrong reason. thought i would be right, because they exited a lot of consumer business outside of the united states. as you simplify, it pays dividends literally and figuratively, but the reason is, their revenues especially fee revenues deemed more resilient than others, at least on a comparison basis and benefit from that. you're finally seeing the fed give recognition to some of those powerful fee revenue streams such as their global payment it's business, which i estimate that one business line is worth the entire market cap of citi group. buy one business get the other four for free at citi group. >> you say disappoints results. why? >> comes down to some of the

loss assumptions, expense assumptions. the regulators require about 70 basis points higher capital out of bank of america, but if you zoom out a little bit, bank of america, i estimate had 30 billion excess capital after this test. 20 billion excess capital piling on about $14 billion, $15 billion capital a year. different shades of gray and not going -- you shouldn't change or buy or sell based on that result. >> do they, would they change their buyback or dividend-type decision based and that result? ultimately we're looking forward to that tomorrow. who says what? >> absolutely. nothing changes in terms of a material increase in buybacks of banks from the first half of the year to the second half of this year and into 2025. >> for everybody? nothing changes? >> maybe it slows on the margin for a few, but remember. the fed used year-end data. first quarter bank results were really good. >> hmm. >> they built up capital.

rates come down. you'll see a benefit to the capital ratio. in the end of the day, the fed is requiring about a half percent more capital for banks, and banks cap rates up half percent year over year. kind of in the same place but all banks have somewhere between 3 and 30% excess capital as percentage market cap. you're in a good place. don't miss the big picture here. the fed threw the kitchen sink at the banks. this is a scenario worse than the financial global crisis. talking 8% decline in gdp. 10% peak unemployment. 40% decline in commercial real estate from these levels. everything's going south same time on this test and after applying the test banks have enough excess capital to equal. u.s. banks in a very good resilient place. >> why is goldman sachs today down 2% on the other side of these results, which you declare

to be worse than expected? >> so i love and hate the fed stress test. love it because it shows banks are much more resilient. remember the global financial crisis? banks are prepared tore a tail risk like that. fantastic. i hate the fact it's a black box, such volatile results. goldman sachs got a reprieve last year and going back to where they were two years ago. they're, the fed's stress test versus last year revenues down and expenses up over 10%. that's not the way goldman sachs has acted in the past. look, better to be conservative than not. in the scheme of things, a little surprise from my standpoint. >> what gets the bank stocks in general to do better? they're up 8.5% year to date. addible parker sitting in the seat in which you are not. suggests doesn't like bank stocks. times are good, they do less than the rest of the market. when times are bad, that's when they feel it. it's sort of like, damned if you

do, damned if you don't. >> at a tipping point here for the banks. said it start of the year. i said july 1st, around then, the tipping point for banks. you see inflection. net interest income going into the second half of the year. eps growth starting fourth quarter negative to positive. three years of negative earnings growth down 20% three years adding this year. two years after earnings should be up by one-third. by the way, half of that one-third eps increase baked somein somewhat. stay tuned. back second half to look at inflaekz. where go earnings? where the stocks follow. >> mike mako, thanks. and tracking biggest movers into the close. pippa stevens is back. >> variety the spice of life and this stock is serving. all the details coming up next.

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we're about 15 from the close. back to pippa stevens for a look at key stocks she's watching's what do you see? >> scott, spicemaker mccormick jumping on second quarter earning beat on top and bottom

line. what ceo brendan foley told cnbc about the state of consumers. >> there is a lot more value-seeking behavior out there definitely see that. for us, such a broad range, hitting a lot of different price points and a lot of different brands allowing us to serve that consumer. i think what consumers are saying, cooking more at home as result of that. >> and shares of rh jumping 10% after the furniture company announced ceo gary friedman brought $10 million worth of shares at average price $2.16.10 per share. own as quarter out of all companies outstanding shares. >> pippa, thank you. pa pippa stevens. brendened gomezmez here. >> and double-dump it losses following -- double-dump it losses. hinge selling knockoff drugs

through loophole and a fraudulent supplier. reached out refutes all claims saying supply completely legitimate allowed by fda policy and long-term, do plan offering branded gop-1 drugs. supplier got back to me saying all frad claims no the related to current owners and management team. i checked as well on the fda's website. bbi labs listed as registered compounder. worth noting, too, hunterbrook media arm of hunterbrook capital raised conflict of interest concerns in the past. co-founder and publisher joins "closing bell: overtime" next hour. >> look forward to that. still ahead, walgreens plummeting on heaels a report. "closing bell" is coming right back. majority of the leadership

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day ever. bertha coombs with those details and seema mody looking ahead to nike earnings coming out in "overtime." what's on your mind, mike? >> scott, a week ago sat here said oh, have a big june options explanation. last friday. release the market to move around a little bit more. not going to have that sort of anchor of a lot of the accumulated options positions. this week has really been nothing if not steady. almost to a fault. working on the seventh day where the s&p won't move it's a much as half percent and below the service, keep talking about things going their own way. kind of random walk one way or the other. that said, it reflects a stable and somewhat comfortable macro picture. you had apple on a week to date basis more than offset losses from nvidia. therefore, mega caps taking their turn. the way the market, i guess, plays defense or just bides its time going into pce tomorrow, we

had actually bond rally into that expected print. >> yeah. i mean, again today you see, nvidia's lower by 2.5% but microsoft, meta. amazon hitting an all-time high. josh brown talked about it earlier today doubling his position yet again. alphabet is in the green, too. nvidia goes down. the slack picked up by other names. >> it has been. obviously, you know, as long as it can work, it's relatively healthy. t although people are raising alarms to the degree the average stock is deviating from the big-cap-driven indexes are going. that said, amazon and apple coming in helping out break in the momentum factor relative to the overall market that happened when nvidia peaked over a week ing a. that happened in march.

really two months. not saying it will happen again but it's nothing that's gone on this week really broken us out of that idea that overheated market, parts of this market, are still in cooloff mode. >> not overheated at all. in fact cold today. walgreens is. bertha coombs, worse day ever. what's going on? >> the quarter saw health care unit including village mv cut losses after cutbacks. big problem, u.s. pharmacy. reimbursem*nt pressure on generic drugs back of the store and margin pressure front of store from consumers who the ceo says still stunned by the sting of high prices. wait for discounts on discretionary goods. 8,500 store footprint is too big. walgreens already on track to close 200 stores but wentworth told me about ten times that many are underperforming.

mindful of the impact and low income areas saying they need more community help to keep those stores open's shares today, scott, hitting a 27-year low. >> wow. bertha, thank you. bertha coos. seema, set the take for us here. nike stock down double digits from percentage point year to date. what do we need to hear tonight? >> right. that's right. the stock has lag. you pointed out. not only underperformed s&p retail etf, broader market down 13%. wedbush securities chocked that up to innovation. encouraged by nike's partners, dick's sporting goods, positive on the new pipeline and momentum growing around lifestyle running category. other topics investors want clarity on, nike supply chain in china. efforts to diversify and projected return on investment on the upcoming paris olympics, scott? >> appreciate it. seema mody. mike, nike, stock's not done

well, we said. new competition coming into the marketplace. what are your expectations here, if any at this point. a guest on earlier in this hour who was pretty negative on the execution, on management, and said they need a change. >> yeah. i mean, i think the market is somewhat reflecting that. a slow bleed of enthusiasm in terms of an opinion and posture toward the stock. looking at in the current fiscal year, the one that just started, expected sales, basically supposed to be even with two, three years ago. net income expected to be flat with two or three years ago. clearly anything that gives a hint that you're going to be changing the top line growth story away from stagnation is probably what the street is craving. stock definitely way underperforming. doesn't make it outright cheap but cheap in nike terms, braid -- grade on the curve. american brand, what do you pay for it?

underscores, keep talking about how the huge tech platform companies are driving a huge percentage of the overall earnings growth. stocks like nike are flat on earnings for years. disney, flat versus 2018, or down. best buy, all of these big consumer names have still been earning below peak levels for a while. that's sort of the bulk case. get any moving in the right direction and capitalize on what is for now a decent economy. >> less than a minute left. tomorrow morning, pce. i know everybody's sort of fixated on this. what it's going to mean for the calendar of cuts, if you will. bostic out today saying, yeah. appropriate later this year. also talked about the "orderly slowdown of the economy." you do start to get the feeling more people are inside that room concerned about doing damage to an economy that they don't need to do? >> yes. some giving voice to that concern. i think if it's benign pce

inflation number tomorrow you can open up july to be that needle, when they can set the stage for an easing -- outright ease. >> and pce tomorrow morning. mike santoli, thank you very much. bells ringing. green across the board. send it into "overtime" now with jon fortt. [ closing bell ] stocks trading in a tight range as amazon sees another ruche higher. counter weakness in ship software. strong. a nice gail caps. welcome to "investors club." i'm jon fortt. morgan brennan is off today. u dow's worse performer the past 12 months. nike results and instant analysis as soon as those cross. plus, shares of hims and hers health falling after a short report from hunterbrook media. calling into question safety of the company's weight-loss drug suppliers. talk

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