Closing Bell - Closing Bell Overtime: Is AI Trade Back On? Plus, First Reactions To Apple WWDC 6/8/26

Episode Date: June 8, 2026

Tech stocks resumed their climb while investors wrestle with a key question: has the market come too far too fast? Brian Kersmanc of GQG Partners weighs whether stocks are approaching a top or still have room to run. Gargi Chaudhuri of BlackRock joins to discuss stock valuations, the economy and what the Federal Reserve could do next as investors navigate a changing backdrop. We get first reaction to Apple's Worldwide Developers Conference. Nilay Patel of The Verge and Jay Goldberg of Seaport analyze the company's latest announcements and what they mean for Apple's position in AI and consumer technology. Joe Mazzola of Charles Schwab discusses what retail investors are doing with their money and whether anticipation around a potential SpaceX offering is influencing investor behavior. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

And at the NASDAQ, McWARE doing the honors. Welcome to closing bell overtime. We're live from Studio B at the NASAC market site. I'm Melissa Lee, along with Mike Santoli. Tech sucks rebounding from Friday's big losses, the down basically flat by the S&B 500, up about a quarter of a percent. The NASAC bouncing back by nearly 1%. Same for the Russell 2000.

We are also watching Apple as Tim Cook wraps up his final WWDC as CEO. Interesting intraday moves there, jumping at the open and declining during the keynote. Much more on Apple coming up. And you can't buy SpaceX just yet, but you can get a piece of Elon Musk through Tesla. That stock higher by 4%. Interesting day-to-day. We didn't really recoup a lot of the losses in some of the big, bombed-out sectors.

Semiconductors, for instance, memory stocks, software. Yeah, NASDAQ 100 gets back, not even a third of what's been lost over the prior three days. So the burden of proof is kind of there. We've kind of eaten through all of the positive earnings-related catalysts. All the revisions went higher. the semi-sector doubled in two months and then barely went back below its 20-day average for about a half hour on Friday. So, you know, we'll see if that was enough of a reset. Clearly the market kind of tells you in this way when the crowded trades are getting a little

too crowded and when we've seen a little bit too much of an imbalance. So we'll see their yields didn't do much today. You know, on the macro side, it was relatively quiet. So we are waiting for that inflation number. But I do think it maybe is, you know, a little too much to ask to say, oh, we had a one-day a little jolt to the downside, and that's going to be enough. But I was wondering, from your perspective, I mean, a one-day jolt for the semiconductor index in this case was a correction.

Significant, yeah. So, I mean, was that not as valid because it happened in a single session, or is it just as valid? I wouldn't say it's not as valid because it happened all in one bite. It's much more about just how much of the upside overshoot did we take care of. And I think that's where it tells you that, you know, look, no violation of any uptrend was sustained or anything like that. And the rest of the market has tried to pick up the slack.

It's just one of those things where I think it's sort of you've got to prove it after a day when there was a total opportunity to actually rally through the day. And in fact, you backed off through most of the session. Let's get more in the markets now with Christina Parts Nevelace. Christina. Well, you talked about it. Stock staging a sharp rebound jolt. Monday or today as investors really stepped back into the market following Friday's AI-driven.

sell-off. So chip stocks, we have to say, they led the recovery today with every component of the Sox Index finishing higher, the Sox ETF, jumping almost 6% its best day in over a year. You had Marvell and Intel pacing gains, both up double digits today. Micron, which actually dropped 13% on Friday, also bounced back as well, but not as much, almost 10% higher today. Wells Fargo raised its price target to over $1,200. Even as South Korean memory makers like S.K. Heinex and Samsung sold off, sending Cospi down about 8% this morning. And Intel also topped the S&P 500 after reports that Google and Nvidia are evaluating it as a potential backup chip manufacturer to TSM. That's how you saw its shares close 11% higher in connectivity.

Corning finished up about 5% after announcing a multi-billion dollar deal with Amazon and fiber for fiber and glass solutions. And that's why you had peers like Lumentum and coherent, climate. climbing higher after steep losses just last Friday and Thursday. And then we had shares of Nvidia that moved slightly higher into the close after Apple executives confirmed at its developer conference that private cloud compute will run on Google Cloud using Nvidia chips. And I know I talk about tech, but it wasn't all about tech at least nine S&P 500 companies, including Humana, CSX, United Rentals, Simon Property, all hit 52-week highs today, guys. All right, Christina, thank you.

as Christina was just talking about some of Friday's hardest-hit chip names rebounding a bit today, closely followed tech analyst Ben Wrights, of Millius, saying in a note today that after a few of the mega-cap tech firm's decisions to tap debt markets, the current Cappex estimates are now very conservative. So is the AI trade on the hardware food chain back on. Joining us now is Brian Kirchman. He's portfolio manager at GQG Partners. Joins us here. Good to see you, Brian. Good to see you as well. Thanks for having me. So to be clear, you've kind of been skeptical of the whole ACHUCHRsman. kind of mega-cap tech move for a little while here. Got this little bit of a wobble in the trade.

Where does that leave us? Because obviously there's still a lot of air under some of these stocks. Yeah, so I think what the issue is, on a longer-term basis, is sustainability. So how much further does this sustain on a longer-term basis? And at the end of the day, a lot of these chip names are commodities. And if you look at it in terms of a commodity, when you have a rapid price increase that you've had. So in some areas of memory, you've had a 15x price increase over the course of last year or so, if I were to re-contextualize that and say, like, energy, and I would say,

okay, you're going to have a 15x increase in energy. We're from $60 a barrel to $900 a barrel. How many energy stocks would people be buying right now? I mean, we're talking about 100 being sort of unsustainably get demand destruction. And you have seen some demand destruction coming in on the memory side. I mean, Xiaomi, you know, their production was down 18 percent, low-end smartphone maker overseas. So it's a sustainability element of that. And how much are people sort of pushing into the second and third derivative play of AI? sort of moving away from maybe Nvidia first and then to the second and third derivatives and trying to find that undiscovered territory.

Again, it's about the headroom. Where does this continue to go longer term? But for the big spenders, the capital markets are still open, right? I mean, credit markets are very friendly to all of these, as we've seen with Google. And so there is no constraint. So this commodity cycle can be a commodity cycle, but the upturn can last for a very long time, as long as they can still get the money to buy the stuff. For sure.

So if you look at like an alphabet, or you look at a meta, the sort of opposite of our thesis would be that they have plenty of leverage on the balance sheet. So one turn of leverage can give you another $200 billion in spending. But what you've seen is that, for example, Alphabet has gone through a pretty aggressive debt raising cycle, even more recently. And for them, it's not a whole lot of debt. So the credit ratings are fine. But you've kind of seen to go to every one of these European markets, the Japanese market, raise 100-year bonds in some of these locations. And then they chose to raise $85 billion in equity capital more recently. And I think that dovetails with the other point

of sort of IPOs that are coming, are people just all rushing to raise equity capital before the market maybe has a little bit of indigestion on the backside of this? Yeah, I mean, that's obviously been this kind of shadow over the market for a while. I do wonder if you've seen Mag 7 underperform pretty substantially year-to-date, if that is already, to some degree, reflected in there. In other words, you mentioned the trade moving on. It feels as if we're kind of pre-selling or at least maneuvering to get out of the way of some of this supply, and I don't know if that means it's not going to have that big a dampening effect. Yeah, so to some extent, that may be true. They might be sort of front end loading the impact

of this. I think part of what you've seen up into this point with some of the Mag 7 names is that people are acknowledging that there is a lot of KAPX being spent. And a lot of cases, you still do not have a proven sense of where the profitability is coming from. Even Meta the other day talked about, okay, we did well in terms of the advertising business, but now we had to push back into monetizing on subscriptions for AI. I mean, we saw Open AI go in that direction and they actually push to, you know, the advertising space to try to generate revenue. So it makes you wonder if maybe you're starting to tap out on some of this. And I think the markets are getting more skeptical. The free cash flow is gone for these

businesses. You're raising equity capital. The buybacks are all gone for these businesses because you're raising capital instead. And now you're raising in all these different debt markets. At what point does that become saturated in terms of that? So how much more room does it have to run? I mean, for many investors, these are companies with different business models at this point. I mean, they're hardware companies before they were not hardware companies. In terms of where you find opportunity, though, energy, which is a much underloved name to put it politely in the markets, but you like that. Yeah, so what's interesting about this, if you think about energy and semiconductors and ships, they're both commodity businesses. And one of the things that is interesting about a commodity cycle is who loses supply discipline.

And what you see is that on the energy side, we talk to a lot of these CEOs on a day-to-day basis on the energy side, despite the fact that they would agree that there is a longer-term process to open and return flows back to quote-unquote normal. very long term in terms of natural gas. What they're all saying is that they're not changing their assumptions into how much CAPX they're going to put in the ground and how much more they're going to increase supply. And you haven't seen a supply response. Any backfill that you've seen up until this point

has been the SPR and inventory drawdowns and maybe a little bit of China backing off on their purchases. So nobody's coming to the market with supply. And then you have this supply constrained on the other side, which is driving tremendous amount of free cash flow. Again, on the memory side, they're all racing to add capacity on the other side as fast as they can,

into a massive spike, and you saw demand destruction the other side. So it's interesting. It's almost the opposite side of the same thesis, if you will. And then in terms of other parts of the market that are being either neglected or cast aside, software, how do you navigate through that? I know you think that there's opportunity there. Yeah, so we had disengaged from software a few years ago. I actually wrote a white paper several years ago called Software is the new shale. We were describing or sort of comparing software to shale companies and the overinvestment and over-exuberance there.

This is back in like the 21-22 time frame. We re-engaged and bought back into some of these names year-to-date this year. And one of the things that we noticed is after some time of underperformance from a stock perspective, they're actually becoming more behaved. So they're reducing or talking about reducing stock-based compensation. They're pushing towards more gap earnings and free cash flow generation, investing in R&D. And then the other thing is it seems like the baby's been thrown out with a bathwater. AI has reduced development costs.

I think everybody can agree with that in terms of AI. But if I have a user interface, and I'm accessing public information? Yeah, maybe my terminal value should be zero. But if I have a user interface and there's something else that's a lot stickier, that's harder to replicate, think about like an HR resource system. Do you really want to vibe code an HR resource system

be at risk that you're sharing HIPAA data with other people? I mean, go ask Anthropic. They literally use work data themselves. They can't vibe code it away themselves. Same thing with CRM. They use that system themselves as well for their own salespeople. Ask any salesperson who's gone through a CRM switch, how painful that process is, these are lower percentage cost of your IT budgets.

So they keep going. They have pricing powder pushes through. Why replace that entire thing and replace it with something that could potentially have flaws? That's our view, and I think there's a lot of value in a lot of those. No, we'll see. Mark, it intermittently seems like it's starting to get a glimmer in that direction. We'll see if it continues. Brian, thank you very much.

Thanks to see you. All right. Well, oil, slightly higher today, but off-session highs on the latest hopes for peace between Iran and Israel. Pippa Stevens has more on that. Hi, Pepper. Hey, Michael, oil did close well below the highs of the day after Iran stopped strikes against Israel, although Tehran's ministry of foreign affairs telling CNBC they would resume strikes if Israel continues to attack Lebanon. Israel's Prime Minister, Benjamin Netanyahu, then saying,

the war against Iran and Hezbollah, quote, has not yet ended. Now, overnight, U.S. oil trading as high as 95, 47 after Israel and Iran exchanged attacks over the weekend. With oil under $100, the national average at the pump has come down 34, since Memorial Day, now at $4.16. That is still up $1.18 since the start of the year, but in the U.S. at least, demand has remained solid. That is not the case in China, where Goldman Sachs estimates a more than 20 percent year-over-year decline in gasoline and related products retail sales. Overall, the firm estimates 4 to 5 million barrels per day in demand destruction. Now, one thing to watch is the Houthis, who have so far largely stayed on the

sidelines during this war. They said today they will stop. rarely ships transiting the Red Sea, attacks that the Bob Elmandab straight to the south of the Red Sea would impact energy markets since Saudi Arabia's oil. The bypasses Hormuz does flow through the Red Sea and via Bob Elmandaub. Melissa? Pippa, thank you. Pippa Stevens. So how could the economy and markets hold up amid elevated energy prices? Joining us now is Gargi Tawdry. She is BlackRock's chief investment in portfolio strategist for the Americas. Gargi, great to have you with us. It's wonderful to be here. It seems like the consumer is largely hell up, but are we getting to a point where you're getting concerned?

So we just published our advisor outlook, and one of the themes that we point out in this monthly piece is the resilience of the U.S. economic data. Now, whether that is evident in the job market data that we saw on Friday, retail sales, we haven't really seen the impact of higher energy prices feed through yet into the consumer. Now, obviously, I use the word yet, because that is something that we're going to be watching out for including the transmission mechanism to core inflation, which ultimately is what's going to determine the next step for policy as well for markets. It seems the market has been able to perhaps look beyond some of the risks that there is an

inflationary surge or that the consumer is going to be hurt, mainly because there is this Cappex cycle that is creating so much value in the near term. So as an investor, as an advisor, how do you deal with the possibility that, you know, we're getting a little bit imbalanced here? So it is about the CAPEX cycle for sure, which is manifesting itself in incredible earnings, at least that's what we saw in the first quarter, which mainly came from two levels. It came from AI and it came from energy. And the way in which to think about it is for those advisors listening is really telling your clients to move towards those durable growers. So think about the growth that you're seeing already in the CAPEX cycle and optimize on that

with an ETF like BlackRock AI, BAI, which we are seeing a lot of clients use to complement other non-AI exposure in their portfolio. And frankly, energy security, whether or not, you know, hopefully we'll continue to get some positive headlines, but I think energy security will be with us for a while. And again, that is a great energy hedge in your portfolio as well as a durable theme in your portfolio. In terms of just positioning, I mean, after Friday's sell-off, I'm sure there are a lot of inbound calls about am I diversified?

And so what do you advise people right now? Because I would imagine that there is some overlap, especially if they're investing through ETFs that they don't even know about. They're invested in S&B 500, NASDAQ, even in certain energy ETS, where the story that's driving that ETF is still AI. Absolutely. And I think we saw this in March. And of course, we saw that for, you know, on the price action on Friday.

I think what's very hurt for clients and the incoming had been around where do I sort diversification. I think that's been the real challenge when stocks and bonds go in the same direction. And at least on Friday and in March, you didn't see your traditional diversifiers work either. This is where we've long held, especially in our advisor outlook, talked about the concept of diversify your diversifiers. So really thinking about what is it that you're trying to hedge? If you're trying to hedge inflation, let's look for inflation protection or a broad basket of commodities. Or actually, if you're trying to hedge the stock bond correlation, look at ways of seeking absolute return with alternative strategies like the Isha's alternative

ETFI-A-A-A-Lt, which, again, a lot of interest because it's giving you absolute return without that market beta. You seem pretty skeptical that bonds, the old style, will continue to or resume their diversification impact. I think that it depends on the shock that we're hedging for. If we are indeed in this recessionary traditional risk off with growth expectations going down to negative territory, I do think bonds will work. And especially when we're at the yields that we are at today, I think that obviously allows the Fed to cut rates and it allows long-end rates to go down. But that is not the risk we're hedging today.

We're actually looking at a really powerful, resilient, AI-driven economy with inflation at 63 months running, not hitting. the 2% target. And I think that is an environment where long duration becomes tougher. And we've seen investors continuously move to fixed income. In fact, May was one of the strongest month of ETF flows for fixed income, but they're keeping their duration in the shorter rent of the curve, keeping it into inflation-linked bonds, and seeking income. And gold is still increasingly being used as a hedge in your... It is very much so. We look at advisor portfolios, and one of the things that we find in our advisor portfolio insights is really that 12% of our advisors that are sharing data with us are using an increasing amount of gold as a geopolitical as well as an inflation

hedge in their portfolio. Edging out Bitcoin, it would seem, at this point, at least in the near term. Yeah, for sure. I think, look, we've obviously seen some of the volatility in performance as well as, you know, investors questioning the role. We've long held said, you know, we talked about this. in the years past that when you invest in Bitcoin or any really volatile asset, you have to think about sizing it appropriately.

In a world of rising rail rates, which is where we've been, it's obviously a lot of the traditional diversification have broken. So you see that with gold, you see that with Bitcoin. But this is a scarce asset. Is there a role in a portfolio? Absolutely. Have clients been asking about this? Absolutely as well.

And we're continuing to tell them that size is appropriate. size it appropriately, 50 to 100 basis points, recognize the volatility. Think about the scarcity of the asset, and that is the role that it should play in your portfolio. Goggy, thank you so much. Thank you. See you. Well, results from Vail Resorts are out, and the stock falling after hours. Company missing on earnings, 881 per share compared to the estimate of 896. Revenue came in right in line, and Vail lowered full-year guidance, matching an update it gave in April. The company blaming the weather, saying conditions were extremely unfavorable during the quarter, which ran through February, March, and April,

and that added to what it called one of the most challenging winters in history. But the company says it's going to continue to invest in lifts and snowmaking to improve the guest experience. You would think the weather would be discounted by the market in advance. I mean, it's like we knew about it. Yeah, there you go. At least not the last 5%. Right.

Comey, Apple, dive into everything Apple announced today at Tim Cook's final, WWDC, a CEO, Will it be enough to move sales and the stock? You're watching Closing Bell overtime, live for the NASCAR market site. Ravel making a big move today, rebounding from a disastrous day on Friday, but also stock moving into the S&P 500. The shares are up 9.6%. Flex, also being added to the S&P 500, but not seeming to get the traditional boost that does come with being added to the index.

That stock a little bit less than 1% lower today, being moved out to make room for these stocks, Poole Corp and Campbell's. Both those stocks have market caps around $6 billion. Marvell is at about 40 times that much. Well, Apple's finishing the day down 2% after hitting an all-time high earlier in the session. The company kicked off its worldwide developers conference today, rolling out new features, including the long-awaited overhaul of Siri AI. Apple also announcing new partnership to use Google's Gemini models. So is that enough to satisfy those who say the company has fallen behind on AI?

joining us now to discuss the Verge co-founder and editor-in-chief, Nelai Patel, and Seaport Research Partners, Senior Analyst, Jay Goldberg. Guys, great to have you both with us. In anticipation of this event, Apple had an enormous move up 15% since earnings till this morning. Jay, I'm wondering if what they announced keeps that gain intact and maybe even moves the stock higher? Yeah, I mean, I think what they announced today was a solid step in the right direction. It's probably what Apple should have announced last year.

So the glass half empty version of that is they're behind schedule. The glass half full version is they're headed in the right direction. I think Apple knows better than probably any company out there what they want AI to do. Now it's just a question of them executing and building to that. So I'm positive, but it's going to take a while to get there. Neelai, from a user or developer's perspective, was anything fresh today beyond what we were anticipating? painting, and how do you think it fits into the overall Apple narrative when it comes to it's dealing with AI?

Yeah, you know, from the user perspective, what they announced today is on par with what chatch media was offering for free two years ago. That's a big step for Apple. They didn't have that. Now they do. It's running on their own architecture. I just attended a tech briefing where they said that they've actually re-architected their private cloud compute to run on Nvidia hardware in Google Cloud.

So that's a big admission for Apple, right? They've been all in on vertically integrating their own hardware and software for ages to get to this point where they're just at parity with free chat, TBT, that they've had to re-architect their system to run on the Nvidia platform in Google's data centers. I think what the argument they're trying to make is they've done the hard work now. This is the reset. They've announced it. All the things people are talking about in terms of agenic workloads or automating apps or doing even more in the future. They have the ability to do that now as the market develops. I just heard Craig Federer you say, look, this is a lot.

is all really interesting stuff. These are shots people are taking. What works for software development doesn't work for every field, doesn't work for consumers. There's a lot of safety implications. Apple is going to do what it does. It's going to build the architecture and then it's going to wait and see to deliver a polished version of the product when it's time. Is that enough? I think we're going to have to find out. Yeah, Craig Federigi specifically said some are racing forward seemingly pursuing AI for the sake of AI without a clear regard for the people that it's meant to serve, and that would be us. And I'm wondering, Jay, if you think, you know, taking this sort of slower route, the one that is certainly less capital intensive might at the end of

the day be the smarter route. Maybe they have a better sense of how consumers want to engage with AI, how they will use AI, and how much they are willing to pay for AI, since they are actually capping the daily usage of this new Siri AI. Yeah, I mean, Apple, I think a big part of Apple's brand promise to consumers, customers is that trust and the privacy. I think that's a scarce commodity among tech companies today, and Apple is built his brand around that. And so they have to live up to that. And all of this talk they had about new parental controls. I know personally, that is very interesting to me. And I think it's really important for AI. I don't think anybody Apple, Open AI or Anthropic, really fully grasps where privacy is heading in this AI era.

So I think this is, you know, Apple probably has a better shot at doing it right than anybody else. And, Neelai, for as much as I guess it has seemed, and you lay out there the ways in which Apple's playing catch-up, it shares are up like 50% in the last year since they seemingly disappointed last WWDC. And they've kind of seemingly clung to this idea that whatever this new world is, a lot of it's going to run through their devices. they're willing to kind of just have that role and not spend as much on CAP-X and I guess preserve flexibility that way. Is there a risk, do you think,

that they get left behind in a material way? Yeah, there's a long-term risk here. I think you're right. In the short and even in the medium term, they've realized, Claude runs on your iPhone in an app. OpenClaught runs on Macs. They're selling out of Mac minis and Mac Studios

because that's where people want to run these products right now. The long-term risk is that the app model gets disrupted. That Apple's enormous services revenue line gets disrupted because Claude is calling the Uber and that is not happening in the app store. You're playing different kinds of games on different kinds of devices, but all the economic work is actually happening on these phones gets disrupted by agents and AI and maybe those companies can develop consumer hardware that's more compelling in different ways. That is a significant long-term risk. If you look at all of the promises these companies are making about agents and autonomous systems, they are getting away

from apps in real ways. And the people who make apps are talking about it all the time. How are we going to get distribution? What are we going to do when everyone can vibe code everything? That's where the industry is. They're aware of this risk. They're also aware of this opportunity. And they want to get away from that Apple task and they have for a while. That's Apple's long-term problem. I do not think it is a problem in the short or medium term. That's interesting. Yeah, you would think if AI is going to revolutionize things, you wouldn't leave all that profit margin in there for $1,000, you know, handheld devices. But we'll have to see how that goes.

Neil I, Jay, thank you so much. Really appreciate it. A new study on AstraZeneca's experimental weight loss drug was just released, and we'll bring you the results and the stock impact next. And Corning, a big winner today after reaching a multi-billion dollar deal with Amazon to make optical fiber for its expanding U.S. Data Center operations. Closing Bell overtime. We'll be right back.

Welcome back. Shares of Tango Therapeutics soaring 50% after positive data for its pancreatic cancer treatment. This was an early stage trial, only 12 patients, but when combined with a drug from Revolution Medicines, 11 of the 12 saw their tumors shrink. The company says the results support moving on to a larger phase three trial. Well, AstraZeneca, just releasing phase two results from its obesity pill at the American Diabetes Association's Scientific Sessions in New Orleans. Angelica Peebles joins us now with more on that pill. other highlights from the conference. Hi, Angelica. Hey, Melissa. Well, Astrodenica says that its experimental pill helped people lose up to 11.8% of their body weight after 36 weeks. Now, there were widespread reports of gastrointestinal side effects like

nausea and vomiting, though Astros says that only 2% of people on the highest dose stopped the treatment because of those GI issues, and there weren't any liver safety concerns in the trial, which is important for these GLP1 pills. So AstraZeneca's planning a broad phase-3 program for a lechoglypron based on these results. But it's going to be years before this pill enters the market. And by then, Lillianova will have had a years-long head start. And we might see other pills from companies like Structure Therapeutics. And I was in New Orleans this weekend.

And I had a chance to talk to Novo CEO Mike Duster about the early success of the Wagovi pill, which already has three million prescriptions in just five months into the launch. It took us basically 12 weeks to get to one million prescriptions. and in the following 10 weeks, so now we're at week 22, we added 2 million additional prescriptions. And that's in light of our competitor, of course, being there in the second part. So if that's not acceleration, then I don't know what it is. I had a chance to ask that competitor, of course, Eli Lilly, CEO Dave Ricks, about sales of that drug Fondaio. And he says that those prescriptions are markedly higher than the 20,000.

And he shared with us about six weeks ago. So lots of attention on the pill guys. Yeah, but Angelica, I mean, Eli Lilly had a new high and Novo shares finished down by about four and a half percent. I mean, it is one prescription every five seconds year to date. And yet the stock still doesn't get credit for the most successful launch of a pharmaceutical in history, perhaps. I mean, it is amazing. I'm wondering if the CEO had anything to say about that. You know, I asked him what it's going to take to get people to care about that pill.

And he says that it's going to take time. and they're focused on execution, continuing to see those sales increase. But, you know, I think why you're seeing the Lilly's stock go up today is because we had that data, of course, from Reda Trutide, that Triple G, the most powerful weight loss drug that we've seen to date. And people just have more confidence in Lilly's pipeline and the fact that they're going to be able to grow sales from here. And, you know, it's possible that we're going to start to see people believe more in the Novo story with that Wagovi pill. And that whole narrative has just changed so much over the past year. People, of course, as you know, Mel, thought that Lily was going to be the winner with the pill. And it's possible that Novo was going to be able to really move that category forward.

But until we start to see some of those results, some of these prescriptions translate into sales, there's going to be more questions about that pipeline for Novo. For sure. Angelica, thank you. Time now for a CNBC News Update with Julia Borson. Julia. Mike, President Trump today, formerly nominated Todd Blanche to be the next Attorney General. Blanche has been serving as acting AG since the removal of Pam Bondi from the job. Clanche who served as the president's personal attorney before joining the DOJ and has drawn

sharp criticism from Democrats and some Republicans will now need Senate approval for a full-time appointment. Former Border Patrol commander Greg Bovino is reportedly eyeing a run for president. Bovino, who's removed from Minneapolis in the wake of two Americans being shot and killed by federal agents there, launched a Bovino 2028 website with the campaign tagline, Men Fight Back Bovino, who recently retired, told News Nation that is just exploratory for now but would launch a campaign, quote,

if it all comes together. And NVIDIA CEO Jensen Wong today declined an invitation from Senator Elizabeth Warren to testify at a Senate committee over AI development. Wong said while he's unable to attend, he invited the committee to visit NVIDIA's headquarters in Silicon Valley to discuss the company's technology. Back over to you. All right, Julie, thank you. Trading by retail investors,

rebounding sharply recently. Up next, find out what they're buying and selling and the potential impact of more lenient day trading rules on margin accounts. Plus, check out chairs of diesel engine maker Cummins, a top performer in the S&P 500 today. Stock up 3.3%. UBS upgrading the stock to buy from neutral and hiking its price target to $850 from $560,000 from $560,000. citing an improving truck market and a bullish outlook for its power business. Closing Bell Overtime. We'll be right back. Welcome back to Closing Bell Overtime, live from the NASAC market site. Tech rebounding today, getting back some of last week's losses.

The Dow did close in the red, but the S&P 500 was up 3 tenths of a percent of the percent of the NASAC gaining almost 1 percent. Micron Intel, AMD, among the best performers. Micron, though, still down 8 percent in a week. As money moved into tech, eight of the 11 S&P 500 sectors were lower. defensive sectors such as utilities and staples getting hit hardest, Hershey having its worst day in nearly a year. Well, as tech stocks regain some lost ground from Friday's sell-off,

the question investors are trying to figure out whether to stick with AI or look for better returns elsewhere. And elsewhere could mean a series of huge companies about to go public, of course, including SpaceX on Friday. Joining us now to tell us how retail investors are behaving in this market is Joe Mazzola. He is Charles Schwab's head of derivatives and trading strategist. Joe, great to see you. You know, May was a, you know, pretty strong month in general, but also for some of the dominant themes, a lot of momentum areas did very well.

In fact, to the point where people were getting concerned about the level of speculative activity. What does the activity among your clients tell you was the tone? Yeah, Mike, so we use the stacks as our measure. Basically, that looks at activity from clients. And so it's not add two, no, it's actually behavioral. And what we saw, we saw about a 10% jump taking it into about the maybe the 70th percentile, if you kind of look over the last year or so. So it was, you know, it was a strong month for buying.

Buying was really centered around some of the themes that you talked about in VDIA, Micron, Intel. So whether it's semiconductors or whether it's memory chip makers, those were the lead buys from our clients. One thing I found interesting, though, Mike, was it wasn't just, activity within equities. We saw a little bit more diversification, a little bit more buying in ETFs. And then we actually saw a decent amount of option trading, a little bit of a pickup there. And I think one thing that kind of caught my attention was the activity around put selling. So, you know, dampening volatility throughout most of the month up until last Friday.

And investors use that as a way to participate in the upside without actually having to put out the full the full stock ownership and the full cost of stock ownership. A lot of them participate, either selling puts or buying some calls for the upside. Did you interpret that in any way as defensive? You know, I would say that it's a way to reduce risk to a certain extent because if you can pick and choose your spots and where you're willing to own the shares, you know, specifically by selling puts, and you're doing that in a company like Micron, which, you know, think about it. At one point, that was trading around 650 in the month of May, mid-May, and that's where we saw the kind of the pickup and activity. And your selling puts as a way to take ownership of that stock around those levels or maybe

a little bit higher. Then, you know, you do forego the upside on the stock, but when it pulls back and which it did on Friday, it gives you a little bit better chances of entry into that position. I think it's a little bit more of a cautious way to play the upside as opposed to chasing some of that upside. Now, you know, that being said, I think across the the market. We've seen a lot of call buying. And I think that that's something that kind of came to a roost on Friday when you looked at some of the positioning. And I think a lot of the sell-off we saw on Friday had to do with some of the option positioning kind of going into that short-term expiration. Yeah, for sure. Joe, I love your perspective on this rule change. It took effect today,

SEC changing a longstanding rule for frequent traders, call so-called pattern day traders who have a margin account, lowering the balance, minimum balance from like $25,000 down to $2,000. What impact do you see that having on your customers? I mean, I think it lowers the barriers dramatically, Mike. I think it gives active participants who maybe have smaller accounts or maybe starting off or looking to learn more about the markets and participate. It gives them the opportunity to be more active in those accounts. And that's a big change.

You've got to remember, that rule has been in place for about 25 years. And when it was put in place at that time, there weren't the same type of controls that the brokerages have now. So what we're looking at now is kind of an intraday buying margin way to kind of measure risk. And so as opposed to the $25,000 minimum with, you know, four in-and-out trades in five days triggering some type of restriction, it gives a lot more flexibility to the retail investor to be able to participate and be able to be a little bit more active in their accounts, with smaller balances. Are you anticipating a big pickup and volume? That remains to be seen because I think there's a couple things that affect that beyond just

that lowering of margin. I think, you know, volatility always plays a big part. I think whether or not, you know, there's participation in certain specific sectors, right? I mean, where we've seen a lot of the volume pickup has been in the semiconductor and the and the memory chip maker space. I think if they are able to kind of maybe find a short-term bottom and pick back up, you'll probably see more participation there, more volume there. But it's one day into it.

So, you know, I'll know a little bit more at the end of the week when I have a chance to kind of see those stats. All right. Well, check in then. Thanks, Joe. Thank you so much. A new Fed survey raising a major red flag on the state of the consumer, what that could mean for the market in interest rates straight ahead. Plus, we'll take a look at what is behind Bitcoin's bounce back today and whether the rally could be for real.

Bell overtime. Be right back. Welcome back. Bitcoin rebounding from last Friday's low, under 60,000 to around 63,000 after falling, again, below that 60,000 mark on Friday. Today's move coming after Strategy, announced it's buying 1,50 Bitcoin for roughly $100 million. Strategy stock fell 24% last week after the company sold just 32 coins during May. Crypto names like Coinbase, Mara Holdings, and Riot platforms are all higher. in sympathy today. Now, of course, strategy did what it does, which is it sold common stock in order to buy more Bitcoin and top up its holdings while keeping some other cash in reserve. The average price paid by strategy is $65,000-ish, so it was last week. So you're still kind of

below that a little bit, but it's a little bit of a dissonant message. Having sold a little bit, there was talk they wanted to have a little cash for the preferred dividend or something. Yeah, I mean, to be fair, Michael Saylor did say on the previous earnings. call that he wanted to inoculate the market to the idea that that strategy would be opportunistic sellers. And so maybe that's part of what it was, seasoning the market for that day when they are going to sell. I don't know. The narrative hasn't changed between last week and this week. Not at all. And it's still a matter of, you know, it has not participated when risk markets do rally. Right, exactly. Well, the New York Fed's latest survey of consumer expectations showing

U.S. households are growing more concerned over their financial situation, the share of respondents that see their current situation is much worse compared to last year, jumped to over 13%. That's the highest level in four years. Meanwhile, concerns over prices aren't as elevated. One-year inflation expectations post a slight drop down to 3.5%. But the three-year and five-year outlooks remained unchanged. The survey comes ahead of the Consumer Price Index for May, which comes out on Wednesday, which should be really interesting in light of the hotter-than-expected jobs report on Friday,

what that does to feed that sort of narrative that there is this inflation out there in the economy that must be tamped down. This survey really did run counter not just to the inflation impact or potential impact of the stronger jobs number, but the jobs number themselves, because there was expressed disappointment with the idea that the job market does not seem all that promising right now. So it's hard to know what's noise and what's not. But on the inflation side, I mean, that has been a touchstone.

The New York Fed survey is usually seen as one that's not as jumpy as some of the other ones. And the fact that three and five remain anchored at three plus percent could be a little concerning. A little bit of dove fuel, but not much, yeah. All right, we'll talk about a super slump. Campbell's shares getting crushed over the past year, and it's getting kicked out of the S&P 500 as well. So could this be the bottom? That's next.

And check out some S&P 500 stocks hitting 52-week highs today. Eli Lilly, Humana, Elevance Health, Old Dominion, and United Rentals. Close the bell overtime, live from the NASDAQ market site. We'll be right back. Welcome back to overtime. Campbell's shares are down roughly 40% over the last year and the company's latest earnings are not doing much to alleviate concerns. Brandon Gomez has got the details. Brandon. Hey, Melissa. Yeah, headline numbers mixed today. Earnings beat, but sales fell with both snacks and meals and meals down 4%. A big takeaways on the consumer, Campbell's on the call saying at-home cooking is still holding up remarkably well. A brands like Rose and Swanson benefiting from shoppers looking for low-cost meals.

And we heard a similar narrative from General Mills and Kraft Hines earlier in the quarter, pushing. center aisles for grocery. But snacks remained a challenge. Shoppers cutting back there. Now, the real headwind, inflation. Campbell's now expects 2027 inflation of roughly five to six percent, up from about 3 percent previously driven by oil, freight, aluminum, and supply chain pressures, all tied to conflict in the Middle East, which is not a good sign for the industry. And all of this is feeding one of Wall Street's biggest concerns, Campbell's dividend. Bernstein downgrading the stock, along with others last week, expecting a dividend cut coming, asked about that again today. The company's CFOs said they're obviously not raising. The board is

regularly reviewing, and the company is trying to balance that dividend rate with the company's ability to reduce leverage as quickly as possible. Now, management said broader price hikes would be a last resort, focusing instead on better promotions and revenue management, guys. So they're basically eating the cost. Their margins are getting thinner. That's a problem. And that's the thing, is that this is exactly what Bernstein said they were worried about, is that higher inflation for companies like Campbell's Soup. We're going to hear from another one, Marrow Smuckers was going to be eating into that margin and putting more pressure on the companies. And you hear from Campbell's today affirming that that's in fact what's happening.

Yeah, I mean, the dividend yield is above 7%. Obviously, that's up in the zone where investors should think, is that too good to be true? Because you have the possibility of reducing it. On the other hand, the same Bernstein report said that their dividend payout ratio relative to earnings, it's high, but like basically it's been up in this area before in the last 15 years. I guess the real question is if they're not getting credit for the higher dividend, you in other words, nobody wants the stock anyway, would a cut be the kind of thing, along with getting ejected from the S&P 500 that says, okay, it can't get worse from here. Maybe things are washed out.

It really is a double whammy. Like you said, they're removed from the S&P coming this week as well, being one of those other headwinds and really puts it in focus for a lot of investors. But again, you sort of see the headwinds that are driving consumers to the business. These companies should be able to capitalize on that momentum. And because of those rising pressure on margins, they're not really able to the same way that they should. Are people not snacking as much? Or are they just going down to private label, for instance? Because that Bernstein report specifically mentioned private labels being a threat to this company in particular. Absolutely. And then that's when you start to bring in the broader grocers, right? Like a Walmart, a Costco,

really huge competition from those private label brands on some of these center of the aisle products. And so, again, we'll sort of see how that plays out quarter over quarter. But it is something that the companies are themselves monitoring. And as you point out, analysts are tracking too. The other thing that was mentioned, thank you, Brandon, was that PepsiCo is waging a bit of a price warrant potato chips. Oh, yeah. Which, you know, goes after some of Campbell's brands. And pretzels, dots, which is owned by Hershey's.

Oh, I love the season pretzies. See that? Yeah. He doesn't love a season pretzel. Maybe eating into Snyders is, I think, is pecan. You know that you're such a font of knowledge about pretzels. Listen, I kind of know what's in the portfolio. So talented. Exactly. The mustard and whatever the heck, uh, uh, pretzels. Yeah, for sure. All right. Well, we'll see if, uh, if tomorrow gives you any follow through to what really was,

a little bit of a tepid bounce, except in semis after a pretty pronounced downturn on Friday. That is going to do it for overtime today. Fast money begins right after this quick break.