take advantage of the selloff. it's got a 10% free cash flow. >> weiss >> taiwan semi give you the reasons before. >> adobe >> all right you let us know if in fact it becomes one. see you on "closing bell." "the exchange" starts right now. ♪ ♪ thank you very much, scott welcome to "the exchange." i'm kelly evans. cleveland fed president loretta mister says inflation is still above the fed's goal, so is the market premature on betting on rate cuts next year? we'll ask her directly when she joins us in a live interview, just ahead our market guests sees a potential for stocks to do better than expected next year, only if two key conditions are met. luxury is weak, butd beautys

strong you can still tweet me your guess. we'll talk to the ceo about the consumer trends he's seeing. before that, dom chu is back with the numbers >> some modest moves right now the dow industrials down 106 points, 1/3 of 1%. the s&p 500, sitting right at 4500 on the nose just about flat on the session, down two points. at the highs, we were up about nine, and down 15 at the lows. so a modest move for the broader indecision and the s&p the nasdaq, 14,101 the luxury end of things taking their cue from across the atlantic the uk listed shares right now down 11% revenue growth lower than expectations the company saying it's maybe not likely to meet its

previously stated annual profit goals. shares are down 11%, dragging down othering. even raffle lauren and tapestry, down 2.5%. so that luxury end not fairing well today take a look at some of the other big box guys walmart and target in the last couple of days, walmart this morning, both reporting better than expected profits and revenues target, again, down modestly it was up a little earlier today, and walmart was down 7.5% walmart hit a 52-week record high yesterday so the setup was not there but walmart did beat on profits and revenues, but the forecast left things to be destired check out the setup over the year walmart was up 10, 11%, even with the move we're seeing here. target, still down 13%, even

with that surge yesterday. so, again, key on this, maybe a bit of a mean reversion play for walmart and target >> dom, thank you very much. investors are on everyone, after walmart's cfo says purchases slowed in october and they are thinking slightly more cautious about the consumer even target, which soared yesterday on better earnings, looks to be facing a deteriorating consumer backdrop, but are these concerns priced into shares or not let's ask christopher horver chris, welcome >> good afternoon, kelly >> can i ask you what you think is going on after sifting through these reports the last couple of days >> i think you're seeing earlier in the year the head winds on the goods retailers. you had revenge travel you bought everything for your home you bought your workout equipment during covid so you had this long tail of headwinds.

what we have observed since august is more cyclical headwinds. so we're seeing weakness on the low end consumer you know, walmart talked about this on their call today people are increasingly awaiting for events to shop so until it's on sale, until it's so close to need, i'm not going to buy it. that continues to exaggerate over the year. and then the other piece that's going on is really pricing so you have disinflation in food so food inflation, which is 2/3 of walmart's mix it was up double digit to start the year now it's 3%. so that's slowing things down. what's not happening is the uniting picking up as prices settle in. >> true. >> so that's problematic then the last piece, you're seeing a ton of denation most of what you buy around the holidays and for christmas is brought over on a boat with ocean freight rates coming way down and demand coming down, you're seeing massive

disinflation in goods, appliances, furniture and other electronics. all that product is coming in at a much lower price without any unit response. so in summary, it was shared, now it seems much more cyclical. >> it was share of wallet, now it does seem much more cyclical. that very well captures what investors are gleaning here. so what does that mean for the stocks target could say, well, a lot of bad news was priced in maybe it could do okay you know, walmart's always been kind of a healthy name to own in a port folio what's the play here strategically? >> yeah, it's very muddled right now. normally into a slowdown you want to get defensive and own something like walmart, which is more staples oriented. but the problem there is, that disinflation in food and weakness at the low end really hits them -- is very hard, and it's a name as you see today,

which is down 8% because it was owned and expectations were high and so i think at the margin, it's tougher for walmart i think it's tougher for target, because they are exposed to the low end, though not as much as walmart. so the names we would be buying today include costco, with tremendous share games in loyalty. we would be buying ulta beauty there's still some share of wallet reversion going on, and you have generational trends going on and then at the same time, the vendors need them. the last area we are focused on is the more defensive names that send to do well. if you do have a consumer recession. that's really the auto parts retailer so auto zone, o'reilly, have a

long of strong pricing power, and the consumer focuses more on needing and maintaining their vehicle against buying discretionary items. >> and you're neutral on walmart and target i can't help but observe you are almost taking for grant it the consumer is heading for a slowdown why can't they just regain momentum here? why can't we have a first half of 2024 where the labor market is still okay and real incomes are better because of the disinflationary trends is that possible or highly unlikely >> i think you're going to see spurts you'll see the consumer show up around black friday and christmas. you'll see them come back in spurts but we have used this analogy that we're boiling a frog. it doesn't seem that bad, but slowly that temperature is turning up, and the headwinds you're seeing are wage growth

slowing. it's running 4%, and continuing to moderate. the balance sheet burnoff of covid savings is particularly impacting the low to mid end you have one to two-point head wind for student loan repayments starting i think that's why you are starting to see it now it's the confluence of wages are slower balance sheets are less full and now you have the student loan payment and it's sort of culminating as we see it currently. >> that's fascinating. almost like a mini beige book session here chris, thanks for joining us >> thanks, kelly sticking with the consumer, how bad can it be? it's j&j popping, nearing their best day of the year they own dip and dust, super pretzel and they saw strength

from theme parks to supermarkets they also have seen volume growth and pricing power into next year. let's bring in the ceo dan, great to have you here. welcome. >> nice to be here thank you for having me. >> are you a little unnerved after hearing from our retail analyst? do you think you're the cleanest shirt in the dirty laundry >> we might be listening to it, it certainly sets you back a little bit but i think the great thing about j&j, and it kind of ties in with what you were just talking about. we're sold in such a diversified places with iconic brands that we can withstand the puts and the takes of the consumer today. >> what gives you the confidence going into next year in particular you could have come out with a beat but much more cautious guidance >> we feel good about the momentum we have coming into 2024 we have been working really hard at building up capacity and capabilities inside our

organization with that capacity and capabilities, we're seeing some nice growth. and just about every one of our segments and we feel good about 2024 >> so i do want to close by asking you about the weight loss drugs, but i want to get a handle on what is driving the consumer strength. you are relatively a low-cost item it doesn't necessarily break the bank, but you're discretionary maybe for a lot of people that purchase is not necessary, or that extra icy at the game they could forego would you typically expect to see volumes start to fall if the consumer was really weakening here >> we've been resilient during times like that in the past. i think the reason we are is just the opposite of what you said we're kind of a reward for a lot of cases where you might not be able to go on vacation or buy the new car, you might not buy the new house, you can afford a dip and dots, you can afford an icee

so just the opposite of that, we feel resilient when times like this come around >> and there's the experiential element of this. people will find some of these branding what about, though, the impact of weight loss drugs again, these might be areas that people used to snack heavily on and not so much going forward. >> we're watching that closely to date, we have seen no effect of that at all on our business but we're going to watch it. we're smart in the way that we operate, we're smart in the way that we put the right products out. if we see reaction to that, then the organization will take steps to make sure that we're selling a product that fits the consumer today. >> 3.5 billion market cap, and an interesting story dan, thanks for joining us we appreciate it >> thank you very much thanks for having us on today. still to come, stocks or

bonds for 2024 which would you rather we'll ask steve whiting what his strategy is next year and why he expects equity returns to surprise to the upside and an exclusive with loretta mister, who is making headlines this morning, saying monetary policy is in a good place but inflation is still above the fed's goal and let's get a quick check on markets. with the dow down 120 points the s&p down a tenth of a percent. so is the nasdaq so the dow is the underperformer today. and check out shares of carvana, down on the news that amazon will allow auto dealers to sell cars through its website starting with hyundai. the ceo of hyundai is joining us next hour. "the exchange" is back after this

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welcome back to "the exchange." if you're not sure exactly how to position your portfolio these days, you're hardly alone. many feel stuck between a hard place and stocks looking a little scary as recession fears mount. here to weigh in for what to do

the rest of this year is steve whiting, chief investment economist. welcome, steve >> thanks for having me, kelly >> maybe we can add a note about how strong your conviction when you answer the question, where do you go, stocks or bonds for the next six or 12 months here >> it's a bit of both. u.s. yields are still great competition for stocks but global yields are terrible competition for stocks this whole period where we've had this outperformance of the economy and underperformance of financial markets, this year and a half of hangover, i think we're going to shake it off. honestly, as we see employment slow down, inflation slow, the fed is likely to become a little more protective of the expansion that we have and along with this rise in profits that we're seeing. we can talk about downward guidance, but we have raised our

estimates for this year's profits and the levels for the next two years this combination is more attractive for financial markets generally. and even as we see some slowing in the economy coming. >> let's talk about that slowing. how significant is it? >> we expect u.s. gdp growth next year to be 1.6% it means going from a labor market generating 400,000 jobs to 200,000 jobs this year down to something much slower it's really a rebound in productivity growth. it's about cyclical industries like you saw the home builders index hit a new annual low, having trade and manufacturing activity contract for a year we're going to be be able to take those rolling recessions and roll them out in the coming year that's more attractive for ward looking financial markets. it's also helping the bond market find its top end yield. we would think that appreciation

in intermediate bonds is going to be quite attractive compared to where we see cash over the next few years >> strangely, i feel less scared with your bonds call than with the one about stocks now bonds feel like okay, you've got the return, slower economy we already see the rate cut odds being priced in. it would really take a massive rebound in inflation or a huge additional new problem on the fiscal side to really make those feel scarier on the stock side, though, that's where things look shaky, don't you think? i know everyone's conviction into year end. it feels like, again, to quote the history, you typically want to sell the last fed rate hike, and that's where we are now. >> look, rate cuts are not a panacea for the economy. but i tell you what you have had, the global stock market, excluding the magnificent seven, fall about 8% over the last two years while profits are rebounding that's when we get a broadening in market performance, which we

expect over the next two years so it's not really about year end. i think getting some of the bad news in downward earnings revisions for the coming quarter and the one thereafter will make it more achievable for us to grow and have a positive return in the coming year >> i hope you're right the recession has been rolling across industries, but it could roll out without being more disruptive how unusual would that be by historical standards everything post pandemic has been different so we're totally leaning on the table that this would be different. but it would be a break from a historical pattern, no >> just as you said, the pandemic was different to see demand for goods surge collapse for services. it sent us into a period for economic growth, that we're eventually pushing our way out of but there's been nothing about the economy that's been normal in this post pandemic period

there have been periods before where one sector of the economy takes a big loss, it broadens because of some financial impediments. thinking about the 2008 period is one but beyond that, the way the economy has been performing now, where stimulus drove the initial gains in the economy, we didn't overbuild in the private sector, then we saw we couldn't live with weak labor demand services demand is coming back this is the path for the economy is quite different from a simple singular collapse in everything, and then rebound so the one thing about our forecast, though, there's nothing v-shaped about the recovery we expect single digit eps growth for the next two years. but as a company by some moderation in interest rates, it's still going to need an attractive return period for the average stock, which has gone down for the last two years. >> i hope you're right steve, thanks for joining us to make your case >> my pleasure

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ask your provider for cologuard. ♪i did it my way!♪ (adventurous music) ♪ ♪ ♪ be ready for any market with a liquid etf. get in and out with dia. welcome back we got a slew of disappointing data this morning. jobless claims coming in higher than expected last week, industrial production contracted further in october, and home builder sentiment hit the lowest level this year. and while the fed govern nor

lisa cook says a soft landing is possible, investors aren't so sure as yields and equities are under pressure today let's get another view now from cleveland fed president loretta mister with steve liesman. steve? >> hey, kelly. yes, welcome from the federal reserve bank of cleveland. we are inside it with the president of the cleveland federal reserve bank, loretta mister thanks for joining us. i'm always excited to come out here to cleveland on a beautiful day. maybe not so beautiful on the data but before i get to the data kelly talked about, let's go back a couple days to the cpi data how did you react to that? >> i was pleased with how it came in. it's continuing the view that we're making progress on inflation, discernible progress. we need to see more of that continuing to be able to assess, you know, whether inflation is

still going to progress as we hope it will but it was a positive report >> was it an all-clear report? did it tell you that inflation has been vanquished? >> no, i wouldn't interpret it that way at all. we're going to have to see much more evidence that evidence is on that path back to 2%. but we do have good evidence that it has made progress. and now it's just, is it continuing >> so you didn't take it that way. did you watch how the market took it? did you notice the idea of any future rate hikes was priced out of the futures market and all of a sudden they brought ahead the probability of rate cuts into the spring >> well, the market is going to react to data. they're reading the data prints the way we are but our job is to -- we're not going to react to one data release. we're going to look at all the data that's come in and given where inflation was, we're going to need to be really convinced that inflation is on that path

back to 2% i would need to see more of continued progress the way we have seen to be convinced we're on that path >> do you think it was right for the market to take a future rate hikes off the table? >> the market is going to do what the market does who am i to say whether the markets are right or wrong we're going to be coming together to discuss what we're seeing and make a plan for what we think the next step is. >> you're not going to say if the market is right or wrong >> i'm not going to say if it's right or wrong >> the you tell me how you're looking at the impact of fed rates, they were at 5% is it still working at 4.5%. >> i mean, we never see those kind of measures part of what the fed does is our monetary policy affects financial conditions overall, right? so we're looking at all of the parts of financial conditions,

including what's going on in equity markets, what's happening in the bond market and the value of the dollar. of course, we're going to look at those movements in those kind of financial conditions. i think the rise in the ten-year has a number of sources. some of it was because they were also the bond market was also reassessing the strong economic data that just came in, as the fed did as we went into the summer and the fall, beginning of the fall. so part of it was that but part of it was the term premium. in that sense, we would, if that were sustainable, that's going to have a dampening effect on the economy. so it would be part of the broader financial conditions we're looking at to determine and calibrate our policy appropriately, given our mandates we're trying to achieve. >> is a 4.5% long bond, along with what's happened with the stock market, is that a welcome,

unwelcome or neutral change in financial conditions >> well, it's a change in financial conditions what we expected to happen when we were raising our fed funds rate, our policy rate. that's what we are anticipating will happen is that we'll get a tightening of financial conditions that will go through the economy, you know, transmit, and that will be what gets inflation back on that path. >> you still see them as helping the fed in terms of doing its job >> it's indig save that the transmission mechanism is working. >> when you talked in october about the need for maybe a new framework for how the fed communicate toss the market here, once you reach this peak level here, can you talk about what that framework would look like go back to what charlie evans did, which is to put some numerical numbers on it, that you won't cut until x happens,

have you thought about that at all? >> i guess my feeling in this campaign, if you l we just need to see more evidence that inflation is really on the downward path. i wouldn't put triggers in there, because i think what we have learned over time is that, for example, it's been a pretty strong resilient economy, in terms of growth and in terms of the labor market yet, we have seen inflation move back down in a, you know, discernible way. i think it would be very hard to put triggers and that kind of precision on one or two data points what we are going to be doing is assessing all the data as it comes in i need to be convinced that inflation is coming down in a timely way i would be concerned if we're in a situation where inflation stalls at 3% for example, or if we keep pushing out when we

achieve our 2% goal. so that's the lens i'm looking at, are we making enough progress, enough evidence that we are on that timely path back to 2%. >> kelly evans has a question. >> president mister, would a recession being a guarantee of looser fed policy? >> we're going to always look at our dual mandate goals, kelly. so it will depend on sort of where we are on both parts of the mandate. so for example, if we do have a slowdown in growth, which i am expecting growth to slow i don't have built in a recession, but i do have below trend growth that's part of the mechanism for getting inflation down i don't have a recession built into my forecast but as we go forward, we're going to be balancing the risk to both of our goals, and that will help determine the path of policy >> kelly, she teed me up i wanted to ask the more direct

question, is your foesrecast foa soft landing, which is continued disinflation without a huge spike in ton employment rate >> i have that in my forecast currently. i think if you look at the economy, we do see slowing when you talk to especially if you talk to district contacts, they're forward looking and telling us they're seeing the economy slow but none of them are really saying that things are going off a cliff or things are slowing significantly. they're just saying we are seeing kind of what we wanted to have happen, which things are slowing down but we have to be very vigilant and keep looking at if zat datad how the economy is moving. in a situation like this, getting that regional information from our contacts and our directors is going to be crucially important. >> if you had to fill out your projections right now, would you

continue to pencil in another rate hike? >> i haven't assessed that yet wri think we are right now is we're basically in a very good spot for policy. we raised the fed funds rate significantly. so think about, you're going up a mass on a ship we're at a really good crow's nest what is the crow's nest? you look out on the horizon and see where the data is coming in, where the economy is evolving. then we'll have to see, is it moving in the way that we forecasted in other words, is inflation coming down in a sustainable path is the unemployment rate moving down is growth slowing? that will inform where we go with policy going forward. so we're in a more balanced place, but i don't think we can say right now what necessarily the next, you know, policy meeting will be. i think we have gotten policy to

a really good place, so that we can observe. i think that's a good place to be >> apologies to the producers who say we're out of time but they're also very nice people. i have to try this one more time the market has 100 basis points of rate cuts built in for next year the average fed official has 28. the market is watching now you want to tell them they're sk crazy? >> they're evaluating the data, so they have a forecast, they have an outlook. we have our outlook. i think where we have been with inflation really makes me not want to you know, move too soon thinking about the time 245 we are -- time when we are going to normalize. it's not about conduct rates it's really now how long do we stay in a restrictive stance and

perhaps have to go higher, given what happens in the economy. so that's where my thought process is eventually, as i said, and the speech you referenced, we'll get to that point. but that's just not part of the conversation right now >> loretta, you announced your retirement we'll come back and talk about that you're here until june it's been a pleasure interviewing you over the years. kelly, back to you >> we appreciate you bringing that interview to us steve liesman there. steve will be back tomorrow with the boston fed president susan collins. catch that around 10:45 a.m. eastern time my next guest has been critical of fed policy he says it's hurting their inflation fighting credibility let's talk to bill lee, chief

economist. good to see you. anything you want to react to from that interview? >> when i refer to unguided monetary policy, the one person who is truly guided is loretta mester i am in her fan club and he's the best fomc member we have right now, and it's a shame she's retiring >> is this just because you passed on hiring her all those years ago? >> thank you for reminding me of that yes, i was part of the interview team that interviewed her. we told her that you can have a much better career in supervisory stuff at a regional fed. she went to philadelphia, and then everyone recognized her brilliance and made her the president of the cleveland fed the unguided policy is serious that interview just gave everybody in the market exactly how to model the reaction function you have a dual mandate. when you ask how much are we going to see a recession, she

says we have to see how far we are from the mandate what's the gap what was the rise in unemployment how close are we being 2% with inflation? the trouble is, she's one voice on the fomc, and if chair powell had said that, you're going see the volatility in the bond markets completely come down >> explain that again, bill, what do you think is so significant about her remarks that she is somewhat less data dependant or the data she would emphasize is more balanced >> she showed you the importance of how she assesses the data every word out of her moth was, we've got to see where we are when we see what happens with the data is inflation back to target? no is it going at a pace we want to have she said i don't know yet, because we only have one very good data point. so essentially she's telling you how she's processing information. >> why would that bring bond

ma market volatility down if powell said that? i would think it would go up >> fed powell has said i am flexible on my feet and shift policy as needed professor mester said we will move policy when we are convinced things are changing. if inflation is significantly coming down, we will consider easing if unemployment rate is shifting up significantly, we will consider shifting. it's the words "significantly and convinced. >> when i hare you say, that i think they will be more likely to make policy mistakes. by the time the data showing up in the monthly data and by the time that shows significant, by the time they react, they will overly loosen early, or overly

tighten now which i would argue is what they're doing. >> that's the attitude that we have on wall street. unfortunately, the economy doesn't work in high frequency time it takes a while for the economy to shift look how long it's taken for consume ersz to feel the cutback in income and subsidies. why isn't that -- the housing has been so resistant. so people think things turn on a dime and the people at the fed and people like loretta have a better ter sense of how the ecy evolves. it is in quarterly time, not nano seconds >> that's a very good point. bill, thank you for your time today. still to come, both president biden and xi jinping sounding positive after their meeting yesterday. and president xi told american executives he want as partnership with the u.s

more from last night's ceo dinner coming up on "the exchange." dow is down 103. rylee! from rylee's realty! hi! this listing sounds incredible. let's check it out. says here it gets plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone.

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welcome back to "the exchange," everybody i'm tyler mathisen with your news update. the house ethics committee chairman plans to file a motion to expel congressman george santos on friday the move comes after the panel released a report that found substantial evidence of criminal behavior, including conspiracy, wire fraud and false statements. santos announced he won't be running for re-election. new yorkers will have their criminal records sealed if they complete their sentences and stay out of trouble. the governor today signed the clean slate law, which will seal records three years avenue completing a misdemeanor sentence and eight years after felony conviction. several other states, including new york, california, and michigan have passed similar legislation. spacex's starship is ready to take flight again the faa cleared the rocket to

take off friday morning, seven mons after the first test flight exploded the starship is the most powerful launch vehicle ever built and continue to the moon mission scheduled in 2025. kelly, back to you >> tyler, i'll see you soon. thank you very much. cnbc's newest documentary focuses on formula one, exploring how the league is growing in market value and looks at the sport's future, including the ambitious las vegas grand prix, which is set to race down the strip this weekend. here is a sneak peek ahead of tonight's premiere ♪ ♪ >> the cost cap, which limits what we can spend on building and developing their cars, has made their finances more predictable. >> before some investing in racing, they don't know if you would spend $200 million a year or $500 million a year >> reporter: financial stability

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from a company like humana just might be the answer. welcome back president biden saying he and chinese leader xi jinping made real progress during their meeting yesterday, while xi told american ceos over dinner that china is willing to be a partner and friend of the u.s. we're joined now from san francisco with more on what could be the start on falling tensions between the two countries. >> that's right. i was in the room for an extraordinary evening last night, as the leader of the chinese communist party told a room full of many of the wealthiest capitalists in the

world that china is ready to be a partner and friend of the united states. he drew a standing ovation from the ballroom full of top american executives. some of the biggest names in finance were there, including ceo larry fink and steven schwartzman who flanked xi jinping at the head table. also were tim cook of apple and albert borla of pfizer among a star studded cast of capitalists. xi jinping said the united states and china have a responsibility to lead the world. >> translator: the number one question for us is, are we adversaries or partners? if one sees the other side as a primary competitor, the most consequential challenge and will only lead to misinformed policymaking, misguided actions, and unwanted results >> kelly, one interesting note

elon musk was in the building and attending a vip reception before the event in the room where xi jinping was expected to be, but the tesla ceo left before the dinner began, so he was not seated with all the other ceos last night, kelly back to you. >> we also, as you said, elon musk no longer speaking, and many have noted john kerry's presence there what is his role >> kerry is the climate envoy for the administration, for the biden administration he negotiated with his chinese counterpart some climate goals basically that they agreed to, just before the biden and xi meeting. that was one of the announcements they had to tee this up. we also have an announcement from apec explaining elon musk's absence. they say elon musk had a schedule change that prevented him from joining the ceo summit 2023 we're thankful for his offer to join remotely, but we look

forward to elon joining us at a future ceo summit. no indication who canceled on whom necessarily here or whether any of this had anything to do with that controversial tweet that elon musk put out yesterday that many on twitter are callint all over the port. may have something to do with it we don't know. what about the president coming up >> a victory lap what was seen as a very successful summit. remember, the bar set intentionally very low the idea, would not agree to much of anything the main thing was these military-to-military talks that was a paintoint of agreeme. opening up, chairman of joint chiefs level and also the operational level. ship captains speaking to each other from the u.s. navy and chinese navy that's important for conflicting the china sea in particular on air and on sea

whether it is just a possibility of an accidental military conflict breaking out because both militaries are operating sometimes within feet of each other, and there have been tense moments over the past year that's seen as a successful win here restarting those military-to-military talks biden, you'll hear him emphasize that, that this summit was a success, in his view also still trying to remain critical of xi jinping as he did yesterday asked if jinping is a dictator, biden said, yeah. >> we'll bring the remarks when they begin thank you so much. eamon javers from san francisco. still ahead, 18% shortage in gap now. year-term options imply a move for applied materials and bjs hasn't missed bottom line, get this, once in the past 20 quarters we'll get the action and trade on owl threeins "earnings exchange" next. id this.

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next on tap bjs gap and names applied. concerned about increasing pressure on spending reporting a loss of market share after the bell today. you're cautiously optimistic >> i am, kelly retail, feels like a four-letter word you see, gap already down in the wake of walmart. interesting about gap, 61% off its 2021 high. from a forward pe perspective, traded 20 times above average. i'm cautious maybe a dip before earnings. this is a small market cap company. less than $5 billion think about that in proportion to other big retailers, volatility in the name be ready i think a trade. makes sense to own. >> what about bjs wholesale? down 4% as well today. only up about 2% for the year. interestingly. evercore recently put them on underperform lichte because of

slowing grocery and consumable demand saying it could lead to more cautious guidance the street watching how new credit cards are faring and membership renewals. after what we heard today from walmart, you do have to wonder if bjs could be next domino to fall >> yeah. people are getting out in front of that. right? seeing retailers, it's a bad word today again down before earnings which is fascinating to see. remember, this is also a very small market cap $9 billion compared to costco. nationally owned costco. i don't oh bj but i think you can own it as a trade. technically see pullback, $2, $3 lining up in the average you see bj, alluded to earlier, so many consecutive quarters a pop in the name. you have to be considerate looking longer-term exposure don't own bjs but great volatiles, small market cap.

$ 9 billion to $10 billion. >> $9 billion market cap for bjs. costco is $256 billion, for what a lot of consumers think is the same company very different. >> and maybe, bjs about 200 stores in 17 states. costco has 1,000, 600 in the united states and 300 out of the united states. lock step with retail wave we're enduring today. >> 55 seconds on the clock applied materials. shares trading levels not seen since january 2022 what did you do with the stock >> fascinating another 5% prediction in options market where is it going? artificial intelligence undercurrent look as the biggest customers, intel, taiwan semiconductor, an opportunity to move higher but expecting earnings to come in weaker year after year talk about this, trading half the pe ratio, amd, nvidia and intel. i want to be a buyer but have my

trading cap on today not long-term investor when talking this specific name 206r. >> 20 times. wipe they call you the killer. that does it for "the exchange." next on "power lunch," mentioned before, amazon announced it will allow dealers to sell cars starting withydah uni. tyler is getting ready see you on the other side of this break. do you consider climate risk? changing weather patterns are impacting the way we live and the value of businesses large and small. this can mean disruption to supply chains, changing demand for products and shifting regulation. what does this mean for your business, your clients, and your investments? ice offers data and markets that can provide critical insight. manage your climate risk with ice. at ameriprise financial, our advice is personalized, based on your goals, whatever they may be. all that planning has paid off.

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move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security. chip? at&t business. welcome to "power lunch" everybody alongside kelly evans i'm tyler mathisen the market pulling back. november rally taking a breather walmart dragging on the dow after its results. more on that coming up but november has still been a very, very good month for the market especially the nasdaq. kelly, up 9%. >> incredible run. awaiting president biden, speaking any moment now at