. good afternoon, everybody. welcome to "power lunch," alongside kelly evans, i'm tyler mathisen coming up, the end of the busiest and most important part of the year for retailers. we'll look at the numbers from black friday's weekend and start our series breaking down all the different parts of the retail sector today, which big box store is best positioned. plus, meta shares have been a rocketship this year, second best in the s&p 500.

trailing only nvidia we'll look at the stock and the company as a "wall street journal" article makes some unpleasant allegations but first, let's get a check on the markets which are close to session highs we were briefly green on the dow earlier. down 48 points right now the s&p is down 2. the nasdaq, it's up 25 and shares of amazon are higher as online black friday sales jumped and beat estimates according to adobe shares are on pace for their highest close in a year and a half speaking of amazon, its deal to buy i-robot is being questioned by european regulators the ec saying the deal could restrict competition for vacuum cleaners i-robot down 18% on that news. just under $34 a share >> and as shipping and inflation shopping and inflation are top of mind, shipping too, president biden is about to speak at the white house. he is expected to discuss ways to improve the supply chain and lower costs for consumers. let's bring in eamon javers now

for more what triggered this speech >> well, we're expecting to see president biden shortly for the first ever meeting of his newly created council on supply chain resilience biden is going to announce 30 new actions, the white house says are designed to strengthen american supply chains and tackle inflation that's the economic and the political imperative behind this new plan the biden administration says inflation is coming down quickly, but they want to do more, and they want the american public to see them doing more ahead of the president's re-election campaign next year to that end, the white house is using just about every element of the federal government to focus on supply chains, break down bottlenecks and bring down costs. as a part of that effort, biden plans to use the defense production act to make more essential medicines in the united states and mitigate drug shortages. he's going to beef up the government's ability to track supply chain data with new analytical capabilities at the departments of commerce and

transportation the department of energy is announcing $275 million in grant selections for the vestments in clean supply chains in communities affected by coal mine or power plant closures usda is making investments to strengthen domestic food supply chains and the department of defense is going to publish its first ever national defense industrial strategy. all of this is part of a broader white house communications strategy around inflation, which has been hurting the president's approval numbers we saw the white house tweeting about the lower cost of thanksgiving dinners last week the president's republican opponents have been hammering away at bidenomics saying it's the president's policies driving all the costs up that's the incentive to have this event today at the white house. >> to what extent is this an effort to distract, i guess, from the policies that the gop attack that they say have caused inflation, whether it's monetary policies on behalf of the federal reserve or the fiscal

expansionary policies that the biden administration has largely pushed is it a distraction, that's number one number two, it's easy to dismiss commissions and panels and so on and so forth, but i have to say, the two leaders of this, lael brainard and jake sullivan, are probably as high as it comes in the administration >> absolutely. you could say this is an effort to distract or simply provide better headlines out there on topics they want to have headlines on at the white house. the irony here is the attacks from republicans against bidenomics are the government itself is causing the problem, it's government regulation that's causing the problem and then the democratic approach here to solve that is to use government to solve the problem, so what we're seeing is all of these different federal agencies in their own ways being tasked with tracking supply chains in their areas, whether it's defense or agriculture or commerce, generally, and being able to then do things to break up some of these bottlenecks

the democrat approach is to use government to attack some of the bottlenecks. the republican approach is to get government out of the way. that's classic democratic versus republican thinking of the economy. we'll see that on display at the white house. >> no question but that our supply chain came under question over the past couple years and probably needs some attention. eamon javers, thanks very much we'll be awaiting those comments in the meantime, let's stick with the economy and the consumer despite facing those higher costs, black friday shoppers spending a record $9.8 billion in u.s. online sales this year will those strong numbers continue today, cyber monday, what used to be the myth logical maybe biggest day for online shopping courtney reagan has more how is it looking on what do we call it, black monday? >> cyber monday. it does look really busy here, and today is expected to be the biggest day in the united states for online shopping orders, and

adobe actually upped that forecast after seeing the strengths over the last four days now expecting consumers will spend between $12 and $12.4 billion today. these orders behind me at this walmart digital center are being filled within about an hour of being placed the fortnite figurines selling for $10 are already sold out they weren't $52 a gaming office chair, and shark robot vacuum also selling fast third party legitics provider which fulfills companies for children's place, signet, and others, say they are seeing similar strength online, as others >> we expect a similarly strong day. i think we were a little worried on wednesday and thursday, it looked a little soft so seeing the consumer really come out for black friday and the weekend gives us good hopes for today.

>> now, ship up also fulfill orders for other retailers including ulta, target, macy's,nemic marcus, and many others, and its cmo says cyber monday is starting off, quote, very strong. the third party logistics provider says black friday weekend sales were up 92% for the retailers that it fulfills for year over year here's a live look at shopify merchant sales around the world. global sales grew 22% around the world on black friday, a strength in clothing, personal care, and jewelry. things are looking good after a pretty strong weekend as well. back over to you guys. >> courtney, i guess things are looking pretty good. i mean, people have been questioning the consumer there's no reason to question him or her now, is there >> a lot of the data we got is strengthened both in store and

online today we're talking about online because it's cyber monday, but on black friday, sensormatic, which is sort of the main in person traffic tracker, showed that in-store traffic was up 4.6% retail next said it was up 2.1% by their measurements. yes, traffic doesn't always translate to sales but that was much stronger than expected. mastercard saw strength online and in store yes, inflation is an issue that we have been talking about, but i think it's important to point out adobe said for the retail products it tracks, its prices actually are down 6% in october from last october. so if you do adjust for inflation, it says sales actually are even stronger and that higher demand really factors in to that rather than higher prices. >> all right, thank you very much courtney reagan. now sticking with retail, difficult to lump the entire group into one, it's so slivered we're seeing an extremely complex time for the consumer. higher prices, changing trends

new ways to spend, each subsector of retail impacted differently. we'll break out each piece of that ecosystem to figure out what's working and what isn't. let's look at the big box names like target, walmart, and any others you want to lump into that category. bob is senior managing director of retail and an list at guggenheim securities. bob, welcome >> thanks for having me. >> which of these big boxes do you like the best in terms of a stock investment, not in terms necessarily of their business prospects right now? >> i think we have buy ratings on both walmart and target and walmart is just, they have had a tremendous run over the last few years and they continue to execute at a high level i think from the stock perspective, we'll probably favor target a little bit more right now. >> because it hasn't had the run. >> it hasn't had the run i think there's a lot more skepticism around the outlook for target there aren't as many sort of

great things to say about target, but from our perspective, i feel like it's really well managed business, they have seen a lot of ups and downs over the last few decades and they'll manage for this one as well. >> that's funny we're talking about this i mentioned i was at a target saturday morning, i just had to pick up a few things it was quiet and i said to the cashier, yesterday must have been busy, right? she said it was the quietest black friday she had worked there, and for periods of time, it was quote/unquote boring. that's not to say they couldn't be doing well online, or maybe it's just my store what do you think is going on there? >> i think a couple things it's a really long season. all the data that's out is very encouraging. we're off to a great start you have to participate in the early promotions and a lot of the action that's going on from our perspective, you have a lot of days left, a lot of weekends left. >> like the longest period between thanksgiving and christmas that we could have >> yes, and i think one of the things target has seen might be

the answer to that question is that target has seen more sort of buying closer to the need so like, the weekend would be good, but then maybe it's the third saturday before christmas, you know, you go a little further and closer to the period you know, there's no question the traffic trends have been challenged at target but from our perspective, i think you have to balance where the business prospects are and where the stock is >> has black friday lost its juice? >> i think what's happening is there's a much better balance of, you know, earlier, you start earlier in november, might have a few weeks of the promotions that go on and then you have sort of online versus stores. so black friday specials were available earlier in the week, like i think it's omni channel -- >> as long as you have the online option, there isn't that same sense of urgency, it would seem to me, to get in my car, fight the traffic, and go to a

store on that friday >> correct i totally agree with that. and i think sometimes if there's -- if you just have to have it that day, maybe that's the way to do it, or if you're not a big online shopper, you like going into the stores, there are people who still love shopping in stores >> i like going to stores, i really do. >> the same cashier told me in the mid to late afternoon, traffic picked up because people wanted to get out of the house, but it wasn't driven by the doorbusters. do we talk deflation one of the things as we look through the black friday number, it's up 1.1% in store, 2.5% overall. both are negative in real terms. is that because of heavy discounting or what do you think is going on? >> i do think deflation, let's separate it for a second on the food and consumable side, there's still inflation, but there's disinflation you're seeing increases in price but at a lower rate. the concern is deflation is right around the corner, that we're going to see lower prices maybe this quarter into '24, so

that piece of it is something where there's been a lot of pressure on the consumer the other side of it is that the deflation in the hard goods and sporting goods when you think about the other categories like that, the deflation that's present there, you know, that's also moderating a bit, but that's present and that's been the case, so i think the outlook would be something of deflation is probably a good thing for the consumer, and the more deflation that we see in the near term, we'll put more money back into the pockets of the consumers so they can have a better season and buy a little more. >> how about the beauty and cosmetics names we hear about? they seem to be an unstoppable force here >> it's interesting. the cfo from macy's talked about beauty is the new food right? like that was the quote, and i loved it >> you can go without food, but you can't go without mascara that's what i say every morning. >> that was his line to us when we were talking through the quarterly results and trends we have seen that in a lot of

retail, that you have seen it at kohl's at target, macy's some of these guys have had solid beauty trends. that's a category where when people are making decisions on what to buy, and the female shopper might sort of spend a little more on the beauty side of it. >> back to the point about whether black friday has lost some of its juice, remember a few years ago when a lot of stores, i believe macy's, some of the others as well, they were all open on thanksgiving day they were advertising, open at 6:00 a.m. thanksgiving morning come on out. >> that was the pushback >> we'll open at 6:00 p.m. >> bingo >> the that doesn't seem to happen as much >> some of the larger retailers have taken a stand i think mr. cornell has taken a hard stand to say we'll never be open again on thanksgiving and i think never is - >> never is a long time. until the next ceo comes in.

>> exactly, so when you think about it, over the years, i mean, there used to be stampedes, there used to be it was like - >> people getting hurt >> exactly now i think that's also e-commerce being inserted and the omnichannel strategy being developed. >> just a quick follow-up because this is a question that came up in my house. the question was did they stop doing thanksgiving day because consumers weren't showing up was it out of the kindness of their hearts or because it didn't make financial sense and wasn't necessary >> yes >> both, yes >> no, i think a lot of it, when you think back over the last few years, i mean, last year, was it last year, two years ago, when there was a concern because of the supply chain, that's a big topic right now, that there weren't going to be enough products or you had certain lists for your children that you had to get it early or you weren't going to get it at all, there's a lot of different factors that drove it. i think a lot of times retailers

have become much more conscious of workers as well and families. i think there were a lot of different factors in it, but i don't hear too many people complaining about not running out at 4:00 for a door buster deal on thanksgiving >> i don't hear many people complaining. bob, thanks. coming up, meta has been an outstanding stock this year, up 180% but it's not without critics we'll bring you the latest allegations that its algorithms show you what you want to see, whether it's appropriate or not. the impacts for teens and all the rest of it where. >> plus, we're still waiting to hear from president biden on plans to lower the cost for goods. "power lunch" will be right back my mom's life is the most important thing to me. hi mom! i called my mom, "i have this gene

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. welcome back meta put on the defensive in the wake of a "wall street journal" expose that revealed their algorithm delivered risque footage of kids and adult videos to adults who follow children. julia boorstin has more. julia. >> tyler, the "wall street journal" reporting that test accounts it created were searching risque footage of kids and sexual adult videos alongside ads for major brands they set up these test accounts to follow young gymnasts, cheerleaders and other teen and preteen influencers and were served up risque and inappropriate content mixed with ads for bumble, pizza hut, disney, and others meta responding the prevalence

of inappropriate content on instagram is low and they are invested in continuing to reduce it saying, quote, these results are based on a manufactured experience that does not represent what billions of people around the world see every single day when they use our products and services. saying we tested reels for nearly a year before releasing it widely, with a robust set of safety controls and measures in 2023, we actioned over 4 million reels per month across facebook and instagram globally for violating our policies so the question is whether this response from meta is enough for advertisers. bumble tells us it's suspending ads across meta platforms and match has halted reels advertising, while disney said the company has been working with meta to address this issue. so one fundamental challenge for meta of reels in particular, this relatively new format, is the fact reels promotes videos from sources that consumers don't follow tyler, kelly >> what does that mean, it promotes videos from sources

consumers don't follow give me an example >> the difference is in your news feed on instagram or on facebook, you're going to be mostly just seeing content from people you choose to follow. so i might follow some friends, some stores, some brands, some influencers. i'm going to see content in my news feed on instagram of people that i am opting into, but reels is sort of designed to be more a mix of things. more like tiktok, a lot of content for people you don't follow so the chances of getting inappropriate content might be higher if you're getting content that you're not already following. it's just a different type of format and much more similar to tiktok than the rest of meta's formats. >> is meta answering the "wall street journal" article by saying in part that they designed a test that was intended to make instagram and

reels fail >> yes, they said exactly that, tyler. but also, that they understand that this is -- that they need to constantly be vigilant. they mentioned the millions of inappropriate reels they have pulled down, but that it's not something they have gotten to zero just yet. they acknowledge that they had surfaced an issue, but they did say it was, quote, manufactured. i think manufactured is a key word there i think you have to wonder, though, what more could meta, and i would say probably all of these platforms, be doing to make sure that brands, because this is really an advertising driven business, brands do not have their content, their brand advertising alongside inappropriate content. that's a key piece of this we saw something similar arise with twitter, i'm sorry, the platform formerly known as twitter, x, more recently. >> thanks very much, julia appreciate it. now, despite those issues, meta stock has been hitting

highs. right now, just a couple dollars below the all-time high it hit on wednesday the stock has tripled in the past year, and in 2023, it's the best stock in the s&p 500 not named nvidia our next guest has ridden it all the way up what does he think of it now, jeremy, welcome. when do you hop off the bandwagon? >> no need to jump off completely, but you can slow it down a little bit. which is what we have been doing most of the year in the second half of the year, we started tailoring it back a little bit, frankly because at the end of last year, it was 12 times earnings last year, that was insane to be honest with you. now it's sitting closer to 20 times earnings so the numbers have come up pretty aggressively, over 76%, the smat for 2024 earnings this year but as a result of that, now it's also more expensive because the stock has done so much better what we have said is just take that back a little bit there's no issue with taking a little bit of profit and rebalancing that into other things that could be the next

meta for the next year rather than trying to rely on this to be continuing at the same pace >> are you trimming your position or getting out of it com completely and where do you think you can spot the next meta >> no, i mean, so we are not taking it out completely we own it, and we're going to continue to own it for a while, simply because they're doing the things that kind of change the story a little bit, right? they have become more cost rational, the metaverse isn't quite the quagmire it was before, with regard to the cap-x line in that regard, we can now take that out and having 200% return gives us the opportunity to take shots at things outside of the quote/unquote magnificent seven. the stuff that we're looking at is now the next discounted valuations, whether that's medical devices, these kinds of things that in certain elements of financials that, hey, could have a rebound potential and have a revaluation back to their

historical, maybe above their historical averages that create that next wave of performance. >> as an investor, does the "wall street journal" article that we just talked about with julia boorstin enter into your thinking at all? >> yes and in the way that i'm thinking about it is much more what will advertisers do if inappropriate content is next to their brands. that's something meta will have to address there's no question about it they have to insure that the advertisers -- i mean, the advertisers are the life blood of the business. if they're unhappy and if they're seeing things that are inappropriate for them, they're going to move to other sources meta is going to have to pay attention to this, but we are going to look at it much more from a business fundamental case and a fundamental point of view and seeing are they making the changes and adjustments they need to, to satisfy the advertisers. >> we appreciate your time

today. jeremy ryan. we appreciate it and coming up, capture but don't release. we'll take a look at one company utilizing the new imperfect technology to remove carbon dioxide from the atmosphere. that's today's clean start, and we're still awaiting president biden. we will be right back. ai has the power to automate, but if it's using untrusted data can you trust the results? your business doesn't just need ai, it needs the right ai for your business. introducing watsonx a platform designed to multiply output by tailoring ai to your needs. when you watsonx your business, you can train, tune and deploy ai, all with your trusted data. let's create the right ai for your business

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welcome back, everybody. time for a quick power check on the positive side, international paper, that stock is higher as you see there by almost 4% the cardboard box maker potentially getting a boost from strong online sales this weekend. on the negative side, albemarle down 5% as china's lithium prices sat around a 26-month low because of ever supply as we look at the dow, it's down about 50 points, taking a little bit of a breeather today. nasdaq is higher by .1%. as we finish out what has been by any standard a terrific month of november for equity investors. let's go out to president biden at the white house talking about supply chain changes

>> the president of the united states, joe biden. >> thank you very much, pete good to see you all. you know, we always talk about the big issues, the big things but sometimes the big things work or don't work based on whether or not the little things are in place the mechanics are in place secretary buttigieg, thank you for being here today, and help us launch this new council -- excuse me, council on supply chain resilience i grew up in a family like many of you where when grocery prices went up, price of a gallon of gas went up, it was a conversation at the kitchen table. i mean, literally, not figuratively those conversations have been

going on at kitchen tables all across america for a while now the conversation, a conversation about whether we would have enough left over at the end of the month for my dad to be able to, he used to say, have a little breathing room. well, this past week, as americans gathered around their own kitchen tables for thanksgiving dinner, that was our goal, to give them a little more breathing room, and together, we made progress you know, from turkey to air travel to tank of gas, cost went down it went down people make a lot of money, that doesn't matter a whole lot because the costs are relatively small compared to wealthy incomes. in fact, as a share of earnings this thanksgiving, dinner was the fourth cheapest ever on record i want you all to know that. i looked at all the press. [ applause ] . >> look, all kidding aside, that's not all

on thanksgiving two years ago, 100 container ships were waiting in a dock, to dock in the ports. they were lined up, 100 long out into the ocean this year, there were less than ten. meaning that today, as folks start their holiday shopping, shelves are stocked. meaning that if major appliances like a stove or a fridge broke down over thanksgiving, you can replace it faster and 9% cheaper than you did two years ago these savings matter to so many families especially at this time of the year and there are no accidents when it comes down to supply chains, did you ever think we would talk this much about supply chains? i'm surious. it's critical. everybody began to figure it out. the average person knows when we talk about supply chain. when the supply chains were disrupted we knew what trouble we had before the pandemic, supply chains weren't something most americans thought about. or talked about.

but today, after years of delay in parts and products, everyone knows why supply chains are so important. that's why within my first month in office, i signed an executive order bringing supply chains home, home, to get goods moving again, so they started here. we had the basic product here. less than a year later, i signed a bipartisan infrastructure law to make a generational investment in every part of our supply chain, from our roads to our bridges to our ports, our airports, to our internet. less than a year after that, i signed the inflation reduction act to grow the industries of the future right here at home, including electric vehicles and clean energy and the chips act, the chips and science act. how in god's name can you lead the worth when you don't lead the world in science and development? to make sure we never experience another shortage of semi-conductors. america invented these chips i know my staff is tired of hearing me say this. these chips the size of a

fingertip, they affect nearly everything in our lives from cell phones to automobiles and refrigerators. if you don't have them, you don't have those things. over time, we went down from producing 40% of the world's chips to just doing 10%. but not anymore. all over the country, semi-conductor companies are investing hundreds of billions, let me say it, hns of billions of dollars to bring chip production back home here to the united states. over the last three years, all of the leaders around this table, these two tables on my right and left, have also worked to lower costs for american families from cracking down on foreign owned ocean shipping companies that had raised their prices as much as 1,000% while racking up enormous profits teaming up with truckers to create registered apprenticeship programs, and move a record level of cargo around the country. to helping family farmers and family farms access fertilizer

they need to grow food so many of us in the majority of thanksgiving folks, the result today our supply chains are stronger than ever, with backlogs, bottlenecks and shipping rates at a 25-year low. we have created 14 million new jobs, including 800,000 manufacturing jobs the unemployment rate stays below 4%, below 4% for the longest period, the longest stretch in over 50 years and ways for working families have gone up while inflation has come down 65%. giving families a little more money in their pockets, a little more breathing room this holiday season but we know the prices are still too high for too many things. that times are still too tough for too many families. we made progress but we have more work to do. let me be clear, any corporation that's not brought their prices back down, even as inflation has

come down, even as supply chains have been rebuilt, it's time to stop the price gouging give the american consumer a break. look, that's why i'm tackling junk fees. these hidden charges that companies sneak into your bill to make you pay more money just because they can and you have no alternative. junk fees take real money out of the pockets of average americans. they can add up to hundreds of dollars weighing down family budgets and making it harder for a family to pay their bills. and they feel like they're being played for a sucker, which they are. over the past two years my administration has taken stepped to crack down on unfair and deceptive junk fees from banking, hotels, rental housing, cable networks, the internet, concerts, airlines, health care. for example, some banks and credit unions were charging as much as $30 for basic services like i want to check my balance, cost you $30

retrieving old bank records, cost you that much money looking at a balance on a loan, they charge you that money we took action the action we have taken, all that is now illegal. illegal. overdraft fees were also down nearly 50% which means savings of on average $150 for 33 million families across the country. credit companies, credit companies have been charging an average of $31 whenever you call and you -- whenever you can't pay your bill on time, whenever you're late. we're taking action to cut these fees as well, to no more than $8 penalty. but you know, maga republicans in congress are pushing back on our efforts to end these junk fees folks, these funds may not matter to the wealthy, but they matter to working folks in homes like the ones a lot of us grew up in. that's what this is all about. the american people. and today, we're coming together to ask a simple question, what's

next what can we do what must we do to keep making progress to keep our supply chains stable and secure in the long term. to keep preserving that breathing room for american families, for the season to come, no matter what challenge we face. and thanks to the folks who assembled here around this table, we're making progress on two key fronts. first, we're doubling down on our work at home starting right here, right now, with a launch of a new council on supply chain resilience i'm charging this group to insure that our supply chains remain secure, diversified, resi resilient, and into the future i'm also directing my cabinet to create an early warning system that uses data to spot supply chain risks to our economic security, our national security, our energy security, and our climate security i'm proud to announce that i'll be invoking what is known as

defense production act, to boost production of the central medicines in america by american workers because you notice we have people who had to get certain kinds of shots, not available, they had to get it overseas that supply chain is going to start here in america. we're going to help with american families have access to medicines they need. second, we're doubling down on our work with global partners. i signed the first of its kind supply chain agreement in the indo-pacific it's going to help us identify supply chain bottlenecks before they become the full scale disruptions we saw during the pandemic you all saw what happened then semi-conductor supply chains from asia to america shut down if this agreement had been in place back then, we would have been able to avoid that. and auto companies could not have had to lay off so many

workers because they couldn't get computer chips to build vehicles i also signed the first ever presidential memorandum on worker rights globally a move that's going to address forced labor, promote worker health, worker wages, worker unions as we build out our supply chains because we know our progress depends on our workers, including union workers. they, they keep our supply chains secure and our economies moving so we have to do more to empower them here at home and around the world. fortunately, we have been able to push back on republican maga republicans so far they haven't given up. they haven't given up. they still want to undo this progress we're making. they're proposing cuts in investments in roads, bridges, the internet, high-speed internet, the very things that provide -- anyway, across the board. and the cuts result in loss of

jobs and infrastructure and in manufacturing. and they want to go back to the bad old days when corporations looked around the world to find the cheapest labor they could find, to send the jobs overseas and then import the products back to the united states. now. we're pulling the products here and exporting products overseas. we're not importing jobs folks, we're not importing anything other than what we make we're making it here, and we're sending it overseas rather than going to the cheapest place we can go to have it made bottom line, they want to make the whole supply chain more vulnerable they're playing with offshore jobs, raised costs for seniors by repealing the insulin price reduction, caps on out of pocket drug expenses and the ability to negotiate lower drug prices i secured in the inflation reduction act. they're playing with cutting social security benefits i thought we agreed not to do this a couple times, but they're

back at it benefits, average benefit cut would be 13% for people, by 13%, those would be cut the plan would also cut medicare, while providing more tax giveaways to the wealthy and biggest corporations my predecessors once again, god love them, call for cuts that can rip away health insurance for tens of millions of americans on medicaid. they just don't give up. but guess what we won't let these things happen let me close with this you know, we face some pretty tough times in recent years. but in america, there's no surrender, no giving up, no stopping america never gives up i have long said, we're the only nation in the world that comes out of every crisis stronger than when we went into that crisis i truly believe 50 years from now, when historians are taking a look at this, looking back at this moment, when they look back

on the work we're doing to build the economy from the bottom up and middle out, to strengthen the american supply chains and manufacturing workers all across the country, they're going to say this was the beginning when america won the competition of the 21st century i have never been more optimistic about our nation's future we just have to remember who we are. you have heard me say it before, we're the united states of america, and there's nothing beyond our capacity when we do it together. so folks, got a lot of work ahead of us, i'm confident we can do it. we have done a lot already let's keep at it we're going to lower prices for the average americans all across this country thank you, thank you, thank you. >> that was president biden speaking about the supply chain and about the cost of living for americans. for more, let's turn to james from the american enterprise institute, as we look just, james, for some reaction and kind of context around the

president's comments why now do you think >> well, inflation remains, i mean, the economy broadly, but inflation specifically remains a huge concern for americans, a huge drag on the president's approval ratings i think any time where he can announce some sort of initiatives which seem to deal with that, because there's only so much he can really do, he's going to take that opportunity i think you saw in that speech sort of the inherent tension inside bidenomics which is a desire to sort of lower prices and have cheap goods and services, also you don't want to have a trade regimen like we had in the past, which is optimize low prices you want to have tariffs on certain things, you want to buy american, you want to reshore sd industries those things and low prices are in tension i think they don't get it or they're not going to acknowledge that

>> let's talk a little bit about his focus in the middle of the speech on what he called junk fees, and he said among other things that companies that haven't started to cut prices as inflation abates should do so. is it really up to the federal government to tell, for example, a cable company, a bank, what they can charge for an overdraft fee? >> it's certainly an ambitious conceptualization of the role of government, is to go through all of the many sectors of our $25 trillion economy and try to find places where you think these companies are behaving unfairly. and the fact that this is something the administration is attempting to do, i think it's a whisp of desperation because obviously, they can't control monetary policy, which is the main inflation fighter here, so what else can they do?

we can go after overdraft fees or credit card fees. but if they really want to do something big, again, they would think about their trade policy, which is not a trade policy that really cares a lot about low prices for consumers >> so how would you fix that trade policy what would you propose they do >> listen, there's a lot of areas. you still have effectively tariffs on european steel and aluminum there's these -- this thing called the jones act which i'm sure people have mentioned before on the show you have to use u.s. flags and sailors for domestic shipping. you have tariffs on baby food, tariffs on clothing. you could imagine a speech like this saying listen, inflation has come down, now we're going to go through u.s. trade policy and look for all the barriers, tariffs, and regulatory barriers which makes it expensive to

import goods and services to this country but that's not the core bidenomics which is really a continuation of president trump's protectionist policies which you see both in policies that have stayed the same, plus these additional buy american policies which have been part of the infrastructure act >> talk to me for a moment about those tariffs that the previous administration put on china. and the current administration has basically kept them in place. >> right >> good idea, not a good idea? >> well, president biden talked during -- listen, my opinion, you want to keep these tariffs very narrow on things that have something to do with national defense or maybe some sort of key components, also for medicines and things like that but the point, if i understand the biden trade policy, it's about jobs here at home, it's about reshoring production here at home, which is fine, but

there's going to be a trade-off, and that trade-off is going to be what things cost. that's just the way it is. and that speech sort of ignored that trade-off >> yeah, or there's incentives so to hide the cost, we'll give you an incentive anyway, we could go on james, thank you for joining us. we appreciate it and coming up on closing bell overtime, the gentleman you just saw introducing the president, transportation secretary pete buttigieg with more on the administration's efforts to improve the supply chains and lower costs >> we'll get into all of this again i'm sure ahead on "power lunch," buy now, pay later. it's paying off. new data shows the use on black friday climbed 47% year on year, sending shares of affirm up 9% today. we'll trade that and a few others in three-stock lunch.

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welcome back to "power lunch. bond yields are falling after the holiday weekend and the 5-year let's get to rick santelli in chicago. >> it started out with weak housing for october, a downward revision to september on new home sales, and that was just the beginning. look at the interday of 2-year note yields. low yields across the curve as we speak the 2-day, look how much lower than the previous sesmts we are trading. the same for the 5-year. $109 billion cumulative auctioned off between 2s and 5s looking at the intraday and 2-day. this notion of trading below previous days ehlos is energizing the market on the buy side, pushing yields even lower. looking at the 10s are in grand scheme of things, we're hovering near two-month lows. and when we consider that tomorrow will be the last of the $39 billion for $148 billion in

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back, everybody time for "three stock lunch. we look at movers of the day affirm shares up 9% after data show consumers are embracing buy now, pay later, so far this holiday season here with the trades is the chief investment officer at landsberg bennett private wealth management your take on affirm. >> i'd be running. this is the lowest part of the credit spectrum. buy now, pay later is increasing while credit situations are deteriorating. it's down 85% in the last two months hopefully nobody owned it this long, but if i didn't, i'd sell it or probably short it at this point. >> it's too much trouble for you. >> i look at it, revenues increase every year for this

company and never made a nickel. two presidential elections from now, it may be profitable. it seems like a long time for strategy to play out >> you'd short it. let's see what you do with kraft heinz. a $3 billion share buyback sizable for this kind of environment. what do you make of this >> the issue with kraft is volumes have been declining, mid-single digits, but it's been an anemic grower for the last five to seven years. just not a lot going on here i think this with the peptides from the ozempic folks, that's a problem because we all know ketchup and condiments are not healthy. they're chock-full of sugar. there are better opportunities the dividend is high, but cash is high. i don't have the headache of owning i'd rather have cash than kraft. >> you see these weight loss drugs as a real threat to some

of the food company anies and xa grocery companies. >> certainly i look at behavior these things dominate, whether it's cardio or kidney. some of these foods that are typically unhealthy, people may look and say do i need to eat that as much is this a good thing for me? that's a problem >> yeah. ketchup on fries is still pretty good i have to say. >> spectacular i don't know what to do. >> let's move to pinterest on the move after new street research niche year to dates a buy on the stock, seeing an upside of more than 50%, even though the stock is already up 30% year to date what about pinterest >> we like pinterest here. adding obviously e-commerce to make it attractive, third-party advertising, that's a smart move anytime you can partner with sammon, that's a good move amazon seems to be the driver here i think we'll see some expansion over the next couple quarters. i'd caution getting too optimistic

meta said we may see slowdown in advertising, but i think this is a good move for pinterest. they are a high single-digit kind of grower they earn money. in a tech space, you have companies earning money and their earnings are growing, so maybe an opportunity here and a pullback to look at the stock for the next one, two, three years. it's a good story. >> any thoughts on the consumer as we get our data points from the kickoff of the holiday spending season? >> i think the consumer is in rough shape, kelly not to say they won't spend a lot of money over the holidays, but a trillion dollars now in debt, i think people are having more problems making, you know, ends meet. affirm says they can't get the money from credit cards, you'll go to a subprime environment to get the money. that's a problem and ultimately what we'll see the low-end consumer is tapped out. people are having problems making ends meet doesn't mean they won't spend for christmas, but january,

february, march, a slowdown in the retail space, a lot of places i'd avoid >> like affirm and many others michael, thank you >> and heinz hold the ketchup >> we appreciate it. >> michael, thank you very much. did you shop this weekend? >> technically yes i was at a target. what about you >> i did watching a lot of football games too. >> "closing bell" starts right now. >> welcome to "closing bell. i'm scott wapner from post 9 at the new york stock exchange. we begin with the final stretch to a great month for stocks, the best in a couple of year, in fact the big question now, how long can it last? we'll ask our guests this hour your scorecard with 60 minutes to go looks like this. not too many sectors in the green today. we have a few. consumer discretionary looks good after the strong kickoff to the holiday shopping season. amazon is a standout, no big surprise on this