hi, everyone. good friday afternoon. welcomto "power lunch," alongside kelly evans, i'm tyler mathisen. coming up, pfizer's effort to join the weight lo parade faces a jor setback. patien quittinthe trial after experienng unpleasant si effects. we'll have the reaction the. the retail ecosystem wita lo on at luxury stocks. yestery we talked about the struggling dollastore, so is the high-end consumer still buying or spending that money elsewhere, on experiences instead of stuff? >>first, let's get a check on the markets. wetart decber th green arrows e dow hitting a w 52-wk high tod. just a couple hundred points from itsll-time high. speaking of all-timeighs, check out gocracking above

$2,000 an ounce, and powering higher still. today we hrd frofed chair powell saying talk of te cuts is premature, leavg open the door to more hikes, but generally signaling that the fed may be done. is this the setup for the rally to continue in december? let's bring in bob pisani. >> y know, after an extraordinary november, think about this, up nearly 9%, e setup for december and early 2024 is exceptionay strong. so here is the setup. first, december is the third best month of the year, but what's different about this particular december is that it's a pre-election year and december pre-election years are stronger than other decembe, up 2.9% on average. that's twice a typical december. the first part of the month tends to be the weakest and the second half of the month is where most of the gains will typically occur. it's not just the seasonals, the macro backdrop is strong. look what's going on. interest rates have been

dropping, inflation continues to moderate, the gdp growth numbers were solid, unemplment is still low. folks, we call that goldilocks. no wonder wall street is so bullish. almost every wall street strategist this week i expecting higher stock prices in 2024, many are expecting the s&p to end 2024 at 5,000 or above. what we really need now is new information. remember, folks, that's the way the market works. the hypothesis, goldilocks is already priced in. we need more. it's been very heartening, kelly, to hear positive comments the last twoays from both salesforce and from ulta, both of whom had ry good guidance. that's exactly what we need. we need more of that kind of new information. for the moment, kelly, let's just enjoy the positive backdrop. it doesn't get much better. i want to show you the s&p 500. powell said premature when policy might ease. he didn't push back and say,

forget it, there's no chance, you people are daydreaming. he didn't push back on that and that's partly why the market has been rallying. he's got to be really insistent and he didn't do that. >> i would be curious your take on the kind of inherent contradiction, usually when the fed is done it's because the business cycle is over. how long can stocks stay positive in that situation? >> yeah, the problem is the market is anticipating right now that we're going to have some kind of extended business cycle and a lot of people are saying this is the way the market acts when things are right in the middle or coming out, and it's not. we're pretty long in the tooth right now. i mean, good heavens, it wouldn't be surprising to see some kind of slowdown. what i'm concerned about is the valuations are very high. we're at 19 times forward earnings. any time the historic average is 17, when you get 19 to 20, it's very hard for the market to stay

up for that long, because that's a lot to pay for a future stream of earnings. usually either the market comes down or the earnings start going up. right now the bulls are really anticipating that the earnings numbers are going to go up. but we're already anticipating 10% growth. it's already priced into the market. we better have a heck of a good year or the market is going to stall out sometime in the next few months. >> all right, bob, thank you. we appreciate it. bob pisani. let's talk more about whether the rally is going to continue. our next guest says, yes, but there are a few things that need to happen for the rally to persevere. let's bring in cnbc contributor, managing partner with dcla. good to have you with us. >> thank you. >> you're basically in the pa camp that given we get positive data points throughout the month of december, it's good sailing from here until the end of the year.

>> what's interesting is the market started rallying when the data came in positively, when inflation was coming down, earnings were going up. historically the markets have discounted that before and we would be sitting there and the markets were going up and rates were going up. this time, it was reactive to what's going on. so i think the market needs to be fed continually positive information, which means rates can't go up from here. which also means if rates go down, it has to be for the right reason. if powell had said rates are going to go down because we see a slowdown, you might have seen a different reaction because it's sell now, buy later, because we don't know what's really slowing down. the consumer, we know, is holding up, even though it is slowing. you're seeing that in some of the data for some of the retail stocks. that's 60% of our economy. valuation is going to be really important and rates are going to be really important, employment is going to be really important, and also we're talking about a static world and we know that's not going to happen. if something happens

geopolitically in the next day, few weeks -- we were in a period of time where every friday the market sold off because we didn't know. now that's been discounted. there's a lot of good information th's been discnted in the marketbut we have to be careful because you do get data points. >> do you think the fed is almost most of the way to threading this needle, this soft landing? or are you skeptical? >> i'm little skeptical because they were late to the party to begin. >> there's still a lot of tightening to move throu the system, right? >>xactly. weaven't seen the full effect. we know that inflation is ther we're discounting that inflation isoming back to a low number. it's goi to be hard to see when wages and rts are up this high, supply chains are duplicate. i think there's a fine line as to how much it's going to slow down or we're going to have flation in the system. >> you want sort of that beautiful tcome where the

inflation rate falls but the maybe it will happen this time. look at the ism number this morning. it's been awful. this is the longest ism losing streak. >> below 50 again. >> the 15th raight month, and it got worse and it feels like i can understand those who say, manufacturing was just in a post-pandemic reset and it's going to be different this time. maybe, but this is not favorable historicals. >> i think the key is when you own stocks, know what you own and just be very careful of valuation. because is it sustainable? if you're looking for the fed to cut, is going to be for the right reasons. >> no, that's the trilon dollar question. >> the sexy stocks like nvidia, are they going to hold up? >> so that's something we talk about with our clients all the time. >> people ask me. maybe 20 years ago, cmgi, there

were these stocks that didn't do anything or make anything or make any money, certainly, but nvidia makes money. >> 20 years ago kcisco made a lt of money. nvidia is a great company. we own it, it's one of our largest positions. but it needs to grow 30% a year to sustain its valuation and that means no competition coming in. that means people are going to pay the same prices at the same margins and demand is going to increase and no competition comes in. you can own it, you just have to be careful of the size. sizing is important. >> the size of your holdings within your portfolio. >> because it's a very volatile stock. if you look back historically, a couple of years when nvidia has missed out, the stock doesn't crack 5% to 10%. it's 20% to 30%. you need to be prepared. it can do that on the upside. that's pretty much baked in. we're expecting 20% to 30% earnings growth and that is basically, kelly, to your point,

the economy needs to be where it is. if some of their largest customers like the microsofts or amazons say we're slowing down because demand is slowing down, that's going to have a halt. >> there's probably no more visible stock that i can think of right now than nvidia, or apple, i suppose, is equally sible. >> microftith ai. >> these are all visible stocks. is there an invisible stock that you own that you think has higher than sort of market average prospects? >> so the way i look at it is to say what are the areas being kind of a value biased investor, the areas that have been totally out of favor. who is not looking at commodities at this point? we talk about copper companies where you haven't had a factory built in ten years. i'm not going to say that's going to be the next nvidia, but you want to look at a company like that, cleveland cliffs, the steel industry. not because they're focused on commercial, they're focused on other things. that's just one sector.

look at health care, look at a company like thermo fisher, tmo. these three companies we own, full disclosure. thermo fisher, one of the best companies, they make all the products that go into the health care companies, the beakers, et cetera. they called for flat earnings for the next year, but after that trajectory is going to go up. fabulous management team. it's a stock we want to hold for many years. now is the opportunity to buy it again. look at the fallen angels, can add to your portfolio when some of the others have done very well. >> thank you very much. we're going to have the pleasure of your company for the rest of the hour. we'll bring you in and you get to play in our sandbox. >> i look forward to it. the weight loss market, and now pfizer attempted entry into the market suffering a setback. anla brings the story. >> pfizer today announcing that it will not advance it's experimental twice a day weight

loss pill into phase three trials because it had su a pfizer says the drug met its goal of delivering weight loss of up to 13%, more than 70% of participants reported nausea, arly half experienced vomiting, and a quarter of participants experienced diarrhea. that led to about 50% of the people on the drug dropping out of the study early, versus just 40on the placebo. and pfizer decided those results mean the drug in its current form won't be competitive ainst some of the other treatments already out there or in the pipeline. pfer does have a reformulated once a day pill, but we're not supposed to get data until the first lf of next year. instors not liking today's news with shares of pfizer off about 5%. >> pretty big problem for them, angelica. actually, was surprised that 40% of peoe on the placebo dropped out as wel at a timwhen we're lrning re and more about the efficacy of the leading candidates, what

does pfizer do now? >> really quick with the pcebo arm, that is really interesting and i saw an alyst note sang people are maybe looking at the other approved drugs, they're not sing weight on placebo, so let's drop out. want to hear more fromfizer o on. pfizer does have the oe a day formulation they are working on, so there going to ntinue studying that and they should have results next year. this is certainly a setback for em. >> we wanted to ask you about europe's drug regulator looking for new data froeli. >> they've been looking into reports of suicidal regulation in peopltaking it for weight something that we haven't heard a whole lot about. they've been looking at this since the summer today saying they're asking for more data from the companies.

we reached out to node and it's something we're going to stay on top of as they continue this pursuit. >> thank you very much. we appreciate it. coming up, tesla delivering it's first cybertrucks and doing a test-fire at the windows. this time ey didn't break. we will talk tesla and all the auto ns of the d next on "power lunch." that cybertruck, look at that guy. he has a really coolas ftball. he really can't throw. bringinu an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly.

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welcome back to "power lunch." three big stories impacting the auto world today. we're going behind the wheel for a power rundown with phil lebeau, here to break it down. we'll start with the biden administration proposing new rules for ev battery supply chains to qualify for tax breaks. file this under the wonky but important, phil. >> it is important, because starting january 1st, we start to see the ability for auto companies, when they're selling vehicles through their dealers, or if it's direct, people will be able to take those tax credits, breaks, immediately at the dealership, as opposed to putting it on their tax form at the end of the year, which is how you currently do it. there's going to be greater focus on these tax credits, and because more vehicles are being manufactured and batteries are being manufactured, some of the rules they're going to be putting into place, they're not

putting the proposals out there. you're going to gradually see the percentages increase both in terms of components, as well as critical minerals. i think we've got an explanation for how much is expected in 2024 when the vehicles are being manufactured, and the first is 60% for components, and then for the critical minerals, u.s. or free trade partners, 50%. you guys understand what the bottom line is here. the biden administration desperately wants to make sure the evs are built, and we move the supply chain away from china, which is where most of the supply chain has been based over the last several years. >> let's talk auto sales, phil. the sales for november rising for the key foreign automakers. honda leading the charge, interestingly, all this despite high interest rates for auto loans. pricing, as most people know, still elevated. what is driving this momentum in the face, by the way, of auto strikes at the residuals of which are ill at play? >> yeah, think the bottom line

is this, tyler, you still see strong demand out there, low unemployment, and i wouldn't say pent-up demand, but there's still a loof really old vehicles that are being driven by people. the average average is over 12 years here in the u.s. right now. that's the average age othe vehicle that is out on the road. i ow a number of people who at some point you make the decision i've got to buy something new. increasingly, when people are coming in, yeah, there's some interest in evs. you know what they really want? hybrids. red hot, and that's why you see strong numbers from the asian automakers who have traditionally been the lders when it comes toybrid vehicles. >> what's interesting, also, is when you look at what gm said a couple days ago, as soon as they agreed with the unionsthey bought back $10 billion, and they've probably seen something as well. it's not just the hybrids, but

the trucks, suvs. >> absolutely. the is no argument, and nobody will give you an argument th gm and ford are killing it when it comes to internal combustion gine vehicles, suvs and pickup trucks. absolutely killing it. the profits they're mang on those vehicles. ve seen a lot of people say, shldn't they have done something else inste of buying back shares? part of the job of the board is to make sure when you've got a if you think the stock is doing undervalued? they did the accelerated stock repurchase, that meant taking basically 17% of the gm shares off the street. maybe not that day, but it will happen very ickly here. and i think the ard sat there and said we're so undervalued and people are not giving us credit for what we have, let's put the cash to use. >> and the oil prices coming down a the consumer is ung their car a lot more than when oil was over $10 you have a tailwind behind the

auto stocks. gm trades at five times earnings. >> who is the hybrid leader? i get the idea that hybrids are a sweet spot because they solve part of the way is environmental issues that come with internal combustion engines, they get very good mileage, many of them, close to 50, some above, and they have a range that the electric vehicles cannot beat on one tank of gas. so who is leading the way here, and why haven't the american companies -- >> well, that's not true. ford is one of the leading hybrid players and parts part of the pivot jim farley is making. ford has been a big player in hybrids and plans to do even more. in terms of who has traditionally led, look at who brought us the prius, toyota. one point of reference, i was talking with a dealer about the new camry, 60 miles a gallon. 60 miles a gallon for the camry

hybrid. who wouldn't be interested in that? if you're interested in a sedan, and i know there are a lot of people who don't want a sedan, they want an suv or a crossover. that's a heck of a selling point. >> 60 miles a gallon. >> i'm thinking about it. >> you don't have to go to the gas station very often. >> no. let's talk cybertruck before we get you go. cautious commentary around the price tag, and maybe the range. what did elon musk say at the big event last night and how important the halo effect the brand might get even if sales e not huge from the gate? >> i think the halo effect is huge and the cybertruck does exactly what you want for a halo vehicle. we heard this a lot in the auto industry. realistically you don't see too many true halo vehicles, the idea being the shine off of that vehiclmakes people say, wow, i've got to check out what's going on with that vehicle, and by extension, other vehicles by a particular automaker. and that's what the cybertruck does. look, anybody who has seen it in

person says the same thing, which is, it's so unusual, so polarizing, i've got to check it out. and i don't know if you've noticed, guys, go online and check out the pictures of people going into the tesla galleries. long lines of people. now, are all those people going to buy a cybertruck? probably not. i think a lot of people who have reservations are not going to buy it. i heard somebody say yesterday i'm not going to follow through on the prices they're offering, but they're interested in teslas, and that's the true value of a halo vehicle. >> indeed. no matter what happens with the bo baseball and through the window and the bullets and all the rest of it. they should bring to a shting range. phil, ank you. we areciate it. let's check out sharesf ta beauty surging, o of the best stocks in the s&p, maybe the best on rong earnings, on best fortsest day since

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that line of thinking. how is the bond market reacting to powell's comments? let's find out from rick santelli in chicago. >> tyler, he did try to pour a little water on it, but i think most investors thought only a couple of drops, and it was over in a few minutes. let's get back to buying stocks and buying treasurys, because we're looking at obviously we finished a historic month, but a historic week as well. two-year note yields currently at $455, down 44 basis points on the week. there's a bit of a rollover effect. still, that is huge. and 10s down 26 basis points. was it higher prices paid? you know what i think? it's that the fed is done and this is catching on fire, the higher stocks go, the more we see treasurys being bought. and technicals, don' underestimate it. if you look at ten-year tes, we had that neckline we've

talked about with the head and shoulders. you see the pattern. i always like when there's a kiss back. that kiss back was perfect in the way it worked. and in terms of objectives, if you measure from the neckline down and then take it down again, right around $411, the closing level for the last day of august, if it measured out perfect, that's where it shod go as long as you get a solid close, and that really looks assured at the moment. remember, there's no real auctions of coupons next week, anything beyond a two-year, that's the week after when we have threes, tens and 30s. for the moment, it certainly looks like everything is green in pretty much all markets. >> the everything rally they're calling it. thank you very much. let's get to bertha coombs for a cnbc news update. >> hey, kelly. white house spokesman john kirby place today blame squarely on

hamas this afternoon for the collapse of the temporary truce with israel. he said hamas failed to produce a list of hostages that would have enabled the pause to be extended. he also corrected a previous tally of american hostages that have been released so far, down from six to four. the death toll from a massive landslide in alaska has reached five, after authorities recovered the body of one of the two people declared missing. a 12-year-old boy still has not been found. the landslide was brought on by a strong storm last week. alaskan officials say it was 450 feet wide. and spacex launched a rocket today carrying south korea's first spy satellite. it's the first of five spy satellites on musk's company's list that they're sending to space under a contract with the country. it comes after north korea claimed to send its own spy satellite into orbit for the

first time last month. quita ek f elon musk this week, kelly. >> as ever. thank you very much. bertha coombs. coming up, in the lap of luxury. the final installment of our econ ecosystem. should expectations main low for hi-pceghrid items this holiday? we'll discuss when "power lunch" returns. meet gold bond daily healing. a powerhouse lotion that moisturizes, heals, and smooths dry skin. with 7 moisturizers & 3 vitamins. and... new gold bond healing sensitive. clinically shown to heal & moisturize dry, sensitive skin. gold bond.

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welcome back. it's time for the final installment of our econ ecosystem series. yesterday we take a look at discount retailers. today we're going to the other side, luxury side of things. since the pandemic, consumers spent on luxury goods at record numbers, but that may not be the case with some luxury retails beginning to feel a little pain as sales slow and financial conditions tighten. here to discuss, ceo and chief research officer. is this what you're seeing, the high-end customer is pulling back just a little?

>> it's been a moderation of spending across all income levels, even high-end consumers. where there's volatility in the stock market, the macro issues, it's all over. you still don't have the chinese coming out and traveling to spend. visas are beginning to increase, but we need more of that. the american consumer under pressure and that feel-good factor needs to be there, at the uber high end, you are seeing double digit growth. >> so the domestic markets alone are not strong enough to support these luxury brands, what you really need are chinese tourists coming in to venice or new york or san francisco or london? >> you need that, also. but keep in mind, these luxury goods numbers are still much higher than 2019. you're talking about sales that are 50% greater than 2019, but the year-on-year increases are now beginning to moderate, from when you were up 40% plus in

2020, 2021, then in the 20s and 11%, now next year is looking like a 7% figure. >> i don't take you as a guy who is doing a lot of luxury stocks, but they have en stalwart performers in years past. does the weakness tell you anything more macro that you can take away from it? >> i think the interesting part, and i would love to get your take on estee lauder. it still trades at 40 times earnings. but even after, it's down double digits, plus more. so where does an investor -- how do you think about that? because is this the point you get in and earnings catch up, are earnings n non cyclical? how do you look at that? >> i think estee lauder is unique, where it was so ed to china. china slowed down, now a lot of the chinese are buying higher end goods than just cosmetics and they need newness d innovation. you think about the others like

lvmh, only up mid single digits this year, that's an opportunity beuse of the wide berth they have, whetheit's in hospitality, fashion and leather goods, or whether it's in sephora and retail. >> you want to be in a retail company that is le to be there, because as more people are aveling, they're going to concerts, they're going to all different things. you've gothe hybrid workforce. >> and experiences create memories. everyone is looking for that memory after you didn't have it during the pandemic. look at what rh has done with restaurants. people are remembering when they go to that restaurant and have that experience. something different in terms of tommy bahama, you remember that experience. so i think capturing, whether it's lvmh with hotels, whether it is an rh with restaurants, it creates the difference. >> that's something we were going to ask you about as well,

how do you capitalize from an investment point of view, whether it's flying around the world, seeing the taylor swift concert, the beyonce movie comes out today. what do you think the obvious plays are? >> i think on the travel side, you want to own global airlines, so like delta, because those flights going globally are just full. the beauty about delta is it's not focused on asia, kind of like united. you have south america, you have europe in there as well. and then the other way to play it is also cars. people are driving, they're going to more places. so that whole sector during covid was just crushed. so you kind of do that. then you look at restaurants and hotels. the hotel companies, the marriotts of the world, people are now using points, they're combining them with credit cards. american express, one of our biggest holdings. the millennials are all focused on experience, and they're using the platinum card and using these cards to say i want the

best experience and i'll pay for it. because if i don't go on my trip, who am i going to call? so if you look at that stock, it's only 15 times earnings. so that's a company, and they dot have any creissues either. >> what are these millennials buying, apart from experiences of the movie or whatever?but what are they buying, and from whom? >> you look at the product innovation and there's a lot. look at deckers, look at on running. >> is deckers uggs? >> yes, and toka is on its way to being a $2 billion brand. >> you would have never known it three years ago. >> now it's very popular. >> and uggs are back. my son bought a pair yesterday for his birthday. >> i think kelly has a couple. >> she changed out of them. >> it's amazing, in contrast, think the are some companies who can't quite make it to that next level.

so those are exales where you think the goods are still attractive. >> and then you think about other new items out there that's gaining traction. you take a look, for example, at everything that we're seeing out of -- i mean, tapestry at coach, they're continuing to see sales increases, you see abercrombie. neiman marcus talked about the slowdown they've been seeing where they're having to do collaborations and pop-ups to encourage their customer to come in and buy something you won't find anywhere else. >> that makes the retail experience more of a literal experience. >> what do you do during the day? do you go shopping? >> i do that on the weekends. during the day i'm in meetings. >> you're in meetings and crunching numbers and reading reports? >> but i do these shopping tours all around the country during the holiday season because i

n't believe you can sit in the office and know what's happening. >> where are you gng this weekend? >> this weekend i'll be in new jersey and in manhattan. >> really? >> yes. cool. >> want to join? >> you know, we should talk. >> we can grade the retailers. >> all right, dana, thank you very much. we appreciate it. still to come, the cop28 climate conference has begun. corporations, banks and investors of all sizes hoping to cash in on the transition to clean energy. we'll tell you where the money is still flowing when "power lunch" returns.

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♪ be ready for any market with a liquid etf. get in and out with dia. welcome back. tackling climate change has proven to be a multi-trillion task and all sorts of corporations and investors want to be part of that solution and make some money in the process. diana is here with a look at cop28. >> that's right, representatives from nearl200 governments are trying to ramp up their response

to climate change, which mosy means inhe form of money. that's w representatives from corporations, big banks, investment funds are there, too, trying to get in on th cash. opportunities in the clean energy transition, infrastrture, climate tech and resilience. i spoke with the executive director of bill gates' breakthrough energy in dubai now about that. >> it's an opportunity to connect mpanies with finance paners and industry partners and we're looking to make deals to accelerate clean energy into the marketplace. >> just this morning, investment of over a quarter billion with the european investment bank for the first two european projects. one is funding danish energy company to provide gre fuel for the shipping industry. >> that's what we're hoping for, is that it will be a real opportunity for the private sector to take a step forward

together towards addressing this incredibly challenging, but important pic. >> also this morning, the cop leader, the uae, launched a new $30 billion climate focused investment vehicle which will be the world's largest private investment fund for climate. it aims to mobilize $250 billion globally b2030. kelly, just a note, i will be in dubai on monday to kick off live coverage. we'll have breaking news of the day and lots of ceo interviews. >> it's interesting, i think some would find it ironic, some critical of the idea that a p petro state would be hosting cop. >> critical to say the least. that has been going on for the last several months with a lot of people speaking up against it. it is being held by the uae, one of the largest oil producing nations and the head of it is one of the largest petroleum

companies there and he has been adamant that he is looking at clean energy transition. there's been criticism, reports he's been making side deals on the side. he says that is not the case and he's all about the clean energy transition. no question, it has been controversia >> we look forward to your repoing next week from over in that part of the world. thank you. meantime, bitcoin inching back up toward $40,000 after a strong november, posting a 9% gain last month. can it hit 40k by rimachsts? we'll ask a trader after a quick break.

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time for today's three-stock lunch. first up is ulta, the stock gained about 12% earlier in the session after the beauty products retailer reported third-quarter earnings have beat analysts expectations. the stock is up year-to-date 1%. here with trades, from bks, and cnbc contributor. your thoughts on ulta, next to nvidia gets as much talk as any stock on cnbc, it seems. >> well, because it's a great company. very, very unique retail product in a sense that it acts as a

supermarket for beauty products, which is attractive to female consumers, and it has a salon business and intensified the relationship with the consumer and it has a great online store business so it creates habitual sales. it's hard to beat that model. the main risk to this business in my opinion is actually macro, not micro. it's basically a question of whether the labor markets remain buoyant and the female consumer has disposable income. i think three to five years down the road it's going to be a strong winner. >> so boris says buy. what say you? >> i think one of the things to watch for there, we've owned the stock in the past, is when things slow down, the ulta, the beta is much larger than the market. and given we're going into christmas and the consumer is slowing down, you're right, if employment stays where it is and wages don't come down, i think it will be a great stock. i would be a little scared here because you've already got the run, some short covering in here. i think the opportunity is when

it pulls back. >> i agree. >> go ahead, boris. >> i agree, you've got to basically stach it. ng term it will be a great buy. >> paramount shares are on the rise up 9%. boris, do you like it? >> no. that one has been a disaster from every angle you can look at. >> it the cable business is dying. because the only thing people are willing to pay for on line is sports and news and they don't have that, direct to consumer business is a bleep, they're not a second best. they're an after-thought for most people as far as the product goes but not a short, not a short because it has a very storied asset library and clearly it is worth more than its part, or the parts are worth more than the whole. it is a question of whether the management is willing to give up control. if a white knight comes in, it is definitely going to be worth quite a lot more money. so if you're a punter, yes, it

could be a great trade. it idefinitely, i think, not as an investment at this point. >> i completely agree with you. i think this is adeable at this point. what's going to happen, in our view, very similar to what boris is saying is basically a consolidation and with pricing, consolidation. u're not playing like you were two years ago. back then, streaming, disney was doing this, peacock was ing this, it is actually a negative value even though the parent compy of comcast, peacock is losing billionof dollars every year. so i think you either get a strategic investor in here, that can kind of, like, it uld be an apple, it could be disney, it could be, you know, somebody there, it could be combining with a peacock, who knows, you know and kind of spin these off, but it is all about cash flows, and the market is not -- great cash flows, but they're not getting any value because the question is, it is a depleting asset over time because it doesn't have live entertainment, it doesn't have something like

that. >> go ahea boris. i see you nodding. >> i totally agree. everything he is sayinis absolutely correct. it is great part of something. terrible as a stand alone business. >> let'salk bitcoin, shall we? 39,000, the latest inflaonary commentary, it leads to more be that te hes are over. boris, your ke on bitcoin, the asset that the late charlie munger loved to hate. >> the cat has nine lives. i mean you can look at the history, yes, every wave down has been followed by a wave up. although the last wave s so much wealth destruction, i think the appetite has muted at th point. i think two reasons bitcoin will do well. one of them is ironic. when it becomes de-ditized. it is when bitcoin becomes securitized an an etf, very fungible and the average investor, i think it can get a

lot of flow and that would be very suprtive. the second reason is really sovereigdebt. it is basically sovereign debt problems. if we we see failed 30-year options. if the t bill optis have higher yields when the fed cuts rates, which is a sign of risk premium that the investors are willing to pay, that's when i think you are going to see bitcoin really starto take off. you stt to see gold take off. these are all bets against soveign debt basically. in my opinion. so definitely a possibility. the fact it has been a quiet rally is probably technically positive. that's my opinion. >> i think we're going to agree on this one, too. i think bitcoin is like the new gold. but i'm more of a firm believer in crypto and blockchain. so i think that's how i would rather play, find companies that are using block chain and crypto and not just one of the coins. >> not the asset. >> not the asset. >> not an asset. >> the technology. the block chain behind it. which i think is going to be here to stay. but i do think bore sis right in terms of the bitcoin and the

gold, it is a hedge in the portfolio. it is what if those rates, i mean at that point we're not going to have s&p 5,000 and there will be other things going on in the pofolio. it is diveifying. >> interesting. >> everything rallying today. >> what is more fun than your normal three-stock lunch. you were both talking. >> let's do it again. >> absolutely. >> have a great weekend, boris. st y c earn it whenouan ju inherit it. we will discuss the great wealth transfer under way and much more when power lunch comes back. 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. this thing, it's making me get an ice bath again.

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just about three minuteseft in thshow. several mo heaineslet's the news that goldn sach employees, according to e new pool is reportedly much more s allow than the bank originally thought. managers are pparing teams for disappointing earnings this holiday season do you think there is truth to it? >> if there is, i don't know where they will go >> private credit. >> private credit, right. but you have to kind of leave it. is not like you're going to leave to anoth bank. you know, wh y saw what happen with the competition for talent >> rht, thcompetion r talent, it is not like the m&a activity is booming, capital markets have slowed down, so what are we talking about in terms of operations? >> do you own the stock, goldman? >> i like morgan stanley a lot better, with 60% wealth management. i think goldman has some issues and they need capital markets to

work, and if capital markets work, it is morgan stanley, because they're not getting value at all for that. >> interesting. moving on, panera bread has filed to go public once again. it has been out. it has been out. last publicly traded in 2017 before j & b holdings took it private in a 7.5 billion dollars deal this. one has been, you know, j & b refashioning the portfolio, krispy kreme, what do they do here? >> panera is a great brand. and as people come back to the office, that is probably a good way to do it. the question is, what will the balance sheet look like? for us, when we look at the companies, we say if you are going to low this with high debt, it is very hard to get the operating leverage that you really need. the financial, everything becomes a financial play. i think if it comes out clean and it depends what it trades at but a great bran >> any detail about what would have happened wh it we private and you're right it wod make it a much diffent

story no and the times. w biionaires are getng than ever before, as the great wealth transfer gets under way. according to ubs' 2023 billionaire ambitions report who knew that existed, 53 heirs inherited a total of 151 billion dollars this year, more than is 141 billion by self-made entrepreneurs, and apparently the first time since they started doing this back in015. >> i think the unicorns are no that anymore.ns so you don't see itill interting to see how much of that dropped. and also how much of thiis nonu.s. versus u.s. right? we have very differentaws in lawyers make lot of money doing this, as we know but in other parts of theorld, it is sier to inherit. >> can you imagine inheriting that? >> more and more high schools offering financial literacy classes but only seven states

referred an "a" grade, meaning they require students to take at least one semester of personal finance. and four stes had an fwith no requirements, california, connecticut, massachusetts and washington, d.c., got an f. my home state of virginia got an "a". >> cnbc will teach you. >> great to have you with us as always. >> thank you for watching "power lunch," everybody. >> "closing bell" starts right now. guys thanks so much. i'm scott wapner, live here at the new york stock exchange on this friday, make or break hour begins, with what else, the rally and whether a new month will bring more of the same for your money. we'll ask our experts, over this final stretch. here's your score card with 60 minutes to go in regulation, december really beginning, as november went out of the stocks in the green, nearly every s&p sector is in positive territory, and industrials and materials, both up nicely, but there you can see, it is pretty broad-based, mega caps always check on them. they're a bit mixed today, and apple, amazon and nvidia, up,

meta,