business cool fan certain accessory physical features gave job candidates an edge and landing certain roles. >> even if the interviews are on zoom. you just wear a nice suit and jacket and tie. with your gym shorts. >> tweet your plant, move it over, here makes it look like it's coming out of your head. >> thanks for watching power lunch today. >> see you tomorrow, closing bell starts right now. thanks kelly, welcome to closing bell. i'm scott wapner at the new york stock exchange. that's because of the future of the rally and whether a new bull market is just getting going. can bonds continue their own remarkable rally of late? we will ask black rocks rick rieder, he will join us momentarily. in the meantime, your scorecard with 60 minutes to go in regulation looks like that. tech names are the biggest drag on the dow today. the dow is coming back a little bit but apple, microsoft, salesforce all slipping today. how about meta? that is driving the nasdaq lower onward that founder and

ceo mark zuckerberg is filing to sell stock for the first time in a couple of years. bitcoin and gould continuing their own respective runs. and the tenure know yield is up today, but check it out. right now, for 28, takes us to the top of the take. the final stretch and beyond and where your money is going to work best. let's ask rieder, black rock cio of fixed income. also the head of the global teams. in other words, he covers it all. good to see you. >> thanks for having me. >> we're coming off an incredible, month bonds had their best months of the 80s, stocks have been ripping. what is your current view of the market? >> listen, a couple things make sense, a couple other things are askew. the first is that inflation is coming, down the data is clear on inflation. as looking at core cpi x shelter it's running at one and a half percent. you look the first month moving inflation, corsi p i was running in the low twos.

i think corsi t e quarter is two over two quarters. it's real in terms of inflation coming down. the narrative of the economy falling off a cliff, they were moving to a recession and the feds have to start cutting, we are facing a cut in january when the markets, which is absurd. i think that is maybe a bit presumptuous, listen, i do think the economy is falling off a cliff. i don't believe we're going into a significant recession. i think the pull bog you said today, particularly at the front end of the yield curve, make some sense. >> you're a believer? you're a believer in the soft landing scenario? that inflation is going to continue to come down and the economy is going to hang in there enough? >> i don't know if i said, it i settled on your show before. i don't know about this a landing concept anymore. you have an economy that is much worse than people think. i think we are moderating from a caught a period of extraordinary growth. if you think about nominal gdp, a couple years ago it was 11, last year was seven. we are normalizing from what is

extraordinary monetary and fiscal policy and we are just normalizing. we've got next, year we've got real gdp running at about one and a half with inflation running about two and a half. that is a normal economy. i think the world focus is way too much on surveys and surveys get nervous much more so. i know you think about it all the time, a number of companies are actually talking about bottoming. which is a bit over the top. but we look at inventory levels, if the toy levels for a number of companies have come down quite a bit. i'm pretty saying quip about slowing but not excessive slowdown. >> is the fed done hiking? >> i think, yes. they are done, the question is, what do they start evolving the narrative? real rates, if you think about fund, rate five a quarter and five and a half with inflation moving into the twos, the real rate is too high. i think the fed has got to start cutting. i think the market is ahead of itself in march. we were pricing on friday on two thirds that you cut in

march. i think that is over the top. but i think in may, june, listen, i think they'll start cutting. i think we'll start doing something like 25 basis cuts to get the real rate down to what is a level that, by the way, would be restrictive. it is too restrictive today. >> you said the narrative is evolving. waller, did he play a role in evolving it by suggesting that you could in fact have those rate cuts? steve liesman suggested he said the quiet part out loud. he is not the chairman but, nonetheless, his view is provocative and it did move the market. >> he's very influential, is very thoughtful and he is very model oriented. and so, he has been a hawk because he was right to be a hawk because inflation was high and employment was operating at a breakneck pace. all of a sudden, he cited some things, the queen's rate coming down, unemployment, some of the slack in the labor force is starting to build. i think he has been since, here he is being sincere relative to

an economy that is moderating and inflation that is really coming down. i didn't see steve say that, but i think he was right. he was exactly how you think he would be but he just said it, and the markets reacted to that. >> the implication is that they cut because they can, not because they have to. >> yeah, and now the balance is much more to weigh. i think it's a really big deal for markets. if you have a fed that can respond to the wave cuts, now you've got to be thinking what the interest rates are. can they be hedged? can they be balanced in your portfolio? as opposed to we've lived in this environment where rates go, up negative return on fixed income, very different paradigm. not just for the rates market before all markets. >> if i believe what you are saying, does that mean i should increase my exposure to risk assets? >> listen, if you said, what is the paradigm? if you're building a portfolio today, a couple things i think makes sense. one is you can still put a ton of income in a portfolio. we run these portfolios at this etf now, 7% yield. buying a lot of quality assets,

to have years of duration. if i can collect six and a half to seven and then hold my equities, i think next year, it can equities get you seven to 12% return? listen, i don't think you're going to have a spectacular risk performance like you saw in beta this year. but you could still have a pretty good year. you look at the level of gdp and the ability for companies to throw off real cash flow, listen, i'm pretty relaxed about it. i think you will have good returns but i would build in your portfolio a lot of income. you can do it by not taking a lot of risk today. >> what is the traditional 60 40 mix then, which is that look like? is it not 60 40 anymore? >> i don't think so. it depends if you're a pension fund, endowment, life insurance company. you need long dated fixed income assets against reliability. today, you can build a portfolio that has got -- that uses what we like today, the belly of the yield curve. the 3 to 7 your point. clip an awful lot of yield.

i think that is the linchpin of where the fed starts cutting, where you'll see some real performance. you can build and quality assets. he did see credit, parts of the -- you can clip six and a half to seven. what i would do is take 60, keep it in equities. i will take 30 and i would say, gosh, i'm going to build a bunch of income without a lot of beta in my fixed income portfolio. i don't need a ton of e m, less so in high yield than if and historically. i take ten, a lot of people talk about private, credit structured finance. >> private credit is on fire, right? filling the void for what the banks have slowed. >> we do a lot of bilateral financing, a lot of individual credit financing. this is as good as it gets in terms of the ability to actually create structure, collateral, confidence in some of the private credit. >> you talked about the 3 to 5 year, you see the complexity of returns is the best that you've seen in decades. that is precisely because you do think that rates are going to come down within the next

six months? >> if you run the numbers, if you go to high quality portfolio using the middle part of the yield curve, if rates go up, which i don't anticipate, 100 basis points, your carry and your income, even if rates go higher, you still generate a significantly positive return. we ran the numbers, if rates go 200 base points, not going to happen, you still end up breaking even if you build a quality portfolio in the belly of the curve. let's say the fed starts cutting rates and quality assets with extending out a little bit of the yield curve. you can create double digit return and high quality fixed income. that is as good at convexity as i've seen. and literally, might, in a couple of decades. >> what else? i read recently, you said the technicals and high yield are, you used the word, incredible. >> they are. think about what happens, 72% of the high yield issuance, they refinanced when the funds rate was under 1%. they push the maturity wall out. technicals encrypted, they

don't need to do a lot of issuance, the buyer base, people looking for the old is terrific. by the way, i don't think the spreads are attractive at all. but you're getting a lot of you because the risk free raider so high. you have a great technical. my sense is, well, you have to use a lot of high yield today? you don't. i would rather's my beta in the equity market. but it's going to be fun. >> what do you make of the breadth of the equity market and the way things seem to change a bit in november? now the big question is, is there staying power behind all of these lagging sectors? small caps and things like that. which obviously have woken up. are you still a dance with who brought you state make a cap tech? where do you think we will have a broader move? >> the first thing i said, i think the breadth of the market is terrible. liquidity, we trade a lot of equities, options on equities. the markets are thin and the jumpy, less convicted nature of the markets, the ability to be right one day and really wrong the next, it's pretty extraordinary. the thematic seems to have a

ball pretty quickly. that being said, what would i do today? listen, i think big tech is going to continue. i am in the camp of cash flow, your billet-y to invest in r&d, the ability to grow to create real cash flow. i think it makes a ton of sense. i still like having heavy exposure there. the thing, though, that i think makes sense in terms of building some balance in the portfolio is, gosh, there are some areas of the economy and the market that makes sense. health care, which i think is technology in a different form. >> which hasn't done well this year. >> which hasn't done well but i think some of these tech stocks and managed care, some of the pharma space is pretty attractive. you look at defense. by the way, energy, you look at energy and you look at some of the auto's, the multiples are pretty attractive. i still like the heavyweight to tech and moving some of that tech into a tech oriented health care. i also think tech and some cyclical exposure makes sense as well. >> what do you think, if we're nearing the end of this

remarkable cycle that we have been on for 18 months? what do you think is going to be written about the performance of the fed over this period of time to get inflation down, to keep the economy from becoming complete disaster and somehow managing to do all of that with all of these other risks? some existential, like geopolitical, wars and alike. somehow we are where we are with someone like you in the seat where you sit, suggesting they're going to pull it off. >> how long is this segment? there are a couple things i would say. i think the fed is take too easy too long. the wait again for it to be excessive? i think it's hard to prove that. there are other reasons, a war, a pandemic that created excessive inflation. but they stayed too easy to long and that has been well chronicled. they were very adept at moving quickly around getting the rate up and including post covid to the things they do that i think we're innovative. listen, i'm not a believer that

you have to keep rates well above four-ish percent. i don't actually think it does that much. i don't think the economy is as interest rate sensitive and it bludgeon's capital. places like commercial real estate, raise the real estate, low income people. i don't think you have to keep the rate this high and i think they should move it down. but anyway, if you're asking me a broad assessment, i think they did a lot of good things. but excessive interest rate policy, not just for the fed but the ecb, bank of england, negative interest rate makes no sense. i don't think excessive interest rate policy makes us because i don't think the economies are's interest rate sensitive as they used to be. >> what worries you, if anything? what is the one thing that you're like, okay, if that happens, maybe my view is a little too -- >> way from geopolitics, away from things like u.s. china relationship, china slowing. although my sense is that is bottoming and coming a little bit back today. fed over tightening, i think we are past that. that is a big deal with why

volatility is come down, fed tightening and hurting the residential mortgage market. that is something to be careful about but i think we are past that. the thing i have got my eye on for the next two years, three years is too much debt on the u.s. government. the debt to gdp numbers, unless we start bringing that down, unless the fed brings the cost of the debt service down, unless nominal gdp stays high enough to offset what our burgeoning deficits and course of the debt service is, it's not going to be a parka problem for the market or anything in january. but i was a policy makers don't react to the shark when it's right next to the. the shark is going to get next to the boat and you've had people on to talk about it. we have to address the debt in this country. it is too big and the debt service, we used to fund treasury bills that were close to zero for ten years. the average rate on treasury bills was under 0.8 3%. we are funding for, 500 billion a week at five and half percent. it's too much, it's too much. we're going to have next year. all of a sudden, can we place this much?

this could be risks around that. that, to me is the one, that over the intermediate term, makes me nervous. >> that is why people i can griffin and others who have come on the network suggests that, if you look at the charts of servicing the deficit that we have, they've used the word scary. others have said i -- sandra come miller said the same thing. that's going to keep rail rates higher because of that service. and we take one to the next? >> that's, right i think it will keep rates higher, but think about, it the fed can control the front end of the yield curve. we are issuing, if you think about all the issuance were, getting mostly treasury bills. long discussion about the weighted average of the treasuries maturity debt. we issue a tremendous amount of the front end of the curve. if the fed brings the rate, don't you start to bring that cost of the debt service down. they can control the front end. listen, the longer end of the curve can move around. that being said, we don't issued, the treasury doesn't issue nearly as much of the

back end of the curve. i think the fed has got to get the rate, down bring that that service down. and then, by the way, we have to keep nominal gdp up in this country. as long as nominal gdp exceeds the cost of the debt, you deliver the economy. i think that is a really big deal and i think that is the key, whether that plays out of the next couple years. >> i think you explained it, well here we went 15 minutes, that was the length of the segment. was that good? >> appreciate it. >> appreciate it very much, rick rieder from black rock. appreciate spending time with you in the new year as well. >> let's bring in nikole web of wealth enhancement group. it is great to have you here to react to mr. rieder, with that line is going to say, rick rieder, pretty sanguine on where we are and what these markets can continue to do. nicole, do you agree? >> i do, i think there were points that rick made, who am i to compliment him? at the same time, were aligned with really, if we kick things off at the start of the conversation with where real

rates are and the unnecessary level seeing as it disinflation has come in. in these cooling off that we are seeing. it does propel the idea that the fed can pull rates back sooner than anticipated, even two months ago. i think that does a lot in terms of interest rate stability and how the market prices, kind of this resurgence of the breadth of the market. well we haven't seen it play out all the, way it gives a better read through into being opportunistic in 2024. >> dan, what is your reaction to rick? >> listen, i unfortunately agreed with just about everything he said. i would just take issue with a point that nicole just put forth, ads did rick, i don't know that there is an immediacy in terms of the need to cut rates. i don't see why. rick did, say by the middle of the, year they could be cutting. i think that's a reasonable position that the economy will have evolved and the path of inflation will have evolved to a degree such that they could probably begin actually

contemplating cutting rates by the middle of the year. but before, that it seems unnecessary to me. i'm not particularly concerned, the economy is doing just fine now and i don't know if there's any need to reduce the level of interest rates. >> do you agree problem with him? but the fed is actually going to pull this off. he made it clear that i don't know about landings and things like that. implying that we may have no landing. maybe we just keep this economy, this economy keeps humming along good enough. inflation comes down enough that we are like, holy smokes, they actually did it. >> yeah, listen, that has always been a possibility. certainly the odds with today are higher than they were six or nine months ago. i just remind viewers of a point a lot of people have been making as well. it always looks like a soft landing before a hard landing. on the one hand, yes, inflation has come down tremendously. no, we have not had any meaningfully adverse effects in terms of the labor market. which is ultimately how you would define a soft, hard or no landing. at the same time, it's clear

that the fed doesn't usually get this right. while it does appear they are getting a right for now, the odds still are existing that perhaps those lagging effects are going to start showing up somewhere around the first or second quarter of next year. >> what do i want to do, nicole, if you agree with rieder that there is reason to be reasonably positive on the market next year. he said high single, low double digit returns. how does that sound to you? >> in 2023 it has made 2024 look more advantageous. while we harped on the magnificent seven, it is less runway to say, there is opportunity for share price to catch up to the likeliness that we saw traps in earnings and we haven't really seen performance up to that share price. when we think about sectors, we can think about the fact that supply will likely continue to be cut and energy. there's a window of opportunity there, we can look at health

care and the performance here to date. we can think about the infrastructure spending and bills around that and then look towards mid cap. we don't necessarily have to make a determination about whether we are late cycle or early cycle. instead, we could, say where is the money flowing? i know that the astros make up 20% of the mid cap space. there might be more stickiness there regardless of knowing perfectly where we are in the cycle. which isn't a textbook definition of when you deploy money into smaller mid cap. i think there is a lot of opportunity for investors and, while rick spoke specifically to pensions endowments and sovereign wealth funds i think, from our side of the business, working with individuals and family wealth, there is never been a better time to actually create portfolio construction based on whatever the timeline is for next year. to quote wreck again, you can put a lot of income in a lot of different pockets across the market spectrum. >> on that note then, dan, working for solace alternative

wealth management, what does 60 30 ten look like to you if it is 60 equity, 30 high quality yielding assets and then ten private credit and things like that? >> yeah, we talked about this in the past. you are entering the year with high yield yielding, call it eight a half percent. ige, somewhere in the five to 6% range. loans will get you a little bit more than that. rick mentioned nds. if you're going to start cutting interest, raise the level of spread in the mbs market could be attractive as well. a lot of this could be out of the reach of investors but you could certainly put together an attractive portfolio -- to borrow a phrase that nobody is going to know. so when you give you pretty attractive returns next year. to the extent that you don't have a recession, and i don't think it looks like you're going to for the next few months, let's say to the middle of the, year you lay on top your equity exposure on top of that and you're going to have a pretty decent year. again, for the stock market, we are going out here in the 4600

or something range. i don't know why 5000 5100 if you don't have a recession isn't your best case scenario. >> the other thing, let's be honest, the individual investors, they have been the very way you, said being on the sshen it comes to alternatives. now, they actually have platforms by which registered investment advisers that we've highlighted throughout the year have given them access the likes of which they have never had before. that is 0.1. 0.2, nicole, if i turn to you and we react to another thing that rick rieder said as it released equities, let's been back there. health care, energy, what about underperforming spaces moving into 2024? >> i think rick brought forward at the end of your conversation the fact that the fed does have some control over the short end of the curve that makes that that service cheaper and where we often leave out the part of the conversation around growth being an offset to deficit. when we talk about those,

pockets all of what you just mentioned, scott,a lot of them are going to be affected by the next leg of the digitalization of technology and infrastructure within business. we go a lot back to this productivity boom, the space for it and wear that drives the market. suddenly, this 2024, 2025 outlook of 10% earnings growth looks like a possibility. that is where i don't think investors should give up on buying the four 93, expanding into the small and mid cap, which we have still seen outflows out of. and then technology is still a meaningful component. these mega tech names. but again, to your point, there is so much available to the investor now. i think this is a time to just really position going into the end of the year. >> dan, last point to you about the non of four 93 being the magnificent seven, which rick rieder said he would continue to lean heavily into. what do you think? >> this point has been made before it bears repeating, we keep mentioning the magnificent

seven as if it's really seven companies. but it is infinitely more than that. obviously tesla is multiple companies, google isn't just search, it's got youtube. it's an a.i. derivative play. microsoft, et cetera. there is more than 70 companies within those seven companies, if that makes any sense. certainly they trade at a premium multiple to the market in a lot of respects across the space, that's warranted. my gut, i think nicole touched on this, but my gut next year as you would want to be exposed to sort of an equal weight. there is an etf rsp, ricky sand peter, equal weight etf. you probably want to be more exposed to that then the market cap weighted etf. but either way, again, if you're not going to have recession andrew and have earnings growth, probably the market is going higher. >> guys, that was really, fun i love having you here to listen to reckon and react in realtime. we'll do it again. dan and nicole, thanks so much. we're just getting started here. up next, shares on spotify popping today and hitting the highest level since february of 2022. we'll tell you what is behind that move coming up.

plus crypto, stocks their rallying. eric jackson is back with us breaking down how he is playing the pocket in that space and beyond. we are live from the new york stock exchange, you are watching closing bell on cnbc. (♪♪) (♪♪) (♪♪) (♪♪)

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i'm here to thank you. the closed, let's look at some top stop now. as we head, there kristina -- joins us with that. hi, kristina. >> i, it's got. let's go, spotify after the music streamer announced its third round of layoffs this year alone. -- equates to 1500, jobs this

according to someone familiar. ceo daniel ek said the company took on too many employees in 2020 and 2021 and that it needs to, quote, right size to drive core profitability. shares at 100 20% this year and hit their highest level since february 2022, that b today stocks are quite present. pv h is also a bit of high-level since 2022 after the calvin klein parent was made the top 24 idea at ubs. analysts credit the strength at pvh and think the ceo is doing a good job improving profitability. they also raise their rating estimates for the computer hiking its price target $258 a share. shares are only at 10 4:55 now but are about 5% on this upgrade. scott? >> we'll see you in just a bit. kristina, thank you. kristina partsinevelos i. up next, who needs the magnificent seven? that is eric jackson's, take held tell us where he's seeing opportunity outside of the make a cabs, just after the break.

closing bell, right back.

we're back. nasdaq down 1% today. however, names like uber, coinbase and several others continuing to move higher today. my next guest was all three of them and joins us now to discuss, let's bring in eric jackson, the emj capital founder. good to see you. i do want to start there on the stock side but rallying, we talked about how the ark innovation fund, for example, is just coming off its that's month ever. i see a headline here that you sold out of metal completely. that is where i want to start, on a day where we're trying to figure out if zuckerberg shelling any shares means anything. it is always speculation when you see that. why did you sell out of meta completely though? >> i still like it a lot,

scott. one of my favorites among the maga seven but it goes to something we talked about a couple weeks ago, which is that the tp i dated that came at a couple weeks ago was a seminal moment for the stock market. we will have reverberations for the coming weeks and perhaps months. it was a sign that the fed was really on the sidelines, now it is basically time to wait for the cuts. that signals the end of a two and a half bear market for the russell relative to the nasdaq in the nasdaq 100. i believe that we are going to see a broadening out of the rally. that is exactly what we've seen over the last three weeks. i want to put my capital the best use now and, even though i love meadow still and i'm sure i'll be back into it at some point, i wanted to put that money to work in some of the other mid cap and smaller tech names. >> why do you believe that those kinds of stocks have more staying power? if i use ark innovation as an example, the pop over the month

was so tremendous, obviously correlated to the tremendous drop that we saw in yield as well. but maybe we've seen the best of that for a while. >> or i would argue, scott, that arc has been in a two and a half year bear market. basically they peaked in february of 2021. at that, point when they started to dip and go down, that was really the first inkling that rates were going to go up significantly. now, i think we are sort of at the other side of the coin. where the anticipation is, how much are it's going to drop over the next year or two? we don't know if this is going to be a five-day rally, five-week rally or five months rally. i think i want to be positioned for the smaller mid cap names like uber, spotify to continue to do well. there's so much ground to make up in terms of how far they have pulled back over the last two and a half years. >> your three top names you

tell us. coinbase, that's number, one let's start there. given what bitcoin is doing right now and now the predictions, again, the protectors are coming out of the woodwork suggesting how much higher it can actually climb over the next 12 months. tell me about that stop. >> well, so far in 2023, coinbase has far exceeded the returns for nvidia. i'm not sure how many people realize that. obviously, they've been on a tear just in the last three or four weeks to, its bitcoin has really jumped from the mid 20 thousands to 42. but i think there is still a lot more room to run in with coinbase. some people looked at coinbase after ftx collapsed and everything, crypto is a scam, why would you want to be exposed to that name? they are best to breathe within crypto, they improved market share of the last year as ftx went out of business, finance had to deal with the s.e.c., they've lost share to coinbase. all the smaller changes have gone out of business. the other big thing is that, people forget, basically

coinbase was a massively profitable company even before 2021, when their margins were 58%. i think we're seeing something interesting in the crypto market that is sort of parallel to the broader tech market, which is that, up until now, bitcoin had a great year but it's kind of been the way that the mag seven had a great year. we haven't seen that extent to some of the smaller alt coins. the last three or four, weeks those kinds of massively rallied, some of 15 to 75%. when that happens, the arc grew for coinbase goes up massively. if you get an increase in retail participation trading these coins that coinbase, they will be massively profitable again. >> i think they quit as a best performing as a class of the entire year. maybe i'm wrong but i think that is the case. a firm, interesting, considering we're trying to assess what the real state of the consumer is. >> i love a firm as well, that is my favorite long holding.

it has been on a tear recently. the thing that really catapulted it was the news after black friday, cyber monday by adobe analytics that buy now pay later, they are the pure pay form, of what is up 20% for shopping. that is a signal that the consumers are stressed but they still want to spend. they don't want to spend it on credit cards. but by now pay later, for equal installments, no interest attached to, it is appealing. i don't think anyone has a massive increase in share for by now pay later, expensive credit cards factored into their models. that's the reason why the shares have gone up so much. but it still down tremendously relative to where they were trading back in 2021, when the expectations for mark's you are probably not even as high. >> how about shopify, lastly? which is up 70% in 12 months. >> it is also a favorite of mine.

i love these through the most, i call them the sack of gold, as, a and c. what is interesting about shopify, affirm and coinbase, they all work together. shopify has a partnership with a firm to bring by now pay later to their merchants. the founder of shopify sits on the board of coinbase. they are all founder lead companies. they're all experts in their domain of the next build out of the digital economy. they're going to be important cog in that build out. and they've also shown insider buying, they believe in their mission and what they are doing. shopify is obviously the leader in e-commerce. if you think that e-commerce is going to continue to take share from retail and even from the amazons of the world, shopify, i think is the best way to play it. i love all three of these. >> i want to ask you about one more before we, go because it's in the news today. huber, which is been a great run, now goes into the s&p, figured a lot of that was probably already in the stock. maybe not, what do you think? >> no, it's been phenomenal.

if you look at their chart since october 26th, it basically bought about 40 bucks and change and has been straight up to 60 a person's. i'm not even sure they have had a down day since october 26th. i think what is going on is a massive re-rating in the stock that it is -- now, playing a major role not just in transportation but of goods and food as well. they've been a big winner and they're on the cusp of becoming massively free cash flow positive for the whole year next year. i think people want to participate. this is a good example that there are going to be some tech names that are good rally in the next two weeks, they've been down because right interest are so high. names like uber which are profitable, solid, mid cap companies that just haven't gotten the juice so far and will continue to do as well when they strengthen their business over the last few years. >> eric, which were to talk to

you soon, thanks for coming back on today. eric jackson at emj capital. and next, we tracked the biggest movers. back to kristina partsinevelos now. >> you video could be the running to line unprofitable cloud company and investors are definitely reacting. i love that story and much more after this short break. a few years ago, i came to saona, they told me there's no electricity on the island. we always thought that whatever we did here would be an emblem of what small communities can achieve. trying to give a better life to people that don't have the means to do it. si mi papá estuviera vivo, sé que él tuviera orgulloso también de vivir

de esta viviendo una vida como la que estamos viviendo ahora. es electricidad aquí es salud. about 15 away from the

closing bell, kristina partsinevelos watching stocks for us as we head there. kristina? i >> let's talk about five, nine it is soaring right now as the cloud-based call center giant is evaluating itself, or should be a valuing settling itself. according to bloomberg, the company is engaging interest and potential, buyers which include zoom video which tried unsuccessfully to buy the company back in 2021. the report also says conversations are still in the early stages and may not result in a sale. nonetheless, shares of five9 are up, over 9%. and palantir is under pressure to as william blair reiterate, underperforming on the data analytics giant. analysts there say there is still tension over who owns the data in a lucrative contract with the u.s. army and it could result in the contract being renewed for far less than the original amount of nearly half a billion dollars. this has a shares on pace for their worst day since late august, but still up over 100

and 80% a year to date. shares down almost 9%. scott? >> kristina, appreciated as always. kristina partsinevelos. your rundown, shares of lululemon and nike are moving in opposite directions. we will tell you why, when idlest has something to do with that. we'll break it down when closing bell comes right back.

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alaska airlines, that start falling 15% today after agreeing to acquire hawaiian airlines, a deal valued at about 1.9 billion dollars. company saying let's go to pay $18 a share for hawaiian, would take it $900 million of its debt on its balance sheet. hawaiian airlines has a market cap of about 250 million. look at that jump right, they're only up one 90%. quite a move. up next, ford shares, they're higher too. we're going to break down what is behind that stocks pop and how it could impact the rest of the auto space. that and much more when we take it inside the market zone.

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bell markets on. cnbc's market commentator makes and toledo to break down the crucial moments of this trading day. plus, phil lebeau on ford's latest numbers. that stock is on the move. courtney reagan joining us on the retail may wells fargo just called a topic. and the one they just didn't. mike santoli, i turn to you first. trying to make a move here towards the end of the day and the dow. >> wasn't much of a pullback at, all markets can tendering to address much of the complaints about it. the breadth problem is essentially fixed in the sense that the advance decline line has made a new high, you are seeing it again today. even though there are more nasdaq stocks up than down today. even though the nasdaq has been taking it on the chin, down

close to 2% today. >> that is probably why eric jackson was talking about it. because they're down today and that is a weight with respect to microsoft and, apples for salesforce in there to. >> running from mega cap to small, or from crowded to neglected, from arguably expensive or bulletproof growth to more cyclical and less expensive. we'll see how long it lasts. this is the absolutely perfect way for the market to digest this move, if that's what we're going to be doing down the road. obviously, i think there is also a history of early december being a little bit choppier, sleepy. and then you see the jobs number and the fed meeting in the next six trading sessions. it is probably all the result of the world for us to hesitate a little bit right here and figure out if this rally made sense. >> what did you make of what rieder had to say? who came across with the word saying when, that's the word i said earlier and he used. >> normalization is very benign in the way that he frames it and i think, that if things do

play out that, way that is what the market has been warmer towards here. we are good news is good, news the economy is going to slow but not fall apart. yields can modify or moderate from here and policy is in a more positive place when it comes to the fed. i think it makes a lot of sense. the question is, is the stock market not taking the pain along the way? or has it done so in such a subtle, nuanced way that there isn't a tremendous amount of upside from here, based on that? maybe that's the case. but i think that it's a scenario we should probably wish for and it hasn't shot up. >> phil lebow, i'm looking at ford here, which is higher. investors will take it because it's been a tough year for those shares. >> yeah, they've been beaten down over the last four, weeks especially coming after the uaw contract deal, as those deals came out. take a look at the stock today, it is moving higher because, when you look at sales, jim

farley talked a few weeks ago, when you talk about going hard on hybrids, it is paying off. overall sales down fractionally, there you see the ice models. ice models are tougher to sell for everybody right now. but the hybrids are hot. it's not just fibers that are working at ford, the increase production on the f-150 lightning, the mustang mock e, they start that a few months ago and that's the reason why those sales of those evs are up 43% of the month of november. but for a company that has had not a whole lot to celebrate over the last month, aside from the uaw contract. they'll take this, this is proof that the strategy shift from jim farley is working. but take a look at ford forces honda and toyota. we're going to take a look at all of these. there's been a definite split in terms of performance this year. it is easy to see why when you look at what is happening with toyota in honda and the emphasis on hybrids relative to the investments in evs, that has what has been waiting for it and gm.

>> good stuff, phil le beau. on to courtney reagan. now he gets a, yay lululemon gets an a from wells fargo. >> this is an interesting, one it's a bit of a victory lap for wells fargo with lululemon. it lists upgraded lululemon in january because i thought inventory would be normalized margins will be filled by improving freight, cost international growth, especially, china would be robust. it's valuation would then return to historical trends and all that would happen. all that pretty much did play out, that drove lululemon's performances here. then when you look to 2020, for wells fargo downgrading lulu t equal weight and replacing it with nike as both its topic and its new top defensive pick. nike is right now overweight with wells fargo, 125 price target. it says nike is still a quote show me story but believes its characteristics and self-help story makes it a compelling long idea for next year. in a note to clients he, says there is ongoing opportunities for revenue growth and expansion in free cash flow

generation to justify its target multiples. but he acknowledges that commitment for footwear in china is a major concern and, certainly, a risk factor. scott? >> courtney, thank you very much. two minute warning, just about their. mike santoli, we turn our attention back to the bucket. the russell was a performer, as we said. now has come back from where it was. nasdaq having a rough day. you opined on this news that mark zuckerberg is selling some stock, a week or so ago we are, think bezos is selling a lot. now we get rid of nvidia insiders as well. right as these stocks have just crushed it. we're having to speculate as to the reasons why, we don't know. >> -- the video selling comes after the earnings, report you open up the window, people are allowed to sell. the stock is up in has triple this year. that, you can take us a bit of a price, signal i think. mark's like a bird, founder, peeling off stop. the stock is down less then the

alphabet is today. it's not as if i think people have seized on that to say law. it's like a burglar to, say i'm passing on the company to my successor ceo as bezos did at the absolute perfect time in 2021, that's a different story. at this point, to me, lightning up doesn't make a lot of sense. the overall market insider selling trends are not nearly alarming at this point. in fact, it's one of the many measures of kind of sentiment and how far people are out on the risk curve that i don't think are really flashing a red signal, even if the market looks a little bit stretched on a 12 month, five-week run. >> had it interesting week. alphabet down 5% over one, week meta down about four and a half, nvidia down near six. >> there is an argument as to whether the overall take could handle something like that. right now, rotating because peoples overall equity exposures are not that crazy at this point. i don't know that we're seeing

a real leadership shift that's going to last a long time, not ready to make russell going into a 2500 call or stuff like, that but it's worth keeping an eye if the market can handle this -- >> [inaudible] make santoli, we'll see if more. as we headed over to overtime. closing in the, red but also some of the best levels of the day. that's the scorecard, but winners stay. late one to closing bell: overtime, i am john fortt with morgan brennan. >> good to be with you, i, makeup converse echo terry gina raimondo joins to say what she sees the threat from china's large and growing and -- some of the most detailed comments yet. >> plus, blackstone's had a private equity on why dealmaking is starting to heat up and where he sees the most compelling targets for takeovers right now. >> let