this can mean disruption to supply chains, changing demand for products and shifting regulation. what does this mean for your business, your clients, and your investments? ice offers data and markets that can provide critical insight. manage your climate risk with ice. ♪ welcome to "power lunch," everybody. alongside kelly evans, i'm tyler mathis. coming up, fear of missing out versus the safety trade now that interest rates are up, many people are seeking the safety of bonds, money market funds, cds, treasuries. but those who have missed out on a huge november rally, the people who put their money in those safety havens. >> we'll talk about that. plus, gamers getting a look at the next grand theft auto release. the last version did 1 billion of sales in just a few days. anticipation for this one is even higher. but take stock is lower.

steve kovach will join us. a check on the markets before that, though. some red and some green. just in time for christmas. the dow is down a quarter percent. the s&p down 5 points and the nasdaq up 19. apple back above the $3 trillion market cap level today. there you can see it right around that number at 192 first hit that milestone back in june. we're also watching shares of starbucks down for the 12th straight session. and sinking to session lows, we'll have more on that coming up. and we start with the fear of missing out versus the so-called safety trade. according to a new report from b of a securities, investors, they're loving cash. money market funds hit a record high of 5.8, $4 trillion at the end of november. that's an increase of 27% from data from last october. while those investors enjoyed a safe return, they did miss out on a stock market rally. the s&p 500 up 10% from the low hit in late october. could that cash on the sidelines

come back into the market and send stocks even higher? joining us now, jim tyranny, cio of concentrated u.s. growth with alliance bernstein. steven setmeyer, technical strategist with b of a securities and the person behind the report. steven, let me let you lead it off here. is this money that has been in these safe havens, cds, money market funds, even savings account, is this the kind of money that is poised to, in inclined to, go back in the market at some point? or is it money that is being put intentionally in these safe havens because for the first time in the decade in a half the safe havens actually pay something? >> well, the answer is actually both. i hate to say that. but, sure. you're getting a greater return on cash. cash is definitely an asset to invest in now. and i think that's very important because you're actually getting a nice return on cds the money market funds.

so it would be sticky to some extent. but what is really surprising to me is that even with interest rates falling on the 10-year yield over the last couple months or so, and the equity market rallying in the face of that, you're still getting, believe it or not, money market funds going to new record highs. what was really interesting is retail investors having increased their money market fund assets 44% in the face of a 28% rally in the s&p. that's unheard of. but i do think if we continue to rally on the market, on the equity market, some of that cash will get put to work. and provide a source of funding to make purchases and equities especially given where we are in term of seasonality and in terms of the presidential cycle. >> what do you say, jim, is this money on the sidelines, rocket fuel for the next leg p? >> i don't know about rocket fuel but certainly investors have to think about where our money market fund yields going to be in a year or two years. they're not going to be 5.5.

so 5.5 feels really good right now and it's 0 risk. but a year from now it might be 4. and two years from now it might be 3. so i think investors have to think about extending duration and whether that's in long bonds or equitequities, both are on t table. >> should i, jim, under that scenario, as opposed to letting my late flow down, should i lock in a longer term treasury? maybe a two-year, maybe something -- maybe a one year? ladder them out a little bit. >> i'm an equity people. other folks at ab that know more about this. i think investors shouldn't be lulled to sleep by a great current yield. they have to think longer term here. >> so, stephen, just to go back to this idea of cash on the sidelines. you know, is it just an accounting trick in some ways? people who sell their stocks, i mean, they end up with cash they have to put somewhere, too, right? >> yeah, of course. and right now, i mean, it seems like the market itself is

broadening out. so perhaps some money is being put to work. i mean, you're looking at the s&p 500 bumping against 4,600 with the advanced decline line going to a new high, so the equity market is actually a lot broader than people think. and the other factor it seems like when you look at the equal weight of index, that ratio found support. so now the average stock is starting to outperform the biggest stock. maybe there is something going on here under the surface that folks are missing. if you look at some of the indicators, for instance, such as the indicator we track here at b of a technical strategy, they're not euphoric. in fact, they got somewhat more euphoric in the summer and paired back. they curbed their enthusiasm. so right now in terms of sentiment, in terms of cash level, not just us but the indicator that my colleagues puts out, suggests to us that the path of least resistance should be higher.

>> so jim, why don't we go to some stock choices, you being an equity guy that you like in today's market. a couple from the medical field broadly speaking. and another that i guess could be a kind of medicine. constellation brands that sell beer, spirits and the rest. >> you look at the year to date returns it's been dominated by the magnificent seven. the market widening out is a good thing and lots of opportunities. cooper companies is an example. context lens company, they've been taking tons of market share. they raised prices by 5%. give or take in early november, that's going to super charge their business. and you're not going to have as much of an interest rate or currency head wind for them. so i think they report this thursday. i think there's a positive surprise there. you look at advent labs. the discussion is all about glp 1 and what it will do to their diabetes franchise. glp 1s may be a benefit if you're having a glucose monitor in addition to your glp 1.

finally, as you mentioned, constellation brands, the growth of moe dell low and corona is unprecedented in the industry right now. tremendous growth story. the knock on the firm had always been their capital allocation between the new management team, new board members and activists investor, i think investors are underestimating the strength of this business and how they're going to be great stewards of capital going forward. so love all three stocks right here. >> gentlemen, thank you very much. jim tyranny, stephen suttmeijer, we appreciate your time. >> thank you. shares of microsoft have gained. now some competitors are hoping to catch up by teaming up. julia boorstin literally joins us now. welcome. more on this new alliance by meta and ibm. >> that's right. they're calling it ai alliance, 50 companies and academic and research organizations are teaming up with a focus on making ai open source. they'll, quote, develop and

deploy benchmarks and evaluation standards, tools and other resources to enable the responsible development and use of ai systems at global scale. they're also talking about addressing social issues with ai as well as educating policymakers on regulation. >> open source powers the world's most critical infrastructure. and you talk about interpretability, through open source, it allows people to build very diverse set of applications and interoperate because to some degree it's become the modern way to have interoperable standards is by doing it by building together through open source. >> open ai and microsoft are notably absent on heels that sam altman startup is not so open source. i have to point out that google and nvidia are also not members of the consortium. they want to ensure that ai is not controlled by a few stakeholders. >> why isn't google? nvidia, okay, maybe.

it's interesting to find google not joining this with meta. >> google and micro soft said they don't think ai should be open source. they want to have their own tools and their own sort of play books and own systems that they are licensing. meta is making this entirely open sourced. interestingly i talked to both meta and ibm about this. how is this new alliance going to impact your business, impact potential revenues. both of them said, hey, we were already taking an open source approach around our ai investments. what this does is just ensure that we're all working together so that the software and hardware can be open operable. >> what does open source mean in this context? >> they're basically sharing their information about how they're approaching these problems. obviously ai is about this huge wave of technological innovation, what they're saying, let's all share enough information that we can have my tools interact with your tools. they're not speaking different languages. >> and to be clear, microsoft and google have said we want to

have our own walled garden? >> yes. for instance, yeahthat'sow business typically works, right? businesses typically not open source. you think how pharmaceutical business works or other tech tools. but this they're saying is such a technological leap, they want to open source it. meta has been an outlier compared to google and microsoft. >> give me an exam in the history of social media or the internet of open source that worked. >> well, i would say typically things are not open source, right? that's not usually how it works. what meta is saying we're going to share, we're going to open up the doors and let everyone see the way we're using our ai tools so then people can borrow from them or make sure that their apps are effectively built on top of our language. >> julia, thanks. great to see you. thank you for being here. tomorrow cnbc's work summit focuses on the promise and peril of ai and how it will transform the way we work. some great guests on lineup.

scan the qr code on the screen. we'll leave it up on the screen for a few more seconds, five, four, three, two, one. i'll be there hosting the event. we hope you can join us at work tomorrow december 6th. the promise and peril of ai. now to breaking news on the big bank ceos set to testify on capitol hill. leslie picker has the stroir. leslie? >> reporter: hey, tyler. testimonies from ceos of the eight largest banks in the country just disclosed the leader's plan to share these remarks tomorrow at an annual check-in with the senate banking committee. in them regulation will clearly be front and center. no surprise here. jp morgan ceo jamie dimon plans to say if enacted as drafted will, quote, fundamentally alter the u.s. economy in ways the federal reserve has not stud did or contemplated. he is urging lawmakers and regulators to, quote, be thoughtful about the effect of arbitrary and unsteadied

regulatory proposals and their cumulative impact on access to affordable credit and traditional banking products. capital markets and market liquidity and the economy overall. morgan stanley's ceo plans to mirror those concerns. blanket increases in capital for the large u.s. banks who already undergo rigorous stress testing each year and required to maintain additional specific capital buff herbers is wholly unnecessary. there are several of these to get through, so we're continuing to dig in. we'll bring you any additional headlines we come up with, but clearly regulation, front and center, at tomorrow's hearings in washington. >> even as we're talking about the growth of private credit and more capital at the banks but then so much more opportunity it seems elsewhere. this will be an interesting moment for that. leslie, thank you very much for that. coming up, we'll talk more about the bank ceo testimonies

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some of the biggest names in banking will be on capitol hill tomorrow as you just heard. jamie dimon, brian moynihan. they will tell proposed new rules for banks could hurt the economy and stifle lending.

for more on that, leslie picker is at the goldman sachs banking conference with a special guest. >> yes. a perfectly timed conference, one hosted by richard ramsdon, the analyst who covers banks and financial constitutions. thank you so much for being here. so we just hit on some of these testimonies that are expected to be delivered in front of the senate banking committee tomorrow. key focus, you've done a lot of work on this is the end game rules. i'm curious what parts of these rules do you think will get the most push-back and what will they be the most successful in pushing back on that could ultimately lead to some watering down of these rules that they say will be so harmful to credit and the economy and so forth. >> so, the basel three proposals have obviously been in focus for six months. it's obviously been a key focus at this conference pretty much every large bank that's presented has spent quite a lot of time talking about these. if you take a step back, what these proposals will do is

significantly increase the capital requirements on the largest banks. and i think what the largest banks are saying is, look, this could fundamentally change the way they think about certain businesses and it will change the way in which they approach certain types of lending decisions whether that's lending to households for mortgages, it will change how they think about pricing loans for small businesses. it could have ramifications on liquidity and financial markets that could impact things like the treasury market. so, look, these banks are really saying, wholistically these proposals are very far reaching and there hasn't been a cost benefit analysis that's been done that really thinks through what is the ultimate cost of proposals relative to benefit which is that you will obviously have a safer banking system on the other side. >> that's ubiquitous sentiment. >> completely. >> you've done that cost benefit analysis. you've seen the impact in your

modelling of what these rules would do. do you think ultimately given those results they will be watered down? >> i think what's interesting is pretty much every bank ceo that has talked today said their expectation is that these rules are going to change. you know, i don't know if this agreement on exactly what's going to change, but broadly i think most banks think that the change in risk requirements on say mortgages that could impact lower income households is likely to be an area, whether there's likely to be changes, significant change in capital requirements on lending to renewable energy companies is another one, which i think most of these banks i think could change. but i think what they're hopeful for is that there will be enough pushback, you know, from politicians that the whole framework gets called into question and they go back to the drawing board and come up with something which is quite different to this proposal. >> fascinating. kelly has a question for you in

studio. kel? >> appreciate it. richard, could you just talk a little bit about have banks been disintermediated by the growth of private credit which is obviously within some banks but also without and other such institutions, the growth that we have seen over the past decade, how -- when they're making these arguments to regulators, how vital is it that economic activity is flowing through the banking system? >> so i think that is an area again i think will come into focus in these hearings tomorrow. when you look at the data, it is really clear that certain parts of the regulated banking market have shifted out of the banking system over the last decade. if you look at mortgages, go back in time, the majority of mortgages were underwritten by banks. today the majority of mortgages are not underwritten by banks. if you look at the role that banks play in terms of credit provision, especially for noninvestment grade companies that's obviously been declining

and tremendous growth in terms of private credit assets means that will continue to migrate out of the banking system over time. i think, look, the focus, though, is this creating new types of risks that regulators need to think about. so i think what the regulators care about is not so much is the banking system competitive, but are we seeing pockets of risk emerge outside of the regulated banking system that could cause issues further down the road. >> in terms of today's conference, you've spoken and heard from dozens of ceos at this point in time. it feels pretty okay. everyone is reiterating an ai guidance despite a lower interest rate environment. capital markets seem like they could be picking up. credit quality seems like it's normalizing but not necessarily deteriorating into any areas of concern. health of the consumer okay. is that kind of your general sense as well? >> i think the key message is that most of these banks feel

pretty good about the economy, heading into next year. so, relative to last year when we did this conference, there was a real question mark about the risk of a recession, about the risk of stagflation. those have already faded into the background. you know, i would say most banks now think that the base case scenario is that you do get a soft landing. that the fed has threaded the needle. brought inflation down but economic growth may dip negative for a short period of time but it's not going to be a traditional recession where unemployment decreases dramatically. most of these banks are feeling really, really good about the path for the economy and a deep recession is now a relatively low probability event. secondly, look, i agree. look, there's a lot of focus on what is going to happen to revenues and net interest income for the banking system more broadly. and look, the two most important things are what happens to net interest income. as you said, most banks have

said, declining interest rates is probably going to be positive, especially in the second half of next year for net interest income, but the second thing is what's going to happen to capital markets activity, especially m & a and ec-m. the tone there is cautiously optimistic. pipelines building, corporates are very engaged, financial sponsors are very engaged and that should be positive for the revenue picture next year. >> if nii is still looking decent. the one caveat, the one anomaly -- and i know we hear from mark maison the cfo of citi tomorrow is jane frazier in her comments to congress tomorrow she says we do expect a recession as a result of a range of macro economic factors. perhaps she is the one kind of anomaly in the group of ceos and their commentary. we'll see kind of what she -- what kind of color she adds in front of congress tomorrow. >> and i think the key thing is what type of recession is she expecting. is this a technical recession

where economic growth goes negative for a short period of time? or is it a true recession where you get a much shorted pullback in terms of economic growth and a significant increase in unemployment. there's a really big difference in terms of what that means for the banking system. >> absolutely. richard ramsdon, thank you so much for your perspective. really important day for you. we appreciate the time. >> pleasure being here. >> all right. guys, i'll send it back to you. >> richard, leslie, thank you very much. coming up, a rock star moment. the long-awaited grand theft auto 6 finally getting its first trailer. some already expecting this could outsell any game that has come before it. more on that ahead. ♪ [ "i'll be seeing you" by the five satins ] ♪ ♪

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crafted just for traders. all so you can trade brilliantly. bond yields are falling today after the job openings hinted at a cooler labor market. rick santelli in chicago. this bond market has gone from wow to more wow. >> yeah. absolutely. and you know, the measurements -- we went over that on a chart yesterday, if you measure the head and shoulders that we violated that neckline right around 4.5, 4.6%, that measurement comes out to around 4.10. so there could be still room to run. even when it gets there, doesn't mean it will stop.

that's the measured objective. the big number today, 617,000, that's the drop in october. job openings and labor turnover, that, kelly, is referring to. look at intraday chart of 10s. 10:00 eastern, look at that volatility. you add in a couple days, well, you could see we took out friday's low. that's the right side and the left side. but 2-year note yields, for example, did not. more inverting on the yield kufb curve on that weaker than expected data. that puts the 10 year right on pace for a fresh three-month low yield close as you see. anything below 417 takes you back towards the last sessions of august. currently, we're close equivalent to first day of sep. but maybe the important issue is november. yes, we have an election in november, which means the last fed fund futures contract and from the election would be the

17th and 18th of september. take that september contract and look at it since it made its all-time low right around the 26 of september. the reason i'm putting it up, the implied rate there is 4.39%. about 100 bases points lower than we're trading. kelly and tyler, back to you. >> all right, rick, thank you very much. shares of uber have more than doubled this year. one reason the stock is being added to the s&p 500. news of which gave it another boost. it's a common trend as stock really does well, joins the index, does less well. some call it reverting to the mean. others call it the s&p 500 curse. let's bring in the wizard himself, bob pizati for a little wisdom. >> good to see you, tyler. uber is finally going into the 17 four years after going public. this is good news for uber investors. all the index investors will be forced to buy uber to include in

the index. bad news for holders of the s&p because it's been a very expensive stock to buy. they went public at may 2019. it's now close to 58. up nearly 50% in the last month. the market capitalization is $120 billion. this would make it roughly the 66th largest company in the s&p 500. it's basically on a par with at&t lows. that's nice company to be in. this speculative rise in companies going into the s&p is a well-studied phenomena, the s&p 500 inclusion effect. it's the tendency of a company stock priced to rise on speculation it might be added to the s&p and also rise when it's initially announced, like it was yesterday or friday. but then underperform the benchmark after it's added, after it underperforms. tesla is another example. it shot up 50% between the time the s&p announced it was going into the s&p in november, 2020, and it's inclusion on december 18th of that year. tesla instantly became the

fifth-largest component in the s&p 500 when that happened. then the stock flattened out and went nowhere for the next year essentially. so here is the bottom line, guys. the act of adding a company to the s&p 500 or even speculating it will be added just before, has the effect of at least temporarily overvaluing the company. this leads to a strong likelihood that it might underperform at some future date. uber set to go into the s&p on monday, december 18th. kelly, we have seen this with etfs. when psycher security was a big thing a few years ago. we had all these new cybersecurity etfs and everybody bought them at the height because the demand for those etfs were so strong it drove up the prices and then of course, subsequently they underperform. it's a pretty well studied phenomenal, kelly. >> it's that season. we get the s&p 500 curse, santa claus rally, all the familiar patterns are showing themselves. bob, thank you. bob pisani. out west to kate rooney.

senator tommy tubervillle lifted his hold on most of the military promotions that he has been blocking for months. he said this afternoon he released all the promotions except for about a dozen four-star generals. the backlog of nearly 400 promotions has been building since february as the alabama senator protested a pentagon policy which reimburses service members for travel to seek abortion care. vice president kamala harris just set a new record. she is now cast the most tiebreaking votes in the senate in u.s. history. she broke the previous record set by john c. calhoun in the 1800s by approving the nominations of a u.s. district judge. billions of dollars are being poured into a high speed rail train connecting las vegas to los angeles. ahead of that 2028 olympic games in l.a. that's coming up. nevada senator jackie rosen says the transportation department will award the project $3 billion. the 218 mile bright line west is expected to reach speeds of 186 miles per hour. it will get passengers between

those two cities in just over two hour. right now it takes about four hours to drive that distance. that is without traffic, guys. kelly, back over to you. >> wow. i also saw some rail approved in my old neck of the woods from raleigh to richmond they're going to put something together. interesting. kate, thank you. >> east and west coast. i'm waiting on that. >> that would be a long trip. super high speed. our kate rooney, we appreciate it. ahead on "power lunch," growing concerns around the future of starbucks. it's lower again today, down more than 7% in a month. we'll ask a former restaurant insider about this and more next. the cloud makes it possible to expand your infrastructure. but to make it powerful enough to connect your data wherever it is, you need cdw and netapp. cdw experts will work with you to understand your needs, then customize a netapp cloud services solution to integrate data management for all your clouds, helping you reduce spend, improve security,

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food, johnny morrison, former ceo of wing stong and now the ceo of new drive-thru concept called salad and go. we'll talk about that in a moment. let's talk about not starbucks so much about the consumer. are consumers becoming more price conscious? one of the things you're attacking with your new startup is you are very price conscious player in this. but are you seeing that? more price conscious, price sensitive consumer? >> absolutely. you've seen brands for the past few years taking a lot of price. and i think consumers are starting to -- >> kchipotle. >> absolutely. all of them. some warranted by supply chain issues they've had. the pressure is there. consumers are saying, look, it's too much. we need a value option. we need healthier food. we need somebody to disrupt this thing and find a way to get what we want, fresh food, good for you food at a great price. >> why don't we talk about your

new startup, currently the ceo of salad and go, which is a drive-thru only salad concept. tell me about the price point. tell me how you do it. you just described your company and yourself as a disrupter in the industry. how so. >> well, starts with making sure that we recognize the challenges of supply chain. and we have built this concept around the concept of a central kitchen where we bring all the produce in fresh directly from the grower. so we're disrupting the supply chain by going vertical. when we do that, then we provide all of that fresh food to our stores, which are only 750 square feet in size. >> wow. >> they are a double drive-thru. it simplifies the labor model built in the store. moving a lot of the challenging part of the labor model for restaurant which is is the kitchen. so we build them first. we build the stores around them. doing so allows us not only to still pay a very competitive wage at $15 an hour starting in our stores, over $20 an hour

inside our central kitchens, but also we can return the efficiencies and the savings through the entire supply chain back to the guest, the customer, and they can get a salad with protein, chicken or tofu, 48 ounces of product, for just under $7. >> yeah. americans go for fast food salad. listen, i wish there were more fresh options on the go don't get me wrong. but you think this concept will work nationwide or be more targeted, tailored? >> i joined this company as a board member while i was still at wingstop. and fell in love with the brand. and what i love the most about it was the passion our customers have for this product. it's not just salad eaters f you will. people who are more prone to -- they like to eat salads. but it's everybody. the price point is the real differentiator. they want healthy options and see something that's affordable for 7 bucks plus a drink, under 8, 8:50 you can't buy a burger, fries and a shake for that, not even close. it's like 15 bucks.

we truly the have demonstrated portability. the brand started in phoenix. we expanded now into multiple markets, las vegas, all of texas, up into oklahoma, moving into california, kansas, soon to georgia. we're moving fast. >> i'm always a little scared of eating raw lettuce. i will be honest, at the fast food restaurants. there's a little bit of comfort in knowing, hey, at least something was cooked and it's not going -- so i don't know if there's a little bit of that ick factor or that's just me. >> i don't hear that much. the skepticism is how do you do and make it so expensive and still using row main and mixed greens and fresh ingredients. the central kitchen is really the key to the safety element of this as well. we're able to control everything. clearly controlled environments. that's hard to do in thousands of restaurants in those kitchens around the country that a lot of brands have dealt with. we have seen impacts associated with disease and contamination and food born illness from that in the past. so, this model completely disrupts that. it changes the game. >> if there is an impact on the

restaurant business or the grocery business from the growth of these weight loss drugs, ozempic, wi gwegovy, mounjaro, we're in a good place because we're selling salads. my more tertiary, are you seeing that? is this idea that weight loss drugs are going to materially affect the restaurant business, the grocery business? is that true or is that myth? >> i agree with you on your sentiment that salad and go that it absolutely will be beneficial to this brand. >> if the phenomenon is real. >> we do believe it's real. we believe it's real because consumers are telling us they want healthy options. they want them to be affordable. there's not a brand out there, i believe, today that eliminates that conflict between accessibility, affordability and wellness. we do that because we provide you with a fresh, high-quality

product, all of our dressings, all of our products are made without preservatives and additives. just the way you would expect it to be and we do it for a very low price. so regardless of whether they have the drug, to benefit a better, healthier lifestyle, or they just choose to eat well and can afford it, finding accessible will be beneficial to all of us. >> what's the scuttle bug on starbucks. the shares are down for 12-straight days. is this just a stock slide that we should shrug off or is the consumer bored i don't know? >> i think the consumer is tired of high prices. that's a real challenge in the restaurant business today. and we're seeing it across the board. the lower end consumer is definitely voting right now. people are trading down. i think we're going to see more of that for sure. i think they're going to trade to better occasions, value occasions, healthier occasions if they can find it. >> will you bring one of these to new jersey, please? >> i will.

we'll get on that. >> i will get on that one of these days. >> call me. we'll set it up. charlie morrison, thank you very much. it's been fun. coming up, we'll talk about a sneak peek. take 2 interactive moving up the release grand auto theft six. "power lunch" is back in two.

well, it's a moment more than ten years in the making. take 2 and rock star officially announcing grand theft auto 6 after the trailer was leaked online on x, in fact. hype around the newest installment leading some to expect billions in sales, but it won't be released until 2025. shares of take 2 are actually lower today as we digest all of this. steve kovach is here with more details. >> yeah. let's talk about the stock move first of all because people are really curious about this, is it

coming out late? is it coming out unexpectedly delayed or anything like that? it's not. if you look at take 2's guidance, they gave back in may for their fiscal year, 2025, it really looks like this game is going to come out probably the first calendar quarter of 2025. so early 2025. that's assuming the guidance will hold, assuming no further delays. but they really gave the street a big hint of when this game is coming out. and there's reason around this excitement. it's because the first -- the previous game, grand theft auto 5 continues to make billions for this company. and when it first launched a decade ago, first day, 24 hours in sales, $800 million within the first three days, 1 billion. >> the first how many days? >> 24 hours. >> i think i remember this. >> no movie does that. >> no movie does that. this is the biggest entertainment property in the history, this one game. now we're getting the sequel to it. 80 million views on youtube. i think we have up there, morn beyonce trailer, more than the

taylor swift trailer. it is -- this is a cultural phenomenon and a huge moneymaker for take-two and studio rock star. >> how is the game done? so you think a product that was now 8 or 9 or 10 years old loses -- >> still making money. >> that's extraordinary. >> it's a lot of online play. play online, play against people, reoccurring revenue for us. >> this looks like real life footage almost. >> exactly. this is a new generation. so this is on playstation 5, the new xbox console. that's why it looks so good compared to the game that came out ten years ago. look, we don't know details about how the game will work. all we have is this minute-long trailer, but based on thisry, based on the pedigree of this company, and what they've been able to do with previous titles and just the excitement around it, you can see what -- you can see the results. >> they're starting to promote a game that isn't going to be out for another year plus?

>> between 10, 12 -- sorry, 12 to 14 months let's say. >> wow. >> and people spend in the game using these credit cards, already. it's very life like, so that's how they're continuing to monetize. >> it's not only that, kelly. this game has been across three generations video game consoles over the last decade. people buy, they may have bought the playstation 3 version back in 2013. then they buy the playstation 4 version and buy the playstation 5 version and play all the online stuff, too. it is just constant reoccurring revenue, always adding new content to it and new missions and new things to do. >> genius. >> also an amazing story. these are epic games. it's not just what we see -- talk about so much the violence and so forth. it has that, but it's also a really deep story. incredibly immersive and open world game that people can spend hours -- >> there's a lot at stake for the next release. >> these guys have the pedigree. again, this is -- they have not failed before when it comes to these main launch titles. some of the mobile stuff has

kind of failed -- not been as successful. but when it comes to the marquee console games, they're all hits. they just -- >> my son's birthday just got playstation 5. and i think either it came with grand theft auto or -- >> the old one. the current one. >> the current one, yeah. it's a big deal. >> they'll sell you the game now for like 10 bucks, but then you buy stuff online. >> you buy add-ones and, oh, dad, i need your credit card. >> when this game comes out, it will probably cost about 70 bucks, just for the game. and then they can add on from there. but these games -- the game itself will get cheaper over time but of course they can add more stuff and keep people. >> we have to leave it there. steve, thanks. steve kovach. still ahead, lattes, lithiums and long-term investments. we'll trade names in the ns.ew fresh three-stock lunch coming up ♪ is increasing as more and more businesses move to the cloud. - so, the question is... - cyber attack!

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time for today's launch. three big movers of the day our trades. chief investment officer at castle rock management. our first, the stock we were talking about a moment ago, starbucks down today, on track its 12 down day in a row.

in need some caffeine, jerry. what's going on? >> tough situation. we're selling it right now. it just doesn't have visibility coming up in the important fourth quarter. the new ceo, there are questions on some other places, and there is better places to take 2025 multiple values than this one right now, and i wouldn't want to wait for that stuff to get over and try to tough it out. >> all right. not waiting around. what about robinhood? they are saying their crypto was 75% higher than november. that goes back to the rocket fuel that used to power this name. it's almost up 9% today. what would you do here? >> this is the mirror image

gets darker! be one of the best talks in the next five years. we just don't want to touch it right now. on the other hand, we have no idea what could happen to robinhood. it could be the next uber, amazon. there's been a tough balancing situation. all that said, you are talking about stock today that has very little priced into it for a bitcoin ntf, a surge in trade now that the fed has eased back. if you look at where this stock was when the fed started raising rates and where it is now , it's dramatically lower, and i really think this is one, if you're going to put some money in the market today for all the changes that are likely in the economy next year, this would be at the front of the pack. let's go to albemarle. shares down 6%, downgrade, piper sadler, lowering the price target to 128 a share. i think it was 140 a trade here on albemarle. >> this is kind of tough kid the stock is down 65%, but think of it this way it if you go out the next five years, it won't matter how many evs for sales in the next quarter. the

names that are attached to this stock right now are the names that have a near-term electric vehicle impact on earnings. albemarle just has the most exposure to lithium of any publicly traded company in the u.s. it is safe, well-managed. they are just in a really soft spot right now. there is too much lithium on the market for 2024, but starting 2025, there's going to be a shortage, and you're going to want to be able to pay for it. >> so that is the bye on albemarle, right? >> yes, it is . dunmore enough to account for what has happened. >> you've got to leave it there. always good to see you, sir. >> happy new year. anyway, eyes on the ipo. lawmakers are ramping up t he scrutiny of china's shein after the fast fashion company file to go public here in the states. we'll talk about it when "power lunch" returns.

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[ "i'll be seeing you" by the five satins ] a bank that knows your business grows your business. ♪ ♪ welcome back. fresh scrutiny over shein's ipo. one congressman is pushing it to block it from going public. it ramps up as we thought it might. predict exactly.

shein has had scrutiny throughout its entire journey. as it's getting more successful, that scrutiny is ramping up, so you've got congressman luebke meyer who said the same to the kind of things we heard, forced labor in their supply chain, how they are avoiding u.s. tariff laws, and how the company's connections to china. it still has a chinese ceo at the helm who we know little about it supply chain is almost entirely based in the region, and with rising geopolitical tensions between beijing and the u.s., this is not a good time to have those kind of connections. >> is there a concern here? this is fast fashion, right? we're yes. we're as they're concerned about ip protection, intellectual property? >> that's been a big problem for shein. >> they didn't care much about racketeering? >> they cared about these human rights abuses and that they are not paying import. gap paid about 700 million in

import duties in 2022. shein and temo did not. >> left the other one . if they moved to slap them, it would move them a different direction. gabrielle, thank you. thank you all for watching "power lunch." closing bell, she says, right now. thank you so much. welcome to "closing bell. " this make or break our begins with the debate where stocks are headed next after the sharpest rally in nearly 18 months. is there steam left, or will things fall apart as the calendar turns to a new year with many new challenges? let's take a look at the scorecard with 60 minutes to go in regulation. there is a bounce for the nasdaq today, down for the past five days. apple, that stock, getting back up of $3 trillion in market cap for the first time since august 3. nice gain there, nearly $4 spit out labette, ,