there are some things that go better... together. like your workplace benefits... and retirement savings. with voya, considering all your financial choices together... can help you be better prepared for unexpected events. voya. well planned. well invested. well protected. welcome to power lunch. along with kelly evans, we are pushing the chips tothe middle of the table in the ai race for a big event this afternoon, how it will compete with n vidya.

we have a live report. and joining the fight against tesla, elon musk calling the strike insane but it could have far reaching impacts for the company. let's get a check of the markets. the dow jones sdraeal average is link clinging to a gain. s & p is in positive territory and nasdaq is back in positive. they have all softened since this morning. >> and business updates today, xauns mobile expects to increase mobile output until 2027. it is exploring opportunities in lithium. it will buy back $20 billion in shares per year. >> interesting to watch that one with crude down sharply today. mcdonald's announcing an aggressive expansion plan, targeting 50,000 restaurants by 2027! up from 41,000 today. the shares are fractionally lower. let's p gin with the big event in san jose. christina is live from the

advancing aievent. >> well, amd launching a highly anticipated ai chip. there are two versions, the x i'm holding for cloud user and the a for super computers. another big launch is they are launching an open store software. the ceo took to the stage showing confidence that the market is growing faster than than previous thought. they are increasing the market from $150 billion to $400 billion by 2027. that is about a 70% average annual growth rate. given the supply issues we saw with nvidia's chips, sue assured the crowd that they would satisfy the demand. sue also made comparisons with of their chip with nvidia's chip. theirs has more memory capacity

and bat band width. they didn't talk about processing but the idea is if a chip has more memory, you don't need as many and it will be chiefer for inferencing. but you need customers. microsoft took to the stage. amd provides chips tothe microsoft pilot. oracle and meta announcing the mi3 # 00 partnerships and that is ornt. oracle and meta already have strong partnerships with nvidia. that pie is growing and big players are entering and considering amd now. >> stick around. let's bring our next guest who is at the amdevent. joining us is dan numen of future group. so the total adjustable market is bigger in a way that is not a surprise. we have seen that reflected in the stocks of nvidia and amd

this year. a question is partly supply and how much of a share of the marg tamd will bow able to get as we head into 2024. >> yeah, it is a very exciting moment. amd has been building up to this for a couple of years. the fact they were able to show competitive products with nvidia should are have been expected. the opportunity we have been referring to is not surprising. seeing the biggest companies in the world, meta, microsoft, up on stage, talking about how they plan to collaborate with amd is a really big deal. this is not a zero sum game. the idea is that it is not just about nvidia. it is about having choice. we saw the alliance announced yesterday. the world wants to have more options when it comes to processing and open source and development. the ai journey is really in its earliest stages. >> i wonder if investors should think about the breakdown in ai

chips, the way we looked at graphic chips in consumer pcs in the past. we saw aws and microsoft both say they have got their own ai accelerators. are those like integrating graphics back in the day? they can do the job to do basics but nail they will not run the latest and greatest games from amd that are coming out, are really the big horse power in the accelerators race? >> i don't know necessarily think that is how it will end up, john. i think the hyperscalers are looking at offering a competitive piece of silicon. we talked about trained models, and there are good economics. we heard lisa talk about economics. this will be a big part of the conversation, how efficient can we train the models. microsoft is coming to market. they are in their infancy. google with its gemini announcement, tpu5, the new

version that will train the newest model, i think that we are seeing a new era for the semiconductor space. there will be a lot of collaboration between the big chip makers and amd and all of the hyperscalers. having said that, they are vertically integrated. we have seen it be successful at apple and it will be successful at microsoft and amd as well. >> i want to go back to what is happening relatory wise. they have been tough without naming companies who are really getting around any restrictions the u.s. is trying to impose on sending the chips to china. how do we expect amd and nvidia, is it an opportunity to be friendlier or do they both need to be clever to keep a big market share as possible? how much is that a father as we look at the forward sales projections? >> it is more of a factor for

nvidia given they get 20% of data revenue from china. that's why they were quick to create a work around chip from china and that's where the threat came from. having said that, nvidia knows they will not get the chip locked right away. the government has to follow a protocol. jenson wong took to the stage in singapore saying they are working with the u.s. government. going forward, i can only assume there will be more restrictions for a lot of these chips. companies need to be cautious and maybe start pivoting their attention elsewhere. amd, we are not expecting any comments specifically about china on stage because their market is smaller than nvidia's. but they said there would be a significant impact in the q4 revenue. that is something to keep a note for. daniel brought up an interesting point too about the market share. i think the big conversation is that the market is still really big. nvidia has a stronghold now and

amd is coming in. for investors looking at which stock to buy, there is still an opportunity, especially when amd plied more in the infrensing world of the large model but in the future is where i get concerned. you have all of the competition from the hyperscalers coming in. >> they will play a significant role. they play the software stacks top to bottom. you can see microsoft was here and oracle was here talking about how they will be deploying. they are working on their own stuff for the reason you and i talked about. the market is so big. they are going to address everything from power consumption and cost requirements. people need different silicon for different work loads and a smart company will address all of those needs. >> thank you both so much on a big afternoon for amd. >> yes, indeed. and it will continue to get bigger. christina is coming back with amd's ceo lisa su on overtime.

>> very good. some of the biggest ceos in banking are testifying in the senate, trying to push back on new rules they say would harm the economy. leslie has the latest from washington. >> the proposal would hike capital requirements for the nation's largest banks. all of the ceos raised hands when asked if they had capital to comply with the new rules but many used prepared testimony to highlight what they see as the pit falls. republican lawmakers prodded the issue further asking how it may impact main street. here is goldman sachs ceo david solomon. >> an increase of 25% capital on the largest banks with lots of individual provisions that affect different activities i think is ultimately mune punitive to economic growth. of course we need to make the system secure. thesystem is in good shape.

we have seen that under stress. that doesn't mean things can't be done on the margins but this is whole sale change that leads to problems. >> also making headlines from the hearing, jp morgan ceo jamie diamond admonishing crypto in this change with elizabeth warren. >> you have been ceo for almost two decades. can you explain why crypto is such an attractive financial tool for terrorists, drug traffickers, and rogue nations? >> i've always been deeply opposed to crypto, bit coin et cetera. the tax avoidance, money laundering, it is somewhat anonymous. not fully. but you can move money instantaneously. it doesn't go through the systems built over through the years, knowing your customers, sanctions, they bypass all of that. if i was the government, i would

close it down. >> close it down. overall this was a fairly civil hearing. no major fireworks. >> remind me, jp morgan, would we say they are in the crypto business at this point? i know we are at a moment where we will see many more bit coins and such. but we always know how he feels about it but i wasn't sure if it is a no go zone for the whole firm. >> i mean, he said in the past he supports block chain in particular but he has also called bit coin a pet rock or it has no value other than being a pet rock. so today's comment saying if he were the government, he would shut it down echoes previous less favorable sentiment that he has had with crypto. so no, not a major business for them whatsoever. >> yeah, he has been quick.

i think warren asked the wrongperson about crypto. there is the answer. les lepicker, thank you. the price of bit coin almost at 45 today. many are arguing the rally is different this time. we will discuss. plus, tesla ceo elon musk scuffling in scandinavia. dock workers joining a sympathy strike with swedish mechanics against the ev maker. we have the story when we return. rms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization. and track market trends with up-to-the-minute news and insights. trade brilliantly with schwab.

the power goes out and we still have wifi to do our homework. and that's a good thing? great in my book! who are you? no power? no problem. introducing storm-ready wifi. now you can stay reliably connected through power outages with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network.

welcome back to power lunch. the dow and s & p are trying to move higher today. the s & p is down about three points. they are all lower for the week and on pace to snap a five week winning streak. the next guest sees a soft landing ahead but thinks slowing growth may make earnings hard to live up to. michael maroney is, this is really the crux of things. those who think earnings are looking good next year can kind of shrug off everything else happening and say it is time to embrace it. others are not so sure. do you have confidence here or no? >> i think it is interesting. earlier this year, it was about beating low expectations when it comes to earnings. we had an earnings recession and markets rallied because results were better than anticipated. my concern is the setup for 2024 is that now we are expecting

earnings growth of more than 11%. i think that the risk of disappointment has grown, even though earnings are likely to be pretty good, i'm not sure they will live up to the higher expectations. how the market reacts to that does concern me. >> michael, is 2024 finally the year for bonds? >> i'm not so sure. i do think that bonds are more attractive. when welook at the yield that you are receiving for the interest rate risks you are taking, the duration you are taking, it is more in balance than it has been since 2009. it is a much more attractive picture for bonds. we still see most investors conservative on the short end of the curve with treasury bills and short maturities. it balances out a little with things like investment grade corporate bonds where i'm taking on a little more credit risk and a little more interest risk but not taking on too much. and yet the yields are similar to what is on the short side of

the fixed income portfolio. that seems to be the right balance if you will for fixed income allocations as we head to 2024. >> how much danger is there for the retail investor in watching the price of bonds themselves too closely and not thinking longterm about the yields? so many retail investors have tilted much more towards stocks and equities over the past decade. >> it is true but they have been rewarded over the longterm for taking on the additional equity risk. i think the set up is for that to continue over the longterm. in terms of the opportunity for bonds, it is more compelling now than it was over the last decade or so in terms of income and total return. so we are seeing fixed income allegations creep up. i think one of the more interesting things is that when

income was scarce, it forced investors to take a lot of risk in forced income that they may or may not have been comfortable with. now with income more plentiful, the allocations tofixed income remain challenging. most people have gotten the interest rate wrong this year as rates continue to back up. that's why we think stable income is kind of the way to go and that balance, that bar bell between conservative fixed income on the short end, and to your point, adding some maturities, adding some fixed income in terms of the intermediate part of the curve. >> amazing to look at the 10 year and how far it has fallen in a quick period of time. so you are interesting in hedging against a lot of the risks with gold. the outperformance of gold lately, is that partly what is driving your interest? or does that kind of make logical sense to you and it keeps going? >> i think what has been

fascinating about gold this year is that interest rates have climbed. they are off the highs of october but interest rates are up this year. dollar has strengthened somewhat unexpectedly this year, up until recently. these are two traditional head winds for gold. the price is in the teens. it is overcoming the head winds. now all of a sudden, yields are falling as you pointed out, ten year treasury yields. the dollar will weaken as the feds end the tightening cycle. that is starting to happen. all of a sudden, you have a more attractive backdrop for gold at a time when the outcomes across a wide range of things are wider than normal. geopolitical risk, economy, inflation, feds, earnings like we talked about. we think hedging the risks with a small gold allocation makes sense. in 2022, spot spries on gold was flat and stocks and bonds were

down. they are competitive with stocks considerably. we think the backdrop remains attractive in 2024. >> all right, thank you. coming up, it has been a mixed back for the ipo market. birkenstock tripping in its debut. instacart initially rolling the first day and losing gains soon after. arm outwrestling expectations. what is the formula for a successful ipo look in the year ahead? we will discuss next in tech check. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪)

[holiday music] ♪ for people who love their vehicles, there is only one name on their holiday list... weathertech... laser measured floorliners that fit perfectly in the front and rear... seat protector to guard against spills and messes... cargoliner, bumpstep, and no drill mudflaps to protect the exterior... and cupfone keeps phones secure and handy... [honk honk] surprise!! shop for everyone on your list with american made products at weathertech.com...

welcome back to power lunch. the adp rrt is the latest sign of a cooling jobs market. we get the government jobs data on friday. let's get to rick in chicago with more. >> yes if you look at the job charts in july of 2021, the high water mark of 938,000 jobs, you can see we have seen a drop in job creation. i fully suspect we will see the same thing from the bureau of labor statistics on the big november jobs report on friday that as you referenced will

include government hiring. let's look at twos and tens on one chart. at 8:15 eastern when the data hit, and by the way, 103,000 is the second smallest job creation amount inadp going all the way back, yes, all the way back to the july 2021 and two year note yields made their note on that number. but look at tenure going lower. when you expand to two day chart, it jumps out at you how much the curve has been reinverting. right now at a 459 yield on twos, we are year unchanged off a basis point. ten is hovering at 412 and down 5 basis points. this dynamic reflects the slowing of the u.s. economy. and many have talked about the dollar index. have you looked at it letly? it is basically unchanged on the

year. european yields on twos and tens are lower on the year than at the end of the last year. our yields are proching that but still a bit higher as the world handicaps how small a growth swap down we will see for 2024. kelly, back to you. thank you very much. bigger move today may be the price of oil, below $70 for the first time since june. pippa stevens has more on the big drop. >> we are not below 70 and there is nothing to like. we saw a draw on u.s. stock piles but the market is overlooking that. there is not a lot of belief in opec and their ability to cut the output with the voluntary cuts. officials in saudi arabia and russia tried to assure the market it will happen but as the broker put it, it is falling on deaf ears. saudi arabia cut the official selling prices for all grades of crude starting in january which is pointing to weak demand. today is not a good day for an energy company to announce an

update with oil below $70 but exxon did this morning and the stock is lower. a couple of things, they increased the buy back to $20 billion next year up from $27.5 billion. but they also raised capital spending. this year and next year is steady. we have a chart and you can see it is well below the precovid-19 era. they expect the range to be as high as $27 billion. a lot of that is thanks to increase in spending for low carbon solutions business. they bumped that up from $17 billion to $20 billion. the street doesn't believe it will be profitable for exxon. they said they have to convince investors on the merit of the low carbon spending. the market is skeptical of the returns on capital investment. that seems to be hitting the stock here. >> you could say if anything that exxon is outperforming crude. and maybe that is what all of

those moves are taking. >> that is the other thing. energy was the top sector for the pop two years. and no sector has been the best for throw straight years. if you did well and probably taking profits, they are still paying a healthy dividend and buying back stocks. the expectations for pioneer is at $60 they still have wiggle room before they can revise the estimates. >> great point, thank you. >> tomorrow we will hear from the exxon mobil ceo daren woods. now let's get to bertha coombs for a update. >> an assault weapons ban put forward by chuck schumer did not pass. it would have reauthorized a provious ban in 1994. the action came as the united states broke the record this past weekend for the most mass

shootings in a single year. according to a tracker run by the associated press, usa today and northeastern university. israel's military confirmed the forces are in the heart of khan yunis for the first time. the area is thought to house hamas leaders but is also crowded with civilians. many of them fled there at israel's urmging to avoid bombardment and battles in the north. a life sized chocolate willie wonka made a debut today in london's square. it is in the likeness of actor timothy chalamet who is reprising the role of the candy making boss in the upcoming film. the statue's sculptor said it tock her and the team more than five weeks to complete. sweet, jon, back to you. >> a lot of people would lake to

have a bite, thank you. ahead on power lunch, the price of bit coin is up 25 % in just a month, more than double about 158% in a year. does this rally have staying power? we will discuss, next. ♪ (cheery music) - they get it. they know how it works... and more importantly... it works for them. - i don't have any anxiety about money anymore. - i don't have to worry about a mortgage payment every month. - it allowed me to live in my home... and not have to pay payments. - [narrator] if you're 62 or older and own your home, you could access your equity to improve your lifestyle. a reverse mortgage loan eliminates your monthly mortgage payments and puts tax-free cash in your pocket.

call the number on your screen. - it was the best thing i've ever done, and- - really? - yes, without a doubt! - just like these folks, aag can show you how a reverse mortgage loan uses your built-up home equity to give you tax-free cash. - it's a good thing. - why don't you get the facts? like these folks did. - [narrator] call right now to receive your free, no-obligation info kit. call the number on your screen.

first time i connected with kim, she told me that her husband had passed. and that he took care of all of the internet connected devices in the home. i told her, “i'm here to take care of you.” connecting with kim... made me reconnect with my mom. it's very important to keep loved ones close. we know that creating memories with loved ones brings so much joy to your life. a family trip to the team usa training facility. i don't know how to thank you. i'm here to thank you.

swedish mechanics on strike getting an assist from neighbors. elon musk has been staunchly antiunion. this fight could have big impplications. why could this situation blow up? >> it could blow up because right now you have just this one group of mechanics in sweden who are asking tesla to recognize their right to organize as a union. they are not getting to the part where demands are a part of what they are asking from tesla. tesla is not even acknowledging that at this point. now you have other labor unions in sympathy with their counterparts in sweden who are saying, maybe we will not deliver tesla models to sweden that are scheduled for transportation there. that is the development there.

there are norway transport workers who are saying later this month, they may stop transporting tesla models to sweden. in the grand scheme of things, those are two small markets. they are important markets in europe but they are are very small in terms of volume. it could blow up into a bigger issue because tesla has the only nonunion final assembly plant in germany. there is no sense it will organize soon. but if this continues to mushroom and gets more and more support from other labor unions, you know how this could go. >> how does it not go there in scandinavia? >> one thing is tesla could say we recognize your right to organize. elon musk has been clear that he does not believe labor unions are in the best interest of the company or in the best interest of the workers. he points out that tesla has given the workers better pay through stock options et cetera and there is no reason to be a

part of a union. so let's say they recognize the mechanics in sweden. this could all blow over and be the end of it. the flip side of this is that if they don't recognize the right of the union to organize, what you see in norway could happen in other countries and then it starts to spread from there. >> how big of a blow would it be if parts or all of the german workforce unionized? >> it depends. ultimately, they are not going to be uncompetitive but elon musk believes that a uniized work force is not as competitive and not as helpful to the bottom line as what they currently have in germany. so if they organize and they have to negotiate a contract and the costs go up from there, tesla could argue, we are not as competitive within a market that by the way is becoming brutally competitive in terms of electric vehicles as the chinese evs which are flooding into the market. that is changing the dynamic in

terms of electric vehicles . >> this may be a ridiculous question but why would musk run such a high risk in the first place of putting the factory in germany which has had stronger labor unions or europe more broadly? >> well, europe overall. anywhere in europe, he was going to run into this issue eventually because all auto plants are unionized in europe. it is not that he could have avoided this by putting it in a different country other than germany. germany is the largest auto market in europe. evs are growing quickly there. the factory outside of berlin has been very successful for tesla. it was a smart move for tesla to put a plant there. eventually, everyone knew that this is one of those situations that may ultimately develop. >> yeah. and here we are. perhaps at the beginning of it and perhaps not.

depends on how the scandinavian thing goes. thank you. another 52 week high on bit coin today hitting almost 45,000. as if previous rallies, it seems everyone wants a piece. here's a look at how people want to get in on the action and kate has more on what is driving the rally. >> there is a lot of excitement for bit coin etf which tracks the actual price and future price. there is a lot of hype that the fcc will approve this. there are nine applications from block rock. and the xoitment is around the biggest asset energies in the world getting involved. it is seen as a stamp of legitimacy and approval. it would theoretically expand access to bit coin. there is another dynamic. that lit the fuse and that's what got some of the price movements above 30,000. there is another dynamic which

is leverage. especially the markets in asia, you get a short squeeze. people bet against bit coin in this case. then you see massive liquidations get wiped out. that is most likely what we are seeing the last couple of weeks or so. you saw the price climbing to 40,000 and then a massive spike to almost 45,000. that is more likely one of these big whales in the markets liquidating a position versus retail interest. you saw about $90 million of liquidations alone. that indicates that some of the bigger institutional players in these markets versus retail interest which has still been pretty muted. it has resin in the last month but it is far below what it was in 2021 and last year. >> all right. thank you. bob, how do you see it? >> look, number one, there is no doubt that interest in the bit coin etf is driving this up

right now. here's the problem. we have seen the phenomenon before. the prices often go up in anticipation they are going in. people try to front run the price and move it up a bit. we saw this with cybersecurity etfs that were hot and drove up the price and then subsequently underperformed. i'm wondering whether or not this is the demand phase of this. we will see what happens when the bit coin etf and it is probably inevitable we will get a bit coin etf. gray scale has funds that are closed in and trading at premiums of discounts to various crypto assets, trading at a discount to bit coin recently. what is interesting is there is a limited amount of bit coin in these funds, 640,000. they don't change that number. so people who are piling into

that, the price has to change but the trade is at a discount or premium to bit coin. this is the problem with the funds out there. if you have a bit coin etf, you can adjust how much bit coin you have in the fund and have it track the price of bit coin accurately. if there is any reason to finally figure out a way to get the bit coin etf going is toeliminate the problems with discounts and proemiums with the closed in type funds out there. >> we see shares of robin hood popping. this seems to be again, back to the future, it is 2021 all over again. any time bit coin is up, robin hood is up too. >> it feels like it. one of the things that is helpg robin hood is they showed 75% volume growth, crypto volume on their platform. analysts are pointing out that a cryptoetf would disproportionately benefit robin hood. they have a younger trader and

bit coin offering. if there is a bit coin etf, you have to trade it on a brokerage platform. robin hood has been up 9% today. coin base has seen some trading volume growth but only around 65% versus 75% for robin hood. coin base is the custody provider but anything that would threaten their trading volume, anything that would threaten that retail trading that they get about 3% of a fee on that is not seen as good news for coin base. the shares are flat there. >> remember, robin hood gets paid on payment for orders. they would benefit. the etf would trade on change obviously. >> great point. >> bob, kate, thank you. google today unveiling details around the largest language model. we will get a live report ahead in tech check. power lunch is back in 2. inspired and engaged.

that's because school districts consulted with cdw to design modern classroom solutions with preconfigured hp devices making education immersive, accessible and secure. now, when researchers study elephants, kids learn from 9000 miles away. make amazing happen. hp and cdw.

welcome back. google unveiling a long awaited new details about its large language model gem noy, not to be confused with the crypto gemini, ramping up the race

against microsoft and open ai. deirdre bosa has the story for today's tech check. >> rather than tell you how gemini works, i thought it would be better to show our audience. have a look. >> see pink and green yarn, how about aing dragon fruit? a green cake with a pink heart? >> how about these colors? and maybe show me some animals? >> okay. now i see blue and pink yarn. how about a pig with blue ears or an octopus? >> you get theioid. this is google's next iteration of generative ai. it is multimodal. it it recognizes not just text but images and sound, and video as well. that's what help build this model as well. it is a version that open ai has been offering for months. google says theirs is more powerful than any other ai system on the market. six months ago, the announcement may have moufbed the stock but today it has not done much.

even down the stroet in san francisco, attendees were more focused on ai applications and latest advancements. i asked the head of the bank if gemini was generating buzz. here's what she said. >> the biggest topic at the conference so far has been on what are the applications of ai and what is the real investable impact. the two biggest things we are hearing is where does args i really drive efficiencies and where does ai drive an accelration in innovation. that is true in not just technology impacting everythingm every vertical, healthcare, edn, you name it. >> it stands in contrast earlier this year when google announced search labs which was not launched yet. but just the idea that search could incapsulate so much more sent shares up 4%. at the top of the hour, there

was amd's announcement and massive step up in the total addressable market. the ai halo effect may have given the stock a bump earlier in the year but it could be telling us now that next year investors will be looking for more in the ai announcements. it will take more tomove the stocks of these companies. >> there is a lot built in. alphabet, google stock up almost 50% since the start of the year. it was around 90 and now 130. i wonder how much google is talking about the ecosystem around the models. so much of what amd and nvidia has been saying lately is the partnerships building buzz around the technology. >> and every ai announcement from the hyperscalers has included jenson wong from nvidia. and that is no different from google this year. a nod to the ecosystem. they togged about their tpu

chips which google is developing as the alternative to the nvidia ones. in terms of the ecosystem, they are trying to do something similar which is work with the different layers of generative ai. today was not different. >> deirdre, thank you so much. still ahead, home sweet home, shares of total brothers as the mortgage rates pull back fr 2om0 your high. we will have three stock lunch when we return.

it's time for today's three stock lunch where we look at three big members of the day and it's about earnings here is the president of mgp wealth advisers. welcome. let's start with campbell soup. lowered sales and profit last quarter but shares her up nicely. the company may outpace estimates for 2024 earnings per share. what would you do with the stock? >> hi, kelly. this is a stock that's getting a bounce because the price increases that campbell's passed through improve profitability but this is one i think i'm skeptical about. when

we dig into the quality earnings we see volumes were down about 5% because consumers were sensitive to price. and also the company is increasing its marketing efforts to capture share, which gives us some pause regarding the concerns about profitability moving forward and maintaining these levels. i think there might be better opportunities outside of campbell soup right now. >> may be toll brothers. shares or higher on cue four earnings but the homebuilder forecast is solid demand for next year and encouraged by lower mortgage rates. can you buy it or is consumer demand too much credit >> unfortunately i think there is uncertainty in the space so we are bearish on this one as well in the short term. you think about the push/pull between demand and supply. toll brothers brings luxury homes to market at a pretty reasonable price point, but we know construction costs are higher, but we also know consumer households, savings

i'm doing and at the same time and point are fickle on mortgage rates. rates ticked down today which is boosting the stock and some of these expectations, but we think there is uncertainty regarding rates next year and consumer spending. i think there's better opportunities outside of the homebuilder sector. >> ensures have doubled this year already so that's interesting. let's move to sentinel one having its best day ever. they raise the annual revenue forecast on robust cyber security spending? 17% pop here for s. what would you do? >> this one i won't be a complete grinch for the holidays. this is a second tier we like in the cybersecurity space and sentinel has a competitive cybersecurity product that focuses primarily on enterprises and businesses, while still trying to increase penetration to the consumer. as you mentioned, the not dynamics of earnings today were encouraging. we saw the margins improve 8% year-over-year reaching a new

company record of 79%. and i think that's a favorable sign moving forward. and the other thing to mention on a price to sales perspective, it trades around 7.7 times, which is quite a discount to its rival, proud strike, from evaluation point of view. when you think about the headwinds, i'm sorry, the tailwinds there for the space, cybersecurity, generative a.i. our products this company is bringing to market and talking about how it will improve the efficiency and effectiveness and analyzing threats and improving profitability moving forward. for us, the cybersecurity sect is definitely an allocation we consider for someone's growth portfolio. >> give us a couple of the filters you're using to evaluate tech stocks.

many people say take away from tech entirely. that was wrong. heading into next year, how do you decide what is worth buying? >> that's a great point. you have to be selective at these valuations. it's a combination of looking at the momentum of hat's happening regarding demand for a service or product that with these tech companies bring to market. i think you do have to be cognizant of price to earnings on the forward p perspective. a company that is narrowing its losses, look at things from a price to sales point of view to make sure you're not overpaying for growth. >> all right. thank you. >> thank you. coming up. below the belt. amazon cutting fees for merchants showing lower-priced apparel. is that a shot at chinese upstart shein or acknowledgment of a threat to the e-commerce empire. we will discuss when we return. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal,

on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪)

less than three minutes in the show and several more stories we need to know so let's get to it. the supreme court we hear a kiss of the legality of a tax targeting owners of foreign corporations, but the heart of the issue is what counts as income. the decision could change tax law as we know it and this comes as there is a push to tax

the ultrarich on their wealth come even on unrealized gains. to me, income is what you actually have and that your home equity. >> does not seem like a supreme court is leaning towards anything to broaden their statements based on how the questioning went yesterday. maybe they do something narrow here and leave that question to be answered. as you know inevitably will have to be. apples i message has reportedly dodged a major regulatory set back in the eu. according to bloomberg, lawmakers found the service does not fall under its new digital market tax which would require i message to be compatible with rival services like what upper facebook. they were the poster child of what this law was supposed to be about. why are they suddenly going to be exempt? >> i think the eu regulators was so happy they got uspc from apple that they would like, okay. >> we will see if this is confirmed and if it happens. it seems to undermine have the point of why they were doing it

in the first place? strange. >> amazon is cutting fees for online merchants selling clothing below $20 and could be a challenge to shein, which filed an ipo here in the states . this affects how much money the sellers get to keep in this transaction. >> you have to do something. they're losing share in the real question is whether regulators step in to try to change the way shein is dodging these duties that have enabled it to sell cheaply. that's the space to watch. women do not miss the amazon ceo on a special mad money in seattle tonight at 6:00 p.m. eastern taylor swift is the time 2023 persevere and earned the title of most intriguing person of the year from people and was number one on the forbes list of most powerful women in media and entertainment. her tour has taken them billions in ticket sales and this may be the first time i vehemently agree.

they make i agree. they had the passover walton. >> it could've been chat gtp. that would've been a clever pick . >> clever but there's also a war in the middle east. many things if they want to be high-minded to go but taylor swift is very powerful. >> it's her world and we are just living in it. thank you for watching "power lunch". >> "closing bell" starts now. welcome to "closing bell" . i'm scott wapner. we begin with the best versus the rest pick the best being big tech which has rallied the most of this year. the rest, that's all that house and picked the question is a lasting rotation underway to those once unloved areas? we ask our experts over this final stretch. your scorecard was 60 minutes to go in regulation looks like this. the russell is waiting today. caps s