♪ ♪ ♪ welcome and good afternoon, everybody. welcome to power lunch. alongside kelly evans, i am tyler mathisen. coming up, we are getting ready for the jobs report tomorrow. some signs this week that the jobs market may be starting to cool just a bit. so what to expect tomorrow and what it could mean for the markets, kelly? plus, some big ceos on cnbc in the past 24 hours. we will hear highlights from

amazon, exxon, and amd. we will get trader takes on stocks. , first let's get a check on the markets where you can see the dow close to session highs, up 88 points today. it is the laggard. i simply up eight tenths to -- and the nasdaq surging 1.3%. bond deals are happening the tenure for around 11 last check. shares of walgreens boots are leading the dow, up 7%, contract for their best day since march of 2020. the stock is still down nearly 40% this year though, its worst year ever. that is giving the stock very attractive 8% dividend yield. you can see it higher in fact than the stock move today. and the big drug companies are mostly lower today. the white house once again targeting drug outfits saying big pharma makes record profits while americans struggle to afford the drugs they need. let's bring in our correspondent to explain exactly what the biden administration is proposing. >> reporter: in some ways, it's doubling down on the inflation reduction act, in the price negotiation part of that.

the biden administration is asserting the right of the government to seize drug patents of high priced drugs that were developed with taxpayer funding. the 1980 by dole act paved the way for universities and small companies to commercialize discoveries made with federal funding. from cell gene therapies and medical technology to things like google and some quantum computing. now the white house aims to use the march in provision of that law to take on high drug prices. cancer patients have repeatedly petitioned the government to use that marketing provision on -- prostate cancer treatment with a list price of more than $150,000. the government has repeatedly refused. they say they should allow others to produce it to bring more competition while the bipartisan law allows margin when a patent is allowed to lay dormant. it has never been used to break a drug patent on the basis of price. senator elizabeth warren applaud the move saying it's time to use that tool to bring down costs.

>> when there is no competition in a market, then that falls hard on people who need that drug. it also falls hard on taxpayers who end up paying for it through other government programs. and -- has been in the law for a long time. >> reporter: the pharmaceutical industry group basically argues that march in was never intended to be a government price setting policy, and to do so will set back research by more than 40 years. >> so how would this march in working a practical case? in other words, there is a drug that was developed in part with federal money. it is now being sold at a very high, some would say unattainable, price for consumers. the government would march in and say what? unless you lower the price two x, we are going to take the patent rights of that drug and collect the profits from it. how? >> ostensibly, that is how they

would work. they do not give an exact example of that, but i was joking with someone, with you earlier, that this is going to be the full lawsuit employment act. there's certainly going to be litigation on this because you have patent law -- >> have they decided to do it or decided to think about doing it? >> reporter: they have proposed this. they are going to take comments on this and then issued the final rule later. for the moment it's really about just communicating that they are looking at every way possible to reduce drug prices. >> very, very interesting in the -- political year. obviously, lowering drug prices is a very potent issue. bertha coombs, thank you. let's turn now to the potential companies that could become targets of this new plan. let's discuss whether the government can really enforce those march in right. joining us now is jared hold, health care equity strategist at missouri low, and evan segment, biotech analyst at bmo

capital markets. welcome to both of you. jarred, let me start with you. i think i just described the sort of process that could be at work here. on the one hand, you would say, how would the government get away doing that? coming in and asserting they will take over the patent, if that is what they are saying they are going to do, unless you lower the price. on the other hand, there is a sympathetic side to this that says, hail, if i the taxpayers have paid to develop this medicine. i've paid a lot of my tax money that has gone to that, and now the pharmaceutical company is charging $140,000 for treatment of a process late -- prostate cancer drug? that doesn't sound right to me. and they get to keep all the profits? i'm getting stuffed at both ends. >> tyler, thanks for having me. i appreciate it. i think this is a bit of a slippery slope obviously for large kept farm at biotech.

these martian rights on the positive end of the spectrum or not really limited to this one sector. i think it's much broader. it's going to go into the technology industry and many others. >> technology, defense, whatever. yeah, sure. >> so it's much broader in scale than just this one industry group, you know, which i think is good, because we are always talking about how pharma seems to be the target of the government every other week. as i look across the space with respect to large cap pharmaceuticals and biotech, i'm not really sure that there are that many drugs that have been cofounded or co-developed with material government funding. and if that is right, then maybe the list of drugs that the government is going to go after in this case, in order to secure the patents back, is not going to be so vest. and if that is true, then maybe

it's not a huge issue, but to bertha's point earlier, it obviously adds on to the i.r.a.. and from a political standpoint, it is clear where the government is at here. >> evan, let me ask you, is this essentially, jared just said it seems pretty political to him, is this essentially political theater that is going on here? that's number one, and number two, it would occur to me that one of the targets here, or a possible, one would be pfizer and moderna whose covid vaccines were heavily financed by the [inaudible] >> there's a few questions there. first of all, is it political theater? we are heading to in election years so i'm sure there's posturing around drug pricing. biden got the win against the former sector with the i.r.a. and that is continuing to theme. in terms of pfizer and moderna, i don't know if pfizer took much funding upfront, it was somewhat funded contracts, but really the nih does have a role

in helping see these technologies poses these pharmaceutical companies put billions of dollars at risk to develop the drug. you don't want the nih developing drugs. they will never get anything done. >> evan, who's at most risk of potential restrictions of element? are there companies that come to mind? biotech companies? how would you think about this as an investor? >> if this were to actually happen, i think the entire sector could be at risk because who knows at what level the nih are kind of the march in rights would play. so early technology like the basis of mrna with the vaccines? would it be part of a antibody drug conjugate? it could be one of the appealable, maybe in a therapeutic space like cancer drug manufacturers, inflammation drug manufacturers. happy, potentially merck bristol. >> so what should those companies that do? what is anyone going to do other than kind of wait for more details and would we expect the supreme court to get involved at some point or no?

>> i don't know if the supreme court gets involved, but i'm sure if this went through there would be several lawsuits. i think the companies need to do with -- keep doing what they are doing. this is only a proposal. this is not necessarily going to happen, but it really takes into account whether or not these companies want to use the nih to get funding to help bring forward some of their efforts. they might choose not to do that and do their own stuff internally, and take them completely, which would be a shame because there's a lot of good research coming out of the nih. >> jared, are there companies that you follow that you think would be more vulnerable to this should it happen? >> you mentioned pfizer and moderna earlier. i think those are two that come to mind right away given the vaccine funding over the past several years for covid. really have to go and look and do the work on the discreet line items, company by company, to see where the nih has been funding. but i really don't expect it to

be over the material. you know, my view at this point is that it's more of a storyline. another negative narrative to add to the i.r.a. in front of an election year, which is already possibly confounding and complicating a sector that has been, you know, not the best, to say the least, over the past year or so. >> indeed, and jared, just to put a point on it then, does it make it uninvestable until 2024 until we get some clarity? >> it seems like farm, as a category, obviously other than a couple of -- that have been involved in the obesity space that we've spoken at length about all year. the multiples are very low, at multi year lows. the stock prices are at multi year lows. so i'm not really sure what takes the category higher other than, you know, a value trade, which is, you know, goes across industry groups. you know, hopefully at some point this narrative quiet down,

but given the fact that the democrats seem bent on introducing new complexities into the sector. and then you've got the gop on the other hand that has been fairly active in terms of, you know, how they have been politicizing the company. it seems like the setup is not easy going -- >> does the cvs, the moves that they are making maybe responding to the cost, plus drugs and the rest of it, in the prescription drug space, instead another headwind for the sector? is it a tailwind? how should we be thinking through that as well real quickly? >> i think we want visibility. i think the street wants to have some sort of clarity on how companies are making money, what the pianos are looking like and how they are derived. to me that's a net positive, even if that means you might see a bit of degradation in terms of earnings. the stocks are already trading so low. i feel like better visibility in this case might be a positive. >> i think that makes a lot of sense. gentlemen, thank you both. we appreciate it today.

jared holz and evan seigerman. still to come, jobs report on deck tomorrow. major fed decision next week. investors hoping the data could put an end to any feature hikes. we will get insight from the ceo of zip recruiter. plus, some major ceos sounding off on our network lately. imdb -- we will give you the highlights in three stop lunch coming up.

welcome back to power lunch, everybody, as we countdown to the november jobs report.

it comes out tomorrow morning at 8:30 in fact. data this week shows a cooler labor market. these are the contextual numbers we look at. private payrolls up by 103,000, but that missed estimates for november, which were about 30,000 higher if i recall correctly. initial jobless claims are today, 220,000. continuing claims hit the highest level in two years despite these numbers our next guest says we could be in 14 upside surprise tomorrow. dean seagull is the ceo of zip recruiter, a leading online recruiting marketplace. good to have you with us. what do you say an upside surprise tomorrow with some of the other numbers tend to indicate a slightly cooler job market? >> to be very clear, if you look just at ziprecruiter job listing data which you can see is that it continues to decline just like it has persistently declined for the last 18 months.

we are all the way back where we were pre-covid, and we are continuing to fall from there. however, the end of the year is a really unpredictable time to predict what the -- will say when it comes out with its jobs report, because there's so much seasonal hiring at this time of year. often a single job posting can in fact be used to hire 100 or hundreds of individuals to fill a role for the next few months. >> the seasonal hiring is, i guess, reasonably strong in retail, but maybe even stronger in service oriented business like restaurants and hotels, et cetera. >> yeah. i think the real upside surprise that everyone is experiencing right now is that consumers continue to spend. they are particularly interested in spending on experiences. so whether you are talking about restaurants or event venues or any sort of tourist opportunity. those are areas where a lot of money is still going into the economy and as a result the

businesses are forced to staff. >> do you see this as a time where the federal reserve needs to be mindful? their focus has been on keeping inflation down. is now the time they need to start glancing in the mirrors and seeing where the employment market is? >> i mean i'm going to say i sure hope so. if we look at where we are relative to a year ago, you have seen wages begin to flatten. we see the number of new job postings that have a signing bonus as part of what they are offering down 25% from a year ago. and zip recruiter surveys of our employers are telling us that over half of them have lowered the salary of at least one position that they are currently advertising for. so it definitely seems like the work the fed has done has served its purpose. i think we would all like to

see interest rates stabilize and ultimately decline. >> i think we know where the strongest sort of secretaries are like health care, education, tourism, hotels, restaurants, and someone had so far, but i want to ask a different kind of question. if i am advertising for a job and i do not include in the description of that job the option to spend some of the time remotely, how much of a disadvantage competitively and my putting myself in? >> i mean a massive disadvantage. the world has fundamentally changed and it's been long enough that i'm going to say this is forever now. clearly, it is a hot topic, to discuss whether or not we should compel people to go back to work. the currently employed people are voting with their feet. what you see is higher satisfaction among those who are working for companies that allows some sort of hybrid work styles. you see the job postings that

say they can be done remote get three times as many applicants as those that insist on an in office work policy. this is a sea change in what we have experienced overtime. if you even compared the number of job postings on ziprecruiter today compared to a year ago, you will see those four times as many job openings that offer either hybrid or fully remote work in the job description. so this is working its way through our economy. any advantage will be taken by employers. >> remote is key here. brian, kareem, nikki, you can all go home at work remotely. get them out of here. that sounds good. ian siegel, thank you very much. we appreciate your time. >> thanks for having me. i just saw a sea of arms in the air. >> they are out of here! but you've got to stay the, mr. steady cam. >> stocks are rising today with the nasdaq jumping more than 1% to be positive for the week. the question is will tomorrow's jobs report gave the greenlight

for this rally to continue? mark we she has answers. he's chief investor at -- mark, what do you think? we just heard from zip recruiter. what is your spidey sense telling you? >> i would have to say, given the fact that we have seen slowing in all the data aforementioned gets talked about, and we have of course noted the same, it would be surprising to see a particularly strong jobs report. in fact, that might unnerve investors who kind of bid on the fact bad news is good because more likely than not it feeds the narrative that has obviously undertaken the rally and equity prices that continues to put the fed on hold, if not even bring forward the prospects of rate cuts coming sometime in early 2024. so i think we have seen some diminishing in the pace of job creation. i think it will still be positive nonetheless. the shock on the other side would be a negative report, which would be equally unnerving. it would perhaps put forward the thought that a recession is near at present.

i expect the number is probably going to be around consensus, 180,000 or so plus or minus, and that should be sufficient to keep the inertia behind the economy. at the same time, not be so strongest worry investors that the federal reserve is going to have to state higher for longer, or in fact re-option, if you will, rate hike in one of their forthcoming meetings. >> i want to talk about the rotation from the magnificent -- magnificent 72 elsewhere. what would you say about that? it set up nicely for 2024? does it become a headwind for market gains? >> i don't think it's a headwind. obviously, this rotation is going to have an influence on the capitol -- capitalization weight of the s&p 500. because the magnificent seven represent almost 30% of the index, but that does not mean that other sectors cannot perform. so we look at the broadening that the participation, particularly among industrial, kinase, just to name a couple, that are more sizable in terms of percentage waiting in the

s&p 500. there's a lot of opportunity there to sort of nest around and find stalks, or participate more broadly in what might be some leadership coming of the -- still however much will depend on the evolution of the economy. the key there is the job market. yes, it is encouraging. it's also encouraging to see small -- participating. we embark on the prospects of a santa claus rally and the january effect that has now been pulled forward into december. nonetheless, if it continues after the first of the year, then i think we need to obviously respect its move, and the possible aversion or recession means it could continue. >> quick thumbnail on to stop she would like which i would call defensive growth. >> not all that dissimilar to our take, tyler. waste cycling company, next to waste management, --

industry of about 50 billion. up a lot this year. nasdaq like return so far, but nonetheless some nice growth profile associated with it. garbage tends to be a counter cyclical business. now they are getting into other areas. you know, that's more green related, and it's a little more cyclical in nature through the acquisition of u.s. ecology. we think the prospects remain right in an industry that's almost a duopoly. >> all right. 15 seconds on met traumatic. >> as the aforementioned guest on health care talked about, nobodies like health care now for quite some time. it is reflected in medtronic's evaluation at 15 times, but it has a 3.5% dividend yield. i think their prospects ultimately, because of the secular effect of aging demographics, is going to work ultimately to its favor. so high quality company that can be involved with a handsome yield, and tuck it away until there comes a bit back to health care, particularly if in fact we do see some slowdown in economic growth in 2024.

>> all right, mark luschini, always good to see you, sir. >> thank you, tyler. >> further ahead, a drought forming disrupters. private investors always looking for the next company to go public, but with growing uncertainty about the ipo market cash could be drying up. we will talk about that. plus, mexico beating out china to become the u.s. top trading partner. a sign that manufacturing is moving away from asia. we will discuss when power legitimate earns. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly.

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everybody. we have talked about the jobs report tomorrow and the potential market reaction to what. let's go to rich santelli in chicago for the picture ahead of that jobs market. high, right. >> yes, tyler, i feel like tomorrow is going to be quite a busy day. i will tell you exactly why in a second, but first look at your note yield chart from this morning. what you can see clearly is the high yield for the -- was established writers jobless claims were hitting around 8:30 eastern. that makes perfect sense because they were so well behaved. especially in front of the big jobs report tomorrow. and if you open a ten-year chart to about the second week in august, we closed a bit under that august 31st significant low yesterday, which is 4.11. we closed at 4.10.

that pushed the -- comp back so, technically a four month low yield close. let's go to the white board, shall we? i updated chart we used a few weeks ago when we talked about the head and shoulders and did the measurement which said we should be basically reaching an objective around 4.11. it we did! that is basically where we are at right now. but here's the point. if you don't use what we call the hit base -- the 31st, take that out. the 19th. when you major pass at 5%, and tomorrow is the big day for the cycle, so you don't include that either. so what you have is [inaudible] 5% back down to 4.11. when the cycle complete, if you are a traitor, that means whatever trend develops on a nice size move tomorrow, go with it. it does not tell you it's going

to reverse, it just tells you a news cycle is going to begin. kelly, back to you. >> thanks, rick. rick santelli. more geopolitical tension for oil markets to worry about today. a border dispute between venezuela and bianna for one. at first this sounded like social media rumors and now it looks a little more substantive. >> reporter: the first thing to note here is that disputes around this region in guyana, which is about two thirds of the country, date back to the 19th century with the current borders drawn in 1899. in 2015, the region took vastly more important from a economic and energy standpoint after a reserve 11 billion barrels of oil was found. over the weekend, venezuelan president maduro held a national referendum asking if venezuela should incorporate that region of diana into venezuela. the government says that 95% of voters said that it should. there has been questions around the validity of the numbers that maduro has published, but the overwhelming response is

that it should be annexed into venezuela. so this region is so important from an economic standpoint as well, when leicester guyana's economy grew more than 60%. which was the highest worldwide according to the imf. it is so oil-rich and important, and excellent of course is one of the key players here. with some threat around the production there, david favorited ask ceo taryn with earlier today what it means. here's what was said. >> i would put it into the context of what has been happening now for many, many years. frankly, before we even started our first production out in guyana, which is there has been a border dispute. venezuela has had the dispute. it is going through the international court of justice. there is an arbitration process happening. so it's a matter between nation states and the international community. we've all seen what happens when nation 70s are challenged unilaterally actions taken. i think the world and outside community have grown pretty

sensitive to that. my expectation is that there's more support, more broad support, in the international community to make sure that the right -- are followed to resolve the dispute. >> -- >> reporter: told me the reality is the chances of it coming to an actual armed conflict are pretty low. this is just saber rattling and bluster, and maduro trying to drum up support within his party and with the electorate. also, there is regions that make it difficult in the sense that it is deep jungle. the only road that goes from venezuela two guyana passes through brazil, and the brazilian president said he does not want armed conflict in south america. so very complicated here. >> i know you are well versed in guyana and venezuela history, but does the border dispute predate the discovery of this large oil finding? i presume it does. >> reporter: it does. there was already a case in the international court of justice,

but it's taken on vastly new importance recently just because of all that oil. also because they can actually access it. venezuela also has huge amounts of oil reserves, they say even more than saudi arabia, but they can't access it. >> they can't access it because they are such a mess. >> reporter: they suffered. maduro says it's thanks to the sanctions, but the sanctions just exacerbated issues that were already there honestly. we are talking about years of corruption. >> misuse, corruption. >> reporter: exactly. >> the whole thing. >> reporter: exactly. >> they are sitting on a pile of oil. thank you for your history lesson. let's get over to kate rooney for as can be seen news update. >> reporter: concerns are growing over the humanitarian crisis in gaza as israel right -- ramps up its military campaign. the two sides are not close to another temporary cease-fire. it comes as an estimated 138 people are being held captive by hamas. the pentagon says the u.s. has resumed drone flights over gaza

to help search for those hostages. republicans took a procedural step today to authorize their impeachment inquiry into president biden. they released detects of the pending acquiring. it still needs to go to a vote and be formally approved, which is not likely to happen until next wednesday at the earliest. house republicans accused the president and his family of having improper business dealings when he served as vice president. the white house calls the allegations baseless. at this hour 82 years ago, the surprise japanese attack on pearl harbor dressed america into world war ii. the naval base held a ceremony today to honor the more than 2400 people killed that day. hundreds of japanese bombers hit the pearl harbor naval shipyard and sunk or damaged 21 ships in the u.s. specific fleet. tyler, back over to you. >> thank you very much, kate. as we head to break, let's get a quick power check on the positive side. walgreens -- higher after announcing expanded covid-19 treatment

offerings. generac down amid a class action lawsuit for those imct bthstksecpaedy e oc rent drop. that is your power check for this hour. we will be right back. 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. time for today's pre-stop

lunch. we focus on three white help companies with ceo that all spoke on our network over the past few days. we will start with amd. the ceo there, lisa su, talking about the growth of a.i. and its potential. take a listen. >> the a.i. market over the last year as just exploded. right? chatgpt has really kind of changed our perspective for what generative a.i. can do. we originally thought the total market for data center a.i. accelerators would be around 150 billion as we got into 2027. now we think it's going to be over 400 billion. >> here with the story on a.m.p. is david trainer, ceo of new constructs. what do you think of a empty and why? >> hi, tyler. we think amd is obviously

feeling the cyclical pressures of all the other chip companies, but the difference here is that the stock prices already pricing at a huge rebound. it's pricing in that margins and [inaudible] the company will grow revenues at 15% compounded annual for the next 15 years. we think all the new -- good news is priced in. you would pass on buying amd at this point. >> all right. what about amazon? the ceo telling mad monies jim cramer he's seeing a very resilient consumer. take a listen. >> consumers are still spending. they are being careful about what they spend on and they are looking for bargains that deals wherever they can. wherever they can trade down on price they are trying to do so. it's really why if you look at what we did in hour holliday season, it's always important to sit customers money, particularly during the holidays and especially in this type of economy. so in our prime big deals date, which was our exclusive offense for prime members to kick off the holidays, we had tens of millions of deals. it was by far the best kickoff event that we ever did. >> there you go.

david, what about this one? would you pick it up? >> no, we wouldn't, kelly. look, i'm a big user. i love amazon. it's a great product, but those deals come at a cost. most people don't recognize that amazon is actually a very profitable business. we showed they have burned 175 billion dollars over the last five years. you can see this on the doubt -- balance sheet. the death has gone up dramatically over the last ten years. that is how they fund the losses. the stock price is implying a drastically more profitable future. margins will double and the company will grow revenues at 50% compounded annually for 30 years. in some ways, it's even more expensive than amd. look, i love amazon as a consumer, and i think all consumers should love companies that are losing money giving you such good deals. i mean it seems too good to be true because it is too good to be true. yes, we would pass on amazon. >> but they made money in their cloud division and so forth.

i guess that your point. they are actually using that money to subsidize losses and other businesses. >> only partially subsidizing losses. tyler, you know that companies report making money all the time, but they don't really make money. >> yes. >> we can't trust the numbers. we can't trust the gap numbers. you have to do due diligence if you want to understand fundamentals. that is just the bottom line. yeah, when you do that work, you pay attention to the balance sheet in particular for amazon, it's a much more capital investment business including amazon web services. they've got all the servers so no one else needs one. >> i was amazed to learn last week that, apart from the u.s. postal service, the largest package delivery company in the country's amazon. it's not u.p.s. or fedex. it is amazon. last up, exxonmobil. ceo darren with telling david faber he likes the long term picture for energy despite the drop in oil prices this week. take a listen. >> we don't get focused on the short term dynamics in the

marketplace. we look more long-term at the fundamentals. i would say over that longer term, generally speaking, it's a depletion business. we see every barrel of oil the world produces as one less oil. so that depletion business caught -- requires constant reinvestment to maintain, if not grow, the supply. so we tend to look at it longer term. i say investment into that replacing the depletion is on the light side. it has been historically. it continues to be on the light side. our view is that, over the longer and medium term, the market will remain fairly tight. >> let's talk exxonmobil, david. what do you think? >> we like it. we agree very much with the ceo. look, i think the esg kind of movement really moved a lot of capital away from oil and gas and fossil fuels. i think we are all coming to the conclusion that the decarbonization of the world is going to happen, but it's along the way of. 15, 20, maybe 30 years. in the meantime, people are going to go for the cheapest source of fuel. i think over the next 20 to 30

years, a lot of the major energy distributors today will be shifting with the market away from fossil fuels to other alternative, lower carbon, fuels. regardless, they will be the same companies. they are in the district -- business of distributing power. they are the best in the world added. and they have excellent access to court low-cost feels. plus, my favorite, tyler, exxon is cheap. right? it's trading as if it's profits were about to decline 30%. we like that. >> david, appreciate your analysis today. thanks. david trainer. coming up, the nearshoring but. companies are investing billions in the new manufacturing capacity in mexico. that also means billionths not being invested in china. we will get a live report from south of the border when power lunch returns.

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(sfx: stone wheel crafting) ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ welcome back. foreign investment into mexico booming this year as some

companies turned their backs on asia. u.s. treasury secretary janet yellen visiting mexico today, saying further collaboration between the u.s. at that country will benefit both economies. frank holland live now in monterrey with more. hi, frank. >> reporter: hi there, tyler. mexico's estimated to have 30 billion dollars in greenfield point investment investment this year as part of their nearshoring boom. that is money outside the company -- country to build new manufacturing and other facilities. we visited lego just a short time ago, one of the companies investing in mexico, and really leaning in. they have plans to double production on site here with every single block made going directly into the u.s.. tesla, and unilever are just some companies that are moving production or expanding production to mexico this year. the 19% tariffs on chinese goods and supply chain reliability are both key factors for the supply chain shift. >> in every sector we are having these discussions around

reshuffling the total supply chain and making sure that it is deep risked. it's not only a cost topic, it's removing risk for supply chains with everything we learned over the last few years. >> reporter: another factor making nearshoring attractive is less expensive labor. estimates vary, but according to new data workers on average make $6.50 an hour in china, compared to $4.82 in mexico. however, we spoke with several manufacturers here in the monterrey, mexico area. they say some of that advantage being lessened by the mexican government announcing a 20% increase to the minimum wage for 2024. tyler, back over to you. >> how much today think that would affect their competitiveness? i assume they are very worried about that. >> reporter: you know, certainly worried about it, but right now the bigger issue is the rise on the peso compared to the dollar. the peso has risen double digits from back to the dollar over the last year. that makes imports from mexico

a little more expensive of course. i spoke to one contract manufacture who said there is a sweet spot where the peso is not completely devalued, making their imports more expensive, but it also does make the things they send out too expensive. they are trying to find the balance right now. they are not trying so hard to compete when it comes to cost. it's really about reliability of the supply chain. the manufacturers we spoke with certainly hope to see some softening in the peso over the next year. >> frank haaland, thank you very much. moderate, mexico. we appreciate it. >> reporter: thank you. cnbc's disruptor 50 index continues to outpace the broader averages. it is up 28% this year, but could a drive market for deal making short in the list of disrupters for 2024? we will discuss when power lunch returns.

welcome back. cnbc is starting to take submissions for the next disruptor 50 lists. the startups is less this year than the past. julia boorstin is here to explain. >> kelly, it is a rough market for starters. the third quarter so the lowest overall venture deal value in

six years, lowest umber of deals in three years, with usb see funding this year on pace to set a nine-year low, and companies managing to raise funds, increasingly, are doing so at lower valuations. the number of downed rounds in the third quarter climbed to a 10-year high, with 26.4% of rounds year-to-date at a flat or reduced valuation. lack of access to capital means more companies are going out of his next. carter reported that 87 of the startups on his platform that had raised at least $10 million had shut down this year as of october. that's twice the number of companies that shut down in the same category for all of last year. now, after only 27 companies went public in the third quarter, there is a pile up of companies waiting to go public. 75, according to pitch book, including big names such as stripe and chime. looking ahead to our next list, worst pointing -- worth pointing out that some lists with disruptor 50 index companies that have gone public from our disruptor 50 list -- is up 28% year-to-date

>> referee: the s&p 500's 19% gains. we are looking for private company nominations for the 12th annual disruptor 50 list, which will debut this spring. to learn more, scan the qr code on your screen or go to cnbc.com/disruptors . >> what is the classic description of a disruptor for this contest or competition? >> i had to say, when i founded this list 12 years ago, the idea was to look at how technology is disrupting every industry. what we see every year is companies. just sort of a stereotypical tech industry. we have a lot of open ai number- one company on the list last year, but we also see companies in the ag tech space, logistics, even in retail there are all sorts of different ways people are using technology to disrupt their respective industries. companies have to be private,

venture-backed, and the idea is to find the fastest-growing and most disruptive companies. really, ones that are prompting change in the industries. >> you said, the number of deals, number of companies going public are down. what do rising -- and the number of bankruptcies -- are up -- what to rising interest rates -- have to do with all of this? >> they have a lot to do with it. i was alking with my colleague, bertha coombs, about the biotech space. two areas which have remained politically with cement, but to some other categories, are ai- based companies, no surprise, but also biotech, life sciences field. she was saying, rising interest rates have hurt that category, because those are so cost- intensive, those companies are so cost-intensive. not just launching an app. we have seen the negative impact throughout the space, but number had the silicon valley bank implosion this year. that has had an impact as well. overall, concerns about the economy. there have been so many different factors putting pressure on the market, but a lot of investors have said this is a great time to get in because valuations have come

down. >> julia, great to have you in the house. >> appreciate it. >> all right. so many aligned to get to kn. ow we will power through as many as we can in closing time. "power lunch" is back in two. catch "the markets on" every day on "closing bell," sponsored by eátrade from morgan stanley. you ca ay on te market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. the cloud makes it possible

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your individual firmness and comfort. your sleep number setting. and actively cools and warms up to 13 degrees on either side. and now, save 40% on the sleep number special edition smart bed, shop for a limited time. only at sleep number 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. welcome back, everybody. 2 1/2 minutes in the show. several good stories to talk about today. starting with moody's reportedly advising staff in this chinese offices to work

from home ahead of the cut to the outlook for the nation's credit rating. employee sources told the financial times the move was wanted by fears that the beijing regime could somehow retaliate. moody's outlook from de haan's outing, yelich is now negative on tuesday. >> we haven't generated employees, but it tells you a lot about what it's like to do business. >> it tells you a lot, indeed. >> all right. the labor picture isn't quite as rosy in the garden state. right here, new jersey eye on implement rate, rising faster than any other state, yet there aren't enough able or willing folks to fill the jobs that are actually available. it's that there are, i guess, sort of people just don't want to take the jobs that are out there, not qualified for the jobs out there, so they are sitting on the sidelines with an implement going higher. >> maybe it is a quick and things will level back out. accountable try to find

ourselves. also, more details on what might have gone down and open ai before sam goldman's surprise firing last month. in a new interview at "the wall street journal," they said, they wanted to make open ai more able to achieve the mission. the journal she wrote in october may have angered sam, causing tension between the two. >> apparently, there was a lot of behind the back positions that were going on in this small board of four people. i gather that some of the people who had these behind the back conversations felt as though altman was not accurately representing what they had said . >> right. >> hence, the break in, quote, trust that has been described. >> india. so, they sought to figure out the board situation, company structure and all that. game stop, ceo ryan cohen, even more access to the remote control, including the ability to use company cash to buy other stocks. company cash can now be used to buy equities instead of short- term debt, and also charging investments with bush's michael

potter:this decision in ane and -- insane -- and -- in ane and alarming. >>'s $6 million for jon rahm they say, joining -- i thought they were going to make peace and go play a round. i guess not. we got to run. thank you for watching "power lunch." >> "closing bell" starts right now. >> thank you, kelly. i'm scott walker at "closing bell." the new york stock exchange, with tack on a tear today. the sector, surging back after a bit of a breather. we as major market vogel, tomley, how far it can run in 2024 in just a few minutes. also, revealing the target for the s&p in the year ahead . meantime, take a look at the scorecard with 60 minutes to go in resolution. the nasdaq today, but green across the board.ai players, dominating today, alphabet,