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? ♪ hello and welcome to "the exchange" on this friday i'm kelly evans. ahead this hour, a goldilocks jobs report, tushe u.s. adding more jobs than expected. and there's another key number we got today on top of jobs that could be more important for soft landing hopes. we'll tell you what it is and why it matters a fund that can buy everything from blue chips to small caps to high-yield bonds and beating 99% of its peers

today. we'll ask the manager how she's doing it and california is in the midst of a land grab with some of the biggest names in tech taking over the state's central valley we'll tell you what they want to build and where the backlash is coming from. before that, though, let's get to the markets which is, what would you call this, treading watter? >> treading water, yes, but they are much better than they were at one point this morning. you mentioned the jobs report, i'm sure you'll talk about the michigan sentiment numbers later on, as well. but we've seen a reversal in the markets and we're now modestly higher the dow up 54 points the s&p is at 4591, up six points about 0.1 of 1% gain there we've seen both sides of the trade so far and the nasdaq composite, up about one quarter of 1%. the s&p 500 is on a five-week

winning streak we are just about flat on the week so far, so we'll see if that winning streak continues. as for the outperformers and underperformers from a sector perspective, it's been consumer discretionary and communication services as two of the better performers energy prices continue to be under pressure and the energy sector is down 3.5%. that's your state of play this week and the stock of the day, one of the best, if not the best performing stock in the s&p a recently beaten down, now trying to respond and rebound media company. paramount global is up 14.5% right now, on multiple report at this point that redbird capital and sky dance media could be looking to kick the tires around national amusements, which is the red stoned owned company that owns about 77% of the voting stock in paramount. the that's the case, that's what some of the optimism is about, at least at this point right now. so paramount global, that's why

it's up 14.5%. treading water is a good way to put it right now, again, for the week, kelly, the s&p is almost dead flat we'll see if the bulls can make it another winning week. back over to you >> dom, thank you very much. the case for a soft landing looks stronger after a better than expected november jobs report the economy added 199,000 jobs, while the up employment rate dropped to 3.7%. even better, andshortly thereafter, we learned that consumer sentiment hit its highest level since july this morning at 69.4. and importantly, consumers now expect inflation to be just 3.1% over the next year, the lowest such read since march of 2021. let's dive into the data and the implications for the markets with our chief economist at kpmg and our own steve liesman. great to have you both here. as always, really appreciate it. diane, you almost nailed it again. what is in your formula, how are you figuring this out?

>> oh, look, i don't know. but i do know that we are going to get more of a rebound from the strikes as we get into december, and i think that's important because all of the plants -- it was a cold open as those plants are reopened, and all the workers weren't all back in the uaw strike. so we'll see more from that. also, from the actor's strike, we still have a lot of workers that will be called back so i think december will be an even stronger month, and the good news is, even though wages accelerated with a comeback in the motion picture and sound production sector, which was some of that comeback from the hollywood strike, there was an increase in wages there. we also are going to see more wage increases as we see those uaw contracts kick in. we saw two of their competitors raise wages. those contracts were signed and verified, and i think that's important because that didn't happen until half the survey week >> and you thought we were going to get 190-kf

you were very close. why do you think we dropped to 3.7%, is that an aberration, or is there real information in that move? >> you know, it was for all of the right reasons. first of all, we had a catchup in employment in the household survey that wasn't there last month. but we also saw an increase in participation at the same time that the rates of the unemployed went down. so it was for all the right reasons. we saw men increase their participation rate and teens this increase in teens has been ongoing, and that's something that, frankly, we have not seen the peak in the teen participation rate was 1979, back when i was a team so we're seeing some people come back into the labor force that weren't there before to see that increase in participation is really encouraging >> steve, we did see bond yields

move up. 4 t 4.23 on the ten-year you might have thought the markets could gallop off with this picture, but we got the inflation expectation numbers that which way more dovish and gives perhaps the fed more breathing room here. >> yeah, can i coin a term here, got gogoldilocks but maybe silverlocks or bronzelocks i just mean it wasn't 100% in terms of -- in terms of -- i don't need one, as you can see it wasn't 100% in terms of the inflation story. wages were a little bit up hours worked were higher, which also speaks to tightness ton employment rate fell with an influx so i think it was good for wall street and good for main street

this number, because at -- i'm calling it 150,000, because i'm taking off the 47,000 or so, which were likely returning strike workers so call it 150,000 it's above the influx of workers into the workforce when it come to the labor force growth. so that creates some bargaining power, especially for skilled workers. it's also good for main street, because -- i'm sorry, for wall street, it's a step down in terms of job growth. i don't think the fed's paying a whole lot of attention to the one-year rate. the one-year rate, when it comes to inflation expectations, it's a poll on gas prices they have like a 60% r squared or correlation, so it's not that big a deal what is a big deal is maybe the five-year number, which did tick down 2.8 i think the fed wants to see that lower yet, but it's been relatively stable at that level. and if you just look at the outlook for the federal reserve

and rate cuts next year, i'll show you the march number. it did come down below 50% for probabilities of a rate cut there. and the amount of rate cuts built in came down a little bit, though the market, i don't know. it may still be over its skis a little bit in terms of how much in the way of rate cuts it expects next year. we're going to get, i hope, some guidance from powell next week when it comes to how much we should be thinking about that. >> diane, some of the reactions i saw, this should definitely keep the fed in play or it -- you know, what is your take on the significance here as they do have to meet next week and this will be one of the freshest data points >> well, i think the most important issue is that, one, we know there's going to be more of a rebound in terms of employment in the month of december through the strikes. as these workers get called back, it shows how fragile the economy is on one side of it that a strike could sort of

knock us off and get us up to 3.9% unemployment rate in october, and then snap back to 3.7% the next lamont t -- the next month. that's good and bad. the good news for the fed is that, yes, we see inflation still cooling. it's come down fast. you know, this is remarkable it's the fastest deceleration of inflation since world war ii, korean war, and the attack on inflation without the unemployment rate. so those are wonderful things. that said, the fed has to be worried about how resilient are we and how strong is the underlying economy i agree 100% with steve. we don't want the bond market getting out too far ahead of their skis in pricing and too many rate cuts the fed will push back against that the key question, steve, probably is, do they even discuss rate cuts at this

meeting? i think powell's going to go out of his way to make sure they don't discuss rate cuts at this meeting yet, so that they can push back and keep the markets from thinking about how you many cuts they're going to have >> steve, last word. >> he's got a problem, diane, which is that one of his governors was out there saying it was kind of like an automatic, that if inflation comes down -- >> that means he has to push back >> well, here's the thing. like i said about waller, he said the quiet part out loud i don't know how you actually argue against what waller said what waller said was just -- i mean, it was just math i don't think you can repeal that, unless you say look, i believe six months from now, monetary policy needs to be tighter than it is right now the well, mr. chairman, on what basis would that be if, indeed, inflation has fallen there would be no rational for it so i think he does have to explain himself there. last time he was asked, he wouldn't field the question. i don't know that that's an

option anymore we're not just talking about it, but we're pricing it in now. >> exactly very well said >> he's got to push back on that a little bit >> that will be tricky to thread that needle. we'll leave it there for now thank you both diane swank and steve liesman. let's switch back to the markets. while most funds today specialized in certain industries or sectors to maximize returns, my next guest does the opposite with success her diversified capital fund is a go anywhere fund that can invest in anything from blue chips to small industrials to bonds, and it's outperformed 99% of its peers over the past 15 years. she says flexibility is at the heart of her winning strategy, so what with we buying now let's ask margie patel from multiassets solutions. welcome. >> thanks. >> before we dive into all of this, do you have a reaction to the jobs number today and your

kind of sense of the economic land scape and the sort of prospects for fed action for the next couple of months? >> well, once again, we have surprisingly strong number second quarter, third quarter, they were surprisingly strong. i think we'll see the same in the fourth quarter it shows the resilience of the economy that it is relatively insensitive to the moves of the fed. there's not enystem with consumd business that they realize that much sensitive to the fed making these changes. so i think they're a little flummoxed because what they thought would happen from how they move rates to over 5%, it just hasn't happened >> yeah, it's amazing. you see growth next year, maybe more muted than this year, but strong enough to support low double digit returns from stocks you can do a lot of different things in terms of stock picking

here for where you see value what are the things kind of leading the charge for you right now, the best opportunity? >> well, i think in general, areas of the market that have growth or continue to be leaders, just as they did this year there's a lot of hope by everybody that the market broadens out and suspect just a handful of stocks running the market the broadening out will be rather limited to those large-cap stocks and that have proven growth, very high quality balance sheets the balance, the broadening out is going to be really selective. we think in the industrial sector, technology, some of the names that didn't get chosen, and maybe it has a trigger in health care. but we think it's going to be more of the same, a little more broadening out and a little slower, because we had such a tidal wave of money that lifted the economy over the last year is a reaction to covid and so forth. and that money has been played

out. so we're looking for slower growth in the first quarter. and then typically we'll see a big bounce up. >> a couple moves you have made, one was you really pulled back on health care, which became a crowded consensus thing that has underperformed you also were sort of over -- what am i trying to say? more into tech, moving more heavily into tech a year ago what told you that those were the right moves to make? >> well, the main thing was feeling that the economy was not vulnerable, that these interest rate moves were -- you remember, a year ago, most people were thinking we would have a recession in '23, and we simply haven't. it's nowhere in sight. so we thought economic growth would continue defensive names like health care, especially because health care had a lot of revenues, covid related, and we're seeing a slow in demand across the board outside of the u.s.,

particularly in emerging markets in health care so we felt it was better to be more in economically sensitive areas that the defensive areas had individual problems and we didn't think they were an outperform >> so looking at -- your holdings right now, if i'm not mistaken, biggest include broadcom, alphabet, amd, microsoft, marvell, adobe, motorola should we expect a lot of changes for you in 2024, or is that a good snap shop where investors should be positioned >> those are the names that will carry through next year. i love to look at undervalued stocks we have looked at all those sectors and haven't participated a lot of those companies have problems, they have slow demand, they're dependant on growth in china, which isn't happening so you have to look at technology, to really drive the market next year

>> quick final question on bonds. walk us through your thinking there, and where, you know, you're kind of out of step with the market >> well, you know, i think that then bond market is almost irrelevant to the stock market and fed moves are really not very relevant to what equities will do next year. the ten-year will be just fine i do think high yield will continue to outperform i think that will still be the case economically sensitive bonds in high yield. we'll continue to outperform >> best of luck in 2024. congratulations. we appreciate your time today. coming up, bitcoin's back in the spotlight as it hovers around 44,000. but will this bout of optimism translate to real turns for thin

tech and did google take its viral video a step too far what the company is now saying how it made the video and whethergemmi jumped into the race too late. the dow is up a quarter percent, everything is basically, as bond yields moved somewhat higher the ten-year, 4.23 back after this.

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welcome back, everybody. no matter how many people want to leave crypto for dead, it's come roaring back. bitcoin up for three straight weeks as it trades around $44,000, helping robinhood have its second best week ever. and it's not just crypto affirm clocking its best month ever in november after seeing record buy now, pay later sales. my next guest sees those gapes continuing into next year. great to have you back, welcome. >> thank you >> i guess we should start with -- let me start with the crypto stuff it always feels like, you know, if this is the game robinhood wants to play, then you live by the sword, you die by the sword. what is your latest thinking on the success of that platform, how much is crypto, how much is sustainable, that kind of thing? >> great question. i think crypto, they're a net

share gainer in crypto, and the data we saw in november, gainin coinbase i'm super bowled up on the uk, europe growth, so it's going to be more of the same, but in other regions. and now also in asia so that's kind of the next leg, taking all of that stuff you're seeing and putting it into other regions. >> why are you optimistic about robinhood than coinbase, what's the difference >> i could not be more bearish on coinbase. think about it let's just play it out if you think about the bitcoin etf, which everyone is excited about. robinhood benefits from that, because you can trade the etf as an equity for coinbase it's net cannibalization, plus you don't need to trade on their platform take the most astronomical number that you can think of, like a trillion dollars, think two, three basis points off of that, that's like 5%, 6%

incremental growth, something crazy, like it's not going to happen it's very little incremental to coinbase people don't see through that. >> what about the people, and, again, institutionally trading wise see the use for the bitcoin etf. but what about people who say look, it's easy to hold my bitcoin on crypto. i feel like i own that asset a little more securely isn't that likely to shore up demand to keep people on that platform >> totally, there's going to be demand for that. but think about the feed differential robinhood is charging 34, 35 basis points, a third to trade in and out of bitcoin. bitcoin is charging 10 x that number so people are going to start understanding, why am i overpaying >> interesting so that's kind of the rivalry of those trading platforms playing out, as we watch whatever happens with the price of

crypto thin tech, you think that is solidly poised into next year? so many people are raising questions about, you know, whether there's a shoe to drop in the bnpl space. >> i have a breakthrough thought. affirm is not a buy now, pay later company. it's a full-fledged financial services company they issued a hybrid debit credit card and it went perpendicular. the number of users went from zero to 800,000 in weeks 2024 will be the same but more and will get into more services. >> i always think once these companies start to broaden out from what they were innovative at, then they're just competing with everybody else. is that a game you have deep enough pockets and can you go up against the giants >> it's incremental. if you use affirm and then you have the card, the card users use affirm three times more than the non-card user.

and if people put like direct deposit, their checks, they use it even more so you're getting a multiprior effect so more of the same. 204 is going to be the year of affirm >> interesting i wanted to mention this, because i've seen chatter online about this we talked about this launch of this the rollout is slow, adoption is very low can you provide a comment on that >> anything that the government does takes a long time i heard there's several hundred banks already using that if you think about the impact of fed now, look at places like norway when there's 100% digital and a realtime payment, eventually, it takes off. so it takes time, takes time but then it takes off. so i wouldn't write it off at this point >> does that moderate your bullishness on the space broadly speaking or just some of the more exposed players we talked

about previously >> it makes me more bullish, like the affirms of the world. it makes me less bullish on names like visa that are living off interchange. >> maybe it will be the year, 2024, many of these changes inflection points. dan, thank you we appreciate it coming up, we've known the wealthy have been leaving high tax states for years the pandemic certainly kicked that into high gear. is it now reverting? we have new data and the impact it's having on states like new york that's next on "the exchange" with the dow up 88 ♪ 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? ♪

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when you think of investment risk, do you consider climate risk? changing weather patterns are impacting the way we live and the value of businesses large and small. 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 back to "the exchange." it turns out millionaires who moved out of new york during the

pandemic may not have stayed away for that long robert frank brings us the details. robert >> new report from the fiscal policy center saying the wealth play from new york during covid was, in fact, temporary. the report said that new york lost about 430,000 residents between 2020 and 2022. nearly a third of them were making more than $172,000 a year yet by the end of 2022, that migration rate for those top earners returned to prepandemic levels the report saying 2400 millionaire earners moved out, but the state created over 17,000 new millionaires, meaning overall millionaire population actually grew despite that tax hike in 2021 not only is high tax earner migration largely a myth, but there is no need to fear for the state's fiscal and economic future, the report said. the state controller issuing a contrasting report, saying

outmigration today still exceeds the prepandemic levels he said, given the importance of those high earning taxpayers, policymakees need to make sure the state remains an attractive, affordable place to work all this matters a lot, because new york faces a $4 billion budget deficit next year legislators are earning the governor to raise taxes on high earners, kelly so a lot of discussion about these numbers, and whether, in fact, a further tax hike in new york would, in fact, result in more outmigration by those very important taxpayers. >> don't we only have to look to florida? if you can't measure who's leaving, can you measure who's living in palm beach now and all the economic activity down there? >> absolutely. and, you know, this report also said that most of theout migration by the wealthy was to other high tax states. true, that new jersey, connecticut, pennsylvania were big attractions for those new yorkers moving out but the number one destination

during covid, 2020 to 2022, for those high earners was, in fact, florida. that hasn't changed. >> and so are they then getting sort of lever's remorse, or it's not clear yet? >> not clear yet it's interesting i talked to a lot of high net worth people that moved to florida that are sort of saying that florida is a little boring compared to new york and maybe they'll come back. but we haven't seen a large-scale number of people returning. if you look at the tax rolls, there's still a large number of people, the number of taxpayers today versus prepandemic is still quite a bit lower. there's no evidence from a tax perspective that they come back. boring >> too humid you can always find some way to spend your time and money. robert, thank you for bringing that to us our robert frank let's get to bertha now for the cnbc news update

>> the european union is adding two senior hamas militants to the terrorist list three u.s. headquarters -- the eu headquarters said that the actions are in response to the october 7th attack on israel the union will freeze the funds and european assets of those two leaders. the u.s. also issued new restrictions today, saying the treasury and state departments imposed sanctions and visa restrictions on 37 people across 13 countries, including afghanistan, china, and iran over human rights violations the announcement comes just days before the 75th anniversary of the universal declaration of human rights pope francis made his first outdoor public appearance since being stricken with bronchitis in november, in honor of today's holiday dedicated to mary, the pope arrived at the spanish

steps and blessed the crowd. he also added a special prayer for israelis, palestinians, and the people in ukraine. pope francis turns 87 later this month, kelly >> bertha, thank you very much check out shares of a couple of biotechs today. var these are the first two. they are going to treat this disease. shares are trading down three quarters of 1% on the news of this pricing, that comes just hours after the fda approved the gene therapy along with blue bird bio's drug, which is a similar treatment for the blood disorder these two treatments are the first crisper ones to get fda approval vertex, down fractionally. blue bird was halted for trading, opening down 20%. then it was halted again, again,

those shares are below $4. we'll bring you news when it reopens. coming up, this viral video from google is facing new scrutiny are critics ovretieracng or did google go too far? we'll debate, next like your workplace benefits and retirement savings. with voya, considering all your financial choices together can help you make smarter decisions. voya. well planned. well invested. well protected.

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welcome back is google caught in a gemi blunder? the company getting called out after acknowledging its ai video was staged, showing a preproduced rendition of the technology the company saying it was intended on the an illustrative depiction. joining me now are my againsts glad to have you here. steve, let's start with what do we know? as you reported yesterday, google was forthcoming about the fact that this wasn't necessarily a live video, it just took people a while to internalize that >> i guess they were honest in the sense that they had it in some notes on the youtube video itself but if you were looking at the

co's x account and the video he shared, you would have known that and thought this was being -- this was working in realtime the way that google pitched it as working. but what happened was, google has said they have done this, they edited it down, so they made it shorter so there was less latency between the query and the response okay and beyond that, instead of actually having the model look at the image or listen to the voice, they fed it text prompts first and then voiced ore that so google now having to walk it back and say oh, this is what it could be like. this is when -- if and when we launch this thing, this is what it might be able to do but right now it doesn't seem capable. this is important, because right now, this -- google wants to sell this model, part of its cloud business they want startups using it that need to tap into large language models, looking for something

beyond openai. google wants to implement this in its search product and the promise that will drive more sales and revenue. they want to sell it through work space and google docs right now, it's not ready for primetime. >> alex, was the risk worth it the video was so compelling, and now even the sort of debate about it becomes another round -- it's very elon muskmus musk-ish, i must say >> it was not worth it if you are at google, how can you think people are not going to catch on? it shows how google thinks about itself internally. it's seeing microsoft, nvidia, go to technology it developed and it's behind. so now it's doing this video that shows that it's done this revolutionary upgrade, but what it's done is evolutionary. it just shows the mindset in google we're behind, we need to show

the public something amazing, and now it looks worse than it did in the beginning >> neil, was the risk worth taking because they got so much more extra buzz out of snit >> no, i think google was in a position where it felt like it needed to catch up to openai but openai was doing a pretty good job of making itself pretty messy. you didn't need to shoot yourself in the foot this way. google's pitch here is that gemini, you can communicate with this video and it will generate stuff back to you. you can see how you get to robotics with this thing, where it's looking at a picture, but the reality is, it's just a chat bot and it does not appear to be a very good chat bot it hallucinates more than

chatgbt hallucinates it answers problems in a less good way than chatgbt does today. so even from the have we caught up to gtp-4 in chat bot form, it's not there and then this does seem like a pretty big cell phone. >> what about the share price reaction, alex it's down a percent or two today, but nothing like the debacle we have seen in awkward launches or when investors were concerned. maybe they feel like it's a step in the right direction >> yeah, absolutely. if investors were buying off of that video, they made a real big mistake. google has a market that can compete with gpt-4 and cater to google cloud platform customers who have their data and can bring that in and start to use these products that's much more reasonable. i think that the marketing did

play a role in here, and there's probably people buying where they shouldn't be. >> what would you add, especially for the investing public >> google has a big business model problem to solve all of its money comes from a search and these models are going to undo that business model over time. the idea that you're going to insert advertising into a list of links in some way, it's just going to crash directly into the ai is going to tell you the answer i think google has to get these models out in front of the public, understand how people will use them, understand what a commercial opportunities are beyond that google cloud enterprise stuff that alex is talking about. the consumer business they have to develop, so there's a huge push at goog tolle to make surey do it first before openai or microsoft does it with bing, if you believe that is a real possibility. that said, they don't have to get this far out over their skis because of perceived pressure. the search business is fine right now. >> steve, i absolutely agree

that this is where, it's obvious this is where the next generation of technology is going. wouldn't they do something where the google central page has five blue links on the left and right? >> they call it the search generative experience. some people are already beta testing it you'll make a search, who is kelly evans at cnbc. it's not very good right now the idea is that they will be able to incorporate this new model if they can get it working. that will, in theory, they say boost their search business, boost people searching on google, which is good for the ad business but, again, it's also like unclear how that plays into search, whether it's good enough to get people searching or just using the chat bot itself. >> and this does also raise the whole issue is when you also have ai now generating a lot of internet pages that are diluting and trying to ruin the experience for legitimate

companies, the whole thing is eating itself. you can understand why people are unnerved we'll leave it there for now gentlemen, thank you all up next, a sun kissed community coming about in california a new community with the goal of being 100% environmentally friendly but it's already facing backlash scott? >> reporter: hey, kelly. it is either community of the future, or it's a tech land grab or why we can't have nice things we are going to introduce you to the investors that want to transform this land and why some of the locals are saying, we're good that's coming up when "the exchange" continues. a competitive advantage. ♪ it's raising capital to help companies change the world. ♪ opportunity is making the dream of home ownership a reality. ♪ ...and driving the world forward to a greener energy future.

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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. welcome back, everybody. take a look at shares of bluebird bio down 20% before being halted, reopened and are down at one point 40%. this all happening on a day

which the fda approved two new therapies for sickle anemia one concern is that bluebird's product has a black box warning about the risk of cancer and was facing concerns it wouldn't be competitive. we'll have details next hour bluebird is under $3 a share today. a new california utopia or a tech bro land grab that's the question surrounding a new city aiming to be environmentally friendly, solar powered and a sustainable vision of the future. scott? >> reporter: hi, kelly yeah, we're roughly midway between san francisco and sacramento not a whole lot here yet, but just wait. this site is huge. some 60,000 acres. so that's roughly the size of the city of milwaukee, although they say that the community they want to build here is much smaller. a secretive group bought up this land over five years

it turned out to be a who's who in tech and venture capital. reed hoffman and more, led by a former goldman sachs trader. he says that job was devoid of meaning. this, he says, will be a walkable, liveable community but whatever you do, he says don't call it a utopia >> it shouldn't be a utopia that we're trying to build a community where everyday californians can buy a home and kids come home from school that's not a utopia, it's just a good town. >> reporter: for all the business brains behind this, they are not used to the backlash that this has sparked it's been huge at town halls like this one last night even the local sierra club calls this development a hostile takeover >> the danger for me is that it becomes about dollar signs, right? well, how much do you contribute you can't put a dollar amount to what farmers do, what

generational farming has done for our country, right we all need food >> reporter: the group will still need voter approval next november to change the county ordinance that protects ag land. if that does not go through, these folks will be stuck with a whole lot of land and decide what to do with it kelly? >> is there anything else they could do what more do we know about the group back thing project >> we're told all of those big names are passive investors here but as they were slowly buying up this land under a company called flannery associates, it sparked a lot of concerns from a local congressman here, because this site, part of it, borders on travis air force base so there was a lot of concern about is there foreign investment here? the group says no, it's 97% u.s. investors, a handful of uk and ireland. the treasury department has been looking into the foreign

connections. the other thing that's been going on here is that it had to take some of the local land owners to court. they claimed that they illegally colluded to jack up the prices, so all of these tech luminaries are facing some good old fashioned business hardball. >> there were some concerns that scott, thank you for bringin us that story. we appreciate it our scott cohn reporting still to come, a semi charme market whether it is a, gaming, or evs, they've dominated the market this year. the -- having its best year since 2019, but should investors jump into the names leading the pack o bet on the underdogs we will find out on three buys and a bail, next the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does.

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from powering a.i. to drivin evs, semiconductors ar certainly having their momen in the sun this year, but will 2025 - 2025 i'm already ahead! will 2024 bring a changing o the guard? who should you stick with an where should you bail? let's find out in today's thre buys and a bail, semiconductor addition quinn is here with our trades, he's dual financials found out -- founder, and is this satanic's day or early christmas,? when >> this is early christmas, kelly. we're talking about some merry christmas semi cheer here. >> you have several was that you're bullish on, let's start with amd it's flat after rising 10% yesterday on the new a.i. chip that is set to rival in videos

this eoc the company now believes the total market fo their chips, oa.i. chips could climb to form trillion dollars of the next four years twice as high as they thought. why stick with this one? >> yeah, kelly, so out of th rain, here we are going to cal this one dasher. so amd trading 34 times four earnings, growing thos earnings at 42%, not including the new a.i. chip. the company has almost no debt six billion in cash, yes, it has had a strong move recently but still 20% of highs we do think this one will be dashing to those highs in th near future. >> all right, let's see who' next it's called micron, it has a five day losing streak tha it's nap, shares are up 1% today as they're trying to string together some gains they did recently boost revenu guidance for fiscal q1 thinking revenue could be 4. versus 4.4 billion dollars previously, but they're also worried about higher operating expenses why do you like micron >> yeah, kelly, micron is

turnaround this one is going to be dancin the highs. this is our dancer in the root of theme that we have here 13 point 21 forward earnings turning those earnings aroun for profitability, and the company really has been strong compound or historicall with a return on investmen that capital over 20%. very strong balance, sheet ten billion dollars in cash an hasse had a pullback, but this one, again, is it by for us, and this is the one that wil eventually head towards high in the next year >> i'm trying to get to hi route off, maybe it is our nex one, nvidia. it has been leading the way. it's up to hundred 25% best performer of the whol magnificent seven, let alone the semis. -- name that it's topic, and so they're sticking with it until next year, and you are two >> yeah, and you nailed it this is right off. this is the one that is goin to shine the way for the res of the semis here. it has had a strong move, it

has been a standout, but 2 times forward earnings, an those estimates are for 70 growth very little debt, 18 billion dollars in cash. and here is the deal, kelly, i you are nervous about this reindeer games, just place a stop at 400, and you will slee cozy in front of the fire. >> all right, 27, stil remarkable to see that on th screen okay, so those are your thre buys there is one to bail on of thi sort of larger semi bunch, and that is texas instruments. it's already down 5% this year so you might want to get i here thinking it plays catch-up, and it's a pretty star contrast to the likes of nvidi and amd and micron why would you not see this as value play, and instead tell people to stay away? >> despite all of the goodness you can't go get hopped up o the eggnog and think everythin is a buy here. you are spot on. this one really is just in a down trend in a sector, the analog space, that we feel will be strugglin for sometime 24 times forward eps is what w

have, and those eps ar falling. they're in decline and so it is, in reference, very, very expensive stop. despite being 20% off of 202 highs, we mark this one as the grinch, and we would stay away >> would you, since everyone i the mother loves broadcom, would that be in the portfolio >> so i have been wrong on broadcom for a long time, bu i've stayed away because of th debt level we don't like the debt level o broadcom it has come down over the years, but that is been a concern o ours, and we are ver fundamental based. so balance sheet is always a big key for us so we don't put that in th mix. there are a lot of small image that are out there that ar very attractive as well if people want to do their diggin for the sort of goal that is out there, stay away from th charcoal >> when making his pun today we appreciate. it quintana, drought saint nick that does it for the exchange. next on power lunch, we will have a whole lot more on the bike drama and biotech the fda approving those ne

sickle cell treatments one of the stocks down big we will talk to the ceo of the other one receiving approval vertex i will be joined by jon fort on the other side of thi break. a few years ago, i came to saona, they told me there's no electricity on the island. we always thought that whatever we did here would be an emblem of what small communities can achieve. trying to give a better life to people that don't have the means to do it. si mi papá estuviera vivo, sé que él tuviera orgulloso también de vivir de esta viviendo una vida como la que estamos viviendo ahora. es electricidad aquí es salud.

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welcome to power lunch alongside kelly evans, i am jo fortt. hundred 99,000 jobs created in november that is more than expected, an contrary to other sign indicating in the job market might be cool. wages are also higher, which doesn't really affect th inflation picture. we will break that all down, what that means for the day in the markets. plus, google shows off its gemini tool. the stock soars, but now we ar learning more about what jim and i can actually do. we will speak to an analys about what it might do for the stop >> first let's go check on the markets, though as we saw mild gains after th