♪ ♪ ♪ 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 the stronger tha

expected peril numbers thi morning, and that's still wher we are at this hour. the nasdaq strengthening somewhat of a third of 1%, and just four point shy of 4600. bond yields sprung higher, but not too much, about five basis points around 23 if you look at the weekl numbers, nasdaq an s&p are o pace to extend their winning streak to six now, down about tenth of 1%. s&p has a little bit of margin there, and nasdaq is a littl bit more safe. and speaking of good, week let's check out bitcoin. around 44,000 right now up 13% this week and 160% this year >> and we start now with tha better than expected novembe jobs report. almost 200,000 jobs were mad in the first 190,000 estimated the largest jobs increas coming in health care, where 77,000 jobs were added the unemployment rate also fel unexpectedly to 3.7% let's get some reaction from karen, chief economist a

linkedin when you see these numbers, ho much they line up from wha link that is actually seeing o the platform job openings were down, whic some people think that the market is cooling, but wages still hanging in there and still getting work >> yeah, absolutely. the signals on our platfor exactly what we're seeing on the data we've been saying for a whil that health care had a lot o momentum for 18 months, we've bee seeing job growth in the healt care space we have been seeing a lot of momentum in construction since earlier this year, lik february 2023. and so a lot of what we ar seeing now is exactly what w have been seeing for a while o our platform one of the more interestin things though, as you point out, much stronger than expecte kind of labor market i mean we were looking for maybe 170 or hundred 80,000, and so the speed our expectations but we are seeing a little bit of stabilization in the tech sector it has been struggling for a

while. a lot of layoffs in that space and now, what is happening is bit of momentum, actually little bit of an increase in hiring in the last couple of months in that space so that is something that we are watching going forward >> are you seeing other signal that employer leverage i strengthening? i seem to remember there being some reduction in th availability of remote work, for example, as more employers are saying, hey, we really wan you back in the office are the signals there as well? >> yes so as you may remember, and yo point out, there was a point a which it felt like the job seeker or the employer had a lot more leverage. that may be starting to shift. and players definitely want to see folks back in the office they are not not for five days a week, but just three days week to come into the office but we still see a lot o preference by job seekers fo those remote roles they apply to those in greater quantities than they do for th onsite roll, but hybrid seem to be the place where we are telling, where really, there i

a consensus that hybrids where we are going to be going nex at least so really interesting poin that you make about leverage because one of the other aspects of the leverage is whether or not people ar moving jobs, and what we are seeing is that a lot of people are still kind of staying in the job that they have had for a while. there is not as much churn a there was two years ago, and s the true test of what th average is is when we se quakes rates pick up again and that will be much later into 2024 before we see that. >> a lot of people are still telling you, karin, that they're still looking for a ne job next year. what does that tell you? >> yeah, so many people ar saying that they plan to, look 40%. they plan to look for a jo next year, especiall millennials and gen z. an amazon platform are signaling that i have been i the shot for a couple of years i like, it i want to stay pu in case there's a recession. but as people start to think maybe there's no recession maybe the soft landing is reality, and they will start t explore options for next year. and so i think the true test o

what happens is when we star to see that churn pick up. but in the meantime, what will tell you is that for thos who aren't job seeking now they are applying for more roles than they were in th past that is a sign of job seekin intensity, that people are starting to feel a little bi more motivated to go out there and get a job and say you ar go or two years ago. that job seeking intensity b the job seeker is really picke up >> i'm also curious about th labor market mismatch. there is a port yesterday abou new jersey's risin unemployment rate. one of the issues there is tha finance has had some layoffs i areas like health care, they'r still hiring, are not going to absorb the people leaving that industry per se. you've also seen some changes. maybe tech, information, media slowing. how much is the mitch matc between the labor market today >> i think this whole labo market in the u.s. is really a story of different industrie peaking and trough-ing a different times. you know, remember the tec boom that was happening in 21, 22, and now there is a lot o softening in the past 12 month or so. at the same time, retail is no

starting to soften a littl bit. there are fewer jobs there, no by a lot, but fewer jobs there and health care remains strong so to your point, finance ha been a little soft professional services like consulting, those have als been a little bit softer in th past and so everything is sort of happening at different times and to your point, that mean that you have a little bit of mismatch >> all right, karin, we will leave it there thank you so much for diggin through the data a little bi more with us karin kimbrough with linkedin. stocks have changed with the s&p on pace to snap, it look like it could make a six-wee win streak we will see how today shakes out after this morning job report former boston fed presiden eric rosengren did weigh in on what the jobs data means for the market take a listen. >> from the markets perspective, it's probably a little bit stronger than they were hoping for. and better than the bond pricing right now is som pretty significant rate cuts over the course of next year i would be very surprised if those aren't ratified if w continue to get the kind o

data that this report shows. >> so he is saying, maybe no so fast on those rate cuts for more, and what the job dat means for the fed in the markets going forward, let's bring in dryden pence, chief investment officer, and michae santoli, our senior market commentator here on the side with us. welcome. jordan, what do you think? you have to worry about the fe stay in the picture? >> i think that we are of th opinion that it's really kin of switch from higher to longe to how fast. and we think that probably the fed is only going to maybe d one or two cuts next year, and we think that we are going t be in this higher regime if the market is pricing a five or six cuts, i think that they are going to be widel disappointed i think there's going to b maybe, one maybe two, becaus the economy is still quite strong and we think that that is goin to be the dynamic that is goin to be surprising people. >> okay, michael, what would you add to that? because we've seen the marke not necessarily coming aroun to dryden's take, but to say

we really are going to be here for longer, but not as they've been hunting more recently >> or maybe use the opportunit to say that we have a balancin policy, we see balance ris between inflation and potentia weakening and growth to me, it's about which market that we're talking about counting on anything rate cuts to me, the stock market righ now is not at this level because it is assuming that we get 100 or 150 basis points of cuts next year it is because we have peak, fe peak yields, and all of thos things that suggest that there is more of a sustainable momen in the expansion at some point, maybe powel will have to kind of forcibl snapped the markets tension in a different direction. but right, now i think the fed enjoys the luxury of kind of waiting, seeing, and letting things evolve. to me, disinflation, especiall when we got that on november 14th, the cpi report confidence in the disinflation trend means good economic news can be good economic news, and that is where we are until further notice in less we se

some stickiness in inflation >> yeah, dryden, the way that took this jobs report this morning, incorrectly ramrod, here it is like we are driving on a flat road now, and as mik was saying, if you break that's a good thing. if you accelerate, that's no necessarily going to los control of the vehicle but do you feel like that is where we are, or are there enough dangerous signals her to suggest that the fed migh have to do something with th markets assuming that it won't >> i think the point is that w will switch this regime wher good news is good news, and think that the fed doe engineer the soft landing. and as they do that, you are going to see from a market standpoint, you are going to see earnings continues to grow you are going to see some more stabilization. you will probably see smal caps do well it's the point of the matter i that everybody has bee thinking that the fed got it wrong, and this may be one o those cases where they got i right. and so we get this moment wher they do stick the soft landing

and i think that is going to b really good for the markets in 2024 and 2025. >> and so might, one of th next test? is it the postseason holiday earnings >> it might be next week inflation number anything can disturb things. it's important remember we cam from six weeks ago in th advantages so to speak that we had six weeks ago, which i that markets were hated, the were oversold. people thought that the econom cannot handle that level o yields yields were spring loaded to actually move hard to th downside just for mechanical reasons because they got ove done, and oil all of the sudde fell out of that and so all of those things hav managed to feed the situatio where you have risk rising, an maybe we get a little more confidence in fourth quarter and the attain ability o fourth quarter and first quarter earnings, and that remains to be seen right now it is a little bit more of an equilibrium point where it's like maybe people aren't overaggressive and soft landing i think. >> do you think the upside i kept, because either gets ho enough that the fed has to d

more, or it cools down and w start having those discussions again >> it's very possibl that it might be kept at tha level. i, mean i keep going back to the idea though that if you're at 1400 on the s&p almost tw years ago. the economy is 15% bigger an turns right now. earnings are a higher level. and so the marquee can do it when it wants to do. and so it doesn't feel lik there are blue skies to th upside only because you neve really have a moment when yo get the soft landing you are still kind of in that, well, some cycles look late, o some parts of the economy look like they are rolling over again. so i think we are still goin to be in that mode of wonderin what comes next. >> and real quickly, you are waiting out in some of the defense talks, is that right >> yeah, and we like t defense stocks we like raytheon because war i profitable we have to going on, and the have very key places we also like boeing because we think that they are now with a backlog of almost nine years worth of this, back on the 3

-- 7:37 fly, and it will be selling production every month and so they have record demand and he will get back on track. and so we think that it is kin of the soft landing for the fe and it is a takeoff fo aviation as we go forward, and i think mike's point was reall important. people have forgotten that w have 4.5 million people workin than we did at the height of the pandemic if you take just the wages and salaries, we have had it in th aggregate demand equivalent th country of italy, the eighth largest country in the world so as the underpinning tha people may be underestimating, working through this >> fair enough, gentleme thank. you dryden tense, michae santoli, we appreciate you time >> let's get now to rick santelli in chicago for how th bond market is reacting for th jobs report. rick >> john, what a wild day you, know i thought it was going to be all abou employment, and to some extent it was, but in many ways university of michigan stole the spotlight. if you look at a one-yea inflation rate on a chart of

ten years, you can see what i' talking about. a couple of things to poin out. first of all, just the volatility on the right side o the chart! last month, 4.5, this month, 3.1 on one year inflatio outlook. look at the choppiness there and just indirectly, we ar still higher than we wer pre-covid. that is a ten-year chart now if you look at one of th big issues this week, it has been the short maturities ar leading the way. they took over when we are going down, te years lead, two year's leading this is a one-week chart as we stand now, for 71, we're up 11, 12 aces points on the day. we're up 17 on the week. now let's contrast that with a ten-year chart ten-year charts are so aggressive, but it is only u three on the week. and that is in important facto here, because defining what is exactly a proponent of - and the yield curve in general is going to save many trader

strategies a lot of money in the long run, because it i stronger than expected dat that pushed rates up on tenure note, or is it more technical features reversing a historically large short position that we ended u taking care of when we trade down to 4:10 that is the big question, an we are going to get some answers because next week we have debt issuance and inflation data kelly, back to you >> it will be a fun one fo sure, rick, thank you very much rick santelli. in the meantime, let's take look at the biotech space wher shares of bluebird bio a resuming trade the stock is down more than 30 even after getting a key dru approval angelica peebles is live in news room to explain, an angelica, we really have to di in here and get the full scoop of what's been happening today pretty extraordinary yeah kelly there's a lot going on today so, the fda approving tw treatments for sickle cell disease. one is from vertex and christopher, and as a treatmen that uses gene editing and the other one you mentione is from bluebird bio

that is also a gene therapy, but it uses a differen technology then gene editing and shares are getting slammed today, as you mentioned. one of the things we noticed i that gene therapy comes with a black box warning. that is the worst, the strongest warning you can get, warning people of the risk o cancer and of course, that's no great. and also, but list price i about -- higher than the other ones cast chevy so, bluebird it's charging three point $1 million per patient, or as vertex is charging about two point $ million per patient for svm. at the same time, bloomberg ha faced a lot of challenges with cash they had a going concern about a year ago, and they had actually presold something called the priority review voucher. so, they were expecting at upo the review of this treatment they would get a voucher, is like a fast path, and they could sell that to another company. but it turns out they did no get one upon this approval

so, investors probably have lot of questions about the competitiveness of its therapy and also, the cash situation for that company here. >> and delicate,, so is this a case for getting a rare case for getting a drug approval is as bad as not getting one? >> you know, it's hard to say. it's, of course, a good thin if you have a drug this is now their thir approval in about a year and before, they had none. so, they now have thre therapies they could go out an sell, but you, know they hav faced questions because of these concerns about cancer, about how many people woul actually want this treatment over the gene editin treatments, and now, with that price tag coming in even highe and less risk of cancer that the fda is flagging, they're going to face even mor questions. so, it's helpful to have something, but i do thin investors are going to wonde just how helpful this really will be for the company. >> that's fascinating. angelica, will continue to follow it. of course, really appreciate your reporting on this today angelica peoples

coming up, we'll have more o the stroke approvals in fact, will be speaking with the ceo of vertex for just a few minutes here on powe lunch. but first, google unveiling it gemini a.i. model. marcus left it yesterday, no we're learning more about what it can really do cdc dot com's general alliance joins us with details abou project element and we'll talk to when analyst about what gemini cloud, or gemini coul mean for the stock stay with us wee ck'rba in a moment here on power lunch. watch how easy it is to put on new hands free skechers slip-ins. i just step in and go. sitting? doesn't matter. i don't even have to touch them. ooo, gangsta. in a hurry? there's not a faster, easier way to put on shoes.

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google shares popped earlier this week when the company showed off for the a i models, turn to gemini, and, now we ar learning the demonstration i showed wasn't exactly how it would work in the real world cbc dot comes jennifer allianc also made internal plans t learn geminis to tell people - with the goal is to get projec element to be your lif storyteller. jennifer joins us now from san francisco. pretty cool, if they don't creep us out in the process, hot, jennifer? >> right exactly john imagine if you want to us chatgpt but instead of askin it about random facts or hel summarizing tasks, you can ask questions about your family, friends, your pets memories you might hav forgotten from big milestone in your life essentially, a chatbot and storyteller for your life. well, we've learned that a

couple of teams at google have been working on just that, wit the help of its newly launched a.i. model, geminis, which i launched this weekend reported to be its most powerful a.i. model. projects all minutes was called, and that is an internal google proposal to use a.i. to help get in bird's-eye view of thei life stories through googl searches and photos. according to internal document reviewed, google photos ha more than 1000 billion users and four trillion photos and videos so, the idea would be to use large language models like geminis to ingest search results, spot pattern user photos, create even a chatbo that answer is quote previously impossible question about person's life. so, a team also demonstrated elementary that with the description that quote, imagin opening up chatgpt but i already knows everything about your life. he also hopes to be able t summarize users behaviors like eating habits, socia interactions, work, and othe

items. for user considering purchasin all from photo data. and search data. google told us this is an earl experiment that they would tak users privacy as a top priority, should it decide to rule out such features. but that's what we found, john >> google's not gonna make a trillion dollars telling peopl their life story, though it's interesting to stuck this year, alphabet stock as mostly told the story since february. and that microsoft, open a.i., you, know and michelin instrument of google sayin that so fast we, actually yo have an egg story to tell here so, it's the idea they're gonn show these two applications fo a.i. a sort of a marketing plo to raise the profile of gemini will they really drive profitability and revenue in enterprise >> yeah, that's what w understand i mean, again, it is not certain that this actually becomes product iced you have to understand, ther is an arms race right now with apple, as you know, to creat more personalized items. so, that includes photos, as

you know, in the last few years, all the tech giants have released some type of memory kind of product, where they ca surface more personalize memories from your life, fro your media from, your phone, and your devices and i think that eventuall kind of hopes to bring productivity to consumers. and essentially, then, if they have certain data that you know, they claim to have, that could be used in other ways. potentially. >> all right, they know a lo about us jennifer allies, thank you >> thanks, john. >> now despite the recent bash last, my next friends as google's gemini loved level th playing field across the broader jen and i landscape. and believe this launch will provide some tail winds in the new year, joining us is ro josée, the managing director and ceo of tech analyst city ron, welcome you are looking past the lac of hype, or something like that, what is the substance here >> look, kelly i think 2023 is going to b defined largely as googl

playing defense, or catch up catch up to make sure they hav got a large language model that searches being innovative and things along those lines when we heard yesterday, o earlier this, week with gemini is we see eight now ne foundation model that is, seem to be on par, if not a littl bit better, that what we'r seeing maybe from gpt, chatgpt at their with gpt-4. and frankly, if we could get t those levels of at least calling it even, maybe it will look better, maybe we could se a greater focus on offense recall innovation in terms o the project. so, we just heard new ways o maybe surfacing your own information on google to mak things easier or better. i think you see somethin similar and frankly, if you ca drive engagement, then you can bring advertisers, at leas appetizers can spend even more and you go back there. but i mean, long story short, think 2023 is about getting to par, and 2024 is hopefully building on top of that. that's what him and i help the do >> i guess when i look at th

two stocks, and again, havin very little technical expertis might be a help here, because look at microsoft and see clear business use case. i haven't used myself, but i have heard from some who have. there is an obviou application. you can kind of immediately pu together some revenue and some earnings numbers from that i look at google's and it is way more amorphous >> yeah. and i think that's the case fo most call it advertising based models search might be arguably the best business ever created you could search for something and you get an ad for it from a google perspective, the were able to build on top of that with they are calling google maps, with youtube, of, course the purchased in 2027 i believe. all chrome and gmail everything else. so, one of the things that google has done is just try to beat more, as relevant in ou lives as possible. vargas the first shot at that, and barred is getting better every day. search is being rebuilt, cal it, or at least recast fro every perspective. and that is a c e. that is not live in over 100

countries. so, searches evolving. i think google is trying to do that, and now, at the very least for gemini, understood that is not fully rolled out yet and i'll just coming her at some point, but at the very least, it gives us a view that okay, maybe we can see them, call it gaining back engagemen or at least monetizing a advertising tools improved fro a.i., right? agreed with consumer bas tools. agree with you one being amorphous, but that's th challenge of broad interne segments i guess >> ron, -- from a strategic perspective to me, it looks like google wo at least in 2023, by not losin shirt share to microsoft, whic microsoft wanted to grab using a.i. that was the big announcemen in february. now the, question is, it's i third place in cloud behin a.w.s. and asher it actually gained share i areas where they're behind whether you're talking about smartphones, at the high-end with android or trying to buil in kind of the nano version of

gemini or, in cloud overall, since google cloud is going to be a big part of the go to market for this, right >> yeah, don it all starts with innovation, and i don't know if we can hav a conversation and call it gamma night was not at least o par or somewhat better tha gpt. so, i think you hit the nail o the head i -- everyone was worried we woul lose, google would lose share, because of what being wa doing. because maybe even chatgpt, an what we saw with shares wa relatively stagnant. i think the reason why is ther is this halo effect around google product halo effect, where you search, we use chrome, we us gmail, we use photos, we use maps and then, the list goes on and on so, when it becomes a part o our lives, it's really hard to disrupt that now, that search, that is thei corpus around advertising an adds and usage and engagement when it comes to gdp there's a few from a.w.s., and we all know that benefits that i think asher is seeing from openai the big question is, wha

happens here in 24 and beyond, when maybe these optimization' attenuate, if amazon likes t say, a little bit more and we get to morton a.i. into the enterprise and you know what asher is doing, they are clearly seeing the benefit. i think a.w.s. is better positioned here. gc pete, they've had a few goo announcements with vertex an duets thought i. so, we should see that i think gemini can only help but you know, it's funny it's the number three player here in g c p on cloud growth slowed down quite a bit here, potentially, the celebrated in three queue an you are looking to see tha restabilize before we can star talking about the benefits o jen a.i. for gcp overall >> for now, one of the things i can't tell us is who's gonna win the a.i. wars. [laughter] >> true. >> how smart is it, really >> not smart enough to trade yet. the fda just approved to breakthrough gene therapie that could help cure sickl cell disease coming up, we're going to hear from the ceo behind one of

those treatments, power lunch, back into.

welcome back, everybody. a major medical milestone today, as the fda approves a drug t treat sickle cell anemia what makes it historic it's th first drug using a gene editin therapy called crispr. investors looking at the depending on the stocks, as silver news event as the company involved, it's verte down about 1%. crispr, seeing a decline o almost 9% today. drops elsewhere. joining us now is doctor reshm kewalramani. she is the ceo of vertex, alon with our own farm reporter jennifer peoples, to tie mor into this blockbuster news and, delicate us of here >> it's great to see you, today, reshma we've been talking about thi for a long time. i want to start with the price i think a lot of people will wonder but might this drug i two point $2 million per person explain how we got here an

what the feedback has been fro haired so far? >> it's good to see you, angelica good afternoon all it's a historic day fo patients living with sickl cell disease this is a medicine based o crispr cast nine technology. it's a gene editing medicine that's holds the promise to be a onetime curative treatment sickle cell disease is a devastating disease. people who have this described it as a mac truck hitting them and the truck going up and dow and up and down again. it's the kind of pain people describe as worse than childbirth and this is a medicine tha holds the potential to do away with all of those the overseas or v no close of crises. we believe the price of medicine to reflect the valu that it brings, and the valu that this brings is a onetim therapy for potentially lifetime of cure >> we've seen some other companies that have offere sort of a money back guarantee

are you offering any specifi arrangements with pairs, and was the feedback and so far? >> i have to tell you, we have talked to patients, physicians payers, both of the private an on the government side there is unanimous enthusias for this from patients wit sickle cell disease, because it's widely recognized a sickle cell disease, unfortunately, has bee marginalized and there has not been innovation in this fiel for many, many years and equally, the potential o cast jeffrey has bee recognized so, the feedback has bee unanimous and positive >> and doctor, if you coul sort of talk a little bit abou this it's a onetime treatment, as w understand it carries 2.2 million dolla wholesale price tag. but do we call it a cure, afte people receive this treatment? are they cured, effectively? >> you know, as a physician, i

don't use the word cure very lightly at all but if you ask our patients, i think they would describe it t you as a cure. what this medicine does is i takes a patients own stem cells, we take it to our labs, and we edit it in a very precise way, and then we return the patient own cells to them and with that, return of their own cells with this and it, we give them this opportunity to live a life without these v no collusive crises that's exactly what the powe of this crispr gene editin there if he is >> let me address what at least, for me, is the elephant in the room here is sickle cell affects disproportionately african americans, hispani americans, in this country and get, at least initially, this procedure is going to b available at high end hospitals, where those populations tend not to have access so, how many people at these prices and that this level o complexity who are afflicted with sickle cell are going t

have access to this treatment? >> sickle cell disease is disease of black and brown people, yet it is a disease, a i said, that has not had a lot of innovation. and this is the firs potentially curative approach. we have specifically opened, what we call authorize treatment centers, or atc's, where our patients are a proximity 80% of patient with sickle cell disease liv in 25 states, and we hav specifically opened out 80 see exactly in those states, where our patients are most present. with regard to the accessibility of this therapy, we are working very, very hard to make sure that all eligible patients have access to th therapy. just to give you some context, with patients who have sever sickle cell disease, but cos of care just the medical cos

of care, not taking into account the humanistic burden, is between four and $6 million over the lifetime of a patient with sickle cell disease >> incredible. i guess, doctor, my quick last question would be, what's next whether your company or others if you could do this for gen therapy, and how many othe potential cures are out ther on the market? >> the reason today is s historic is this it is the leading edge, the wave of movement from chronic therapie to potentially curativ therapies, and the first crisp based therapy to be approved i the u.s. for vertex, what's next, is we have programs in pain and in type one diabetes and in a particular kind of kidne disease and of course, our wor continues in siya. much more to come. >> thank you so much we appreciate you joining us today, along with angelica peoples and all your reporting angelica, on this issue as well there's a lot more to talk

about on this topic. the ceo of crispr will close i overtime with the exclusiv interview monday at four p eastern. >> love that show. let's get to bertha coombs now for cnbc news update >> john, an appeals court rule today, new york can keep enforcing state laws that ba firearms in sensitive locations, such as schools and government buildings. however, the panel rejected part of the law that require people applying for conceale carry permits to turn over a list of their social media accounts the u.s. circuit court's rulin is one of the first broa refuse of new gun measures since the supreme court's gu rights expansion last year in kentucky, a pregnant woma filed a lawsuit today, demanding the right to a abortion she is seeking class actio status for her lawsuit, so other women can join she claims kentucky's near total abortion ban violates he right to privacy and sel determination under the stat constitution tulsa police are sharing video

of a man allegedly firing 17 shots towards the department helicopter police say the chopper was flying over the area because o reports of shots fired that's when they encountered the man, who apparently turned his gun on them. >> the helicopter was no damaged, and no one was hurt scary. don, back to you >> yeah, bertha, thank you coming up, a regulatio situation. microsoft partnership with opening i, now facing antitrus scrutiny from lawmakers here and abroad we have the details when power lunch returns. how's the chicken? the prawns are delicious. oh, i have a shellfish allergy. one prawn. very good. did i say chicken wrong? tired of people not listening to what you want? it's truffle season! ah that's okay...

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it's time for tech check and regulators in the u.s. and u are now reportedly taking closer look at microsoft's partnership with openai. geared to bosa has more detail at west. deirdre? >> so, kelly, in the world o increasing regulatory scrutiny microsoft deal earlier thi year with opening i seemed almost perfectly manufactured. microsoft got a stake in the generative a.i. darling, i exchange for an exclusive clou partnership, opening i got the compute power it needed, and a established enterprise tec

giant with the rolodex s fortunate 50 companies and it made microsoft more powerful than ever in this a.i arms race, all while bypassing the ftc and the doj. but a month ago, when i sa lean that can speak at - on her west coast listenin store, it seems like the microsoft opening idea would b safe from scrutiny, as the ftc focused on big tech's poores insists, like whether amazon e-commerce was hurting competition. in fact, khan was directly asked if you look at the training ideals, which was something about it most of the founders that spoke to after that stop sai that to me, there was going to be action soon but now bloomberg is reporting that khan's if the c i examining the very edg investment and whether i violate antitrust lines. we reach out to the agency and got a no comment the report, though, says thi preliminary and there isn't formal investigation so, this may not go anywhere but it is interesting to think about what it tells us about u.s. regulators. they are often criticize for

being slow and fightin yesterday's regulatory battles this could signify a shift, quicker, more nimble ftc despite several significan setbacks during khan's term. these multibillion deal se mega cap tech has been strikin with a.i. start-ups won't be a easy going forward now, we've covered the structure and the question around these investments a few weeks ago. a tech check weekly deep dive, we call that mega caps, mega deals. you can find that and others a cbc dot com slash tc weekly, o the follow the q r code on you screen guys, the term to watch out fo is relevant merger situation so, knots -- merger or acquisition, but a relationship that effectivel impacts competition for th rest of the markets. that would be something that the regulators would be lookin for in that microsoft open a ideal, which you covered a lot john >> all right deirdre, thank you kelly, all of that idea to b basically makes no sense

have you heard about gemin bedrock? there's some competition it's new liam on the sho anyway shares of lululemon hitting record high, as the thre shrugs lesson. -- guidance we will speak to an analyst who is doubling down raising his price target on it stretching into it power lunch will be right back this is realtime insight i'm here with miles course, in realtime finance lever so, your latest cfo survey really showed the bigges challenges that cfo's ar facing break those down for me. >> so, the three k three key paradox that see if i think th balance. first, how you drive short-ter performance when investing for the long term? secondly, how do you drive innovation and change well managing risk and protecting value? and third, how do you develop

new skill sets and mindset's t be successful with an uncertai future ahead so, see if it's recognized the potential opportunities from the technology to new business models, and the key question they need to answer is how ambitious they want to be in capturing those opportunities, and you are the risks of jus maintaining the status quo >> in how does the current economic environment play into all of that? >> it puts pressure on short performance and cfos i speak t are clearly looking to manag cast, and the risk is in areas that drive long-term value like sustainability, technology, and talent and a i clearly has a role t play there >> how are you helping you clients navigate through this? >> so, spending your time an see if i, was thing them t define and clarify the visio for the future of their financ organization that has to be a lie to th purpose of the ambition over their overall business cfo seven important role t play, build a consensus an commitments across the c-suite to deliver against long-term strategic priorities >> miles, thanks so much sharing your insights. >> thanks, caroline. ath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep,

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cheers of lululemon up 6%, all-time highs worth about a third of nike, a little bi more than that, after bein both on the top and bottom lin the latest quarter but also, warning of the typ of holiday outlook next guess reaching that nex price target for $540 for $450 a share, saying demand growt remains solid. let's welcome in brian ankle senior equity research analyst and retail hard lines and broa lines up in higher brian, that's lulu's ability t hold price and still get decen revenue outweigh the necessity to grow at this point? >> well, yeah, good afternoon. that's an interesting question i think the doing both that's what's really quite

amazing about this story and i think this is, to, the power of this brand, and frankly, the power of th products they put out there. you know, here we are in a somewhat challenge we discuss that, similar challenge macro backdrop, an lululemon, which is a higher end, more pricey brand, it's selling products reall effectively and a whole price. i think that just speaks, again, the power this brand i think it's one of the reason we're seeing the stock net out perform so well. >> how have they done it i remember a few years back, there was this whole who shoul be wearing these stretchy pant and who shouldn't phenomenon it seems to get to the next leg, maybe, they need more of a nik level of marketing, wher they're endorsing athletes and you know, telling people wha they're all about. i don't have that feel fro them is that just not necessary for a premium brand no >> look, the thing i would say and this may sound a littl funny, because i study lululemon that for a while, an i know the company very well

from an analyst and point. it is growing up you, know they are kind of finding what they are. they're more effectively speaking to a much broader audience like you were saying, john, no that long ago, lululemon was a brand, a yoga brand really geared towards a niche market. that niche market being higher income, primarily women, who liked yoga today, if you look, if you com in with a fresh set of eyes an look at lululemon, this is muc more of a lifestyle brand. sure, they still have thei core yoga products, but they are doing more every day wear. i spent a lot of time in their stores you know, it's incredible what they're doing outdoor. you know, the bumper jackets right now, seasonal colors, in the front of the store it's what they've done i mends. mends is phenomenal. it's becoming much more of a lifestyle brand. they are basically finding out who they are >> by the way, brian, wher does the stock go from here, real quickly it's a four 92 today >> look, i turned my price tracker up to 540. i know that seems -- all-time high today, but

frankly, given the underlyin potential of this brand, thi company, i think it goes a lot higher overtime. >> 52% gain this year. merry christmas. brian, thanks so much. we appreciate it today brian nagel, says things are going higher speaking of lulu, the steers i that rally i mentioned, giving ryan reynolds on the mountai goats and boosting our cnbc' stock draft standing his team up, 34% for april good for third place, but they got nothing on charlotte flair she continues to lead the way, thanks to her picks in video and meta she has a 56%, with two months left in our contest. >> lucky all right, ahead on power lunch, a furniture flop shares of our h plunging, an internet smith traded and other merinovs three stop lunch are, up next.

welcome back, everybody. it's time for three stop lunch tonight, we are taking a loo at some of the big move for us starting with honey well, whic is down after the compan announced its purchase of ai conditioner maker carrier. i've got to mention -- their security business that but for nearly $5 million, her with our traits today is all those amman, he is a partner a wall street alliance group adele, come to the program would you be a buyer or seller of honey will >> i'd be a buyer of honey well,

because you know, this goe back to the broade conversation we've been having where the gains in the marke have been concentrated in th magnificent seven. now, we feel that companie like honey well, which hav been liking the markets, thi is their opportunity to take the breadth of the marke improving for these countrie to start to participate, and honey was a great company. we have a very strong, ver diversified industrial company a solid balance sheet. basically, dividend, refills - protests in the market is goin to improve, so - laggard like honey well will start to do well >> up next, paramount shares jumping 14% today afte multiple reports that safe guy dams and red bird capital ar pursuing a takeover of nationa amusements, which owns a majority of paramount voting shares what's your trade on paramount >> this would be a resoundin sell, because you know paramount, the stocks up, it's popping based on the sales for

potential, and then last week, based on the collaboration wit apple, both the scenarios, i it may play out, it will potentially be good for th company, but the stop in the past one month is up more than 30 per 1%. and we feel that without these clearances, a sub business stands by itself, this is very difficult business to mak money in cable tv is a very tough business in this environment >> how dare you. i mean, i do love the passio people have about paramount, one way or the other what about our h formerly restoration hardware, the stairs are down 31% no after a third quarter miss narrowing their full yea revenue. what you treat >> another, i'm afraid, anothe resounding cell, because i this environment, when the consumers are being very careful about what they spen on, they are not looking to bu expensive furniture right now, right? with people like me who have locked in a low rate, rate being up, we are not looking t move our homes, and when you'r

not lucky but running to mov your house, the need to bu expensive furniture is just no there. and we feel that mr. buffett who is free to assault out o the shares earlier, this year, was right on the money ove here so, for, us we feel that thi company is going to continue t suffer, i'm afraid so, i'd be a sailor. >> we don't work for rh, so we won't take it so personally. adele, thanks for joining us today. for giving us those trades we appreciate your time. >> you might be selling, but investors have been buying the major indices. they are session highs acros the board, that's gonna do i for power lunch. >> see you in a couple hours jo thhnanks for watching, and closing bell is up after the 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

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i'm scott walker, live from cb headquarters this breakout hour begins with the next move. for the fed, the market, and most importantly, for your money. that, after today's jobs repor and the recent rally in stocks and bonds. last car experts over the fina stretch what's in store, in th meantime, your score with 60 minutes to go, and regulatio looks like that. we have green across the board kind of been all over the map, that is the current look yields are dropping today afte the unemployment rate fell after the jobs report came out there is your pitch, green there, too 224. the yield on the ten, pretty good day for mega kept two apple is higher holding abov three trillion in market cap yet again. we will speak to top analyst here on morgan stanley in just a few moments for why hi expectations are for those