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. good afternoon, everyone, welcome to power lunch. we have got lots of big-money deals to talk about. deal monday today, a former rumored buyout to macy's to the big box. first, let's check on the market. shares of apple are lower today, despite some positive analyst

commentary over the weekend. dan ims praising his price, saying it could be the first $4 trillion company by the end of next year. dan is going to join us a little later in the program. check out bitcoin, it is down significantly right now, as you see there. by $2900. today, up by more than 147%. after that amazing run, you probably noticed by now, a new look to cnbc today. the thing you are seeing, you used to see in a different place on the screen, but we hope you will get accustomed to and like our simpler graphics. same great market. we began with a ton of dealnews across all the different spaces in business. each highlighting the growing trends across multiple sectors. first, nancy is, the stock surging today, up three, almost four dollars.

after art-house management and brigade capital offered to buy the department store for $5.8 billion. macy's sales have slumped over the past year, struggling to keep up with online competitors. then i deal in the energy sector to tell you about, occidental petroleum by the producer crownrock for $12 billion. a lot of activity in that space, of course, with both chevron and exxon making some big ticket purchases earlier this year by multiple factors of the purchase price proposed here. paramount shares moving on reports that redbird and sky dance are exploring a take over there. controlling shareholder sherry redstone has been in the market for a deal for sometime after she fought so ferociously to put cbs and paramount back together. and finally, cigna reportedly abandoning its pursuit of humana and instead planning a $10 billion stock buyback.

told you it was a lot of news today, and there is. let's start with occidental petroleum and its deal. furthermore, let's bring in neil, who heads energy research , good to have you with us. is the proposed deal an overpayment on the part of oxley for this company, they paid too much? >> i don't think so, i wasn't surprised by the deal, a little bit surprised by the price, as you pointed out. i think oxley has got a number of assets that it could sell in order to pay for this lower return in assets, tyler, >> so then, you say they need to reduce debt by about four, 4 1/2 billion dollars in divestitures, because they are borrowing a lot, i guess $9 billion in cash to do this deal? >> that's right, so you figure about 6 1/2%. obviously, if they can pay and sell something, four, 4 1/2 billion dollars in the first nine months, it will cut a big

dent in that, really helps. so, plus, you think about it, the assets are going to sell, i believe are going to be lower margin assets than these or lower return assets than the estimate so that makes a lot of sense to swap out to these higher assets. >> so, let's go back to what they are paying. 6.3 times 24 cash flow, and when you compare that with other deals, isn't that a much higher multiple that they are paying? and does this company deserve it? >> it's definitely on the high side. it is more in line with what we saw on the chevron deal or exxon deal where 24 doesn't stick out, but when you start thinking about the efficiency is, the upside, they will probably get 25, it starts making more sense. certainly higher than the number reveals, but as far as the last two big deals we have seen with pioneer, i think it is very much in line with those. really, to me, the big increase

starts at 25 point >> and the balance sheet is strong in your view to pull this off, and they seem to think so, and that they are increasing their dividends, you don't do that if you are worried about your balance? >> that's right, i think that is indicative of what they think the free cash was going to do in the near term, and number two, the balance sheet, but even with that balance sheet, it is still going to be critical for them to sell a number of assets, i'm talking billions of assets in the very near term. that's a 4 billion of lower assets is the target you have in mind. are you expecting more such deals between now potentially adhere end, and will most of those deals, if they do eventually, well most of them involve private companies, as this one is -- public companies find private companies? >> the simple answers are yes and yes. there are a number of privates

that want to cash in before the end of this year, nothing this size i don't think anything this size. i do think there is a number of deals here. houston, midland, you name it. i think they would love to cash out, anything near these prices, and oftentimes, these privates like to cash right before the end of the year. >> what is the magic about the end of the year, just to get it done cleanly or what? >> that's right, a lot of them are raising new funds for the new year, and if they can show a big gain before the end of the year, it really helps raise funds for the next goal. >> so, who would be among the potential purchasers? who do you think might be the most active here? who is on the prowl? >> i think devon is always looking out there, the big one that always gets mentioned, conoco has sort of been the big one. chevron, exxon, and now oxley has done something. conoco is sort of left out of the party, i would say conoco

and devon would have to be two of the most inquisitive ones. >> neil, thank you very much for your time today. basically, it is keep your eyes on the more news. neil deigned men, we thank you. mac now to macy's, matthew bost is an equity research analyst and investor, hall of fame inductee. not, welcome, good to have you with us. >> thanks for having me back. >> you seem to think, if i am reading your report correctly, that this deal from a couple of private investors undervalues macy's rather dramatically, particularly when you look at on the one hand, the real estate value that macy's represents, and on the other hand, i guess you would call it enterprise value of their digital selling. >> yeah, so, there are a couple aspects that we really dug in here. number one is the real estate value. we see eight to $9 billion in real estate value, you have the

trophy herald square asset, which we think is $3 billion plus. secondly, you do have a digital business at seven to $8 million in sales. now, i do think you have to be careful in terms of double counting. this is an omnichannel retailer. the real estate is important to the digital business and vice a versa, but i think the real key unlock your is the portfolio company. so, you have the macy's brand, you have the bloomingdale's brand, you also have the blue mercury brand, and then you have the digital marketplace. so, really what we were laying out is more of a sum of the parts opportunity as you look at the value of each of these different components of the macy's holding company. >> so, how does this play out? it seems to me you think this deal on the back undervalues macy's at large when you take the whole thing, the sum of the parts analysis. but wait -- what do you think macy's should do? >> look, i think that this is

part of the overall retail complex, that you can make an argument post-pandemic, to a degree, is undervalued. we have laid out near term, we think holiday is on solid footing. i think you have a return to normalized demand trends, but as you look at macy's, i mean, before today's announcement, i mean, it was trading at 40% below the multiple that it was trading at from 2017 to 2019. so, this implied deal is actually 3.8 times -- that is nearly the pre-pandemic multiple. if you look at what it was trading at from 2017 three 2019, call it roughly five times, that is a $30 stock. so, as i look at the different components in terms of real estate, digital, and the nameplates, but then more so, i

think here, you have evaluation disconnect, and they are not alone. there are other companies that we cover, more on the global brand side, that i think are undervalued in this backdrop. >> i guess the natural follow- up, and i mean disrespectfully, would be, yeah, but the world has changed from 2017 to 2019, so you can't -- it isn't fair, i suppose, to go back and applied that level of multiple to today's business. how would you answer that? >> look, distressed retail trades at roughly four to five times, that was the historical evaluation, and it is no different today. this was a self-help value opportunity, and this wasn't alone. pbh, some of the structural dynamics around nike and some of the other global brands, that they have gone through during the pandemic, to me, creates opportunity to own assets that are outside of macro. and i was really our call on

the overweight thesis for macy's, both from a fundamental and from evaluation constructs. >> all right, not, we will keep following the story and we hope we can count on you to come back and explain it to us as things develop, appreciated. >> thanks for having me. now to talk more broadly about the current dealmaking environment and what to expect going forward, let's bring in herb greenberg, editor of herb greenberg on the street, cnbc contributor. and dan is business editor at axios. herb, what do you think of all these deals? >> i think it is interesting, looking at the chart from s&p, we are at a period where this has been from the big deal standpoint, this has been a horrific year. if you look at this compared to going all the way back to 2018, you don't see much. what you see now, i think somebody mentioned it earlier, you have the end of the year push.

but you also have the situation where, think about it, you have interest rates that are at ridiculously high levels for some of these people that want to use cash or get that, and you have an economy that is totally unsustainable. but i do think there is at least potential opportunity, interesting news possibly in 2024. so, these deals we are seeing here are sort of opportunistic in your view? >> absolutely, 100%, because each one is very different. you can see with the cigna deal, with them pulling out of the deal, shareholders and companies that are being approached, of companies that have cash, are basically saying, wait a second, there is opportunity not to merge. in this case was cigna, it is clear, use the money for something else. give it back to shareholders, sherry, purchases, which is what they're trying to do, anything but telling what the shareholders perceived to be perhaps not a great price. >> this is really the big story if you have got a discretionary cash, use it prudently to invest in the business or do

buybacks and dividends and so forth, and that's when indeed they seem ready to do. this deal might not have even made it through antitrust scrutiny, might not have come herb? >> what deal is going to make it through antitrust right now? that is the big issue. obviously, any of these big deals, that is what is getting in the way. but look, i think one of the interesting things is when you look at this from a balancing perspective, there is a great start out there, net interest payments by corporations are at their lowest level since the 1970s, that is because of all the big refinancing. and we have early on, when cash was free, but now you have got this mix of companies that look good, and other companies that even if they refinance, are financially fragile. that's where i think you might see some of the opportunity going forward, some of those companies are parched because they can only go so far, so we are going to have to refinance. while this sellout, are they not worth it? i think that is where the opportunity and the story is

going to be going forward. thanks dan, pick up on this, do you agree for example that he is our opportunistic deals? >> okay, so, yes, they are. i will say the permian basin one, we have had a number of deals like this. we have got company is basically trying to grab all the best and last kind of available resource plan that exists. in general, it is interesting, herbert mentioned and he is right, if you look at the s&p numbers for 2023, m&a is down big point 22% below last year. that said, it has been pretty strong over the second half of '23 point has been kind of a tale of two years. i don't think there has been anything from the sector perspective that has been driving it, it is opportunistic, but there have been a number of decent sized deals and overall activity ever since the fed started to say it was done with rates.

>> what is your reaction to the macy's offer? >> two things, that is one sector we have seen relatively little in, kind of big retail. the thing that jumped out to me was how this thing hit the press. the original journal story said, if we can get to the diligence room, we could potentially raise the price. so, your past guess, you said this was a low price, it seems like i was very much an opening bid from the prospective buyers. they want to get more information and they are willing to go higher. that's what about sherry red's stone, what is going to happen there, dan? then herb, i'm going to come back to you with the same question. >> you mentioned that she has been kind of looking or theoretically looking for a deal off and on. one of the buyers on this redford capital partners, there kind of all over, everything is turning up redford right now, which is a relatively new firm in private equity land. there are also part of this thing right now which is going to be may be an alternative to

the deal for the pga golf, they are involved in a big british newspaper deal. they're all over, and they have been buying sports deals. >> and herb, that would bring jeff zucker back in a big way into the media business and the studio business. >> based on what i read. but i think it is another part of the story of that daniel is better than most, given that he covered private equity. a bunch of controversy around private equity obviously, is the cash they have. and what are they going to do with that cash? and are we starting to see it with some of these deals now? >> i guess that's right. it seems so funny, paramount has been in the deal world almost as long as i have been covering finance. i mean, it is split apart, it reconstituted itself under sherry red stone, it is a very interesting, epic story, right, herb? >> based on what i read. it is not in my wheelhouse, so

to speak, tyler, but we have heard this story going back to her father and the other transactions. the drama and the saga on the soap opera of the redstone family continues. >> all right, and dan, as you point out, the occidental petroleum deal, we are sort of skipping around here a little bit, as you point out, this is part of a trend in this business, to acquire the expiration production assets. >> yeah, you mentioned in your last segment, in this particular case, it is a private equity firm that is selling it to occidental. a lot of private equity firms, energy specific private equity firms basically just started buying acreage, lots of it, portfolios from various places, and now they're getting to cash in. the big strategic's are all desperate for it. they see the arrival by some, they need to buy some. the second piece of the occidental story is there going to have to use the best insurance. this one deal is going to create

smaller deals. a multibillion dollar transactions. >> thank you very much, appreciate it, thanks. coming up, dubai real estate is booming, becoming the fastest growing city in history. however, extreme heat and rising sea levels could put that booming area at risk. we will talk about that. 2+, a major-league deal in major league baseball. the dodgers on saturday signing for $700 million. we will discuss that later on power lunch. >> [ music ]

welcome back, everybody, one of the big business stories of 2023 has been labor versus industry, and one of the big worries about ai has been whether it would take jobs from humans. today, microsoft trying to get ahead of all that, announcing a new partnership with the afl cfo. >> microsoft announced the formation of a new partnership to discuss how artificial intelligence must really anticipate the needs of workers. this is a first of its kind partnership between a labor organization and a tech company to focus on aip to microsoft president brad smith standing shoulder to shoulder with the afl cio president, it reflects the company's new approach. >> it is based on a fundamental

recognition that people in the united states have a right to organize, they have the right to form a union if that is what they wish to do. so, we have adopted a labor neutrality approach, we have adopted an approach that honors the rights that people have. >> and he said the agreement also gives workers a chance to have input into the programs that are really going to define their future. >> you have a housekeeper in a hotel who is running a card through a hallway, heavy cart, based on an algorithm that isn't reflective of the way they do their work, it is not going to work and it is not going to be good for the company ultimately either, so we think workers insights, their knowledge and asked her to will be tremendously valuable on how we shave ai on the front end. >> microsoft says the deal will have three main components, during ai information with labor leaders and workers, incorporating workers perspective and expertise, and helping shape public policy that supports the technology

skills and needs of frontline workers. smith told me there is no money changing hands between the two entities as part of this deal agreed to today. schuler said her union is looking to sign similar deals with other ai companies, so workers have more of a say and how this groundbreaking technology unfolds. tyler come back over to you. >> what this deal involve only the portions of the microsoft empire or globe that are involved with ai? would it affect other things? >> right now, they are mainly focused on aip's abyss. they are talking about having microsoft engineers conduct training sessions for afl cio executives and workers, so things like that for now. but as you heard brad smith say in the sound bite there, microsoft has an entire approach to organized labor that is different to what we see in other tech companies. they are much more willing to

stand shoulder to shoulder with labor, he says, then they are to go toe to toe with them. >> interesting, eamon, thank you very much. we will take a look at some of the ships within the index point we will beac bk in just a moment. >> [ music ]

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welcome back to power lunch, we had a couple of bond auctions today, and of course, the fed meeting on wednesday, last one of the air. how are bond traders reacting to all of this? rick santelli live in chicago, hey, rick. >> hi, tyler, yes, we have had 50 million notes, we had 37,000,000,010 year notes, i gave the auction a c-. after 87 billion, what do we learn? first of all, the three or no deal right at the 11:30 auction and result, the highest highs since november 28th. and the 10 year already poisoned by the notion that investors didn't really like the taste of a three-year period that 10 year was arguably a bit better, but at 1:00 eastern right as the auction ended, we are still the highest yields since december 4th, let's call it a week.

what i have learned is you can have a first-place team and still have really lousy games. and i think that many believe that the auctions and yields have been very well behaved, all things considered. i don't disagree with that, but all of a sudden, these auctions weren't that good. end of story. all right, so we see we have $87 billion in supply and two options, we see that the equity market for the most part seems to be holding up, what do you see in equities, considering we have cpi, ppi, and a two day fed meeting that starts tomorrow? >> rick come down here, we are definitely paying attention to the rest of the week and we have seen a lot of interest in the rest of this week, but overall, it is a low and the macro sense, the market is really on edge right now, pending the outcomes. >> and now, if we see a hotter

than expected cpi at tomorrow, is that something that is going to be taken lightly or is not going to potentially have the ability to change the goodwill equities that built up the last three or four weeks? >> i think it will matter. i don't think in and of itself, it is going to be the driver to change things, especially because people are going to be waiting to see what everyone says on wednesday, but there is interest in it and people are paying attention. every bit of data matters while the fed is on the data -dependent track. >> many traders tell me that the reason equities are doing better is because many believe the fed has done it and uses are coming. if the fed is done but uses don't come, does not alter the trajectory in your mind in a large way? >> that is the part of the meeting people are paying attention to, the timing and the extent of the cuts for 2024. if the market gets thrown something they are not expecting, i do think there

would be a reaction. >> we want to make sure we pay really close attention to at 8:30 easter when we push out that cpi, because not many hours after that, 21 billion in bonds is going to hit the market, and assessing investor interest in the here and now might give us ig glimpses into the future. tyler come back to you. >> thank you very much, let's get to bertha coombs for a cnbc update. >> tyler, david ramaswamy's campaign says he was the target of death threats ahead of a scheduled appearance in new hampshire today. federal prosecutors charge a 30- year-old man for threatening at 2024 presidential candidate. court documents did not disclose who that candidate was, but ramaswamy's team said the man had responded to a text blast from his campaign with the violent messages. the state department weighed in on reports that russian opposition leader is

missing. department officials say this afternoon, they are deeply concerned for his well-being and have communicated to the russian government that is responsible for what happens to them. his team says they lost contact with him after he was believed to have been moved from a penal colony where he had been in prison since last year. and president biden traveled to philadelphia today to announce federal funding to reopen three fire companies that have been decommissioned during the recession. the $22.4 million will cover pay and benefits for 72 firefighters over the course of three years. this came as the president holds a campaign fundraiser in the city this afternoon. tyler? >> you really can't underestimate the importance of pennsylvania in next year's election. certainly joe biden recognizes that. thank you, bertha. despite the geopolitical tensions and the heated chip race, don't count china out as

a potential boost to apple's stock. always fun to hear from dan ives, he is going to explain come next. >> [ music ] that first time you take a step back. i made that. with your very own online store. i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first. godaddy. ♪♪ nothing like a real tree. ♪♪ oh, fudge!!! oh, fudge!!! ♪♪ the holidays are joy, except for all the snow, slush, salt, and pine needle catastrophes...

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welcome back to, everybody, to power lunch. it has been a strong year for apple which shares up by nearly 50%. shares are lower today. our next guest is naming apple his top 10 pick for 2024, citing iphone growth, china resilience, he is also raising his price target to $250 from $240. do i have that wrong, dan? i have heard a lot of people kind of questioning apple, which is a polite way of putting it, but not you. >> i think it has been a heated stock this year. you look in terms of words about iphone growth, china, the dow is really going to be the demise, and cupertino, i

actually think they are going to a renaissance of growth, in terms of iphone units, services now double digits, i think it is now starting the next phase of the growth story. we think a $400 trillion -- $4 trillion in market cap. >> how much of a gahan would that be from today? is it over three today? >> a little over 30%, but tyler, i think the big thing, it is really services. i mean, services, we think is worth 1.5 to $1.6 trillion, still being massively underestimated. >> what about this iphone 15, how hot a product is it? how much market penetration is it likely to experience in china over the next 12 months? >> i could tell you from our tracks in asia, even over the last 24, 48 hours, there have been no cuts to supply-chain, and that is important, because it shows the china story is much more resilient than even

we thought. that is about 20% of the upgrades that are going to come out of china. there are 100 million iphones based on our estimate of window upgrade opportunity. china is going to grow, and i think overall, this is turning out to be a really good holiday season. >> renaissance of growth in cupertino. not many people have been saying that, dan. >> a look, i think ultimately, if you go into this year, it was iphone growth slowing, the china worries, that's what was ultimately going to haunt the stop. i think many were calling for a $2 trillion market cap. i think the reason we are here is cook, then golden, over 2 billion ios devices worldwide, a massive installed basis, 25%

have not upgraded their iphone in 4+ years. that is the key and that is ultimately why they continue to have the top of the mountain and big tech. >> i thought i had done somewhere, it probably was this morning, i have got into that age. i can't remember why i went into student rooms in my house, but that is another matter. i think i saw something that said cook is on the prowl for a new hardware device. what would that be? and is that true? >> i think you have seen some changes on their team, their on the offensive right now. we saw a vision pro, i think that is ultimately going to go into something that is going to look like sunglasses two years from now, but we continue to think it is about the apple car in 2026, that would be an oem partnership, going to be the next big thing, along with what we view as an ai app store. let's are you a nittany lion,

dan, is that what i am seeing over your shoulder? >> we are. >> my son applied there. we will hear and a couple weeks. dan ives, thanks a lot, appreciate it. coming up, rising risks, dubai is one of the fastest growing cities in the world, but climate change could undermine its burgeoning real estate boom. we will explain how, when, and why when power lunch returns. next [ music ] ♪everything i do that's for my health is an accomplishment.♪ ♪concerns of getting screened faded away♪ ♪to my astonishment.♪ ♪my doc gave me a script i got it done without a delay.♪ ♪i screened with cologuard and did it my way.♪ cologuard is a one-of-a-kind way to screen for colon cancer that's effective and non-invasive. it's for people 45 plus at average risk, not high risk.

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the network with 24/7 built-in security. chip? at&t business. welcome back to, everybody, final negotiations now underway at the united nations climate summit in dubai, there has been plenty of controversy over the global event being held in a major oil-producing nation, but there is also a lot at stake here for dubai's own future. diana joins us from dubai with the latest. hi. >> hey, tyler, dubai is one of the fastest growing cities in history, it's compilation more than tripling since the turn-of- the-century.

recently, has seen an influx of wealthy chinese buyers did district pandemic protocols, and wealthy russian buyers after the invasion of ukraine. but there are risks to the city from climate change. it is a rare piece of sky in dubai that doesn't have a crane and it, on the mainland and on a man-made island which boasts some of the city's most expensive residences and resorts. the skyscrapers just keep going up, but much of that pricey real estate and its value are at risk from global warming. >> [ music ] >> reporter: this is what parts of dubai could eventually look like with three degrees celsius warming above preindustrial levels. even if countries adhere to their current pledges, the world is now on track to reach 2.9 degrees warming sometime this century, according to a recent u.n. report.

add to that already more intense rainfall as the atmosphere warms. >> year they never really built sufficient drainage, so even just a few weeks ago, there was massive flooding actually, and just a little bit of rain can do a lot of damage in the streets here. >> reporter: still, real estate here is not only rising, it is selling. home prices up 19% from just a year ago. >> we have witnessed phenomenal growth over the last two years. >> reporter: the executive chairman of omnia, a dubai real estate investor with a $10 billion portfolio. building luxury residences like this one with resale units starting at $10 million. >> when it comes to dubai, i think the government has taken a lot of initiative, all the way from protecting the environment all the way o building and populating a much better climate environment to protect the city. >> [ music ] >> reporter: city officials have already put in place new heat restrictions for workers and they are expected to

improve infrastructure for drainage. as new construction goes up, they are using new materials that don't add to the urban heat effect and working on new ways to will the city from architecture techniques and wind flow. >> really, the idea of flooding in dubai is kind of crazy to me. you think of it as a desert kingdom. >> reporter: yeah, you do, remember it is on the water, but it is really the warming of the atmosphere, which we see across the u.s. all the time, it creates a much heavier rainfall. you see this very intense rainfall in a very short period of time, and the drainage system here wasn't built for that, it is the desert, they weren't expecting that. >> let's talk about what may come out of the cop summit. i think i heard over the weekend some dissatisfaction among some parties there that the sort of concluding statement is going to be a bit more watered down, in terms of having a goal to win the world from fossil fuels.

>> yeah, and we actually got the latest draft report tonight, you remember it is tonight here, even though it is midday where you are, but the latest draft report was very, very disappointing to a lot of folks here, who what were looking for stronger language on reduction were phasing out fossil fuel emissions. in fact, the language in the draft basically says countries can do whatever they want, and that is a very watered-down version of what was expected. now, there will be negotiations into tonight and for tomorrow, and most cops never end on time, although the leader here has said he wants to wrap it up tomorrow, they have got other events that will be going on at the expo where the cop is, but there will still be many more negotiations going on, so as they say, it ain't over yet. >> diana, appreciate it. coming up, trading places, a dozen stocks either entering or leaving the nasdaq 100 today. we will trade a few of the names being added to the index, free stock lunch after the

break. >> [ music ]

all right, welcome back, everybody, time for today's

three stocks, we trade three stocks that are being dded to or taken out of the nasdaq 100. here with our trades, malcolm, cic wealthy executive vice president and cnbc contributor. malcolm, welcome, is zoom part of that and will the nasdaq 500. it was the pandemic darling, was the luster gone now? >> yeah, tyler that one is a self i'm not surprised to see move from the nasdaq. during covid, it was a great name that provided an essential service. since then they haven't found a way to pivot away from the one singular product they have, their video chat service. i think they are in danger of names like microsoft, google, who sell multiple part projects to the same and -- continuing to take market share and not leave much less on zoom. >> are they an acquisition target potentially? >> i think it is a great

acquisition target for someone who doesn't already have their own video conferencing service. i would look out for that in 2024 for those rumors to start floating around. up next another pandemic darling, doordash added to the nasdaq 100. shares are up 2%, your trade on dash? >> doordash i consider a hold. coming out of covid we saw a trade down as far as demand for the services, folks were moving around and willing to pick up their own things on their own. they started showing a great unit economic -- we saw something like 27% increase in revenue. my concern is the consumer is slowing down as much as we think they might be, folks are stretched budget wise, we're seeing for a one hard case withdrawals during hard times. that's gonna impact doordash, one of the very first things are gonna cut as a consumer are the convenience items, not

necessarily the stables. doordash, i wouldn't go build a position today, but if i own it maybe i would hang on to it hoping you get some sort of soft landing. >> let's move on to cd w corp, being added to the index, shares are up a percent today what's your trade on that one? >> that one i consider a by, there is a trend happening here with this one, it's impacted by covid in the sense where the world initially stood still in companies needed to send out laptops different docking stations, those sorts of things to their employees. for about three plus years removed from that, more entering that replacement cycle with the same companies will need to start trading in the older models for new ones. cdw it's perfectly positioned to capitalize on that increase enterprise from small to mid sized companies. >> malcolm, thank you very much. we appreciate it. we have a bye, we have a cell, and a hold.

that covers the basis my friend. thank you. still ahead, the 700 million dollar man. the new record setting contract that will change the economics of major league baseball maybe four of all. we'll discuss with shohei autonomy when we return. autonomy when we return. [phone: starting route.] technology helps us navigate to work. [phone: go straight.] but, to navigate the complexities of modern work... [phone: turn left.] ...you need more than technology. you need cdw. [phone: you have arrived.] so we'll implement cloud based microsoft modern work solutions like microsoft 365, teams and azure, so your teams can collaborate with zero trust security anywhere. [phone: destination ahead.]

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today. and not one that's been rocking the sports world, the dodgers from l.a. agreed to play shohei ohtani $700 million over ten years. it sounds like the money you throw at a corporate buyout. more on this historic deal and what it means for the business of baseball joined by -- mlb.com executive reporter. >> reporter: good to have you with us. >> how much of the $700 million it goes after ten years. how much of it is backdated or deferred money? >> the actual details of the deal that have not come out yet. he hasn't passed the physical, they haven't made the official announcement. sources tell me that the majority of his salary, 351 million, 400 and 500 million, is gonna be deferred beyond the ten-year contract. the reasoning is very simple, the more they differ the last the present day value of the contract is and that's what the doctors need to pay in the competitive balance tax. rather than playing 7 million a

year towards that whatever the present day value is that's what they'll be doing and it was shohei ohtani's idea -- to help the dodgers stay competitive in terms of being able to spend money another players. >> it effectively cheapens what it is counted against that tax. >> yes, his representative said, hey, we have 700 and $1 million, the largest contractor north american sports history. >> how does baseball pay that kind of money and still make money, i'm sure they're making plenty of money? >> that's an interesting situation. they >> may need to merchandise the hell out of him. >> he's the biggest star in the world as far as baseball is concerned. i imagine the monies that the dodgers will make an sponsorships from japanese corporations alone will pay for a big bulk of that contract. the angels for the last team was estimated they were making $30 million a year just in

japanese sponsorships. the dodgers now that he's won two mvps and will be the face of a franchise, and a franchise has pretty good names, they'll be leveraging that and big sponsorships. unlike most other players, aaron judge signs with the yankees there are 300 -- >> $306. >> there isn't a whole country worth of sponsorships coming his way. the yankees have already made sponsorships off of judge. will ohtani being revenue to the dodgers, which wasn't there for them and it's gonna help pay for -- >> why did the dodgers get sponsorship money that is really ohtani money's. ohtani whenever he appears in a dodgers uniform. >> i don't know what ohtani's cut on his own spa sure ship dealer -- we see him here in america, new balance adds all the time. i'm sure his face is gonna be plastered on billboards all throughout l.a.. he has enough japanese marketing and spotters,

opportunities of his own, that on the wall behind you are the payrolls of one, two, 38 teams that will pay less this year than shohei ohtani's annual value of his contract, 70 million. what does it do to come to the competitive balance of baseball? do we need to worry about that? the orioles won their division. >> the orioles benefit from having young talent that's coming in the league, making the lead minimum, those guys are three, four, five years from now. someone's gonna pay serious money whether it's the orioles or -- the dodgers have been a big spending team for a long time, the yankees, they're big spending teams that are gonna look at other ways to get rid of contracts of players are open to doing it. >> this was the big fall, who is left out there? >> another picture coming from japan name -- he's gonna be the next big domino. he's expected to get a contract

worth 250 million despite never having pitch in the big leagues. ohtani was the first big one. >> back to ohtani, he's coming off an injury so he won't hit next year? >> he's open to resume pitching in 2025. >> mark, thank you very much. thanks for watching power lunch, closing bell will start in about five seconds from now. see you tomorrow, everybody. welcome to closing bell i'm scott walker. here we go to the new york stock exchange, the make-or-break begins with a make-or-break week for the markets. the last fed meeting of the year under way less than 24 hours. so much potential riding on that outcome. we'll ask our experts during this stretch where your money is likely to head from here. in the meantime, the scorecard with 60 minutes to go, regulation looks like that will start stocks, they're largely hanging in there. not giving much of anything back over hitting the 52 week high at the end of last week. the dow is outperforming, check remains red, nasdaq has gone