welcome to "power lunch," everybody. alongside morgan brennan, welcome, morgan. i'm tyler mathison. coming up, we're 24 hours away from the fed's decision on interest rates. no change in rates expected. but with another tame inflation reading this morning, or relatively so, when ratescould start to come down. plus, ai is transforming everything, including banking. we'll talk to an analyst who is looking at the regional banks and breaking them into ai leaders and laggards. names you need to know coming up. but first a check on the markets with the major averages trading today at multi-year highs. highest level for the dow, s&p and nasdaq since 2022. led by financials, materials and healthcare sectors for the s&p. the maker of fortnite doing a victory dance this morning. epic games winning a lawsuit against google which could have broad ramifications for the app store model, major legal decision there. more on that coming up. shares of oracle are sharply lower after releasing results

the company missed on revenue and guidance indicates cloud growth could be slowing. more on that coming up in three stock lunch. but we start today with the markets. one day ahead of the big fed meeting. wall street digesting another round of inflation data this morning and looking for signs as to what the fed will do this time tomorrow with rates. two guests joining us now, both think rates are likely headed lower, but not because of inflation. joining us to talk all things market, economy and fed, let's bring in brent shute, chief investment officer with western mutual management and kamal, kamar, president of kamar global strategy. you think the fed is probably going to stay where it is. you think rates are going to come down next year. it said in the intro, why, if it's not lowering inflation? >> because i think you're likely to see a recession. to me, inflation is not dead. the fed is not going to raise

early because they don't want to repeat. i know there was low inflation data this morning, but if you look at the nfib survey, 34% of small business owners plan to raise prices in the next three months. that is the highest level besides recent period going back into the 1980 time period. compensation plans are still high. labor market is too tight, which the fed wants to make sure fed doesn't drag it back higher and that means they stick around too long and keep that liquidity tourniquet which leads to recession in the beginning half of 2024. >> with we go back to the previous screen we just had on for brent. i want to get clarification on whether you foresee a soft landing or recession. you see a recession coming? >> i do see a recession. i see a soft recession. i see one not as deep as what people fear. i think it's likely to be soft because the consumer is still in pretty good shape, even after you deteriorate on the consumer balance sheet and also see a fed that can pivot because inflation

will be burned out then. i think they can pivot and hopefully help cushion the blow as you pugs into the back half of the year. >> where are you on this soft landing v recession argument? >> tyler, two or three things. one, i think it is going to be a harder landing than what we just heard. and the reason is that we have had substantial increase in the monetary expansion as well as zero interest rate being kept for too long a period of time. and from that, when you tighten, you're going to have a pretty serious response from the market. that's the first point. second, interest rates will come down, come down sharply, in 2024. but i don't think it has anything to do with inflation. it has to do with the fact that as the interest rates will increase by 5.5 percentage points over the last 17 months, something is going to break in the system. my top candidates are regional banks. we had the first crisis.

i was looking for a credit event for the last year. the first of them happened in march. i think you may have a second or third event also happening within the next six months. and that will cause the fed to cut interest rates as it always had. even in the month of march, when we had three banks failing, recall that the fed switched over from quantitative tightening to quantitative easeasen i ing overnight. if they can do that, or if there's a crisis in the commercial real estate area, expect the fed to react even more strongly and that's what brings interest rates down. that's what ends quantitative tightening and puts you in the quantitative easing mode. so the reasons causing them are very different from talking about inflation. and the reason, tyler, is that the last mile as we keep talking

about is indeed a very difficult one. i have been student of monitoring history for 50 years. i haven't seen coming down with a soft landing. >> okay. brent, you're both basically saying that you anticipate recessions next year. maybe one steeper than the other. brent, it raises the question, are markets prepared for that possible outcome in 2024? as an investor, how do you position yourself for it? >> no. i don't think markets are prepared completely for that. i think large cap stocks, for example, have been the hiding place of many investors who now don't believe there's going to be a recession. i think the recession will actually cause some consternation and declines there. i think the good news is that more economically sensitive parts of the economy, small and mid cap asset classes have discounted some sort of recession. that does not mean they won't falter during the recession. but i think longer-term investors should be contemplating positioning more towards those, especially when they let a recession because

they trade at 12 or 13 times earnings that have already been marked down some. that's where there's some good news. plus the reality we both agree that bonds offer value at current yields because we do think that a recession is likely and that will be the impetus for rates to push lower in the coming quarters. >> sri, is that how you see it? is fixed income the place to be? if so, where specifically? >> i have been saying the 10-year yield was 5.2. the peak in october, morgan, it is a great time to enter and you're going to get a capital gain from it. and even today, at 4.2, after the rally that we have had i think fixed income looks very good. short-term, the 3-month, 6-month is a good place to park your cash rather than be in a bank deposit. so you have a twin situation here. on the one hand, fixed income is very good for investors.

it could face a clearly a head wind. second, on the other hand, in terms of banks which are looking for deposits and paying a very low interest rate relative to treasury bills, they are still at risk. so that's why i think anything risky for the banks is going to be very positive for treasury yields and for capital gains. i don't see equities gaining much. >> okay. thanks for joining us and kicking off the hour with us. >> thank you, morgan. >> thank you. bond yields are flat today following the cpi day ta and ahead of the fed decision tomorrow. rick santelli is in chicago. he's watching the markets. he's in the pits. he's got more. >> yes, morgan, i'm always watching the markets. i was particularly interested in the year over year today cpi. 4%, second month in a row, well off 6.6% historic high. as you look at the chart,

there's no arguing. it's come down. but the issue is if you open the chart up to a 5-year chart, two things should jump out at you. today's 4% is the lowest in 30 months. may of 21. but that also means it's been 30 months since this metric was under 4%. so it is still running on the warm side. and we saw on the monthly numbers that core was up .1th hotter than headline. you'll look at 30-year bond chart, it shot up. 1:00 p.m. eastern rates move down because we had a much better 30-year bond auction today than we did the last time we had one because the last one was a disaster. this auction was the best of breed, 3s weren't very well received. 10s was below average. but 30s, 30s was slightly above average. i do think auctions are going to continue to be a feature because i think debt and issuance will

continue to be features. if you open that 30-year chart up for one week, you should notice we're about 10 bases points off our intraday cycle low test at 520. we're currently trading at 530. tyler, back to you. >> rick, i want to ask you the question i should have asked you an hour ago. and it didn't come into my head in time. the month over month number went, let's see, it went up a little bit on cpi. but the year over year number came down. explain that to me. is that because fuel prices came down or is that because a high number a year ago fell off the measuring period? >> you know, it's actually a little bit of both. year over year is definite ly affected 12 months ago. the headline was up a month. it should have been unchanged. year over year headline did have a warmer aspect to it. that is the only metric, the

only metric that was less than last month. so you're absolutely correct. but the other issue is that we're at 3% in this metric in june of this year. so, even though it was a bit cooler, it's been even cooler than it was today. if i was looking at this -- all these numbers today, tyler, i wouldn't be nervous about inflation. but it certainly isn't better than the report in november. >> yeah. it's not like spike the ball in the end zone great, right? yeah. >> exactly. and i think that, you know, once again, thank you steve liesman. he like med calling it a roar shack because almost every guest that we've had on today kind of liked today's numbers. and i'm not saying that inflation is looking super hot. but it really hasn't changed much to the downside. if your target is 2%, i'm sorry, 4% doesn't equal 2%, not even with new math w. no. and he also complimented you for being a tough grader, which is a very nice thing. rick, thanks a lot, man. hope for a landmark deal hit

a roadblock at the climate summit in dubai. let's get to di in dubai. hi, di. >> reporter: hi, ty. look it's just after 11:00 p.m. here at cop and we're now being told there will not be a new draft of the climate deal tonight. the last version released late monday totally dropped language to phase down or phase out fossil fuels. it just said countries should take action that could include reducing their production and consumption of fossil fuels. this is a major blow to those who expected ambitious action to slow global warming. reactions flooded in immediately. representatives from governments, policy groups, ngos. one called the text a nightmare of weak proposals and internal contradictions. former vice president al gore posted on x that this cop is on the verge of complete failure and that the deal reads as if opec dictated it word for word. he went on to say, it is deeply offensive to all who have taken part in this process. now late this afternoon, there was a protest here on the cop

grounds. we have not seen much of that at all in the past few weeks, even with 70,000 in attendance. but the frustration is clearly raw here tonight. the cop 28 presidency, which is led by sal tan the ceo of the state of owned oil company called the draft a huge step forward to that one analyst responded, i'm not sure which direction that step would be in. we have not heard from jabaar at all today, tyler. >> if i'm remembering correctly, next year cop is in azerbaijan, which is also a heavily petrol influenced state. is there any controversy over that? >> reporter: yeah, well, expect that to start soon. the focus of course is still here on this cop. the next cop is not in some minds as important as this one. this one was all about something called the global stock take which was a report card on the paris agreement that's required every five years to see if the world is getting close to that 1.5 degree goal of warming after

industrial levels. and that report card was an epic fail. this cop was supposed to be a reaction and action to that global stock take. so, really it's all about this one. the next one not in anyone's sights right now. >> diana, thank you very much. diana olick reporting. well, coming up, an epic loss for googoogle. a san francisco jury finding against them. do regionals need to bank on ai? why one analyst says those stocks will lose market share if they don't adapt to the new technology. ♪ 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?

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welcome back to "power lunch." the maker of fortnite securing a flawless victory over google in court and the decision could have big implications not just for google but also for apple. that's the topic of today's tech check. let's bring in deirdre bosa and steve kovach for more. >> this challenges the idea of google and apple as gate keepers. luther low has been one of the most vocal critics of threat of

tech. i spoke to him in his first broadcast interview in this position. he pointed out that the epic ruling came from a jury. so, they understood the complicated material and they were able to make a decision. he says that could have key implications for the other anti-trust cases that google is listening. have a listen. >> we're learning that the emperor has no clothes when you get into these documents and the plaintiffs or government are able to unpack the arguments to a reasonable set of humans and they see how much these large firms have been kind of egregiously putting their thumb on the scale. >> now, he also believes that apple could be next. here is why. >> the other interesting thing about both of the google cases that happened this year is that they inadvertently put a lot of spotlight on apple's bad behavior. and i think the walls are sort of closing in on apple because the epic case was all about how

google is self dealing and treatment of developers with regard to the google play store, that complaint has been primarily mounted against apple. and i just think that if you come up with a solve for google, it's hard to not turn to apple and say what are you guys going to do. >> so luther was involved in another tech battle that we talked about just yesterday. the blue versus green bubble, android versus apple, messaging battle. he says that little tech is on the march and the epic ruling is another win for that camp. and we have seen more sort of cracks in these walled gardens just over the last year or so. so i think the question that this epic trial and ruling brings up is how much more is there to go? who is next? >> how is this -- how is this likely to affect google and apple? is this -- i can see how big it is for epic. how epic is it for google and apple? >> yeah. epic represents a group of so-called little tech. they're not that little, but it's billions of dollars in

market cap versus trillions of dollars in market cap. that's why we call them little. but epic is fighting for something that many others have fought for as well, including spotify, match, yelp and that is for the gates to come down a little bit. so that's why i say that this really sort of undermines the argument that apple and google have these app stores or ecosystems that are supposed to be secure and keep users safe, but it also the little tech would argue punishes them by charging them higher fees or taking a cut of their revenue or profitability. so if epic falls, you could think that others are going to use epic for their own arguments to get lower fees that they have to pay to apple and google. >> that's where the affect could be snowballing a bit for google and apple. >> right. >> to me what's interesting about this is epic challenged apple, too. the results have been more mixed. in that particular case a jury was not involved. it was just a judge moving forward with the decision. with this it was unanimous with a san francisco jury. and i just wonder how much that

sets the stage for future challenges as well. >> it's part of it. google will appeal. this is by far not a done deal. >> we're very early. >> months or years to shake out. you mentioned the apple case. supreme court is going to decide next month whether or not to take up that case. both sides are appealing that, by the way. epic wants to win the counts that it lost. apple wants to win i think it was one or two accounts that they lost. so that's all going to be litigated, too, potentially in the supreme court. if that happens, we'll find out next summer how that plays in. also want to point out there's a little more difference between these two cases than just jury or the judge. it's also this idea that google painted itself as this open platform. you can side load apps, meaning you can download apps directly from the internet if you want to. that's true. you can use other app stores, for example, samsung has its own app store. that's also true. but what kind of goes unsaid from google is they cut these special deals with these

manufacturers to make google play, the app store for google devices, the default for app distribution on those devices. >> on an android. >> so effectively turns it into just an apple device. so the contract you might have or implicit contract you might have when you buy an apple device, you know what you're buying into when you buy into an android ecosystem and tell you it's open, you can use any app service you want, that's technically true but in practice not as true as google makes it sound. so that was part of the crack in the case that google had just now. >> all right. thank you very much, steve, and deirdre, thank you very much for being with us. appreciate it. further ahead, play time over for the markets? cuts continue across multiple sectors. that would be job cuts. hasbro laying off 20% of its workers. we'll discuss that name and other key movers in three-stock lunch later this hour.

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♪ welcome back to "power lunch." oil down 4% today. let's bring in markets and energy reporter pippa stevens now. pippa? >> so this is because of the

latest cpi report from this morning with fears that the efforts to curb inflation will ultimately cut demand for crude and petroleum products. i've been told there's been heavy fund selling thanks to technical weakness and also this growing sense in the market that the cuts from opec and its allies, voluntary production cuts just really lack any sense of credibility. and so none of these head winds are new. but i think what's telling here is the lack of anything positive. so with all these head winds mounting over the past seven or so weeks, why would you enter this market with no bullish catalyst on the horizon. however, for consumers it is good news in the gasoline futures are now below 2 bucks on pace to close below 2% for the first time in two years. the national average is $3.14. we could get below $3 by the end of the year. it is some good news for consumers there. >> it's incredible to see a six handle on wti crude futures to your point. we'll switch from oil to so-called clean energy. that trade was a big loser in

2023. unless you were short. where do we stand now? >> yeah. so there were heavy losses really across the board this year. and those who bet against clean energy are in the green. so looking at the components in the invesco etf ticker pbw and excluding tesla, they made $6.5 billion this year. that means gains of 36.5% while the fund itself is down 30%. now, drilling down on individual names, ev maker fisker is the most heavily shorted name in the fund 48% of its float. sun power and sunova round out the top five. they make capital intensive projects more expensive and future earnings less attractive. and this has caused investors to pull money from the space at a record pace year to date 188 million from the invesco solar fund and 1.06 billion from the clean energy fund. that's the largest outflow since

each fund's inception back in 2008. so a lot of heavy selling there. no love for clean energy. >> how much has rising interest rates affected these stocks? >> everything comes down to rising interest rates. you can see that specifically in for example the residential and solar names. >> capital intensive. >> exactly. and betting on their future earnings. rates are higher, those look less attractive. >> pippa, thank you very much. pippa stevens. well, let's get over to christina parse nevada louse. >> the resolution would be nonbinding but would represent global request. the vote comes as president biden said today israel is losing international support because of indiscriminate bombing. this past summer was the warmest the arctic had on record, according to record card released today by the national oceanic and atmospheric

administration. temperatures are rising four times as fast in the arctic circle than anywhere else in the world. fanatics is giving us a look at what could have been if tom brady pursued a baseball career over football. the company is randomly dispersing 162 tom brady rookie cars. half of them signed in the tops 2023 draft set, brady is featured in a montreal expo's jersey because the team selected him in the 18th round of the 1995 mlb draft. morgan, i probably would have seen him had he gone and been part of that team because, as a child, i went to many expos game given i'm from montreal. >> now you have to get your hands on one of these cards which i'm sure will be highly collectible. >> it has a bigger significance to me, but i have no luck. i'm not even going to bother. >> christina, thank you. >> thanks. as we head to break, a quick power check on the positive side.

centene boosting stock buy back plan. those shares are up about 3% right now. the negative side, oracle, sliding. erevenue coming up short in three of its operating segments. that is your power check. those shares are down big. reha12%. we'll be right back.

news out of netflix. insight into who's watching what and how much ted is publishing a new engagement report. julia boorstin has the news. julia? >> tyler, that's right. netflix co-ceo just unveiling the company's first-ever report of viewer engagement. key headlines here. netflix's success is spread out over 60% of titles released in the first half of the year reached the top ten viewed list. and 45% of viewing was from licensed titles. 55% from netflix originals. the company saying the diversity of their hits illustrates netflix's ability to break out new stories, stars and franchises. ted saying that the lack of transparency around data had an unintended consequence before of creating mistrust, saying now,

quote, this is probably more information than you need. but i think it creates a better environment for the guilds, for us, for the producers, for creators and for the press. now this decision to reveal how many hours were viewed of every title watched for over 50,000 hours comes after the writers and actor's guild secured compensation bonuses based on streaming success. just to point out a couple of the most-watched titles in the first half of the year, the topmost-watched title the night agent, 812 million hours watched. ginny & georgia, 6 65 million hours watched. the glory 622 million and wednesday in fourth place with 508 million hours watched. this is massive engagement. massive numbers for stock which is up 46% in the past year on subscriber growth thanks in part to the company's crackdown on password sharing. tyler? >> i'm a little surprised. i'm mott surprised at all that i

don't know any of the titles you just put up there because i am that uncool. and that unwith it. but i was a little surprised when you said that, i think it was, 55% of the viewing was of netflix originals, 45% of non-netflix product. i'm surprised that they are as -- i guess potent a force in new production as that metric would suggest. >> well, yes. but you also have to remember that it's not just u.s. language content. if you look at those top four most popular shows, one of them was a korean-language show. so i think you have to see what they've done with shows like "squid game" they have shown they can create originals in other countries and have those shows travel and be watched by viewers around the world. and i actually think it's interesting. netflix has been investing a huge amount in original content, series, movies, et cetera, but they do still rely about half of their viewership is on that license content. so this has been a big priority for them, tyler, not wanting to

be reliant on that licensed content. i think it's probably a win for them that over half -- just over half is now their originals. >> it does seem like investors are grappling with these new metrics. the stock is only up fractionally right now as you break all of this done, julia. what does it do -- does it have a direct impact on the cost of content for netflix to have greater disclosure like this? >> you know, i don't know it has a direct impact on the cost of content but may impact the way analysts model their expectations for netflix. the fact that this is not a company reliant on just a couple big hits in every country. this company dispersed success. i think is a positive thing for netflix. if you look at what has really driven the stock's growth this year, it's the success of the crackdown on password sharing and the fact that they know they could charge more, they can get people who were free loaders before to start paying and people would keep watching. when you see numbers like these,

hundreds of millions of hours watched, it really explains why people are willing to keep paying if they -- or to start paying if they had been getting it for free or to pay more if netflix raises prices because they do have that incredibly intense engagement, just those numbers are just massive. >> yeah. value proposition. we'll start looking for some of those analyst reports now that we have these metrics. julia boorstin, thank you. still ahead, cashing in on ai. banks are using cutting-edge technology to expand their business models and bringing even bigger bucks. we're going to discuss when "power lunch" returns. ♪

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the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ welcome back, everybody. generative ai generating opportunity in the labor market with job posting climbing 6,000% this year. kate rooney has more. kate. >> that's right, tyler. workers want to get in on the buzz around chatgpt and generative ai. a surge in interest in ai-related to jobs.

searches that include ai were up 20 fold. the ceo tells me there's not nearly enough jobs, though, available, to keep up with that demand. >> so there's about 500% increase in the number of jobs that mention generative ai. there's about a 6,000% increase in the demand from job seekers for these jobs. but there still is, i think, a mismatch the other way in that the total amount of demand for ai talent far outstrips the number of ai professionals. >> it is still a small subset of overall job searches. it's less than 1% at this point. indeed also pointing out a surprising resilience this year in that labor market despite recession predictions and the fed's tightening, even in tech where we have seen waves of layouts and steep valuation declines, workers have largely been able to find open positions. certain areas, though, not holding up as well. software development job postings down 51%. information design down 44%. mathematics down 40%.

these are also sectors that boomed during the pandemic. some of that is mean revision. also the areas indeed says are the most at risk for ai. and more about corporate belt tightening not the imminent threat of ai. guys, the bay area, where i'm sitting right now, it's way underperforming. job postings are down 30% compared to a national average of 16%. indeed says it's likely due to about half of the jobs listed here having a remote option. back to you. >> that's really interesting. i do want to go back to this, though. where we are seeing the bigger job postings or i guess drop in job postings that aren't ai related, how is it those perspective employees to be able to switch gears and apply the skills they already have to some of these more ai-generative ai focussed openings? or is there reskilling involved? >> yeah, you would think software development, mathematics are things that go hand in hand with generative ai. it is sort ofa broad term, right, if you can interact with

generative ai, find a way to use it and really become proficient in chatgpt you're likely to become those opportunities. those skilled workers, those talents that you have are likely transferable and then you're also seeing in tech a lot of layoffs but those people are, for the most part, able to find other jobs elsewhere. and so you're not seeing it really show up in the numbers. people may be going through layoffs, but they're able to find another option out there. interesting mismatch, i know you mentioned ai. the other thing is mismatch in remote work. indeed pointed out the surge in people searching for remote work, not nearly enough remote jobs throughout. also seeing the impact of return to the office out there. employers are not as eager to list those jobs that might be remote. >> key point. kate rooney, thank you for joining us. >> thanks, guys. big tech isn't the only industry reaping the benefits of ai. u.s. banks also taking advantage of the tech in a much bigger way. so much so that our next guest says ai is destined to turn the banking business model, as we know it, quote, on its head.

but still he points to one branch of the sector that dragged its feet on ai adoption and says is at risk, great risk of falling behind in the digital age of banking. for more, here is steven alexopolis. where are we seeing the adoption happen quickly within the sector and where, to the use the we just teed you up with, where is it not happening fast enough? >> yeah. hi, morgan. you have to start a conversation on data. and banks sit on a treasure-trove of data. but the question is, you have clean data or dirty data, right? do you have data that's reliable, usable. because you could go out and put state of the art ai solutions on your dirty data and it's going to do nothing. so that's where you need to look. we just published a lengthy report today, most of the regional banks are way behind even on having data ready for ai. >> is that typical of the smaller banks, the regional

banks, when you see these moments of major tech adoption? or is this anunusual circumstance given the fact that -- and this is particularly true for the regionals, we just come through this aggressive fed tightening, hiking cycle that we know has royaled the industry broadly? >> yep. so it's a good question. i covered the banks for almost 24 years. and for that entire time people have been saying, oh, with this new technology, smaller banks will not be able to spend enough. so they're going to fall behind. i have heard that for years. and i've challenged it. five years ago i said in the digital age of banking, regional banks are going to pull ahead because they're effectively combining high-tech and high touch. right? that's been my view up until now. the smaller banks use is what we call a fast follower approach. let the large banks spend a lot of money. whatever works, the vendors eventually supply that to the small guys. they catch up. that will not work with ai. it is moving at a blistering

pace. where as some of the more sophisticated banks working on cleaning their data for years now, the smaller guys are still basically using that fast follower approach and they're falling behind. they're already behind. >> how do you measure who's naughty and who's nice on this metric? how do you know who is doing well? and who is not. >> yeah, that's a good question, tyler. it's not -- there's all sorts of benchmarks out there. even though we're talking about ai, you have to use ri. you have to talk to these companies. we have talked to, for almost every bank we cover, their cios, their ctos and most of them are fairly transparent. like, hey, we're behind in our journey. and if it's a bank that's undergone an acquisition in the last two years, been worried about integration, right, we want these two banks to come together, they're even more behind. so it's actually the old fashion way of aggregating information. >> so, let's name some names. and i guess --

>> okay. >> just as importantly is there an investment thesis right now around these names? would you buy or sell base on what we're talking about? >> yeah. so even though i'm suggesting that most of the regional banks are very way behind in the ai age, right? the two that are leading in our view, in terms of having clean data and a great ai strategy, are colin frost and live oak bank. what do they have in common? they're mission-driven banks and they're planning early. how are we going to use ai. are you ready for this, not to take out costs. how are we going to improve our customer's lives. that's how they're approaching this. most of my banks right now, because if you look at the revenue environment, it's pretty rough. so what are most banks guiding the investors to expect? we're going to cut expenses next year, at the worst possible time. they're behind in their ai strategy, they're behind in their data strategy and they're cutting expenses. these banks are investing in their business. and i believe what's going to happen is you'll have a small

subset of leaders start to emerge. right? really accelerate the customer experience. they're taking costs out. their revenue is improving. their valuation of multiples improve. and what will ultimately happen? i think we're going to see a consolidation wave in the industry that we've never seen before. >> interesting. i loved when you said what are they doing that they have in common. that is they're thinking about ways ai can make the customer experience better. give me an example -- >> yes. >> give me an example of how, just for me, how -- >> tyler, very simple. >> life is going to be better because of ai. >> tyler, it's very simple. >> okay. >> i've been advocating for the industry -- look, what's financial literacy, 40% of the u.s.? banks should be advocates for their customers. they should be helping them pay off loans early, get a good rate. what are we going to do to make your credit score better? you haven't seen that. you see sky high overdraft fees. you have not seen banks being advocates for their customers. when you look at colin frost, the highest client satisfaction

bank in the united states today. why? they care about their customers. that's job one. and ironically, when you find banks that care about their customers, oh, they have good revenue growth and earnings growth and lead on client experience. what you have today is not only are banks behind, they're going to worsen the client experience because they're not going to invest in the technology that's going to take it to the next level. >> so the answer -- the bottom line there is care about your customer more than you care about your fees? your overdraft fees and so on and so forth. >> yes. care about your customers more and everything will take care of itself. you're seeing the exact opposite right now. >> steven, that was fascinating. appreciate it. steven alexopoulis. >> good to see you shares. zillow, shares higher an jmp securities citing falling mortgage rates and pent-up housing demand. we'll share that after a quick break.

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time for today's. we look at three big members of the day . founding partner and chief investment officer with g

squared private wealth. first we have hasbro toy maker laying off more than 1000 workers as week toy sales continue this holiday season with shares down 3% today. your trade on hasbro? >> i know it's a little controversial but it's a buy from me. all this bad news is priced in. there at 6.5 pe down from 75. a lot of supports around 42. this was seen as a proactive move and not reactive. trying to get back to better operating margin the new ceo focusing on higher-margin things in the core franchises such as transformers and dungeons & dragons. they have opportunity and momentum if they can get this bad news behind them which at this point you rip off the band-aid and reduce staff and look at operating margins. >> from toys to tech. oracle. shares down more than 10% of the missing estimates.

how do you trade this one? >> it grew 50% and not 57%. it wasn't horrible and was more supply driven then demand driven but the backlog is bigger than the revenue. they need to get more a.i. chips in. this is a buy for me but larry ellison said on the call demand was over the moon on the data centers and the partnership with microsoft is great. i see potential in the stock and i may dip buyer because i think they get more of an a.i. boost on the road as the backlog it's a little easier. >> and let's go to zillow getting an upgrade from my wife's favorite pastimes is to zillow everything . upgrade from outperform jmp securities says citing pent-up demand shares are up more than 3% today. your trade on zillow?

>> it's a cell. i don't see it. i love playing on zillow too you walk around and check out houses around you but the problem is the market is shifting. technology will change it. that $1.8 billion verdict against them that still needs to work to the courts but that will change commissions and how the industry real estate is done. 70% of the revenue comes from residential real estate and they and are are owns most of the listings. if that is taken apart, how will zillow get this data? i see a shift. and rates may come down but they're not coming down to the 3% people are locked in. unless you have to move, a lot of people will hold on to their old mortgages took 7% is not attractive for most. >> that house was sold in 2016 for $1.7 million but now it's going for $3.8 million. thank you. >> i will look you up on zillow.

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i'm going to rate fast.

ford cutting plan production for its all electric f-150 trucks in half for 2024 seb adoption has been slower than expected. they previously announced plans to postpone or cancel up to $12 billion in investments. this is a trend moving across the entire industry. >> moving across the automobile industry. affordability is part of it and hybrids are popular and don't forget we talked about the investments. they did ink a deal with their workers so that factoring into the calculus. >> there are nowmore mortgage free homes across america than at any other time in history according to the latest census

data. 40% of folks on their homes out right out of 2022. this is the golden handcuffs thing. it's not just folks in homes not moving or releasing inventory to the market because they have low mortgage rates but because they have no mortgage rates. >> they are debt-free. they have assembled all this cash. for them. a new study found that patients taking eli lilly's weight loss drug zepbound regained half the weight they shed after stopping the treatment but they recommend patients remain on the objective or if they want to maintain weight loss. this is been a true side effect with others, as well. some of the other branded versions of these weight loss drugs. >> this is been the concern with health insurers. you have high costs involved with long- term coverage of pricey drugs and this is a market opportunity . weight watchers and a number of startups are focused on this. how do you provide an offramp for these drugs that will help maintain the weight loss. and were learning about shohei otani's record contract with the dodgers were $700 million but it's nearly, totally deferred money. otani will only get $2 million a year for the 10 years of the

contract lifespan. then he will get $68 million a year for 10 years with no interest at all. it's a very interesting structure but i'm sure he will take that $2 million and make $20 million or $30 million of $40 million in endorsements. >> it seems like everybody is a winner here. thank you for watching "power lunch". "closing bell" starts right now thank you and welcome to "closing bell" live from the new york stock exchange. this make or break our begins with the outlook for your money whether a powerful new market is just beginning. we will ask liz and saunders and adam parker that question in just a moment and a closing bell explosive with the president and chief operating officer of goldman sachs. john waldron will be here topics on the table the markets the economy and the future of the firm