> good aernoon and wcome, evybody power lun. alongside morgan brennan. coming up, t dow shooting r a ten-day win streakespite a major earnings miss fromedex last evening. thisally has yet to end or at least pause eventually, doesn't it? it has to do that, right, morgan >> santa claus rally is almost here officially. plus, we have the cracked beer boom that maybe over, but they are popur and draining profits.

we'll talk abo the business side and the stock side of the beer industry. >> but first, a check on the markets as the dow and nasdaq are trying as objects can, to have a 10th straight day of gains. the dow hitting all-time highs as well. .001 of a percent higher right now. >> sixth straight day of all- time highs for the dow. you mentioned fedex. the stock sinking 10%. the company missed on earnings. offered a weak outlook, particularly on the revenue side of things. the ceo also with cautious comments on the global ecomy. after a big recent rally, why aren't the markets more rattled by this warning from a company that is often seen as a bell weather for the global economy? let's bring in mike to try and answer that question. mike, you and i have had so many conversations about fedex as a global economic bellweather. seems toe the key question is how much of this is company specific in terms of the execution, and all the cost

cuts that are affecting ground, but did not offset the trouble and express versus normalization, coming out of the pandemic versus the possibility of recession. >> exactly, morgan. i think the market is willing at this point to suggest that those initial factors that you mentioned are a bigger part of the story. ups is down 1% most of the day. there are some ripple effects. i think that investors will be given pause about the competitive dynamics and the pricing in those markets. i think the preponderance of evidence, consumer confidence, i don't think given the fact that fedex in the past has fallen short on margins. some of the commentary was, sounded kind of like the same old fedex on the call. i think that is one of the reasons why the market can try and put a fire wall in there between fedex and the rest of the market. we'll see if that lasts, this rally is stretched. >> all right, mike, stick around as we continue to

discuss this topic. our next guest expects the rally in stocks to continue into years end. she sees no roadblocks. while she expects the fed to pull off a soft landing, she cautions a stronger than expected economy could accelerate inflation again and could delay the central bank's ultimate pivot to declining joining us now for more along with mike santoli is rachel, senior investment officer at cape cod 5 wealth. welcome. good to have you with us rachel and mike as well. the market seems to have broadened out a little bit. it's not just the gnificent 7 anymore. i take it you would see that as a positive, wouldn't you, rachel? >> yes, tyler, and thank you for having me and happy holidays to everyone. it definitely looks as if this broadening is providing that powerful, positive feeling that perhaps the market will sustain

blue broaden. broaden. we're seeing it on many different angles. you're seeing 7 out of 11 sectors having really strong positive upsides with their 50 day moving averages being extremely high. you're also seeing confirmation from not just technology, but you're seeing some tradeoff there where technology continues to do well, but you're also seeing a leg up in some of the othesectors as well. so that broaning does bode well for us as we move into 2024 as long as that can continue. >> mike, i want to turn back to what dom concluded his last hour with. that was the notion i my jf mentioned it, that perhaps this year end rally has borrowed a little bit from 2024. i mean, to the extent that is a legitimate case, is that the case this time? tricky, tyler, because lways typically if you look histically, what happens after a really good year in the

markets actually tends to be follow to the upside. but in the very short-term, i do think there's a possibility that we rely have kind of emptied the tank in the near term. you have this tendency in the last several days of decber to be strong. but when thearket and sentiment have been this high for a lile while, both going into the period, sometimes there are give back. you have some of the extreme readings in terms how fast the indexes come that suggest even if we get further upside from here, usually is not like it goes up and doesn't look back. you have to kind of regain those points after a pullbk. you have to be cognizant of all of that. if you go out a few months, most of the momentum signals we have gotten and the fundamentals. that sry line seems like they are relatively supportive of thtrend. >> rachel, we have earnings from general mills this morning. this revenue flagged slower revenue recovery. and this comes at time where in general, across the sector, commentary and state of food

disinflation and in some cases, deflation, and whether you'll see these lower prices help to bolster volumes. doesn't seem to have been the case for general mills last quarter. it raises a key questi. if you continue to see disinflation taking route as everybody is focused on the fed next year and the possibily of rate cuts, does it become a double edged sword when you look at companies and their earnings in 2024? >> so, i agree, disinflation can have the same unpowerful impact as inflation had to profability in 2023 for companies. i think again, it's going to be a market where you have to look at each company and not necessarily look at the dynamics of one sector. but really look at the fundamentals of each company in that sector. and you know, the world where general mills lives is the same world where pepsi lives. which is a company that we hold and have upgraded in both our core equity portfolio for the

growth and income compents that they provide and the pricing power, quite frankly, that they ntinue to have. with pepsi, yore seeg double digit organic growth. double digit arnings growth. and you're also seeing a dividend of 3 plus percent, which is attractive with a tenure that declined below 4, and a history of a 51 year dividend increase with pepsi. polar opposite, same sector, really needing to, aan investor and an analyst look under the hood and make sure that the company and that sector has the positive characteristics. >> let me just ask one queion on pepsi and that is this, are you concerned as some analysts are, that these food companies or the snack companies are at some jeopardif the weight loss drug take off the way they have been performing? >> great point, tyler.

again, that is not just an issue for consumer staples companies. it's also an issue for the healthcare sector as well. what we think about or what we look at is, there's been a huge impact to these companies and their stock prices have reflected it. basically, with we think the bark being worse than the bike to earnings long-term. and studies that are being done now show the impact to consumer staples companies, like a pepsi- co, being three to five years out from now, which would give pepsi a long time to pivot, shall we say, since that has been the word of 2023 as of late, to be able to offset the impact to their salty snacks and sugary drinks. one last piece i'll add is pepty was really one of the early adopters to health and wellness, making that privet. long ago, with areas like quaker oats and tropicana and protein shakes, dried fruit.

things have healthier. >> thanks very much, folks. >> and mike, we will see you a little bit later on overtime as well, kicking off at 4:00 p.m. eastern. let's go to santelli, now to the bond market as yields are falling even further. the tenure is below 3.9 for the first time since july. rick is in chicago to break it down for us. hi rick. >> reporter: hi, morgan. it is a wild ride. just think, it wasn't long ago, october and not even at the beginning of october, interest rates, tenure was touching 5%. by the way, it did it so quickly, if you blinked, you probably missed it. you can't possibly miss how rates have fallen and how stocks have popped and if you look at 6.5 montello yield close on 2s, if you look at tens, it's on pace for a five montello yield. there's a chart, they closed under 2% first time in one year. let's go see what a trader thinks about what is going on.

fomo seems to be a popular term these days. paul. >> hey rick. >> how are you doing? all i here is fomo, fomo, there has to be more of what's going on in equities than fear you're going to lose your place in line to keep up with your index or your boge, so the money you are trading for customers falls behind the curve. how much of that is actually truthful? >> well, since that meeting last week, we have definitely seen markets set new highs. what we're also noticing is that it is not setting lows. so the money is coming in, but we're also observing people reestablishing their hedges, rolling up existing hedges. >> now, it has come so far, so fast. would you consider -- to me, that seems prudent. it doesn't seem like there's anything negative about that. it is something to pay attention to. >> absolutely. it is normal market behavior.

generally it is correlated against. we are seeing that somewhat right now. >> another thing i find interesting is the fed cautioned in the beginning, not to look at inflation in a linear fashion. but am i wrong? aren't they annualizing all of these monthly inflation numbers and doing exactly that? thinking it will be a linear move? >> you know, as i've said before, i'll leave it to you to offer your critique of their approach. >> do you think it's a safe bet to say that inflation going down, much closer to 2% target, is at the base of this rally in equities? >> the fed signaling that's what they are seeing is at the base of that. >> now, i guess my final thought is, do you think that the fomo-type rally with all this momentum going into year end is going to have legs? will we come in next year, is there anything in particular you'll be paying extra attention to in 2024? as far as equity pricing? your final thoughts. >> i can say we're seeing the

market pricing and slowness for the rest of the year, but with that bottoming out, beyond 2023, we are seeing interest in those. >> real quick, i know we are out of time here. making some news today, that they will be allowing pay over time, 4500 kiosks in walmart? i'm not making a statement if that's good, bad, or from a business sense. just from an investor standpoint, makes me a little nervous that the consumer, at least certain consumers might be a little bit more under the credit issues and out of spending capital that others need to pay attention to that. morgan, back to you. >> rick, thank you. coming up, shares of alibaba have being lagging during this recent rally. will that get the stock heading in the right direction? tech check is next on power lunch. stay with us.

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i'm a little anxious, i'm a little excited. i'm gonna be emotional, she's gonna be emotional, but it's gonna be so worth it. i love that i can give back to one of our customers. i hope you enjoy these amazing gifts. oh my goodness. oh, you guys. i know you like wrestling, so we got you some vip tickets. you have made an impact. so have you. for you guys to be out here doing something like this, it restores a lot of faith in humanity. welcome back. while u.s. tech stocks rallied in the fourth quarter. one of china's biggest tech names have been falling. let's bring in today's tech check. hey. >> hey morgan, and alibaba has been under performing for years. it's the latest attempt to win

back investor confidence. it's another executive shakeup. this time giving its ceo greater control over its ecommerce business. continues to really stay out of the picture, but it comes after alibaba has lost its crown to pdd, as china's most valuable e- commerce company. pdd has done what alibaba was never able to do. that is capture the american consumer. but really the shakeup in the chinese tech landscape is broader and more dramatic than what happened in e-commerce. we spent a lot of time talking about it. it was left for dead a few years ago under the effects of u.s. sanctions. it has release add smart phone powered by its own made in china chip. that has put none other than apple on the back foot. and then there is tiktok parent, bytedance, and continues to be the world's

most valuable startup. it might be interesting to think of it as two buckets emerging. the chinese old guard and the chinese new guard. no longer are nvestors as excited about that so-called bat group, china's answer. all eyes have shifted to this new class of chinese tech giants, and what they might do in 2024 and key here, what kind of impact they might have on our own american tech landscape? the old guard on your left, it was mostly contained to china or at least the region. the new players, they are challenging our own tech giants either here or on home court back in china. there's temu and shein, versus amazon, and tiktok and social media platforms. i also mention the other chinese evs versus tesla. three out of four, they are uninvestable for the ordinary investor. if you are holding an etf, you wouldn't have seen any of the value creation from the new big four. shein could set the tone.

it could either see the others, try to go public, or encourage them to stay private for longer, depending on how it goes. that is very much an open question, especially as washington takes a harder look. >> it's amazing. the old versus new speaks to this geopolitical backdrop we find ourselves in and the dynamics between the u.s. and china and what that meant in terms of leadership. i also wonder, and maybe alibaba has been the poster child of this, how much this new class of winners is dictated by the politics and the regulatory environment in china, when you realize there was a crackdown on some of those names that were the prior leaders. >> exactly. and sure, very dictated, because what the chinese government tried to do a few years ago is crack down on the dominance of that old guard, of the alibaba. so, it has created this new class, but that also raises the question, could they crack down on this new batch? if they become too dominant.

that's always the risk with chinese stock, right? i mention most of them are private. if they become public, what is stopping beijing from cracking down once again? for reasons we don't always know. there is still, you know, the idea of founders and billionaires at odds with beijing and that can affect the whole company and destroy a lot of value. >> how big of a threat is to apple? >> several businesses. smart phone market, which is so important to apple. i mean, honestly, a lot of people never thought they would be able to really be a competitive threat. in terms of telecommunications equipment, which has been the main business for a very long time, governments the west have cracked down and said we don't want that equipment here. they maid enroutes in other countries, right? and other places around the world. the most important market is china. you never know, if they create a compelling phone at a lower

cost, you could see other users in other nations start to adopt that, especially if they are cheaper. >> interesting. all right, thank you very much. we appreciate it. the beetles said money can't buy you love, and for one of america's biggest billionaires, that couldn't be more true. we'll reveal the tech titan in the latest cnbc economic survey. we have a couple of ideas who that might be. firs a quick bre. stick with us.

well, the markets are osely watching events in the red sea. the u.s. attempting to -- they e gointo kp targeting red sea shping. mark is sufferg om oil th re. supply, but any threat to oil, natural gas, is a concern. >> that's right. and is that focus on the supply side, which is very strong right now. that means which is why oil is not rallying more.

and so earlier today did top $80. traders are focused on how supplies have not been disrupted yet. russia's invasion of ukraine, remember after that, oil shot above $130 per barrel. then it very quickly became clear th while the oil supplies were being realigned, they were not being taken offline. thisime around, i think the traders are more cautious in terms of bidding pris higher when there's no actual disruption on the supply front. now there's no question that the red seand the canal have taken on greater importance, sincrussia's invasion, given the energy flows have been redirected. there are alternatives. you can sail around the cape of good hope. that's the fact that saudi arabiaould pump more oil through the pipelines for delivery. and that bypasses about 2/3 of the red sea, inclung the trade, which is where the attacks have taken place. and so right now, there is no threat and the u.s. is now producing .3 million-barrels per day. that's a record. that's more than any country in

history. we have also seen brazil and canadian production rise to record levels. 's focused on the supply side, and we're not going to see a big response in oil. >>t is amazing to see the u.s. basically, the swing supplier if you ll, to the global oil market. really n just the u.s., but general. rn hemisphere in so a way to think about this with all the issues in the red sea then, that it is potentially more troublesome from t supply side, or the grain side, rather thathe energy side? because there are these her alternatives? >> i think that's right. i think if you take an extra two wes to go around the cape good hope, yes, there are delays. it raises expenses, but there's no immedia threat that we're not going to have enough oil supply. you can draw dowon reserves. we saw another build, of course, storage levels in europe are very high. one potential area to watch is on the product side in europe. the diesel inventories are now at healthier level. that is one area we could start to see pain.

however, with the u.s. at record levels of production and so much oil coming online, unle there's a big indication that either demand is bouncing back and trying to specifically, or supplies being disrupted. i don't think we'll e a big response. >> pippa stevens, thank you for joining us. the epa says america is accelerating toward clean transportation. according to t agency, fuel efficiency in 2022each add record high. emissions levels dpped to record lows. the epa says the average vehicle in 2022 got about 26 miles per gallon. brazilian lawmakers cleared the way to repave a highway that cut through the heart of the amazon. scientists say the development will trigger an explosion of deforestation and threaten the future of the world's largest tropical rain forest. the bill allows for the use of

conservation funds donated to the country to finance that project. it still needs the brazilian senate approval. and it's not quite new years, it's not even christmas yet, 2024 has all the focus in times square. the 7-foot numbers arrived today ahead of new york city's legendary new year's eve celebration. they will remain on the ground for a few days before they are hoisted on top of the one times square to get into position in time for the party. >> strap on your seabelts. >> i don't misbeing times uare. >> i will no the be there either. >> i wish safe passage and an easy go of it for all of our colleagues that do work out of the nasdaq. >> i have done it on new year's night. >> it's good to do it once, and to take in the ball drop at least once. but that's it.

coming up, beer pressure, craft breweries were the rage for years and put a dent. recently sale haves ne flat. we'll get the scoop from an industry iidhepor nser wn we lunch returns.

welcome back to power lunch. if you attend a holiday party, you have seen many beer choices mill light, the relars. ght, after seeing a boom for many year, craft breweries are seeing sales plateau a little bit. it's not just the craft brewers that are feeling the pressure. overall, beer pruction fell this year. it's the first time that's happened since the pandemic year of 2020. despite that, at least 420 new breweries opened across the u.s. narrowly outripping the closings of brewers. here on set to give us insight into the challenging facing the craft beer industry is mateo. he's the ceo of voodoo bwing company, wch has 18 locations in seven u.s. states. supply diffent kinds of craft

beers to those lations u have gone off into franchisg, whi is a ttle unusual in this business. usually, they are owned by the brewer and the brewing company themselves. here you have gone the franchise route. why? >> there are a few companies before us that were offering brewery franchises, you will to build out a brewing facility. this is the first of its kind, where you cahave theenefits of a brewing tap room without having to brew any of the product. >> what about e plateauing of beer sales generally and the plateauing specifically of craft brews? some years ago, the big guy, budweiser, were going out d snapng up craft breweries, or introducing eir own versions of boutique beers. now not so much. what's happened in the marketplace? >> you're still seeing aot of this macrocraft, which is being bran. ed bsome othlaer >> is eir stf as good as

yours? >> depends on the user. but at the end of the day, there's still a lot of room out there for everybody to play and find se space. definite getting more crowde d thers a lot more o there. but lot of t conmers are a lot more discerning about who is making thisroduct? where is it being produc in whe is the dollar going? that will be a trend we'll start to see as we go into next year. >> what do you see as your biggest competition? other craft brewers? is it cannabis? we're starting to hear that from an investor side of things. >> we're making up a quarter of all beer sales in the u.s., which is really great for craft beer and it's still doing its thing. but you'll see different beverage things hitting the market as well. you're seeing a lot of popularity with the young and up and coming drkers that are looking at nonalcohol products and different seltzers. >> thereas a time when i was an up and coming drinker.

th's a lg past time, actually. we'll have a guest on who will follow you and say specifically that the rise of legalized cannabis has had an effect on the volume and sales of beer generally and craft beers particularly. do you agree with that? >> i would agree with that. they are even putting cannabis and different ingredients into some of the beverage products as well. it will take up shelf space. >> has the arket for craft beers gotten so, not over saturated, but when i go into bars sometimes, feature lots of beers, there are almost too many of them for me to choose intelligently from. and sometimes the bartender can help me, sometimes the bartender can't. speak to that. >> you'll go into accounts and you'll see some ten, is 12 lines. 50, sometimes 150 draft lines. it depends. at the end of the day, it depends on the consumer coming in and what they are looking for. there's something for everybody at this point. it's a matter of what is that

retail establishment trying to achieve and the consumer will gravitate toward those places based on their offerings. >> you're in a specific part of the market. what are you seeing in terms of the health of the consumer and patterns for buying and what they are gravitating towards, not only from taste, but in terms of pricing and general robustss of petite to purchase. >> i think convenience is a big ece of it right now. being able to go to one place and do those things. if you can grab your holiday shopping, your beer, have a nice dinner, some place you can ta the eire family. so that's one of our kind of approaches to growth would be, putting those mmunity accomplishments in place where it's a one sp shop and you can do all of those things. >> mateothank you for joining us on set. >> thank you for having me. >> good luck, i like your hat, too, very cool. well, despite all of the craft beer options on the market, as well as inflation, the big er stocks have managed to hold up this year.

green. r-busch, coors, in the our next guest says access to legal cannabis is the biggest challenge facing beer companies right now. here is explain is vivian. vivian, it's great to have you on. and i do want to start right there. the fact that cannabis is taking up more market share when we talk about the vices in general. is that a trend that continues? how strongly is it happening? >> thanks for having me on. it's a trend that continues as the industry gets larger and larger with individual state legalization. the dislocation to alcohol sales, we think, is becoming increasingly apparent. when we analyze data and segment between, you know, medical cannabis states, adult use states, and nonlegal states in the united states, we can see that alcoholic beverage sales under perform when cannabis is available to the order of magnitude of 100 to 150 basis points. which is pretty meaningful.

you can see the same phenomenon apparent in the canadian marketplace, where the entire country has access to adult use cannabis and that has been the case for the last five years. and you can see prior to legalization of cannabis, beer and near beer sales in canada were essentially flat, down 0.3%. and in the five years post cannabis legalization, the industry is down 2.5% on average. >> it is fascinating. is this just consumers choosing one high for another? or are there very specific meaningful reasons why we're seeing this shift? >> i think just aging demographics is a big component of it. you see that cannabis incidents tends to be higher with younger, legal age consumers, in particular, we focus on 18 to 25-year-olds with the data from the u.s. government, which is the 70,000 person survey. and we can see that every year, the percentage of consumers

that are reporting using cannabis on a basis has gone up. with the 18 to 25-year-olds over the last decade, past month alcohol incidents have been on the decline. when you unpack that survey, we think changes in risk perception are a key contributor to that. you have seen with that 18 to 25-year-old cohort that perceived risk around alcohol consumption has been on the rise, while moderate cannabis consumption declined rapidly over the last decade. >> risk meaning health effects, accident, pulled over in a car? what? >> it is defined as great personal risk to you. so the question would be, five or more drinks once or twice a week versus once or twice a week cannabis use. >> so let me ask you this, as a stock picker, if you had to choose between an alcohol and spirit selling company and a cannabis company, which would you choose and why? >> well, we don't cor any of the u.s. listed cannabis

stocks, but i think it comes, you know, stock specific choice. we are recommending a number of the u.s.eer manufactures. the point you made earlier, we are out on the abi and coors. just for different reasons. you know, there arways to win despite those industry headwinds. these are very well run companies. the beer industry in the u.s. is still well over $100 billion in retail sales. so it's still an attractive category with healthy margins and good cash flow. >> where is nonalcoholic beer fit into all of this? >> certainly, the growth has been really fast. it is still less than 2% of total alcohol sales, but you are seeing a lot of the majors put in new brand offerings, like corona. you have seen heineken, and coors have done the same, given the growth profile. it's a way to future proof the

business, because one of the other phenomenons that we're seeing in particular among younger consumers is reported intentional abstinence. >> let me just interrupt with a final quick question. if you had to choose in the beverage category between a company that was heavy on beer and one that was heavier on spirits, where would you go? >> well, our top pick is consolation brands. they heavy in beer. but they are winning a lot of market share. so we like where their trends are going. >> okay. vivian, thank you very much. have a great holiday. and coming up, the only beloved billionaire, warren buffet, tang the top prize in our latest cnbc economic survey of most ked and disliked business titans. we'll reveal all of the results when power lunch returns.

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business. the richest people in the world musk, bezos south, with the results from the all-american survey. steve. >> morgan, buffet, the beloved, and zuckerberg, the guy no one seems to like. that's what we found when we asked about the biggest business billionaires in our economic survey. only warren buffet has a positive net favorable rating. he is 15%, seem unfavorablely. elon musk comes in at 0. he gets there with sharp and devicive fieldings on both sides. it goes all the way down to jeff bezos at minus 18. and zuckerberg, minus 13. no one seems to like him, it appears in our survey. nearly every demographic has a positive view from omaha. except people with incomes

below $30,000. only negative by minus 3. but the standouts include 50, democrats, those with 50,000 or more investing in the market and incomes over 75,000. musk on the other hand, he divides the nation. amazingly right down the middle. women are negative 17 on musk. biden voters, minus 44. trump voters plus 44. in the northeast, minus 13. south plus 10, musk does better among users of x, coming in at plus 9. zuckerberg, he doesn't have much support anywhere. democrats minus 19. it's worse for republicans. minus 49. you can see the split there between men who are more negative on zuckerberg than women. but still negative. and there's the northeast minus 26 and the midwest minus 44. groups with the lowest net support, republicans age 50 plus. now even those with the most in the market give all but buffet low marks. no one made more money than

zuckerberg. his stocks are up, followed by musk and bezos. showing guys money does not buy you a whole lot of love. >> when you said earlier that nobody much likes zuckerberg, my immediate thought was yeah, but his investors like him this year a lot. >> you know, i would think that, tyler. gates does a little better with investors, or the financial elite, those with high incomes and more money in the market than your average american. but he is plus 15. but zuckerberg and bezos do not. it's kind of interesting. you're right, i looked it up. i made myself a scatter chart to try and see if you know, earnings or returns in the market favorablely had any, they do not. just up 18% for buffet. >> i just want to follow up on

one thing on musk. was this survey done before he created controversy with remarks that were regarded by some as antisemitic? >> it was done after. >> it was done after? >> the idea of figuring out what people thought about musk that got us on to this idea of seeing, how do people feel about all of these rich people out there? it was done december 8th through the 12th. by then, quite a bit of controversy out there. i find the numbers quite amazing, tyler. the symmetry on both sides of the zero line for musk. intensely negative fieldings and pretty positive fieldings on the other side. >> go ahead. >> all right. steve, you know, it's interesting to me to see this as we're coming into an election year and whether there are tea leaves to be read in terms of what this can mean for policy proposals and election trail commentary and the feed through to these companies that some of these billionaires are

so heavily operating in. >> that's a great question, morgan. and i have to go back to previous surveys that we've done in which we find a lot of support for taxing billionaires and taxing millionaires and taxing the wealthy. assuming that's the kind of policy you're talking about. i don't think there would be too many tears shed if it came to more regulation of some of these social media companies. we'll have information tomorrow on which are the most popular social media companies from the survey. along with who finds the ads most relevant. i don't want to give it all away. it's pretty interesting. people do use this stuff and use it every day in large numbers. that is for sure. but i don't think if it came to a personal appeal from these billionaires about not regulating, if that would carry much weight with the american public. >> all right, steve, thank you very much. >> pleasure. >> still ahead, cereal struggles. general mills lower after pricing pressure on its earn

ings call. we'll share when power lunch returns in twofu two.

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time for today's three ock lunch. looking at three big movers of the day. he with our trade is the president and ceo. welcome and good to have you. let's take a look at fedex. shar down 10% with the second quarter miss and top and bottom lines. what is your trade on fedex? >> i've owned fedex for a long time. i think today is an overreaction but an overreaction to a year that up till now was up about 60 some odd percent. stockstill a 55% year to date. i look for companies growing earnings faster than the average company in the s&p 500 and are selling, if i can come up for a lower multiple. the average multiple of the s&p 500 is 19 to 20 times earnings. fedex trading 12.5 times next year's earnings earnings growth for the s&p 500 is supposed to be 10% or 11%. next year was analysts don't think it will meet that with

lowers lady t -- gdp growth. the stock should be growing earnings at 15% of the next five years i have superior earnings growth in the companies i favor and this is one of them. i think it's a blip now. it was from the high cost express segment putting pressure here but this is not a broken company. it's not a broken sto and you have a 1.8% dividend ile you wait. i will continue to hold d i went out on this weakness. general mills slipping 3% onhe bottom line amid soer ss demand and pricing presses. general milllowering its full- year sales forecast your take? and the staples which are broadly down alongside it. >> they are and with fedex, they maintain guidance for the year but the actual median

number is below where the street was so they took the street lower but not their number. general mills has a different problem. down 22%. i feel bad for them. 15 times earnings meets my pricing but earnings growth of 4%. we have a bunch of sugary snacks stuff. a lot of snack food and cereals and i think there's some pressure from the glp-1 drugs the anti-obesity drugs. people don't eat as much on those. during times when the consumers try to save money and be more budget sensitive come they don't buy brand names have a trade down to generics. i think general mills will be under pressure for a while. i don't think this will be a place to make money anytime soon. >> let's go to lowe's. shares down -- >> that's a no. >> called the serial. shares down the percent aer it was downgraded to a hold last month company cut its full-year sales and earnings guidance. your trade on lowe's?

>> i've owned lowe's for a long time and they perform well. up 12% year to date. as a retailer. retailers have struggled across the board this year. i think this company has a strong balance sheet and good management. 17 times earnings and a discount to the s&p 500. around 2% david tend while you wait. and 12% earnings growth. i've got superior earnings growth at a discount price with the dividend while i wait. they are gaining in the pro share. you go to the store and it says pro parking only? they are gaining there and enroll stores, that is the best performing diy sect. i like this company. elegant management and it's a good hold for me and i would add where i did not have it. >> you know what i like? the lemon cake you sent. delicious as always get the annual gift. >> you are very welcome.

stocks go up and down but lemon cakes never disappoint. they selloff in ocks this afternoon is picking up steam. the dow is down 180 points. coming up we power through as many headlines as we can. it's closing time on the other side of this break. all right. 60 seconds to draw the perfect gift. what's it gonna be? a bottle of don julio, 1942, delivered. delivered th drizly. gifting without the guessing. drizly. (sfx: stone wheel crafting) ♪ the biggest ideas inspire new ones. 30 yea ago, state street created an etf that inspired the world to invest differently.

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you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com welcome back. let's take a look at markets which have taken a leg lower in this final hour of trading.

we are at session lowe's pick the essen p is down 9/10 of 1%. this is after getting to about 28 points within a fresh all- time high yesterday. the dow is lower right now at 235 points after it touched a new fresh record high earlier in the trading session. >> i think the nasdaq 100 did as well. maybe it's time for a breather given how far stocks have come so fast in the month of december after the fed meeting last week. >> wildly overbought conditions as mike's and totally talked about at the top of the hour. perhaps just a breather here and some consolidation. in terms of sector performance, everything is now in the red and the s&p with the exception of communication services. google has been one of the best performing mega cap names of the day so that holds on to gains but everything else is starting to see more weakness. >> and fedex can't remember if

they are in the dow are not -- >> transports. >> transport. it's been a underperformers today with a lot of other companies moving lower at this hour. we will keep an eye on it for you. could've been 10 in a row. you never know. that last hour is a busy one. thank you for watching "power lunch" . "closing bell" starts right now. thank you and welcome to "closing bell". i'm scott wapner from the new york stock exchange. we begin with the biggest bull on wall street. tom lee is here to make his case and why stocks can keep climbing even after this record-setting run. in the meantime look at your scorecard with 60 minutes to go in regulation because it's a changing scorecard. a sudden selloff in the market looks like the dow nine-day win streak