>> welcome to power lunch. alongside kelly evans, i'm dominic chu. stocks are rebounding today after yesterday's late day sell off. coming up on the show, we've got to ceo interviews from a couple of very interesting sectors. first, the splint ceo on cybersecurity. it seems like every day, we hear about a new hack attack. are they hackers? are these ones always going to be one step ahead of some of those companies out there, kelly? >> that's a question and the ceo of group one auto, joining

us to talk about the car market right now. automakers are forging electric vehicles, consumers may not want to buy them all. so, dealers don't want to sell them. we will dig into that. but first, let's get a check on the markets. you can see the nasdaq leaving us higher today by three quarters of 1%, as interest rates have fallen. although they've rebounded from earlier levels. and it was about this time yesterday, things got a little dicey. >> there were still positive here yesterday. >> true. >> and things kind of really, really took a turn. kind of in this hour, certainly in, like, last maybe 75 minutes or so of trading. so, that's something to keep an eye on for sure as well. i mean, at this point, it looks like another kind of day of gains. it did evaporate in a sharp sell-off into the close. the markets lost more than a percent. by the time things were done, in just the last two hours of the trade, with no real clear reason. no clear reason. a lot of theories as to why. let's now bring in mike santoli to try to explain what exactly happened and what it means for this rally, from here on out. there were folks out there,

mike, who had already said that there was a bit of euphoria in the markets overall. this is maybe a bit of a sell-off to remind people that markets and google lower. but we have heard all kinds of theories, including stuff about the options market as well. so, what gave? >> yeah, plenty of things, dame, can be valid at once, which is when i was here 24 hours ago, i didn't say we're going to go down a percent and a half in the next 90 minutes or whatever it was. but you did see the initial conditions where everybody, bull and bear alike, would say the market was due for arrests. the best 36 again in the s&p 500 in quite a number of years. maybe the top 1% of all gains over that period of time. all those streaks, seven straight, you know? up weeks. all the rest of it kind of getting the market into a little bit of a twisted position where it's more reliant on short term money. it's getting and staying over bought and then you did kind of cross some technical tripwire's during the day yesterday. the s&p 500 going down below a level. there was a clustering of options, exposures might have cost themselves programs in their.

and it's in the absence of other real money flows, fundamental actors getting in there and buying on the other side of it that it sort of had an outsized effect. now, any routine pullback after a 16% gain, it can go three, 5%, it's will be no big deal in the longer term trend. we don't know if we're going to go that way right away. but i think that's mostly the context of what happened, as everybody embraces soft landing idea it, it takes a little more than just paste the markets going up to keep people buying. >> traders do need to be reminded every once in a while that things don't go up in a straight line. all right, mike, stick around. for more on this market and the come back today versus what happened yesterday that led to that sharp sell-off, let's also bring in kevin quran, the senior portfolio manager at washington crossing advisers as well. kevin, michael laid out some very interesting points and valid ones. for anyone who's been around the market for as long as all of us have been, markets can go lower, especially when they've been set up this way. is there cause, though, for concern about the state of this bull market rally, given what

you saw yesterday? >> well, the new term cause for concern would be that the market came too far, too fast. just as mike said. when you look at what has been happening with interest rate expectations, throughout the fall, basically the market had started to discount in some easing next year and when the fed signaled a pivot effectively last week, taking 50 basis points off their forecast for next year where they thought rates would be, markets were quick to jump on that. a little bit of euphoria, i suppose. but i guess in the end, what's going to have to happen or one of two things. a, you have to avoid an actual recession. and the number two, the fed is going to have to deliver on the rate promises to achieve this soft landing scenario. so, you've set the mark, it it's now set with a bunch of expectations that are going to be challenging to -- >> kevin, it was an index wide sell off yesterday. everything kind of moved and

you've got the feel that there was a lot of selling pressure across baskets of stocks, as opposed to individual names. did you feel as though from a portfolio managers perspective that there were opportunities created, given the sell-off that we saw yesterday? >> not really. we've had a narrowly led mark it all year long and then when you look at where the market was positioned, most traders or technicians would say that the market was over bought going into the session yesterday. so, i think traders were looking for a reason to lock in games and they found that reason yesterday, having the market had such a strong run over the last several sessions. >> kevin, your stock picks i think are kind of fun and interesting. texas insurance is kind of the one name that has really performed this year and norfolk southern, we don't really hear much about the rails other than we're talking about what's happening down at the texas border last hour. you don't hear much about them, stocks down 6% year to date. one of these two names jump out to you as names that you like for 2024?

>> yeah, well these are names that are very good quality names and they've held up very well whenever the economy was stressed. ultimately, what we are looking for our companies that have very good balance sheets and both of them do. we are looking for businesses that are predictable with, that have very profitable assets to. texas instruments essentially, it is a less exciting company in the technology space, for sure. but if you look at their business, it's very steady, very predictable. and so, if things were to get rocky next year, we think texas would do fine. they potentially have beneficiary of the onshore in the chips act. same thing could be said for norfolk southern. frankly, they've got a very good business, they've got a little bit of work to do, in terms of retrenching and spending some money on capex. but the stock is basically been overlooked and offers a very good value here. >> michael, we will give the last word to you. did anything break yesterday? we've been talking lately about

the idea that there was this broadening of the market rally, the -- s&p 500 has actually been doing some lifting alongside the market weight s&p 500. small caps have been outperforming. you know, any of that change, given the stress we saw yesterday? >> -- you are right, it was pretty comprehensive, in terms of the breadth of the selling yesterday to really compromise all the things that have built up since about november 1st, which is the breadth of the rally. the other piece of it that makes the market maybe slightly less vulnerable than you would think, seeing how extended the indexes are, is that so many stocks like the banks, like small caps, like other cyclicals are really just kind of reawakening after a two year, you know, kind of basing period or being in the glass. and so, i think that makes it less kind of stretched and over its skis. plus you have wall street strategist on balance not calling for any upside next year. we've got a cool off in the very short term, but the longer term trend didn't really take on too much damage. >> all right, michael santoli, kevin karen washington crossing, thank you both very much. we will see you guys soon.

>> thank you. >> and the media landscape could be shifting. warner brothers, discovery, and paramount global are in talks for a merger. but it wouldn't be a merger vehicles. what's the likelihood of a deal and will it trigger further consolidation as companies 50 streaming? let's ask david joyce -- seaport research partners. david, good to see you. can't put a lot of enthusiasm out there for this potential tie up. maybe you have some. >> i think there's still a lot of confusion out there. these are two business models that would be somewhat complimentary, but definitely center just stick. i think a combination could be possible. i don't expect that there would be antitrust issues like some other possible combinations might be, where you would have two sets of broadcasting assets. i think that right now, there is a little bit of skepticism in terms of why are they getting together? are they rushing? are they fearing what the future means? i don't think that they need to be going at it in a willy-nilly

fashion. i think that they have a lot of assets that are fixable and buildable from here. >> will the conversation be different and more enticing to everybody if they didn't have such high debt loads? maybe that counterfactual doesn't matter, but how significant is the balance sheet headwind? >> well, i think that you do have two different stories here. warner bros. discovery is generating a lot of free cash flow on its own. about five billion this year, about four billion next year because of coming out of the actors and writers strike, going back to constant production. where is paramount, having a smaller portfolio, they're a little bit better than to break even. that means that they have less flexibility of what they can do to improve their balance sheet. so, i think that that free cash flow generation, potential synergies from the deal, as well as growth in some other areas such as the studios business and the improvements on profitability in streaming or always that they could help improve the balance sheet further. they can do it on their own, but there could be synergies

from a deal that could be incremental to that. >> you know, david, it's tom. what's interesting about the two stories for warner bros. discovery and paramount, at least in 2023, has been the divergence. we've seen some real relative strength in terms of warner bros. discovery versus what's happening with paramount. does paramount need to find a partner in order to survive, going forward? >> it seems like they would need to have some more scale with their businesses. they are very significant in the linear network advertising that they've been transitioning to digital. so, i think that's a misunderstood part of the paramount story. and they've got, you know, pretty good breadth there. there's still an area where there are some court cutting issues. but the paramount plus streaming service maybe could be argued as sub scale, impossibly the volume of production out of paramount studios, while it's got a great history and great library and a

number of great pieces of its own ip, that's also producing, you know, lower than some of the other peers such as universal, disney, or warner bros. discovery. so, i think in this era, the scale is going to matter more than others. it might not require complete company merges. you know, there could be some platform combinations on the streaming services that could be a way to solve some of the issues. >> right or everyone's kind of joking, you know, they should all be sellers to netflix. >> yeah, that's definitely a whole other topic. i would say that you had the studios selling their content to netflix in its earlier days, then all of the studios and media conglomerates went to the walled garden environment. so, i think that does beg the question, is netflix going to continue to be able to source strong content? but that means that some of the

more legacy studios, legacy media conglomerates do need to retain their talent and keep producing quality content that they've made for decades, in order to still have a competitive product out there. >> both of these stocks, we can show them again. if i recall the kind of in the low teens. what would it take for warner bros. discovery for that to get its stock to triple from here? >> i think that you need a stabilization in the court cutting environment, which might be on the fringes of happening because of how the pricing of streaming services have increased so much, that if you put them all together, it's not such an obvious decision for someone who still is a paid tv describe to cutting the cord. so, you need stabilization in the linear subscriber market. you also need the media companies, the media owners of these linear properties, as well as, you know, they're add-ons with streaming, they need to get more into digital

advertising. they've been moving in that direction, but that's only about 20 or so percent of their total advertising. that's really important for all the data that provides to add buyers. if the ad buyers have more data on their digital delivery of adds to the networks, that's greater pricing and that's greater revenue for these media owners. >> that's a great point. david, for now, i'm sure they're trying to get a triple. could take some heavy lifting. david, thanks for joining us. we really appreciate it today. >> thanks for having me. >> david joyce with seaport research partners. >> all right, coming up on the show, micron, the latest chip maker to jump after earnings based on hope for what else? artificial intelligence. what our investors overlooking something pretty important? that the company said. and, check out some of the big cybersecurity etfs. happy for one, cyber, bud, all of 35 to 40% so far this year. but we hear about new attacks nearly every day. so, how are we really doing in the fight against cybercrime? we will ask the ceo of splunk

coming up next on power watch.

>> check out shares of migrant. you can see they're up 7% so far in today. they're higher following the company's earnings report. as with other chip makers, investors are less focused on the numbers now. and seemingly, more focused on the hope for a.i. in the future. let's now bring in christina partsinevelos, who joins us now with more on the micron news

and what it could mean for the broader chips sector going forward as well. >> yeah, well don, much of the earnings feed that you saw with the strong q2 guidance and improved gross margins really has to do with higher selling prices for memory chips and not necessarily higher demand, right now. so, on the earnings call, management even warned that they don't expect to see volume growth in q2 or q3. so, then you thinking, how can this street be so bullish with, for example, rosenblatt analysts hiking the price target by 40 bucks to 140 when it's not about demand? because for my current, this is all about keeping supply low. the street believes the company will stay disciplined doing so. for example, manufacturers have been cutting back on production to clear excess inventory. that means less supply. secondly, micron is pivoting some of its underutilized equipment to make more advanced memory that is used for those a.i. systems, for they're limiting supplies, since it requires more effort, more wafers. it's just a little bit more complicated and then you have my crown ceo who is on cnbc

this morning and called the bottom for everything, from pcs to smart phones, but did at mit data center supplies still remains high. so, if it's a little bit high, that means customers may not buy as much. but my conjured investors, a.i. is here to save the day, to your point, dame. demand will increase two quarters out from now. they even name dropped nvidia, saying migrants chips are close to qualifying for nvidia's next generation a.i. products, like the h 200. but for now, this is the volume gain and micron intends to keep it low. dame? >> christina, thank you very much, kristina partsinevelos. 2023 has meanwhile been a busy year for the cybersecurity community. battling attacks growing ever more sophisticated and advance. speaking of a.i., they're also getting more expensive. with ibm data showing an average breach now costs four and a half million dollars for the u.s., it's actually more than double. just nearly $10 million per breach. what can companies do to best protect themselves from threats in the new year? let's ask our next guest whose company provides enterprise

threat management systems. gary seale is the ceo of splunk. gary, welcome. >> thank, you it's great to be here. >> just last hour, one of our guests had some cyber -- stock picks and every time investors like these names, one of the things i hear from the investment community is, well, if these companies are so great, why can't they prevent these cyberattacks from happening in the first place? so, maybe you can explain a little bit. >> yeah, no, i think it's kind of simple. the cyber threat actors continue to up their game and a eye has been, for example, a.i. is a great advancement for everyone. but it's also an advancement for threat actors. and so, as threat actors up their game, it puts more pressure on companies to continue to invest, to ensure that their cyber posture improves. and it is a tough battle that we are in, and it's not going away. as we enter 24, it's going to get worse, not better. >> how many cyber firms do you think the typical companies dealing with? because there's maybe, you know, you can explain it better than me, but there are the ones who try to prevent threats. they're the ones that identified, there's the ones

dealing with, you know, actually dealing with them, cleaning up afterwards, and so forth. then my guess is, you know, maybe a breach is a catalyst for change or maybe it's not. but can you just kind of speak to the stickiness of customer transactions and how many different names might be floating around a company at any given point? >> yeah, no, i think if you go to a global 2000 company and talk to their executive in charge of security, you're going to hear from them that they have well over 100 products that they have employed across their enterprise. and because the attacks surface, meaning that places where cyber actors are going to come after you continue to improve as digital footprints grow, that number of vendors continues to grow as well. >> gary, it's dame. one of the things we often talk about is how much companies are going to want to spend on this kind of threat protection, threat assessment type technology. can you tell us about any visibility that you might have that spunk might have into how budgets are shaping up in the coming year or two?

are they increasingly getting larger? are they starting to slow down a bit? what exactly do these trends look like right now? >> yeah, no, great question. i think as we enter 24, the bar continues to rise. you've got a lot going on around the world from a geopolitical point of view and then you also have these new rules from the fcc where public companies have a four-day timeframe with which to report material breaches. and so, you know, in this context, i do believe that cyber budgets will continue to increase because of the landscape and the level of issues that organizations are experiencing. so, this has been, you know, i think it's taken many years, but organizations will continue to spend money on cyber and budgets will increase as we move into the new year. >> does that nine and a half million dollar figure -- cost for an american business, does that sound about right to you? >> i think that's probably in

the range, yeah. >> yeah just because i'm sure there is very widely based on -- aside from the company and if we, you know, some ask me, are we still not being tough enough on crypto for the role that that might play, for instance, in ransomware attacks? how big is that aspect of this threat, in terms of, you know, the fact that this is still an ongoing area where maybe companies couldn't have been attacked like this in the past? >> yeah, ransomware is going to continue to play a role and you would've thought that we would've seen ransomware decline. it actually, we've seen the threat actors when, that companies do pay ransom. and while crypto plays a role there, they will find another way to exploit dollars if they need to. so, taking way crypto doesn't necessarily solve that problem because the threat actor will still find a way to go drive a financial outcome for themselves. this is a very tough field and i think the threat actor community continues even bigger, not smaller. >> gary, before we let you go, just a few seconds left here. what's the big thing that's

going to be part of that cybersecurity story next year in 2024? >> i think the big thing next year is we're just going to be in a very different world where we're entering an election year and typically, we see more nation state actors active in the threat landscape. and so, i think the big thing next year is we're going to be talking about a wide range of threat actors in the kinds of activity that we're going to see from them. so, our message to all of our customers is we need to stay vigilant and we all need to lock arms and do everything we can to protect what is at risk. >> it will be an eventful year, for sure. -- because of the election. gary steel, splunk, thank you very much. come see us again soon. >> thank you. >> again on power lunch here, he's making lists and checking it twice. no, i don't mean santa claus. tim seymour is in the house and he will tell us which stocks are on his naughty or nice list ahead of the holidays. but first, we will take a quick break. stick with us, we will be back. stick with us, we will be back.

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let's get a check on bond markets with a ten-year dropping ill further below 4%

earlier today. rick santelli has the latest from chicago. rick? >> yes, we did see big drops and new -- cycle low yields, but we have reversed higher, led by longer maturities. i think led by longer maturities when rates move higher is going to be something we will hear a lot more about as we move into 2024. but the world has seen huge moves. just since mid october, the moves in the fixed income cyberspace are unbelievable. look at the two year note. we will keep everything mid october. the high there, 5:22. down nearly 90 basis points in about two months. look at tens, for 99. you remember that, basically a whisker in the 5% territory. close to four 99. it's over 110 basis points lower since mid october. boon yields, they settle today at one 97. mid october, they were two 93.

down nearly 100 basis points. and guilds? well, the guilds went. ten year uk sovereign instrument was at 467 mid october. close to 354 today yearly 115 basis points. these are huge numbers and they demonstrate several issues that the post-covid world is looking at central banks potentially reversing much of what they have done over the last past year and a half or so, and to the tune of a pace that we've had years that we haven't had the amount of volatility we've experience in some of these sovereigns just in a two month period. dame, kelly? back to you. >> who would've thought that the bond market was where the volatility would be in, not the stock market. thank you very much, rick santelli. well, speaking of the stock market, the energy sector has led the s&p 500 the past two years running. but it's one of the biggest laggers in 2023. so, can it return to its top form again in 2024? --

stevens is looking at the setup for energy stocks entering the new year. >> yeah, energy dethroned, important to note here that no sector has ever led for three straight years. and so, there was some trepidation coming into this year. but energy is one of the few sectors in the red. now, because of this decline, the sectors p e racial relative to the s&p is now at the lowest in more than two decades. sending a potential opportunities and actually across wall street, strategists are the most optimistic on energy stocks with 64% rating. the energy companies at a buy. so, if you can few key things to watch. you're looking ahead to next year, the upstream players are becoming more and more efficient. they are spending less money getting more oil out of the ground. they've actually been a big lag or this year just because they've had more sensitivity to commodity prices and so, there has been underperformance there, meaning they could be set returning around next year. for the oil field services names like s.o.p. and haliburton, analysts are saying international and offshore looks really strong. the service names are also important, you know, towards moving towards more digitalization, fewer carbon

emissions, when it comes to the upstream players. so, they are heavily used there. then for the refineries. this is interesting because we've seen valero underperforming relative to marathon petroleum, up 66. that's because valero is really the only pure player refinery whereas philippe -- petroleum have some other businesses. and so, when valero underperforms, that is a signal that people think there is going to be some weakness in products. of course, -- have come down a lot. so, one thing to watch, actually philippe 66 had a record high yesterday. so, they have been pretty strong. >> we are both, dominic, pretty focused on this news of -- leaving opec and it's kind of a bombshell, but you don't hear about this that often, do you? >> so, they're not the first country to leave. we saw ecuador, qatar, and indonesia leave in the past decade. and nor are they are major producer. i mean, they produce 1.1 million barrels per day and on a good day, -- told me that they could ramp up production by about 50 to 70,000 barrels per day in the future. however, it does speak to this growing sense that there is

divide within opec and its allies. you know, saudi arabia, the de facto leader, has been, you know, setting these production quota levels and -- had been very vocal, saying we don't necessarily want to abide by not. now, their production has come down from almost 2 million barrels per day because of a lack of investment. so, once again, it's not as if they can just ramp up. but still, if they are getting a lower quota, then it also discourages foreign investment. and they are dependent on these petrodollars. so, they want to boost output. >> they're going to test a free agent market, to put it in a sports kind of analogy. >> although, are there going to get less for their oils? because that means it will be pumping more, and therefore, the oil prices down. as we were saying, i mean, it is good news for u.s. consumers, the extent to which countries peel out of opec, i would imagine. >> you have the key name to watch here is a uae because they actually do have spare capacity and they've also been vocal, saying they want to hire production quota level. they're producing about 3 million barrels per day. -- has invested heavily. they could, in theory, go up to 5 million barrels per day. so, you know, are they going to follow suit?

i mean, strategists are saying this is not, you know, the imminent demise of an opec by any means. but there is a lot of drama here to watch. >> well, we see why. if you can get in there with the -- which has been a good ally and kind of nudged them over the finish line -- >> tiny wedge. >> huge, huge development. pippa, for now, our people stevens, we appreciated. let's get a berth acoustic for the cnbc update. bertha? >> hey, kelly. israel gave a signal today that it could except a u.s. proposition to allow a revamped palestinian authority to govern the gaza strip when the war with hamas comes to an end. prime minister benjamin netanyahu's national security adviser said today, israel is ready for the effort, but the authority would need to make a complete reform. southern california is being soaked today, as a winter storm batters the region. the storm is shutting down roads and causing significant flooding. it has also prompted warnings about mudslides. more rain is expected with a flood watch in effect until

friday. tough timing during the holidays. one of the most important relationships in football is between the offensive line and the quarterback. so, this holiday season, kansas city qb patrick mahomes wanted to do something special to the guys who protect him all year long. he gifted each of them a golf cart, bearing their names and jersey number. the carts go pretty well with the golf clubs that he bought all of them last year. you know, with tom brady really retired, i've got to say, mahomes is my favorite, favorite. >> they should give him the aunt mvp on that alone, right, dom? [inaudible] >> he's so. nice >> there's, like, a half dozen of them driving around there right now. >> and what a brilliant, brilliant gift idea, right? >> applause all-round. bertha, thanks. coming up, dealership details. ev demand weakening. gas prices falling and auto loan rates are stabilizing. we will speak to the ceo of

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well, inflation has had a huge impact on auto prices this year. used car dealer carmax is seeing a lot of green. carmax shares are racing higher after its third quarter profits doubled. the ev slowed down also a big story this year and just today, general motors said it is buying out half of its 2000 buick dealerships nationwide, based on their decision not to sell evs. so, let's talk more about that and the state of the auto industry with darryl cunningham, the president and ceo of group one automotive, which owns and operates more than 200 dealerships in both the u.s. and united kingdom. darrell, thank you very much for being here with us. let's talk first of all big picture about the state of the auto industry. many americans still feel the pinch. they think it's too expensive to buy a car. is there any relief, anytime

soon for consumers out there? >> well, thank you for having me. you know, i think what we are seeing right now is indications that there's a little more health with consumers than maybe we give them credit. you know, affordability, interest rates are a concern, obviously. but when you look at the truck mix and the suv mix in our business today, it is higher than it's ever been. it was up again in november and our oem partners are being very aggressive with interest rate submission and lease submission programs, which help address affordability for consumers. >> when you talk about affordability, it's been the knock on some of the ev narratives in the past and maybe even in the current right now, this idea that they're too expensive, it's expensive to charge them, where can you find them? the infrastructure that is needed. how much has that evs story changed the used car market or the auto industry overall? and do you feel as though the slowdown that we're seeing right now is going to continue

and people are going to just turn back to internal combustion engine cars? >> well, i think it is important to know and important to look at, you know, evs earth grew 37% last month. that's a terrific growth rate for almost anything and even though they are growing slower than maybe some anticipated and supplies are higher than they we have ice vehicles, i think evs are going to be part of our future. there are about 8% of the industry today, they've doubled in the last two years. so, they are becoming a more and more significant part of our business and for consumers, there is no disputing that there are some issues around range anxiety, affordability, the ability to have it as a full-time, every day vehicle, rather than as an additional car in the household. so, i think once those issues get worked through, i think you will see more adoption by evs, but it's no secret that the

adoption curve is probably slower than anybody. you've seen announcements from some of the o ems slowing down their ev plans for the next couple of years as a result. >> have you guys been caught in the middle of this, daryl, with excess inventory, price cuts, unhappy dealers, things like that? >> our inventories are higher for ev than we are for our ice vehicles and for our high rates, that's for sure. i expect that what we've seen is the oh ems are adjusting the production levels to match demand more closely, and i think you will see that even out probably in the first or second quarter of next year. they will be more equitable inventory across all -- >> and you mentioned there in passing, but it's fascinating to watch a hybrids actually are selling pretty well and consumers see more amenable to them that may be pure evs. just want to ask you before we have to go, what can you tell us you expect about kind of auto inflation or deflation next year? as far as i understand it, we've corrected maybe a third of the price increase so far in the used car market, especially.

but do you expect deflation in this category next year? >> i think we will see some continued pressure on used car pricing. we've seen it quite a bit here in the last couple of months, especially. and i think as the o ems continue to address affordability on a new car side, we will see incentives stay where they are, maybe increase a little bit. so, i think you'll see a little better pressure, but again, i've seen pretty healthy -- levels at this point and the retail stars are growing. so, it tells me there's still some pent-up demand. >> all right, we will tell buyers not to give or sellers too much trouble. you know, drive to hard a bargain there on the lot. [laughter] darrell, merry christmas, thanks for joining us, we appreciate it. >> i appreciate, it thank. you >> daryl canning having grown out. coming up, speaking of evs, tesla's been on a pretty electrifying run. the stock is on track -- of any security in 2023, including the tsv why etf. we will follow the money when power lunch returns. power lunch returns.

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we've got a quick news alert on boeing. right now, those shares up fractionally. the companies handing over its first commercial 787 dreamliner model to china since 2019. now, today's milestone is seen as possibly opening the door to handovers of 7:37 max jets going forward, which is a huge cash cow for boeing. so, some positive developments there. leading to some fractional gains for that dow proponent, kelly. >> all right, meantime, stop picking is making the comeback and the retail investor is picking tesla over just about everything else. kate rudy has more on these incredible stats. kate? >> hey, kelly. yeah, so the first time in five years, more traders but a single stop during the widely held espy y, which tracks the s&p this year. it was all about tesla. that is according to evander research. elon musk's car company is ending the year as the most

widely held name by individual traders. next was popular, as we why, as i mentioned. then the q q cues, which track tech, followed by nvidia, amazon, and apple. it comes amid this resurgence we've seen in stop making over the past six weeks or so. traders had spent most of this year really playing yields with mind market funds and etfs. they're now redirecting that money into single stocks and with yields under pressure individuals are shifting funds to some of the riskier names out there in small caps. that has been the preferred catch-up trade, which analysts are expecting to continue into next year. at this point, retail net purchases are back where they were in late 2020. around those levels when election and covid vaccine news kicked off a lot of buying in small caps -- the current episode shared some similar traits to that time period, as traders, once again, are forcing hedge funds to cover those shorts. and to some of the more crowded trades, if this trend does

continue, they do expect refill flows to surge another 20 to 30% from these current levels. sentiment data, as -- puts it indicates that animal spirits are back in full swing, guys. back to you. >> all right, kate ready with the latest there on tesla, thank you very much for that. coming up on the show, is it naughty or nice? tim seymour will reveal which stop see things are due for a happy holiday season or a blue christmas this year. power lunches back after this small break. small break. this thing, it's making me get an ice bath again.

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it is that time of the year. time to look at naughty and nice stocks. we have five stocks on the list and here to check them twice is tim see more, a founder and chief investment officer of see more. i can't help it. >> before we start, i ran into an older gentleman in the parking lot wearing a red suit setting up of the sleigh and he gave me a treat and said you were amazing this year. >> what am i going to get? >> you are going to give nicole. >> i don't know what that means. >> it is individually wrapped

coal. >> thank you, santa. i will try to improve my performance in the next couple days. let's get to the naughty and nice list. the first is in video. tim, will this be naughty or nice to investors in the coming year after a tripling of the stock over the last year itself? >> sorry. let me put my tie back on. i have been naughty. i would say that it has been so nice the last couple years. but it is a naughty one. and here is why. >> less nice in terms of multiple and whatnot in 24 equals naughty for a stock that has had such a great run. it is priced as if it is one of the most important companies in the world. it is. you could make an argument that it is cheaper and intel.

the competition is coming. but i think you are naughty next year. >> the next one is just as much of a high flyer this year. bitcoin. naughty or nice? >> i think bitcoin is nice and i think the reason bitcoin has been nice in 2023 or the set up is the same that we have going into 24 is that it is a dynamic of those look at the heart of gold which i think is one of the longer-term charts in the market. and was fed and list growth. i think it is nice and. >> talk about the energy sector. we talked about the dynamics of oil and gas. how about chevron, and oil major integrated. is it naughty or nice? >> it is nice. it has been a naughty run for energy after two nice years, 21 and 22. but we are talking about a free cash growth story and paying down debt. i would make an argument that

the chevron dividend breaks easy around $45 oil or butter. i think the companies are run for equity investors. these to be run it growth that will cost. that it would be defensive, not necessarily in a world where the markets had a big run. >> down 14% in one year. you could argue not terrible. >> you are not chasing this one. i think it showed good support. it is a macro play in a demand play and if you think your going into recession, energy companies would struggle. we have struggled already. relative to the s&p, they are always cheaper relative the s&p, really cheap. >> the next one, it is interesting. not just because it is healthcare but it is eli lilly which is the nvidia of the healthcare sector. what would you do, naughty or nice? >> i have to naughty the sun. this is a function really a word is coming from. and i think the delta on this thing is does the multiple isn't crazy. we know what is going on with the addressable market. i think there is competition

coming with orals. the biggest issue really is insurance coverage and who will be able to own this. i don't think there is any question that this will do wonderful things for a lot of people. and is not just the aesthetics. i think this is the dynamic. i think the multiple is getting to a place where i don't think any to chase this one. healthcare overall, there are other ones in the ranks that have had a tough 23 and could be the names and 24. >> any ones you want to mention? >> i think mark is interesting on mobile. i think they will participate in some of these hot areas. >> we can't do christmas without a retailer. so target, what do we think? >> first of all, let's get this out there. it has been nice and it has been nice the last month. i think the inventory has been reset. i think we're starting to see more discretionary spend. i think deflation is bad for retailers. the multiple of 14 times 24 i think is something that is attractive and i think you have

placed a lot of risk and a target at this point so let's be nice next year. >> naughty or nice list. many more headlines to get to. so little time. so little time. see you after the kebreak.ing e. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk,

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as he see on the clock, we have two and a half minutes

left on the show and several stories you need to know. first, rising inflation helped boost millions more americans and to so-called accredited investor status. financial regulators say it is not necessarily a good thing. some consumer advocates argue the current income or net worth thresholds should be adjusted for inflation or some could just buy into investments and don't have any risk agate -- appetite for or 30s and like hedge funds are private equity. i tend to kind of see that side of the story. people tend to go this way higher and people who do not normally become accredited or accredited. >> those who have access to hedge funds, the etf will find these anyway. >> the status is there to protect investors, whether it is eliminating them or not. i would argue inflation has brought about higher interest rates which has created real rates of return on traditional forms of allocation like fixed income or credit products. that is where i would like to see the folks who feel like they are investing -- it used

to be the people at the bottom of the economic spectrum. it was financial oppression because of what was going on with interest rates. >> let's get some words of wisdom on -- when it comes to business, use the simple word. part of the anti- jargon campaign. he says you are more than likely to get on someone's nerves then impress them if you use jargon. is was -- his least favorite term is using cohort. >> anybody knows that when i say comp store sales, i say sales growth that established store locations. i try not to use same-store sales or that kind of thing. >> the normal threading the needle. all these things we say, what it is -- what is interesting is the people who try to sound smart as being overly smart on the market in 2023 i think was being stupid. >> in honor of charlie monger, let's all fight jargon and more

and more couples are getting a divorce. for sleep. they say there happier than -- happier sleeping in a separate room. they sleep in different houses. >> i think my wife is not happy with my dynamic sometimes. >> why not get separate houses? that is crazy. that is what you signed up for. if you can't deal with some snoring, guess what, don't even go on the program. >> time for closing bell. . welcome to closing bell. scott walker at the new york stock exchange. this make or break are begins with highflying stocks. so many names surging lately and questions about what to do with them. to profit or continue buying and believing. will ask experts the question over the final stretch and we will take you to nike earnings in overtime. that name is on a one-month terror. stephanie leake is with us and she will giv