member, our producer and her husband are welcoming their beautiful son, roman, into their family and into ours. we are happy to report that mom, dad, and baby are all healthy and happy. congratulations. "final trades" real quick. >> transocean. >> johnson and johnson. >> see you on "closing bell." "the exchange" starts right now. i'm john fort in for kelly evans. here's what's ahead. fresh off a chat with elon musk, cathy wood joining us live to talk tesla and what she's buying. that is just finminutes away. and a third of business is generated in the last six weeks of the year, but will the consumer dlif they are this year? and we highlight the 2023 calls that worked and the analysts that made them. and a tech name despite

disruption clears, the stock is up more than 30% since that call. the analyst joins with us the name and another one he's bullish on now. but we begin with today's market. that means dom chu has the numbers. >> we have some faction al gain, grown across the screen here. the intraday action for the dow, up just about 0.2 of 1%. the s&p 500, 4764, up nearly one half of 1%. same story for the nasdaq, which sits at 15,022. we are just a stone's throw away for record highs for dow, and the s&p 500 and the nasdaq highs for the year. so we'll see if those levels hold around these particular moves. and speaking of some of the green we were seeing, health care with regard to farm suit calls and biotech. a couple of headlines driving things today. a big deal, $14 billion worth for karuna therapeutics, which

agreed to be bought by bristol-myers. the deal is for $330 per share in cash. so there's a higher likelihood according to the market this is going to happen with shares trading just around $317. karuna has a schizophrenia drug in the experimental stage. that's part of the reason for that deal. and amgen is being called a top pick, why it's up 2%. these etfs, up from 2.5 to 4% right now. so keep an eye on biotech. and the stock of the day, a massive move lower in nike. the footwear maker down 11% right now, just kind of hovering near the lowest levels of the session. it was a mixed report. earnings came out better than expected. revenues were a slight miss, but it cut its revenue forecast for the year.

so nike shares down 11% right now. a bit of a drag, but the dow still in positive territory. back over to you. >> dom, thanks. the fed's favorite inflation gauge showing prices rose 3.2% in november, just below what economists expected. headline pce was up 2.6% from a year ago. as inflation fears ease, my next guest says three rate cuts ahead next year. welcome, tom. and also with me, cnbc's steve liesman. so sluggish growth you expect in 2024? >> we do. this i think is the thing we need to sort of start to get our heads around a little bit. yeah, you probably avoid a recession. again, it will be close and there are some risks that are worth talking about. but if our base case of weak growth materializes, around 1%

growth, you know, for the reality is for some people that will feel recessionary. so then what's the catalyst to get you out of that? we're going into an election year, congress is split. it will be hard to find fiscal stimulus to get us out. so i see more of a slog for the next year, maybe two. i do think that there is a catalyst out there waiting for us. that's productivity, and i've said many times here and elsewhere, i think that the pieces are in place for productivity to perform really well. but that takes time to develop. so for the next year or so, things could feel pretty soft. >> things feeling soft, though, steve, could be pretty good based on what people have been expecting. this pce number, could it have been better? >> no, i don't think so. but you know, what tom is saying has a lot of truth to it, which is the following. the economy growing lower than potential means pain for people out there. if the pie is not as big as it

should be or could be, then some people are going to be getting a little bit less. i will just challenge the general thesis for today, which is that we do see with the data we had today, the durable goods data, and some other data, people are revising up the fourth quarter forecast. i know that's not what tom is talking about, but it's worth putting in there. i've seen forecasts for the fourth quarter, which was supposed to be again, the slowdown from the third quarter, which was near 5%. now we're looking at between 2.3% and 3%. still a lot of data to come, john, but the point is that is an economy that is going at or above potential, and the only thing that -- look, i get what tom's talking about, the idea that there will be some biting that has to do with the fed raising rates. companies needing to refinance some softening in the labor

market. but this slowdown is below potential slowdown for a long time, and it has not been the right call, at least all of this year. >> so steve mentions pain. that sounds different to me, though, from the kind of pain that powell was talking about a few quarters ago, that freaked the market out. not to diminish anybody's pain, but it's different, right? >> definitely. look, the unemployment rate is going to rise in the coming year. it's rising now, very slowly. but over the coming year, you know, it's funny. i think people forget, because they're using jobless claims and saying they remain low. i think that's fair. they obviously do. but continuing claims are up. and i think more practically speaking, if you just look at the number of unemployed from the payroll report, it's basically been rising since april. and if you look at the relationship between that and continuing claims, they -- it works really well. and so if i take a step back, knowing that, you know, if i look at the change in jobs over

the course of the last few months, and if you strip out health care, and i think there's an important reason you strip out health care, because health care is not cyclical, it's more secular. so what you see is we've gn gaining jobs -- last month we grew 10,000 jobs, adjusting for the strikes, over the last few months, we're only gaining around 50,000 jobs. what's interesting about that, you think about the standard error of that report, which is about 100,000. you can see a negative. so for people looking for march cuts, which is very early, i think that's what it would take. you need a negative or something close to that for the fed to start cutting in march. which i think is wildly premature. we do expect three cuts as you teased at the start, but we don't expect that to start until q2. >> steve, how many cuts are most people expecting?

>> it depeblddepends on what yo by most people. the average fed official, the number is three. no one forecasts a rate hike next year, and i parsed it over. you have a bunch that are at three or less, and a bunch who are at three or more. and it is interesting today, john, that the annualized core pce number came in below the average fed forecast for the end of 2024. so when you look at -- you asked about where the market is, the market is at like 6.5 or nearly 7. and so that's a big number that's out there. but if that number does come in or continues to come in below what the fed is forecasting, then they might do more. my interest right now, i have a thing i'm thinking about, john, which is when do you get beyond the horizon, which is when is

that point that you can feel comfortable? you lowered rates and you won't have that reacceleration of inflation that you had in the 'seth, for which arthur burns is most notoriously known. >> i'll just add one thing. some of the numbers are worth just drilling into a tiny bit. the thing about -- so i like the look at a three-month percent change an you willized. that gives you a better sense of a near term trend. but the six-month percent change, that is now 1.9%. so you're roughly at the target in that context. you can slice it up however you want, but here's the interesting thing. that 1.9%, it doesn't include all the slowing that we know is in toe from rental. so that's what waits for us. you're going to see these measures of inflation actually slow more meaningfully. >> so tom, i don't know if we

have to go right now, but the thing is that if you think that's the case, and by the way, there are some fed officials who think that's the case also -- >> yeah. >> -- you would tend to be in faif theyvor in that context ofr hikes. >> you mean cuts? >> cuts, sorry. >> yeah, so look, we think it will happen in q2. i think that's a really easy argument to make. to get to march, as i said earlier, i think you need a more pronounced slowing in the labor backdrop. but if we're right, that just continues to grind slower, and you get to this, you know, sort of very close to 2% year on year by the middle of the year, which is plausible. i think that's it, that's the ma magic, when the fed starts cutting rates. so q2 is a good call. >> so steve, this is a weird environment, and we hear all

these stats on when the fed goes from hikes to cuts, here's what the market tends to do. is any of that valid, you think, this time given how odd so many different factors are? you compared it to previous times that we have been in this position. >> it's a good question, job. i guess my resolution is to stop mistaking hikes and cuts. i know i spent several years getting that, writing about it and talking about hikes. the idea of cuts is new to me. you're right, and i was going to point this out, that i've been reporting for a very long time that powell has insisted that we had to run below potential to get inflation down. that has not hand, and one of the remarkable aspects of the third quarter growth numbers is the 4.9% gdp, and the core pce at 2% for the quarter. we got a piece of that again today with the november numbers, that it's come down. growth has come down -- i'm sorry, growth has remained

relatively robust, remained above potential, yet we have had declining inflation. that's a unique aspect of this economy and what's happening right now. it's largely attributed to the restoration of supply chains. we have goods deflation back in place, which was the key to our 2%, john, the way it worked was you had goods deflation, service inflation, the two balanced out to being below 2%. we're kind of getting back. there i don't think that means that the fed can cut extremely. but you could get back to a nor more normal funds rate relative to inflation than you had before. the question is the fed's confidence with these numbers. it's going to be very difficult. i think tom is right, they want to see that labor market loosening to have more confidence in it. it's a bit like, you know, we talk about landing the plane. you know, most pilots keep the engine running until they hit the runway. the idea of cutting rates while the gdp remains above potential

and the labor market remains this tight is like telling the pilot, you're good to cut the engines a thousand feet up. not a comfortable place for a central banker. >> this has been a sullenberger style landing not a lot of people saw coming. thanks to both of you. of course, the question remaining what does this all mean for equities? my next guest has been saying inflation is transitory, the big problem now is deflation. that's the basis of her strategy for investing in 2024. she's also been making news with her chat with elon musk yesterday from passive investing to the future of ai. joining me now on "the exchange" is cathy wood, ceo of arc invest. happy holidays, merry christmas. good to see you. >> you, as well. >> it's especially merry for arc because you're up 46% since

halloween, right? more than 70% year to date after a couple of rough years. what shifts did you make here? >> during the tough years, when interest rates were going up and shocking the system, especially long duration assets, we concentrated towards our highest conviction names. now that we have had a very nice move in the market and the -- and interest rates and inflation seem to be under control, we do believe we're going see deflation next year, and that the fed will have to cut pretty adress savely. but we do think we're on the other side of the horror show we went through, and we think that companies that are comfortable with deflation as technologically enabled companies focused on innovation are, are going to do well in the next few years. >> that's not any different than what you usually think.

>> well, many people would say what we do in the downturn, concentrating towards our highest conviction names, is a risky strategy. it usually works out very well for us. we have a scoring system that hems us along. now we're diversifying more. >> okay. >> and, and, we should -- we expect the ipo window to open up again. there are a lot of companies out there starved for capital and waiting for their liquidity event. so it's a good time to diversify. and also to add back in some of the names we sold as we were concentrat concentrating, perhaps because of more clarity in their own outlooks. >> but that sounds like, correct me where i'm wrong here, it sounds like you're saying if you're diversifying beyond your highest conviction names, you're going into names that seemed riskier for you, for whatever reason. so why were these types of names lower conviction in the past?

are they smaller caps in the public market? do they have a more uncertain path to profitability? are they perhaps in second and third position and the markets are trying to capture it? >> some night surprise you. one of the ones we have added back is meta platforms. it's not a big position. we've been taking profits out of some of our stocks and reallocating back to meta. why? when we sold it, we were not crazy about the metaverse strategy and how much capital meta was allocating to that particular strategy. when mark zuckerberg pivoted effectively into his ai strategy, we think they're in a brilliant position from an ai point of view and pushing the envelope on open source ai, which should help them in their own business. >> that one confuses me, because

zuckerberg pivoted more his messaging than he did in his spending. he's still spending a lot on the metaverse, just not talking about it as much. and the stock has come back a long way from when it initially fell. so why buy it here if he's still doing the same things that you sold it for? >> well, he is de-emphasizing metaverse in favor of much more focus on ai. i think chatgbt have lit a fire under a lot of companies, and a lot of companies have said this is where innovation is really going to take off, and take off a lot faster than we expected. whereas metaverse is making its way along. so we just think they're in a really good position with all of their platforms and all of the information. proprietary information is so important when it comes to ai and large language models.

>> what, if anything, do you do in ai driven hardware? you didn't make a big bet on nvidia, i guess most people wish they did if they didn't. but from here, there are a number of other chip company names that have potential in ai. there are higher hardware end players like super microthat have more potential in initiate nvidia when we started the company ten years ago. when it was roughly $5 on this stock. we still own it in our more specialized strategies. but as we were concentrating towards our highest conviction names, nvidia's rate of return expectation, five-year compound annual rate of return expectation dropped below 15%. at the same time, some of our

software companies, like ui path, twilio, their compound annual rate of return expectation, based on our research, was much, much higher. and rising because those stocks were falling. for every dollar of hardware, we spent -- ai hardware, we believe it will pull through 10 to 20 times as much sort ware. so yes, we did go towards more software, and we went to companies that we knew had -- they met four criteria for us. one, they had deep domain expertise, and in the multispace, sciences, ever more important these days. they have ai expertise. they're taking this movement, this breakthrough seriously. three, they have good distribution. preferably global, perhaps with partners. and then beyond that,

proprietary information. we look at every stock in our portfolio through this ai lens, and the proprietary data assets in our portfolio, we think are superior to those of most other portfolios that are not as focused wholistically on ai as we are. >> okay. i've got to shift the conversation to ask you about the chat with elon musk. of course, your tesla call years and years back, really put you on the map. people were like, tesla's going to do what? come on. and it's done what you said. musk not too thrilled with the idea of passive investing. unpack what you took from that, because for most investors, passive investing, at least for a large part, if not most of your portfolio, was just smart. >> yes, he did give john vogel a compliment, basically saying

from are an investment point of view, bringing down the costs with these indexes was a sensible idea. it had just gone too far, and we couldn't agree more. the pendulum -- after the tech and telecom bust, and even more sew after 2008 and 2009, what we saw happening in the market was a shift towards extreme benchmark sensitivity, extreme benchmark sensitivity. so much so that during '21 and '22, what were most portfolio managers and analysts doing? they were selling our stocks that are not in benchmarks for the most part, and they were buying the bench mark stocks. so the pendulum shift has gone so far, and at a time now when we've gotten five major innovation platforms involving at the same time and converging, creating super exponential growth and expectations. but the market doesn't understand this. it's not doing the kind of

research that we are. first principles based on these new technologies. the research centers more around these indexes. and quantitative analysis. i think that's what he meant, that you have to look to the future if you really want to invest the right way. >> i can understand saying don't be on autopilot. i think sometimes retail investors make wise decisions by deciding to go as you mentioned vogel, deciding to go with more passive strategies, more affordable strategies. i want to ask you about bitcoin and crypto. quite a rocky couple of years, it's been on the upswing along with a lot of the riskier trades into the end of 2023. what do you do with it in '24? >> it was very interesting. we learned something very important about bitcoin in 2023. in march, during the regional bank crisis, when the regional

bank index was imploding and silicon valley bank went under, bitcoin went up roughly 50% during that crisis. at that moment, we had proof positive that bitcoin is not just a risk-on asset, but it is also a risk-off asset. a flight to safety, a flight to quality as others are saying. that is quite rare. and what was the flight to safety? this decentralized, fully transparent block chain technology is not subject to counterparty risks the way our banking system is. and i think that was an ah-ha moment for a lot of people. of course, we have the speculation about -- of bitcoin's spot etf, and of course, we have one of the filings and we're ready whenever the fcc, whenever they give the

go ahead. but we also, and i don't think many people know this about us, but we, with our partners, 21 shares, which is the largest pure play etp provider in the world with $2 billion in assets, and 40 different funds, we actually launched five futures based strategies, which the scc has allowed. . so we have the pipes working from an infrastructure point of view, and we are ready. >> finally, we put aside the trades that you're known for, maybe some of thighest conviction names, what is your highest conviction investment call for 2024? >> you know, we have a five-year investment time horizon, but i will tell you, if you look -- and we publish these every day. if you look at the top five stocks in our portfolio,

coinbase actually took the number one slot, it's up 400% this year, from tesla, which is up roughly 100%. we still have a very high degree of conviction. of course, we take profits along the way. we did add back to tesla. ui path, roku, other areas, the fda approved the first gene therapy, crisper cast nine gene editing therapy, to what we believe a cure for sickle cell disease. the next one we think in march will be beata falacimia. this is life-changing innovation. so this space has been hurt the most during the past few years by being in a cash burn

situation. it's very early technology generally. and we think therefore it has been the most disadvantaged and probably inefficient labor priced of all of our strategies. >> okay. so that means the last one you mentioned is your highest conviction? >> well, i'm just giving you our top -- >> that's fine. you weren't going to pick a favorite kid for me, even though i tried. thank you. coming up, from brook talk, as in tiktok, so rapid bookstore expansion. the ceo of barns and nobles joins us. plus, the magnificent seven have dominated the market this year and they could do it again in 2024. he makes his case, and brings three names out of that group. and let's get a quick check on the markets. all green. the nasdaq leading them all. "the exchange" is back after this.

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welcome back to "the exchange." remember when amazon killed the bookstore? not quite. book sales hit a record in 2021, thanks in part to book tok. barnes and noble has opened 30 stores this year with plans to open at least 50 more next year.

the ceo of barnes and noble joins us now. james, what happened? why are bookstores back? >> people are reading, which is very good news if you're a book seller. we have become better at cure rating our bookstores -- >> but it can't be just that, because people have kindles and other e-readers that we thought, many thought they were going to be reading on. but it's paper books in physical stores. why? >> why? because a real book is still a durable product, and if you want to choose one and you're not quite sure what to read, a bookstore is a fabulous place to find them. as we concentrated on books, because we sell a lot of other things, but as we reconcentrated, we have done much better. >> it seems like this shift from

products to services in the economy, as we saw post pandemic, actually benefited bookstores, people might think of books as products and not services, because the bookstore has become more of an experience, no? >> it's become more of an experience, and i think across all age groups, particularly with young adults. we find our stores absolutely full of young people, really from teenagers up to young adults. also enjoying the companionship that you find in a bookstore. it's the physical space but it's part of a community, and the enjoyment of that experience. >> so when i was in high school, we used to -- i was a little bit of a nerd. we used to have book day on saturdays and go to barnes and noble or borders, my friends and i would just look at books and hang out. i know, but it sounds like you're saying that's what young people in this age of smart

phones and tiktok are actually doing physically in person? >> it is definitely what they're doing physically in person. we don't just see it around books, too. vinyl has come roaring back. so there is a return to the real physical product. i think especially amongst younger people. i'm of a vintage that is well past that, but our customer base is really invested in experience of the physical product. >> a bald head doesn't tell you everything about somebody's age. let me say, though, i wonder what you do with the data on the back end, even as people are having this in-person, in-store physical experience, how do you harness that to make sure the physical bookstore doesn't get amazoned again? >> we have decentralized, so we

leave each store to cure rate itself through the book selling team as they wish. we no longer have central direction. that's kept all of our stores with a distinctive personality, which reflects the individual communities which they reside. so that's changed us a lot. the barnes and noble you find in one location will be very different from another. they're united by believing and presenting books, but they do so very differently. say the upper east side of manhattan to a store in texas. >> all right. james daunt, ceo of barnes and noble, in 2023, with a strong year. great to have you on. happy holidays. coming up, one of our next guests upgraded this stock in october, calling the disruption for weight loss drugs overblown. now the stock is up more than 30% since that call. we will reveal that name and back with another name that he's bullish on now.

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welcome back to "the exchange." here's your news update this hour. in the wake of the united nations security council vote approving aid to gaza today, israel's ambassador to the u.n. is criticizing the move, saying the world's focus on aid is disconnected from reality, because israel is already allowing aid to be delivered at scale. he says the u.n. should be focused on the humanitarian crisis of the hostages. workers at a wells fargo bridge in albuquerque just became the first employees of a u.s. mega bank to unionize. thisle kos as wells fargo is

facing a wider labor campaign. branches in florida and california have also -- petitions for union repres representations. and the golden globes is rolling out the most expensive gift bags ever. it's estimated to be worth $500,000, including luxury stays at five-star hotels around the word, a $2,000 bottle of tequila, and a $250 cream from brad pitt's skin caroline. i would love to get my hands on one of these bags. coming up, it looks like maybe wall street wasn't too naughty this year. santa claus has arrived. all three major averages on pace for another weekly gain, but is it cookies and milk for stocks or coal? "the exchange" will be right back.

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welcome back to "the exchange." stocks are on track for an eighth straight week of gains. you know, the magnificent seven have done well. more than doubling in 2023. my next guest sees that momentum continuing into next year for those names, which have lagged in recent weeks. joining me now, andrew from morgan stanley. andrew, why? because some other folks are saying it's small caps time to shine. the s&p has been too top heavy with the mag seven. >> that is true. you know, you look back to the beginning of the year until

about mid november, they led the charge. but what's interesting, john, is that for the first year off a low, there's always selling. people sell off the low and about a year after the low, investors pivot and they start to buy. emotionally, it's really hard to say oh, i was wrong, i shouldn't have been selling, i should buy and then go buy the all-time high list. it's easy to buy the laggard. so that's what's happened since that pivot in november is it's -- everything that had underperformed. i'm not saying those stocks can't continue, i just think they have tremendous fundamentals and have lagged recently. so i'm a core manager in growth and value stocks. a month ago, i would have said industrials, financials have lagged. but i think these stocks have great fundamentals. i dismiss the argument that they're up a lot, and therefore

not attractive. many of them, nvidia would be the exception, they're not much higher than they were at the end of 2021. so they certainly are up a lot this year but got hid hard last year. so i think that's another reason why i think more fuel in the tank for these stocks going into next year. >> so they lagged recently, but they weren't due for some lagging? why do they have to -- i can understand saying they're not unattractive, but are they especially attractive? >> i think one of the misnomers in this business, i've been in this business a long time, john, is people take gospel what the forward estimates are. when someone says a stock is expensive or cheap based on this pe, they're using someone's estimate, and the reality of these seven stocks is the estimates have been way wrong. the estimates have risen aggressively this year, because

companies are delivering better than expected. so i look at that, and i think that will probably continue next year. i don't think these estimates, the pes are stretched, if you assume that wall street is still playing catchup. >> we just had your top picks on the screen. i have to ask you about the one that's not like the others. tj max and home goods parent, not like microsoft and nvidia. why do you like it? >> some of the retailers have done very, very well recently costco, lulu lemon, and tjx, which has been a great long-term performer. phenomenal stock. has lagged because they love to bring down expectations into earnings in the stock. t i think that presents an opportunity, because historically they do like to temper guidance and that, again, offers an opportunity in a big

long-term winner. >> all right. thank you. >> thank you. coming up, lily and novo on monster runs as weight loss drugs take off, but they're not the only diabetes names seeing big games. that is still ahead when "the chgererns. (clock ringing) go. and go and go and go. (tense music) but what if you. (tense music) stop! you work hard. it's time for a bank that'll work hard for you. everbank performance savings is built to put your money to work with some of the highest rates in the country.

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(♪♪) welcome back to "the exchange." cathie wood giving us her picks for 2024 earlier. one name she's adding back is meta, saying the company is in a really good position with ai in particular. another name she likes is software maker ui path, the third largest holding in the art innovation etf. finally, crisper therapeutics, after the fda approved its therapy for sickle cell disease.

she calls the news life changing innovation and expects more good things for the company. of course she says, because she's owning it. coming up, the ticker podd here on "the exchange." shares are up more than 35% since that upgrade. but in a different diabetes management company. that's one of his top ideas for 2024. he's going to join us to reveal that name, next.

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exchange. my next guest upgraded consulate to buy in early october. hold us on the exchange that the concerns of weight loss drugs would impact the need for insulator overblown. he nailed that call, stop surge more than 30% since then the streets has taken notice with morgan and baird upgrading it this month and he is staying in the insulin space, saying tandem diabetes care, the mystery chart here, taught by the four 2024, back towards matthew taylor, senior analyst covering medtech at jeffries. that, you had a 240-dollar price target on insulet back in october. it is at 215 now, first of all,

what do you do with it here? >> we still think of it as a heads up sign, obviously, not much or we made that of great call, we like the diabetes phase, think is more to be had from the overhangs that nailed these stocks back in the late summer, early fall. but, with the same thing, you can play tandem, it's another insulin make, are much cheaper, we think it has a lot more upside. so, we have been pushing clients to shift into tandem with a lot of the same tenants of the copies, in a cheaper way with tandem having a lot of catalysts in 2024. >> why did you put this call on? since run it over ten, it looks like tandem has doubled to its current level. how far can it go from here? >> we still have 36% upside to our price target of 40 bucks. we have been pushing clients for the last two months or two, tandem doing nice, our conference in london in november, we really thought

they sounded good on the trends in, two for, very excited about these catalyst, started with a new product they will be launching again in early 2024. >> so, what are your most important couple of feces in narratives for 2024, then? because these stocks, they're knocking on the doors of the price targets where you are, i'm wondering how you are making your decisions and filters on what to buy next? >> well, tandem, we are pushing folks into tandem, we saw significant upside there. particularly, the theses points to think about, with any of the diabetes names, including tandem, would be, look these are good growing markets, there are a lot of unmet needs here, we can go home market is going to go with increased penetration, driven by a lot of great technology advances with pumps, e. jean's that are now combined, closing the systems, some people call them the artificial pancreas which provides additional benefits for diabetes patients, to manage their disease, it's

clinically, cost savings, and with tandem specifically, they have been out of the market the last two months, it has created a pause, they got early approval for this new pump called movie, used to be called t sport, it is much sporty or, smaller, has a lot of different wear options, and it fills a void we have had for the last several months. having a new product is always good, but then on top of that, what is really significant for the pumps, including tandem, is a combination with the c gm's. the artificial pancreas has long been hailed as the holy grail of diabetes management. and now, this is combined but only with dexcom, but soon to be added, they will a lots of options for patients to explore, to enjoy, to improve their diabetes management. we think it is a green catalyst for the space, and four tandem specifically. >> that, how do you distinguish between the types of companies that will be affected by the

rise in popularity of weight loss drugs, fundamentally, there are some surgeries we have seen, at least a pause in patients getting them, because perhaps they want to try the drugs first. at the same time, we hear from the likes of medtronic ceo, he expects for those on weight loss drugs to need other treatments and therapies after to make sure that they stay healthy, that they do not lose muscle tone. >> that is right. we have written a whole series on is called why this doesn't make sense. we are on par ten now, so -- go through all the reasons where we think most of medtech will not be impacted by gop ones. we point it down to, each of the demographics, the population will continue to get -- despite gop one use. they do help a lot of people, but there are losing production benefits, including cardiovascular events, they are relatively small.

then, there are other challenges with the drugs in terms of real world use like adherence, compliance, cost, side effects. all of those kind of things really prevent gop ones from making this most of medtech. there are a couple of areas that we do think can see some pressure. we see that already with bariatric surgery, that is a given, that is happening. we view that as more of an air pocket than a long term risk. the other areas where we see risks are in sleep apnea, particularly with sleep app, we need a date -- deep dive, and kidney disease, we don't know that yet because we have not seen the full results from the flow trial. the top line did it released in early october. we have not seen the full results from that, it is still tbd. everything else, we think there is very little risk. >> all right. well, there was a bit of a scare, their. seems like all sorts of things are shifting in this market, matt, thanks. >> thanks a lot, thanks for that time. >> quick markets check, all the major indices are higher than

down, a little better. the s&p up a third of a percent, the nasdaq just slightly better than that. that'll do it for the exchange. power lunch is next after this. 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, our team of passionate traders who live and breathe trading.

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i am dominant q, stocks are holding on gains around for both today and for the week. this will be the eighth straight up week for major averages, as you can see there, we are kind of flirting around some loose, fractionally higher. this is a streak which dates back to the end of october, the average is up at least 15% over the course of that span. the dow, overcoming a huge drop in shares of nike today, company cutting its sales forecast, likely cautious consumer spending among other things, it's also outlining cost cutting measures to the tune of two billion dollars over the next two years. nike's troubles are having its impa