welcome to power lunch. 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 impact on customers and

competitors as well. check out foot locker, under armor, among some of the names sliding in sympathy with that nike trade. and, a big pharma deal as well, bristol-myers is buying karuna for 14 billion dollars, giving bristol access to karuna's experimental drug to treat schizophrenia. we start with the market rally today, stocks are higher and on pace for back-to-back monthly gains, with the snp on track for its best quarter since the fourth quarter of 2020. so, can the good times keep rolling into 2024? ron insana is a cnbc senior analyst and commentator, also the chief market strategist at dynasty financial partners, and mike bailey is director of research at fbe capital partners. thank you for both being with us. ron, let's start with the biggest picture now, this markedly was one that maybe some people expect because, there are quote unquote seasonal factors at the end of every year that make it kind of a positive time for the markets. but, a lot of people did not

call the massive rally that we saw for the balance of 2023. what gives, can hold? >> feds talk, period. i mean, i can't identify any other reason, is not like they are raising guidance on earnings and such a dramatic fashion that you will see the market rip on that basis, or there's anything else going, aside from the economy following into recession, really underlying this, dame, and i agree with this on cnbc.com today, all measures of inflation are moving towards the feds target, far faster than anyone had anticipated. you take today's core pce over the last six months, it is annualizing at 1.9% rate. what else do you need? everybody knows the fed is done, everyone believes it cuts next year. so, that is reason enough to rally. >> so the market value predicated in large part by what is happening with the fed? my, this is now a scenario, where, if you are an investor and you say to yourself, i saw huge gains over the course of 2023, i don't feel as

comfortable putting money to work, though. but, sometimes, the momentum keeps on going. do you feel as though this is one of those scenarios iran just laid out where the fed is done, it's an all clear sign for the markets overall? >> i think directionally, yes. i think in general, everything ron said i tend to agree with, inflation is coming down, that's good, markets like that, the fed is being investor friendly saying there's a big economy, investors favor that. the question is, what happens next year? will this be significant momentum? will we see a repeat? while i was talks to the same thing again? that seems a little bit unlikely, you see this massive a performance from someone in the tech titans out there. however, if we just try to put these pieces together, what is happening? macro looks pretty good, the fed is cooperating. people have jobs, out there they are still spending. if you look at stalks, expensive or cheap, they are a little bit expensive, it is not terrible. good setup, i think we put those things together, if you are a long term investor, i think you stick with mark, it's

a good odd of a good result next year, maybe not quite the massive bull market we've seen in 2023, we think there's enough positive things out there to keep folks in the game for next year. >> interesting, because ron, we are putting the chart up there for the cnbc magnificent 7, those tech media telecoms names that have given the bulk of this rally. this is one of the scenarios over the course of the last year where people have talked about a broadening out of the rally, more than just those magnificent 7's talks which were outperforming. it has been very evident in the last three or four weeks, the s&p 500 really rallied. >> the russell 2000. >> my question is this, if it now becomes a scenario where it is healthier because it is broadening, what parts actually lead the way besides that technology trade? >> i won't worry too much about leadership. i think at the end of the day, for most people, it is still an s&p play. most people worry about, we were talking about this at a dynasty this morning, most people are worried about the

concentration of the magnificent 7, they are waiting within the s&p. much unlike loyal stocks in 1980, or even tech stocks in 1999, these companies are dominant in their position, cash rich, probably will not be unseated from what they are doing in their dominant role, effectively underrating artificial intelligence. i worry less about, that about leadership. you are getting a breadth thrust, whether it is davis, marty's win in both talked about that over the course of market history. so, you can play the index is, and i think not worry all that much about let's say, the magnificent 7 thing, a source of funds as opposed to the five, seven or eight trillion dollars on the sidelines coming in, and buying the market. so, i do not get too caught up in that stuff, particularly because these companies, well, they could have a hiccup, in many ways being less vulnerable than oil companies which should come on being priced driven, versus these guys which are sitting on a massive piles of cash. >> and the cash generation part,

i think, mike, is a huge part of this. a lot of companies have been focused on by investors for their ability to generate free cash flow, be self-sustaining, not rely so much on capital markets. when you take a look at some of the stocks you cover, that go on a shopping list, what stands out to you? what types of companies are ones that you would key on for every ladies to me to get out performance in 2024, mike? >> absolutely. as we parse through the index for potential winners or losers, in general, some of the things we like to see our companies that exceed, investing their expectations quarter after quarter. that means a lot of beating and raising. when you do that, that changes investor expectations, that can increase the valuation. we see that with a lot of companies, in the magnificent 7. amazon is very interesting. they have had a lot of ups and downs, there's a massive kind of improvement coming in the e-commerce piece. there is a long runway there. that could be interesting. there are other companies. for example, apple is doing

pretty well, just not seeing those correlated results outside in terms of the relative expectations. so, there is a mixed bag. in general, i would agree, there are lots of massive cash generation going on with big companies, not relying on commodity input. they have big bearish entry, they will continue to grow, the question is will they grow fast enough to match investor expectations, which keep rushing higher? >> ron? >> yes? >> what types of companies, stock sector industries do you think are the most compelling stories for 2024, for better or worse? >> what is interesting and what is happening, despite the fact that everybody things we are late cycle, early cycle stocks are doing very, very well, right? so, again, i'm not touting this, it does not, it's not available on amazon, the book out in 2000 called the message in markets, instead of trying to impose my view of what's going on, i let the markets tell me what's happening. consumer discretionary has done quite well, we start to get a

little bit under some banks, you know commercial real estate exposure next year might very well be an issue. i think the market will tell us where the gains are going to come from. they are already starting to hint at that, the markets look more early cycle ventilate cycle, which is counterintuitive given where we are, but if the fed is indeed cutting next year, as many of us expect, you will start to see that play out in the typical more early cycle stop that in the late cycle stocks. one of our note, i don't know if we are time, but on the inflation item, p&c put out the 12 days of christmas basket. it is up 2.7% this year versus ten and a half percent last year. everything is kind of moving in the markets, not to say we will not have a pullback, or a mild recession, anything like that out there in 2024, i just think we get more tail winds then we get headwinds, fourth year of the presidential cycle is also second best year in the period. you kind of have to play the odds there. >> gentlemen, ron insana, mike bailey, i wish you both a happy

holiday season. now, let's get a quick check out to grace and kellyanne -- to the reactions of the economic data we just mentioned. right now, rick, it is interesting only because pce data, to iran's point, is just another data point that shows that things are slowing down. it is the market or traders cheering the moves there, what can we expect in the coming weeks? >> i think, look at equities, right? you have what equity, but down movement in the negative territory, the other two are not on their best levels. the yield curve is mixed, sharp majorities yields a little bit lower, and long maturity yields a little bit higher. that mixed packages telling you the truth. people can annualize these short term three months and six months on a monthly yields or the monthly rates on some of these inflation numbers, but, nobody knows whether inflation will be a linear, dom, at 3.2% on court, pce, year over year, i am sorry, it still has its handle, the feds object to this

as well. so, you can check this anyway you want, the markets have an opinion and it is mixed. if you look at a today of twos, something should jump out at you. we are inside yesterday's session, okay? if you look at two year on the week, it is down about 13 basis points as we trade. look at tens, tens have a higher higher than yesterday, not an inside day, if you look at the week, you can clearly see on the week right now, a ten year yield, down only two basis points. so, we want to pay attention to the long and, which will get a whole lot stickier, it's moving with the fed, already having a rather big move. we don't talk about the dollar index enough. right, now look at a year today chart, we are down 2% on the year and closer to lowe's than anything else. maybe what is most important, once again, that chart looks a lot like the interest rate charts, the dollar index for

the lowest growth in five months. back to you. >> all right, rick santelli out in chicago, happy holidays, sir. switching gears now to nike, but is on track to have its worst day in 26 years. 26 years, shares are plunging right now 11% plus in the session, the worst performer in both the dow industrials and the s&p 500. it disappointing second quarter earnings, lower fiscal full year guidance. it is dragging down other athletic focus stocks in sympathy. but, our next guest remains bullish saying nike's size and scale gives it a competitive edge over its peers in the long run, it expects investors to buy it on weakness. joining me now for more of that story, it's simeon seagull, senior analyst at bmo capital markets. simeon, this is a big deal. this is without a doubt component, it is nike, one of the biggest brand names in the world and it is shedding over 10% of its value in one day. why should investors by the dip?

>> you see, dom, that sounds very, very -- listen, i think everything that you just said is fact. what is interesting, if you draw that stock chart out by one month, you will see that we are flat. we should not ignore the fact that right now, what nike has done, to give, or the market, my group in general is up a lot. to think we are down the most in 26 years but we are also fought since three weeks ago is the most important point of context. what i thought was interesting last night was, i get it, let's talk beat down today, we should not ignore that. but, i think it's interesting, three stories and distinctions we have to make, we must make a distinction between what they did last quarter versus what they guided to, last quarter was great, what they guided was taking the shares down. the second thing we have to do is revenue versus profits, this is a big conversation because historically, nike has been like, let's grow, let's grow, let's grow. the revenues are the disappointing point people are talking about, upward values

are up 15%, that is a big number, especially for a company with nike's size, for making more money. that is number two. number three goes back to all of the points before this, the segment right before, it is the change in multiple versus the change in numbers here, i think it's worth putting into context. asking our question, the stock has run a lot, it's giving you breathing room because they're telling you things they will be more concerned going forward, nike is par for the course. now, we have to recalibrate and say okay, where do we go from here? from here, i think we go up. >> speaking of recalibrate, nike says it will do that in the coming years with its structure, they announced the got 30 billion dollars of the cost of the next few years, exactly what that play out like in your models and why would nike take the steps if in the longer term they still feel that growth is intact -- is there now a recalibration of what the streak should expect for nike's prospects, given

they are acknowledging that costs are being a little bit more aggressive than what they thought they should be? >> the answer to that is probably yes on all fronts. it is not normal that you hear of a two billion dollar cost cut and in the same sentence they say, we are looking to reinvest those savings. this is a very different restructuring, so let's do that and go from there. so to your point we need to move things around i think a question makes a lot of sense, whenever you do a restructuring is all involve people so when you are restructuring people and lives, does it make sense to foot the dollars around or should you analyze why we are where we got here, you and i have had this conversation around this d to see, it's not all it's cracked up to be and we believe that. i think that we are seen, the same way i just said nike

falling a little bit, profits are exploding in a good way. we saw the huge revenue beats, sometimes they're followed by dollar the clients and the profits. i'm hoping this restructuring is an acknowledgment that we need to drive this business in a healthy way, so we need to move some things around. they believe, no question they believe they are still a growth business even at this revenue scale. but, generally that takes some time. what i think as i get comforted for the stock, ultimately, the bottom line, nike doesn't trade as revenue on hold, it trades on profitability. so, what you and i need to see is those profit dollars going up. i think it's going there based on what we saw last night. >> let's look ahead to 2024. there are perhaps fundamental catalyst on the horizon, some folks talk about the emphasis on pro sports and some people said it is an olympic year, but i could drive some interest, some marketing surge on that,

what exactly do you think it's the positive catalyst to watch in 2024? yes, so when it comes to the top line focus, nike, there's always going to be pro sports. so, we have cycles, whether it's olympics or not. so, when you have to catch, one if there's enough marketing behind and you have a right eunice, you are going to win, because no one can compete with their size and scale of that marketing budget. but then, the word eunice there is very in pointing. nike needs to sell product that is compelling, and they are very exciting about what is coming up. that is where the top line, and that is hopefully, what these catalysts will drive. what i'm more excited about, personally, is this focus on profitability. that's a catalyst you can control. so, for six someone, convincing someone, persuading someone to buy your product is very hard, and they're very, very good at it. you've got to look inward and say every dollar i'm going to drive, i make sure i make more money on that. this is very under your control lever that you can believe in and take to the bank in a much

more seamless way. >> simeon seagull, b will capital markets, with the take on that. keith thank you very much, happy holidays,. sir >> you as well. it's good to see. you >> coming up the show, the triple down effect from the attacks on ships in the red sea. the bottom line. it's going to cost you more money. eventually. plus, major technology firms are making big cut back to their spending on diversity, equity, and inclusion initiatives. and which holiday movie is one on your must watch list this weekend? ok if you my pick, later on. later in the show. (sfx: stone wheel crafting) ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does.

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attacks by iran-backed houthi militants on ships in the red sea are continuing to wreak havoc on global trade. hundreds of large vessels are now rerouting around the southern tip of africa, adding 10 to 15 days on to their journeys. from places like southern china. those attacks just driving up fuel costs, shipping costs, logistics managers now being quoted with freight rates of $10,000 per 40 foot container from shanghai to the uk. whereas last week, that same cost is 20 $400. it's ten grand. for more, the vice president of --

and ideas logistics. paul, thank you very much for being here. >> thank you. >> gradient intermodal. that is trucks that stuff that's all beside trucks, shipping containers, all over the place. what is the view right now about just how impactful these attacks in the red sea could be the global supply chain? are we bound to have another covid supply shock like we did over the last couple of years? >> it will be problematic, don. right now, you're seeing and reporting on the as market rates increasing, from the freight that's pretty rounded from asia to that u.s. via the suez, that stock market pricing, you report on, that will be impactful. but you're also going to see charges that will be passed on to the shippers and ultimately, the consumer. as soon as course measure prevents these contracts get

triggered. so, the initial cost to movies under contract for a while, and to avoid the distance that someone is going to have to go via the cape of good hope. you have a lot of shippers now that are utilizing transposed specific routes from asia to the u.s. west coast, in those all have to float under the stock market, and those rates in 2023 under contract for 1000 1200 dollars. and as recent as 48 hours ago, those have gone up to almost $3,000. >> all, i'm glad you brought up, because that's one of the big questions that we had. it seems that maybe intuitive for a white person like myself if you're trying to ship goods from asia to the u.s., say, for example, that you don't necessarily have to go through the indian ocean, the atlantic ocean, through the suez, the mediterranean. you can go across the pacific.

distance wise, logistics wise and everything else, is that the better way to go if you're doing something intermodal? where the containers go from china across by boat through the pacific, but, then they're going to the west coast, as of cos to the east coast ports? take us through what all that looks like economically. >> so, those are gonna have to be booked in the stock market. so, you're going to see rates increased traffic early. as more freight gets moved over into the trade running. snow, once that freight does get to the u.s. west coast, it is going to have to then either move inland via truck or rail further east. for the locations in the greater court region that may come into. 2023 under utilized all of the west coast. so, there's a lot of under

utilized equipment and operations that could see a huge swell in volume and demand, and that could cause what we saw post pandemic. just from congestion, additional fees, charges, and et cetera. so, that, inflationary pressure, on just the ocean rates, is going to be there. you will have inflationary pressure if a lot of freight comes over with a huge wave going into the u.s. west coast. and having almost this group think situation where almost two weeks orthoformate comes in all at once, now, we're having to scramble to get that's moved inland and we're advising our clients to not join that train wreck. get ahead of it and find some other routes via the gulf of mexico, panama canal, and the east coast to make sure that

they don't join and a huge congestion issues that we might see. >> paul, before we let you go, within the industry, the conversations that you have, i'm just looking for a sense of feel. do you feel is the, or two people in the industry feel as though a so-called task force were created internationally to try to protect some of these vessels through the red sea and the gulf of aiden, is there any sense that there's even a chance that could work? that they could kind of make these things safer to go through those channels? or is this all something where you have to reroute now went up for the best later on down the line? >> you have to reroute. as logistics professionals, we have to, you know, hope for the best, plan for the worst. and hoping that you know, government entities are going to your safe passage isn't the best to keep goods flowing.

so, our advice for our clients is to utilize routes trans-pacific from asia to the u.s., and then make sure your hedging where your entering the u.s., and not putting all your eggs in one basket and hopefully, this does not go that long into the future, because the longer this goes, the more potential we could see per container rate spike even further, and more importantly, going into 24 were under contract season right now with ocean carriers and shippers. and that's going to have a long term effect on inflationary pressure on container cost for you? because you are making deals now with all this uncertainty in the market, and, that we're going to be seeing this stretch in the 24, early 25. >> all right, paul brazier with the latest here on what's happening with the red sea. thank you very. much happy holidays, sir. >> famed you, doc. thank you. >> ahead on power lunch, is it game over? china announcing new rules,

possibly, to curb spending on video game platform, stealing a big blow to one of the world's biggest gaming markets. we'll get those key details, coming up. power lunches back into.

welcome back. the white house this morning, releasing long-anticipated guides for tax credits tied to the emerging hydrogen industry, stevens is here with those details now this is a big deal, it could be a lot of money for companies like could really depend on it. >> we are talking about 100 billion dollars in credits here, this guidance is very much delayed, talking about it last march, the reason why it has taken so long, there are so many different opinions i want the hundred and tax credits should be, because there's a sense the of make-or-break the industry. what we saw from treasure today is that they did guide in terms of the strictest environmental standards. talk about the infancy electricity used to produce the electricity, there's three key

things, additionally, regionality and time matching. so, what treasury said today is that, hydrogen has to be used with new, clean power, added to the grid, not more than three years old, has to be in the same region as the hydrogen facility. it has to be matched on an iowa basis up to 2028, and then an hourly basis. it is he specially the third point, the hourly basis that some industry players say is just way too strict, way too stringent, will deter billions of dollars in funding. this will not let the industry get off the ground. that said, people on the environmental side of things have said, what is the point of having these credits if we are not strict? otherwise, the fear is that then you will be iding just so much more, maybe coal or natural gas to the grid in order to make the hydrogen. this is the proposed guidance, now there's a 60 day comment window, we will probably hear a lot, this has been key for the industry, they've been waiting a long time to hear this. >> right, thank you very much, pippa stevens for that.

let's get out to bertha coombs for a news update. good afternoon, bertha. >> hello, good afternoon, dom. the biden administration announcing today that it is reopening to key international crossings to rail traffic after shutting them down for five days. more than half a billion dollars rail freight was halted along the texas border as a record surge of migrants are crossing into the u.s., combined el paso and eagle pass account for nearly 36% of all cross border rail traffic in the past year. according to government statistics. a congressional oversight committee has launched an investigation into the military's osprey program, after the crash in japan killed eight members of the air force. special forces, virtually, the entire fleet remains grounded worldwide. and, sean penn's disaster relief charity is reportedly laying off nearly 30 people,

according to bloomberg report, corresponds is cutting costs in anticipation of a 20 million dollar deficit for the year ahead, it told employees this month that fundraising was slow this year, citing among the reasons, a business leak investigation over financial management, and its response to alleged sexual harassment. in the meantime, dame, i hope you have yourself a very merry christmas. maybe santa will bring you one of those patrick mahomes golf carts. >> i just want one that looks like a 49 years golf cart, and all be just fine. bertha, merry christmas to you as well, thank you very much. coming up on the show, pay your way, by, now pay later is booming, as more and more consumers opt for installment payment plans, even for everyday purchases. so, who is actually catching in on the trends? we will find out when power luh returns after this.

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you're probably not easily persuaded to switch c mobile providers the for your business.. but what if we told you it's possible that comcast business mobile can save you up to 75% a year on your wireless bill versus the big three carriers? did we peak your interest? you can get two unlimited lines for just $30 each a month. there are no term contracts or line activation fees. and you can bring your own device. oh, and all on the most reliable 5g mobile network nationwide. wireless that works for you. welcome back to power it's not just possible, it's happening. lunch. the way we pay shifted dramatically this year, arguably, over the last several years. kate rooney joins us now for today's tech check with a look

at what's in store for the payment space in 2024. specifically, with that by now, pay later trends. >> yes. that has been one of the big payment trends to watch in the new year. you've got by now, pay later. also mobile direct bank payments, and of course, a. everybody talking about it. we'll start with that now. we have seen the biggest transformation by far of the group dimension there. according to adobe, over 40% over thanksgiving week. it's up 30% this year. these installment basements used to be for big ticket i comes, like a peloton or a couch, for example. but tumors superstar to feel a bit of higher interest rate, some of these interest-free options are becoming everyday spending tools. some of the tough categories this year for buy now pay later? groceries, toys, and cosmetics. firm has been the name beneficiary here, more than 400% this year, square and paypal, as well as apple, and the card companies also compete in this space with their own operates. , then you've got mobile shopping. another trend that really took off this year. up 14% in the holiday season.

a hidden record, according to adobe. smartphone shopping made up more than half of all holiday sales for the first time during this holiday shopping season. shopify and amazon could be key winners for this trend. , then you've got to direct bank payments. that really gained momentum, one going directly to your checking account. it's been a win for merchants here, increasingly seeing utility providers, especially offering discounts for consumers that's opt in. it's a way to limit credit card interchange fees, and, then a.i. doubt, the ceo of plugging spoke to zach bray. he told me it's on the rise, but it is a trend that comes with both pros and cons. >> on the positive side, a lot of consumers are excited about having and everything from chat bots that help them save to better tools to help them analyze their spending and decide where to put their money. and the negative side, it is a big accelerant of fraud. so, fraud and financial services is at an all-time high. it's an area where we as an industry have to come together and really push on it.

>> so, both sides there. but the big loser in this space this year has been store credit cards. those originations were down 17% amid higher rates, according to equifax. back to you. >> all right, you might have to appeal some of those bonuses they pay out for those records in the future to compete. thank you very much. we'll see you soon. have a happy holiday. >> you too. >> coming up on the show, tech giants like meta and google made deep cuts to diversity, equity, and inclusion initiatives in 2023. after making very bold promises for those initiatives in the past years. we will get the full story, when powerless rur aeretnsft this.

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and track market trends with up-to-the-minute news and insights. trade brilliantly with schwab. welcome back. over the past few years, companies in all industries have been beefing up their spending in support for d e i, they first, the, equity and inclusion programs. but a new article featured on cnbc.com right now assess that technology companies, including alphabet, the parent company of google, also meta platforms, have made big cuts to those dei programs in 2023 so far. so, joining us now is the author of that piece on

cnbc.com, jennifer lifs, who report some technology out in the west coast. jennifer, thank you so much for being here. can you take us through what exactly is the cut? why exactly the cuts are happening the way that they are right now, and just how big in scope could they be? >> right, don. so, what we have found is tech companies, including many of the big companies we know, made large commitments to underrepresented talent and their party organizations in 2020, amid the george floyd murder. we found this year that a lot of them have downsized some of their commitments. they have cut the ei orgs, which means things like you know, people who are in charge of recruiting and retaining underrepresented talents, cutting people in those positions, and, then as well as backing down from some of their sponsorship and participation in some larger tech conferences that help increase this

representation in the tech industry. and so it's sort of been across the board in many different ei perspectives at these companies. and the reason that are giving is generally, cost cutting. and a lot of them are sort of telling organizations and sources we spoke to that it's a measure of cost cutting and, they don't know when they look at their budget back. but some have told us they have cut their budget by as much as 90%. that was designated for dei initiatives and for increasing representation in the tech industry, which is important, because that ultimately determines how products will be made at these companies, and what kinds of users will be taken into account. >> jennifer, 90% is steep, that a massive amount of budget to cut, whether dei or any other unit. this all comes at a time, when we keep hearing about many of these tech companies and some other enterprise business customers increasing their

spending on things like artificial intelligence. so, how exactly does that click, reconcile, or does it not with the spending in a.i. versus the spending in the e i? >> right. well, but is part of the reasons why these companies and executives are actually giving, some of these organizations are saying that dei does not necessarily contribute to the bottom line. yet, they are going and investing a lot into a.i., which a lot of investors and shareholders are expecting. however, this is a problem a lot of organizations and sources told me. because, if it is slowing down on increasing representation and retaining the people that are so important to making these products for all different people of all different backgrounds, they are also speeding up at the same time, doubling, tripling down on this technology, artificial intelligence, which we saw hit breakneck speed this year.

so, those two, you know, the increase in a.i., decrease in dei, you know, history tells us that products, we have seen google and met a struggle with some of its image recognition technology, identifying black people, for example. it is very discouraging for a lot of these organizations. yes, they are looking at it as that. >> all right, jennifer alliance, big trends in technology right now with dei. you can catch that full story up on cnbc.com right now. generalize, thank you very much, happy holidays. >> all right, still ahead on this show, we have some stocking stuffer for you as well. our trader will give us his top picks for 2024 in a holiday evolution -- edition of three stock lunch, as opposed to yesterday, when i got a bag of coal, tim seymour will be right back after this. in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses

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now, time for a special holiday fiend edition of three stop lunch. he with topics of the new year's daily wagner, portfolio manager and access capital advisors. so, your first pick is cintas, up 30% over the year.

what do you like best about cintas, what are we talking about uniforms and cleaning supplies? >> dame, this company has been an absolute juggernaut. even back in the day when the pharma family was at home, even so today with a new ceo, todd schneider. i'm calling cintas my stocking stuffer of the year because yes, it has a great rental business. i think investors need to start focusing on the smaller parts of the business. it is time we need to recognize the company has evolved into so much more than just the laundry uniform company. look at santa's most recent earnings. they have been driven by the smaller parts of the business for over one year now. i mean, just look at first gate it doesn't have the capital needs of the laundry business, it has better margins, better consistent double digit growth potential with a large market opportunity. i would have to say, the biggest pushback you will get on a name like cintas is going to be valuation, with a trade

met about 38 times four earnings, but the company scale gives ability to invest more versus their competition, which continues to curate, growth differential versus these peers. that's why i continue to own this stock. >> that is cintas, number one. next up, you like chemical corporation as well, shares in the health care and meet incorporation up 30% so far this year, why chemed? >> well, like? it no, i love this stop. you know, chemed is a fairly unknown and under the radar company. but, we all know both subsidiaries of the company. on one side, you have the toss, the number one hospice company in america, on that one, you have -- the number one plumbing company, and a very fragmented market. you look at the market, i think it under appreciate two aspects of the company. first, how they've been able to handle the current labor problem within the health care industry, and the internal programs that they have utilized successfully retain employment so they can grow abc, but secondly, the consistency of the growth at rotary, the

water restoration side of the business has turned the company into a double digit revenue grow or. come christmas, if you don't have a crazy cousin eddie with a bathroom problem in your local -- because the party was full, you can call chemed, call rotary, it's a company with a competitive rate, a lot of pricing in the last, capital allocation policy that will make you more giddy than 15 classes of eggnog! >> so, cintas, chemed and finally, crowdstrike, those shares more than doubled this year, cybersecurity has been hot. >> oh, it has been hot. within the hot christmas toy, there will be a desire and willingness to overpay for something that is very, very flashy. that is exactly what crowdstrike is, a present you will have to pay up for if you want to own it. >> all right. cintas, chemed, crowdstrike, the three seas, i see what you did with your shopping list, dave. if i had more time, i will talk

to you but the saint andrew's vest you have on. other than that, happy holidays, man. coming up on the show, the l.a. dodgers keep swinging for the fences and they keep hitting. reportedly, agreeing to a three on the 25 million dollar contract with a japanese star, yoshi yamamoto, it just days after making that 700 million dollar deal with shohei autonomy. we will discuss that and much more when power lunch returns teth. afr is ♪ is it possible to fall in love with your home... ...before you even step inside?

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lunch. today, a chinese crackdown on mobile gaming is leading to a stop sell-off, steve kovach joins us with more on that story. we used to talk about casino gaining. but this is video gaming. >> specifically, online dating. chinese gaming stocks down like you said, hit really hard after new draft rules in china regulating video games were released overnight. for us, ten cents on more than 10% losing over 43 billion dollars in market cap. netease, down over 24%, bilibili down 20%, these all look at percent sales from online gaming domestically in china, hence the downside here. new rules part of a broader crackdown for the chinese government on online games. for example, this one would block online games from pushing pricey digital purchases and rewards for signage in every day. chinese regulators have previously proposed rules

requiring games to register for government approval first and limit screen time for players under age 18, to a couple of hours a day. not impacting u.s. gaming sites too much, most are in the green, all in the green right now, as a matter of fact. while these ideas are broadly similar to, the children online safety laws being discussed here in the united states, especially social media, not so much on gaming, like limiting screen time, parental approval for apps, and of, course our legislatures, they don't really like to regulate as much. not really happening here. >> also, it's the chinese communist party. so steve, let's stick around, i want your thoughts on some of these things. just a few minutes left in the show, several more stories we want to get you in on, it's closing time. so first off, mlb.com reporting japanese star yoshinobu yamamoto is set to sign a 12 year 325 million dollar deal with the l.a. dodgers. yes, the same ones. the pitcher had multiple teams bidding for his services, including the new york mets, new york yankees.

he will be teaming up with countryman show a autonomy, the sign that tenure 700 million dollar contract with the dodgers this past week. that is over one billion dollars in contractual obligations for two layers. are the l.a. dodgers now the team to beat? >> yes, mlc as locked up right now, right? and they are spent so much money as well, and they have proven that money does not necessarily by championships, but with shohei? come on. >> i said this on twitter, or x, earlier today i said, what happens if the dodgers don't want to world championship because of this? >> the mets had a great year two years ago. this year? horrible. >> a lot of payroll. all right, when peacock streams its first ever exclusive nfl games, the fourth quarter it will be commercial free. that includes tomorrow night matchup between the buffalo bills and the l.a. chargers. and the january 13th round card wildcard playoff game we should note of where it's, peacock is part of our nbc universal family, and owned by cnbc

parent company comcast. this is that deeper push, by companies to try to latch onto customers by giving them something that they would not normally see on linear broadcasts. >> also, how do you set yourself apart from netflix, the dominant player? a couple of days ago, last week, netflix released their stats, viewership stats. none of these streamers can put up numbers like that. they have to find ways to set themselves apart. one way are exclusive titles. the question is turn. where the nfl season is over, we still stick with peacock? >> i can get more sports involved, peacock is quite sports heavy. but was a holiday doubleheader of action tomorrow, the bangles take on the seniors at three pm eastern, on both nbc and peacock. followed by the bills charges matchup, streaming exclusively on peacock, 7:30 pm eastern time. and, in addition to watching football this weekend, many people will spend at least sometime watching christmas movies, perhaps, chief among, them home alone and boosting plus in december. viewership of home alone and home alone two is 20 times in the month what it is over any

other month in the year, so, steve, what is your much -- must watch movie? >> elf. >> elf? that is great? >> the only good christmas movie. >> my wife's favorite holiday movie is certainly, yes, home alone. >> home alone in theaters. >> i will drop this bomb right now, die hard is a christmas movie. all right, thanks so much for watching power lunch right now, we are wishing everyone a merry christmas, happy holidays, we will see you on tuesday, closing bell starts right now. >> john, thank you, welcome to closing bell. i am scott walker, live the new york stock exchange. it's make or break, our hour begins with a santa claus rally. whether we will get one this year after that sizzling six-week stretch for stocks. we'll ask experts over the final stretch, it could be an interesting final stretch, here is your score card, with 60 minutes to go in regulation. i thought i was going to tell you that we had turned right across the board, because, we did. now, we bounce back. the dow lost a lot of early games, taking biggest bite out of the index, that outlook was disappointed