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, one of the worst

days in a long time, snp and nascar trying to hold on to gains, it is the russell once again outperforming today, and all of this after the feds favor inflation rates, the pce comes in below expectations. rates? they are mixed across the curve as treasuries react to some pretty robust economic data all the way around today, which takes us to our top of the tape. how they're going to go with several potential challenges still ahead. let's ask dan greenhaus, social alternative chief strategist and economist here at post nine, or come back. >> welcome, sir. >> as we close the week, what are we going to do here with this market as we edge towards the end of the year, going to the new one? have we done too much, too fast? are we still set up for something pretty good as we begin a new year? >> i'm generally a skeptic at any point where the markets have gone too far too fast. there's a lot of conditions that need to be worked off. to the extent that the market

was, i will use the word insular, that's probably not the right word, it's been a very narrow, until lately. so yes, the whole year, only three seconds have outperformed, over the last month or fourth quarter? six factors have outperformed. you see the rally going out now, we own the numbers, i take that as a positive sign, it sets us up i think fairly well heading to the new year. >> you think broadening continues? >> i'd -- i do we, discuss this in the past, you have two avenues, uruguay want to continue investing a large tech names, or the broader market? this is not so easy, i would go with the broader market. >> you think we will get rotation from these mega cap names? there was one note on the street that suggested it was time to short nvidia? >> there are a lot of notes on the street, a lot of people say a lot of things. i make no comment about nvidia. listen, i don't think you need a rotation per se, because the word rotation implies that money will come out of the large tech stocks going low, i don't think that needs to be

the case, both could go up, there is a question of relative performance. they are going up a lot more than others, mega cap tech to other parts of the market. >> if you look at the market as a whole, if we break it down to individual sectors, looking at some of the restaurants, for instance. chipotle is a name storm phenomenally well. you can go smaller, wingstop, texas roadhouse all up from hotels. if you look at what they do with our money, the consumer-focused base continues to be won because of the strength of the consumer, et cetera, a lot of names exposed to the consumer have done quite well. >> you are not thrown off by a nike in a new way? you don't speak of nike directly, does that make you boys and say okay, maybe there's a slowdown coming from this? >> i agree a lot with what they have to say on the halftime report. i don't think the report is clear is that is the performance, i say that as someone involved in a nike analyst, i don't think this had anything particularly worrisome. a lot of issues were concentrated in china, less than what we are talking about, no i'm not for that this is the short answer. >> a lot bigger pictures?

the third, they saw the data has done lately, can they declare victory? >> no? i was with an ex client, now friend, we were debating this the idea the fed has won an engineer soft landing, my opinion is completely not accurate. in order to have a soft landing, you'll have to have landed. right now, we are still at the top. >> what do you mean? they are not at the top, interest rates? >> the federal funds rate control by the fed. in order for them to have actually landed the plane, they will have had to reduced interest rates by making a one or 200 basis points, and no subsequent recession has occurred. right now, they did a great job, better than i would've expected one or two years ago, i don't think they can claim victory until they reduce rates, the market remains where it is and the economy continues to chug along. >> your base case is they will do what you just said? >> right now, there is nothing in the next six months or so that particularly worries me. the job market remains strong and healthy. i think the market, again, if

the mark was particularly concerned about the economy, you would not see united rentals, train the technologies, all the industrial companies we discussed in the past doing as well as they had. the market is not broadening out into a recession for no reason. >> are you worried they might wait too long to start cutting? to start hiking? >> there is a warning, they are dancing around the penny so to speak, i don't want to ascribe any godlike powers to them, that are unwarranted, i think those are a bunch of people sitting around the table trying to control the price of money in a 20 billion dollar plus economy, not an easy thing to do. >> you don't think they did a good job to this point after barely getting up to a slow start? >> they've done a could job after a bad job. although admittedly, it was not all a bad job. listen, it bunch of participants, we have to bet on what we will call expected value for now. what is the likely outcome? right now, the likely outcome is the market continues to move higher, at least for the next

couple of months. i see no evidence in the short term that this will abate. one of my favorite topics, i still use here, is i need to be, someone needs to explain why tomorrow will not look like today. i don't understand right now why that won't be the case. >> what if i say, don't fight the fed, it's basically here at this point? they told you they would cut rates. we figure their next move would be the cut, why can't you make the leap at this point to say, you know what? don't fight the fed, tried and true. >> well, 2023, the rates went up 500 plus basis points, the tenure skyrocketed to multi decade highs. >> the market went down the mega caps until dollars sort of set the scene for what was going to happen, the finisher piled on himself. >> it doesn't end with christopher waller's speech, right now, even the equal weight is up ten, 11, 12% per year. it's up the equal weight, are a bad year either.

a lot of people, granted, they've been saved for the last month or two's worth of performance, but nonetheless, when i stand up my sheets or someone opens up their 401k, it ends on december 31st. right now, that's working in our favor. >> how sticks tier, where they live up to what they need to be, to continue to justify the multiple market rates coming down, economy stays good, earnings live up to the expectations, which justifies a higher multiple? >> we have the conversation with greg branch, the idea being 12 or 13% earnings growth is too high, it needs to come down, i agree. the irony of the market moving higher is that earnings actually have come down. i think a lot of people would be surprised here, on the market has had this terrific rally to your end, the locations for the first quarter are down by about two percentage points. eps locations for the second quarter are down by about two percentage points, down by about four percentage points in the third quarter. >> but the more stocks go up, you can't have expectations coming down too much, right? how will you justify a multiple

that historically has been able to in his self? >> it would not be a proper wall street started just if i did not say, it's not a market timing tool. if it's simply a function of the market value being too high a sale, market value is cheap, by, you would need nothing more than a simple xl spreadsheet to run your money, that's not the case. i have been told the market has been expensive for most of the last 15 years. yes, here we are, sitting basically at record highs or whatever. listen, valuation is really important. we also have to account for the change and composition of the market, as tech grow used to be a larger part of the market, it has a higher level of market called 30 times earnings, and it will change to the broader markets valuations. it's why you can't simply compare the valuation of u.s. equities to set european equities because of that averaging 14 tech and financials. so the market will get more expensive as tech does better. that is inherent, not necessarily a bad thing. but again, you have noticed this in the past, you can look

at the valuation of the equal weight which should a pound account for that, the equal weight index including the big sevens not particularly cumbersome. >> those who are just nutmeg happens extended from a multiple standpoint as it is because, the growth rates have been going in the opposite direction, or the multiples expanded. >> that's illegitimate authorization to make. i would counter that by saying, those talks still have growth rates, earning growth rates that are multiples of what the broader stock market is. we will be lucky. >> of course. >> yes, that's why they have premium valuation, ultimately, that is what matters for that sector right now. also, let's not pretend, we are talking about seven stocks, like, we are really talking about 20 stocks, 20 companies. google, youtube, meta's instagram. tesla has the charging network, if its own stock, it would be a huge company. microsoft is 17 companies. twitch, linkedin, amazon is whole foods. there is a whole bunch of stand-alone companies within those seven. that does not excuse the over

valuation, if you will. it does, i think, diminish some of the arguments that only seven stocks are doing all of this work, which well true, we also need to take account of the fact that there are a lot of companies within those seven. >> let's bring in alicia levien, right now, of management, nice to see you as well. >> great to be here on a friday afternoon. >> you don't think there are over extended yet? >> i don't think they are overextended. i think that, do you think that you can sell it and by the equally weighted s&p or to buy small cap instead, that is likely a seasonal mistake. while they could be struggling in the first part of the year just because they aren't so far, there is some reversion's in the first part of the year, ultimately, i think the better idea is to come out of cash, where we have six trillion dollars in cash. typically, cash does not, it does not go lower overtime. the last 20 years, cash keeps building up. i think a better idea is to go into some of the underperformers, over the last 1 to 3 years, whether it is health care, industrials or

even some energy names, and hold on to your large cap to -- large cap tech and overexposure. you can time it, ultimately, if you are not, there you are not going to get the benefit of the margins or earnings. in the end, what we know about these names, large cap tech is that, they can pull a lever on expenses, any quarter they need to and bring it down to the bottom line, and blow it out of the park. if you are not there you will not participate in that. in the end, that is where the growth is, that is where a.i. is. i think it is a mistake to think that there is a relative trade here, you are better off somewhere else, like small cap. >> it does not necessarily have to be instead of, it could be in addition to? >> that is what we are saying, in addition to. if all you talk about this with t bills and cash, which is a lot of what we have heard this year, cash is set to underperform in 2024. take the cash, go into other parts of the market but keep your exposure where it is. why take the tax event, first of all? why times --

y try to time this? why would you leave the names that have been so strong? as dan said, in order for me to leave the overall s&p, which is in the end very diversified, financials are the second largest group, in order to leave that, i have to believe something else is happening in the economy, we have no idea. why do we know? we know the feds will cut, inflation is going in the right direction, earnings are growing. we are at 8% for next year, not 11, 8%. that is a setup for a pretty decent year, as long as there is no calamity out there. >> what happens when someone like tom we suggests small caps can go up 50% next year? for many of the reasons you are talking about, inflation coming down, economies hanging in there, that is going to cut several times, we think. >> in the end, 40% of the -- are on our nerves, and they are flipping that. even if rates are lower, these companies still have to refinance at higher rates, it might not be at 7% but it is

still higher what they have, and they are non-earners, leading to borrow to grow. >> it's like having maturity is coming due in three weeks? to make that point as well. people talk about it, as if the cow and it will turn and maturity comes oh my gosh, they have to refinance right now at these higher rates? >> for a small cap, it is sooner. large cap, 2029. >> before all of these companies, they have loans, for a viewers who do not know, loan prices almost immediately by, the so-called maturity wall hits. small cap companies, they tend to be -- the tangent of this conversation, if you know interest rates are coming down next year, what do you do with that? well, you don't want to be in t bills, you don't want to be in t bills, obviously, rates will come down. who is likely to benefit from the reduction interest rates? well, a lot of biotech companies, technology companies, earnings around the future for evaluation perspectives. that is sort of the easy stuff, small caps. if you are talking to leslie picker earlier today about some

of the kkr and carlisle type companies. >> private equity firms, the stocks have gone crazy this year. many are up 70 plus percent. >> what if i told you lower interest rates might spark a boom in m&a activity? or blending activity? maybe the financing markets are easier than they had been. well, the tech companies who in the -- engage in that company are likely what you are seeing right now. it is not just aries, kkr, bill, a whole coast of those companies who do those kind. things there are places where you can look at this besides utilities and real estate, when rates come down. there are a lot of different ways to play it. >> what about financials as a group? some would suggest under owned, underappreciated. >> under loved, under loved, right? undervalued, under loved. everyone is worried about regulation, a scenario where the feds are cutting, ipos are coming back on the market, emanates happening, i think it's a great environment. you have to be picky here. you have to choose your large

banks. i think that is a great place to be. again, that is the second, the financials, so insurance, the alternatives, and large banks, the second largest bank sector in the s&p, is set up over here for just a better year. when you look at 2024 overall, will it be another 25% year? all i can tell you is when the markets are up double digits, 75% of the time the following year, it's also up double digits. >> you aren't looking for double digits, you are looking for a single digit returns. >> i have some of the risks out there, they will be on the election year, the first part of the year, it just feels like there are some risks out there. ultimately, they are positive. we see earnings growth. we have incorporated some chance of a slowdown because to get out of this weird cycle without any slowdown, just commercialized it is a great example, where you might see some risk out there. if i didn't incorporate the risk of a slowdown, we hired. >> it's not about the slowdown, talking about this all the time,

it's a long invariable lag argument. >> just the idea that the economy will slow, the economy does printed a 5% gdp number. by definition, we have to slow down. >> of course, you have normalized. >> to go back, normal, listen, plenty of years the economy grows at the normal rate, the stock market does terrific. just to build on alicia's point, everyone will start talking about a presidential cycle, always happens with the calendar turns. you might think the stock market is up 20%, we have to come down from that someone. in five or six years, the fourth year of the presidential cycle postwar, the stock market has been up every time, when the stock market is up 20% or more in the third year, that is not guaranteed, but it also pushes back on the idea that just because you are up 20% you need to have some kind of a model race. >> we are running out of time to have a recession. if we don't have that recession by april or may, in the end, the administration's level is on the fiscal side, to steady the economy. we are running out of time for this. >> listen, the federal reserve, i am no conspiracy theorist,

but it is an election year. i don't think the federal reserve -- >> you don't sign the conspiracy theorists if you are making some of the same arguments. >> i said not a conspiracy theorist. so i have cleaned up the deck so to speak. >> i call you know what on that, when you laid out the conspiracy theorist -- >> you aren't supposed to interrupt my train of thought! listen, i don't want to be a conspiracy theorist, but it is an election year. and i think they have to be very careful, especially when there was so much focus on the fed in general, let alone what's happening right now at the presidential level. >> or areas like health care and energy all of a sudden wake up and start to do better, alicia? >> i think, idiosyncrasies in health care was change this year, was all about -- if you want a click one, your valuation crashed. i think there's some reversion there. the weight loss drugs, the ozempic, -- they were to stop that work in health care this year, that was it. that is definitely going to revert to the beat next year. it was just over done, and a fear of what is going to happen,

all of health care, that feels right. lower rates are very important. it was just going to be a broadening out of the market. so, it is a good place to be. >> why was it over done? i'm sitting here thinking, wow, why aren't we saying all of that a.i. hype was overdone? are we always suggestive of that? i mean, this is a groundbreaking trend in health care, why would it be, and the way that we will live our lives for the foreseeable future, why is it necessarily overdone? >> it is overdone because first of all, the runway will be much longer. there will be insurance pushback on this. it is not going to be so evil. >> i totally disagree. >> 200 million people are on this drug, it benefits from being on the drug, happens when everyone on medicare, not only pay commercial insurance. that is the problem. the problem is that the benefits are the heart disease, kidney disease, liver disease, which medicare will benefit from, but not from the commercial health care. >> very quickly, health care, there will be enormous pressure on the health food companies to cover this and say okay, we

have to spend extra dollars today to not spend x times 100 tomorrow. i think they will be enormous pressure on them to cover these drugs, not just for the people who are 65 plus, but 40 plus before they develop a type of condition. >> do you not want to own the insurers as a result on that? >> i don't want to comment on that or not, in general respect to the gop's, i think this will be, a lot of people will be on gia piece, i think they will be pressure on the companies to cover it, on the energy side of things, really quick, large cup energies had a tech year, big or small cap, up six, seven, 8% for the year. there have been some terrific names, we used to play in that space. you still have the secular tail winds from the demand side of things for energy, as a risk for sure. i think energy has got a bad rap, they've done very well. >> good interview, we will see you soon. >> thank, you great, thanks for being here as well. let's go to stevens now, for a look at the big names she is watching as we go towards the close. hello, pippa. >> hello, scott.

rocket lab is rocketing 21% higher after winning a 250 million dollar contract from the u.s. government, to build and operate 18 space vehicles. work will start immediately on the project, the company aims to conduct launches in 2027. let's talk has now more than doubled its year to date gains with today's surge. up 42% this year. and lions gate, falling 5% after announcing plans to spin off its studio business, and it's back deal with 4.6 billion dollars including debt. the move splits the companies film and television assets from its stars, cable and streaming operations. lions gate will receive $350 million in proceeds, as a result of the deal. scott, back to you. >> all right, pippa, thank you, pippa stevens, just getting started here. up next, an nfl holiday doubleheader on saturday. the bangles battle distillers on nbc, the bills face the chargers, exclusively on peacock. broadcasting legend chris collins worth will be in the booth, calling the action.

he will join the, next to set the stage, we are live at the new york stock exchange. you are watching closing bel onl cnbc. knock, knock. number one broker here for the number one hit maker. -thanks for swinging by, carl. -no problem. so what are all those for? uh, this lets me adjust the base, add more guitar, maybe some drums. -wow. so many choices. -yeah. like schwab. i can get full service wealth management, advice, invest on my own, and trade on thinkorswim. you know carl is the only front man you need. (phone rings) oh, i gotta take this, carl. it's schwab. schwab. (feedback rings) have a choice in how you invest with schwab. power e*trade's award-winning trading app makes trading easier. 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

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the software space for, now our steve kovach has it right now. >> potential merger at wall street reporting, synopsis reportedly going to acquire and this, these are two software firms that may design software for things like testing chips and processors, things like. this new price is here in the report, wall street journal does note that ansys has a market value of 30 billion

dollars, and last, night we had a bloomberg report that said ansys is considering a sale of the company. we see shares are up 50% on the new, scott. >> appreciate that, steve kovach. tomorrow night, the buffalo bills take on the los angeles chargers exclusively on peacock, featuring the nfl's first ever commercial free fourth quarter. joining us now, the man calling the game, hall of fame sports broadcaster and game analyst for nbc's sunday night football, cris cohen's worth. he's also the majority owner of the football analytics company, bff. welcome to closing bell, great to have you on. >> scott, this is big time for me right now, we will sit here. i feel like i should talk a little faster to make it sound like i am breaking some news, get right into the show, you guys are lively, fun, it's been great, i've been watching for about a half hour now. >> great. i might ask you for a stock pick since you went there. i will save that for later. let the football first. let's talk about the second game, the one you are doing. bills and the chargers, first ever commercial free fourth

quarter. the bills, they don't look back their record says they should. they still look pretty good. >> they went in and dismantled the dallas cowboys, who before, dismantle the philadelphia eagles. so, you start to feel pretty good about where the bills are, they switched joe brady at the offensive corridor position, throwing it all over, but this past week, they ran the ball like crazy. so, it will be an exciting game for us, a lot of reason to be pumped about this, especially the fact that mike and i do not know what we will do in the fourth quarter, there are no commercials. we both did talk radio for over ten years, maybe we take some calls? we do not know exactly how it will be, there will be no delay. because it is on cable, right? subscription, you will hear some natural language come out of the players. so, it will be fine, it will be different. >> how do you think you guys will handle that? you guys are used to

broadcasting these games, you have to fill in time occasionally, during injuries or other things. but this will be an entirely different muscle flex for you both? >> one thing we never want to do is it say anything negative about the people who provide commercials for our football game or for you or show, right? they pay the salaries of a lot of great announcers out there, would you agree with me, scott? it is important, they are an important part of the game. but, we are excited about it because, dating that all the way to my days when i used to work for hbo, that it was always a curiosity of, what if there were no commercials and it was just the game? it would be over in two hours, we we would be able to do this and that. a great experiment, it will be a good game. we are looking forward to it. >> let me ask you about the other game we have an nbc and peacock tomorrow, the bangles and sealers. a few weeks ago, if i said to

you well, the stealer is look pretty good. now that the bengal lost borough they are going nowhere, you would have said that makes sense. here we are, a few weeks later than that, suggesting the opposite? >> with uncertainty at the pittsburgh studios quarterback position, they don't know who they will play. jake browning has gone nuts, the cincinnati bangles, my old team, i used to play for them, i'm cheering for the boys a little bit, they really have just been astounding the last couple of weeks with some real surprises, being able to get ryan back in the range right now, they are in the playoffs. >> overall, 49 years have sort of set themselves apart in the afc, looks that way at least, the afc still looks wide open with a number of teams, i am sure that you would say, well, they could do it, they could do it. this other team down in baltimore could do is. how do you assess where we are now in the final stretch? >> i agree with you, san

francisco looks like the team to beat in the nfc. we just saw baltimore last week. the one team i would keep my eye on, sort of, is miami. because miami has so much speed on that team. when that team was right, when they are healthy, sometimes they can just be the most explosive thing we have seen since the old st. louis rams, back in the 2000s kind of thing. this will be an exciting playoff this year. i have no idea, i think the 49 is our a legitimate favorite after that. here we go. this is going to be a great year. >> let me ask you a pro football focus for a moment, the greater theme about how analytics have really infiltrated all of sports, they certainly play a role in the nfl. you have to kind of work it into the way that you broadcast games as well, before maybe a punt would be a punt, now it is a go for it on fourth downs. can you talk about the proliferation of analytics in

football? >> it has really been in the past decade or so, we now sell our data to all 32 nfl teams, and over 200 other teams around the country. college football, u.s. f l, canadian football league, all the different things. it is exactly that, a lot of, do i punt, kick a field goal, go for it on fourth down? we have seen the games fundamentally changed since the mathematicians have taken over the world, you know, clearly in your business, we have seen that for decades now. but in football, it has really been in the last ten years, essentially, things that every coach in the world took for granted, this was the truth, this was how you had to do it, no longer true, it is just not. the mathematicians told us all that we have been playing football the wrong way for the past eight years. now, almost everybody is adopting the new, mathematical way of making decisions.

>> it's got to be a big change for coaches, i would think, who have to rethink their game plans a bit, based on a third and ten, they get eight yards, what they have to do next? >> i think almost probably like it does in the business world as well, it takes pressure off of decision-makers. most of the hard decisions are those 51%, 49% kind of decisions. when you get there, the thing you have to remember is you will be wrong 49% of the time, no matter what you do, right? this is that 50/50 call. when you go to a press conference at the endof a game and go, why did you do that, coach? you lost the game. well, the math said this gave me a 2% edge over doing it the other way. you want to do the math? do it yourself, that is what our guys told us. so really, i think a ceo or

anything else, any other ceo, you want all the ends you can get, sometimes the margins are really small. >> well, have a great call. we will be watching. rest the chops, you will need them in that fourth quarter, we will talk to you soon. >> scott, i think you could be our third in the booth, and down you want, come on over. >> i will do the collins worth slide anytime in the booth. see you guys, have a great end of year. >> thanks, scott. >> take care, that is chris collins with joining us, a reminder, don't miss an nfl holiday doubleheader tomorrow, bangles take on those dealers at three eastern on nbc and peacock, followed by the bills and chargers at 7:30 eastern exclusively on peacock as we said. straight ahead, five star stock advice with markets near recent highs, capital wealth planning kevin simpson joins us with his latest portfolio moves, including the one name is buying, already up 100% is, year we will tell you what it is when we come back with closing bell.

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trying to find footing as we closed the day, attempting to extend that year end rally. here to share a five star stock picks as we head to the new year, kevin simpson of capital wealth planning. welcome back, good to see you again. >> thanks, -- >> pretty active as always, added the caterpillar, i'll be, i'm added -- talk to, me why? >> well, if you remember, we had our apple position called away, we have been recycles proceeds back into the tech center. we had a little cisco, we like ibm, old-school tack, 4% dividend. it seems like they are finally getting into the a.i. game, figuring out a way to use it from a profitability standpoint. i still think it is old school tack, what they do with watson, x, remaining to be seen. lots and lots of cash flow. scott, trading for three or

four years, it is just starting to break out that there is a continuation of this broadening we have seen in the past month or two, into 2024, which we fully expect. we are thinking these other stocks will benefit from it. that is the trade on ibm. >> yes. also, you are essentially making the point as well, when you say you had apple called away. apple has not given you the opportunity to get bagging because it has been steadily moving towards $200 a share, right? >> yes, but i don't know if it is worth it, you know? the multiple on apple's a little bit stretch, on the higher side. for the past 11 years, whenever the apple multiple is gone up in the 30s, we seem to get it called away. the previous eight times, we were able to get back into it, lower on six of those occasions. two times, we had to pay more into. it probably did not brag about it as much with those two. this year, we were able to take a position in broadcom, boy, for the past month or so since we have gotten into that, it

has outperformed apple bile eps and bounds. we are thrilled with that trade. you tease in the commercial, we bought more of it this week. and the thesis is that this stop through has plenty of room to run, with the 23 forward multiple, this is still a cheap stock. now, i don't think it will go straight up without giving us other opportunities to get into it, we are now in a three and a half percent position, it is making us look smart heading into the year and. about one month ago, i could not wait for the year to be over, because we have dividend managers, not participating in the magnificent seven, maybe a little bit of a frustrating year for 2023. ever since the fed through in the towel, we have now seen our stop's not going up, boy, i wish we had another couple of months in 2023, instead of just a few days. >> why don't you think it will continue into 2024? >> i think it will. we are operating on his portfolio managers on the

gregorian calendar, if i could put more returns into 2023, the better. >> stuff the stalking a little bit? i hear you. >> give our shareholders something to smile about. >> i do not know, i want to make a leap and suggest that you sound too need to be more bullish than you have been in many, many months. >> 100%. once the fed dividend is a game-changer because it's really tough for me and my space to make money, when rates are going up, what we need the first thing we need was for them to stop raising rates, we got that, the stock market has responded as we have all seen. i think that is a tremendous catalyst to be really constructive for stocks and not just for the next few months, really, for the next few years. because, you might get bumps along the way, of course you will. when you have a fair who will be cutting rates maybe 24, 25 into 26, that is really really

good for the stock market, at the most basic level. i still think that you need to be very careful about what stocks you own, you want to manage risks, it is not blindly having following index in the end, positive indexing. for us, if i sound more enthusiastic it is for good reason. >> you are still trimming some of your positions like visa, which is interesting, tell me why you do that? >> visa has been one of our winners, enjoying over 25% return on the stop of this year. everything i am looking at is risk adjusted and portfolio managed. if we have a stop loss to six, seven, 8% waiting, you feel a fight is too much of anything, even too much of a good thing. we do old-school rebalancing, trim is back to 5% waiting, that is what we did with visa. they still have a tremendous moat. they're probably process twice as many transactions a year as mastercard. and their p e, following 31, mastercard is 36.

we still think this is the best to read in the space. dividends are a little under 1%, they have been increasing it by 27% clip on average for the past five years. a really strong growth, no overexposure to default or things like that, it is a transaction business, a little bit of fintech. we love the stock, we want to make sure we manage it accordingly, we want to manage risk, that is the ultimate objective in our portfolio. >> quickly, you think you are done now between now and not buying anything else until you are trying to squeeze some juice out of this that you think there's more upside over the next week? >> it will be the family trading week, you know that, i know that, we will be here watching of this any pullback, like we saw on wednesday, if the all goes come in, we will be buyers, that is what predicated our purchase this week. we will not fall asleep at the wheel. i think for the most part, for most traders, this is the last day of actual training. if the outdoors go on, we will need buyers next week. >> got you, happy holidays, see you on the other side, that is

kevin simpson. all right, up next, tracking the biggest movers into the closed today, stevens is standing by with that. >> warren buffett berkshire hathaway is buying more of this energy company, we have the details coming up next. (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.

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>> all right, we are now at the closing bell market zone. cbc commentator, mike santoli, here to break down the crucial moments of this trading day. plus, details on a multi million dollar deal in pharma, and kate rooney with a look at fintechs impact on spending. i begin with you as we close what has been a pretty interesting week we are trying to hang on positively for the s&p. >> it is a rare thing. and obviously this is not anymore a hated, or achieved market. it is not on a longer term basis, a year ago, with people didn't think that the low was going to hold. you thought that the session was coming and it seemed like stagflation was a pretty good possibility. so all of those possibilities that we were bracing for that did not happen, may 2023,

essentially, 180-degree rivers of the prior year. what does that mean, it has left us basically where we began 2022. and a lot of respects. the portfolio is really important to keep an eye on a great come back this year. it is up total return, it is still down from the beginning of 2022. because bonds are still underwater. that means that the yield is an entry point. a lot of good things have happened, even if in the short term it feels as if we are having a little bit of friction after this strong move. >> starting to get some calls from a firm today, mega cap could pull back. it kind of reminds me was it a few months ago where apple was at 170, and sure enough it has been pushing 200. >> there is always a sense out there, it's understandable that everybody already owns these stocks. everybody expects them to be great. wonderful companies, nobody has a bad thing to say about them,

there is no short interest. really, they don't own these spots. but it is not so much is it another mega caps or do you bet on the field? maybe it is not going to be a year of such radical divergence where it has to be one or the other. that is an option. one of the extremes was not just that seven stocks created so much upside, but that these split during the average stock was that huge. >> if the economy remains strong, and the actually pull it off, don't fight your fed moniker. that means theoretically a lot should go up if it goes according to that plan. >> if we stay on the track where it seems like economic resilience, plus declining inflation means that the fed can be more flexible and easier, it is tough to see what really disturbs things. you can make the case the markets price a lot in that and, but it remains to be seen. >> angelica, bristol-myers,

talking to a health care deal. >> yeah, shares are up almost 50% dr. bristol-myers is saying that they will buy the drugmaker for 14 billion dollars or $330 a share. that is about a 50 person premium to yesterday's close. they are developing a drug for a schizophrenia, and that works differently than what is already out there. the idea here is to offer something that is more effective and comes with a side effects. that drug is already in front of the fda and a decision is scheduled for september of next year. it is already struggling the drug in alzheimer's disease, psychosis, and they see even more opportunities and conditions like bipolar disorder. for them, this is a big splash back into neural which is becoming a hot area for pharma. shares of bristol also have about 2% today, scott? >> i appreciate that very much. not a k true neon fintech. what are we learning here? >> it has been all about pay no, pay later. we will talk about -- it has seen by far the biggest

transformation, scott, according to adobe. it's not a 40% pop or so over thanksgiving weekend and overall, about 15%. these installment payments should be paying for things like a peloton or a couch, big ticket items but amid higher rates, interest free options are becoming everyday payment methods. you have the main beneficiary up 400% this year. square, paypal, and mobile shopping, that really took off this year and outperform dusk pop even making it more than half of all sales for the first time over the holidays. shopify and amazon, there could be key winners, and then direct bank payments. during the checking account, it helps to manage interchange fees. and the big thing is to our credit card. 's those are down. about 17% according to equifax. back to you. >> i appreciate that very much. you heard the sound effect. that means that we are under two minutes on this friday before this holiday weekend. mike santoli, it sounds like

rates across the border down today. p see you in the right direction, some of the other economic data was strong. and the tenure got a little bit of a bump. maybe four or five basis points today. >> i think that most of the pc numbers today were largely expected. they were anticipated. definitely kind of validated the view that pce is pretty close to target, but not a lot of incremental moves that you are going to do in terms of buying bonds because of it. at this point, we have a lot of supply coming in next year. so, i mean, next week. i do think that we have reached a level here where if you get below 375, you will get questions of what does that mean for the economy, consumer stress, people are trying to stretch their buying powers. so we will see if that comes to pass. >> the rally is technically is supposed to start today.

the data look like it will give a little bit, and we will see what happens on the other side of the holiday on dot, merry christmas to those who celebrate. i will see you all on the other side. there is the battle. and we will see with john forest. [bell ringing] >> the dot is drawn down by nike. that is the score on wall street. but welcome to closing bell overtime. morgan brennan is off today. this hour is nike's post warning for the rest of retail during the rest of the holiday shopping season. we will ask retail analyst for her take. what is coming for enterprise and cloud for 2024? the whole sector, seeing big gains this year. but it was under the surface, we will discuss with the ceo of cloud software company for the week. the major avenue