it afternoon, everyone. welcome to power lunch. alongside kelly evans, i'm tyler mathisen. a huge lawsuit that could have huge implications for the future of ai. the new york times is suing microsoft and openai, claiming its chat bots were trained using the new york times' copyrighted articles. even though the gains are small, record highs are being taken out, seemingly, every day. the number to watch on the s&p is 4818. that is the high set two years ago. we are about 30 points below that level as the index is just turning negative and giving up some of the gains we saw in the past hour. although, stocks are generally rallying as a bond yields continue to fall. a hair below 380 after that strong five year auction last

hour. a very strong drop from a few months ago when i briefly topped five. apple getting a legal win in the patent case involving the apple watch. an appeals court ruling to pause that import ban, and tesla shares are higher as the company is expected to post another quarter of record deliveries, that -- but that won't be enough to stop byd. the chinese company will soon pass tesla in world wild sales of electric vehicles. the s&p 500 nearing a record high, a high not seen in a couple of years. ed your danny, president yordani research. >> 6000 by the end of 2025. i think this is a bull market that has legs, that will continue to charge ahead. i think what we are seeing here is a significant relief rally, and the relief is that we will

not have an economy wide recession, and inflation can come down without a recession. >> let's get the market reaction from jack adelman, of crescent capital. jessica inskeep. jack, let me begin with you. valuations are not stretched if you look at the broad market. there are some parts of the market where the valuations are high, historically. others, where they are low. is there any reason for this market not to keep climbing? >> well, it's funny. i have known ed yordeni for a long time. he was bullish for a long time. but, this time, i think he does have a legitimate case. it's a bit of a stretch, 5400 would be 20 times 2025 earnings, so certainly within the realm. we would need a 10 year triple

bond yield of about five, which would equate to a 10 year treasury around 3 1/2. not too far from where we are today. really, the whole thing is predicated on -- it's not a stretch to get the 5400 >> jessica, where are you on this argument? >> i'm definitely in the bull camp, and i do believe earnings are the next catalyst we are going to be looking for, and we are leaning toward the overbought territory, so i'm looking for some consolidation, but i think the question we should be asking is, can we have this increased growth, and can we have a deflationary environment at the same time? we have seen that with the data. i expected to see that follow through with the market, and i really think the answer to that is ai. we have seen productivity increases with employment reports, which equates to companies being able to do more with less. >> does that get any better for market growth? >> it's what they call the goldilocks scenario.

>> you wonder, and jack you can speak to this little bit, but are we seeing any pressures, for instance, have we have seen inflation go from 9% to 2 1/2%? >> one of the things i do watch, and certainly, the retailers, you talk about consumer goods. my concern is a lot of the year over year revenue growth that they enjoyed has really been just pricing. volume growth has not picked up, but revenue growth, certainly, aligned with pricing. if we do get this inflation, and potentially, deflation, that could turn things around pretty quickly. >> some would say we are going to get that, or get that in pockets, and other say, not so much, especially in services and that kind of thing. a little bit of cushion. >> absolutely. services are the sticky ones, but we are seeing it in goods.

we have this resilient selective consumer. we saw it with going to the taylor swift concerts. we just choose where we want to spend our money. >> it requires some resilience to afford taylor swift. you have to have resilience. >> you certainly do, but not resilience to go there. >> are there sectors you have your eye on as values right now? >> absolutely. it's definitely broadening out within the values sector. i think financials may be set up really, really well. that chart also looks really good. that will definitely play out with the fed pivot that we see, so that should be interesting. overall, i do think there are pockets within the economy we have to pay attention to. the ai story is still the growth that has not been recognized, and therefore, those really high pes that we see with that magnificent seven, are actually justified because the e in that equation may not be correct. >> jack, among your choices is one financial, t. rowe price.

there, you or put up with what jessica says, but also a couple of realty plays that have -- not necessarily high, but high and growing dividends. >> that's it. it is actually consistent with the financial play. i think what we will likely see this year, if the fed follows through on what we expect, is a yield curve that will finally be positive -- positively sloped again. we could see, for example, the overnight rate trending towards three. we may have three or four, 3 1/2 to 4 1/2% of the 10 year period that's a great environment for realty plays. of course, t. rowe price. if ed yordeni is right, t. rowe price should do pretty well. >> we talked about ai and financials, but where do you see the biggest opportunity, whether in the charts, or generally speaking for next year?

>> i'm still going to keep it with ai, meaning i think it's kind of obvious where we have seen it play out, so far. there is astronomical demand for it. they can't meet that demand, even with some of the forecasting coming through, but that is just a piece of it. when you want to build a large ai language model, you have to start with mega chip processors. the companies that have the biggest data sets are primed to benefit, and it takes a while to recognize revenue, and then there is the story of spending and resiliency that will go into the company. it all moves in harmony if you think about it. >> does that make you bolster any names in particular that we haven't talked about? or, is it just a move on the s&p 500 we should see broadened? >> there are definitely specifics. it starts with the ai narrative, the video, the chips, some software, some data security, things like that. the direct to consumer side, so adobe, spotify, microsoft, for sure.

meta, google, we will talk about that a little bit later, and then it's going to translate over to be to be. this is what it takes to create those models, and we have to see the companies that have the biggest data sets, which actually brings me back to the financial services. i'm looking to see what bank of america does with all of the data implemented with ai. >> florida, well represented at this table. jack, i know you are in florida, and jessica flew up from jacksonville. we will see you, jessica, a little bit later. thanks, jack. ahead on the show, we have some technical support for the new year. we will ask which charts are set up best for 2024, plus the money pit. with rates heading lower, home prices are back n the rise according to tuesday's data. a bad sign for affordability, and all of those first-time buyers trying to break into the market. we will talk about that when power lunch returns.

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of falling mortgage rates and make affordability in even worse in 2024? >> way to kick it off. we are coming into 2024 the strange set of circumstances in housing. you have rates coming down off their recent highs, but prices never came down during those high rates, and the supply of homes for sale is still far lower than it should be given strong demand. let's take a look at affordability. mortgage rates started this year at 6 1/2%, rose steadily, jumping over 8% in october. they have since fallen back sharply and will start next year right about where they did this year. here's the difference between a 6% mortgage rate and an 8% rate. if you are buying a $400,000 home with 20% down on a 30 year fixed at 6%, your monthly payment is $1908 without insurance or property taxes. at 8%, that jumps to $2348, so a difference of $430 a month, or $5160 per year, and for

those on the edge, that is real money. lower rates do hope on the monthly payment, but home prices continue to rise, and the gains are getting bigger because of the low supply of homes for sale. sellers were a little more active this fall, but the supply of homes for sale is still about 38% below pre- pandemic levels. that will keep home prices strong, lower rates help people afford more homes. what will be interesting to see is if the spring season is pulled forward. that is, people see the drop in rates, and want to jump in, either buying or selling because they want to beat the competition. >> diana, thank you very much. those falling rates have been a huge boon for homebuilder stocks. they have seen big gains this year, but our next guest downgraded a bunch of the builders to neutral last week, saying that the good news may be already priced in. it's good to have you come and we have been speaking with a

lot of bullish colleagues of yours lately. you are going a bit against the grain here. >> a little bit. the move that we've seen, that we've talked about since the beginning of november, along with what may be, in terms of the lack of supply like diana was talking about. i don't know that we will have enough homes to be ready for all of the demand coming, especially if rates move down. it's a good time to step to the side for a little bit. >> that's interesting, it's almost a problem to you. it's a good problem to have, not enough supply? >> yeah, potentially. i think that is one of the reasons when you look at the names that we like, we are focused on, not only affordability, as well as we do believe there will be higher volumes in 2024, as we said in the downgrade note. our long-term bullish thesis has not changed on the group, and we think there will be single-family starts next year, and potentially, remodeling is

down a little bit. we think we will see more starts coming out of the ground in 2024 versus 2023. >> long-term you are bullish, and you think if there was more supply, the builders could do better. let's talk about valuation. what are the valuations are you looking at? do you look at bulk value? where are we by historical standards? >> if you look at where we are right now, we are about 1.4 times our fiscal 2024 evaluation. that is about the same level we saw in late 21 when the group peaks before, but nowhere what we saw when we were trading over two and half times, so in my mind it's not so much about valuation, as it is about the groups having a great run. i think there is a very strong leaning when we talk to clients, that rates are going to come down pretty quickly in 2024. if something knocks out off track, that may slow down demand. that's something i'm a little

worried about. but also, you look at what prices have done, and we've seen price growth on the year-over- year basis, and that started to accelerate again. october's reading was 7% over last year. we are seeing prices accelerate again. mortgage rates have come down, which certainly helps, and the builders, to their credit, have found ways, whether it's mortgage rate by downs, incentives, price cuts, to keep that affordability working, and the question is, if something derails, the slower rate story, i think the group might see -- >> i guess the question is, not so much our builders in a good place, because it seems to me they are, because existing homeowners are not putting their places on the market. existing home sales are down. where does the inventory come from? it comes from new building. on the other hand, i guess the question is, have we already discounted with the big arises

in an awful lot of these builders, a lot of what could come in 2024? in other words, have we frontloaded some of the stock market gains that these builders might otherwise experience in 2024? >> i think for the site builders, pulte, you may be correct, and that's one of the premises of our downgrade. i would say, if you split it into two separate camps and you look at the manufactured housing space, capco is a name we like there. there was an over inventory situation. those inventory situation seemed to affix themselves. we do think they will see volume growth in 2024. that's a name we continue to buy here, but for the core builders that we cover, i think we have priced in a lot of good news already.

>> thank you very much for joining us. we appreciate it. >> have a good new year. thank you. further ahead, risky business. the eu delaying a 50% tax on whiskey shipments from the u.s. hallelujah, a sigh of relief from the distillers. that story when we return. i'm anxious to get some whiskey and talk it over. we will be right back. a force to be reckon with. no, not you saquon. hm? you! your business bank account with quickbooks money, now earns 5% apy. 5% apy? that's new! yup, that's how you business differently.

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okay, everybody, welcome back to power lunch. the electrical grid is having a hard time keeping up with current demand, leading to a few well-publicized outages over the last two years, and demand is only increasing. electric cars being one contributor. one-way utilities are trying to keep up, i was speaking to a friend, it isn't necessarily, he says, that there isn't enough power generation capacity, but that the grid can't keep up. the transmission, the delivery of the power. >> that is one problem. there is also the interconnection queue, which is backlogged. it's hard to get these new

projects online. what we are talking about today is a virtual powerplant. this idea is by no means new, but we are at an inflection point with electricity demand growing, and more renewable energy sources like solar. what is a virtual powerplant? at the simplest, it's a collection of hundreds, thousands, even tens of thousands of grid connected smart devices. when you group those altogether and they are acting as one, that can have a really meaningful impact, in terms of a balancing load on the grid. let's say you have a smart thermostat, and it's really hot this summer, everyone is cranking up the ac. let's say you opt into this program that allows utility to control your thermostat. if they lower everybody's houses by one degree, you are not really going to notice, but that has a big impact on the demand on the grid. as we see more and more distributed generation, as utilities deal with more and different types of power, that isn't necessarily conducive to the way that it was initially

built, which is a centralized behemoth, one structure. so, they are trying to adapt to how we now consume, and the types of devices we are using. it also reduces cost. that's a key thing here. >> if kelly and i both have smart thermostat >> i want some cash if i'm part of this. >> the grid provider says, okay, we have to reduce your temperature by one degree and one debris only, and kelly wants it colder than that, what happens to kelly? >> kelly can say no. these programs are set up in different ways, that the majority of them have the option to opt in, so you opt in to begin with, but you can opt in or opt out on specific instances. kelly might say, no, i don't want to do that, or another example might be when you charge your ev. when everyone gets home at night, they all plug in at the same time, and that stresses the grid. if you say to your utility, you

can shift when i charge to 2:00 a.m. this benefits kelly and the utility, because kelly get the credit for the power she is not using. >> will i get a better price if i charge at 2:00 in the morning? >> you do, if you are on a time of use plan. >> i do have an ev, and i do charge it at 2:00 a.m. when i look at the price on my bill, which is indecipherable, i can't figure it out. i thought i should get a better price since i'm waiting until 2:00 in the morning. i'm not doing it in the afternoon or evening. >> in theory, you are supposed to. sometimes you are paid directly and sometimes you get a credit. if you think about it in the sense that the utility doesn't have to build a plant, then maybe it's only used for a couple of hours per year. if they have to build that, your bill will go up because you are paying for those generation assets. maybe you don't see it on your bill, but if you think bigger picture, if they are not having to invest that capital in a powerplant, and instead, tyler mathisen is not charging at

7:00 p.m., ultimately, that could benefit you as well. >> are there any regulatory roadblocks to these gaining more traction, or is it a question of more households being equipped with these devices? at some point, they should start handing them out like candy, because it sounds like they would benefit more from people having them. in our house, there has been some pushback to the smart thermostats, because it's a little creepy. >> people think that utilities are handing out smart thermostats for free as a way for people to sign up for these, but not so much regulatory pushback, but a lack of awareness. utility planning models are so specific and they have to answer to regulators. there is just a lack of understanding, a lack of knowledge, and i think a hesitation, because when there are outages on the grid, it's so high-profile. everyone is so mad, so up in arms. they are trying to look at it as, how do we make sure that demand and supply always match? maybe not necessarily understanding the true potential of what it could do if everyone was opting in.

>> i will bring you my bill tomorrow. thank you. let's get to christina parson now for a cnbc news update. >> a new york city man accused of stabbing two teen tourists at grand central station on christmas day has been charged with hate crimes. the suspect allegedly made derogatory comments towards a 14 and 16-year-old before stabbing them at a restaurant inside the terminal. he is being held without bail after pleading not guilty on tuesday to attempted murder. florida city remove the confederate memorial today following years of controversy. it is unclear where the monument will be taken after its removal. new york city's iconic new year's eve ball got a makeover. organizers of the annual celebration unveiled the balls new design today. it features a new beau, ty, lighting pattern, and its new nickname is the bowtie of midtown manhattan. as you can see on your screen,

the entire building is still under massive construction. they are spending $500 million. i see it every single day, because my desk is right in front of that building. that building won't be ready until 2025, but it will be a big tourist destination. >> that's cool to get a little glimpse, for us, for those that don't see it everyday. >> it's a little less cool when there is blockage, construction, and tourists. still to come, a roller coaster year for the media space. growing competition, backlash from subscription fees, and the hollywood strikes delaying content. after the break, we will hand you a tv guide to movies and streaming in the year ahead. rylee! from rylee's realty! hi! this listing sounds incredible. let's check it out.

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welcome back, everybody to power lunch. amazon has just announced official plans to show ads on its prime video service, in an effort to investigate compelling content, increasing investment over time. the shift to limited advertisement will begin on january 29th, and for customers

who choose to continue add free, it is an additional three dollars a month to avoid the ads. for more on what this means for the streaming rivals, and a recap of what has happened in hollywood this year, joining us now is janice men, always great to see you. it does seem to me that right now, if i do say so, the legacy media companies are getting there kicked, to use a colloquialism. by netflix, amazon, and apple. am i wrong or right? and hulu, a little bit. >> unfortunately, you are right. it was really the tale of two economies this year, and the legacy studios. those ceos have run out of moves to make, and you have seen that all come crashing to this horrible end at the end of

2023, where, in particular, paramount global is flailing around, possibly merging with another company that is flailing around, warner bros. discovery, trying to make one plus one equals three. i'm not sure a lot of people agree with that. all of these companies -- >> -- you see some streaming services that seem to be really dominant and efficient and effective. netflix among them. amazon, clearly, with thursday night football, has helped legitimize it and helped people find it, but then i look at paramount plus. i don't sense a lot of traction there watching the uefa league. max seems to be a step backwards from calling things hbo, where they had an established brand. i speak gingerly about the home

teams product, peacock. >> well, tyler, you could add all of the subscribers of all of those services together, and you would barely be the thumbnail of netflix's subscriber base. i think that whole glee that the town felt around 2022, when netflix had the great correction, they thought this was a moment for them to strike. the fact is, netflix won. they are too big to fail. the most important thing is they don't have the albatross hanging around their neck, of legacy businesses. they don't have a cable tv business. they don't have a broadcast channel. these are the things. even though we talk about streaming, streaming, streaming, these legacy businesses account for these businesses, about 40% of their revenue still, and it is sinking. therefore, you are seeing the stocks respond to that. >> can you remind me, when you watch thursday night football,

does it have ads? >> yes. it does. >> janice, here is the oddly infuriating thing. consumers balked at linear cable. you know where i'm going with this. >> i know exactly where you're going. >> because of the ads, we invented the dvr because we could skip them. then, we invented streaming for a better ad free experience, and then we get amazon's innovative prime thing, i can't fast-forward, dvr, or record anything, and with commercials. what is the innovation here? >> the innovation will be that you will be on hold for 45 minutes with time warner cable begging for that package to come back. >> there is no one i can talk to it amazon either about that. >> you can talk to a chat bot, i believe, who will send you a link that doesn't quite work. to me, the end of 2023, it's the final referendum on the streaming economy. with amazon's move into advertising, and by the way, this is going to be the monster

of streaming advertising. it's going to e second to youtube in scale. it's going to drive prices down for netflix, for hbo max or max, peacock, all of these place -- places that were moonlighting on streaming, this will crush them, and it's why they believe prices will go down. this is a referendum that has declared, we have spent too much. it didn't work. the cost of scripted programming is too high. we are going to do less and try to get more return on investment, and if you want more programming, you're going to have to now sit through ads, just like you did way back when. >> they are at least offering -- we pay for youtube without ads, and at least, amazon will give you that option, and you wonder if in retrospect, instead of the dvr, you could pay for ad free linear cable, and maybe consumers would've done that, but it doesn't matter now. the past is past.

>> we had rich mayfield on fast money the other night, and he basically threw a big hand grenade into the legacy media companies. game, set, match. over, man. >> i hate to say it, because i know so many people that work there, but it is over. the days are numbered. what we are looking at, if not next year, but certainly, in the coming years, it will be a town that will be consolidated, in industry consolidated, probably into three at the most or five players. >> let's just take our parent company, nbc universal, for instance, or pick your set of cable channels. there is not a disruptor for that product. if the distribution is through a big tech company, instead of our parent, comcast, do we as a media company care? doesn't that benefit us if the person that has to pay to carry us as a channel has deeper pockets? >> listen, i think that we've seen a few things happen around

the tech companies. i think that for starters, let's take cnbc as an example. i think that independence around news falls under question. what also happens, you will definitely lose the iversity of programming as the funnel gets tighter and tighter at the top of what can be made and what can't be made. we spoke to a top television executive this week that said to us, apple will not do one thing that stands in the way of an iphone not being sold. we now have these tech giants, who are going to be making decisions about what people watch, in what used to be this thriving, independent community of creative people, and also, the problem for the creative community, and for executives, is that you lose any competitive market. if you have a show that nobody wants, nobody else is going to take it when you are down to

three buyers. it does have a harm in diluting the quality and breadth of content, and certainly, the independence of content that a lot of creative people and executives really pride themselves on in entertainment. >> how many fewer channels? we have grown accustomed to the 1000 channel universe on cable. how many fewer channels will there be when this is all over? i can't imagine that a lot of the niche players will be around in a year or two years. >> tyler, i would say six months. let's just start with cable. the carriage negotiations are coming up. i don't know anyone that's going to take the streets if free-form goes away, i don't even know some of the smaller fox channels. these can disappear. the cable companies are tired of paying for these, and they just cost money to run internally for legacy studios.

those will go away. in terms of the smaller streamers, i think it's all fair game. there could be a universe where it's max, paramount plus, peacock all in one. you have seen these losses. you see them in the quarterly earnings reports. it is hundreds of millions of dollars. it's insane. there is no other line of business where this would go on, even this far. i do think 2024, at least on the streaming side, is where this comes to an end, at least, consolidation of the smaller players, it's not just inevitable, it's the responsible thing to do. >> i do think we will be speaking to a lot in 2024. janice min, always good to see you. still to come, the new york times, speaking of legacy media, they are suing openai and microsoft for copyright infringement in a case that can rock the entire tech and media space. we will explore the fallout when we return on power lunch.

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welcome back to power lunch. a bombshell lawsuit today, but one that people did see coming. the new york times becoming the first major media company to sue over ai. the newspaper filing suit over microsoft and openai, claiming they are using the times is copyrighted work to train their chat bot. joining us on set today discuss is danny ceballos. it's great to see you. welcome. this was expected, in some way, shape or form. >> yes, these lawsuits have already been cropping up, and the theory of reliability is that by using ai to train the ai, using copyrighted material is the new york times' intellectual property, their columns, their pieces, all of their content that is out there, and for a subscription. it is copyrighted material that is for sale.

the argument is, by training ai, using this huge database of copyrighted material, they are infringing on the copyright because they will use that later on, and it is impossible, essentially, to separate what they are digesting from what they are putting out. so, what applies to the new york times could apply to, virtually, any published work, whether it is produced by the washington post, or the brookings institution, or whomever, right? >> you've seized on the key reason why i think, ultimately, one of the reasons i think the times will not be successful. the times is obviously a gigantic player in the world of copyright, but copyright attaches to a lot of stuff. the notes you make on that paper today are, theoretically, copyrightable. >> they are owned by nbc. >> exactly right. so many people have copyrights. the new york times, if they are successful, that means that arguably, ai would have to go out, and find all of these

owners of copyright, wherever they may be, a log cabin somewhere in alaska, and pay them. that would mean the end of ai. that would mean the end of the future of artificial intelligence, if that were the case. in a sense, it could be argued that the times has to lose for progress to survive. >> how would the times prove that microsoft chatgpt are siphoning their content, and when i ask a question about some medical topic, that it is coming from the new york times copyrighted material? do they go word for word and look through and say, this sentence looks an awful lot like that sentence that was published on may 25th, 2021. how did they prove it? >> you have seized on the key issue. it is probably conceded that the ai companies are digesting all of this copyrighted material. that seems to be indisputable, but the question is, what is going to be? if it is a copy of

the times content, you have a problem. that's a copyright infringement. >> it had verbatim output examples from their articles. >> that creates a secondary issue, which is why? is that a product of the ai committing a form of copyright infringement, or is that the user saying, hey, spit out something that is written like this particular writer for the times? oh, here is a first paragraph for you to base it on. that is an issue, if you put in the first paragraph of copyrighted material, then it's more likely to spit out something that is very similar. but, on the first example, if it is simply turning out something that is inspired by the writers and the other copyrighted material it is digesting, then probably not only is that not a violation, that's kind of what the copyright laws always envisioned , that we would learn stuff. in fact, the words coming out of my mouth today, i learned by reading copyrighted material, by law professors, who i will

not pay a dime for the information i got, and i'm now regurgitating to you. >> if i want to say, write me a 750 word summary in the voice of thomas friedman of the new york times, about the current war between hamas and israel, that to be a problem. >> it depends. look at the output. if the output is substantially similar to a column that friedman just wrote, then that can be enhanced by what the user requests. the example you just gave is perfect. write it in the voice of thomas friedman, but you might nudge it along even more. you might say, here's the first paragraph of what he recently wrote on this topic. now, you're getting closer to copyright violations, but the mere fact that it may be derivative of friedman, that's everything. that's what we go to college for. that's what we read stuff for. we are all derivative. there is an argument to be made that the only difference between this and what we do is

that humans do it and they put in a lot more effort. there are more calories burned. with ai, it happens instantaneously. you don't see the effort. yet another issue is the fact that stuff that is created by a machine is not itself copyrightable. that's another issue down the road. only humans, for now, can get copyright protection, but really, the key is going to be, what is the output? is it just merely derivative? does it fall within fair use, or is it flat-out copied? >> it's fascinating. >> i'm feeling so derivative it >> me too. >> thanks, danny. coming up, our chartist will give us her top picks for 2024. it's time for technical support when power lunch returns. jessica will be back in just a minute.

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party time now for some technical support. as we wrap up 2023, let's check the charts for 2024 and discuss the stocks with the best and worst start-ups for the new setups, excuse me, setups. director of product at options play. first we have ibm, it's among your top picks. what are you seeing in all these squiggly lines? >> the squiggly lines represent the 40-day averages on a weekly

period. that is one, two, three quarters worth of prices. simply we want to see them sloping upwards. that indicates really good base. i see support about this 134 and this 145. we're just meeting resistance right now. but this is bullish. we're going to have some consolidation. i expect it to move up forward. >> a little love stock for many years. ibm getting a little love there from jessica. next up is alphabet, another top pick. >> same drill here. 13, 26, 40. so important from that perspective. i've got resistance in that consolidation happening right here around that 142 line. we talk about that psychological level a lot. there is an area of supply there, which means there are a lot of people who own that security. it's having a hard time going above that line because you may be breaking even. you might say i want to get out of this security at this point, but it's a part of the a.i. story, and i expect that to

translate. >> and let's move on to one that you say have the worst setup for 2024. and that's moving in different direction, jessica. even i can see that. >> there you are. same squiggly lines. with those prices. >> not moving the same direction. >> they're not. that's what's important with the technical analysis. you look at the slope of the line and where the security is above and below it. it is having a very difficult time going above those averages right here. i would not consider that admissible until i see some continuous weekly closes above that line right there, which is about the 26 level found on the 13 weekly. >> all right, two nice, one naughty? >> that it is. >> all right, thank you very much. still ahead had, making spirits bright. the eu delaying 50% tax on american whiskey ahead of the holidays. but the problem isn't solved just yet. we'll get the latest in a live rertheweetn. po wn rur

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what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com. american distillers are toasting to the new year as a potential tax on their whiskey is getting delayed by the european union. emily wilkins is live with the details. emily? >> reporter: hey, kelly. well, it's been a little bit easier for american bourbon distillers to get into the spirit this christmas through the eu after they announced they would suspend tariffs on u.s. whiskey. the move avoids a 50% tariff from going into effect on january 1. and all this, of course, is tied

up in that larger debate over tariffs on steel and aluminum imports, which donald trump implemented way back in 2018. the biden administration has been working with the eu for two years to try to lift these tariffs. u.s. trade representative katherine tide says trading partners are working economically to incentivize fair and trade commission. they said the delay allows additional time to work on addressing global overcapacity and decarbonization of steel and aluminum industries. andy barr who pushed for an extension of the tariffs being halted, told me the eu has become a critical market for distillers from his home state. the year after tariffs were first lifted in 2021, he said there was a 32% increase in u.s. exports. >> what we have learned from these tariffs when they are on and then when they are off is

that american whiskey, american bourbon in particular can compete with any other whiskey in the world whether it is scotch, irish whiskey, whatever it may be, if we have a leveled playing field. that's why this is such an important issue. >> the sheriffs on u.s. whiskey have been lifted until march 31, 2025. what happens at that point could depend on the outcome of the presidential election. back to you guys. >> all right, emily. thanks very much. emily wilkins reporting. well the markets are kind of hanging in there today. after that sort of hiccup late last week where we had a bad day, we've seen to have gone right? >> we will see how today's actions will go and it is interesting to watch how stocks rallied sharply after the result of the five-year auction, the 1:00 p.m. hour. the auction went well. we saw the dow up triple digits. it's come off that now. it's up 49. the s&p turned negative, nasdaq up a couple. so that 10-year yield is still

below 380. >> a pretty good setup as we head into the last two trading days of the year. >> crazy. >> it's hard to believe. all right, folks, we'll leave it there for you. we'll be back tomorrow on power lunch. thanks for joining us for an hour today. we appreciate you watching power lunch. >> closing bell starts right now. all right, kelly, thank you so much. i'm scott wapner here at the new york stock exchange. beginning with stocks on the hunt for new highs and whether jeremy siegal thinks we will get there. we'll ask him in just a moment when he joins us right here. can't wait for that. in the meantime your score card with 60 minutes to go in regulation looks like this. s&p within striking distance of a new record close. we do have a new milestone today for the nasdaq 100. even several cap stocks have been muted today including apple falls even as an appeal's court grants a stay in that closely followed watch band story. interest rates always a big stor