happy new year and welcome to "power lunch." alongside kelly evans, i'm tyler ma this is. coming up, seeing red. we're watching oil prices after iran dispatched a warship to the red sea. this is the latest sign that tension in the region will not be easing any time soon. >> we'll see what that means for oil prices this year. plus, it's not only the first trading day of the year, it's also the first day on the job for a number of corporate ceos, including the likes of

morgan stanley, kraft hines, krispy kreme and others. the key risks facing the c suite in 2024. first a check on the markets. a mixed start. dow giving up the gains clinging on 11-point increase. s&p is down two thirds of 1% and the nasdaq is down 1.75% back below 15,000. >> crypto market, on the other hand, starting the year quite strong. bitcoin back above $45,000 for the first time since 2022. more op that ahead. and lots of headlines in the ev market. tesla beating delivery estimates. rivian missing those shares down more than 10%. we'll trade in three stock lunch. a big downgrade for apple. barclays lowering to under weight, saying it's time for a breather with apple. microsoft close to surpassing apple's market cap. interesting given the magnificent seven dominance last

year. it begs the question, what names and themes will matter this year. let's start with mike santoli. what do you say, mike, themes and names that will dominate the year? >> well, tyler n terms of themes you have to acknowledge, given the progress made into the equity indexes the market's pleasure threshold is higher. it will take more good news as opposed to the absence of scary bad news to keep things moving in a positive direction for stocks. but i do still think we're in a moment where good news for the economy can be good news for the market. i think the october cpi report back in november really was encouraging along this front. gave leeway to the fed to say good economic news is not something that they're going to have to fight outright as long as inflation moves in the right direction. to that point, i don't really believe the stock market, just because we're at 4750 on the s&p and the fed funds future market sees 150 bases points of cuts maybe later this year that we need those cuts to justify where

the stock market is. one year ago, the market said we were -- the fed would be cutting through the second half of 2023. it didn't happen. the market went higher. so i think those are two separate things. and then finally, i wouldn't really focus too much on the supposed cash on the sidelines argument. yeah a lot of money went into money market and bond funds last year, but that doesn't necessarily mean it's a zero sum gain where you have to watch for the assets to make their way into stocks. people have decent, healthy asset allocations already. doesn't mean the stock market hates it. >> thank you, michael. stay there as we bring in our next guest who held on to his growth tech stocks last year and had a net return of some 60%. let's bring in peter anderson, chief investment officer with anderson capital management. happy new year. welcome. great to kick off the new year with you. you held on to tech. you said no recession last year. you were right. you were right on technology. what do you say for this year, recession or not, hold tech or

not? >> i don't think there's going to be a recession this year. i also don't think that the fed is going to cut rates. i must be on a different planet, tyler, because i just cannot rationalize the thoughts of why we would have a rate cut as opposed to several rate cuts. i do think tech, some of the themes you were talking about earlier, let me add on to that. i think one of the more alarming themes is when ai gets introduced to hackers, that will probably accelerate their capabilities of hacking and will cause far more necessary diligence on protecting data. so data security companies i think are going to do well again this year. >> so, that would be a palo alto networks, cyber arc software, could be others in that

neighborhood. are you implying a little bit, peter, that some of the bloom is going to come off of the ai rose to use the cliche because of the reasons you cite, the ability of bad actors to use it for bad purposes? >> it's an interesting approach you're using, tyler. i would agree with half of that, meaning that i do think some of the bloom will come off the ai rose but not for the reason you stated. instead, i think what could happen is people will have to refine their expectations of what artificial intelligence can do. so far we have been drunken sailers thinking that this is going to solve every problem and humanity. when you do a deeper dive and look at the actual academic research, they disagree with us. they think we are far, far from emulating human thought and until we emulate human thought, we are confusing artificial

intelligence with just advanced data production. so to summarize that, i do think that the ai, we need to refine our expectations. ai is not anywhere where we think it is ironically and that there's a lot more work in research to be done before we actually have to be afraid that ai is going to take our jobs, for instance. >> well, you're sticking with nvidia, peter. you're sticking with the market and stuck with it last year in spite of all the negativity out there. and you're sticking with it even though you're not sure we're going to get a lot of fed rate cuts this year. >> that's right. i don't think that we will be dependent -- the performance of these stocks i don't think will be dependent upon rate cuts. and kelly, you know, if we look beyond say 20 years which for some of us i guess is a life time, but when you look past that 20-year horizon, rates were much higher than the prevailing rates now. so the question comes, you know, how long is a cycle? what is a normal rate

environment? and i guess i tend to disagree with the general narrative that rates are unnaturally high right now. if anything, i think they're approaching a vertex where we would think that rates are normalized and that the fed will not have to cut rates this year and perhaps even into the next year. >> so, michael, let me turn back to you and get your general reactions to what peter is saying here. 2023 was clearly the year of ai. it was clearly the year of nvidia and more broadly to those big cap tech stocks like meta which had a fantastic year. >> yeah. >> what do you see on the horizon for 2024? is ai going to be another dominant theme again this year? will big tech continue to dominate as it did last year or not? >> i'm not sure that it's going to move monolithingly as it was

perceived to have done last year. nvidia in particular is think of the magnificent seven dominance. every other stock did what it did in 2023 and nvidia was flat, the s&p would have been up, i believe, 18% or 16% instead of 24. and the equal weighted s&p would be up 12%. we wouldn't talk about this crazy narrow market. nvidia stole a tremendous amount of the oxygen. my guess is investors will look to have that theme splinter out and look for other ways to play it. i'm more interested, though, tyler in the fact that cyclical stocks continue to outperform pure defensive stocks. until that really changes, i'm not sure we have to think of it as a pure secular growth dominated type market. it seems like, you now, if the -- we can argue about whether the fed should cut rates at all. i don't think it's going to be a lot of rate cuts unless the economy buckles. but they think neutral rates are

2.5 or 3%. that's why i think the idea of peacetime rate cuts has gotten a lot of adoption. >> that's where i want to end with you, peter and pin you down a little bit. are you saying a year from today when we're back together and i hope you'll be with us on january 2nd next year, that a year from today the fed funds rate will still be at that 5.5 to 5.25 to 5.5 level or will it come down at all? >> i am hoping against i guess general narrative out there that it will stay about the same. because i think even at that level you can have a normally operating economy, in fact, probably an even healthier economy flying in the face of what some are calling unnecessarily high rates now. yes, i do not think the fed is going to cut rates. i look forward to seeing you this time next year. >> i do, too. thank you, peter. appreciate it. good to see you again. and may you have a happy and

healthy. michael, the same to you. mike santoli. now to oil, which is kicking off the year on a volatile note. rising after iran dispatched a warship to the red sea before reversing course lower. it comes as naval clashes in the critical water way escalated with the u.s. navy destroyed three boats of iran-backed rebels. tensions rise, how should we expect that to impact oil prices going forward. i don't want to skip right to the good stuff right away, john, but i think your point about watch the saudis here is really, really interesting. can you tell us why that's your first thought? >> sure, kelly. good to see you. so, i joked to your producer that while everybody is focussed on the fed put this year for the equity market, i'm actually focussed as an oil guy on the saudi pout i'm calling it because i'm waiting for them to run out of patience basically with their other participants in opec plus. we have seen opec plus fray on

the edges with angola pulling out of the cartel. and once the saudis get tired of shouldering the burden of supporting prices, what happens is what happened in the past, is that prices will fall because the saudis will unleash supply to the market that will overwhelm and then look to hurt the higher cost producers out there, some of which are right in our own shell backyard. >> they have done this in the past. refresh our memories as to the key and critical moments they did so and why. can they afford to this time around? >> they are constrained to a degree because of their aspirations about building their economy, building these products they have going. but look, i can take you all the way back to 1993 when they got into it with venezuela, similarly in 1999 and 2000. most other folks are referencing to the 2018, 2019 time period. >> right. >> i will point you to the pandemic, 2020, when they had

the most missed time throw down ever when they unleashed their supply in the market just as we headed into the pandemic shutdown, which sent oil prices negative. so they've done it before. i don't think it's their preferred methodology, but if it comes time to take everyone out to the wood shed and teach them the lesson, the saudis have the power to do that. >> is the saudi pout the reason you see oil potentially $50 a share this time next year? >> i do, tyler. for a couple of other reasons. obviously the saudi pout comes to pass will push those prices considerably lower for a time until the wagons get circled again. look, with the global central banks on the path to cut rates, they're not just doing that because they have beaten the inflation scare back. they're doing that because they see economic weakness, not only here but in europe but also our big problems in the oil market continues to be china with the economy there continuing to be lackluster. they just haven't come back. they're not coming back.

and the problems may indeed even be insurmountable to the extent they can't get that economy of theirs firing on at least six of the eight cylinders. >> so why this time, john? in past occasions where there has been tensions in the red sea and straits of hormuz and the areas there, oil has generally responded by rising in price. not this time or not much this time. why do you think that is true? >> i think -- this isn't our first rodeo, tyler. we've had so many scares in the past. look, when iraq first got -- iraq first invaded kuwait the first time, oil prices spiked to 35, $40 a barrel, quickly fell back. that's been the scenario every time since. the second iraq war, the bombing by the houthis, that's the major saudi oil facility. the killing of iran's general

solomon, you would have thought would have been a trigger point for a broader regional conflict. the folks out there just have a patience or they bide their time or take these affronts in an almost unimaginable extent. so to the extent that we're not going to have actual lost barrels like we didn't with the invasion of ukraine, we're not seeing now. and if you don't think for a minute that the u.s. fleet won't be able to keep the red sea in the strait of hormuz open, i'll take the other side of that bet in a minute. that's why. you have to have perspective. the headlines and the possibilities, yes, are scary. but it's sort of like telling ghost stories around a campfire. you know, the boogieman comes out and turns out everyone is okay. >> john kilduff, leave it on that note. thank you. have a good year. quick programming note, brian sullivan will be live in miami from the clean tech conference on thursday. he'll have exclusive interviews with key guests like the sun run ceo here on "power lunch" and

continuing with chevron and -- chevron ceo and goldman head of oil research on "last call." looking forward to that on thursday, january 4th. ♪ coming up, is this the year of crypto? with an etf on the way, probably. we're seeing some expectations for the bitcoin price to hit anywhere from 60 to -- am i reading this right? $500,000. we'll discuss that one next. a quick power check before we head to break, on the positive side. moderna oppenheimer citing optimism on the drug pipeline. norwegian cruise line, i root for people of the cruise lines. continuing to decline from last week along with the other cruise stocks in the space. that's your power check. we'll be right back. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery.

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♪ welcome back to "power lunch." bitcoin soaring above $45,000 today for the first time since april, 2022 and hanging on to its gains, by the way, as we move through the session as the rally of crypto rolls over into the new year. the entire space reaping the benefits of this bull run, mining stocks, bitcoin crypto mining stocks saw huge gains last year, as you can see. it all comes as traders grow excited about both the possible approval of a bitcoin etf in the u.s. and potential bitcoin having this spring that people say could cat lyse a price

rally. here to discuss, cnbc report mackenzie and tenaya. welcome to both of you. mackenzie, is it just the first -- why so many fund flows and we're off to the races, what are you hearing? >> a lot has to do with that there's optimism some of these spot bitcoin etf applications will be approved. the s.e.c. has a deadline of january 21 to approve or disapprove their spot application. there's optimism it will be a green light this time. some of the biggest names throwing their hat in the ring. blackrock. a lot of that has to do with the fact that they think institutional money will flood into the space once we see some approvals. >> they really do face near-term deadlines here for us to know one way or another. what would you add? >> i would add the geopolitical tension in the red sea. bitcoin has been in a down trend for the last three weeks.

and ended december on a low note, but that uptrend is still kind of in tact. and remember, so a lot of this rally is about the potential of bitcoin etf. remember that before the etf narrative came into play in june of last year. it was the u.s. regional banking crisis in here in the u.s. that was the big catalyst from march 5th to april 30th. we were really seeing bitcoin rise from the ashes at the beginning of last year. that was its first 30% spike. >> two questions, mackenzie, one is are there bitcoin etfs in other countries around the world? what do they own? do they actually own bitcoin? do they own some futures? what do they own? >> in canada we have a spot bitcoin etn. one of the reasons that people think this is going to be a sell the news event because the flows with that etf haven't been as anti anticipated. that's one of the biggest

narratives we have seen this huge price run-up going into this event. think back to december 2017, there was a lot of optimism around a futures bitcoin etf. that ended up being a negative catalyst for the space. even bernstein that deems a spot bitcoin etf the greatest financial pipeline built between traditional financial markets and the crypto ecosystem. thinks there would be -- the market would take a pause once these spotty etfs are approved if people wait to see if they build momentum. >> spot etf, they are going to own bitcoin, not futures. >> that's what's so different about this. it would mean people don't have to go to an exchange to custody bitcoin. instead, black rock fidelity work with coin base and then you have very familiar product that you can buy into the space with. that's what people believe it will be a game changer. >> what does this having -- it sounds like the rapture in the bible. what is it? >> it's a little in the weeds. i'm not going to go too far down, but this is a technical

event that happens about every four years. this is built into the code of bitcoin. it basically cuts the reward that the minors get in half. and that is all designed to create a sort of scarcity effect on the supply. so i think that that supply and demand dynamic -- >> create fewer bitcoin? >> yeah. i think that's something you're really going to see in play this year. we have all of these big catalysts, the etf. >> i don't know who they are. >> you wonder about the minors who had this big run-up and face the having of their rewards. >> ironically seeing the huge price run up in marathon stocks. this cutting of issuance makes the space far more competitive. one other point i'll make. typically we see a run-up in price every four years pegged to this market-making event known as the having. last time around, the price of bitcoin spiked more than 560%. you have these two major events for the crypto ecosystem that are poised to potentially help

bring that price back up. >> well, may your having be joyous. thank you both. appreciate it weren't thanks, guys. further ahead, if at first you don't succeed, tax and tax again. tax revenue declining in 40 states in 2023. we have seen lots of headlines surrounding wealthy americans bailing from areas like new york, new jersey and california to avoid those taxes, going to tennessee or florida or texas. but despite that, some of those states are doubling down. we will explain when "power lunch" returns. trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. get an expanding library filled with new online videos, webcasts, articles, courses, and more - all crafted just for traders. and with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning.

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welcome back, everybody. lots of moves in the treasury market today. and rick santelli is tracking all that action for us. hey, rick. >> hi, tyler. happy new year. yes, the first day of trading we have seen some pretty big moves. and that isn't actually unusual. if you consider at the end of last year, there was a lot of big trends right towards the end of the year. dropping interest rates, a lot of euphoria about the fed dropping rates dramatically in 2024, the accompanying equity rally and, of course, the damage done to the dollar. well, everything seems to have had some reversal on the first

day. as you look at an intraday, yields are higher. if you go back to last wednesday, that was the lowest intraday trade, a bit above 3.75, 3.78% exact of a 10 year was the lowest intraday level since the 499 high yield close for this move. and if you consider that is crazy as it sounds, we settle unchange on the year at 388 for 10s, it's very important to pay close attention to the failure to trade under 3.75 unchanged on the year and this bit of a pop. now, when you look at the dollar index, it should be no surprise it settled down on the year to have a bit of a pop. and even at these current levels, 102 and change, we're still down a couple cents from where we closed 2022. it's going to be a tough year for the dollar. even if other economies in europe are in or close to recession, the notion of the fed on an aggressive easing campaign

is going to be a difficult area for the dollar index to hold until we get more information about midway through the second or third quarter of 2024. kelly, back to you. >> thank you, rick. rick santelli. let's get over to con tes contessa brewer for a news report. an adviser to prime minister benjamin netanyahu told msnbc's andrea mitchell this afternoon whoever did it made a surgical hit on hamas rather than attack on lebanon. a judge ordered a former kentucky court clerk who refused to issue marriage licenses to same sex couples in 2015 to pay more than a quarter million dollars in court and attorney's fees. the 260$260,000 rule in additioo $100,000 damaging kim davis owes the couple who sued her. davis, who was jailed for five days over her refusal, claimed her religious beliefs prevented

her from issuing the licenses. france is sending a team of experts to japan to assist with the investigation into a deadly accident at tokyo's haneda airport. the jet burst into flames. this video is unbelievable. it collided with a japanese coast guard aircraft, killing five people on board the smaller plane. unreal. kelly, i'll send it back to you. >> and everyone was safe, right? they were all able to get off. >> not on the smaller plane. on the smaller plane five people were killed. but on the flaming jet -- it's unbelievable that anyone can survive that. >> contessa, thank you. coming up, the view from the c-suite. the conference board releasing its executive outlook for 2024, including the biggest challenges facing corporations across america right now. we will break down that list when "power lunch" returns.

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♪ welcome back. a slate of new ceos starting

their jobs today. companies from morgan stanley to costco getting new faces at the helm to begin the new year. and it might not be a particularly easy one. amid rising geopolitical tensions and the head of a potential election, concern about political unrest sits near the top of ceo's concerns for 2024. starbucks first year ceo has already faced down boycotts over unionization efforts and the israel-hamas war over the past few weeks. what can these new leaders expect for 2024 and how can they navigate it? joining us is dean crutchfield. and steve oddland, president and ceo of the conference board. welcome, gentlemen, to both of you. steve, let me start with you. as you speak to and poll ceos across the country, what are they most worried about in 2024? and is it geopolitical tension or the war in the middle east or ukraine or something completely

different? >> yeah, it's all of the above, tyler. and remember, a year ago we had over 90% of ceos telling the conference board that they expected a recession within the year. that didn't happen. but now they're worried about a slow down. what that means for the health and the growth of their company. inflation and higher labor costs are the remnants of what's happened over the last several years. and they're really wrestling with that because there's still a labor shortage, a very unique situation. the global instability that you mentioned on top of it, ukraine, the middle east and now even china and the taiwan situation because of huge implications for chips and huge implications for supply chain are weighing on ceos as well. and when we ask ceos less than 30% say that their company is ready, either for a slow down or to deal with the aftereffects of inflation. so the things that they are focussed on is growth again. it's the thing that they think

that they've got to grow their way out of it, they can't simply cut costs this time. and so new products and markets, inno innovation, technology including all the impact of ai and finally trying to get more out of their work force through upscaling and through retraining. so those are the focussed areas for ceos. >> so they've gotten over the idea of a full-blown recession for 2024, but they do see a possible, what, slow down, is that what is on the horizon for them? >> yeah. you still have about a third of c ceo's saying there will be a short mild recession. majorities ceos are saying it will be slower. either way, whether it goes negative or slower, they have to do something different, tyler. this is where they have to focus on growth again. >> dean, that's an interesting point. i don't know if you got growth strategies for them or if, you know, in the meantime there's also some ways they need to think about communicating with employees, getting off to the

right start there. >> yes, absolutely. war is the locomotive of industry but for brands it's often a train wreck. we have wars across three fronts the holy trinity of brands that should never be crossed, relr rel religion, sex and politics. we have all three. to steve's point, the 30% of ceos are saying they're not planning for a slow down. well, are they planning for crisis? and that's the critical need here. >> dean, can i just ask you about that, those three areas that you said companies should stay away from. we have seen a lot of discussion in kind of the political realm in recent years. do you think that we should expect less of that going forward now? >> i think you should try to be as little as possible kind of veer into those fields because they are dangerous fields to be in. so, what is the stand of the brand? i think that's the important thing here is that we've got

major companies that spent millions of dollars on perfecting their brands, but that's the issue. they're packed for perfect but not packed for bad. what we're confronting is, one, steve's point of potential slow downs in the market but also rampage of issues of very socially-sensitive issues affecting millions of consumers in terms of what's on their minds eye right now. so it's all about pre-planning and taking a preemptive position on it. and the beautiful thing here, although bad for anheuser-busch, is that a lot of companies have been given a reduced learning curve based on that debacle with mulvaney and bud light. i'm hoping that many companies sat together in offices with curly sandwiches and discussed their crisis management for those three areas. religion, sex and politics that are affecting them right across the board. >> so, steve, why don't you pick up on what dean provocatively talks about there, that is it sort of veers our conversation away from what maybe ceos are focussed on which is growth and inflation and rising labor costs and so on and so forth, but

increasingly ceos and companies seem to be drawn into topics of public controversy. and it could be starbucks reacting to statements by its union having to do with hamas and the palestinians or it could be disney getting pulled into controversies in the state of florida. you've been a ceo. where and when in your experience, in your practice, does it make sense for ceos and companies to take a stand on that unholy trinity of things that dean mentioned, sex, politics and i think the third was war. or religion. >> yeah. this is a really important area because you have ceos and boards facing this whole esg area, all of the dei impacts. you have this call for ceos to comment on every social issues

that comes up to try to deal with all of these political issues. and remember, we're in an election year. it's only going to get worse between now and the end of the year with ceos being called upon to take sides. and everybody is happy when they do it and they come down on the side that they're on. but remember, we're a sharply-divided country, sharply-divided world and you have customers, employees, owners, community, many constituencies here and you have to balance what you say. so boards and ceos need to establish a framework by which they make a decision whether to say anything externally, say anything internally, what are -- how are they going to make that judgment, how important is it to their core business. but they cannot just simply go out and comment on everything or take political sides based on a ceos whim. >> very interesting. i forget who it was, but i think it was michael jordan when he was called upon to make some comment on something he said famously, hey, republicans buy nikes too. it shows you that the

sensitivity that has to be brought to some of these issues and some of these issues are far, far, far more consequential than whether somebody buys a pair of nigh kees or not. dean crutchfield, thank you. steve oddland, happy new year. appreciate you being with us. still ahead, new year, new tax bill. some state lawmakers are proposing new taxes on income and wealth amid declining revenues. we'll reveal where that's happening and explore what it could mean for higher earners when "power lunch" comes back. we all work differently now. so cdw helped us deploy mac, supercharged by apple silicon. ♪♪ built-in security protects me from malware and forgotten passwords. i've got enough battery life to get me halfway around the globe. and lower overall costs leave more money in our budget.

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welcome back. with a new year upon us, tax season and changing tax rules are in focus. 2023 actually saw tax revenues decline in 40 states. the biggest losers, new york and california. so lawmakers are now considering new wealth taxes. let's get out to robert frank with more. robert? >> the drop in ipos and stock sales last year adding to the

fiscal crisis that's emerging in high-tech states. as you mentioned, tax revenue declined in 40 states with the highest tax states hit hardest. california saw a 25% drop in revenue. that's comparable to the financial crisis in the dot com bust. the state now faces a 68 billion dollar deficit. that is the largest in california history. new york's tax revenue expected to drop by $10 billion next year. that could lead to a $4 billion deficit. 10 billion the year after that. both states now battling demands to cut spending or raise taxes. california legislatures proposing a wealth tax. 1% total wealth over $50 million and 1.5% on billionaires. new york looking to tax billionaires on unrealized capital gains tax higher those of their higher incomes making more than $450,000 a year. now, already the top 1% pay more

than 40% of the income taxes in both states and some warn of further wealth flight if tax increases go even further. california lost 27,000 tax filers who made over $200,000 back in 2020 and 2021. meanwhile florida and texas, which of course have no income taxes have seen population gains. so tyler, there's going to be a lot of pressure as these deficits especially in new york with the migration crisis, california as we see those capital gains dry up, whether to cut spending. they just can't cut that much or how to raise taxes on the wealthy. >> don't most states -- i assume california and new york among them have balance budget requirements? >> they absolutely do. and that's where the pressure shows up at the state level and why we're not going to see much tax action on the federal level because there's not political will or the unity to do that, but the states, to your point, they have to.

and in progressive states like california and new york, there's not momentum by the legislature to cut spending as much as they need to. because of that balanced budget requirement they're going to have to raise taxes somehow. and taking the willy sutna approach you go where the money is with the wealthy. >> i'm intrigued by the idea of wealth taxes and how they would work or whether, indeed, they are workable at all. but i wonder, talk me through it a little bit. let's say i have an unrealized gain of $1 million on a stock and i would be taxed under one of these plans on that unrealized gain. and then the next year the market tanks and my unrealized gain goes on that particular stock, goes from $1 million to $100,000. what's the equity in that? in other words, now are you going to give me back some of that tax that i paid you because my asset is worth a tenth of what it was a year before?

>> you essentially get a loss carried forever. it's where you get investment losses to offset gains in future years. you would be taxed on the million dollar gain one year, it fell the next year, you would get a credit that could roll forward for several years. but that's in effect to your point lending the government money on unrealized gain. and so that's one of the challenges. the other big challenge that the states face if they do this, the reason that wealth taxes never worked in europe, people moved from one country to another. now if you do it on a federal level, you then have to renounce your u.s. citizenship, pay a huge capital gains tax in order to do that. at a state level, you just move one state over in the case of california to nevada or california, texas or new york, florida and you get rid of a wealth tax. so at a state level i just think it makes zero sense because of mobility, especially the wealthier you are, the easier it is to move. >> robert, thanks very much.

we'll be keeping an eye on that throughout 2024. coming up, taking a bite out of apple. shares of the tech titan slipping after a downgrade to under weight at barclays. is that a cue for investors to trim their position or an entry point to buy more? we'll ask our trader in three-stock lunch after a quick break. 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.

time for today's three stock lunch. up first, when, apple was downgraded by barclays with the iphone demand falling, sending shares lower. apple, down 4% today. >> tyler, thank you for having me, first of all, it is a privilege to be with you. apple is a cell in our book, we were on your show about two months ago where to sell and

trim and apple was one of those names that we were cutting. the stock is not cheap at all. in fact, it is very overvalued in our book, and the estimate, if they hit it, it is only going to be about a 7% earnings growth. i think what is most concerning is, they have considerably shrunk with incredible share buybacks and if you add that back in, the growth is even more lackluster. the other challenges they have leveraged their balance sheet, with deck equity at 2 to 1. the selloff today, on the deal of the downgrade, if someone has the name and is looking to lighten up, i would be a seller of apple. >> we go from apple to tesla. those 485,000 deliveries, bringing the total over just

1.8 million. would you be a buyer here? >> i am, i would be, i continue to do so. this is a little difficult to talk about, right after a talk about valuation. this stock is also not cheap, selling 70 times forward earnings. however, they have no debt. and i think now, what is going to happen, at some point, we see the chinese economy turning around. and i believe that is going to be a big boost for tesla and their sales. and that would translate into a pretty significant boost in eps. i bring viewers' attention to technical, which we do not talk about very much. the stock has been consolidating for the last two years and looks right for a potential breakout. you can basically look at the basic close of around 194 as a stop in a pretty significant

risk reward for the upside. this could head to new highs, sometime next year. >> moderna, outperforming, however, posting a 40% decline in 2023 which may make it a buying card. >> it is not for me, number one, this is a little bit out of my wheelhouse but just looking under the hood i have trouble buying a company that is not profitable. they have a nice cash position. but i think that today's move on the upgrade at oppenheimer, it goes towards people looking for beaten up stocks where they might see some rotation. i would be very careful with that strategy. you are getting a nice bump today. but maybe look to lighten up. it is not really a name where we would see, soft

profitability, and, you know, some further fundamental improvement in this name going forward. >> thank you for your clear opinions. quint tatro, happy new year. >> happy new year, thank you. >> so many more headlines, so little time. we have closing time up next. >> catch the market zone today and every day on eátrade, sponsored by morgan stanley. you can stay on top of the market from wherever you are. e*trade from morgan stanley power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley

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two minutes left, everybody. several more stories you need to know about it. starting with some news on capital x, fidelity has marked down its stake in the platform formerly known as twitter yet again. as of november 30, shares are down from $20 million, back in october, 2022, when elon musk first took the company private. mr. beast, the outube star, just rejected an offer to post videos on x, because it would not be lucrative enough. and i will mention the resignation showing the power of the platform. the power still remains, but the valuation is not there. >> this is obviously private stock. it has to have a liquidity, sort of a premium involved. i mean, commonly buyers of

nonprivate stock out there, i mean obviously. all right. streamers are struggling to hang on to customers, according to analytics provider antenna. about one-quarter of the u.s. streaming providers have canceled services. that is up from 50% -- 15% just two years ago. people are looking at their bills, and they are saying, do i need paramount plus, or, choose your streamer. >> i think it will be the catalyst for more media consolidation. video is circulating showing david tepper, the carolina panthers owner, throwing a drink during the road loss by the panthers on sunday, ed nfl spokesperson said we are aware of the video and have no comment at this time. according to cbssports, he could face a suspension role -- substantial fine. the panthers

have the worst record in the nfl, 2-14. >> those two college football's -- football games were so good yesterday, no matter who you were rooting for. >> they say that high school is the new college. closing bell starts right now. thank you, i am scott walker, here at the stock exchange, this hour begins with selling, a sign of things to come in this market. we will ask about experts. the scorecard, with 15 minutes to go, nasdaq, the big decline, with tech taking a big tumble. a downgrade for apple sends shares sliding meta, getting back some of those outsize gains. deep, elsewhere,