♪ good afternoon, everyone. welcome to "power lunch." alongside kelly evans, i'm tyler mathison. major mergers in the drug industry. is this a sign of good financial health or a sign of problems with their pipelines? plus, more data coming out on shein. the fast fashion company prepares for a u.s. ipo, we'll break down their revenue numbers and how they compare with some of the big u.s. retailers. first a check on the market. we're off the lows, but we're still down, except for the nasdaq. the dow is down a fourth of a percent, s&p down 3 points the nasdaq is up about 30. we mentioned healthcare deals. it's not just in the pharmaceutical space. a tech deal potentially as well.

june ter soaring on word hue let packard enterprises is close to buying the company for $13 billion. up 22%. hpe down 18%. the market, stocks continue to struggle to start the new year. our next guest is looking for opportunities in areas sensitive to positive economic surprises. let's bring in rich bernstein, chief investment. happy new year. welcome. glad to have you with us. >> hi, tyler. happy new year. >> where do you find those sectors, regions, styles that are more sensitive to economic tidbits. what are they? >> right. so tyler, there's kind of an old rule of thumb, which sounds very obvious but people forget it, is that the cycle by definition is determined by cyclicals. and so, when profitability starts revving up, that's because of the businesses of cyclical companies. when profitability is slowing down, that's also because of the profitability of cyclical companies, or lack thereof in that case.

stable companies are just too stable to cause a cycle. so, it looks to us as though profit growth is accelerating. we think profit growth could hit 10 so 15% during 2024. if that's the case, minus 10 to 15% to plus 10 to 15 plrs that caused for exposure. small caps, emerging markets. >> interesting. and within those areas, if you talk about materials, industrials, industrials can be broad there. what kind -- name me some names that would fit into that category. >> so i think in the industrial category, two different ways to look at this. the biggest group in industrials is of course aerospace defense. and the aerospace side obviously is having some problems. i don't want to name individual companies but we know the problems that can go on on the aerospace side. but the defense side unfortunately looks like it's going to be a growth industry.

globalization is contracting, one of the unfortunate sides of contracting globalization is you get more wars. and so the defense contractors actually look like they could be growth stocks here going guard. very unfortunate but a reality, so to speak. the other side of the industrial sector i think is much more of a more interesting, longer-term play. that would be anything related to the reindustrialization of america. tyler, as everybody knows, the united states has a massive trade deficit. that comes now at a point in time where globalization is starting to contract. that's a really bad combination. we think capitalism will be smart enough and strong enough to reallocate capital to where it's needed in the economy. so we don't think the long-term growth stories are about ai or wiener dogs in the meta verse or something sexy like that we think it's in the reindustrialization of america. >> richard, i'll ask you about the tone so far this year. first the santa claus rally failed and now the first five

days indicator is negative. echos of 2022. >> i don't know if it's 2022, kelly or replay of 2020 into 2021 where we had a very misbalanced bubble-like market where we had a series of stocks back in 2000 it was all about tmt, tech, media and telecom. today it's about the mag seven. that does recalibrate and the other side of the seesaw does very well. i think one wants to watch very carefully about the speculative nature of the mag seven versus the fundamental story in the rest of the marketplace. >> you raise something that's very interesting this, rich. that is the market needs a narrative. the narrative last year was the magnificent seven. the narrative a couple years ago, as you said, was the tmt, tnt would be an explosive rally.

>> things blow up, right. >> so, the market needs a narrative. i wonder in light of the fact that we're seeing a lot of m & a in pharmaceuticals, a sector that did not have a particularly good year last year with a couple of notable exceptions, whether you think that could be part of a narrative in 2024, that sector? >> tyler, i think that's a very interesting question. the reason i bring that up is in my seesaw analogy, one side of the seesaw is obviously very, very expensive. that would be the mag seven, very expensive relative to their own history and relative to their peers according to growth they're very expensive. the other side of that seesaw i would argue is ridiculously cheap. in some cases really, really ridiculously cheap. some people argued m & a is dead, i would argue we may be in the infancy of an m & a cycle

because the other side of the seesaw is so remarkably cheap. >> rich bernstein, happy new year. glad you're with us. see you a lot this year, i hope. >> great to see you. now to shares of boeing slightly lower as the company investigates the issue which caused a door plug to blow out mid flight on a 737 max 9. let's bring in phil lebeau now for more on those loose bolts showing up at other airlines, phil. >> we don't know how many loose bolts were found between alaska and united. and the terminology has been a little bit different between the two airlines. when we get a better sense of that, we may have a better sense of what the faa is going to do. that's one of the developments that we're going to be watching for today. first of all, the faa has yet to weigh in on final inspections for the grounded 737 max 9s. once that happens, then alaska and united will be able to do those inspections. but they're in a waiting mode right now. and the inspections, they're not going to be 4 to 8 hours. i was talking the one person familiar with the process who said, look, this could be 10,

11, 12 hours. it will take a little bit longer. again, the loose parts were found both at alaska and at american. meanwhile, in renton, washington, in one hour, at the plant where they build the 737 max, they will be holding an employee town hal. this will be led by boeing leaders. they'll be talking with their employees. basically reiterating, safety culture, a culture of accountability, quality control, all of the things that we have heard from dave calhoun and his top executives for some time. but clearly that needs to be driven home once again, whether or not new initiatives are announced that remains to be seen. as you take a look at shares of boeing, all comes on a day when they actually improved their monthly deliveries. in december, they delivered 67 planes, improvement compared to november and the fourth quarter year of year was better. deliveries for all of 2023, 528 planes. their delivery targets for all of 2023, they hit them.

and that's important because there was some speculation a few weeks ago they might fall short of their delivery target for 737 maxs, but they hit those as well as the targets in terms of their guidance for the dreamliner as well. guys? >> couple quick questions. the loose parts that are referred to, were those all loose parts associated with that false door or whatever it is? i heard someone call it a door, others say it's not really a plug. all the loose parts associated with that? or were they found elsewhere in the planes? >> no, they're associated with that. and what happened is both alaska and united were pulling off the panels, getting prepared for what they expect in terms of the inspection process from faa. remember, yesterday the faa said this is the process. we've signed off on it. you're not quite ready to go, but this is going to be the process. now there's been some back and forth between the faa and boeing. both alaska and united, they're getting their planes ready.

look, they want to put them back into service as quickly as possible. they were getting them ready for the inspection process that's when they found the loose parts. >> leads me to question number two, before the loose parts news broke yesterday afternoon, i believe you said it wouldn't be shocking to see some of these planes going back into service, maybe within the week. do you still feel that way? >> sure. >> really? >> i don't know if i feel that way. you know, basically i'm telling you what i'm hearing back from people within the faa as well as within the airlines. i think there is a bit more caution now. any time you have these planes coming out and these reports of loose parts, that's going to make everybody step back a little bit. look, the pressure is on the faa in all of this, tyler. you don't want to say, okay do this process, put them back up in the air and then there's an incident. you want to be as judicious as possible. and i think the loose parts, that revelation coming out, has probably made regulators and boeing as well -- >> sure. >> say okay, are we absolutely sure this is the process?

>> yeah, that's ight. i'm sure the airlines, too. they have a shared interest in making sure that the planes they're flying are absolutely as safe as they could possibly be. phil lebeau, thank you for following this for us. we appreciate it. >> you bet. we'll do a three-stock lunch here in the top half of the program today because of the airline news. here with our trades is a partner with wall street alliance group, first up, welcome, adeal. we're glad to have you with us. >> great to be with you. >> fantastic. let's talk about boeing the company of course still dealing with those 737 9 max jets. the shares are flat today. down about 10% on the week. the trade here, adeal? >> so, for us this would be a sell. because, you know, this is a company every time it seems like they have things back on track, another major catastrophe like this happens and it derails it. so they just finished a very strong year with increased plane

deliveries, and now investors have to deal with this type of a catastrophe again. we just feel that from an investment point of view, there are so many other opportunities available out there that we would simply stay clear of boeing. so for us, it would be a sell. >> okay. let's move on to jetblue then. it's a whole other story today. the ceo announced his plans to step down in february. they're waiting on the judge's ruling on that merger with spirit, of course. they got a downgrade this morning saying shares could go to three. they're just over 5 bucks right now. what would you do? >> i would sell, kelly, because you know, i sympathize with the ceo. it was a very tough job. like when you're in the airline industry, it's razor-thin margins, survival of the fittest, right? and you need to have a certain amount of skill in order to do well in that business. and jetblue simply did not have that skill, right? also, they're very domestically focussed. they're not really benefitting

from the increase in international travel like some of the other larger airlines are benefitting from. and because they don't have a brand loyal customer, they're unable to pass along the higher cost in fuel and labor in terms of higher prices to their customers. so, we would say that this is, again, this would be a sell. >> speaking of a stock, a company that does benefit from the strength of international travel, that would be delta airlines, close now to placing a huge wide body order with airbus. those shares up about a percent today. aadil, your trade on delta, we have one that isn't united or alaska which may be one of the strongest things going for it. >> yeah, i agree with you. so the reason why we like delta is for the exact opposite reasons that we don't like jetblue, right? delta has the scale. it's the largest player in that industry. they have a very niche market

focus. so they figured out they're going to cater to the higher income earners so this gives them the ability to charge premium pricing which the customers are willing to pay for the luxury. it also gives them the ability to be able to pass on the higher costs because their customers tend to be more brand loyal. and in terms of international travel, they've benefitted tremendously from it. especially traveling from america to europe. which as a family took two vacations to europe last year and the airports were jammed pack. and delta is benefitting from this trend. >> so, are you saying -- i'm curious on this. if i were to take a flight from new york to rome, on delta, if they go there, delta would have a higher price if i were to do that same flight on another american airline? >> so, we feel that, you know, delta -- when people are looking for flights, we felt that delta was very expensive. and a lot of times, you know, customers are willing to pay for the luxury because their

customers do tend to be the higher income earners. yes, a lot of times the prices would be higher. they also have the largest frequent flier program of the u.s. network based carriers, which is also very high margin business for the company. so they have different sources of revenue, that's why we're con str constructive on this. >> delta has the reputation of being able to avoid some of the operational d al difficulties t have affected other airlines. aadil, thank you. we'll have you back. >> thank you. coming up on "power lunch," rise and shein. a new report from cnbc.com shows revenue for the chinese online retailer is a lot more than anyone expected. could be good news for the ipo. we'll get you the details. consolidation ramping up in the pharma space. ten largest biotech deals last year, six came in the fourth quarter. the top 25 companies in the space have more than a trillion in cash to make deals this year.

a trillion dollars. we'll discuss where the next big merger could come from when "power lunch" returns. dad, we got this. we got this. we got this. we got this. life is for living. we got this. let's partner for all of it. edward jones

♪ ♪ let's partner for all of it. ♪ ♪ ♪ ♪ welcome back to "power lunch." fast fashion giant shein highly anticipated ipo is expected to take place at some point this year, but little is known about how much revenue the retailer brings in right now. cnbc reports shein sales could actually be a lot more than $30

billion annually. that's according to a key partner. for more, let's bring in the reporter behind the story, our friend, cnbc.com reporter and cnbc contributor for some perspective here. welcome to both of you. gabrielle, we'll start with you. what have you learned? >> so, there's very little known about how much shein makes, how profitable they are. they're a private company. they don't have to disclose anything. you know what we know from some reports that came out is that they did 23 billion in revenue in 2022 and they set out to raise that number by 40%. so now the market kind of thinks that they're making about 30 billion a year. what we heard yesterday at the icr conference in orlando from one of shein's key partners from authentic brands group they partnered with last year, that number is actually a lot more than 30 billion. of course he didn't disclose how much that number is. but you know, authentic brands is in a position to know. last year they started a

partnership with shein where they started selling coat brand of clothing line with forever 21 which authentic owned. they had to open their books. these people know how much they're making. it's a lot more than everyone thinks. >> if that's the case, we're putting them on par with the likes of zara and h&m, is that right? >> even more so, even greater than that. right now it's estimated they have 20% of the fast fashion, global fast fashion market share. that's substantial being that they were projected to just be selling about $4 billion in 2019. so they've had exponential growth since the pandemic. >> sandra, what explains their success? >> there's a few things. number one, they use teen influencers and user generated content which are the teen consumers themselves. it's not just gen z, but they were definitely the ones. if you look at just tiktok and how many people are talking about shein, it's almost 15

billion views on shein halls from the holiday time period. so that's one. the second thing is they really figured out the supply chain. they have an agile supply chain that is not really focussed on what's happening on the runway and waiting for trend research, but really focussing on having a lot of designers that are outsourced and those designers are constantly pumping up a lot of product about 1.5 million styles in an annual basis. that's about 37 times zara and 65 times more than h&m. >> that said, there was focus i think recently in "the wall street journal," it's not as lucrative for the suppliers as it is for the parent company. at what point do you think suppliers might push back? >> this is a big issue right now for shein. in order for them to remain competitive and continue with this crazy growth they posted is they need to keep those suppliers loyal because that's really their secret weapon. it's called like the ultra fast fashion manufacturer and

supplier. these aren't the typical fast fashion suppliers. these manufacturers that are able to turn around styles within days if not just a week or two. and that's also a fresh design as well. so shein is able to identify designs that are getting popular on tiktok, online. they send those designs over to the manufacturers and they turn it around really quickly. but there's a lot of competition for those suppliers as well. you have temu. it's competing for those very same suppliers. and temu recently sued shein in federal court in the u.s. accusing them of mafia style tactics and signing loyalty oaths and things like that, requiring these suppliers to pledge their loyalty to shein and pledge that they're not going to work with any other competitors. so, you know -- but temu is willing to offer a higher price, other new entrants to the market are willing to offer a higher price, shein, might lose some of that loyalty, suppliers.

that will be a big focus for them and what kind of impact will that have on their margins. there's so much we don't know about this company. >> what about the quality of these garments? is it not just fast fashion but disposable fashion? how good is it? how disposable is it? and does that disposability then cause there to be criticisms on environmental grounds? >> well, absolutely. they have a cohort of young shoppers that want immediate satisfaction. regardless of the environmental impact. i think because of the fact that the price points are so low you can get a dress for $8, a t shirt for $4, it really already holds the bar to very low quality standard. you're not expecting a lot when you're paying $4 for a sweatshirt. so that's definitely one thing. the other part is they're definitely having some challenges as it relates to, you know, copyright infringement, some potential labor issues and sustainability, landfills, getting a lot more of the

landfill conversation going on around shein. but the customers are still shopping. >> if the items dshs sandra, i'll ask you and then gabriel you can jump in. if the items are that cheap $8 for a dress, $4 for a sweatshirt, the shipping must cost more than the garment? >> you would be surprised that there's actually lower shipping rates from china directly to consumer. they're shipping direct to consumer from their d.c.s in china. and they have three in the u.s. as well now. so even within the states, they're able to ship it and still make margins. so, they're optimizing their supply chains from the fabric standpoint, where 65% of the garments cost comes out of the textiles. they're actually able to optimize that across all of their suppliers, so they're able to get much better margins that way. >> gabbie? >> yeah. and tyler, what i'll add to that is that we all heard about the de minimis exemption. items shipped overseas less than $800 aren't charged import

duties. and of course legislatures will say that's why shein is able to offer such a low price because many of their packages are under $800. they are being shipped directly from their manufacturers. shein, of course denies this and said it's their supply chain allowing them to offer this great price. but there's also a misconception here about quality. i've spent the last couple months reporting on shein and we talked about this before but i've been talking to shein's customers. these aren't people coming in and trying out $4 dress or $4 shirt once or twice. they're buying maybe a $10 dress, a $10 shirt and they're coming back because they're telling me over and over again that the quality is surprisingly good. price does not define quality. and because of shein's supply chain, the way they're able to do things i'm surprised to hear it but these customers are telling me that they're over and over again surprised at the quality. that's what's keeping them coming back which is so important. you're not just getting these customers once, two times, three times, four times and that's not even talking about the algorithms and the ways they

bring those shoppers in even when they're not looking to shop. >> thank you very much both of you. we appreciate the conversation. further ahead, plurs-based astro bottics lunar mission, major malfunction shortly after launch. problems abounding. this would have been the first u.s. moon landing in more than 50 years. it ain't happening. we'll be right back. we planned well for retirement, but i wish we had more cash. you think those two

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welcome back to "power lunch." let's get a check on the bond market right now as yields are flat today. seems like everyone is looking ahead to that big cpi report that will come out day after tomorrow. rick santelli in chicago. happy new year, rick. >> happy new year, tyler, indeed. cpi or ppi the day afterwards, inflation data will be important. but between then and now, supply is the issue. we had a 3-year note auction today, 52 billion of them looking at the intra-day of 3s. 1:00 p.m. eastern, we had that drop that established the low yield of the session. it didn't last long. as a matter of fact, you look at the extreme on the yield curve, one year short maturity like 2

year, you can see on the right side how much it's been in a tight range. matter of fact, every maturity today's range is inside yesterday's range. now, if you go to the other extreme on the longer data, look at 30 day for one month, its yields are a bit more to the upside. that's something to pay attention to. we see that 10-year note yields are on pace for the fourth consecutive close over 4%. and we see the 2s, 10s spread has been trading quite a bit in 2024, under 40 basis points. we also see the spread with overseas boons starting to widen a bit as longer data treasury yields seem to have a little more horsepower towards the upside. with regard to supply, 10-year tomorrow 37 billion followed by 21 billion 30s. options are everything to the markets right now we'll continue to monitor. kelly, tyler, back to you. >> thank you, rick. rick santelli. to courtney reagan now for the cnbc news update.

courtney? ♪ i'm going to have to send it back to you guys right now. >> no problem. court, we'll come back to you as soon as they tweak the audio. we appreciate it. courtney reagan standing by in headquarters. after the break, everyone talks about tech dominating the nasdaq. bio tech delivering massive gains. pretty massive. december marked the ibb best month since the pandemic since april 2020. more ahead in that sector in "power lunch." that first time you take a step back. i made that. with your very own online store. i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first. godaddy.

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♪ welcome back to "power lunch." i'm courtney reagan with your cnbc news update. we'll try this again. secretary of state antony blinken once again in israel urging the country's leaders to avoid harming civilians as israel wages war with hamas. >> we want this war to end as soon as possible. there's been far too much loss of life, far too much suffering. >> blinken also made clear the u.s. will reject any proposals to settle palestinians outside of gaza.

the first attempted moon landing mission in decades has officially been called off. astro biotics says because of a propellant leak there's no longer any chance of a lunar soft landing. the spacecraft is expected to run out of propellant in 40 hours. much more in a few minutes with space reporter michael sheets. fired cnn host don lemon is launching a new internet show on x, the platform formally known as twitter. lemon will host three 30-minute episodes covering politics, sports and entertainment comes after tucker carlson, pulled from fox's air on the same day lemon was fired, started his own program on x. kelly, back over to you. >> so raft of launches as they look to expand their media offerings. courtney, thank you very much. courtney reagan. >> soft landing for the economy but not for that spacecraft. deals meantime in the pharma space heating up to start the new year. continuing the trend that started late last month. pfizer recently completed the

acquisition in a $43 billion deal and johnson & johnson i know i pronounced that right, johnson & johnson, merck striking significant deels. bristol myers ceo talked about the value of m & a at the jp morgan health care conference yesterday with jim cramer. >> it's an exciting time to be taking over bristol myers squib. we're writing the next chapter of this company. we have a lot of real strength here. we have an incredible pipeline of recently launched or launching products. i don't think our pipeline has been richer than it's ever been and real financial strength that enabled us to go and bring innovation into the company from outside and that's what we've done with these most recent deals. >> all right. let's get reaction from evan seagerman, bio tech analyst at bmo. welcome, evan. we're glad to have you with us. what do you think these deals are cigsignal kaling about the g business broadly and the bio

tech drug business more specifically? >> feels like a breath in san francisco. the tone is noticeably lighter. everyone seems to be happy. really helps when you start off the jp morgan healthcare conference with a few deals. also some deals announced last month and the big closing of the pfizer cgen transaction. it's really good for the sector because it's not just healthy for bio -- for the big bio pharma names and small that shows there's a path to an exit. >> why are these -- i see why the deals are sort of the tonic that the sector needed. but why are companies like pfizer, bristol myers and j&j down so much over the past year? pfizer down 39%. i suppose it has to do with the decline of sales of covid drugs and covid vaccines, but what else could it be? >> there's a lot of nuances here. look at lilly, it's up massively year over year, but something

like pfizer, they were transitions away from covid, trying to reset their revenue base, misaligned expectations cha management was saying and investors thought. now it's a reset. cgen coming in. lot of opportunity there. bristol same thing. they need to replenish that revenue base and some of the new launches weren't doing as well. now they're bringing in new assets hopefully to accelerate that. >> what about with yido connectives. >> we heard they may be taken out by know var disk. i know at the conference know var disk was down playing it. that is the game they could be playing. >> what, evan, would you say are the super cycles happening in the healthcare space right now driving these deals? weight loss to the side. we're talking more about

oncology, what else? >> a lot of oncology, a lot in the subset of oncology, radio oncology. you saw that deal that bristol took out, rays. so these are radio therapeutics to treat cancers. >> what does that mean, radio oncology? >> so, that's a very good question. it's basically taking a drug, adding a radioactive particle to it to target it right to the tumor, to kind of destroy the tumor. high science, high manufacturing, a lot of interest there. i also want to add in inflammation. i believe that the cmo of merck was talking about doing more deals in inflammation. we saw a lot last year. i cover a company that has an oral drug for ibd, data coming next year could also be very interesting and strategic. >> give me a thought on eli lilly and i guess know var disk. >> eli lilly is our top pick in big pharma. we like lilly. we think zepbound will be a

fantastic launch. this is their drug for obesity that was recently approved in november. they're off to the races there. we think there's a lot of enthusiasm around it. we could see deals with reports in "the wall street journal." >> evan, thank you very much. we appreciate your candor and ideas. >> thank you. have a good one. bye now. >> you too, sir. black rock announcing hundreds of job cuts. let's go to leslie picker for some details. >> hey, tyler. this is according to a memo that was sent by larry fink, the ceo of black rock as well as rob, the president of black rock sent around the firm discussing, quote, as we prepare for 2024 and this very exciting but distinctly different landscape, businesses across if firm have developed plans to reallocate resources, these changes will result in about 3% of our colleague's leaving blackrock. that amounts to about 600 people

base on the number of employees that have been disclosed in public filings. in terms of qualifiers as to why they're doing this, they talk in the memo about the industry changing faster than at any time since the founding of blackrock. that's thanks to the work of their i-shares teams, what they describe to be the preferred vehicle for delivering both index and active investment strategies. they talk about growth coming from a wider range of markets around the world. europe, middle east, india and other markets in asia. this is something that people have been paying close attention to. perhaps most profound new technologies are poised to transform the industry and every other industry. a lot of people have been focussed on blackrock as we see the events unfold with regard to the potential spot. bitcoin etf, obviously blackrock potentially a key player there. i'm told in speaking with the person familiar with the matter

that the cuts aren't focussed on a particular team. they were broad based in nature. so there's been a lot out there about the potential for pulling back esg. i'm told that's not the case here. they're going to be very broad based in nature. but once again, the news today that blackrock is laying off or plans to see 3% reduction in its work force representing about 600 jobs. you can see shares there down about half a percentage point at this time, guys. >> leslie, thank you very much. we appreciate it. leslie picker. coming up, more eyes on ai. microsoft's investment in open ai is staring down major anti-trust scrutiny in, yes, the european union. could the impact be felt across the pond back here at home? we'll discuss the potential fallout when "power lunch" returns. ♪

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microsoft's multibillion dollar investment in open ai could now be the subject of a merger probe in the european union. deirdre bosa has more on that for today's techcheck. >> it's only the second week of 2024 and already the anti-trust headlines and developments have been rolling in. the latest eu regulators are looking into deals made between tech giants and generative ai startups. i called out microsoft's investment into open ai. eu anti-trust chief is quoted virtual worlds and generative ai are rapidly developing. it is fundamental that these new markets stay competitive, and nothing stands in the way of businesses growing and providing the best and most innovative products to consumers. now, she also happens to be coming to the bay area this week to meet with our biggest tech companies and ceos including tim cook and sun dar pa chie. the eu has won battles usually

results in fines rather than major changes in business practices. but, there are signs that that may be changing. apple, for example, has offered to let rivals use its tap and go mobile payment system in the face of an eu investigation. and the idea itself, kelly, that europe and washington regulators are looking harder at ai deals, that could suggest more aggressive, more nimble enforcers that could actually have a chance of winning a few battles this year. it's been a very tough slog over the last few years. but a number of them are coming up this year. even if they don't win concessions, the information that is coming out of these lawsuits is important. and could hurt them down the road. >> and in what ways do you think splashes -- or kind of directly affects what they're doing here at home? >> yeah. so the european regulators? well, our enforcers with lina khan and jonathan at the doj have become more aggressive. you have to wonder if that's a response to how effective or aggressive the european regulators have been. but even an example, in the

google lawsuit, we found out that google pays apple some 18, $19 billion to be the default search engine on the iphone. and that's just a huge number that its rivals and smaller companies can go after. even if this information is unveiled here or across the atlantic it can help enforcers in either places and 2024 could potentially be the year where we see some of that start to affect the businesses. >> i'm curious the history of anti-trust is that these cases often move slower than the traffic that's over your right shoulder there. >> yes. >> the bay bridge. >> if i'm google or i'm apple, i might want to slow walk these cases under the thinking that maybe there will be a change in administrations in november or a year from now. >> they -- tyler, you could have used any example. they move so slow and even if you do get anywhere, the appeals process could take years and years. but that's sort of my point is

that even if you don't get sort of any certainty with these cases or any concessions that are won, the information that is revealed through them can be damaging. and they can also amount to a distraction, right? i think back in the '90s when micro soft was under anti-trust scrutiny, it wasn't sort of this one moment where it changed their business practices, but it led to sort of a decade of underperformance because of what those cases did to the company. so you could imagine similar scenario. i'm not sure, but it's a possibility that investors could k consider. >> deirdre, thank you. not quite to the moon and back. astro bottics falling short after a technical malfunction. no soft landing there. we will get the key details on exactly what happened when "power lunch" returns. ♪ ♪ every day, businesses everywhere are asking:

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welcome back the power lines, everybody. pittsburgh based astro robotics

suffered a ailure shortly after the launch. they're calling off the landing. cnbc space reporter michael is here. what happened , michael? >> unfortunately just a few hours after lunch they suffered a failure just checking out how the spacecraft was doing. this is a lander that was not going to be landing until late february. they've been able to get this moving a little bit more. they will not fully recover it. it will start tumbling out of control probably thursday. trying to get as much data as they can off of the spacecraft. the good news is both astrobotic and nasa have upcoming lunar missions. they will have a go at this later this year or even next year. >> this is basically a full write off. it will go tumble in space and run out of power. what was it intending to do? in other words, going to land on the moon and do what for

whom? >> the idea is that it is essentially a cargo transporter delivering 20 different payloads for a variety of government and commercial customers to the surface of the moon. the idea that nasa is trying to create with these missions is low-cost delivery service to the moon. that's kind of in your idea. instead of spending $1 billion on a high-tech superpower lander, they're doing these missions for 100 million, $200 million a pop. then instead of having the single point of failure, there's a bunch of different companies working on missions and the really key part there is that we have three different american companies all with landers that will launch here in the next year. it is shaping up to be a bit of an american private moon race. >> as soon as next month,

different company, same idea? >> different company, same idea. two different machines. they are publicly traded stock. later this year we should see astrobotic go again as well as firefly aerospace, another company near texas. they have theirs scheduled for later this year. an important piece of why we are doing this is not just to deliver cargo because we want to deliver cargo for no reason. there is growing international competition, there is impetus as russia has tried this last year to land on the moon and crashed. india landed successfully for the first time. china has repeat missions going back and there is a japanese base during a second submission on their first one last year. looking for a presence on the moon, a sustainable one, where we are delivering cargo to the

surface. >> who is there to receive the cargo, michael? >> reporter: folks like you and me might be there today to sit down and get the tv delivered from earth, but in the future, it is about building out this infrastructure there. >> thank you very much. we worry about the cargo being left there, it would be vulnerable to theft. >> it could fall. >> it could fall over. any number of things could happen. michael, thank you. >> do yourself a favor and listen to that jeff bezos podcast. interesting about his intentions there. a new king in e wod thrlof auto exports. that and more. power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis, catch the markets today and every day on closing bell sponsored by -- help you find and unlock opportunities in the market. e*trade from morgan stanley. with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten,

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your policy. welcome back. two minutes left, let's run through as many stories as we can hear starting in china taking the crown as the world's biggest auto exporter, taking it from japan. russian sales are a big reason why. according to their passenger car association, they had record exports doubling sales in russia because most automakers left it following the invasion of ukraine. an estimated 5.26 million chinese cars were sold overseas, 1 million more than japan. they were not even a top five player maybe five years ago. >> you can ut an asterisk on it because of the european makers that exited russia.

nevertheless to be the number one exporter of vehicles in the world. >> the impact they've had in the workshop of the world and we are just at the beginning of what their impact as automaker of the world could be. >> outselling tesla with electronics now, as well. met at will when at the content teenagers can see on facebook and instagram. mounting claims that the platforms are addictive and harmful to younger users. the protections of federal out in the coming weeks and are specifically designed to give more age-appropriate experience coming after an attorney general filed a lawsuit against meta-for contributing to teens' mental health problems. i wonder how they will do this. >> of course they will keep tweaking this but it's not going to fundamentally change. the problem is people are spending too much time on their phones and social media broadly speaking. many degrees of problems within that. >> if i had one parenting do

over with my son who is now 18, at the point at which he got a phone i would have made sure that he put that phone away or we took it the minute he walked in. >> in your house at all, home from school. >> given a half hour or something like that. >> we will have our work cut out. you have to come police that. >> i will. i'm going to bring you dinner. >> closing bell starts now. >> and scott walker from the new york stock exchange. the road ahead for big tech. nasdaq outperforming for the second straight day. still seems a bit thin. are they the best bet in this market or not? asking experts over the final stretch. take a look at your scorecard here with 60 minutes and regulation. the nasdaq still hanging on. not that strong. microsoft is okay.