weave beef cattle for the sole purpose of going into the food chain. we use tiktok as a tool to inform people of what we do and why we do it. there's just a plethora of knowledge and of information swapping going on there. tiktok is helping us protect this way of life for future generations. welcome to power lunch everyone, i'm -- i'm tyler mathisen, good to have you with a storm. we are watching the markets today, s&p 500 flat-ish after getting oh so close to 5000 for the first time yesterday. just a hair. >> just a hair, one point. >> one point 99. plus google ceo ramping up this company's a.i. ambitions. we're gonna take a look at some of the companies benefiting from the big tech spend on a.i., and that includes arm

holdings, which is flexing its muscles in a big way today. it's up right now more than 55% in intra date action time. >> we're also watching disney gaining 12% following its results, so much news out of the company for the past few days, streaming deals, taylor swift movie rights, nick sabin joining college game day. wow. we are going to dig into the company's video game aspirations, which is come on top of a potentially huge move by microsoft to disrupt the industry. we begin with the markets, and mike santoli, that big milestone potentially for the s&p 500, obviously pushing against the ceiling, mike. >> we are, tyler. just hesitating a little bit, not too unusual when you get to a big widely watched row number index level. though the 4000 level which is first crossed in 2021 i think really just blasted off from their. but other thousand point thresholds in this index have created a bit of a u overshoot and then come back to test it. right now what's interesting to

me and slightly ironically the reason that we have not crossed above 5000 is because a lot of them make a cap stocks that have gone us to this precipice are not really doing a whole lot today, so the s&p is outperforming, there's so much scrutiny over whether this rally has been too narrow. the average stock is just been going sideways after a great run last year. it hasn't really done anything wrong, just suspect the next pullback will be the big, one we're embracing positive economic news earnings season seems like it's good enough to ratify first quarter forecasts. things seem attacked even if the s&p itself is not far from the point where it's looking stretched in overheated. >> all right, so mike stay right there. with the snp on track for a 6% earnings growth number, our next guest says the fundamental side of the s&p 500 hitting the 5000 mark answers the y earnings are going crazy part. let's bring in mike bailey, he's the director of research with f e b capital partners. mike, this is a scenario where we've been talking so much

about this notion that the markets may or may not be valued fairly based upon the fundamentals, but it sure looks like the fundamentals may actually be justifying the levels that were asked. >> absolutely. i think when you're looking at levels like this, 5000, certainly a big number, -- we mentioned 4000 a minute to go. it's a moment to reflect, we've had a huge move over the past year, and the work is keep running. again across 5000? it could be, there certainly a lot of things to make people reflect as we're getting close to that big level, is it behavior, in some ways it's just a number, that's kind of meaningless, whether it's 49 99 or both doesn't matter. some technicals there for sure, i think we are at some technical levels and some stuff to watch. i would agree with that. earnings, that is the real long term driver, i think that's what we focus on and what long term investors would be more interested in. that brings us back. how fast are earnings gonna grow this year? is it 5%, is a 10%, looks

pretty good. it's more than nothing, that's a good thing. and so as earnings continue to grow, unless we see some big nasty recession down cycle, earnings are gonna grow, stocks are gonna chase those earnings, and we're gonna continue moving, likely we'll be on 5000, i don't know if it's today, as long as earnings grow we're gonna begin moving beyond that at some point probably this year. >> so mike, there are a lot of variables here. but interest rates are probably front and center for this they not only influence valuations but they influence the fundamentals behind how profits can flow through for corporations. just how important is the outlook for the fed to this earnings growth narrative in the markets right now? >> it's critical, for sure. and i think in some ways we saw a very interesting test of this last week. jay powell comes out pours cold water on everyone's hope for mid term rate cuts -- a few days later we were still chugging along nicely, so i think in the short term we may

be beyond interest rates as a downside risk factor for markets, certainly that's going to come back, we're gonna have another fed meeting, and if jay powell does this again if we get another slap on the wrist that could certainly be a problem, but investors are okay we're seeing macro's looking pretty good inflation is coming down, jobs are good, companies are growing earnings. that's enough. investors are comfortable with that even if jim powell dangling the carrot out there for rate cuts, it's a little bit further out. that's okay with markets, and i think we're going to continue to see some upside. >> in the end, mike santoli, i guess i've learned over the years that earnings growth is really the fundamental driver of stock market performance. earnings growth, plus dividend growth, plus speculative -- that you return there. so far the fourth quarter numbers i've been pretty good. can it continue this year? what are you thinking? >> your beat rates are pretty much in the zone of what you've come to expect, it does seem as if we have the makings of it, i keep pointing out we entered

this year at a something like 6% nominal gdp growth pace, the current tracking for the first quarter seems like another above trend, gdp growth quarter released, inflation still two to 3% of minimum, so you had the makings of earnings being good. the other piece of it of course is just as the market performance has been quite top heavy, a lot of the impetus for earnings growth in aggregate has been coming from these massive secularly growing companies so you've been able to rely on that for a while, the rest of the market is struggling with some sales growth margin seem like they're getting reserved, so you have the makings of at least tilting higher in terms of earnings growth, and when that's the case and the fed is at least not tightening and so far rates remain somewhat benign on the yield levels, in the market it seems like usually the market can stays supported, i'll say, at minimum. >> let me ask you about the stock that i think so much has determined the performance of the s&p 500 in the last year,

and that is nvidia. let me turn this to mike bailey, if i might. what if in media, might bailey, disappointment reports on february 22nd. >> that's a big deal, for sure. i would agree with you, it's a mega cap. now magnificent 7, it's really been a big driver, one of the poster child's of a.i.. if you think a.i. works nvidia, that's really concentrating a lot of that value. if there is some disappointment, if you get earnings in a few weeks, that's gonna and earnings season on a really bad note. the question is, is that gonna happen? it seems like some of the tea leaves at this point look fairly favorable, the companies are out there spending a ton of money on these chips, they're still spending a ton of money, they're spending even more. money so i think the trends look pretty good for nvidia but absolutely this as a sub -- a.i. related company -- not in the s&p 500, if it were, they would probably be passed 5000 today. >> true. >> mike daly.

if it's not nvidia, you've got your eyes on there, then what are the investments to make right now with the stock market hovering at this 5000 level. >> i think in some ways you can have your cake and eat it too, you can participate in some of these high growth companies, but if there is any type of correction i think you can head yourself, so google is an interesting company, a lot of growth, not quite the upside of some of the other magnificent 7 over the last few weeks, however it's one of the only tech mega caps that's trading below the market, in terms of valuation. a lot of durable growth there, you're not seeing a boom bust cycle, like in some ways you might be seeing with meta. more durable growth very nice valuation below the market, that's a little bit more comfortable way to play that, theme without really sticking your neck out with something that's perhaps more of a boom bust cycle. >> mike mike, thank you very much. bailey and santoli, we appreciate it. thanks guys. >> bond yields -- strong jobless claims data. rick santelli is with the

traders in chicago, rick i haven't talked to you in a whole hour. >> i know. i'm going through tyler withdrawal. one thing i'm not going through though is beaumont withdrawal. whether you look at two's, tends, the s&p's, yields are up into,'s yields are up in tents, dollar index is up, other than today the s&p down these are all big moves, how many would've guessed that not that many months ago as a matter of fact when you look at what's going on right now with regard to the s&p, the think that we are whisker under 5000 is the high, harkens back to when we are whisker below 5% and we couldn't quite get to it, which tells us psychological levers are huge, and speaking of which let's go talk to a trader. paul? >> eric. >> has it going? >> good to see you. >> let's start right with it. everybody i'm talking to today has one thing on their mind. cpi benchmark revisions tomorrow, and hy? because it demonstrates that

seasonality's are up. there's a lot of data points that aren't telling us exactly the truth about the economy. your thoughts? >> i don't know about the commentary on the accuracy, but i will say that for many weeks we noticed heightened interest and -- and that makes sense, the fed cares about cpi and anything that might impact cpi people are in tune with. >> if you ever seen this much interest in benchmark revisions on the day when the actual data point isn't even coming out? >> no. we have noticed in the past some reaction to this, but i would say it's a bigger story on our radar than usual. >> granted the s&p's are down a little bit, they're up monstrous sly -- these markets are really off to the races. my question to you is, is there anything in this scenario that isn't quite adding up right now? >> i wouldn't say that, there's a big milestone when we broke through 5000. one thing i would point out is,

equities or at the high right now for the year. but the -- is not. there's still some interest in owning options. >> when you say the vic's is not, basically -- >> the vixen is not it is low. >> with the vic being at the lows should be a greenlight for -- when you think is going under the hood of volatility? >> we've been rallying people trying to get ahead of the fact that there is an expectation of some rate cuts, and like we're seeing interest in this number tomorrow because the data is going to end up countering that and if there's less certainty there there is going to be more uncertainty here, and people wanting to move on. >> yesterday we had a -- these long dated auctions of gone very well, and my final thought is many i talked to are very worried about debt deficit, servicing debt, cbo yesterday made many traders are a bit nervous. are any of your clients are more interested in some of those metrics of late, or not? >> we don't have any clients,

but all of that stuff is part of the discussion in part of the analysis, seeing real quickly -- >> so people understand, your group of traders that are all trading together in the house but not necessarily doing customer business? >> that's correct. >> awesome. paul, thank you for joining me today. dawn, shoe, back to you. >> thank you very much, coming up on the show we've seen multiple tech firms announce layoffs recently. but all of that cost cutting does not necessarily mean it will stop spending in general. as a matter of fact some may actually be able to ramp up spending, but on what? i'll give you one guess. plus further ahead, disney investing over 1 million dollars in epic games and microsoft making a potentially massive -- with the xbox. are we witnessing the beginnings of a revolution in the video game space? all that is coming up. [♪♪]

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welcome back to power lunch, everybody. shares have -- unveils gemini, i just re-branding of the company's a.i. assets to better compete against its -- >> there's obviously a lot of competition in the text base. you're gonna have microsoft put products, we compete with them, we are growing our cloud business, so it is a dynamite moments, but the best way to approach it is stay focused on what you can build for your users so that's how i think about it. >> the a.i. arms race has been huge for chip companies such as nvidia and amd, but there are a lot of other companies that stand again money, as money continues pouring into a. and that's where we bring in christina. >> we have seen just over the last two weeks or so an increase in -- capital

expenditure particularly coming from hyper scalers like microsoft, a parent company of google, meta, all of them are promising to spend billions and billions of dollars building out their a.i. infrastructure. you mentioned amd and nvidia, i'm gonna try to not focus on those two names for a moment, because there are other winners now, given to how much money is going into capex. is one estimate -- 180 billion dollars this year alone, half of it coming from those four companies, amazon included, then i just named. that's why you see this massive run up in other chip names, just within the last month or so. arista networks, for example, their earnings are up -- they are part of the gpu connectors. then you have i, know you talked about it on the show in particular, but seep super micro, for example. this is showing you on the screen capex estimates for these big hyper scalers, but super micro that stock is up 150%, and that is considered a server manufacturer.

taiwan semi, they make over the last year -- time once a means pretty flat. just since this year, up 28%. why? because i'm not only making the gpus, a lot of the chips for the smartphones, but also the advance packaging, so there are other a.i. winners, and why so many investors right now are hungry for something beyond nvidia. >> some are saying that they're trimming their portions, i've seen comments, morgan stanley yes they put the price record 107 $50, but they're saying the bar is so high for nvidia that they're gonna have to not only beat -- and then have to deal with a supply constraints that may restrict that upside in revenue for nvidia specifically. >> it's not just that, how many of these companies to hyper scalers, the big guys out there are saying that they're going to try to do some of this development in-house. amazon, alphabet, openai, among others. others say that they're gonna try to develop these chips on their own. >> openai may have some sort of announcement with intel, because sam altman did announce

that he's going to entails foundry day, which is coming up soon. we'll be there on february 21st. maybe there's some connection going on there. to your point, that poses a threat to a lot of these names like amd nvidia in the 3 to 5- year range because they're going to be building their own stuff in-house. why use these players? >> kristina, thank you. >> we'll get into arm as well. >> i want to talk about arm? >> one of the bigger movers today, and i underrepresented -- 56% the last time i checked. the reason for arm growth -- i was told it i need to stay away from military stuff, but growth and royalty revenue, the need for power efficient a.i. data centers, arm is known for the power side. it's important for our viewers to know that arm does the blueprints, the data the design, they're not actually building those chips. their design is in everything from your smartphone, do your car.

what they showed us is there actually seeing an increase in licenses and royalties because of this a.i. push, because people are looking for more power efficient systems because a.i. is moving into the edge, and that's why a company like arm can benefits, and why the stock is sort. and the big winner? today, just since yesterday, since their earnings report last night. and softbank -- >> flat for the year until yesterday. >> precisely. that's because people were sleeping on it. they didn't see it as an a.i. beneficiary, and then all the sudden they realized. >> and video sucks all the energy out of the room. >> we talk about a lot, it is the number one. >> do we talk about it a lot here? no. -- >> 51 bucks a share. what is it now, 600? >> it's not there yet. but it's definitely in the double triple range. >> isn't it crazy though, in video tried to buy arm for 40 billion. >> all right, thanks. good, glad we got the arm --

two arms. the super bowl circa 2024, huge money on the line this sunday. we are talking off the field and on the books. further ahead we'll speak to the ceo of cirs orbo, 'lbe right back. 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. the u.s. was the world, was the world's biggest exporter of lng or liquefy natural gas. and total was a company leading the way. but now the biden administration is taking steps to limit that export of u.s. lng, are pippa stevens actually spoke to the company ceo, we talked a little bit about the weird and evolving dynamic around liquefy natural gas, it is supposed to be a savior in many ways, but what happens. >> it may came as a surprise, but french energy giant -- is actually the largest exporter of u.s. lng, and when i spoke to ceo patrick -- i asked him about the impact of the white house causing lng approvals. >> it's a temporary measure, which will have no immediate impact, but i think it's for us it's fundamental in this big

energy transfer and for europe it will be a pity to go from i would say a -- to an issue with u.s. energy. >> he added that ultimately it could be damaging for security of supply to europe. since hamas's october attack on israel, crude is down 3%, the -- rerouting ships to avoid the red sea is driving up prices in european markets, where diesel is up some 15% this year. total another european -- have been more in vested on -- while many u.s. players have doubled down on fossil fuels. when commodity prices were high american energy companies soared while european companies lagged. the pouyanni says the true pronged approach such the company up for the future. >> -- is to demonstrate that it's yes oil and gas, and integrated power, it's in fact the energy of today, but you

need as consumers, and preparing the energy for tomorrow so our strategy, and i'm convinced that the market will recognize the value of it. >> that includes offshore wind, and when many projects are being counseled thanks to surging costs, total is moving forward, including with one off the coast of new jersey, billion a says to tell benefited from a later start, enabling it to lock in competitive prices relative to the early movers who he called too optimistic pouyanni■also said that funding from the inflation reduction act will help make the project profitable, but definitely a divide here between with the european players have done and what the u.s. companies have done. >> remind me, when the administration put a pause, they put a pause on the development of new facilities, right? >> exactly. >> to export lng. so the current rate of lng production in the u.s. will remain where it is? >> that's correct. it's not going to pause any of our current lng exports, it's actually not going to impact

total immediately, because the project they have under development right now, the rio grande is already being constructed. so this permit is only -- the white house's approval pause is only four projects that are in front of for quite now, so that's only a few projects, but what it does is it creates uncertainty longer term, and what you need with energy contracts, what he was saying, is that these are decade long plus contracts in place, so if there's any sense of it might not be this way going forward the foreign players might say hey, it's not worth it. >> it's a big investment. >> it's billions. you're not gonna invest if you don't have -- if you think they're gonna shut it down. i guess the environmental lobby would say hey, to the extent that you are continuing to build lng terminals, even though natural gas is a better cleaner fuel than coal, it's a better and cleaner than a lot of things. it is still, it will still mean

increasing output of fossil fuels. >> that's right, because the signal is a long term future. once again since these contracts are multi year, multi decade, if you're signaling it's okay to build them then we're going to have that -- it's gonna be used for years to come. >> thanks. let's get over to kate rogers. >> hey, tyler. oral arguments are over in -- the majority of supreme court justices today seem to indicate deep skepticism that colorado has the power to remove former president trump from the ballot because of his actions trying to overturn the 2020 election results. the high court took the case on an expedited basis and a ruling is expected within weeks. the mandatory retirement age for pilots will remain at 65, at least for now. the senate commerce committee today voted not to raise it to 67, the committee also approved legislation that increases safety inspector and air traffic control staffing. and a federal judge today denied peter navarro's request to stay out of prison while he

appeals his conviction on contempt of congress, the former trump trade adviser was sentenced to four months in january, the jet age said the in less than an appeals court steps in he must report when ordered by the bureau of prisons. back over to you, tyler. >> i'll take it over here, kate, thank you very much for that. in television versus a tory, a tory versus aga, say government endo, nintendo versus sony. sony versus microsoft, you get the picture, the consul wars have been raging since the 70s and while the fronts and everything else and the companies have changed, the fight to remain the same, at least until now. could the war finally be over? at councils, the hardware for go. th's coming up next. ng, take care of it with gold bond's healing formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond.

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welcome back everybody. usually when you hear that phrase next-gen in the gaming world you're talking about the next big consul release, but right now we might be getting a teaser for the next gen of the entire industry. disney investing over a billion dollars in epic games, won the most impactful investments from a traditional media firm getting into the gaming space

yet. is it too little too late? and with it comes that -- disney's massive library of ip that can be turned into gaming content. at the same time, evidence growing that the council war could finally be over. xbox seemingly giving up on title exclusivity. but could microsoft just be gearing up for a new war, one over content distribution? here to discuss all of this is brandon ross, media and technology analyst at lightshed partners, and our steve kovach, also joins us on set. steve, why don't i start with you. why don't you take the disney for a first, put it into context, tell us what they're doing, what this is going to enable them to do, and why they haven't been more forthright or forthcoming in gaming to this point? >> let me tell you a story of two bobs. we have bob jay pack, they spoke to -- when he was ceo of disney. julia's very smartly says what's your metaverse strategy, mr. check back?

his answer was disney+. let's fast forward to what mr. iger said, the other bob, he said yesterday. well, we see an opportunity in gaming and this interactive environment, we understand that we have this great ip that we are already licensing to gaming companies, or licensing it to sony for spider-man two, which is a massively popular game, made gobs of money. we're working with fortnite which epic games makes. licensing our characters and ip to them, this is just going to expand that and create this flywheel for for customers to have new east to experience it, sort of like how they experience it in a theme park, -- it has this positive flywheel, that seems to be what they're going at one and a half billion dollar investment from disney, iger, the second bob's -- who is really bob number one. he said he basically said this is we're investing one and a

half billion dollars in this, unclear how much epic games, which is a private company, is valued and also give you one other potential headwind here. they made the point yesterday, disney did, three billion gamers in the world, most of those are mobile gamers. and right now epic games is in a massive battle with apple where the mostly creative games depend on map mobile happens, it's the big question becomes now how disney plays along with that with epic effectively out of the app store at the moment, so there's questions about how this could work on a massive scale. >> let's bring in brandon ross now to talk a little bit about the dynamic. you laid out perfectly, steve, the state of play right now. is this going to be in essence a game-changer for disney? can this fuel the next leg of growth, growth enough that it will get some of these activists involved in the company to say okay maybe things are going in the right direction? >> look, if you go back to what happened in the the streaming

wars, disney was late to compete with the likes of netflix. and bob iger has realized mistakes that he's made in the past, and wants to move disney forward. now probably with a lot of activists pressure to where media is going. and that is very clearly a 3d interactive world. we can see what's happening on robots, which is putting up 20% year over year compounded growth in users and time spent because younger generations are hanging outs and socializing in 3d worlds. uygur needs to be a part of that. >> brandon, we talked about let's switch a little to microsoft and the council wars, dom set it up, a tory versus this so, and so forth, what is going on there, and what is microsoft likely to do and why? >> yeah, so microsoft has been getting killed on xbox by playstation, this is been going

on for years, but has been especially evident in this cycle. i think last year playstation sole double the amount of units. then did xbox. so xbox is kind of given up and said look, we want to be again like uygur, moving to where the puck is going, we want to be ready for the next generation of distribution of this contents they believe that is in subscriptions, and it's also in the clouds, where they're very strong. unfortunately some subscriptions really hasn't taken off the way they imagined yet, and they have a lot of first party ip. so what do they need to do? they need to make money off that so putting their games on other councils is a way to kickstart that, and buy them sometime, and hopefully expose the new players to the ip they have, that they could get a good deal on by playing game pass.

>> so steven mike, am i into reading this correctly? and that is that we're going to a platform agnostic world? >> yes and no. if microsoft as expected this week, we're running out of weak, but they said they were gonna announce at this week, if they do what they think we're gonna do, and say -- previously titles you could only play on xbox, now we're in a put them on our competitors machines, sure. sony is not gonna do that. sony is the market leader because it has those exclusive, titles and by the way, this is one of the core arguments the ftc had when they tried to bust up the deal between microsoft and activision, saying microsoft is just buying activision so it can -- put call of duty, put it away from all these others, microsoft from day one said no we're not going to do that, we're not gonna do that, ftc's today they would say they were -- but they were, and they said it's about cloud gaming. let's get into what they just said about cloud gaming here, that is the idea of netflix for video games. so it doesn't matter what you have, as long as it's something

with a screen that can connect to the internet, you're going to be able to access -- >> by that title. >> no, stream. it you pay 20 bucks a month or whatever you end of -- you can stream into anything. subscription, netflix for gaming. that's where they think it's going. but technically it's not there yet, you can try it now it's kind of janky, it's slow it doesn't work as well with gaming yet, it will get there eventually, and the believed it is that it can be the beginning of the end of the council wars. >> you still either neither controller or vr headset at some point, to do all these things. >> controllers or are 50 bucks, whereas councils are 50 bucks. >> brandon ross, steve kovach, thank you very much for that conversation. maybe not over just yet, but we're getting closer. coming up on the show, we're going all in on super bowl 50, will head out to vegas t.e.d. talk bending ahead of the big game with circa sportsbook -- power lunch is half back after this break.

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just six years ago sports betting was illegal outside of nevada, and the nfl thought against legalization. now las vegas is hosting its first ever super bowl, and gambling is really intrinsic to the business of sports. a record 67.8 million americans are expected to wager more than 23 billion dollars on sunday's game, according to the american going association. contestant brewer joins us from las vegas, with a special interview with one of the sportsbook ceos who's looking to benefit from the record number of bets that are expected to be placed. i contessa. >> hi tyler. it's really exciting for the commercial gaming operators, as well, because they know the more bets are coming through on these legal platforms than even social bedding. previously. so with me now is derek stevens, who is the ceo of circus sports, and the owner of several other downtown las

vegas properties. this is a big deal for you. i know super bowl, but every super bowl is sold out in las vegas. can you quantify what that impact is of hosting it? >> contessa the last four -- but what's different this year is with a game being located here, it just started earlier. there's parties every night, the amount of, the media spend, the amount of celebrity, we've got the live golf terminate, we also have three other celebrity golf tournaments going. i'd say the retail spend it really started last monday all the way up through next monday, is really the big difference so far. >> is that where you're going to see the incremental increase in the first quarter, is that midweek business compared to other super bowls? >> i would say everyone's midweek, the rumor rates are far higher, than what they normally would be. >> how much? >> that depends on the property, but anywhere from $40

up to $200 above what would be normal on a monday tuesday, wednesday, so it's say you're probably looking at a 25% bump citywide, throughout the week. and then into the weekend you're looking at room rates that are double. >> for a cnbc audience, they might say okay but that's a one- off, you get the super bowl here, it is, is there a carry over effect for las vegas? and i know for instance f a lot of downtown properties got left out of the big boost that they saw? is it more demographically fair when you get the super bowl in town? >> yeah, i think vegas is always specialized in super bowls. like i was saying, vegas is sold out the last four years in a row. but this is just different, it just amped up even further. i think you can see it, the excitement, the excitement of the casinos and all the casino floors of the last few months everywhere around town is all whole other level of juicing it up. >> tessa, thank you very much.

derek, you are couldn't casino veteran. i wonder super bowl aside, that's obviously a very big catalyst right now. but do you feel as if the city, the gaming industry around las vegas itself, is in a place where the covid pandemic kind of is in the rearview mirror, and everything is going away should've if it never happened from 2019 to where we are in 2024, derek? >> yeah, dawn, i think something is really evolved. there's a number of things that what happened the pandemic has changed the way americans, consumers look at things. i think las vegas is set up perfectly, because people like to get out, i think we've learned that coming out of the pandemic. there's still tremendous pent- up travel demand. there's tremendous demand for people to watch and consume entertainment together. live sports is live entertainment, and people of doing it in large groups. it really sets things up well for a city like las vegas.

i did radio roads yesterday and it was amazing to hear how many people really enjoy this las vegas experience all week. vegas was kind of made for super bowls. >> i'm curious, you just signed a deal with the culinary union that averted a strike in las vegas. how, much of an expense do you see that moving forward, and how what does it say about the power of american workers right now that we're seeing these historic contracts? >> i think we all know what happened the last year and a half, we saw this big uptick in inflation and what happened with on the unions, and we have long term contracts, you don't have the ability to renegotiate in the middle of a contract. a gallon of gas went up for everybody, a gallon of milk enough for everybody. this is a little bit of a payback for really what was held back previously. i think the deals that happened with the culinary union in las vegas really set up las vegas and set up the workers to have a pretty good -- for the next five years. >> you've got lots going on,

even as we speak it's still midday in las vegas, and they've got parties up in the pool level, they've got people down in the sportsbook already. it is hopping in las vegas, dame tyler. >> thank you very much contested brewer, and derrick stevens, i will note it's 5:00 somewhere. still ahead on the show, paypal's plunge, the online payments plater -- after posting disappointing for your guidance. our priest -- how she is playing that game. and more. coming up next. during february, we are celebrating black heritage. here is ogilvie global consulting partner sharing his -- >> i'm proud of black heritage because of the resilience, ingenuity, and adaptability that exists. and i'm encouraged by the collective action of the db i pledge, and organizations, and people that are attempting to make change permanent. 's something big happening.

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it's time for today's three stock lunch where we take a look at three big movers of the day and here with our trades as ava autos the chief investment officer of e.r.

shares. thank you for being here. we have one resorts, the casino operator. shares of wynn up 7%. >> is the seventh biggest performer of the s&p today but i have it as evolved. their growth is flat across other assets because biggest asset is macau china that didn't live up to expectations. second-biggest is vegas, third is --. the reason why they have the same revenues as where they were five years ago but profits are less than where they were five years ago is online betting. online betting such as fanduel and draftkings are taking away market share and its hard for these brick-and-mortar old- fashioned casinos to compete. they have high capital expenditure, their margins are coming down.

>> best case a hold on wynn. let's go to paypal, better- than-expected fourth quarter results for disappointing guidance. shares down about 10%. your trade on that one? >> that is a sell. management said they're going profit growth pause. they are trying to recalibrate their internal operations and find new growth areas. again, i think when it comes to fintech companies, we built in rate expectations for them. it's not just paypal, it's european competitors, none of them met their expectations. i think they are struggling. active users are coming down for big competitors like apple pay and shop pay are coming after the big margin areas which are the areas like venlo and paypal. >> finally, let's turn to high end fashion, luxury retailer,

ralph lauren, we skew the result whooshing shares of then 17% today. what is the trade on ralph lauren? >> that is a hold. another hold in this case. i think ralph lauren as we see, there growth is not where it was years ago. their margins are coming down. i think that's a significant change. they have competition from e-commerce areas. overall, in the best case scenario, this is a hold. >> ava, e.r. shares for the three stock lunch. thank you very much. still had them all of big winners will be able to take home a monumental prize this year. will reveal the one-of-a-kind reward and the pictures tell 1000 words. that's after the break. ♪♪ whoo! ♪♪ light work!

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we have about two and half minutes left in the program and several more stories you need to know about. in the consulting firm mckinsey and company beginning with number one is warned 3000 of its staffers that their performance was unsatisfactory and they will need to improve moving forward, the long wagging finger is in their faces. employees are typically given three months to turn things around and then a more serious conversation may be in order. >> interesting and ironic because mckinsey is the one that tells companies how many people they need to get rid of. >> 3000 of them are on notice. and they are putting out a release saying we put 3000 on notice. >> they hired aggressively over the last few years, so proportionately they are still of there. the 2024 olympic winners will get to take home a little piece

of paris with them. this year's gold silver and bronze will be inlaid with a small piece of the eiffel tower itself. the pieces were taken from parts that were swapped out of the monument during a past restoration, little bits and pieces. you can take the and recycle it and make it charming and story full in a gold or silver or bronze medal. >> a little piece of the iron from the eiffel tower. >> you can see those middles with the eiffel tower. >> stocks had a solid run in 2023 but that night not be the best news for seniors as retirement funds as well, so did minimal requirement distribution. since our mds are taxed like regular income, larger distributions could bump eligible seniors into a higher tax bracket, so get ready for that if you had to take one of those forced distributions from an i.r.a. or similar. >> those were first world problems because you are making more money. >> object when you are paying more taxes. >> your city may started

congestion pricing this summer at a hearing in new jersey's law. a lawyers a new york is aiming for an mid-june start date but the suits could push things back even further. we live in the area. >> this is going to be real controversial. we will see how that one goes if it goes at all. thank you for watching power lunch. >> closing bell, scott walker, starts right now. thank you so much for welcome to closing bell. i'm live from post night at the new york stock exchange. this make or break our begins with the surgeon s&p and the risks to the rally are mounting or much to do about nothing? will ask market watcher jeremy siegel when he joins us in just a moment. take a look at your scorecard with a 60 minutes to go in regulation because it looks like this. look at the s&p 500. we are three points away from that 5000 level. we have been hanging around for much of the day but it looks like we may make a move here in the final stretc