rapidly if we do fall into a recession and start to see unemployment rise, at sort of levels we're seeing now, how would you think of it as rate cuts and is that a sign you've done your job demand wise. >> sorry? >> if the economy looks like it's starting to fall into recession, if the jobless rates start to rise -- >> that's not something we're hoping to see. obviously we're hoping to see something very different, which is continuation of what we have seen, which is labor market coming into better balance without a significant increase in unemployment. inflakes coming down without a significant increase in unemployment and growth moderating without a significant increase in unemployment and that's what we're trying very much to achieve. and not something we're looking to see. >> would you take that as a signal you should cut rate s?

>> obviously we'll look at totality of the data as i mentioned a couple times. liz: the dow smashing through the 37,000 ceiling for the first time ever as the federal reserve leaves rates unchanged for the third straight meeting and indicates it could see rate cuts in 2024. fed chair jerome powell answering reporter's questions. let's go back there live. >> bloomburg television radio. mr. chairman, you were raising rates to fight inflation and said earlier the full effects of the tightening cycle have not yet been felt. how will you decide when to cut rates and how will you ensure you're not behind the curve there? >> so we're aware of the risk that we would hang on too long. that's a risk and we're very

focused on not making that mistake, and we do regard the two -- you know, we've come back into a better balance between the risk of overdoing it and risk of underdoing it. not only that, we were able to focus hard on the price stability mandate and getting back to the price where you do when you're far from one of the two mandates and now getting back to where both mandates are important and they're more in balance now too. we'll be very much keeping that in mind as we make policy going forward. the things we'll be looking at i've already described. we're obviously looking hard at what's happening with demand and what we see, we see the same thing other people see, which is a strong economy, which really put up quite a performance in 2023. we see good evidence and good reason to believe that growth will come in lower next year and the median participant wrote

down 1.4% growth but we'll have to see. it's hard to predict. and we'll also look to see progress on inflation and labor market remaining strong but ideally without seeing the kind of large increase in unemployment that happens sometimes. >> when you begin the cutting cycle, will it be essentially run the same way you do it now with raising rates where you basically do trial and error cut and see what happens or will you tie it to some particular measure of progress? >> we haven't typically tried to articulate, with one exception one really specific target levels and some of you will remember the thresholds we used in 2013. the answer is these are things we haven't really worked out and it's sort of just the beginning of that discussion.

>> thank you, mr. chairman. edward lawrence, fox business, if the fed cuts rates like the dot plot showing 75 basis points, does that signal there's a belief of weakness next year in the economy? >> if that were -- first of all, let me just say that isn't a plan, that's just cumulating what people wrote down. that's not something you know this but allow me to say this again, we don't debate or discuss what the right -- whose sep is right and we tap late them and it's important for people to know that but it wouldn't need to be a sign of -- it could just be a sign that the economy is normalizing and doesn't need the tight policy. the economy can involve in many different ways -- evolve in many different ways; right? but could be more of what i just described. >> focus on core inflation and heard in other meetings, how sticky is core inflation right now?

>> well, that's what we're finding out and we've seen real progress in core inflation. it's been stick jim jordan and famously the service sector is thought to be stickier, but we've actually seen reasonable progress in nonhousing services, which was the area where you would expect to see less progress. we're seeing some progress there though. in fact all flee of the categories of core are now contributing goods, housing services, nonhousing services and they're all contributing in different -- at different levels, meeting by meeting and rather report by report. so, yeah. >> thanks for taking our questions, bloomburg news. i just wanted to ask a little bit about, you know, you had some pretty positive data this morning and yesterday. i'm assuming those were not incorporated into the forecast we see today. but i just ped to ask how that kind of -- wanted to ask how that adds to your thinking, you know, on the inflation outlook?

>> we have cpi the morning of the firs day, and we got ppi the next day, which informs the, you know, translation into pce. so it's very late in the game, you know, but nonetheless participants are allowed to and encouraged to update their sep forecast until probably mid-morning today. after that it's -- sofa has to cumulate all that and create the documents that you see. so until about mid-morning, maybe later -- late morning, it's okay to update and i believe some people did update their forecast based on what we saw today. >> how are you -- when you think about, you know, starting to think about the rate cuts next year or whenever they come, how do you, you know, how do you think about the economy we're in now kind of post-pandemic? do you think there's been some eight hours significant

structural shift and is that going to change how you look at a rate cut path? >> if the question of whether there's been fundamental structure shifts is really hard to know the answer in a very interesting one right now. the one that would affect one that comes to mind though is just the question of where the neutral rate of interest is. and so for example if it's risen and i'm not saying that it has, if it were to have risen, that would mean that interest rates would need to be a bit higher to convey the same level of restriction. the thing it we're not really going to know that. you know, people will be writing papers about that ten years from now and still fighting about it. it just is going to be uncertain and we're going to be making policy in the difficult uncertain environment. someone once said that you know the natural rate of interest by its works and that's really right but that's very difficult

because policy operates with a lag and one of the reasons we slowed down and we started slowing down at this meeting last year reducing the pace of which we're adding restriction and over the course of this year, we slowed down a lot to gift lags time to work. in terms of demand, has demand sifted more away from services into goods? you can make a case for that that the shift back into services has not bonn complete and not ongoing and people just people bought stuff and temporarily getting stuff. >> thank you, chair powell. jennifer berger with jaire hook yahoofinance. you said in july you needed to cut rates before getting to 2% inflation and pce getting at 3.5% and pce running at 2.5% and super core and shelter, they're

stickier. so when looking at different components of the data. how much closer do you have to get to 2% before you consider cutting rates? >> the reason you wouldn't wait to get to 2% to cut rates is that policy would be too late. you'd be reducing restriction on the economy well before 2% because before you get to 2ers p so you don't overshoot. if we think restrictive policy as weighing on economic activity, you know, it takes a while for policy to get into the economy of economic activity and affect inflation. i can't give you a precise answer and you'll see a reasonable estimate of the time lags and the time it takes.

>>-- reasonable? >> i wouldn't want to identify any one precise point because i'd be able to look back and probably find out that it turned out not to be right. we'll be looking at it and the broad collection of factors. >> i wanted to go back to the stickiness of inflation question. over the past several years, one of the bankers talked about the difficult mile of getting inflation down to 2% and it's been surprising how fast inflation has come down this year. i'm curious, do you think something has changed in our understanding of inflation or do you subscribe to the notion still or something different about the u.s. economy? thank you. >> i think this, you know, we've felt since the beginning that it would be a combination of two

factors and first is unwinding pandemic and the second is our policy which was weighing on aggregate demand and making it easier for the supply side to recover and those two things are necessary. say the last part of your question again. >> if there's something different about the u.s. economy. >> yeah, it may or may not be about different, the u.s. economy being different. i think that this inflation was not the classic demand overload, pot boiling over kind of inflation that we think about. it was a combination of very strong demand without question and unusual supply side restrictions both on the good side and labor side because we had a participation shot so this is just very unusual. and we had the view, my colleagues and i had the view

that you could get essentially a verbal supply curve because you ran into the limits of capacity at very low level because people wouldn't -- the supply chains were all broke. the view coming down with the vertical supply curve for the extent that demand lowered and something like that has happened and it happened so far. the question is once is runs around and we have waste around and the service supply chain and shortages side and some ways to run. does labor force participation run and might and immigration could help and at some point run around side and it was very possible and to say with certainty and the last mile it'll be different and i'm reluctant to suggest any certainty around that and we

don't know. inflation down into balance and so far so good and we kind of assume that it'll get harder from here and so far it hasn't. >> i i want to ask about the balance sheet given the fed's ports of entry customer on proceeding carefully and given rate cuts and talk us through what the latest thinking is and has there been any consideration of altering the pace of quantitative tightening at all. >> we're not talking about altering the pace of qt right now. just to get that out of the way. so balance sheet seems to be working pretty much as expected. what we've been seeing is that we're allowing runoff each month that's ending up and we're down close to 1.2 trillion now and

that's showing up in the reverse repo facility has been coming down quickly and reserves moving up or as a result holding steady. at a certain point, you know, there won't be anymore to come out of it and there'll be a level that reverse repo facility levels out. that levels comes down we have to reduce the securities holders till we judge the quantity of reserve balances reaches a level above the reserves and we also intend to slow and stop the decline in side of the balance sheet and reserve balances are somewhat above the level judged to be sample reservings and we're not at those levels with reserves close to 3.5 trillion and we don't think we're at those reserves and not a lot of

evidence of that and watching carefully and so far it's working pretty much as expected we think. >> are you adjusting the thinking when it comes time to consider rate cuts? >> you're asking the question and i am plying the question of can you continue with request, t at such time that qt is a tightening action at such time that policy is still tight and the answer is it depends on the reason. if you're cutting rates because you're going back to normal and cutting because the economy is weak, i can imagine you get to know the reason and whether or not it's appropriate to do the two things at some time. thanks very much.

liz: breaking news, federal reserve chair jay powell taking the last interest rate policy meeting of the year and delivering an early christmas gift to the bulls. market shooting higher and powell dropped the most positive tone about the u.s. economy and slowing inflation and perhaps most important of all the fed could cut interest rates and most i've ever heard him take. the dow industrial going parabolic and blasting to an all-time high strategies day and right now the blue chips gaining 410 points and high of the session and watching every step of the way and 479 points and close at the moment but just slightly below it. we are just below 37,000, a moment ago we were above it. all we need to see with the dow is a gain of 221 points at the close to mark a new all time closing record.

s&p, looking at gains of 52 points and good for about a 1% move here and you can thank real estate, utilities, consumer staples followed by financial for those gains and now to the nasdaq having a solid gain and 1% gain of 163 points and high of the session for the nasdaq you can see the peak right there to the right. 210 point point-blank layupses. this of course is 2023 highs and same with the s&p 500, okay, beating them all is the russell 2,000 and percentage gains here and russell powering high and just a second ago gaining -- yeah, about that. a very big move here and 62 point-blank layupses right now again and we're up about 51 points and know what else spiked and the yields move inversely cratered to mostly lows and the announcement and 10 year yield at 4.21% and looking at a move

of 16 basis points lower and that's neck mapping to 4.406 and this tracks most closely to the fed's policies and two years on pace to close the lowest since june 1 and 4.487%. bitcoin, omg, that takes the case because they're gaining just under 4%. a dramatic move of $1,574 per bitcoin and stands at $42,681. this is a big move across the board, the only thing not really moving is the vicks and the vicks is slightly lower by 1% and means volatility is much calmer and we're at a 12 handle lightly above what we saw yesterday and first on fox business, what we want to know, the timing of a rate cut and reaction from wharton professor

jeremy siegle and clearly the markets are looking at powell as very doveish with the dot mott showing three rate cuts next year for a total of, i believe, 80 basis points. what do you see? >> well, this was fantastic news and i think we're going to go to all time highs on the s&p and on the dow. i think the nasdaq might take a little bit longer, but this is the sort of flexible i've called for powell to have all the time. it summarized me. i was thrilled and they were talking about cutting rates. when they start, it depends on the economy. i don't think it'll be the january 31st meeting and it'll be the march meeting and the data will be in that support it at that time. this is great news for the equity market and very good news for the u.s. economy. liz: let's listen to the, i

heard it and i don't know if you heard it but like a teeny tiny victory lap that jay powell took about how they have proceeded. i know you've been critical and here here's how he put it and in that jay powell sort of quiet way. i want you to interpret it, listen. >> i think the inflation forecast is roughly, roughly what people wrote down a year ago but in a very different setting and i would say the labor market because of the stronger growth has been significantly better and look back at sep there was a significant increase and didn't happen at 3.7% and we've seen strong growth, still a tight labor market and one coming back into balance with the support from the comply side, greater supply of labor, it's -- that's what we see and that combination was not anticipated broadly. liz: meaning people like you,

some economists out there weren't anticipating bradley and talk about specifically how big of a rate cut we might see by the end of 2024. as i said, the dot plot indicated about 80-basis points lower than where we are now and now to 5.5% and market anticipating 1.5 basis points. what's going to be here? >> i think it's going to be more and i think there'll be more progress on inflation and better progress on inflation and i've seen the money supply as i talked about and it's decreased and we've got to get that growing again at 5% and that's consist with a 2% growth and real economy and 2.5% inflation and we're get ago squeeze on liquidity and way to not get that squeeze and bring rates down, encourage borrowing,

lending, that gets deposits up and money supply up, and that will ensure that we will have a good 2024, and i think we will have a good 2024. liz, i was surprised the fed was surprised, everyone was surprised. i was one of the few that still thought that the stock market would manage a gain this year, which very few did louisiana december and 2024 could be as good if not better. liz: two big headlines here from you, you think the first cut will come march, not as market anticipates more so and look at fed funds futures here for may and it's a much bigger odds and this is the markets betting and much bigger odds that the markets come in may and not march and the s&p will crash through the all time record highs. so, i guess my final question is what is the best opportunity that you as an e son mist sees when it comes to sectors and you

might think financials would do well or less well rather because rates are coming down. they can't charge as much and where do you put your odds that a certain sector might do better than another? >> well, the small and mid caps that lag so much this year selling for 11, 12 times earnings because of this fear of recession, the fed would be to stubborn not to leer rates and going into recession and the russell 2,000 and small mid cap flexible stocks and the flexibility of the fed could very well mean that is a type of stock that will outperform in 2024. liz: boy, it's good to see you and i hope you have a good holiday and going to start off nicely if people are long or bulls. ththank you, professor. >> thank you, liz. liz: a lot of stocks have been spasming in the wake of the

press conference we had and some are moving up. intel, can we look at intraday of intel? it was lower earlier and popped a buck to the upside right now from its lows of the session. intel is not necessarily magnificent seven stock, but could it be heading in that direction? the stock has gained 66 -- well now at 67% year-to-date. changing as we speak. and ai is very much a push for the chip maker and could it then help dawn the magnificent seven crown in 2024. here from reaction from the c suite about the fed and future of ai is intel ceo pat gelfand gelsinger. what do you make of what the federal he serve looks to do in 2024 and how will that affect a company like your s? >> if we're sitting here a year ago and inflation has come down and jobs remain strong and economy is performing well and the fears of recession have

dissipated and we'd say, no way. here we are a year later and say the fed's done a pretty good job and we're i did justing the news of today like everybody else is and it put as pretty optimistic tone for the overall growth and for a business like ours that's very capital intensive and looking for a stronger economy and launching key new products and this looked pretty good. liz: some would say that the nasdaq was saved thanks to ai and the big explosion of opportunity there. people got excited and they started piling into a lot of stocks and many technology stocks such as yours have pivoted in a way. i'm talking about last two years or so? so in a very obvious way to ai. you've got announcement you were about to miami make and had a opportunity and meeting with many more people here in new york city. what is intel doing and ai that's different from everyone else? >> we've call it had -- with verne an event tomorrow called ai everywhere. thinking about it, most of the

generative ai has been around these very impressive high end training environments and not that many train ai inferencing and pushing a initiation into the climate and bringing ai into personal computer in the future and every pcai enabled and every edge device enabled and data center ai enabled and given intels, volumes, the way we drive standards and ecosystems, that's what we uniquely bring to the party. liz: ai semiconductor chipped in of 2 and are people that interested in using a pc at the

moment because look, before you several ceos at intel missed a future projection and opportunity in the smart phone world. you've come in having a vm experience and know all about silicon valley and turning this gigantic ship around and tell me about where you see the pc in all of our lives. say in the next two years. >> yeah, i've defined this ai pc as sintrino-like moment and i helped create wifi in the industry but it was when sintrino as a platform came out and every laptop burst with connectivity and coffee shops had business and getting rid of connectors and redefined the pc and calling it the greatest and

have new applications exploding on how we communicate and with inter-fashional audience getting realtime transcription and translation and body and new ones contextual information all because of the ai accelerator inside the pc. liz: darwin survival of the fittest and can't fall by the wayside and how do you ensure that you're not just in the game but that you're leaping ahead of, you know, one example is getting interested in the pc opportunity in that market. you could argue that that's a certainly formidable competitor here. >> yeah, obviously competition makes us all good. liz: going to the line. >> thanks, liz. we're a volume player and working for these chips for a number of years and i declared

the ai pc, everyone is like, oh, yeah, let's get in on the game as well. liz: that's true. >> and declaring the category, working on it and enabling the industry. that's what leaders do. we have been the volume leader in the pc industry. some people will do some high end and niche products and we'll deliver hundreds of millions of these devices. we already have over 100 different application developers and part of the ai pc making a industry as well and i don't know what all the innovations will be and i can tell you i'll be the platform who enables those to emerge. liz: i've got to talk about china and i've covered intel for 25 years and intel had incredible relationship with china. we now, here in the unit, the government is pushing controls on companies like yours exporting to china and how are

you shifting to make sure you can sell toll china? >> about 25% of the conductor revenue goes to the largest market in the world and super important market for us and at the same time we work very closely with bis and the regulatory bodies as they put it in to help shape those regulations as appropriate and make sure that we have products that meet those regulations and do everything we can to support our chinese customers, even as we protect our technologies everywhere in the world. not policy for us is one that allows us to maximize the market and continue build and lead in the technology developments that we're doing in the match. match. liz: that's the balance sheet for that? >> we study this all the time, liz. liz: bad or good? >> well, you know, it's a jeopardizous environment and we believe the business community needs to be a bridge builder and

it's easy to get politically over skis on both sides of the ocean here and we're trying to say, okay, be very thoughtful about what policies we put in place and how we continue to have access to the largest export market in the world. liz: one of the things that china and the threat of china did for the united states was for the biden administration to say let's bring that industry back home. tell us the status of the massive foundry universe you're building in columbus, ohio. where does that stand and what's going on? >> yeah, the u.s. chips act and something i was gonely involved in getting across and it was declining in the u.s. for years and this is the inflection point that causes the industry to reemerge and we're one of six major projects and we've announced to of them in the u.s. and has ohio projects like, wow,

manufacturing coming back to the u.s. and coming to the heartland. i've called silicon heartland in ohio. that project is well underway and come out sometime and we'll give you a tour of the site. concrete is poured. liz: you anticipated my next invite me question. >> we vascularized projects in oregon, new mexico and more. liz: i'm interest when had you talk about the entire market. smart phone market. qualcomm and arm were very big in that, are very big in that . i talked to qualcomm as well and they are looking to bring everything to the device in and away from the cloud. it would make thing as lot less expensive. their chips, that's what they're working on. data center has been a real rainmaker for you guys, at least you finally found your footing once again and it's been very positive in the past couple quarters, but tell me what role intel will play and is playing when it comes to ai bringing it down to the devices themselves.

>> yeah. i call it the three laws; right. one is laws of economics. it's much less expensive if running on your pc versus in the cloud. laws of physics and i can be faster running on your pc than the laws of the land. are you better running on pc than cloud. these drive the workload to the client and aipc for us is so critical and i want all the ai running right there and, hey, i might do some of the training in the cloud and i want all the use case on the device. liz: where are you hiring? >> we're obviously starting to build up the team for ohio and expanding the new site -- expanding sites in arizona and we're building some of that up. obviously like everybody else i'm building up my ai team right now in establishing the big newfound reigns leading business. liz: you must be encouraged by the year-to-date moves in the stock and 67% gain and very nice

certainly and how do you move that needle even more in the next six months, especially considering the fed is going to be most likely dropping interest rates as we just heard. dow jones industrials up 378 and you're a dow component. >> yeah, as we think about it. we still see ourselves as well undervalued; right? compared to the business, strategic role that we play as the national champion in semiconductors and the role we play in building back the economy and establishing a balanced and resilient supply chain for the world and become a manufacturing partner for many others in the semiconductor industry. i believe we have a lot of value creation in front of us,&, hey, it's hard to turn around a company. i've call it had a five year plan to rebuild intel and we're just a bit over halfway. we're starting to see those green chutes turn into proper trees and new business areas for us. we have a lot more good things to come for our shareholder. liz: i would end on that

positive note and one thing sticks in any mind. i went to israel a couple years ago and intel has a plan there. you employ a lot of people there. what has it been like as we are in the midst of hanukkah and christmas is coming and you're a very religious person as well and believe very much in faitha. tell me what you have said to those employees serving and some who have lost their lives. >> yeah, i have over 20,000 souls i consider myself responsible for there between our direct employees and contract workers and about 17% of them are on reserve duty today and we've lost several in the conflict from our family and some of our members have lost children. we still have some hostages as well. this is very personal. my next trip will be well over 100 trips and we've supported our team financially, emotionally and special things that we've done to support them.

but the israeli people are the most resilient people on earth. they have not missed a single wafer commitment or product commitment despite the conflict. liz: seriously? >> that's why we believe so deeply in that work. we're there for almost 50 years and the first company to start the tech nation there. i was just on the phone yesterday with isaac herzog, the president of the company and they're a resilient people and we'll support them and believe deeply what they've done and supporting the humanitarian efforts across the region as well. we pray for peace to come quickly, you know, to the region and a more permanent solution because this isn't a new problem. this is thousands of years in the making and we're deeply committed to our employees there. liz: hats off and sympathies to junior employee there is.

good luck with intel. we're very invested in covering your company. thank you for coming. >> always a pleasure, liz. thank you, merry christmas, happy holidays and happy hon kanhanukkah. liz: thank you. pat gelsinger of intel. stock bulls wake up and hitting the ground running as soon as fed announcement hit the tape and not because they kept it frozen at 5.25 and 5.5% but because the statement made clear it looks like at least many of the members of fomc committee feel that rates will come down sometime next year. next year is just a couple of weeks away and equity bulls love it. dow, nasdaq and s&p notching 2023 highs and all three trying for a fifth straight session of gains, but the dow is one to watch. it hit all time intraday high and could be on track to end at a new record. as i mentioned at the top of the show, the index has to be up more than 220 points, we're up 421 right now. that's what we need to all time closing high. last time that happened was on

january 4, 2022. here's a question though, because we're in news, we got to ask the other side, are the markets getting ahead of themselves when it comes to rate cut expectations? listen to what powell said. >> it's really the next question, and that's what people are thinking about and talking zack i'll say we're seeing strong growth that appears to be moderating and seeing a labor market coming back into balance by so many measures and seeing inflation making progress and these are things we've been wanting to see and we can't know, we have a ways to go and no one is declaring victory and would be premature and can't be guaranteed of this progress. liz: looking at dow, 37,000 and here is the s&p, 4697. there were a bunch of wall street analysts calling for 4600 by the end of the year. we're above it at the moment. let's check this know. just since the last federal

reserve decision, that was back on november 1 and the broader index resumed 12% higher and during that same time period, the 10-year yield has created about 70 basis point-blank layupses and november 1, it stood at 4.775% and right now 4.02%. that's a big move here to the downside. which investment is the right one to make right now? to our floor show and favorite trader, kenny polcari and kenny wiseburg is going to kill me for saying that because you're all my favorite. kenny, this was an epic show, huh? >> look, jay powell is not always clear and it's all over and there's no possibility of rates going up again and seems that that's not going to happen and he left that door open while also saying the dot plot suggests that there are members of the committee certainly not identified because they were

remaining anonymous on the dot plot on what they expect rates to be and i would say it's already happened. rates are already going low. look what happened to the 10-year, it's shown it. the 10-year down 70 basis point-blank layupses and the easing has happened in the bond market and can't you say that the bond market is doing the work for the fed the same way it was doing the work for the fed going up to 5% and everyone said to the fed, no, no, no. the bond market is going the work for you. the bond market is now doing the work in terms of easing. you'll see mortgage rates coming down and i'm in the camp that fed needs to stay where they're at and 3.7% and no need to simulate that because it's at historic lows at the moment and there'll be some easing and stimulation based on what we're seeing happen on the bond market. liz: he said there's little basis that the chips act is in a

recession. you said the bond market is doing the work for the fed. now it's time for investors to pick up the hoe and shovel and they've got to do work and forced some opportunities in every world. doesn't that make sense, kenny. where do they do that? >> well, they're doing it and they're doing it to your point. liz: let's be honest, you and i have talked about this, you've said just leave it for the moment in shorter term treasuries and you'll yield 5%. why not? isn't it time to get out of the bond trade and do something else? >> well, listen, i'm not sure it's time to get out for sure. listen, there's clearly opportunity in the equity market. look what's happening and they're tighting and broadening out and magnificent in the rally and look at s&p and it's shot higher. there's plenty of opportunity but i think now you have to start to just get a bit more

cautious and we've had a straight run and gone straight number a line and trees don't go to the sky and some digestion and if the economy is performing the way that jay powell suggested and it feels like it is, then maintaining the force and have ago broad diversified portfolio going to include technology is going to be the way to go and whether you leave money in bonds or not and the bond market does well and lower price markets go and money sitting in government money market funds, you'll start to lose and you should start to look at broader picture and see. i think just because there was a massive run in the last six weeks, you should just hit tight till we get through to the new year. there's a lot of stuff do goingn in the next two weeks and it'll settle in the new year. i haven't sold anything. i remain fully invested and i

love the fact we are where we are. i'm happy. i participated the whole way up but i'm not chasing. liz: i was going to say if i held a squirt gun to your head, what would you buy that we haven't talked about? anything? >> new york it under performed all ye including a lot of other people doing the same thing and look what happened to a couple of indexes. ijt or ijj, all those small cap and mid cap index haves rocketed higher because investors are found opportunity in that space. away from that, ai is going to continue to be the story in 2024 and beyond. you have the ceo from intel on cpi that's a great story. there's a huge opportunity not only in intel but i think there's continuing to be big opportunity in ai. you have y to be bracing for ito settle in a little bit.

liz: kenny, thank you my again. great to see you. we appreciate it. i just want to say something about the dow here, guys. we are gaining 461 points at the moment, 37,039 and first time we've breached 37,000 as statisticians and the gal lows or bowels of the build or whatever appropriate and right before the fed decision and the dow was up only 20 points and look at move and very significant. we got to talk about some of the individual stock names that are on the move here. get to pfizer. pfizer is at the bottom of the s&p 500 today and forecast weak 2024 earning ands declining demand for covid vaccines and treatment and the stock is down 6.5% off the lows of the session even so. the drug maker said it's 8 million in total sales from covid-19 products next year and antists were expecting council

digit sales again and biontec down 1.5% and moderna the rival up a fraction of a percent and nova vax up 8.1%. etsy making news and also falling near the bottom of s&p and laggards here but it's off the lows and much ugg herrera picture here before and etsy down 2.5% and it's slashing its work force by 11% and works out to be 225 employees and it's a challenging and macro environment and etsy is different and it's a craft side and nonetheless it's suffering. tesla, big news out of tesla earlier today and the stock has turned around and first falling and now up half a percent after ev maker said it's recalling

over 2 million of the vehicles in the united states fitted with the autopilot advanced driver system. and theines to install new safeguards and they've been getting investigationed for over two years on whether vehicles ensure drivers pay attention when using autopilot and tesla disagrees with the assessment and would deploy over the air software update that will incorporate additional controls that are like little technological slaps on the wrist when not paying attention. we're hearing that tesla will recall 190,000 vehicles in canada related as well. no labels. hunting around for marquee presidential candidate and charlie gasparino in the past mentioned virginia governor glen youngkin and nikki haley and new name being floated and charlie break it is next.

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liz: really solid moves for the markets across the board, dow, s&p, nasdaq all up more than 1%

and the russell looking very strong, up 3 1/3%. let's get to charlie's story here. non-partisan organization, no labels, israge up the search for third party candidate with less than a month before primary season begins. we heard a handful of names thrown e thrown out the last couple months but tonight appears the organization will vet a new potential candidate. at least that's what you're hearing, charlie? >> fox business has returned the "no labels" party, hosting a special call with representative dean phillips. as you know is currently mounting a long-shot bid to challenge joe biden for the democratic nomination. this is what they're sending their members. i believe it is tonight at 8:00. apparently mr. phillips will discuss our economy, affordability crisis, why a competitive presidential primary is important for the country and the democracy.

fascinating. they don't quite say that we want him on our ticket but they're not, they're not reaching out to him because they just want to say hello. this guy kind of fits their sort of broad mandate for a bipartisan ticket. he could probably work with a republican and, i guess you have to ask yourself why is this important to our viewers? this is a business, a business network. for me it's important because the "no labels" ticket, if it does happen and i'm told it will only happen if it is biden versus trump. they think those are two candidates that you know the country really doesn't want, if they had their druthers. if the republicans about nikki haley it will not happen. democrats with gavin newsom probably will not happen. if that happens the "no labels" party could essentially doing the president by taking votes away from one or the other depend hog they put on the

ticket. then it becomes a issue, what type of fiscal policy, and economic policy you have and that is important to our viewers that care about business. i would just say the names i keep hearing they're talking about, obviously this guy's name is on it. i don't know much about him. he is a rep from minnesota. liz: he is a businessman. >> a businessman. he is moderate, part of that no labels sort of crew in congress. this is a non-partisan group of congressman suggest they can work across the aisle. you know, he could work with a republican and the other names as you've been saying, liz, we've been reporting, nikki haley is on the list. whether she would go for the their party candidate unclear. doesn't look like she has a path within the republican party. what is interesting about nikki haley she would have a decent shot if she ran as a third party candidate, she gets a lot of money from democrats and

republicans, republicans, never-trumpers, democrats who hate the fact the party has gone left-wing particularly on anti-semitism, issues like that cultural issues, you could see the potential of a nikki haley ticket with this gentleman. liz: what is interesting about dean phillips, they always say, could either side, voter on either side sit down have a beer. >> him, definitely. liz: he ran a distilling company. that is how he made his money. midwestern -- >> a moderate tone. liz: exactly. >> i think nikki haley does as well. i think that is where you're seeing. the other candidates of no labels before i go, joe manchin has been out there obviously. he has been part of the whole thing, larry hogan. glenn youngkin has been mentioned. i don't know if he would do it. he has a bright future in the republican party. joe lieberman, big no labels guy, he could be on the ticket. i don't think he will be. i think he is more of a

king-maker. those are the names we're hearing. throw dean phillips in, throw nikki haley is, how this is constructed could decide the 2024 election depending who they take votes from. liz: charlie, thank you very much. five minutes before the bell. the dow above the crucial 37,000 mark. those listening on xm 113, it is 37,040. liz, say what it is. i can't see. we're on pace for a record if the dow close up more than 221 points. fed chair jerome powell, big news today, waving the victory flag today on the fed's fight to bring down inflation. >> well, that is what we're finding out and we've seen real progress in core inflation. it has been sticky. famously the service sector is stickkier but we've seen

progress in northern housing area services where is the area we expect to see less progress. all three categories of core are contributing goods, housing services, non-housing services, different delves, meeting by meeting, rather report by report. liz: but he did not rule out another tightening. let's be clear about that he is ever cautious. let's bring in a bigwig investor, 1.24 trillion in assets under management, chief manager at lpl financial quincy krosby. what jumps out to you about the tone? what jay powell says speaks most to investors that are watching? >> well i think it was very clear, i mean even though earlier on he said look, i'm not going to declare vick -- victory. i will not take out a victory, but as you point it out fed is virtually finished. they will not raise rates but the question for the market has

been rate cuts and what the fed did including powell but also the fomc was meet the market and this tug-of-war between the market acting as if it was going rogue against the federal open market committee has now been linked. the question is by how much. obviously it is not as as much s what the market is suggesting but the fed is suggesting there are a number of scenarios we can raise, cut rates and we will do it. there is no consensus from the statement from the, from the federal reserve but nonetheless they have acknowledged that the market has not gone rogue and kind of gone loony compared to what the fed is thinking. that is very important. we're closer to the end but the one thing that the fed does not want to give up, liz, is the notion of having its options because the fed is always talking about the '70s in

which rates went higher, they went lower but stagflation inched in between. they don't want that. this stop and go policy. liz: right. >> but the fed is just about there. the market knows it and that's why we see across the board including those small and mid-cap names, shooting way up. it is good news. liz: okay. quincy, we have about 20 seconds here. you like energy and yes oil has turned around. it is moving higher. it is a laggard. why do you still like energy? >> because in terms of seasonality we'll see prices go up. electric vehicles, you know, the sales are down. the fact is, we just had the meeting in doha. guess what? there is no blueprint following that. you still need crude oil. you still need natural gas. the fact of the matter is the u.s. is producing more than any, more than the saudis and russians together. we need it for security in the

world we're living in and the u.s. is producing and it is producing more than it ever has. liz: good -- >> mergers and acquisitions is showing this. liz: quincy, happy holidays. thank you so much. >> thank you so much. liz: very strong day for anyone long the market. let's get back with 40 seconds left, kenny polcari. we're at session highs. the dow is up 509 points. key takeaway quickly. >> yeah, yeah. right up here make a new all time closing high. s&p we're into a new century. we crossed over 4700. that is also very exciting for the markets. as you and i talked this feels great, you and i love it, i am participating it is great. don't feel that we're a little bit extended but go with it. to your point the fed made the call. they indicate they could go lower. so we'll see. [closing bell rings] liz: we have the big fireworks. the dow setting a all-time record.