>> welcome to bloomberg markets. i'm vonnie quinn. no record today, it seems. investors chewing on dave that supports recent comments from the fed that there is no rush to cut rates further. let's get a check on those markets. the s&p 500, down .5%. it has been a choppy session. nasdaq is down 1.25%. all of the components in it are lower right now. we are seeing some money come out of treasuries. we are going to speak about all of it in a moment. then crude, about .5% off. the market weighing the opec plus meeting with some geopolitical tensions in the middle east. let's get to some midday movers. abigail doolittle joins. abigail: investors not liking a

slowdown in personal computers. you can see the shares of dell technologies down 12.3%. they put up a quarter where they beat earnings but sales missed by about one -- by about 1%. also sliding on a year-over-year basis by about 1%. the weighing on the shares of hp as well, that recovery expected in personal computers. the cfo of dell saying it is stretching into next year. dell having its worst day since may 31. one stock that is soaring, urban outfitters. this is of most since 2023. up the most since 2020. he put up a big beat for earnings and sales. same-store sales up 1.5% versus the estimate of 1.3%. there is probably a big bear short squeeze here though. let's take a look at the shares of symbotic. you can see a massive plunge.

the automation technology company cut their outlook to an -- due to an accounting error. something that clearly investors don't like. finally we have an ipo to take a look at. let's take a look at the adr, the market cap. moments ago up about 20%. the ai driverless vehicle tech company, the ipo price was pushed back from last week because of the high demand. here you can see pony ai, a market cap of 3.6 billion dollars. again, up more than 15% at this point. vonnie: it gapped higher at the open and it does seem to be deteriorating slightly, so any retail investors who have got involved might need to take -- might need to keep an eye on that stock. had a wave of u.s. economic data released this morning it included fresh pce numbers which showed underlying inflation

accelerating in october. earlier on bloomberg lindsay p exit gave her take on what the take would mean for the federal reserve. >> has not continued back to 2%, so the risks to appear to be leaning in the direction of, stay focused on inflation, keep that focus, and take a more patient approach to additional policies easing. as clearly this is not an ailing economy in need of policy support. as we look into 2025i think the fed is on the verge of a policy pause sooner than later. vonnie: joining us now to dig into the latest reads on the u.s. economy is kathy bostjancic . thank you so much for joining. part of the strength in today's inflation data is expectations for stock prices. i want to show you this chart on the bloomberg which shows that goes out into the future. people are expecting stock prices higher next year, and that is being confirmed by some

of the targets we have. how concerned does the fed need to be by today's inflation data? kathy: always happy to be with you. i don't think it is overly concerning at this point. it is a tougher decision if they are going to cut rates again next month. i think it is a closer call, but i still think the data was encouraging enough that they could go ahead, cut rates another 25 basis points. particularly if you look at the headline inflation number. it was only up .2%. lower gasoline prices helping a lot there. as you noted, oil prices have another leg down because of tensions in the middle east. really, you have to remember, they target the headline inflation. that said there is inflation that is sticky at the core level, particularly in services. you mentioned equity prices. part of the reason that the core service prices are up so much is because people are paying more

commission charges to asset managers and fees. that is simply an artifact of stock prices being up. that is not inherently inflationary. i think there is more room for them to cut rates, but i do agree that come january they probably pause. then they are going to assess, what are we getting out of the new administration in terms of trade, tariffs, immigration? and then, what does the landscape look like then? my sense is it is not a slamdunk , but they can get another rate cut in next month. vonnie: deutsche bank out with them -- out with the note. as you say, they might start pausing in january because the outlook is so uncertain. is it possible for the fed to overcompensate, to get in and other cut before we get these tariffs in the books? kathy: there is so much uncertainty on the tariff front, right?

we know the announcement that donald trump made through social media, but is that a negotiating tactic? is that reality? have seen this play out before and there were some tariff increases, and notable ones. particularly vis-a-vis china. we never saw the large increases against china, canada, or mexico, or european autos. there were threats but it never came through. we will have to wait and see. certainly if you get larger across the scale tariff increases that certainly can boost inflation. it depends whether it is at the wholesale level or consumer level. but it also reduces growth. i think the fed is aware of that too. they could have a negative impact on consumer spending. so, you know, they have to wait and see. i think it is premature to speculate. and it probably makes sense that they wait. could they do another rate cut in january?

possibly, although they have also told us they would like to slow the pace of rate cut's down. so, to me it also makes sense, january seems the optimal time to pause and wait and see. scarlet: markets really looking at two to three fed cuts for all of next year, but let's talk a little more about spending. he came in today on target at about .4%. how strong is this consumer given that we are seeing all sorts of mixed at data at of earnings? kohl's, macy's, some of the department stores for the consumer, much lower than -- much lower, and obviously some individual brands. kathy: that is correct. what you are seeing is a consumer that is becoming increasingly more price-conscious. they were price-aware previously. we all felt the impact of inflation. but they are being very choosy now in what they spend their money on.

and we are seeing that. it was a notable change that in october we saw the personal savings rate rise .3%. what we typically had been seeing was the savings rate goes down month after month because consumers are spending more than their income gains. what we think we are seeing is a realignment back into what is typically a fundamental situation where consumers spend in line with income. you know, we have seen this big drawdown. that said, with the revisions we start going back to april, the savings rate and income gains are less than what we thought. so now that the savings rate for the month of september was revised down .5%, you know, the consumer is in a little bit of a tighter spot. i think they will continue to spend as long as employment and rate -- and wage gains prop up income. if you see employment start to falter i think the consumer is going to have a harder time. scarlet: vonnie: what is this

due to? the consumer being in a tighter spotcheck of we are not seeing that much weakness in the labor market. we are seeing the fed cut rates, so technically there should be some trickle-down effect. what is causing this consumer realignment? kathy: i think if you are up her middle income household, you are feeling quite positive right now on the economy and your own situation, right? you mentioned equity prices are up a lot, so that feeds into a wealth effect. prices are still tremendous gains their overall. so, asset holders, upper income households doing good. they are also garnering good wage gains. where you see the lower income households, price levels are really weighing on them. interest rates have come down but they are still very high. when you look at employment, the concentration is quite remarkable. it is coming in government and leisure and hospitality and

health care. private sectors that are more cyclical, you are not seeing wage gains or employment gains. what you are seeing is, companies are not laying off workers but also not hiring in a big way. scarlet: thank you so much for your time. that is kathy bostjancic. speaking of pce and inflation, u.s. turkey prices are dropping at a time when supplies have grown tighter. it is still a little early for data to show consumer purchases for this complete holiday season. but sales volumes of whole turkeys were down about 20% from a year ago in the four-week period ending november 4. experts are pointing to slumping production figures as a good proxy for slumping demand. ticket prices and the number of birds raised her down 6%, sending production to the lowest in's 1985. coming up, holidays right around the corner, but here at bloomberg it is still earnings season. autodesk president and ceo andrew anagnost joins us next.

we will dig in on the company's pressure earnings report. this is bloomberg. ♪

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investment objectives, risks, charges, expenses and more in prospectus at invesco.com scarlet: vonnie: this is bloomberg markets. i'm vonnie quinn. autodesk reporting third-quarter results that largely topped analyst estimates, but seeing estimates for one metric. adjusted operating margin. the company also announcing a new cfo this week. joining us now, we are joined by the company's president and ceo, andrew anagnost. as i was saying, many metrics eat. you did come in slightly shy only operating margin. stock was at an all-time high,

down more than 8% today. is this market being fair to you? andrew: we had a great quarter in a tough climate. we beat on all metrics and raised on all key metrics. we completed our eighth quarter of beating expectations in the market. you know, a really challenging time. this is happening because of people needing the digital solutions and how we deliver things. one portly, we also delivered strong, consistent performance in the make side of our business. construction, manufacturing. these areas of the business were growing north of 20%. that is another testimony. as far as the margins in the quarter that is because our annual user conference moved into q3 this year and is usually in q4. all of that washes out in the full-year result. vonnie: so that will increase, you are saying? andrew: the full-year guide is in line with where people expect. we actually raised the lower end

of the guide there. vonnie: you announced a new cfo to begin work next month. why? andrew: we were in an interim cfo period, and what we are focused on right now moving forward is, we are focused on operational excellence inside our finance organization. we have some great guidance and communication processes within our core finance organization, but we are very much focused on sales and marketing authorization moving forward, and we want best in class operational excellence in our finance organization that will help us drive those optimizations, making sure we are getting a return for every dollar, and hold people accountable. he is the kind of person that focuses on the operational excellence inside the company. vonnie: talk to us about conversations about star board. have you had anyone in recent days, are they asking for more?

andrew: we listen to all of our investors. the thing i want to focus on is the thing we agree about. the thing we all agree about is autodesk needs to drive more optimization in its sales and marketing functions. the work we have done the last two years is delivering the free cash flow buildup you are seeing now. it is delivering the revenue performance and the reaffirmed cash flow that we gave for next year. that is all the result of two years of hard work, but the result of that work is allowing us to now look at our sales and marketing expenses and optimize how we go to market. that is something we and all of the investment community agree on is an important target for autodesk. vonnie: starboard had been asking for a new ceo. obviously difficult to talk to you about this, but have you considered looking at a successor? intentionally stepping aside yourself? andrew: we think we have the right strategy.

look at the results we are delivering. eight quarters of beating the company's expectations. two years of preparing for the result we are delivering now. we are through the trough of our free cash flow. we are delivering on what we said we were going to do two years ago. in fact, we are beating them. our non--gaap margins are ahead of what we said we were going to do two years ago. we are achieving next year's targets and there is more to come. i believe in our strategy. i believe we have excellent execution and a really bright future moving forward. vonnie: you announced increased margin to -- margins and buybacks. was this a direct response to star andrew: board's asks? andrew:our allocation strategy did not change. our first goal is to invest in the business and our third goal is to opportunistically buy back of delusion.

-- dissolution. we have exited the free cash flow trough and our free cash flow is building. he issued a new repurchase authorization because we want to have the room in the medium and long-term to execute on that strategy. that is what that is all about. it is consistently executing on the strategy we have and making sure we have the headroom to do that. vonnie: thank. can you tell me, are you still engaged in ongoing conversations with starbird? -- star board? andrew: we focus on what is important to them, delivering results and moving forward through sales and marketing optimizations. vonnie: much appreciate your time. that was andrew anagnost, ceo of autodesk. coming up, it is not just a toy anymore. the expanding elf on the shelf universe enters a holiday season bigger than ever. a closer look at lumistella with

co-ceo christa pitts. that is next. this is bloomberg. ♪

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vonnie: this is bloomberg markets. i'm vonnie quinn. you may recognize the elf on the shelf, but the brand is gearing up for a new holiday season with a cornucopia of products and projects. it is a vast world compared to that single elf that started it all almost 20 years ago. joining us is christa pitts, co-ceo of the lumistella company , makers of the elf on the shelf. it is an expanding universe. you control the ip these days, so how do you go about building out the elf on the shelf and and going into more products, collaborations, networks?

christa: he realized was not every product we cover is not necessarily the elf on the shelf, right? the elf works for cena, reports to him, come back -- comes back to your home and flies back and forth from the north pole. but in the case of the ever-broadening world we are creating we needed a new name, a caretaker. that is where the santa verse comes from. underneath the santa verse all of our products, all of our brands can live in harmony. vonnie: do you work in countries where there is not a christmas, or does it have to be a country that is predominantly christian in some way? christa: every country celebrates the christmas season in a different way, which we recognize and appreciate. some companies have boxing day or three kings day. there are variations based on the country in which you live, but ultimately the magic and belief of the season is when our

company represents. we create joyful family moments, and people love that. vonnie: give us insight into things like revenue and what is a better deal for you in terms of margins. is it getting something into a grocery store or a movie made, or is it creating a new type of doll? christa: we break our business into a few different components. we have entertainment experiences and then consumer products. we are able to really broaden the net that we are serving our consumers with. if it is entertainment they are craving or content we have music videos that are on youtube. we have a multitude of partnerships, including netflix. so, we have some real beautiful things already on there. but also in the pipeline. christa: what kind of percentage do you take and what kind of percentage do the creators have to take for something like what you have on netflix? christa: it depends on the deal. we are fortunate in that my

sister, who is our co-founder, is the hub of creative content. nearly all of the content we put out and have produced thus far is made in house. that is the books, the consumer product part of what we do, and also our content. much of it is created by santa, of course, but ultimately our elves, really -- vonnie: speaking of santa's elves, how much do you have to think about the possibility of tariffs next year? you may not be the manufacture of these products, but somebody is manufacturing them. christa: actually, we are. we do the production sourcing ourselves, so it is a real consideration for us. obviously there is a lot to be seen, as we have been hearing from bloomberg today, but we realize free-trade is important, that is going to serve everyone. but it has implications. especially if you are a small to medium-sized business. as we do, sourcing production,

it has real effect. both in what we are receiving into the company -- country and putting into the country. vonnie: how much does he cost to make and how much does he or she go to the consumer for? how will that change next year? christa: we don't talk as much about the price on that side but it is about $29.95. and what we are really spending our time focused on is the safety of products. when we talk about the trade situation and potential tariffs one of the things we are most focus on his compliance. -- focused on his compliance. vonnie: i hope you come back and give us an update. that is christa pitts, co-ceo of the lumistella company. she is probably headed back to the north pole after the thanksgiving day parade. that does it for bloomberg markets. happy thanksgiving.

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>> from the world of politics to the world of business, this is "balance of power." live from washington, d.c. kailey: happy thanksgiving eve from washington. this is "balance of power." coming to air as millions of americans get set to travel for

the holiday, if they haven't already. you going to check in on the prices at the gas pump they are experiencing with patrick de haan of gasbuddy. we will also weigh in on the impacts the tariffs on canada donald trump has floated this week could have on energy prices. speaking of donald trump, he is naming more names to fill out the top economic posts of his head -- of his incoming administration. we will speak with laura davidson. we have a cease-fire in lebanon and effect between israel and hezbollah. what it could mean for the ongoing conflict in gaza with jane harman, -- jane harman. we have to get a check on the markets, and charlie pellett has the look from new york. charlie: thank you very much. getaway day for a lot of americans as they prepare to travel for thanksgiving. the direction of travel right now for the stock market, lower across the board with the dow, s&p, nasdaq all i