>> j5 is a type of jet fuel and that's appropriate for this team here. >> you lost me joe, what have you got >> health. >> i agree let's end it there sully, toss it over to tyler and we'll get out of here. >> thanks, josh. "power lunch" begins right now, with josh. >> brian's grateful for josh i'm melissa lee. markets rebounding from two really painful days. about 75% of the stocks in the s&p 500, though, are still in correction territory is it time to go bargain hu hunting? yes. sell-off dividend stocks that have been rallying the past couple of months dividend darlings to protect your portfolio ready, set, shop black friday and holiday shopping season, the trends that are emerging and retail names that are prime to cash in. "power lunch" starts right now ♪ you've got that james dean

daydream look in your eye and i've got that red lip ♪ >> welcome to "power lunch," day before thanksgiving. tyler mathisen here. green on the screen. look and behold, green on the screen as we head into thanksgiving stocks are higher. only making a slight dent in the losses in the past two days, however. today's gains are pushing the s&p 500 out of correction territory for what that's worth but the nasdaq still, folks, even despite 109-point game in correction huge rally for oil crude up about 4%, recovering a lot of its losses for the week energy, communication services, consumer discretionary shares among the best performing s&p sectors right now. contessa >> i'm contessa brewer let's get straight to the action this hour, seema mody tracking the big movers and looking at the prospect of a major market catalyst fading. mike santoli on why this appears to be an orderly sell-off. and fueling fears of a slower

economy that's keeping consumers on edge. >> 176 points, some of the main caught up in this selloff are leading this rebound facebook up 1%, amazon is also higher on a positive note from sntrust analysts, their team says the pullback makes its valuation more compelling and that stock is up more than 2%. it's worth noting, though, since the start of the earnings season in mid october, earnings estimates for the fourth quarter have come down 3%. analysts still expecting growth is just slowing profit growth for the upcoming quarters. still a number of worries, though tech slowdown, deceleration in growth, following that report. raw material costs rising, stronger dollar and higher rates, particularly as they relate to the housing market home builders are rallying today

but uncertainty in the housing market has translated to this market ishares home construction down about 18% in the past six months and on the trade front, u.s. trade representative leitheizer accusing china of theft, 17 days before meet iing with presidentx jinping. the market at this point shrugging all of that off at the moment melissa? >> seema mody, thank you there hasn't been any panic. if anything, declines seem to be orderly. mike santoli is taking a look at that it's been a rolling bear market. we've seen sector after sector. >> melissa, it hasn't seemed like one of those moments where everything is down a lot just because people are fleeing the market where it seems like a sell me out of any price type response difficult to quantify these things i think we can fairly say anxiety has been rising.

investors have become more concerned as the market has had this second 10% drop from this year from an all-time high but you look at the volatility indexes. they're elevated but not at the year's highs you can look at things like options data, lot more protective, downside options being bought than not. but it's not necessarily showing you the kind of capitulative pressure you normally see. yesterday you got close on some metrics. almost 90% of all volume was down you did see a little bit more intense iity to that selling an you saw some stocks that had been previously safe harbors losing a lot of ground for really on no news. maybe they're the makings of some little relief today bottom point, it's not clear to me that we need to see outright historic levels of panic it's only flat year to date and still above the october low. maybe it would require another flush down to new lows to really get people scared enough to where the old timers say, aha,

that's a classic buying opportunity. guys >> thanks, mike. i know you're going to stick around with us maybe you don't know that. to join in a market conversation in a couple of minutes meantime, fears of a slowing economy keeping the markets on edge steve liesman is here with that. >> we have a rapid update on that data on housing u.s. economy is going to come in for some sort of landing economists forecast a soft one traders seem to think it's going to be a rough one. take a look here what we have -- yes, there it is thank you very much. 2.2% the first quarter, rocketed up to 4.2, 3.5 then we called ten economists this morning and asked them for the 2019 forecast, averaged out to 2.4 all that other averages out to 3.1. we're coming down and take a look at how far we're coming down october support for the idea of the slowing. capital goods aircraft, for

business investment falling for the third straight month hasn't happened since 2015 i went back happened only 18 times since 199 can you put together three negative months one reason, lower oil prices but also tariff fears, causing investors to push off their investment so far business a tax-cut led investment boom could happen next year. we'll have to wait and see meanwhile, skip, this is about tax cuts, slowdown in fear of global growth. here are some of the folks out there. cbo potential, 1.8. >> these are percentages. >> yeah. >> 1.8%? >> that's potential. >> okay. >> you forgot about that, didn't you? >> what? >> that's deemed to be by the great minds -- put that up one more second. 1.8, okay? the 2.4 we're expecting for next

year is .6 above potential that's a good number that's what's crazy, okay? >> right, right. >> the fed at 2.5. action economics jp morgan and goldman have brought it down to 1.9 note those aren't recession numbers forecast there soft landing. >> but goldman and jp at 1.9, that's half of what we were doing in the summer of the year. >> right. >> and that's a slowdown -- >> how much is it relative to potential, tyler >> that's if you buy the cbo's view. >> failed miserably. >> it's one point above. tell me we changed the dna in the economy and i'll tell you we're doing subpar growth. if potential is two and you give me two, i'm happy with two. >> larry won't be happy with two. >> larry won't be happy with two. as far as i know -- >> the president won't be happy with two. >> huh >> the president won't be happy with two. >> the most important question

of all, was the market trading on october 3rd and before that as if it should have been three? was that the forecast? and is what we're going through now a coming down to earth >> adjustment? >> of, hey, we're headed to where we should have been all along, which is a two. >> reality. >> i think you're on to it there. i do. >> thank you, tyler. >> that we should have never been at october levels then, in essence? because they're trading on something that was never -- >> something that was -- >> so far above potential. >> i will say -- i hope i'm wrong about this and the entire economics industry is wrong about this the skepticism -- the president treated it as if you laughed at me and said we couldn't do it. no, we knew you could bring it up the skepticism is, could you change what i keep calling the dna of the economy productivity, plus the workforce growth to permanently bring us up to a new level? that's where the skepticism was. i am actually optimistic that we

can add to somewhere between a quarter and half a point that's the optimism upon which the market can trade but 3, 3.5, it's very, very difficult to get a percentage point on 20 trillion go ahead and try it. >> all right steve, thanks. >> pleasure. >> we have seen some very remarkable moves in markets lately check out staggering stats 75% of the companies in the s&p 500 are in correction land, meaning they're down 10% or more from their most recent highs almost 45% of the companies in the s&p are at bear market levels that means 20% or more from their market highs and a lot of those are big technology companies and 7 out of the 11 s&p 500 sectors are in correction energy and materials near a bear market so, is it time to go shopping yet? let's bring in brad mcmillan, chief investment officer with commonwealth financial network and mike santoli who rejoins us

now. good to see you, brad. what do you think? are we near a point at which the market might turn around and start to rally have we washed out some of the froth that steve pointed to where maybe the market was over estimating what economic growth could be >> i think that's exactly where we are, tyler. if you look at valuations, if you look at what investors will pay based on forward earnings, we've gone from 18 down to 14 or 15, which is about the lowest we've seen the past five years so, if that's a good guide, we're pretty close to the lows and that's consistent with what you were just saying about the broader market as a whole. >> so we've discounted, then, a slowing growth rate? >> i think we have because if you look at that 15 valuation, that's pretty much where we bottomed out in earlier years, say before this past year so, that was pretty consistent with the growth rates that we're looking to see going forward,

around 2%. that's what we saw in 2015, 2016 if you just look at the growth rate, where we are right now is pretty consistent with where we were and it makes a lot of sense. >> yet, mike, as we all understand, the market can overshoot in either direction? >> right, tyler. it can overshoot and also what other conditions have changed since the market bottomed in 2015, 2016 the cycle, however you want to define it, is older. not near the very end of this expansion. maybe on the order of 1.5, 2% next year might be good enough on the way there, you have your doubts as to whether or not it's going to be worse. the other thing, of course, is interest rates are higher. the fact that bond yields didn't come down during this equity correction, yield down 10% it creates headwind for stock

evaluations. at least it has recently, especially when corporate credit is acting up a little bit and demanding higher yields from companies. all that into the mix, i think it's understandable why the broad market, anyway, has had a hard time finding traction the last couple of months. >> are you anticipating a santa claus rally? >> i think we have a reasonable shot more to the point, you know, the points mike makes are solid, even though i expect a bounce. we'll find out in the next couple of weeks. if we don't get a santa claus rally, it will say to me that investors are more concerned because of exactly what he was saying and we might see a further lag down. >> right now you're investing defensively in the equivalent of the equity bunker. health care, reads if we do see a bounce, does that cause you change that stance >> i don't think so. what we're seeing here is a change in leadership there's been an enormous run on growth, in all the growth sectors. tech, for example. it's not that value is necessarily going to outperform. you're no longer going to see that growth out performance. i'm going to be more defensive

because the market is shifting toward the end of the cycle. >> going to leave it there thank you very much. brad mcmillan and our own mike santoli. super bowl for retailers will black friday bring a much-needed boost. and mark zuckerberg takes on critics in a new interview as he tries to rebuild trust what he said about his own role and sheryl sandberg's role and how the company dropped the ball and three stocks that can help protect your pofoo.rtli dividend darlings. don't go anywhere. "power lunch" back in two minutes. hi, kids! i'm carl and i'm a broker. do you offer $4.95 online equity trades?

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simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. it has been a rough few months for retailers targeting macy's, kohl's, all down double digits will black friday turn things around courtney reagan is live at a department store in new jersey with the latest. courtney >> reporter: hi, meliesa i know the retail stock performance over the last week or couple of months has caused some investors to lose their appetite but retail ceos from kohl's to footlocker think that the black friday deals will hit the spot and the next thing retailer want to offer shoppers, convenience, ease. they want to make sure it's a pleasant shopping experience

walmart, target, kohl's. walmart and target are offering a mobile checkout so you don't have to go to the register at all as an option but kohl's can do that, too, in many locations. retailers have to give shoppers many options like buy online and pick up in store management becomes even more important when you're fulfilling online orders from store inventory and doing it quickly kohl's actually promises if they do buy online and pickup in store in an hour or less and expect that 10 million items will actually be bought using this service in november and december alone with an estimated 70% of americans expected to shop in some way at some point over this weekend, retailers have a lot to do to get ready. they have to get ready their stores, train their workforce. they have to battle test their

website, make sure it's ready to handle the influx of traffic and shoppers and adobe actually says so for online sales for the month of november are up almost 17% so those early black friday doorbusters do appear to be working. and the earlier shoppers shop, the more they end up spending overtime back over to you. >> courtney, thank you very much for that well, all those doorbusters mean christmas is just around the corner 33 days and counting, which retailers, as courtney said, are set to capitalize on this year's hottest trends let's bring in evan clark, deputy managing editor at women's wear daily yesterday i was in soho, downtown manhattan the line for canada goose was 45 minutes long, so to speak, and they say on the weekends it can be three hours long. >> three hours >> three hours. >> why, because the store is too crowded? >> they pair every group of

customers. if you're a family or one customer gets their own sales person to go sminside and they'e pulling coats and all of this. apparently if you're going to plunk down that kind of money for a coat you want to try it on first. my question to you, evan, is -- >> evan is here, by the way. >> you guys are doing a great job. >> evan, thanks for coming in. >> i'm not a person who would stand in line to go spend my money. is luxury the trend for this christmas? consumer confidence is at an all-time high since the year 2000. >> i think luxury is always important to a certain kind of income segment we had trouble on the stock market lately, that makes that crowd a little more jittery. the canada goose example is a fascinating retail example where you've got once -- not very long ago, coats were a commodity product. they were something that you wore to keep yourself warm

canada goose along with mont claire have made that a category luxury fashion jacket that really didn't exist. so yeah 1200 bucks for a parka it will keep you warm and help you be stylish. >> walmart and target are looking at picking up toys r us bankruptcy can they give amazon a run for their money on e-commerce? >> nobody can. i think walmart is the closest building out logistics and distribution center that's second to none so they're still going to be hard to match. walmart is trying to build a platform to do that. but for the retailers, it will be handy that toys r us has kind of gone away as you bring in those families, that family who, instead of making the pilgrimage to toys r us for all the holiday sales,

finds themselves in walmart, target and can convert those shoppers from other companies. >> far from canada goose, a certain price point, is there another product or another category of products that are sort of hot or must haves this season >> kind of beauty has been a really hot category. >> beauty? ulta >> ulta, sephora especially skin care it's kind of a category that, in many cases, feeds into the wellness trend. >> it's not an insult to give somebody wrinkle cream >> no. >> i mean, it's like giving somebody a vacuum cleaner. >> what are you saying to me >> i'm not sure. >> that's a good point you need to be selective in your gift giving. >> better than pimple cream. >> you asked about luxury. it's a smaller kind of accessible luxury where you can spend 40 or 50 bucks. >> given me a good idea. >> yeah. >> this is good. >> tread lightly.

>> okay, be careful. >> one of the things, too, is going to be kits you can get kind of like a number of different items that's ready made for under the tree. >> that's great. evan, thank you for coming in. we appreciate talking to you. >> thanks for having me. >> all righty. i'm going to send skin cream to mark zuckerberg. he's going on the defensive in a new interview. what he said about how his company has handled controversy and what he really thinks about sheryl sandberg and why he has no plans to step down as chairman plus people are reportedly doing something to their facebook accounts. it could be more bad news for the social mediaia gnt we'll tell you what it is next when power lunch returns put your data to work on the cloud that drives business. the ibm cloud. the cloud for smarter business.

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the list goes on and on. that's the power of &. & when your patient's tests come back... welcome back to "power lunch. mark zuckerberg speaking out on criticism of how his company has handled controversy. >> mark zuckerberg defending the company's handling of election interference facebook shares adding over 2% after gaining less than a percent yesterday, bouncing back from a nearly 6% decline monday. though the stock is still down about 38% from its peak before reporting second quarter earnings in july zuckerberg last night acknowledged that they, quote, missed something really important and were not on top of these, what they call, coordinated information operations but also defended their efforts as well as ceo's sheryl sandberg's leadership take a listen.

>> sheryl is an important part of this company and is leading the efforts to address the biggest efforts -- biggest issues we v she's within an important partner for me for ten years and i'm really proud of the work we've done together and i hope that we work together for decades more to come. >> as for zuckerberg's own leadership, he responded to a question that a lot of investors have been asking about calls to separate his roles of ceo and chairman. >> so you are not stepping down as chairman? >> that's not the plan. >> that's not the plan would anything change that >> i mean, eventually, over time i'm not going to be doing this forever, but i certainly am not currently thinking that that makes sense. >> of course, that decision is all up to zuckerberg because he controls the voting shares of the company. melissa? >> julia, we want to get to this other story that's attracting some attention this one is from recode.

recode is reporting an increase in users downloading their facebook data, which sounds like something you might do if you're going to quit facebook. >> that's exactly right, melissa. so many more people are trying to download their facebook data that it's overloading the system this was first reported by recode we reached out to facebook which told us, quote, over the past two weeks we've experienced a higher volume of download your information requests than usual. this means it's taking longer to process these requests downloading facebook data is exactly the thing that people do before deleting an account in fact, if you want to delete your account on facebook, the company will prompt you and ask if you want to download your data facebook wouldn't tell me how much higher volume they're seeing the download of data. >> thank you, julia. rrtithe sector is still on a

coecon where prices could go from here and how to trade it, next.

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welcome back to "power lunch," everybody. i'm sue herera here is your cnbc news update at this hour. chief justice john roberts rejected president trump criticism of federal judges. in a statement released by the supreme court, roberts said the u.s. doesn't have, quote, obama judges or trump judges, bush judges or clinton judges, end quote. instead, he praised the independent judiciary we all enjoy. green bay packers quarterback aaron rodgers has announced he is donating $1 million to help the victims of the wildfires in california. rodgers, whose hometown is chico, california, posted a video on his twitter account to talk about that donation. ikea group says it plans to cut 7,500 jobs over the next couple of years. those cuts will be focused on administrative staff positions at the same time, however, the group also says it will create 11,500 new positions as it

expands with new store formats and online. and take a look at this. there you go familiar sight in los angeles last night bumper-to-bumper traffic on the city's highways as residents make their way home for the holidays or do a little shopping ahead of the long weekend. aaa predicting holiday travel this year will be the busiest since 2005 that's the i-5 freeway you know what they say in california you can try and get out of town, but you won't get anywhere there you go you're up-to-date. that's the news update this hour contes contessa, back to you. >> or as they say in maine, you can't get there from here. >> exactly. >> sue herera, thank you stocks rebounding from big losses the past few days, dow jones industrials up .75%. s&p 500 out of correction territory but the nasdaq still in it.

footlocker on pace for its best day since may, thanks to better-than-expected earnings. barnes & noble higher, trimming losses despite weaker sales and deere rallying the video game retailer selling its mobile division for $700 million. we'll be watching those today. >> contessa, thank you it's been a rough week for oil but crude has rallied today. it is on pace for its best daily performance since october, a month ago. could this just be a temporary reprieve jackie deang list joins us with more jackie >> that is the exact question you have to ask at this time oil still down over the course of the last month, despite what we've seen today it is a normal reaction to such a steep sell-off to what we've seen yesterday on the issue, where do we go from here, one camp says it's probably bottomed out. it's going to find some legs and slowly move higher they've been saying that for a while. or at least settle down a little

bit. the other camp says the 20% drop we saw was the iran premium coming out of this trade now the fundamentals will weigh it down even further why? u.s. production and opec production are very high right now, with no signs of stopping in sight in fact, the president tweeting today, thanking saudi arabia for lowering oil prices. it's not just the saudis pumping. it's the u.s., too, and the fact that global demand could slow and have an even more pronounced effect on the markets. today's move, we're going into a holiday and typically trader psychology is to head into these holidays on a high note rather than a low note. close over 55 is possible. it wouldn't be surprising. doesn't mean there's not more downside ahead, guys. >> stronger dollar doesn't. >> doesn't help either. >> and demand. depends on who you hear from as global economies slow, demand. >> it becomes a problem. to have supply and demand balance you need that demand to be more robust than normal to

handle the supply we're seeing now. if you sit back and tell me actually things are slowing, that's very concerning as we're pumping in these record numbers. >> jackie, thank you oil may be rebound but the energy sector remains firmly in a correction play oil stocks right now, jp morgan and the energy analyst at raymond james. we'll start off with abishek you recently lowered your year-end 2018 price per barrel to 64 and year-end 2019 to 61. what is the primary driver of these lower forecasts? on the supply side or the demand side >> sure. let me start with the classic cliche, and one of the main reasons we're seeing is oil markets were finely balanced literally a few months ago policy led increase in production from three major

producers, u.s., russia and saudi arabia, taken supply above the demand now basically this is the excess that we have in market and we will keep going down if opec does nothing going forward if you really want a correction in the supply/demand balance back to a balanced market you need intervention and opec needs to act to reduce that spes that it has, itself, created. and it's a self fulfilling act now. if they don't do anything, we'll see prices going down, unfortunately, because the markets are absolutely unbalanced at this point. >> does it take into account the assumption that opec will do nothing? >> that accord of december 16 is in place, right? assume them not doing anything will be contrary to the fact that they've not been successful with the record. actually they have done a good job. >> do you read anything into president trump's statements, standing by saudi arabia >> now that is definitely in our report that we mentioned, that the u.s. foreign policies have definitely made it difficult to

take a view on even opec-led policies and that's one of the biggest difficulties here, is that will opec on the 6th and 7th of december take an independent decision of what it needs to do or will it not >> reduce supply >> exactly, in an unbalanced market. >> let me turn to you. i had trouble understanding your argument you think that the market is in chronic undersupply. i would like you to tell me why you think that, and you think demand will continue to rise even as many analysts of the market see demand falling and ultimately you think demand is going to fall because the price is going to go up. explain your reasoning in 45 seconds or less. >> okay. our model based on global supply, global demand shows an undersupplied market with global inventories drawing down 2017,

'18, '19, '20, '21, five consecutive years, which is practically unheard of that's bullish it doesn't mean that every week shows a draw down but we have to take a holistic picture. i agree with what your previous guest said but iranian exports are down, partly because of u.s. sanctions, also lack of investment venezuelan production has rolled over let's not forget the vast number of countries for their own domestic reasons where production is flat to down brazil, mexico, china, australia. you add all that together, it does not create an oversupplied market quite the opposite and then by 2020, something else is coming down the pike. imo. these are the low sulfur fue regulations that are going to wipe out 1.5 million barrels a

day of supply. and that's a big deal. >> pavel thinks the market is undersupplied. do you agree >> not at all. in the markets right now, we do have a lot more production, purely because, as i said, saudis and russians have increased it to record levels. u.s. numbers, we look at it, is at a record high already we expect the u.s. to slow down the end of this year into early next year. right now supply is well above demand even if you take into account the iranian situation. >> you have a price target of what by the end of this year and what by the end of next year >> 64 and next year coming down. >> pavel, you think prices will be higher a year from now clearly than they are right now. do you put a number on it? >> absolutely. wti, in the 70s next year. brand close to 90. 2020 will be the cyclical peak for prices because that's when the new sulfur rules take

effect. >> the low sulfur rules will be able to override -- 2020, if economists are forecasting recession it's 2020. so that will override the decline in global demand because of a slowdown? >> if there is a global economic slowdown, demand would not fall. the rate of growth would decrease, but there would still be some demand growth. in fact, there needs to be a slower demand growth because we're coming off of four years of demand growth above the historical average of 1.4% a year that is not sustainable. in fact, prices must increase high enough to begin impacting demand in a meaningful way in advance of imo again, that's a million and a half barrels a day. >> right. >> that's going to get wiped out. >> let me ask you this, though if your forecasts for wti don't come true -- let's say for argument's sake that abhishek is right in his forecast for next

year, for $61 in ti, do your buy ratings still work in that environment? >> the short answer is, yes, because the equities are pricing in because it's well below 60. it's in the mid 50s. 10 to 15% and higher price level versus current levels would, in fact, imply some upside in the stocks, admittedly not as much as what we're thinking. >> all right we'll leave it there. >> gentlemen, thank you. >> thank you so much. >> good and very polite. >> you were extraordinarily polite thank you. >> even though you really disagree let's get to the bond market and rick santelli is tracking the action. >> if you look at a two-year note yield, buoyancy is a good

word because that's been bouyant in the face of equity. we are hovering in between the twin peaks at a level just above 3%, high close of the year, 3.24-ish behavior, not so well for the etfs expressed in the lqd investment grade, hovering at the lowest levels since the fall of 2014. what's so fascinating, if you look at a barclay's investment grade index from the same period 2013, we're nowhere near as wide as we've been. and you can look at the markets leading the credit nfl scoring big time in the

ratings. look just how long the experts were to how many people would tune in to watch the game in 2018. dow hitting session highs at this hour, up 194 points stay with us

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when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. big-time ratings monday night, they had a gain. >> huge. all-time, maybe the best gain on monday no surprise. best monday night game in years. nfl ratings are up 4% this year, surprised many experts, who predicted a third straight year of declines. on-field action. class of 5451.

media for the league and ceo of the nfl network, here's what he had to say. >> this year compared to last year, scoring is up. margin of victory is down. we have stars on the field new stars coming into their own. >> look, it's not just all sports that are up this year nbc ratings have declined now that lebron james is on the west coast. the nfl's competition goes beyond the other sports. it's basically everything on television he did say, though, that reaching the younger demographic has been been more challenging. >> you do see the younger demographic in this country, when it comes to sports and media behaving completely differently. we spend a fair amount of time looking at that, and concentrating on that. part of that is they're watching television less. >> i know you're going to think it's interesting. >> i was going to ask. >> rolapp says no pickup due to

legalized sports gambling because he thinks the legalized market is just taking share away from the illegal bets taking place in the past. that same phone can call your bookee, too. >> that's fair when you're in new jersey now, the ads are everywhere you might as well make a bet on it while you're here. >> that's why we thought this would cause ratings to pick up he said no, we've not seen any evidence. >> how many states have it up and running? >> five, six, seven right now. new jersey is the biggest right now. we see it because it's right in front of us. it hasn't really gotten steam in the rest of the country. it's very early, he said, in this process. >> it's interesting to think about the ways -- if you're not seeing that pick up in nba and other sports you could gamble on, it's an indication that you're not seeing the translation yet. but it's going to be interesting as people start to get exposed to it in other places and see our friends using it and seeing them more excited and more

engaged. >> i think there has to be a gambling channel on television, on cable. >> you're looking at fox sports 1, they're doing a gambling show. >> are they? >> i think you're going to see one of these sports networks just become a gambling network. >> i agree with you. >> we could all work over there. it's all like markets anyway it's like trading. fast money trader guys. >> like playing poker. >> know when to hold them, know when to fold them. >> all probability. >> math and chances. that's it. >> thanks. stocks are rallying right now. dow at session highs it's been a wild ride for investors over the past few weeks. finding safety in the sell-off hasn't been easy. this is kind of a market for people who like a thrill one area that's been doing quite well, dividend stocks. number of names actually rallying over the past month or so some hitting new highs we have three dividend darlings to prote yctour portfolio in the selloff. that's next. this isn't just any moving day.

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ernesto ramos is an asset manager. it's great to see you today, ernesto. your first pick is phizer, tell me why. >> the biggest risk has been valuation risk as the market has turned down, the stocks with the highest multiples have been the ones that's taken the beating all of the three picks, including phizer's, we're here to talk about today, have very reasonable levels of valuation phizer is trading at about 14 times earnings with a very high quality stable operatings earnings model, as well as an attractive dividend of 3.2%. with that quality and stability of an operating model and a nice dividend, it's not surprising it's held up reasonably well you know, they have a pharmaceutical business, they're

traditional and long time drugs are doing very well in terms of sales. it's not subject to cyclical movements in the economy so they've held up reasonably well. >> here's a place where if the economy slows down, people still need lipator and they're going to buy it and find a way to get it if they need it at the end of july they had a revenue beat of 1% do you expect that to continue, those kind of margins over the next year or so? >> we expect that they will continue to do well. not necessarily beat every time they report, but as you can see from the long-term trend in phizer, these guys are just very steady eddie operators they don't do tremendous beats, they don't do tremendous disappointments. they just are very steady. that's why you want to own them and particularly in this very volatile time. >> let's talk about your next

pick, exelon. >> it's in the utility sector, it yields 3.12%. trades at 14 times earnings. they're utility based mostly in illinois, pennsylvania, and new jersey there's nothing really exciting and sexy about utilities, except the fact that again like phizer, very stable business models. very stable margins and high quality. that's exactly the reason that they have done so well in this last months and a half. >> and the last one on your list is kimberly clark, why >> kimberly clark, it's a little bit more expensive at 17 times earnings but it pays the highest dividend at -- >> so you're buying this for a premium to the market and at the same time you've got a new ceo coming in. they've already said in the

latest earnings results that the contracts that need to be renewed next year will not be as favorable as they currently are because of rising costs. why do you like it where are we going to see the growth from? >> well, the growth is going to be very stable because that's the consumer staples of the marketplace. it doesn't matter to us they're getting new management we have a very -- we score stocks on 24 metrics we score 3,500 stocks in the u.s. every day and kimberly clark is in the top 30% of our scoring it's not the highest scoring e exelon scores in the top 3%. but it's got the stability of an operating model that we like, plus the attractive dividend, it's held up in these volatile times. it doesn't mean that's the only kinds of stocks we like, but those are the kinds of stocks that in downturns will protect

your capital. >> and i get what you're saying. if you're looking for dividend paying stocks at 3.6% dividend thank you so much for joining us today. >> you're very welcome. stocks are heading to session highs right now with tech among the best performers let's head to bertha coombs. >> i wanted to take a look at the nasdaq heat map. this has been a sea of red for so many days we're watching the nasdaq higher take a look, it's much more green today. if you take a look at some of the active movers. autodesk is one of the biggest gainers after posting very good earnings results as we know, that hasn't necessarily been a catalyst for upside moves we're seeing tech leading the move to the upside with communications names, chips, all moving higher. the fang names, of course, are

higher as you talk to traders, one of them said today all he's thinking about is god, please, let's just close to the upside traditionally. folks like to go out long going into thanksgiving. back to you. >> bertha, thank you facebook, apple, amazon, netflix and alphabet, down double digits. are any of them worth buying now? the 2:00 p.m. hour has turned into one of the most volatile hours othf e day. the second hour of power lunch begins right after this. presenting the internet!

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hi, everybody, welcome back to hour number two of hour lunch. here's what's on the menu. the bond king says there's more down side ahead for the markets. is he right? or is today potentially a turning point? while most stocks have fallen hard over the past month, airlines have taken flight outperforming big. why? we'll explain. will the rally continue as we head into the holiday travel season technology, come back today, the fangs, outperforming with one exception there, netflix is down just a little bit are these once high flying names

finding some footing now we will serve up a thanksgiving dinner with the ceo of boston market grab a fork, grab a napkin don't spill the gravy. power lunch starts right now ♪ just eat it ♪ get yourself an egg and beat it ♪ >> welcome to power lunch, stocks rallying after two down days where the dow lost nearly a 1,000 points bringing the s&p 500 and the dow out of correction territory. the dow is up by 160 points, or .7% the nasdaq composite is up by 130% or 1.5% consumer discretionary and materials are up by 1% apiece. utilities are lagging. johnson and johnson down 3.5% is a laggard. tech, back in vogue today. most of the fang stocks are moving higher along with the chip names

oil, jumping today after hitting a one year low yesterday we'll have much more on that ahead. let's get more on today's rally. >> it's worth pointing out we're close to session highs the positive closed in europe at 11:30 a.m. helped markets here push higher being helped by large capped technology. the recent sell off in facebook and amazon that's brought valuations down that's becoming a bigger discussion apple is trading at 13 times earnings, slightly before its historical average of 15 amazon trading at 77, yes, that seems high, pbbut it's lower th its longer term average. suntrust said the sharp pull back we've seen in amazon shares over the last couple of weeks, that provides an attractive entry point. the real deciding factor is whether amazon's performance will fare well during the upcoming holiday shopping

season that stock up 2% also helping markets is this move that we're seeing in energy wow, big pop in oil. therefore, the energy producers are gaining momentum as well in general, we're seeing a more risk on tone in the broader market the dollar is lower. rates are relatively stable amid all the market volatility we've seen the past couple of weeks. yes, volatility has come down as well let's take a broader picture, the dow is still on track for its worst week since mid october. we'll have to see how stocks fare today and of course on friday back to you. >> all right thank you for that. stocks in rally mode today one market watcher is warning the bottom is not in he says we don't have anything resembling a panic low, which means stocks have further to go. is he right? let's bring in lindsay bell and our cnbc senior analyst and commentator. great to see you

lindsay, give me a sense of where you see us going through the holidays, are we going to see a santa claus rally? >> if you at history, comparing our quarter to date performance, which is down over 9% for the s&p 500, history will tell you that after you have a move like that, you can rally until the end of the year. you can see the market up anywhere from 4% to 6% my colleague reminded this morning that thanksgiving is for the bears, while christmas is for the bulls. >> although we know past results are no guarantees. >> true. >> all of that ron, when we're talking about where do we go, what's the big factor that could be blocking the way of a santa claus rally >> i think it's two things fed policy and perceptions thereof and what happens at the g-20 if you were to get some full scale trade deal, not just of bogus promise of something to come -- >> given what we've heard from -- >> it's not going to happen.

>> it does not -- we shouldn't be optimistic. >> we might get a headline if the market continues down and the president wants to turn thecursithe conversation around he might say we had a constructive conversation. >> that doesn't change the fact that the tariffs will go up january 1st, the ones that are ur already in place. >> and he's threatened to put another 25% of tariffs this is criminology, trying to figure in who is out and who is out at the moment. larry larry cudlow, it seems that the trade hawks are in control when it comes to relations with china. >> i want to talk about this next month because we tend to pay so much attention to retail and what happens with holiday shopping. consumer confidence is the highest it's been since the year

2000 if we look at the october numbers. you have a lot of retailers who are pinning their hopes on a gangbuster season. gas prices are low how do you see this playing out into the new year? >> i think for the retailers, it's going to be a great fourth quarter. it's going to be a wonderful holiday selling season the thing is, you saw these retailers come out with -- it was mixed results, but some of the guys like macy's, walmart, and target, their same store sales were strong for the third quarter. you saw some raises for four year guidance, they're very optimistic about the holiday selling season just because it'sgood, doesn't mean the stocks are going to be able to wouns bounce or rebound. you've seen them down very sharply on these mixed results and expectations for 2019, the big question mark is trade trade really matters for these retailers. they were able to pull inventory forward going into the holiday selling season to avoid some of these tariffs that went into place in september when the calendar changes to

2019, they're not going to be isolated anymore they buy a lot of their different items from china they're going to have higher prices that will either be passed on to the consumer or they'll hurt their margins. >> when we look at durable goods, we saw orders falling 4.4% that gets your attention how do you see this moving forward and the trickle down effect to consumers? >> trickle down is exactly right. those who are in favor of this particular tax cut suggested not only would we see business profits going on, but also spending the consumer has done all right. was already -- >> too many variables to put the lid on the coffin of tax cuts? if you've got tariffs looming as a company, the prudent thing to do is to conserve cash and not spend. >> we have policy that's working at odds. countercyclical, pro cyclical. listen the consumer may have a

good holiday a year later we may be talking about something different. we're late cycled. the market is behaving late staged we could be heading to a growth recession as they say in 2019. that's why i think all the markets are telling us, commodities, interest rates, and stocks. >> thank you for coming in. let's dig a bit deeper into one of the more volatile sections of the market, technology big names like amazon, netflix, facebook and snap, all down 5% or more. what can we expect from tech as we head into the final stretch of 2018? will this once red hot sector make a comeback? i'm guessing given your price targets, you'd think these stocks will come roaring back. when i take a look at a outlike of $1.90, is that --

>> i don't believe we're going to have a roar back. there's no obvious catalyst for names like facebook. for google there is. you have a pretty robust hardware cycle amazon should be a fourth quarter rally stock. netflix not so much. i think it's a mixed answer. i wouldn't expect the sectors to hold the roar back between now and the end of the year >> we've seen facebook trade higher and outperforming the broader markets. we did have that report out which reported that there were many users that were downloading their data more than normal according to facebook itself and that may be the step just before deleting the facebook account. when you read this h h, how concerned do you get >> we've run our own survey work we haven't finalized it. i just don't see -- our survey hasn't shown a dramatic fall ou in the usage of facebook the advantage you have is that

the one social media asset out there that's showing ramping up usage and satisfaction scores is instagram, which is owned by facebook i think they've hedged themselves there's a lot of wood that facebook needs to chop you'll have an overhang on the stock. momentum investors aren't going to touch this name as margins contract some time next year the fundamental story turns. patient long-term investors can make money buying the stock here it's the best risk reward in large cap internet. >> my note says the stocks you think will outperform over the next seven years that's a long time horizon i'd like to have you tease that out a little bit it's not often we hear that kind of long-term thinking. i'm proud of you so explain. >> do you have seven year price targets? >> so i'm sorry, there must have been a misread there i'm glad you're proud of me, but don't be proud of me for that. i didn't write that. i think these are very good assets i don't have a seven year price

target i should i do think by the way these are enduring assets. i referred to them as utilities. we'll be using google and facebook and amazon and netflix ten years from now you buy these stocks they have been compounders they've been some of the best wealth creation vehicles over the past five years. i think they will be over the next five years as well. barring machine learning changes, that's what i'm looking out for. i'm sorry i don't have a seven year -- >> that's fine we got to the point there, which was the idea that you think tech will outperform, but you don't expect any kind of roar back, snap back between now and february let's say >> one last thing. look at the fundamental trends i think the stocks have been a lot more volatile than fundamentals when i look back at the quarter, growth rates were unchanged for google, amazon andfl netflix you cannot show me another sector -- you probably can --

but very few sectors have that consistency of growth. when investors want to come back to growth, there's a group that's trading close to market multiples with google and facebook that you can buy with premium consistent growth. that's going to be a way to make a lot of money the question is the timing, when to get in on those stocks. for patient long-term investors 12 months out, you buy these stocks right here, especially a name like facebook >> can you grade mark zuckerberg's performance on cnn from an investor standpoint? >> you know, i thought that was typical zuckerberg this is -- >> unsatisfying? >> no, no. i mean, depends on what you want do you want somebody who is going to promote themselves? i don't hear that from him i think he's fessed up to most of the responsibility that is his and the other parts of senior management. look, this has are been a very good innovation company. i think they got blindsided two years ago during the elections i think everybody else did, including the u.s. government. they're trying to catch up

facebook has a lot of responsibility here. they need to step up and they're spending a lot more. they're going through a massive investment cycle they're doubling down on -- increasing their operating expenses by 50%. so as far as i can tell they're responding correctly maybe too slowly, but they are responding correctly. >> mark, great to see you, thank you. >> thank you, melissa. airlines have been flying high recently. we'll tell you what those investors have to be thankful for. one of the biggest days for retail is just around the corner we'll tell you how the malls are getting ready for black friday you'd think thanksgiving would be a quiet day for restaurants like boston market you would be mistaken. tomorrow is one of their biggest days of the year a free thanksgiving day feast on luh.r nc we're actually going to serve some lunch after this. max, what do you wanna do today?

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i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. welcome back to power lunch. while the markets have stalled over the past month, airline stocks have rallied. they've got plenty to be thankful for this thanksgiving we're live at chicago's o'hare airport with the very latest >> reporter: hi, melissa, it's a relatively quiet afternoon here at o'hare. three reasons why the airlines have reason to believe thankful. first of all, they're expecting record thanksgiving weekend traffic. on top of that, they're also

seeing higher fees for things like checking a bag or ancillary revenue changing a reservation airfares are firming up. you can expect the airlines to have a strong end of the year. >> we are looking at a very healthy fall season. it is certainly rolling right into a very healthy holiday season >> reporter: a couple other reasons who ity the airlines ha reason to be thankful. take a look at jet fuel. it's still higher, but it's been trending down over the last couple of months take a look at the shares of the airlines, looking at united, jetblue, as well as american a lot of these airlines were in trouble earlier this year in terms of beinged under pressur, but the airlines have been moving higher. while the dow has taken a d dive over the past month, take a

look at the airlines the stocks have been moving higher there are the industrials, led by american airlines it's up 14%. the industry expects record numbers of travelers this long thanksgiving weekend airline stocks are just preparing to take off. joining us now is david vernon american airlines seems to be leading the way here over the past month do you think it can continue that momentum? or is it your first pick in this area >> i think it can continue, the momentum if you look at where oil prices have moved over the past six months, they've actually -- oil prices are down about 14% on a like for like basis over that timeframe. estimates for american are down 10%. we would think as models get upgraded, if oil stays lower, american can continue to move a little bit higher. you also have to keep in mind

context, american was a relative underperformer in the group and it's bounced a little bit harder because of their leverage to oil. >> let's talk about southwest airlines you've got a $60 price target on it, down from $64 about three weeks ago. and that stock over the past month has been sort of bucking the upward trend a little bit. is there something fundamentally at play there? >> i don't think it's fundamentals i do think it's about sort of calibrating expectations retative relative to what they told us. they gave us a heads up that costs were running higher into next year. i think that spooked folks, thinking they should do better on that metric we think they're set up for relatively easy content in the first half they told you they're going to be trying to offset that and we would not bet against that, but it could take a

quarter or two to start to develop there. >> you have outperform ratings on all of the ones i mentioned there, american, delta, and southwest. is there one that you think is better positioned than any of the others >> i think if we're in a good space on fuel, i would probably want to in the next three months be focused more on an american or a delta story united has had a tremendous run since the beginning of the year. that stock on a relative basis has outperformed american by a huge amount if you look at it on a 12 month basis so we think there is a catch up trade there in american. the watch out there is the amount of leverage they have when we stress tested our models we would need to see a deterioration of economic conditions, a global financial crisis, to really see them stress liquidity. >> you're not getting on a plane tonight, are you >> no, we're upper east side for the duration. >> stay there. take the subway.

david vernon, appreciate it. >> thanks, guys. yep, despite the recent sell off, investors have been buying up a number of restaurant stocks will the appetite for this sect sector continue? we're talking turkey wh e ceo of boston market that sounds delicious, i'm ravenous it's coming up on power lunch. so they say that some day ai will transform the human race. well, today you're a little busy transforming your call center.

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welcome back to power lunch. this is trading nation investors are feasting on fast food stocks amid the recent volatility they're outperforming over the past months. should you stick with these winners or fade the gains? gi je craig, it's interesting these companies are not categorized as consumer staples but it's almost as if the market treats them that way they do okay in most economic environments what do the charts tell you about whether in fact they can hold these gains >> mike, the charts still look constructive just before i came on air here, i had an opportunity to talk to

one of the top wall street analysts in the restaurant space, cole miller reagan who works at piper as i had a chat with her, she's making a bold call fundamentally. the charts support that. you've reserved the long term down trend off the 15 highs. it looks like we're setting ourselves up to test resistance at about the $500 level. a break above that we'll set ourselves up -- >> that's chipotle we're talking about? >> that's chipotle starbucks, the stock is overbought on the shorter term rsi indicatoindicator. it looks like it could pull down towards the $60 level and that would be a better entry point. i'm pass on the starbucks, but ordering up on chipotle right now. >> gina, any of these names seem like they could have win your backing right now? >> well, look, let's talk about just the broad industry in

general. what happens when the markets get really defensive is these do trade like staples as you mentioned. you'll see people sort of dump the really expensive restaurants and even kind of the mid casual dining also gets hurt as well. this low end becomes something you hide out end because you know that people can afford this stuff. now, i think that if you look at valuations, you know, chipotle is a stock that has been loved and its valuation reflects that. it's 75 times earnings but the expectations continue to be positive. so maybe you can continue to grow into that i think that's its achilles heel this sector in general, this low end sector and also just -- let's face it, starbucks is an addictive substance. of course people are going to continue to go to that despite the competition. so i think that this sector continues to perform if the markets are volatile >> all right customers can't do without this stuff.

maybe investors can't either gina and craig, thanks very much, appreciate it. for more trading nation head to our website or follow us on twitter @tradingnation. thanks, mike next on power lunch, a big rebound rally for oil today. we'll have the closing trades. plus, a lot of concerns about weakness in the housing market and as the most important month of the year begins for retailers, we'll talk with a mall operator about his company and how his company is trying to get people offline and into the stores power lunch will be right back

hello, everyone, i'm sue herrera, here's your cnbc news update heavy rain is forecast for northern california today, which will help firefighters battling

the camp fire. but officials are worried that the predicted eight inches of rain will trigger massive m mudslides. they're working against the clock to find the remains of victims. aaron rodgers, whose hometown is chico, california, is making a donation of one million dollars to help those impacted by the fires. renee lawrence, one of nine australians convicted of drug smuggling in 2005 was released today. two members of the bali 9 group was executed. mike am crone hmacron is reg he will lead the badgers for the last time on saturday. and move on opened its guilty pleasures food truck in d.c. to draw attention to the mueller investigation. there is free ice cream,

including a new flavor that they came up with, ivanka's butter e-mails pecan. or pecan, depending on how you say it that's the news update this hour guys, i'll send it back to you. tharlet's get a chance of t markets right now. the dow is higher by .7% or 170 points the s&p 500 up by 24 or almost a full percentage there. the nasdaq is up 1.6%. home builders are up for a second day here. taylor morrison and kb home are leading. casino stocks are higher as well they're all up 4%. malco up 7.4%. energy stocks up big as oil is rallying tyler? speaking of oil, the oil market is closing for the day. becky deangeles is at the commodity desk. >> a little bit less than a 2%

of pop in oil. it's a critical level in this oil trade right now. it doesn't mean that just because we got around that level before a holiday that oil is going to necessarily stay there. of course, that's what you need to focus on. look at tuesday. stocks pushed oil down that was the bottom line there the volatility is probably still here for quite some time the week after thanksgiving is relatively quiet after that, the week after that is the opec meeting. the president, of course, thanksithan thanking the saudis for low oil prices will he be doing it then we shall see. you may be focused on travel plans or getting the turkey prepped or whatever you're doing for the big day tomorrow, but here's a little reminder there are just 33 days left until christmas. as we head into the biggest shopping day of the year or thereabouts, the brick and mortar retailers are trying to solve what has become an annual riddle how do you get consumers off their computers or their smartphones and back into malls?

let's bring in nate forbes it's good to see you today, nate. >> thank you thank you for having me. >> e-commerce is forecast to jump this holiday season is that worrisome to you >> not at all. when you look at the total gross numbers, retail sales could trip $1 trillion during the holiday selling period still with all the online shopping, 87.5% of that trillion dollars will be done in brick and mortar business. >> you know, i go to a mall near my home that is sad and sorry. just storefront after storefront closed down, empty it's not a shopping experience that is fulfilling in any way, shape or form. i know that you guys are trying to do something different. tell me about this model you're

trying to set nationwide. >> you have to turn every upside down before you can turn it right-side up. that starts with best in class reda retail leasing, 45% to 50% of all our assets are unique retailers to the markets they serve. we have one of a kind retailers in our shopping centers. we start well before the holiday selling season doing community campaigns. we take our retailers into the streets, into the communities, into the hottest events around the communities throughout the year and bringing our brands and our retailers to the people. we can't expect just to open our curtains every day at 10:00 a.m. and the people are going to come through our doors like they used to we take our retailers through our summer pop ups in the detroit area or in orlando in and around the marketplace where we have an ongoing brand awareness campaign and we have to be brand after brand after brand and we have to

be consistent in our messaging throughout the entire selling season >> we're seeing video right now of one of the malls in miami i saw last year where you're actually bringing the residents to the mall. >> yeah, well in miami we're under construction right now as part of a mixed use project. it's a large mixed use project in downtown miami. everything is about making it seamless for the consumer. the consumer has become agnostic as to how they shop, whether they shop online or brick and mortar if you provide a great environment and great services for your customer, the social fabric of shopping has never left our consumers and we have to make it seamless to them and frictionless to them curb side delivery, deliveries to their home. we have to make it almost an environment of -- >> okay. so on this curb side delivery, though, does that negate the whole point of trying to get people into the mall >> they'll come to the mall, buy their stuff, they'll leave it at

the store. we'll pick up all your stuff we'll aggregate it together and have it available for you at the valet outside the shopping center at the curb when you're ready to leave the shopping center. >> you mentioned something that's of interest to me, and that's the idea of fusing a residential space where people live and shopping so that the residences may be contiguous to the shopping or above the shopping it's very convenient i've seen it in several places in the miami area, in naples is that part of the future of your company and of the retail world? >> well, i think what you're seeing in a lot of downtowns, and even in regional malls where we're repurposing department stores because of bankruptcies that have occurred in our space. in downtown spaces you have a lot of street retail and you're building vertical residential above them same is happening with repurposing of regional malls. you're seeing a lot of retailers go out and developers like us are repurposing these boxes into

a mix of uses making it almost an environment where people can live, work and play and have shopping at their doorstep. >> a very different experience than the mall i was describing to you nate forbes, thank you for joining us. happy thanksgiving new housing data out this morning shows that home sales maybe aren't as bad as many people thought diana, digging into those numbers. >> reporter: i wouldn't go that far. home sales in october moved higher compared with september, but we're down 5.1% compared with october of last year. that's the largest drop since the summer of 2014 but the bigger headline in today's report is prices the median price of an existing home in october was $255,400 still up 3.8% year over year but the smallest annual gain in over four years. over the past two years, we've

seen the gains in the 6% to 8% range. prices are clearly reacting to the recent surge in mortgage rates. redfin reported seeing one third of homes for sale with at least a drop of 1% now, the realtors are calling for the fed to slow its rate hikes to help ease the financial burden on potential first time buyers these record low interest rates we saw in the last couple of years are what allowed home prices to overheat so quickly in the first place. it's a tough argument to make. back to you guys >> all right, thank you so much. coming up, we chew on the health of the consumer with the ceo of boston market is she worried about an economic slowdown and she brought a thanksgiving feast. you might be surprised how many people get their turkeys to go wait until you hear how much business she expects to do over the next two days. atndhafet aadn

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thursday francis allen is the ceo of boston market. she took over in may of this year she was previously president of jack in the box, chief marketing officer with denny's you know a thing or two about the restaurants business how has boston market -- i know you're new there -- how has boston market sort of picked up business for thanksgiving grown over time? i think more and more people are going that way. >> you know, we talk about thanksgiving as being our super bowl because we do, we serve 20 times more people on thanksgiving day than we would do on a normal thursday that's a lot of incremental business to put through the restaurants. >> those are people coming into the restaurant, not pick up and take out >> whether catering or heat and serve. you can access thanksgiving -- we get thanksgiving dinners -- >> if i want to get a dinner for a dozen people, what's it cost >> it's about $120 it's about $10 a person.

roast turkey, banquet meal it comes to your house or you can come and pick it up. >> you're deliver it >> absolutely. >> is it sliced like this? this is beautifully plated food. do i have to cut the turkey? can i choose >> you can choose. you can absolutely choose. >> you can say here's the turkey and carve it as if it's yours. >> as though i did it, yes, exactly. >> we sell 21 million pounds of turkey and chicken over the holiday period it's quite phenomenal. when you put that into perspective, that's 30 boeing 747s that would fill. >> that's a lot of birds. >> we've seen with other restaurants like mcdonald's or chipotle that the mobile ordering has become an incrementable paincremen incrementab incrementabincremen incrementable growing part of the business. >> they are looking to have more meals served at home, they're looking to just cut out a lot of

the hassle factor. so we've got a mobile order app. you can order delivery through that we work with a number of different delivery partners. we've just added uber eats recently we believe that people want to use the app that they want to use. so we're just going to be available in any shape or form. >> are you seeing that the american consumer is flush with cash >> we've certainly not seen a slowdown this holiday period in fact, we're very encouraged with the results it does look like more and more people are saying why spend time in the kitchen over thanksgiving when i could be with the family connecting so more and more people are actually ordering in. >> outside of thanksgiving, what's the price point typically -- i lived on boston market when i was first out of college. you can buy a quarter chicken and two sides and i think it was

$9. $9.99. >> it's not a lot more than that now. we really are committed to providing alternative home meal solutions for people at an affordable price we try to keep our prices down as much as possible. >> in terms of changing tastes of consumers with a focus on fresh and healthy, maybe what you would make at home, this has always been on your menu have you had to change your menu at all to appeal to say, millenial tastes >> we've got some work to do i believe our food -- people think about our food at this time of year i want them thinking about it the whole year so that means more summer items, colder sides, lighter fare there's some work to be done there. >> are you finding competition from the likes of blue apron and hello fresh and those meal delivery kits? >> we're not seeing that at the moment we're seeing a real uptick in our delivery business. we're making it really easy for

people to have boston market food at home it's food everybody likes. we like to think about it as, you know, it's great way to get the kids around the table. you know, they can't -- they have to sit down and eat with a knife and fork with boston market food. >> my son would devour this. >> what's your go to plate if you were to put together a protein and sides? >> oh, i'm into the roast chicken. i just love the roast chicken. i love our creamed spinach and sweet corn that's my go to. >> you're obviously from britain. how do you feel about thanksgiving are you all in on that >> i'm all in. >> not that it's an anti-british holiday in any sense. >> i don't take it that way at all. i think it's fantastic i think it's a great time to reconnect with family and friends. great time to appreciate everything that we have. so i've gotten used to it over the 22 years i've lived here. >> july 4th is different thing

>> she's been hungry all show. >> there's a boston market near my hometown, so i'll be seeing you. >> we appreciate your business. >> happy thanksgiving. ceo of boston market. >> thank you very much happy thanksgiving to all of you. stocks are making a -- >> do you want me to -- >> stocks are making a comeback today as she eats stuffing it's been a miserable month and a half for markets how have the hedge funds been? we'll get the traders' take. that's next on power lunch. >> stuffing my face. (toni vo) 'twas the night before christma, and all thro' the house. not a creature was stirring, but everywhere else... there are performers, dancers, designers the dads and the drivers. there are doers of good and bringers of glee. this time of the year is so much more than a bow and a tree. (morgan vo) those who give their best, deserve the best. get up to a $1,000 credit on select models now during the season of audi sales event.

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from around the world. ( ♪ ) we even have live sports and news channels. ( ♪ ) and your free wi-fi will start shortly. enjoy your flight mr. jones. world's best inflight entertainment. fly emirates. fly better. when markets are going up, anyone can make money. it's in down time when the so-called professionals should outperform so how hadthe hedge funds doing in the two-month selloff? leseley picker joins us with that story how are they doing >> the answer in a few words, contessa not great. hedge fund returns have entered a vicious downward sector and that's how goldman sachs describes the recent performance. a basket of the most popular stocks held by hedge funds has lagged the s&p 500 by 725 basis

points, goldman says the firm says the average equity hedge fund is now down about 4% year to date much of those losses comes from market activity over the last two months hedge fund portfolios were tilted towards growth and momentum factors which eroded alpha's popular stock, alibaba and nxp. popular shorts didn't decline enough to stem the losses on the long side, and according to credit suisse's prime brokerage desk hedge funds have been participating in almost all of the downside in november, worse than the 80% in october. now that said, there doesn't really appear to be much in the way of unwinding by major hedge funds. market participants say that this week's selling appears to be mostly long only and passive funds, guys. thanks for that. >> stocks are trying to make a small dent in trying to recover recent losses. today's gains have pushed the s&p 500 and dow out of correction territory so are we

getting close to a bottom? our next guest says yes. joining us is managing director with kkm financial great to see you, dan. we haven't seen capitulation yet, have we did i miss it? >> well, you know, we might -- we might have seen it earlier actually the october selloff was a bit of a capitulation, particularly the early october selloff, the october 10th we did seem to get the new lows at the end of october, but i think we're kind of grinding here it's critical that we hold these levels, clarl with the s&p 500 holding above the 2600 level and to this point we've been able to maintain some semblance of order as far as when you see the market moves and see a 2% to --e a 1% to 2% move. >> when you take a look at this bounce is it convincing in any way? >> well, the volumes aren't necessarily helping to support the bounce, but i think from a psychological standpoint, i think if we go into the holidays and the market has a chance and

the hate verse a chance to digest this, maybe we'll see some more upside but really the foucs is on the g-20 meeting next week so, again, the market has been able to hold this bottom end of the range. haven't seen volatility explode to this point. the moves have been fairly orderly to this point, and that's another reason why you haven't seen what you would point out as a capitulation. >> what's your outlook on the oil market >> i think, you know, i think as we grind through this, would i think that we're close to a bottom here. it's a 10% correct the market is overdue for some of the growth stocks, particularly needed to come back to earth, but we're seeing some buying going on down here, and as long as we can maintain this technical level and not take out this 2600 low when i look at the s&p, that might be a flag for a little bit lower, but ultimately it looks like most of the major a. are maintaining the lower levels that they saw at the end of october. >> dan, you mentioned the 2600 level is being a level we've defended on the s&p with next week being a much heavier news flow week, a full trading week everybody is back from thanksgiving they have eaten their stuffing

and what not what are the levels to look for if we break 26 does that mean february lows are back in play >> yeah, and then you have to look at 26 or 2550 one thing as you pointed out when you look at the nasdaq, the nasdaq did break, you know, those october lows yesterday, so that's kind of a copy of again those little growth names that needed to have a little bit more air come out of them than relative to the rest of the market when you look at the industrials, the dow holding up to the rest of the major averages i think, you know, three out of four major averages that we follow are holding the end and the nasdaq is bouncing back above 7,000 so i think it's critical if we hold here, see critical averages particularly in the s&p and dow then we might get another leg lower. >> dan, great to speak with you. thank you. >> thanks for having me. >> dan deming, kkm. >> and check, please, the bill for all the turkey we just said. let's begin. yes or no?

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watch what's going to happen wednesday. fed chair. >> i always love those minutes thursday kicks off the g-20. that's going to be a big one

down in bayers -- down in buenos aires. everyone is watching what happens between the president and mr. xi and thursday we get another reading of inflation with the pce deflator, am i right? >> yes. >> but that could be really a binary event the g-20 and whether or not there's some sort of indication that there's progress in the trade war talks. >> and you hope maybe they come out with something or is sometimes the case >> i looked there at the small caps, take a look at the russell 2000 and the srp 500 which is up by .8% and small caps are doing better than big caps, and the stats up to me earlier from peter boockvar who said 40% of russell 2000 companies have floating rate debt meaning the rates go higher. their debt payments are going to cost more to them, so that has been a stock that has been really beaten down and in this

bounce back we've seen them really bounce back pretty nicely so far. >> and i'm just looking at our note here from morgan stanley on u.s. economics they are expecting consumer confidence to soften just slightly in november looking at new home sales that have fallen four consecutive months, and yet what we're hearing from retailers is there's a very optimistic outlook for the holiday season ahead but we'll have to see if that holds through you all have a great thanksgiving. >> "closing bell" starts right now. happy thanksgiving happy thanksgiving to you. a very warm welcome to "closing bell." good afternoon i'm wilfred frost. >> i'm sara eisen in for kelly evans, a positive market day, the dow and s&p higher for three days up 0.6% on the dow, a little bit more in the other indices. >> despite the carnage of the past two days all thre