it's easy to contaminate good paper. >> all right have a good holiday season that does it for the exchange. power lunch begins right now you can bet i'm looking forward to that. here is what's new at 2:00 on power lunch. a blockbuster jobs report setting the market on fire trade, recession fears evaporate right before our eyes. is this as good as it gets? mcdonald's is about to take the chicken crown. later the road to $500 we'll tell you why one top analyst thinks tesla could be about to rev up big time power lunch starts right now

take a look at the markets the dow is up. erasing losses earlier this week to tyler now >> let's get more on today's job induced rallies. >> wernl a risk on tone to today's market as investors shift their focus from that weaker than expected manufacturing port earlier and focus on jobs report sentiment highlighting the resilience in the u.s. economy plus optimism building around a trade deal being reached before the december 15th deadline after china said it would avoid tariffs on some imports of u.s.

soybeans the industrial giant is looking to sell a $1 billion of its drug delivery system. that's a report from bloomberg the stock is at session highs. this rebound has extended into small caps which tend to move on upbeat economic data the stock at the top is ulta ulta higher on earnings. the company is getting much better at containing costs stock up 12% back to you. >> thank you for that. 266,000 jobs added the lowest unemployment rate in 50 years steve joins us now >> say it again. how many jobs?

>> 50. >> that's a big number outside jobs numbers suggesting the economic slowdown that we mostly forecast in the fourth quarter would be exaggerated barkley saying this is another reassuring sign. here are the skbrjobs >> 266,000 >> look at the estimate, that's a big beat there. unemployment rate very tight down 3.5%. just in time for christmas

a new index launching today suggesting that job quality has been and remains low the job quality index is a venture between public academic and non-profit institutions. you can see it's been trending down since 2017. pop up in 2017 also by the way just before the 2008 recession it might help explain why low wage growth and a very tight labor market i'm on the oechbedge of my seat. we have a guy that can explain this to us it's an economic mystery that's been out >> we're going to bring him in stay right here. let's bring in the co-architect and author of that job quality index that steve just referred

to dan, welcome good to have you with us explain it to us does it embrace not just wages but when you compare low quality versus high quality but hour s worth. i suspect a lot of the jobs are low hours in addition to low wage >> i think you hit the nail right on the head. this is tracking income. that's a function of wages a and how it works the main change we have seen is a decline in hours work among low wage workers that's impacted people even more unfortunately, the majority of jobs been created over the last 10 or 15 years have been in this >> our employers gaming the

system to keep workers below a level at which they would otherwise have to pay benefits or be subject to certain regulations that might not obtain if they kept the hours work at 20 >> there's not a lot of evidence of this being benefit driven people are working these strange work schedules so strange they are unable to hold two jobs because they don't know whether to be working in first job. >> my son is in exactly that position he's working short hour job but they'll tell him on sunday what his schedule is for the next four or five days so he can't really go out and commit to a second job >> obviously just in time labor

is a big part of it but it's also the fact there is an underemployment of the american people you have more people than there are jobs nowith standing the low unemployment rate. we're in a tight mark. 're not seeing the rotation from the type of low wage, low hour jobs we would have at the recovery into higher wage, higher hour position that pivot hasn't happened >> we want to broaden out the conversation a bet he's a keptic of this report rally. it's good to see you today what about this index and the results speaks to what you've been trying to say about the broader economy, david >> right the cheer -- nobody talked about 83 the survey showed 83,000 jobs.

only 17,000 of those 83,000 jobs created a survey last month for some full-time employment. it's rather remarkable and helps explain why average earnings are so weak because it's an average number these are hospitality now. these people make 40% less than everybody else in the economy does there's in hotels or fast food restaurants.

it's very concentrated >> i want to make a political point which is in each of the past -- in the current administration and the past administration, when there were strong job growth under obama, the republicans said yeah but it's low quality then you have some of the democrats saying yeah but it's low quality. it turns out both sides are right. they are right at different times because they are saying it for different reasons. this index shows low quality job growth under both administrations. you had a ramp up at the end of the obama administration and a come down during the trump administration any particular industries where

it's responsible >> there's four industries to look at. if you look at the gains they offset the losses. >> when you have a lot of job growth in those sectors that keeps the index down >> it keeps the index down but it's also the point of absorption we have hit peak service one of the things that happened that people aren't aware of, we had gains in the service economy all along from the 1960s through today. at the point of the great recession the size of the service economy stopped growing. >> it's still 83%. >> i want to do what to do with this idea. >> indulge me a question if i might and that is this the facts that you cited in your

first answer, dave, and the numbers we have been talking b about here do they point to recession or do they point more to an economy that is in a massive mega transition away from certain kinds of jobs and toward others but does not necessarily mean that the economy is going to recess >> this is ongoing transition that we're seeing. i'm taking a look at the sensitive sectors of the payroll numbers. i'm looking at retail, construction i'm looking at durable goods manufacturing. i'm not looking at the sectors that never go down there are some areas that never

go down. the seg ms of the employment report actually were stagnant. that's an early sign for me. you can blankly look at the headline number and draw your conclusions. it had a lot of tail winds a five week interval not a four week late thanksgiving if you're buying the number then you have to believe productivity is contracting again the gdp estimate went up

it's barely 1% growth. it's 2%. we already had surprisingly a negative productivity print. if you believe today's number, productivity is going down again. there is a recession as you sit here now >> this is a conversation that we could have for much, much longer appreciate the insight for the bond market reaction to that jobs market report and some reaction to ha what we just discussed, rick is ready >> david rosenburg has been one of my favorites for many years a smart man. he's been mostly bearish and

he's been riepgt ght on the dirn of fundamentals. look at it in today of tens. it was a rocket ship like the whole curve was. all of a sudden we went back on change curve steepening was two up on the day. has a dozen on the week of tens. it's still little heavy considering how it shot up the short end is pegged by the short paws you look at a november 10 you can see highest numbers on the closing basis. tyler, back to you coming up, fast food chains

involved in a high stakes game of chicken over sandwich offerings. can a new contender emerge to rule them all. we'll talk to man who he has he's eaten more fast food chickchic chicken sandwiches than a human being should be allowed to the food fight takes a new twist. we'll have those details coming up light here on power lunch

welcome back the fight is onto win this game of chicken mcdonald's hatching its on sandwich to compete with the growing competition. with such a crowded field, who will rule the roost? >> had to go there >> which came first, the chicken or the egg mcdonald's new product will be a big hit for the chain. bob, nice to talk to you you've tasted this new offering. did mcdonald's really need a new offering they've had a chicken sandwich on the menu for as long as i've been alive >> yes, they did they clearly lost market share in the chicken category this past quarter by the company's own add mission they needed to improve it. mcdonald's franchisees have been

clamoring for a new product. i think they got close this past spring they asked for a female improvements it's a much better product than the current product on the men you and i think it will be a much better product by which they can compete within this category >> i want to get to the revenue and why this is important. reading your note, i was really surprised how much power and influence the franchisees have over ingredients >> you know, i'm not surprised quite frankly. these people put their money on the line they are extremely opinionated to be fair the mcdonald's group are typically well capitalized these are smart business people who have done a really good job growing their business i think they clearly want to have a say

that's one thing management recognized >> if you're right and if mcdonald's can beat out chick-fil-a, is this important in any way shape or form to the overall revenues for mcdonald's? >> yes, it absolutely is to be fair, they're not going beat out chick-fil-a they will not beat out popeyes but they are taking a product on their menu, improving it and making it a much better tool by which theycan grow their sale s and traffic trends i think the product will be a very good success compared to what their previous product has done the buttermilk crispy chicken has done well for the company in recent years however, the competition continues to raise the game. i think mcdonald's knows they, too, need to improve their product, which they have done. >> can you put numbers on the percent of revenue or food

product that's derived from chicken at mcdonald's and how you think that might change as a result of this product do you think of them as a hamburger purveyor >> yeah, modelling same store sales up 3.7%. of that 3.7%, a lot of that will come through menu mix and price. greater level of chicken sales versus less sales as last year, i wouldn't be a bit surprised if it added 2 to 300 basis points to comps depending on how successful they are. >> everybody wants to know what did you like about mcdonald's new chicken sandwich >> to be fair, it's hard to find fault with a really good fried chicken sandwich i think popeyes is a very good product. i think chick fi-fil-a is a good product. i think mcdonald's is right in

trying to replicate the recipe for their consumers. i like the taste i like the lower level of breading versus popeyes. >> but can you tweet it? one of the reasons why this got to be such a hot thing is you had chick-fil-a and popeye's fans going at it who's going to do that for mcdonald's >> mcdonald's is giving the tool to the franchisee. they need to execute at the store level and communicate that to the consumer and convince them to come in versus going to those other brands that's going to be no small challenge. >> can they cook the sandwiches in the same equipment they have in. >> to be fair they wouldn't let me anywhere near their kitchen i know chick-fil-a uses 100%

refined peanut oil in producing their sandwiches i don't know whether mcdonald's does or not. >> all right the pictures are beautiful you could have been a food photographer there too >> thank you my pleasure. tesla shares rising one top analyst says 500 could be the next stop for the stock our traders will weigh in. we're seeing a broad rally for the major averages today after the stronger than expected jobs report power lunch will be right back

through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best... to managing your fleet... to collaborating remotely with your teams. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. woman: friction points, those obstacles that limit a company's growth. i try to find companies that turn these challenges into opportunities. but by going out in the field, and meeting management, suppliers, competitors. in the end, it's these unique companies

with creative business models that will generate value for our investors. that's why i go beyond the numbers. i wouldn't be here if i thought reverse mortgages,s. took advantage of any american senior, or worse, that it was some way to take your home. learn how homeowners are strategically using a reverse mortgage loan to cover expenses, pay for healthcare, preserve your portfolio and so much more. a reverse mortgage loan isn't some kind of trick to take your home. it's a loan, like any other. big difference is how you pay it back. find out how reverse mortgages really work with aag's free, no-obligation reverse mortgage guide. with a reverse mortgage, you can pay whatever you can, when it works for you, or, you can wait, and pay it off in one lump sum when you leave your home. discover the option that's best for you. call today and find out more. i'm proud to be a part of aag,

i trust em, i think you can too. welcome back tesla popping today after morga stanley bumped its target on cyber shares after a sizzling three months is there any more gas in tesla's tank or maybe charge in its battery? as we mentioned had a very good

run. this is a stock that goes on streaks and kind of obeys a bigger trading range how do you see it from here? >> that's right. this stock is extremely susceptible to these large swings last june the stock was cut in half it was on multiyear support. since then the stock doubled from this position it will be difficult to get there i would rather exercise some patience that will be a better tactical buying opportunity >> i guess this bigger picture on the tesla story just when you thought it was going be about blocking and tackling and model three, elon musk creates this whole new hype cycle around the truck how do you see it here

>> i think that tesla is a faith stock. many investors in tesla are really, really sort of look at the real long term vision of this and willing to seemingly suffer a lot of pull backs that happened in the interim. six months ago we were worried about production this company still has issues. it still has to block and tackle and meet the requirements to maintain the story >> all right still a $60 billion market value. thank you very much. for more trading nation head to our website or follow us on twitter. back over to you ahead, the mentalist

pearlman will join us. he'll explain why he will win the 2019 cnbc stock grab does he have the magic to win it plus papa don't breapreach be company continuing his att k attacks. are voters happy with the economy under president trump? our panel will debate all of this when power lunch returns.

step up, please. empty your pockets. looks like you're all set for that business trip. you've got your smartphone, laptop, your other smartphone... woman: is this all the devices you have? your tablet... seriously? smartwatch, your backup tablet, and... woman: anything else in your bag? ...whatever that is. (beeping) this isn't working. introducing samsung mobile workspace solutions. with the galaxy note10 with dex software, you can run your entire business on the one device that does it all. samsung business solutions.

welcome back house democrat s repeating thei commitment to combat global warming despite trump's decision to withdraw from the paris climate accord nancy pelosi said she is looking forward to the meeting which will focus on the crisis >> the white house said when we have the g-7 here we won't be talking about climate. hopefully we can change the political climate of all of that between now and then and that they will. it's an issue they cannot avoid. the u.p.s. truck at the center of a deadly chase and shoot out in miami on thursday has been removed from the scene. two men had carjacked the truck with the driver inside while fleeing an armed robbery four people including the uc.p.s driver were killed in the shoot

out. a london company is hoping to help the planet by changing the shape oiff its wine bottle. they have flattened the bottle in a move that's more environment talal in a move that's more environment talaly friendly and lowers shipping cost it uses 100% recycled plastic. that's a novel approach. back to you. let's take a look at the markets now. all in the green the dow is up big time 338 points more than a percent now. s&p 500 is up a percent. john harwood spoke to the former vice president about that. tell us what you learned >> one thing that's not in former vice president joe biden's tax plan is a wealth tax

which is supported by his challengers from the left, bernie sanders and elizabeth warren he told me he doesn't want a tax to single out one small group of people but he does want to tax a particular type of activity and that's financial transactions. >> is there certain things that you have to right the market a little bit here and the market is that if you have all of the tax breaks, essentially, all the tax breaks, all of the benefits flowing from the top there's never been as great concentrate of wealth including going back to the great depression, ever. one of the things that worries me most about that is not just the economic impact on people who are hard, the middle class is getting killed. >> treasury secretary mnuchin said he poopposed the tax.

is that why you jerejected that id idea >> no. i think we should have a financial transaction tax. >> reporter: joe biden says he fears the president who succeeds donald trump will inherit a slowing economy or even an economic recession he wants that to be him. that's why he spent the last eight days on a bus tour here in rural iowa >> thank you very much joe biden campaigning on the platform that trump's policies haven't grown the economy but we did get a gang buster's job report this morning. the unploim rate is coming down a full percentage point in pennsylvania, michigan, ohio and a half point in wisconsin since november of 2016 is that job growth enough to deliver trump a win in these

crucial states let's plibring in our friday's panel. welcome back good to have you with us >> the numbers this morning were pretty encouraging it's person points in the jobs report you can pick it apart and say it's not as good looking as it was overall you would have to say that unemployment at a 50-year low is a good thing. this is a continuation of the expansion and the job growth that began a decade ago and it continues and we've seen it accelerate we have seen it decelerate this is a month of acceleration. the jobs don't pay the same time

of wages as the prerecessi-recen jobs a feeling that paycheck doesn't get them what they need to be able to live the quality of life they want. we debated whether the jobs, we looked at high quality versus low quality jobs and the c consensus is it's a combination of growth in lower wage jobs and jobs that don't have full-time hours attached to them let's look in the swing states if we might for a minute i'd like to get your reaction to this unemployment rate is lower in the states that carried president trump into the white house, pennsylvania, michigan, wisconsin and ohio in each of those states, mr. trump trails joe biden in the real clear politics average

polls by something like 7 percentage points. he also trails miss warren and sanders in those states. is a good economy not redownsin to the president's benefit >> i think that the president will benefit from these consistently strong numbers. even if the wages are only ticking up on the lower side of the ledger, remember the president does extraordinarily well with non-college educated groups these will be the folks that are experiencing some up tick in their income this is a good thing for donald trump >> these states have lowered

their unemployment rates and yet it remains higher than average when you're looking at these voters who so significantly supported trump in 2016, we're talking about the farmers and the cold miners out there, do economic issues drive their vote or are these other issues that they are going to the polls about? >> economic issues do drive the vote but they care about tone and donald trump has been very, very convincing to folks in ohio and pennsylvania, wisconsin and michigan by saying i'm fighting for you. i'm the guy that fighting for you and you need to continue to hang in there with me. i'm the one fieging these trade wars there may be some short term pain but long term gain in you stick with me. i think that message will rez nats with voters in 2020

i'm not too worried he's lagging behind now >> in 2016, president trump targeted the voters that joe just accurately described. the disaffected people who felt alienated from the economy they felt like the left behind, the forgotten man or women in decaying cities in the heart land and so forth. it would seem to me these are the absolute target voters who are democratic candidates this time around. mr. sanders, senator warren, mr. biden, buttigieg are all targeting that disaffected person >> three of them lead donald trump. in ohio his approval rating is down 19% 17% in pennsylvania, 20% in wisconsin, 22% in michigan these are stunning numbers

he's under water from where he was in the 2016 election what that tells me is the economy is not the driver. it's his rhetoric. it's his leadership tistyle. it's his effort to cancel the health care plan it's a wide range of issues and voters are not looking at the economy and saying we'll give the president credit because it's a continue situation of what began under obama these under water numbers for the president in these states are tremendous challenge these are double digits near 20%. your down from where you were in 2016 and only 2016 you were only a point ahead. this may be an election where the economic issues are not going be the soul driver for many americans including americans in many of those swing states >> all right we have to leave it there. have a great weekend >> go lsu. >> you bet

the man who is the john in papa john's continuing his fight against the company he founded we'll have the latest on the rather sticky situation. a big day for the dow up 30 point p ints we have much more on the markets. stay with us so what are you working on? >>i'm searching for info on options trading, and look, it feels like i'm just wasting time. wasted time is wasted opportunity. >>exactly. that's why td ameritrade designed a first-of-its-kind, personalized education center. see, you just >>oh, this is easy. yeah, and that's >>oh, just what i need. courses on options trading, webcasts, tutorials. yeah. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter,

so do its recommendations. >>so it's like my streaming service. well exactly. well except now, you're binge learning. >>oh, i like that. thank you, i just came up with that. >>you're funny. learn fast with the td ameritrade education center. call 866-296-7451 or visit tdameritrade.com/learn. get started today, and for a limited time, get up to $800 when you open and fund an account. that's 866-296-7451, or tdameritrade.com/learn. ♪

when we last saw the founder of papa johns he said he had eaten 40 pizzas in 30 days and he promised day of reckoning now he is filing a lawsuit over his outster from the company it's become rather a soap opera. >> this goes back to a conference call. he said a racial slur. he said a recording was leaked to forbes waand led to his outi. it will give additional context to what he said. in comments just in his attorney confirmed that they do have a copy of the reporting and said dwo quote he just want a truthful

accounting of what happened and something he said in a private business meeting ending up in for forbes yesterday his wife filed for divorce. just last week gave an interview in which he said he ate 40 pizzas in 30 days criticizing the recipe since the departure last year. the new ceo says that recipe and the ingredients are the same but he's suing the company that they placed the call with he alleges they leaked the recording. >> why is he suing now >> the timing is interesting he had two previous lawsuits against papa johns and the board. he got some documents he wanted. i'm not quite sure why not we haven't been able to get an answer for that. >> what is he suing for in. >> unspecified damages he said he will donate it to a charity. he want a trial in front of a

jury >> it doesn't say i want my job back >> no. when i did ask him last year at one of his court case, i said are you trying to come back as ceo. he said that's not what i'm trying to do he clearly still wants to be involved in some capacity. >> 40 pizzas in 30 days. >> can you do it >> no. i love pizza >> me too. coming up, a check on the 2019 stock grab thanks to bitcoin. now nick the kick has recently passed him is there a trick up his sleeve we'll find out next on "power lunch. memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

[maniacal laughter] gold. gold! right, uh...thank you, for that, bob. but i think it's time we go with gbtc. it's bitcoin exposure through a traditional investment account. nice rock. it's time to drop gold. go digital. go grayscale.

yeah, good one wow. 88 in the marathon >> new york city marathon. >> i'll tell you who i'm talking to in a minute the race has tightened over the last few weeks the reigning champ, nick lowery, has taken the lead from wall street medalist os pearlman.

pearlman had been leading up until bitcoin. will he reclaim the lead 88th in the marathon pretty good. amazing. >> new york city >> not what we're here to talk about. >> bitcoin had been powering your portfolio until recently? you think it will come back? >> no doubt in my mind we know one thing, the stock draft is b about asymmetrical bets it's coming up in may. bitcoin can go gang busters. we're hit iting five digits befr this thing ends. i will run away with it in january. >> the other two, disney and goldman sachs. both are up, nowhere near as much as bitcoin. >> agreed. but disney, they rolled out the streaming service. i think we did well with that. subscriptions are looking good content is phenomenal. i don't want any duds. all winners and bitcoin going to

be my grand slam home run. >> but there's been other stocks would you have put it in something else if you had an option now u >> i wanted to pad it gocht for it where again, i think that this is one not by doipg the safe picks the safe picks will get you fourth place i don't want fourth place. i want number one, that trophy and quite frankly, you got to go big or home when it comes to stock draft. >> bitcoin was a gamble. we'll see if it works out. now it wasn't be a segment unless you didn't dazzle us. >> let me tell you why it's an edge that i've got >> oh, i believe that. >> what do you think every single viewer at home wants the same thing buy low, sell high that's the name f the game, right? how do you valuate an asset? i'm talking money. not playing around how about this let's invent something this is not a real thing because you know stocks inside and out i'm making up a company.

x, yz corporations ch i don't know what they did you've got a better name what's on the tip of your tongue what are we naming it? >> electric asset. >> like it. we've done our homework. looked at pe ratios day one, ipo, tyler, it's as if you have a crystal ball. i think i know what that first share is trade iing at hit me how much cash is it trading for? >> 162 >> $162. >> that's the opening price. nobody could have known it not an insider only in your mind. that's my edge money. $162 honestly no no 20, 40, 60, 80, 100155, 160. 16

you could have thought of any number hold up. but that's looking at numbers. there's a creativity involved in picking stocks that you can't -- >> we didn't coordinate this electric asset how many other names popped in your mind? >> a million but that's the thing that's why i'm going to win this because i know what you're thinking before you do take a look, contessa. just for you electric that right there is electric and you heard it asset. >> that is truly amazing >> if you can get high eer and lower, you will see these bills. >> electric asset. >> oh my gosh. >> that is really something. >> and tyler is checking his wallet because he thinks i took all this money from him. where's my wallet, my watch. it's still there >> and right now because i'm so stupid, i'm just going to take away the et.

that's how i feel there. >> don't send this to the fcc. yes. thank you very much. i look forward to seeing you get out of here. give me a piece. i'll do an early round >> good luck, man. >> the draft ends on the market close on friday, january 31st. we'll have the winner here on "power lunch" on monday, february 3rd i'm going to pick up an a right here >> taking a c. i got c notes all the time that's what i'm looking to make. >> all right, a big day for the markets right now the s&p 500 is up much more on this rally coming uonpor ncp "weluh. at leaf blowers. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice.

but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today. there are things we would change about work.art trading and there are things we wouldn't. ♪ when work is worth it. work is worth it. work can be closer to home... pay more... make us proud. careerbuilder. work can work. find your work at careerbuilder.com

utilities is on the board here we've seen what this means for the strength of the consumer >> utilities were higher earlier in the week when there was a risk off play and today it is back risk on in a big way. as the jobs number comes in. the s&p 500 close once again to record territory on the session. as people sort of put aside their trade worries and their economic worries such as they have them and go back into what are known as risk assets nice gain.

one and a quarter percent. >> thank you so much for watching "power lunch. >> and closing bell, we're going to turn it over to closing bell we hope they're ready. have a great weekend, everybody. >> we are ready. welcome to the closing bell. as mentioned, we got a rally on wall street. major averages higher by about a percent. we're going to see if we can hit those record highs brushing off the warning signs we saw about 59 minutes left to trade to see if we can hit those highs. >> this rally sparked by better than expected jobs report. the u.s. economy added 266,000 jobs in november larry kudlow tells cnbc that intense trade talks are ongoing and china confirmed it will waive impo