because he said it's against the self-interest of the american companies who are investing in the first place. those are the companies that are going to crack your own encryption in a couple years time he said people need to be thinking in those terms. >> big story eamon javers, appreciate it. we'll see you tomorrow that does it for us here on the exchange i'll see you on fast minoney at 5:00 p.m., but "power lunch" starts right now ♪ all right, good afternoon, everybody, and welcome to "power lunch. i'm tyler mathisen along with con at the contessa brewer, the dow back over 30,000. how about that earnings season, so far, not turning out as bad as expected bank of america reporting better-than-expected results, the stock higher by 5% the company's ceo, brian moynihan, is about to join us. plus, china communist party

national congress taking place, xi jinping laying out aggressive targets for economic growth. would those ambitions have to come at the expense of u.s. technology what it all means for u.s.-china relations, contessa. >> good to see you, everybody. stocks starting this week again with strong gains. tyler mentioned the dow is back above the 30,000 mark, up 2.1%, s&p 500 up 2.85% right now and the nasdaq composite, the big winner today, up 3.5%. financials among the leaders helped by those bank of america earnings bank of new york also up 5%. right now, 5.5% following their strong results software names among the best performers in the nasdaq 100 you've got okta -- wait. here are the casinos right now caesars up 7%, draft kings, the same those coming off the conferences with some big gains. we were there last week, tyler, and the takeaway, much more

optimistic than what a lot of investors had predicted. >> look the a those gains today on a green day for the markets contessa, thank you. bank of america helping to spark today's market rally, beating estimates on some key numbers, including net interest income, which means the bank is making more money thanks to rising interest rates for more on the company's quarter, let's bring in bank of america's ceo along with our sara eisen sara and brian >> thank you very much, tyler, and brian, good afternoon, thank you for joining us fresh off these results that the market appears to like very much, stock's up 6.3%. how much of a driver do you think rising rates are for your business right now >> well, sara, thank you for having us. at the end of the day, the banks make more than half their money through the balance sheet, and that's the difference between the spreads we lend money at and pay our depositors and as rates rise up, our zero interest deposits, which are a core part of our franchise, obviously

become more valuable that's where you saw the strong gain in niaa, not only year over year, but also late quarter, up over a billion-plus, and that's the earnings power coming back as the rate structure comes off the floor it was at for a couple years during the pandemic. >> yeah, that guidance, people appear to like as well what level of rates do you need to see, brian, to get expanding operating leverage and margins >> well, the level of rates is going to be determined by what the fed's doing to take out monetary combination, so you have to back up and we're working against an economy which is still solid now in terms of customer activity and what we're seeing, but our experts in our research team, who often appear on your show, have the third quarter still positive they had the third quarter, next year's all slightly negative, and it comes back to positive. and that -- they have a rate structure that gets up to about 5%, so we don't need a rate

structure. we're in this money today with the current rate structure and some of that's still to kick in. if the rate structure's there because inflation's gone too far and they can't get it under control, that has other issues on the balance sheet so you got to be careful what you wish for in the world that we're in, in financial services, so our job is to be prepared for everything, but the good news is the consumers and the commercial activity remains very solid deep into the -- deep in the post-pandemic era. >> no, i think your comments on the consumer are really important, brian, and they stand in contrast to what it feels like following the markets lately and in other industries so, what are you seeing right now that's giving you so much confidence to talk about a strong consumer? >> so, if we back up, we have 60 million consumer households. we have 35 million americans core checking accounts where the money comes in from getting paid and they distribute to pay their bills. we have 35 million-plus credit cards and all the other things that come with that. if you look at that spending for the third quarter of 2022 versus

the third quarter of 2021, it was up about 10% and transactions were up 5.5% or so. as we look at the first couple weeks of october, it's still up 10%. that's a tale, a little bit, you got to be careful because earlier in the year , it was growing faster and as the environments change, they've slowed down a little bit, but still much faster. so, if you think about 2017 or '18, it might have gone up 5 or 6%, it's still growing faster. number one, they're spending number two, they have as much money in their accounts today as they did at the end of september as they did at the end of august and that's interesting because most people believe they're spending it down, and you don't see that yet is there stress for certain consumers out there? no question. but their account balances at bank of america continue to be flat august to september for cohorts that had $2,000 to $5,000 before the pandemic, an average of $3,400, they're sitting with $13,000 in the account and it's not going down.

that means they have money to spend, and then on top of that, they're employed and you can see the unemployment numbers are low, so put that all together, the current environment of consumers is quite good and strong when you go to the credit side of it, they have plenty of credit availability and our chargeoffs are still way below where they were pre-pandemic but if you look at the averages across the last 30 years, they're still below that the consumers are paying their bills. that's sort of basic stuff where it goes in the future, we're not reflecting on today as much as talking about what we see today and any given commercial, it's the same. chargeoffs, low in commercial, continued improvement, and reserve, criticize loans or nonperformers, all good stuff because the environment's still strong and now, are we dealing with issues all over the place absolutely are we dealing with a higher rate structure that's what the fed's trying to do but right now as you see the third quarter, the consumer's hanging in there >> it's just interesting because you're counterpart at jpmorgan, jamie dimon, says we're headed

for a hurricane, and even your stock is down almost as much as the market before today, it was down more than the market, on worries about the credit cycle and the economy, so it feels like even though what you're saying is good now, a lot worse is to come, potentially into next year >> yeah, but sara, our reserves that we put up this quarter are built on a 5% unemployment in the fourth quarter of '22 in a 5.5% unemployment all during '23. that's how conservative. we put up those reserves already. the idea is the way the rules work and accounting works, you're putting up based on scenarios, and our scenario is weighted 40% to very adverse scenarios that have high unemployment and high inflation built in when you average those together, the reserve is built on 5.5% unemployment so we're prepared for the hurricane, whatever happens next, but we did that by what we call responsive growth across the last decade so, how we distribute between commercial lending and consumer lending, how we built capital,

how we built reserves, how we have in the commercial ending, real estate exposure, all that stuff. so that's how you build a company durable and i think the banking industry overall is very durable right now. you've seen it in some interesting times over the last 24, 36 months but the durability is supplied and that's what's unique about the u.s we have a durable, strong banking system, which is a buffer to some of these things that could go wrong, and they may go wrong and they will go wrong, but the reality is we all start from a pretty good place >> you don't deny there's a hurricane coming, as jamie dimon predicts >> i start off by saying, our core estimates are negative gdp growth for the fourth quarter, first quarter, second quarter, and third quarter, but it's a modest shallow and comes out toward the end of next year accompanied by 5.5% unemployment that's what we built the company to sustain and today we put up $7 billion plus in earnings, so the environment is manageable if you are wise how you manage it we're always prepared for the next thing, hopefully, and we continue to ask ourselves that question every day

>> what do you think about loan growth how much longer can we actually see growth here? from consumers and commercial? >> well, we saw this quarter because the stress test results that you have reported on and a surprise embedded this them. we tamped the brakes on some loan growth because we had to get our capital back up and now we have capital at the end of the third quarter equal to what we need the first quarter of '24, so now we're in great shape and we're going to drive through that so we can open the thing. you're seeing strong loan growth year over year, 12, 15, those types of numbers it's going to be more in line with single digits we have had, and if you look at it, the originations, and and we put that in the earnings o originations, the fico scores are 760, the loan value on the mortgage side is low we are orj originating strong credit and will continue to do that if the demand going to change if we get a more recessionary

environment, which is what our economists predict you're going to see loan demand shift down a little bit, but that's already happened to some degree as line usage came down a little bit this quarter, but our job at bank of america is to drive through that, get new clients and get more done with them under responsible growth. >> so, as you mentioned, clearly, the regulators are making you hold back more capital, like what we're seeing with jpmorgan and others do you have any timing on that to hold the timing of holding back buybacks and dividends and that use of cash, given some of the regulatory requirements? >> we bought back shares this quarter. i mean, third quarter, and we'll plan to buy back shares in the fourth quarter because we're already at the levels we need for the first quarter of 2024, so not only did we absorb the stress capital buffer results, we've also put up enough buffer this quarter against a requirement beginning in 2024. we don't need to build any capital. we are going to -- this quarter, we bought back shares and we'll continue -- meaning, third quarter, and we'll buy in the

fourth quarter and continue to buy it back, but all our capital first uses support, the organic growth of our clients and their efforts and then we use it to pay dividends and then we use it to buy back stock, and we're already doing that this isn't like we have to build anything we're past the minimums we need in the future and frankly, those minimums shouldn't change. >> brian moynihan, thank you so much for taking the time today on earnings day. appreciate the conversation. >> thank you ceo of bank of america, with the stock up about 6% on those better results >> all right, sara, thank you very much. thank you very much for bringing mr. moynihan to us, sara eisen we appreciate it to react to what we just heard from the bank of america ceo, brian moynihan, let's bring in david conrad, large cap bank analyst with kbw, a stifel company. the most important thing i heard there, apart from a blizzard of numbers, amazing guy has so much stuff in his head, was that he is predicting negative gdp for

four consecutive quarters. this quarter, the first three of next year. and unemployment at 5% what is your reaction to that? and what is your reaction to the idea that he has that we're going to be able to manage through that and make nice money along the way? >> yeah, i don't think that forecast is too far out of bounds i mean, i think we, you know, the fed has raised rates so quickly. we still have to kind of digest it in the economy, so you would expect, you know, going into next year, a meaningful downturn and slowdown in the economy. i think what's interesting about bank of america, though, is i do think they can weather that. brian has done an excellent job since the great financial crisis of really derisking bank of america, so we view them as really one of the highest credit quality banks, and so you know, i think in terms of concerns that investors may have on credit quality, i think bank of america stacks up well the flip side of that argument,

though, is if we are in that kind of economy, the fed may pivot and start to cut rates as their dot box suggests later next year. and then some of this momentum we're getting from the net interest income may turn into a headwind as we work through next year >> on that net interest income, we heard him say that he's optimistic about next year, given that when do you think it peaks and when do you think depositors are going to see rates ticking up? >> yeah, bank of america really maintain low deposit costs this quarter, and you can maybe argue they're overearning a little bit on that, so we would anticipate perhaps even a doubling of deposit costs relative to the hike in interest rates next quarter. and so, we are kind of at an elevated level i think first quarter -- fourth quarter, they gave really strong guidance i think first quarter of next year will also be pretty strong, and then i think it's quarter over quarter, gets to be a

little bit tougher shreledding s lagging deposit costs catch up and then perhaps the fed cutting later next year, so we would look for, in our estimates, kind of have the first quarter as just kind of a peaking level, plus or minus going forward. but i think it's much tougher sledding >> let's look at two things here with our final question, david one is the numbers that b of a put up today, and as i read it, they were generally better than what you had anticipated in lots of different sub categories of performance. so, walk me through that and why you think they did better, and then let's look at tomorrow and goldman-sachs and what you expect there in light, then, of the bank of america numbers today. obviously, different companies >> yeah, correct yeah, bank of america was actually one of our top trading ideas going long into the quarter. we thought they were going to have a really strong quarter, and to your point, they surpassed our expectations as brian said, their guidance

was about $900 million quarter over quarter growth in net interest income. we were a little bit under a billion. they came out about $1.3 billion gross, so really strong growth the key here is the deposit base what we call is the pass-through of the fed increase. we are expecting that to be around 27% rising cost relative to fed funds, and it was actually pretty low at 20% so, that was really the key driver in the quarter. we expect that to creep up as we move into next year, but right now, really strong deposit controls >> what do you think on goldman tomorrow >> you know, i think goldman, you know, it will be a more challenging quarter than bank of america because they don't have the net interest income. if you think about morgan stanley, i thought the street was too high on investment banking revenues, which created kind of a red tape for morgan when they printed. they actually came in better than us, but below the street.

and so i think tomorrow, investment banking numbers may be a little bit heavy relative to consensus estimates for goldman. >> david, thank you very much for walking us through the numbers and giving us your opinions we appreciate it well, now nice it was today to walk into the studio and see a sea of green on that heat map. but coming up, one analyst says -- one strategist says, hey, you can't be fooled by that you have to sell the bear rallies and buy contrarian stocks he explains his strategy next. plus, china abruptly delaying its gdp release today, adding to a growing list of challenges for global investors and companies trying to gauge the nation's economy we'll take a look at the china conundrum. and as we head to break, take a look at shares of cloud flare. the is to be upgrated to overweight at wells fargo, the analyst noting an uptick in demand and the potential for positive free cash flow this year

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o welcome back to "power lunch," tech stocks bouncing back today after falling to a fresh 52-week low last week but your next guess says investors should sell bear rallies in tech and growth stock gets closer to a -- oh, i love this word, a policy pivot. with rate hikes expected to last into 2023, where does he find value now? let's bring in the chief investment officer at smeade

capital management this sort of contrarian view, tell me what your thesis is about selling in a bear rally. >> well, first off, we took a look at the last five decades, the ten largest cap stocks, asked the question, how did they do if you equally weighed them in the following ten years against the s&p, and in four straight decades, you underperform the s&p if you own the ten largest cap stocks, and in two of the four cases, you lost money so, the moral of the story is, when there is a financial euphoria episode, it's very difficult to put humpty dumpty back together again when they fall off and just take a look and see what's gone on so far. and by the way, bear market rallies typically include extremely violent up moves, so the people that are excited about the turn around last week

and the violent up move, they're basically doing what -- that's why they call them sucker rallies, because they just look so enticing that it lures you in >> i'm pretty sure that's what i just said. look at all the green on the heat map that's me. there i am so, given that, can you give me some specific examples of your contrarian stocks that you would suggest people take a look at. >> it's wonderful to be on the show the same half an hour as brian moynihan we bought his stock in 2012 early in the year and have owned it since then, and he's done a marvelous job, but if you listen to what he said about how they made their money, we've entered a decade where main street wins, and wall street loses. right? they weren't doing any ipos. they weren't having much investment banking wall street is not doing so well at the moment. goldman's rearranging the deck chairs that's struggle. on the other hand, if you're a waitress or a custodian or a cook or a carpenter or a plumber

or electrician, you got more work than you know what to do with, and they're paying you way more for it, so the have nots are going to win for ten years >> is that why you like simon property too >> yeah. we know that business is better at the class a malls today than it was at the best point in 2019, and the stocks are at bear market lows. simon's dropped from $172 down to where it is, and we also own mace rich, they've just gotten pummelled, and the reports we get is the stores are doing better and better. retail stores are doing quite well >> i guess i just heard something that got my attention, and that is that the have nots of the economy are going to do well over the next decade. a lot of people might say, it's about bloody time that they did. >> amen, tyler amen >> but it also affects the kinds of stocks that you want to invest in if your thesis is

correct. >> absolutely. you know that we've harped for years about how powerful these 92 million millennials will be when they get married, have kids, and form households. i went to a wedding saturday i think more people have gotten married this year than any year for ten years, and that will be true next year, because they couldn't necessarily get the venue they wanted this year, so they're getting married next year, and so what flows from that is buying houses, buying cars, having children, soccer shoes, i think contessa can tell us all about that circuit. and what that means is necessity spending rather than the new apple device, chipotle, craft beer, exotic travel as a single person you know the story >> yeah, yeah. >> the best stock of the next 30 years might be a company -- a psychiatric company that's going to treat 55-year-old bored-to-tears millennials who have gone to every exotic place

in the world before they're 40 >>before we let you go, we got to ask you because you own a 2% stake in continental resources what do you make of harold hamm's deal to pick up this deal for continental and take it private. valuation of $27,000,000,074.28 a share. >> we were told when he made his original nonbinding offer that the independent board members were going to ask for the input from the minority shareholders we happened to be the largest minority shareholder, and unless our phones and our mail and our computers don't work, we have not been contacted so, they have just run a process that they la oo us and haven't contacted us, so if anybody asks, we think that $74.28 is low. we said at $70 we thought because he doesn't like the way the stock is treated in the open

market, he was trying to steal the company, and now he did a process that they laid out to us and they haven't asked us. i'd like them to ask devin energy what they would be willing to pay for it. >> is there going to be a lawsuit coming >> oh, i don't know about those things i didn't go to law school. >> bill smead of smead capital management thank you for that >> yeah. >> thank you >> harold hamm, not just john hamm >> did i say john? >> no. >> it could have because i was very optimistic about that green heat map, and it's a sucker rally. >> thank you very much, bill smead. and coming up, mastercard looking to bring crypto to the masses we will tell you about their new plan and why it could spell trouble for names like coinbase. plus a big user uptick, a big activist bet, and what's old is new again we've got the trade on roblox, splunk, and fox. funky names today. we'll be back in two minutes with stocks firmly in the green, the nasdaq up nearly 3.5%, folks.

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mastercard is moving in on its turf kate rooney joins us with more details. hi, kate >> hi, contessa, that's right. mastercard and now potentially the backs adding to some more competition in crypto this morning, mastercard announcing a program that lets banks quickly offer crypto to their clients, they will act as what they're calling a bridge between paxos and financial institutions this mastercard program will help with regulatory compliance and security, which are many of the big reasons banks have largely avoided crypto, at least on the consumer side the company's chief digital officer telling me that despite bitcoin losing about half its value this year, they're still seeing demand for buying crypto. 65% of respondents in a mastercard survey say they'd prefer to get exposure, though, through their traditional banks. he also told me this crypto winter, as some are calling the

bear market right now, doesn't mark the end of the asset class and as more regulation and security gets established, some of the industry's current issues may be resolved and give consumers a little bit more confidence mastercard says a number of banks have already signed up they did decline to say which ones, but if wall street embraces this partnership model, it might mean a lot more competition for crypto exchanges like coinbase, which has lost about 70% of its value since january. as you mentioned, higher today, though broader market factors here, though contessa, tyler, back to you >> that detail about which banks have signed up that's the one that i want, kate >> we're waiting on it >> thank you let's go to our friend, brian sullivan with the cnbc news update >> thank you very much here is your cnbc news update at this hour. the u.s. coast guard intercepting an overcrowded migrant boat off the coast of southern florida on sunday migrants have been at sea for seven days and they were without food or water for the last two the coast guard transferred the 96 haitians, one bahamian and one you a began dannon the flash star ezra miller

pleading not guilty in a vermont court. he's accused of breaking into a home and stealing several bottles of alcohol miller faces a maximum of 26 years in prison for the burglary and petty larceny charges. and starting today, low-cost, over-the-counter hearing aids are available without a prescription and without a medical exam the fda approved the update back in august for individuals with mild to moderate hearing loss. white house is touting that this could potentially save americans thousands of dollars tyler? >> thank you very much appreciate it. ahead on "power lunch, "-- yeah, that last graphic. >> that was not good >> it was a little excessive the china trade, president xi expected to be nominated for a third term with a lot hanging in the balance. we are going to take a look at what's at stapke for u.s. business we're talking business on the ballot do consumers want corporations to get involved in political issues or should they just stay in their lane? we have results of a new survey here and taking a look at the

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90 minutes left in the trading day, and we want to get you caught up on the markets bonds, stocks, commodities, everything and the future of china and u.s. relations. let's begin with bob pisani at the new york stock exchange with more on this rally, bob. >> and tyler, this is pretty wild, actually we've moved 170 points on the s&p since the open on thursday that's 5%, and that includes a lousy day on friday. so, risk on again today. what's risk on you want to watch semiconductors, cathie wood's ark stuff, transportation stocks, so here you see some of these big semiconductors moving today. nvidia was, what, $108 on thursday it was almost $120 here today. so, we're all talking about almost a 10% move, 8% perhaps. micron, advanced micro, also strong today speculative tech, same situation. some of these stocks have moved 10% in the last few days, even with a lousy day on friday

twilio was $62 on thursday, you see $68 today. roku was $48, now it's $53 or so same with docusign as well want to keep an eye on the metal stocks the key story is this has been mostly in a trading range for the last two or three months it's nice to see the move up, but freeport, for example, that's been $26 to $30 for a while now. i think what's mattered here is the banks have helped improve the overall outlook for the early earnings reporters remember fedex that seemed like a long time ago. some of the early ones were really disappointing jpmorgan was terrific. what was jpmorgan, $103 on wednesday at the close it's $116 now. bank of america also helping today. so, remember, guys, we were, what, 3,669 on the s&p 500 on the close, somewhere around thursday or so

now, of course, we are above that thursday close. back to you. >> bob, thank you very much. let's go to the bond market now. stocks rise, money also moving into bonds, and that is sending yields lower the ten-year once again hanging around 4% after hitting that level several times last week and that is where the bonds sit right now. there you see it right at 4% on the button, the ten-year note. oil is closing for the day, and like most everything else, it too is higher. pip pipa stevens is at the commodity desk with more >> oil just now giving back its earlier gains, tumbling into negative territory earlier in the day, some optimism stemmed from china holding rates steady, which could boost demand for crude and petroleum products, but on the other side, recession fears remain front and center, and that is weighing on oil. but the much bigger mover is natural gas, tumbling more than 6% and at one point, breaking below 6 bucks and hitting a three-month low.

this comes after eight straight down weeks now, mild temperatures has meant lower demand, leading to two weeks of record inventory builds now, energy stocks, broadly, are in the green today, but two names i did want to mention, first up is continental resource fo founder harold hamm is taking the company private. continental's board approved the deal archaea energy surging 53% today after bp said it will buy the renewable natural gas company for $4.1 billion contessa >> pippa, thank you for that coming up, disney has come under fire this year for speaking out on political issues and sometimes for not speaking out. up next, we'll take a look at what people want companies to do and to say when it comes to politics plus, more people are playing roblox strong september numbers sending the stock up 20% today look at that should you join in on the fun? our traders takeomg i cinupn

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lest delection day, three weeks, we continue to look at the potential impact business will have on politics and the other way around today, we look at what role americans want businesses to play in politics, if any >> yeah, tyler, the public is really divided on that question. a new poll out today from gallup and bentley university found that 52% of americans believe businesses should not be weighing in on the latest headlines. unsurprisingly, that split follows party lines. republicans, against, democrats in favor, and that can put companies in treacherous waters. >> the lining profitability and shelled return and some of these more positive contributions are not necessarily mutually exclusive, but we recognize that they're fraught with controversy. >> the good news for businesses is that there are issues in which both sides clearly agree

88% of americans say businesses should focus on long-term benefits and not just short-term profits. 91% think companies should operate sustainably, and 92% want them to invest time and money in local communities so, guys, americans not only believe that business can be a force for good, they actually think that businesses are more effective than uncle sam in making that change >> so, ylan, what are companies supposed to do if half their customers believe they should stay quiet and the other half want them to speak out or take a stance or some political, quote, issue of the day are they stuck >> yeah, so, the advice that we got from the bentley university president, brent crite, was that she should avoid the extremes on either side. they should try to define their values and operate from the reason center. i think the challenge for companies is that that center appears to be shifting, it's in flux, and i think that's what's interesting about the survey is they tried to define where that solid ground is, where are the

issues in which there is agreement? so, businesses can start to position from there, and then we'll see what the results of this survey are over time. bentley and gallup do intend to continue doing this for a couple years. >> if people think they are more effective at changing than the government, it occurs to me, ylan, that part of the reason is because in companies, there's a boss, and even if you have consensus with a board and whatever, it's easier to get things done if there's a decision-making process in place, as opposed to 400 lawmakers trying to do it by consensus. and on long-term benefits, that would be easier if the companies didn't have to report quarterly earnings that's what, you know -- >> yeah, or they didn't do forecasting or predicting what they're going to make. they do manage the quarter anyway, ylan, thank you. ahead, time for three stock lunch and we're looking at three of the biggest movers today, getting our traders' take on where they're heading next the nasdaq is up nearly

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♪ ♪ no more waiting. no more running. [ screaming ] we finish this tonight.

time for today's three stock lunch and today's focus, big

movers, splunk up 6% on news that activist investor starboard has about a 5% stake rupert murdoch is exploring the idea of recombining fox and news co corp. let's trade those names with lee munson good to see you today, lee first up, splunk >> splunk. you know, it's going to be a hard pass, and let me tell you why. cisco offered $20 billion for this earlier this year, and that's, you know, 40% higher than it was -- than it is today. after that, they got some new management in, another pe firm earlier came in with 7.5% stakes and said, oh -- and remember, here's the deal with companies like this. private equity firms like to come in and say, hey, let's get you on a subscription model in the cloud and your valuations will go up, we'll all make money. that's not happening so now we have starboard coming in with 5% activist stake.

their focus is more on, let's just cut costs and try to get this thing to go up short-term but they've been around for 19 years, this company, splunk, they're not making a lot of money. it's a highly competitive environment. so, i think for investors to look at this, you're really not investing in this company. you should do all your research on starboard and think, do you want to invest with those guys for me, it's not my cup of tea i think it's too high, competitive. i want to buy something else. >> let's move on to fox, shall we, lee? and explain what a combination of fox and news corp. would look like what would the two companies resemble >> well, honestly, i think it would resemble what it looked like ten years ago i think we forget that ten years ago, they had that phone hacking scandal in the uk and they realized a few bad actors could bankrupt the whole ship. i think this was going to be a positive i'll tell you right up front, i don't want to buy it today

i would rather wait for third inning to see if these cost cuts happen, we can get profits going, and key people don't leave. but i think it's actually very important for them to recombine because we live in a highly competitive media environment with streaming and social media and all these things, so they will have a chance to -- remember thatchance, remember th world omni channel able to cross-sell all content between fox and news so i think it's the right thing to do. my problem is that, really, sold more as a cost-cutting measure and i'm very afraid of defections that could ruin the soup by combining it so let the bold take a shot on it i'm going to wait and see. >> next name roblox. want to play >> i do. guys, i am biased. everybody who's watching, my kid loves this stock wanted to buy it a little advise on the stock check all boxes? not really doesn't make money but i want to

bet some and buy some. tell you why nothing broken with the company versus the last two feels we talk and issue, valuation, hard to nail down, but september matrix came in found out all the kids are staying. you know, i would love to buy minecraft but microsoft is a stand-alone company. this is stand-alone. for younger kids, they get to create make their own environments and peel be willing to pay for that. you want to speculate and do something that, if we get out of this bear market and people start spending more, that's the case holding it back, the general environment because parents have less money, kids have a little less money and a lot of leverage up side. so i'm in. >> you're in on roblox likebaby-sitter, buy it and you're you're. >> true. >> lee munson, thank you. and shifting away from rapid

growth focusing on self-deficiency especially in technology we look at what china's future means for our business here at home. and teased it earlier. finally here nasdaq 100 heat map. you have it. mercadolibre and netflix leading among others we'll be right back. and buying your starter home. or whatever this is. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them. we believe that your investments should work harder for the future you imagine. and that's where our strategic investing approach can help. t. rowe price. invest with confidence. at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward.

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- oh, the stock market is doing that fun thing again. news from the future: you're going to live through that about 10 more times! (laughs) no stress. i just discovered yieldstreet. they vet investments that don't ride the stock market rollercoaster. - [narrator] yieldstreet: private market investing. all right. welcome back to "power lunch."

turning now to asia. president jinping widely expected to receive a third term at general secretary and in a fiery overnight speech touted china's increased tensions on national security and reuniting taiwan doubling down on zero covid and the strategy following there. before the speech began china unexpectedly delayed indefinitely the release of its much-watched gdp numbers set for tomorrow morning. so what are they worried about what's next for china? joining us, andy rothman, investment strategist at the matthews asia fund good to havy were you us talk about xi's speech non-release of gdp and what it meant. sounded respectable maybe more bellicose where's to taiwan than expected am i reading it right? >> i would read it differently,

actually head the entire 64-page speech last night so you don't have to it wasn't bell saying peaceful unification goal and warning other countries particularly the united states to stay out of the way. i think that he is relaxed and confident and not looking for trouble over taiwan. >> so nothing particularly new there. i guess i was struck the number of times he mentioned national security told more than 50 times. the response in the room to references to the, to the ultimate destiny that china will, not just may, will eventually be reunited with taiwan >> right eventually is the key word my visew, the party is willing t wait forever for that as long as there aren't moved to take away

towards more independence. reading the speech to me it came off as one focusing primarily on economic development a lot of language up front about the importance of growth, bringing more people in the middle class and things like total factory improvements, hardly a marxist concept. >> interesting, though, because we know that the china gdp numbers have been delayed. our reporter, our cnbc correspondent in china tells us the sense is that it may be that those who are responsible for publishing that report didn't want to embarrass xi jinping right now. i want to be even more specific. when talking about this reunification how the special administrative regions fall into that how does hong kong and macao fit into that we we know there's a tightrope when covid goes and

democratic freedoms to adhere to beijing and still maintain some independence >> great question. start with the economy first not sure why the economic numbers, which were supposed to come out tomorrow or tonight our time were postponed but we already know the economy is china is very weak right now and it's weak primarily because households and corporates are afraid to spend and hire because of lockdowns and fear of more lockdowns. most important thing for the chinese economy, a change in zero covid policy. i think it will happen after the party congress wraps up end of the week i suggest investors follow two milestones first a change in rhetoric expecting the party to start talking more how chinese people have to get prepared to live with covid like the rest of the world meaning getting parents and grandparents vaccinated. the second -- sorry. then the second milestone to watch is the number of vaccinations going into arms that has to start coming up. >> zero covid policy is

affecting much of china's economy, you mentioned the sector i cover, gaming and gambling macao is -- just crushed because of the covid restrictions right now. the estimate is the sixth licensee, six casino companies operating there, three of which are american, are losing $1.5 billion per quarter. tell me a little about how you think this policy affects u.s. companies and the u.s. economy >> well, i think this is having primarily an impact on the chinese domestic economy not on our economy china's end of global supply chains actually held up quite well, but there's no doubt that because of zero covids chinese economy is on an unsustainable path now and why i believe that the chinese government and communist party leadership, always turned to pragmatism, course correcting, fixing mistakes has to do that. they can see clearly as i can otherwise the economy will

continue to struggle so i expect that we are going to see a pick up in vaccinations, and that after the winter flu season is over i expect the end of lockdowns which has been the main barrier to grow. >> great to talk to you. >> maybe a pivot in china. >> thank you for watching "power lunch." >> "closing bell" starts right now. fallen bank earnings and a calmer situation in the uk sending markets sharply higher to start the week. nasdaq leadinged charge. up 3.4%. a make or break hour for your money. welcome, everyone, to "closing bell." i'm sara eisen where we stand in markets across the board, high for the dow 677. up 555 or so it's a broad really. s&p 500 up 2.6%. every sector higher now. leaders the places that have been hit hardest during the bear market communications services, technology, consumer discretionaries actually leader up