because i'm filling in for melissa on fast money. thank you. united and netflix tonight we will see you there, 5:00 p.m. for "fast money" tonight we'll see you back here for the exc exchange i can just eat these nine seconds. "power lunch" starts right now i'm going to fill the hour that way welcome to "power lunch," everybody. along with contessa brewer, i'm tyler mathisen here's what's ahead. profits are powering wall street for a second consecutive day the earnings apocalypse that many feared is so far missing in action, but can this rally really be trusted? we'll talk to someone and get a perspective there. plus, lockheed martin tops expectations the stock surging today, gaining 22% this year. that trounces the 20% drop in the s&p 500. the cfo will be along very

shortly to give us a peek into 2023 and even as the threat of recession looms. >> hello, tyler, and hello, everybody. a broad rally, all 11 s&p sectors are higher the dow up 652 pointsat its highest. right now, up 416. we're 1.4% the s&p 500 is up 1.5% the nasdaq composite up 1.3. in the last 30 minutes, twitter shares popped on a report the company is locking employee stock accounts in, quote, anticipation of a deal and salesforce is the best performing dow stock this afternoon. david faber, the first to report that activist investor starboard has taken a stake in the enterprise software company, citing a significant opportunity. there you see salesforce up 5%, and faber also reporting dan lobe has build a sizable position in colgate palmolive, saying there's hidden value in the pet food subsidiary.

you see the company up almost a full percentage and goldman sachs up 3% after the bank topped analyst expectations on strong bond trading results. >> as stocks move higher on earnings optimism, wall street strategists questioning its sus sustainability history says to fade this rally. bank of america notes the market won't bottom until the first half of next year. that's their opinion and ubs says we don't believe the conditions are in place for a sustained rally. so can this move higher be trusted? let's talk to randy warren, chief investment officer with warren financial services. can it be trusted? >> you know, i really love this rally, but at the same time, i don't really trust it. but you know, you have to be a little flexible because at the end of the day, every new bull market starts with a bear market rally. so you have got to be a little flexible here, but you also have to be very careful

we're bumping along the bottom and it's just hard to imagine that the market is going to make a lot of extra progress when the fed still has a lot of work to do in terms of raising rates even further than they have so far. >> if you don't trust these rallies right now, what would make you change your mind and say, okay, this is the sustainable rally that we want, that the bottom is in? >> one of the keys here is holding this 3600 level on the s&p. if we keep on making new lows, that's just going to -- that's obviously going to be bad news for the rally. it's not going to happen, and we're going to have to wait longer but if we can hold somewhere, and i'm not a precise person who says 3600 is the number. but you know, you need to basically hold this area that we're in in the s&p 500 and say this is the low, we're butcmpin along the bottom as you were saying earlier, the earnings look pretty good. they're coming in already. and so there's a possibility

that the stock market and the bond market may start to look past the recession that we're in and may start to look past what the fed is planning to do in november and december. >> randy, if you don't trust the rally, then how do you use what you do trust to inform your strategy >> yeah, it's really tough right now because you can look at all the fundamentals of the companies and so much has been wrecked this year. if you want to look at, you know, revenue growth sxand earnings growth and the metrics we typically look at, instead you really have to pick carefully. you have to pick strong companies that are going to for sure be there when the new rally begins stocks like lockheed that you were just talking about and salesforce, lockheed being one of our top ten, and things like tesla, nvidia, airbnb. these are great companies, and they're for sure going to be there when the next rally begins so if you're holding the high

quality stocks, even if they're, you know, you want some value, you want some growth but you need to hold those high quality companies that have good management and you can count on to be there when the rally really begins and the bear market is over and a real new bull market takes over >> so you say great companies that are still great but stocks are beaten down, like costco, home depot, chipotle among others are there others >> oh, yeah. there's an endless list of stocks that are beaten down. you can go with apple, for sure. i mean, we were buying apple as much as a month or two ago and we're still buying more apple. adding to positions. now, if one of our clients already has a bunch of apple, we're not adding to it, but if anybody was light on apple, it's hey, let's add more apple. it's cheap right now that's where people need to really think in terms of being a shopper. you know, stocks are on sale

they're 20%, 25%, 35% off depending on what stocks you're looking at if you went to the store and the stuff you wanted to buy was 30% off, you would be pretty happy i know that only makes people happy who are buyers now and not holders, but when you get a good entry point like this, you really want to ride this into the next three years >> randy, you have given us a perfect segue to our next segment where we're going to talk more about apple. thanks for being with us today randy warren >> my pleasure >> apple and tesla have been losing trade so far this year, with both stocks down double digits that is not stopping individual investors from piling in our next guest wrote an article about it in today's "wall street journal" looking at why the stocks are still so popular and what that signals about the rest of the market. h she's live in a cnbc contributor. it's great to see you today. i want to just read the line from your article. many individual investors have

ramped up purchases of tesla, despite its 38% decline this year you write despite. is it really because of its 38% decline, to randy's point, it's on sale? >> so it's interesting, contessa on the one hand, you have see a lot of investors dump things that have taken a big hit this year think some of those growth stocks a lot of people have abandoned those trades what we have seen with tesla on the other hand is you have these really enthusiastic individual investors doubling down on it. and buying the dip in tesla. what was surprising to me is that they have ramped up purchases in the stock it's been the fourth most popular stock or etf for individual investors to buy this year, up from 12th last year despite all these calls for a sharply different market environment, right, yields are at the highest levels since the financial crisis people all of a sudden have other places to park their cash.

there's been an upending of the u.s. stock market with tech growth taking a huge hit what we have seen among individual investors is they have hung on to stocks like tesla, apple, other tech stocks and increased their purchases of them >> you say tesla is the fourth most popular stock or exchange traded purchase among individual investors. apple is the most popular. give me a sense of what is the draw for apple, and i don't know, i'm always curious, whether with individual investors, they're buying what they know, and they know what tesla makes. they know what the company is about. they certainly know what apple is about because a lot of us have apple incorporated into our daily lives. >> think about during covid-19, the initial market crash these stocks kind of becamethe safety trades for a lot of investors. when everything else was going down, it seemed like apple, tesla, the nasdaq were the only things going up, that really became the safety trade.

and i think a lot of investors still think of them that way and apple and tesla, they are some of the biggest companies in the market but their importance to the market transcends their size because they're stocks that people know and really believe in both of these stocks, apple has become an economic bellwether of sorts. tesla has become a gauge of broader investor sentiment of the market itself. so i think these stocks have just become favorites among individual investors with incredibly excited enthusiastic bases that are still hanging on. >> you know, gunjan, there's often the feeling that when individual investors swarm into the market it's a time to sell when they swarm out, it's a time to buy can you infer from that sort of old saw anything about these two stocks in other words, with the amount of individual investor enthusiasm for them, it might be

counterintuitive sign? >> so i don't believe in the dumb money, smart money stereotypes out there, and i think they really have been proven wrong over the past two years, where individual investors in several cases have come out looking a lot smarter than many would have anticipated based on those stereotypes but i will say, i have had investors tell me that they think that the rush into apple and into tesla is a sign that the broader market and even those two stocks are still in a bubble they think it's a bad sign for the broader market that they kept going up, given this jump in yields we had, the fact that so many people are calling for this different market environment. i had one investor tell me i think apple and tesla will kind of be the last shoes to drop i think it's going to mean pain for the broader market when he said they eventually do fall >> i'm kind of with you on the

smart money/dumb money thing, because the smart money if you're thinking of smart money thinking henge fund managers, they haven't done well lately, at all congratulations once again on your award, the highest award in business journalism, and gunjan was part of the team that won it a couple weeks ago >> thank you coming up, lockheed martin having its best day since march 2020, beating expectations, boosting its buyback can the run continue contessa, i almost called you tesla. >> plus, netflix rallying about 30% over the past three months a look at whether earnings will power the stock even higher. >> before the break, this tease goes on and on and on and on i'm just going down the tubes with it. ally financial down 4%, and jpmorgan cuts its price target to $34 from $39. there we go.

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shares of lockheed martin soaring after the company posted strong quarterly results before the bell, beating earnings per share estimates, boosting the share buybacks by $14 billion. hiking its dividend by 7%. cnbc's morgan brennan joins us now. here's the stock having its best day since 2020

what do you think investors are most optimistic about here >> i think there's a confluence of things here but i'm going to start with three words, $14 billion. analysts have been waiting all year to see something like this from the defense contractor. especially in the wake of that scuttled air aerojet deal earlier in the year. increased share repurchase plan. it doubles buybacks for 2022, continues those purchases for the next few years you couple it with an earnings beat, and that despite flattish sales and pressure on margins next year, free cash flow expectations that's are going to remain in tact, that's part of the reason you're seeing the shares trade higher. also worth noting, the demand for weapons remains robust it's growing, as you would expect given the geopolitical climate right now, and that swelled to $140 billion. the last thing i'll say is defense stocks are largely considered defensive in part because those backlogs tend to

translate to future sales. so here to talk about all of this a little more xclusively, i want to bring in the cfo of lockheed martin fresh off the earnings call just a little while ago. jay, great to have you on "power lunch. thanks for being here. >> thanks. great to be here as well >> one of thing thes you and i have discussed and came up on the call today, the fact you are forecasting for sales to be flattish in 2023, but that you expect a return to top line growth in 2024 supply chain continuing to be the culprit here where is that pain most acute, what is it going to take to see some of those pressures ease >> yeah, great question. you know, it's part of what we saw here in 2022 you may recall back in the second quarter, we lowered our sales forecast by about $750 million. that was due to declines we saw, supply chain created declines on the f-35 program, the f-16 program, and a few other programs we have in our backlog.

we expect that pressure to really continue through 2023 but we do expect to rebound in 2024 those are predominantly the issues we have faced what we seen in 2022 is extending to 2023 as well. >> the demand for weapons we touched on it that lockheed makes whether it's the javelin missiles sent to ukraine right now, the himars launcher that is actually being used with great success on the battlefield as well also the fact allies are raising defense budgets. how does that factor into the outlook over the next couple years? . it's certainly gotten better when you think of where the defense outlook was a few years ago, it's better our backlog drew in the third quarter. we expect orders and backlog in 2023 to grow as well we'll start converting on the backlog in 2024 and then in '25 and '26 and beyond, we expect continued growth that's where we are today, and that's what the outlook looks

like >> international sales, about a third of overall revenue a lot of focus in the media and certainly on the hill right now, where saudi arabia is concerned on the hill, that opec plus oil cut just a couple weeks ago. some talk that maybe we could see some curtailing of weapon sales to that country. on one hand, on the other hand, as i mentioned, you do have rising defense budgets among allies how is lockheed navigating those potential foreign military sales right now? >> well, for foreign military sales, we take our lead from the u.s. government. those policy decisions are really outside of our hands. and we just follow the government's lead on where and when to make those sales and in many cases we also sell defensive products so there's an opportunity to continue to sell those types of products, but again, that's a decision that ultimately is a policy decision that the u.s. government will make and we'll follow that lead >> if i heard you right, sir, i gather demand is strong and you expect it to continue that way but you cited earlier the supply

chain bottlenecks that cause you to revise downward your sales estimates earlier this year. so the question is, can you meet the demand going forward will you be able to execute to meet the demand? >> we believe that we can. between now and 2024, that gives us time to continue to work with our supply chain we have anywhere between up to 500 people at our supply chain today to help them with their operations and improve to the level of production levels we need between now, that will give us 15 months before we get to 2024, and we're investing ahead of need as well so whether it's test equipment, assembly equipment, all of the elements that are required to start delivering at these incrementmal ramp rates, we have sufficient time for. >> jay, it's contessa. i'm curious about the problem of chips and given the switch from the biden administration on chips in china, how that might

affect your process moving forward. >> well, certainly, it's a watch item for us. we have been fortunate this year, we really haven't seen a significant impact due to electronic components. ours have been, to be honest, some of our platforms have been more of the structural parts of the aircraft, of the platform that have really driven the delays for us. so far right now, electronic components have held in pretty well and we have a good line of sight for the next 12 to 24 months >> speaking of china, it's the so-called threat, as the department of defense would put it we had a national security strategy that was unveiled, too, which focused heavily on china looking at lockheed martin's r&d and cap-x spending, $4 billion expected to be spent in 2023 how much of that is going towards countering another major power on the global stage? what does that mean in terms of new technologies that are being developed? >> well, significant amount of our r&d is spent in those areas.

we have 14 technology road maps that we're spending most of our independent research and development on and so we spend north of $1.5 billion on r&d, and about 80% of that is going towards these technology road maps which is really modernizing the capabilities for the u.s. war fighter. so when we talk about being ready in 21st century security, that's really where our spend is going. as far as cap-x, it's a similar story, about 75% of that is really going towards the new products and the capabilities associated with delivering oo higher capability to our customers. >> all right, jay, thanks for joining us here on "power lunch. the cfo of lockheed martin with the shares up almost 9% right now. >> thank you for bringing him to us we appreciate it ahead on the show, the crock of wall street, a look in one of the largest crypto heists in history. nearly 120,000 bitcoins stolen we have details coming up. >> plus, rolling into evs.

rolls royce unveiling its first ever electric vehicle, and it's got quite a price tag. up next, a crispy team-up. mcdonald's adding a new item to its menu, and shares of krispy kreme are moving higher. we'll be right back. e shamans a. i'm talking world-class business experts. data geeks, strategists, tax advisors, the works. what about technologists? 40,000 strong, baby. we'll be able to hit our projections both fiscal and astral. this company sounds great. what do you think, agnes? looks like it's unanimous.

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welcome back, everybody. shares of krispy kreme, the stock up 2% after soaring as much as 6% sugar high early in the session following news of a partnership with mcdonald's. the fast food chain is going to sell krispy kremes at nine locations in kentucky starting on october 26th. that marks the lastf of mcdonald's menu experiments following a growing trend to attract customers. but you have to go to kentucky to do it let's get to bertha coombs for the cnbc news update might be worth it, bertha. >> i love that doughnuts to dollars here's what's happening at this hour virginia man has been arrested in connection with the deaths of four people in a washington, d.c. suburb. police say the suspect lived with the victims who include a recently married couple and their teenage daughter three of the four victims were shot to death. >> the german government has

fired its cybersecurity chief over alleged ties to russian intelligence german media reporting a security group he cofounded included a company founded by a former russian intelligence agent. the group rejects the connection as absurd. >> and if you have ever thought mosquitoes make a beeline for you, well, now there's proof a study finds a major species of mosquitoes is drawn to people with high levels of certain odor producing chemicals on their skin i could have told you that the research may be used to develop ways to manipulate a person's skin and make it smell less appealing to mosquitoes i am the human pest trap if you go out with me in the woods, i am the one who's going to attract all the mosquitoes. >> we should do an experiment because usually that's me. let's go for a walk in the woods together and see who gets more mosquito bites although i don't want to brag about my skin producing an odor like that's not really the kind

of thing - >> my wife can join jow on that walk i'll be sitting in the same place out back and she'll be eating alive and i'm just -- >> lucky youjust were born that way >> ahead on "power lunch," for the past few quarters, netflix's subpar subscribers stoking fears. this time around, the company is hyperfocused on keeping that number from freefalling. taking steps to offer cheaper ad-supported options to users and woo shareholders as a result, the stock coming off its best quarter since 2018. is the netflix fix in? we will be right back. our best. nice. but everyone should get it. everyone can get it. every new customer. and every existing customer. every iphone. every iphone. every iphone. every. every. iphone. ok. my work here is done. everyone gets the best deal on every iphone. best one yet.

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all right, 90 minutes left in the trading day almost exactly. we want to get you caught up on the markets, and netflix earnings that are on deck. let's begin with kristina partsinevelos at nasdaq. hi, kristina >> we have a second day of green, but markets are really clinging on to those gains down from the highs of the morning. all three major indices though are tracking for their first monthly gain since july. today's reversal fell in step with yields moving higher. for example, the ten-year treasury note just above 4%. and the better than feared

earnings really helping momentum right now. goldman sachs up, look at that, up 2.8% after topping earnings and sales estimates. but did post a 43% drop in profit other financial names on the s&p 500 like bank of america, morgan stanley, charles schwab moving up in sympathy, but it's not the case for ally financial. its cfo is stepping down and morgan stanley cutting its price target for the company to $34 a share down from $39. home builder sentiment in single family homes fell sharply in october. higher rates are to blame, but the 30-year mortgage dipped slightly today, and that's helping names like lennar and kb home, up over 2% are you thinking of that vacation because i am? travel names trending higher, especially the cruise lines like royal caribbean, norwegian norwegian up 9%. there was a bullish note from bank of america yesterday talking about consumer spending and how it was up 10% year over year in september and early october, which bodes well for the consumer facing travel

sector and lastly, biotech and pharma names like moderna, noev avax pulling back after recent outperformance the bounce in skepticism pretty high trust is the word of the day today, tyler >> are you going to trust this rally or not i oztrust you. >> thank you likewise >> thank you >> now on to the bond market another trustworthy sole there, rick santelli, ten-year yield aiming to close over 4%. talk us through it, rick >> this looks to be the third session, but let's start out on the shorter maturity, shall we look at a three-day of two-year, and i picked three-day because we know friday wasn't a very good day rates popped we had an inflation week of data and equities were down but a lot has changed since then look at the trajectory of the short maturities, kind of easing back in a concave look now, contrast that with the three-day of ten-year knowing friday, monday, tuesday all

first times above 4% going all the way back to 2008 you see it on the chart there, and technicians are a bit disappointed many thought we would see a bigger pop in yields and a bigger drop in prices as we had that close, but technicians aren't going to challenge that it's a big technical move, and many are looking at the interest rates with tight stops one thing you don't have to worry about is an aggressive bid for the european seven-year. they brought $1.8 billion equivalent seven years in europe today. the yield was barely over 1%, and basically nobody showed up the bid to cover was basically 1, which means for every dollar's worth of securities, a dollar's worth of investment showed up. the weakest on record. now, if we look at what's going on with regard to fed fund futures, the pivot still in april of '23, which means prices go all the way down until you get to that month. implying a run rate of 4.90%,

above an historic low. and finally, the dollar index. it's hovering near unchanged but what's noteworthy here is it's only two cents below its fresh 20-year high close, which was on september 27th tyler, back to you >> rick, thank you very much rick santelli. oil closing for the day, which it does pretty much around this hour most days. down 8% over the week, off again today. pippa stevens covering it for us at the commodity desk. >> hey, tyler. the tumble continues with energy prices extending yesterday's losses although wti is closing about $2 off its worst levels of the session. geopolitics are exacerbating an already uncertain supply versus demand picture, and this is especially true when it comes to the spat between the u.s. and saudi arabia regarding opec's output cut as jpmorgan put it, global energy markets have become exceedingly complex, resulting

in a vicious loop of high volatility and low liquidity wti is down 2.7%, with brent down about 1.5% at $90.28. it is once again natural gas that's the big mover in the u.s., prices down 4%, but in europe, the contract tumbling 14.5%, it's now trading right around 111 euros per megawatt hour back in august, it traded around 340 euros. it's down more than 60% since. much of that is thanks to gas in storage building at a much faster than anticipated rate stocks are now 92% full. helped by mild temperatures and strong renewables production tyler. >> pippa, thank you very much. >> let's move on to talk about the shares of netflix. they're trading lower ahead of earnings later this afternoon. but coming off a big gain yesterday. and an even bigger one over the past three months. our next guest has an outperform rating on the stock, and a $325

price target here with what he expectsfrom netflix results is jason, oppenheimer head of internet research jason, welcome good to have you with us tell us what you're expecting netflix to say today, and i guess the number that most people watch closest is net ads. >> correct they guided for a million. we think the streets, it could be a little better or worse. i think this quarter doesn't matter truly more the update they give you as they have been leaking out information on the new ad-tier product, basically coming in, you know, a dollar below disney we have seen some data that suggests churn should get better in the fourth quarter. so i think it's more if they assume they guide for the fourth quarter, we're at 5.3 million net adds we're more bullish than the street there, but really it's how we see the story evolving

over the next 12 months is why we have the outperform rating. >> do the net adds go up in the fourth quarter because of ads? >> it's by bringing a lower priced tier, it should reduce churn, or people kind of canceling. secondly, we think their content slate should -- with all of the competitors who launched, paramount plus as well as peacock, there was just a flood of content to get those services up and running and so we think it's just been a few challenging quarters for netflix on the content side. we think fourth quarter should get a bit more normalized. i think some of it is seasonality. you usually have more subs in the fourth quarter we think the comparisons versus competitors get easier, and bringing in a lower price tier should reduce churn and we did our own work that suggests there are customers who will rejoin

netflix at a lower price or who have never been subscribers who will join. >> we didn't see it on the competition list, but amazon clearly comp possecompetition, have just announced they're going to have a new football game from the nfl on black friday next year netflix doesn't have live sports and live streaming is that a huge hurdle when you're looking at the competition? >> i don't think so. netflix has never had sports if you think about amazon, in most countries, it was the content was a nice add-on when you were already paying them for the prime shipping service clearly, bringing sports will help them, as you get that marginal customer who says i don't know if i'm going to get the value out of prime, or in certain international companies where the prime offering may not be as robust or fast as the u.s. or parts of western europe, so

look, i understand why amazon is doing it, but that's not what i would be worried about with netflix. i think the other nonsports oriented competitors lost a lot of money on launching their streaming services this year, and they're going to have to be more rational and, you know, basically, unless they're going to start pulling shows off linear tv to put them on their streaming services, i think you're going to see a more level playing field with content next year >> can we get you to switch stocks here a little bit over to twitter? which i know is one you cover. the reports are now that twitter has basically told its employees that stocks they own in their own retirement or their personal sort of company stock accounts are frozen presumably in anticipation of the completion of the sale of the company to tesla's chief. >> elon musk >> elon musk so what is your sense of the

timeline on this deal closing? is it three days, is it five days, what is it >> i mean, we don't have any special insight here i guess really it's up to the judge. and that's what's drawing the timeline, and obviously, mr. musk has been unpredictable up to this point, so does he try some, you know, ninth inning move here? but really hard to predict it does seem like the judge wants this to kind of get resolved because -- and let's be fair he's going to buy the company. >> what are you suggesting with a ninth inning move, jason >> just, you know, i mean, again, mr. musk's kind of behavior in the situation has not been predictable when he's come out with different things that he's wanting more information, objected to, and again, i'm kind of a public observer to this and it does seem like he is capitulating and understands that he's going to end up buying

the company, and the sooner he moves on with it, the better the company will be, because right now, employees, they have probably lost employees they have not wanted to leave, and i think advertisers are not particularly focused on twitter as an ad platform while it's in limbo here i do think the fundamentals of the company have been hurt the longer this takes to close >> jason, thank you very much, and we appreciate your flexibility there. >> still to come, a look inside one of the largest crypto laundering schemes in history. how it happened and the fallout next >> plus, deutsche bank calling microsoft the best house on the block ahead of its earnings. we'll trade that name when "power lunch" returns. - 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.

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could save you money. humana, a more human way to healthcare. - 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. welcome back to "power lunch. in 2016, 120,000 bit coin were stolen in a massive hack it's kicked off a years-long investigation and recovery effort by the department of justice. eamon javers has been digging into eccentric figures at the

s center of this >> this is a crypto who done it story that starts with a mysterious hack of a crypto exchange in 2016 no one has been charged with that hack, but the years-long investigation to find the stolen crypto led the feds to a young married couple in manhattan, heather morgan, an aspiring rapper, and her husband, ilya lichtenstein, shared hundreds of bizarre videos on social media that make it hard to imagine this couple could be charged with conspiring to launder billions of dollars worth of bit bitcoin. >> videos of heather on social media give us a peek into the private life of a mystery woman accused of a multi-billion dollar crime >> i made this really dope orange balaclava, which is inspired by joe exotic >> she posts videos showing off art projects where her medium was taxidermy. >> it's a camel skull. pretty dope, right >> and shows off quirky talents

like using chopsticks to eat with her toes. also, they found her alter ego she describes as something tweeg an acid trip and a delightful nightmare that combined her fearless entrepreneurial spirit and her hacker mindset >> that's super. super weird story. i can imagine in the future there will be movies about it. >> all of a sudden i hear this voice rapping and see who is on the microphone and it's heather. she picked up the mic and started rapping. >> in this music video, she calls herself another name >> come real far but don't know where i'm headed >> to see these people acting the way they are and just being so open about their lifestyle and stuff, it was just fascinating to me. honestly, i could only laugh

>> keep filming and expecting something to happen, and what do you want me to do? do you want me to shove something up my [ bleep ] and do a dance? >> the fact that so much bizarre content about them was available to gawk at on social media helped the story go viral. >> i'm obsessed with heather morgan >> please go down this rabbit hole you will not be disappointed >> now, heather and her husband who goes by the nickname dutch are innocent until proven guilty and there's a status case in november, so the end of the story is still to be written, but what we know so far is both strange and fascinating, guys. >> that's an understatement. so despite the crypto theft we have read about, we're told crypto's traceable how hard is it to -- or untraceable. how hard is it to spend billions in stolen bitcoin? >> that was the challenge here that this couple allegedly had a lot of people still had this idea that cryptocurrency is great for criminals because it's

untraceable. it turns out that's not really true the doj can track cryptocurrency it's a question of matching up the wallets they see in the blockchain with the real life people who control the keyboards. that's the trick for law enforcement but they can do that by sending subpoenas and requesting documents from all sorts of legitimate businesses so the moment a criminal tries to actually spend the money in the real world, that is a clue and a lead for law enforcement to follow. and that's what we found in this documentary, which by the way, you can check out the full crocodile of wall street documentary at youtube.com/cnbc. >> i have a sense, eamon, you saw some very interesting video, you screened some very interesting video. >> we watched a lot of those videos, tyler. it was a lot of work >> i'm sure it was thank you for that story >> you can watch more about this heist in that special episode of american greed, airing tonight at 10:00 p.m. eastern. up next, clothing, cars,

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let's get to steve kovach

for a market look. >> a reportsaying apple is cutting some protection of the iphone 14 plus now, this is the last version of the iphone 14 that went on sale about ten days ago it's the regular version of the 14 with a bigger screen. i reached out to apple for comment and haven't heard back this is something we've been hearing for the last couple of weeks since the iphone 14 went on sale, the idea that it isn't selling as well and people are going for the pro line analysts are saying this could help them reach revenues even if unit sales are flat. >> thank you very much for that. time for stock lunch and today we trade some of wall street's biggest calls target, jeffries upgrading the retailer to buy, saying that there's margin improvement there. carvana, web bush says the company won't be able to

maintain enough crash, downgrades to neutral. and microsoft, deutsche bank says it's the best house on the block. let's bring in chief investment officer at the glenn view trust company. >> target, we like the stock short-term stock is down 30% year-to-date, and really because of what hit a lot of retailers, just got caught with too much inventory as things changed coming out of covid, but it has changed out of the patterns from consumers, coming into what we think is probably a tougher economy here and maybe a recession next year. but we think they're a survivor. so they'll probably have less competition coming out of said recession and they do have the wherewithal to compete against what you really have to compete against, which is walmart and amazon on top of that, selling for about 13 times 2024 earnings and

a 2.8% dividend yield, so i think it's worth a go. >> carvana, the other side, is a sell, down 92% year-to-date. this is a very special situation. >> yeah, you want to like it because it's a super interesting space that if they could possibly disrupt the used car business via an online platform there's probably a lot of money to be made the problem is they're not making money and they probably won't make money for at least the next two years, and that's caused them, because they've burned a lot of cash, to be a worry that they're going to have problems funding and they might have to issue more stock, which will dilute shareholders, which is why the stock is down. >> our final name, microsoft what do you make of it you said the analysts said best house on the block two phenomenal businesses, really the one is the cloud, they're one of -- let's call it three major players but it's primarily amazon and microsoft

and it's really changing the way we do business and it's just going to continue to spread to more areas i gave the example of turning gaming into a space where you can charge monthly fees, that kind of thing. secondarily, their productivity suite, which is what all of us would call kind of the office suite. there's been companies like google that gave away those tools and still couldn't displace microsoft and they've been able to raise their prices. so it is really hard to get negative on this company, particularly, again, at 30% off where it was at one point. >> who doesn't love a sale thank you, bill stone. appreciate that. >> thank you. we finished all three of those. veter the break, rolls-royce unils its first-ever electric vehicle. it will be the most expensive ev on the market. we'll be back in two

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rolls-royce becoming the latest car brand to give in to these challenging times, rolling out its first electric model today. robert frank joins us with that story. hi, robert >> tyler, it is called specter and it's a two-door with a range of 320 miles, 0-60 in 4.4 seconds. price tag a whopping $413,000. that is the most expensive ev on the market the price doesn't seem to be deterring wealthy rolls buyers the company's ceo telling us buyers are rushing to place orders, even before the actual

launch >> initial customer order is very pleasing. we have even seen here also from the united states far over 300 clients who visited us over the last two weeks and who have seen specter. they all deposited already >> guys, some really cool features the grill lights up with 32 l.e.d.s and the famous hood ornament on the rolls-royce was given a modern makeover. the first deliveries start to the fourth quarter of 2023 this follows a record year for rolls-royce. last year they delivered over 5,500 cars >> wow, that is a beautiful car, i must say, robert it is a lovely one to look at. the waiting list will be long, i suspect. >> it will be, given that the current waiting list for other cars is over a year long, this one could be even longer.

>> absolutely. robert, thank you very much. robert frank reporting. folks, we've got a gain of 250 points or so on the dow. >> the real question today, can you trust this rally we've had some competing opinions about that today. thank you so much for joining us for those conversations right here on "power lunch." "closing bell" starts right now. stocks are building on this week's strong rally. some headlines hitting the tape a few minutes ago from information that apple is cutting iphone 14 plus production that's taking some steam out of the rally. welcome, everyone. this is a make-or break hour for your money i'm sara eisen apple just turned negative the dow overall is still up 200 points s&p is up almost three-quarters of a percent the nasdaq is lagging today. we are putting together here