companies like regeneron, conoco, and chevron. >> michael farr? >> cvs, 11 times earnings, growing earnings at 9% good cash flow at 2.3% dividend. they've got this acquisition right. i like cvs >> give me a name, josh brown. >> nest era energy the largest wind energy generator in the world, scott! >> all right i'll see you in "overtime. "the exchange" is now. >> here's what is coming up on the schaing. bullarding into the bulls a bit. stocks off the lows, but under pressure today, as the st. louis fed president says there is still a long way to go to get inflation under control. we'll look at the impact of rising rates on the economy, including the value of your home builders are cutting back on new projects a former zil low ceo is here while rising rates are hurting housing, rising prices are

crushing restaurants the ceo of the great dickeys barbecue is here on how inflation is hitting nearly every aspect of her business all of you restaurant owners out there, you'll watch that one get that brisket ready but first, let's fire up the old market grill and get to dom chu with our numbers i said they're spooking the bulls, now the market is in the green. >> not exactly cooking with gas. butter cooking, because this is the high of the session. the dow industrials up 33 points is modest. it's nothing write home about. but when you consider the idea we were down 314 points at the lows of the session, that's quite a comeback highs of the session, up about 1/10 of 1% it's not a lot, but way better than it was at onepoint earlie today. that narrative shifting for the s&p 500 as well, down only one quarter of 1%, nine points, 39, 49 right there the nasdaq composite about flat on the session 11,184

modest moves, but considering where we had been on some of those comments from sfed speakes like st. louis' james bullard. one place where you are seeing a more market affect of some of those more hawkish comments from fed speakers and concerns about the economy is an oil prices, which continue to be under pressure near-term right now u.s. benchmark west texas intermediate, wti crude, $81.89. that's down about 4% right now you can kind of see this near-term downtrend that we've seen for quite some time still drifting lower we're going to try to see if we can get some of those lows that we saw earlier this fall 81.96 for crude. other places to watch for, in terms of specific themes and stock stories, a couple of big retail winners on earnings bath and body works, and macy's. bath and body works, an s&p 500 company, far and away the best performer, up 25% after the bell yesterday. better than expected results and they upped their forecast. macy's earlier this morning, not in the s&p, but a big department

store name, up 14% same thing beat bottom line, top line, and raised the forecast. those names are big, and the single worst performer in the s&p 500 so far today is also consumer discretionary it's norwegian cruise lines, after it gets double downgraded from the equivalent of a buy rating to an outright sell, it goes from outperform to underperform at credit suisse. the target price goes to $14 from $20 shares right now down about 6% $16.54 those analysts at credit suisse, brian, think that there could be some downside risk given their outperformance over other cruise line operators they think royal caribbean is a better value play at this point. i'll send things back over to you. >> the old double downgrade. dom chu, thank you very much all right. interest rates are on the move lately this after fed president james bullard says the s-word. no, not that word. he said seven. the fed may need to go as high as 7% to control inflation all of this, by the way, as some bond spreads post some of their

biggest moves, their widest moves in 40 years. rick santelli is at the cme with more seven? bullard, how does he rank on the santelli list of who i'm listening to with the fed? >> you know what, i think he ranks, though we like to listen to jaime bullard and james bullard historically has a lot to say the real question is, if you parse all the different comments he's made over the years, how accurate has he been i'll tell you this, if you go in reverse order, he's been pretty accurate lately with regard to inflation not being transitory but many of his other comments were not as exactly spot-on. and the word "may," it may happen, it may not happen. you may win the lotto, you may not win the lotto. listen, he's on the fed, he's not going to vote next year. all i can tell you is there's a lot of moving pieceshere first piece, 1,526,000 those were continuing claims today, brian

look at the chart. they haven't been that high since march 25th and if you look at a week-to-date of ten-year yields, you can clearly see that james bullard's comments did pop us up today, but in the context of the week, they sort of fell flat and if you look at what the ten-year looks like from a macro perspective from october 1st, considering that it was, what, october 24th, right in that area, when we made our hi high-cycle close, it certainly looks like the market has turned and james bullard's comments aside, it doesn't make much difference to the formation of that chart and on those spreads, yes, it is off to the races and not in a good way minus 69 on 2s to 10s. haven't closed then since 1982 and even though we have had some relief on the recession spread, yesterday, a close of minus 52 today, it's probably around minus 47, minus 48 nonetheless, it's still levels

that we haven't seen in 15 1/2 years. back to you. >> rick, i'll see your 15 1/2 years and maybe raise you 40 years, because if you look at the spreads between the two-year and the ten-year and the three-month and the ten-year, and the difference between those, and i'm going deep in the bond weeds here, i can see numbers that we have not seen in 40 years what is that telling us, in plain english, what does that mean >> in plain english, it means things like t-bills that are auctioned pretty much monday and tuesday of every week along with some cash management bills, they're in realtime. meaning, as the fed continues to raise rates. remember, meetings are six, seven weeks apart. it's not as those we're raising two meetings down the road you take it in chronological orders that's just like t-bills as these auctions come up, they'll keep moving higher this week, we had bills in the 3.45% area

so the two-year note is further down the curve zpstand it's goit be a little bit more squishy the further down the curve you go, the more variety of signals and effects and investor preferences get involved in where that interest rate ends up meaning a two-year will have a little less buying potential by overseas investors or people that know that tina is over -- there is an alternative now to stocks it's called the treasury market. if you can get over 4% on a t-bill, do you need to take a chance inequities? but the further you move down the curve, the more buying you're seeing. 10s, 20s, 30s. their yields are a bit lower than a two-year, and i think that dynamic will continue what ultimately happens is, the t-bills will follow the fed tightening, the rest of the further down the curve is going to look at the effects on the economy and we already see

they're putting in a couple of eases towards the end of the year, as prices start to move up and that's what the long end and that's the distortion in the long end and even in a two-year, which isn't a long end instrument, but it is when you compare it to a three-month bill >> i feel like 4% is the new 10%. rick santelli, always giving us 100% rick, thank you. all right, so with the federal reserve unlikely to back down on rate hikes, does the market once again get ahead of itself your next guest says, yeah, in the short-term, but also says, we are getting closer to a bottom what does it all mean? let's ask the chief equity strategist, senior portfolio manager at mai capital management there will be a day, and i want to promise our viewers and i rarely do this, because it's hard to keep promises all the time, chris. there will be a day that we do to the utter the words "federal reserve" all day long on cnbc. that day is not today or tomorrow or the next

how closely do you listen to every day a new speaker? >> oh, i think you put your finger on it, brian. and it's noice to be you again. if i could have the answer to any one question, it would be, how high are rates going to go having said that, i think in six months, you and i won't be talking about inflation nearly as much as we're going to be talking about recession, employment, so that statistical focus will change, and in an important way. having said that, the most important thing for investors to remember is that the market is not the economy. i think there's a good case to be made that the federal reserve doesn't go much further than 5 or 5.25. that we're bottoming around the september 30 lows. let me give you two reasons why i think that first of all, the market

leaders, the big tech stocks have finally given much the coast. you needed to see that the second thing is those stocks, amazon, amazon, google, microsoft, meta, they've all hit lows in the last six weeks, bu the market hasn't. the market is a bunch of different sectors and industries and companies that have been setting lows for the last six months or so costco set a low in may, is up 25% since then general motors set a low in july my favorite is the home builders, which everybody hates. they set a low in june and are up almost 20% since that low so underneath the surface, there's some foundations being built for the next leg upwards i'm not saying that leg upwards is coming anytime soon, but i am saying this looks like a bottom setting if we're not too far off base with the federal reserve rate hikes >> i hope you're wrong, chris.

i don't want to be talking about recessions and layoffs that's a lot more annoying time 1 semi, that's an interesting name you've got the issues between china and taiwan a lot of real risk growing there. you've got growing investments through the inflation reduction act and others chips act in the united states to build that capacity that would seem to be a negative, you clearly don't think so >> sure, well, clearly the geopolitical risk is real. we just feel like it's five years or more off into the future and we think anything in the next two or three or four years is likely to not involve a fighting war with taiwan the chips act actually could support taiwan semias they build plants, for example, in arizona. so what we like about taiwan semi, the whole semiconductor space, actually, reminds me of

energy two years ago, when it was left for dead and folks just said, don't go there, it's too dangerous. taiwan semi is the most advanced semiconductor manufacturer in the world. warren buffett just announced on monday that he's getting in, as i've been mentioning it for several months, i think they're irreplaceable. i love buying the best company in an industry that's so out of favor. >> there you go. >> it's a little less out of favor. it's popped a little off its low, but the chart is ugly amazon, tsm, chris, have a very good day we are just getting started. coming up, $2 billion. that is the daily estimated loss our economy could face if rail workers could go on strike next month. how closely are we to a deal or a total derailment from red hot to ice cold how much borrowing costs are starting to slam real estate

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welcome back to "the exchange." this is probably the biggest economic story that is happening right now that you may not have heard a lot about, until now the threat of a strike for nearly all railroads in america. this after a third union

rejected the tentative contract brokered by the biden administration the largest two unions representing rail workers have yet to vote on the deal, but the nation's entire rail system would be derailed if even one union decided to strike. the first union to reject the proposal was set to end negotiations this saturday, but they have pushed the bargaining back a cooling off period, if you will, meaning a strike could occur still as early as december 5th if a deal is not reached or if they do not extend the cooling off period if there is a strike, it could have catastrophic consequences on america's supply chains and it's estimated to cost the american economy $2 billion a day. that's probably low. joining us now to talk about the latest developments is ian jeffries, president of the association of american railroads. i'm shocked this story is not getting a little more national attention, given that -- and i don't think this is tv hyperbole. i mean, the rails stop working, the american economy shuts off

>> well, that's exactly right. absolutely first of all, thanks for having me today that's why we're going to see that $2 billion a day economic impact estimated, but we're not there yet. we have 7 of our 12 unions that have fully ratified their contracts. the two largest unions are up for ratification those numbers will come in monday and we have three that we still have some work to do but cooling off goes into december and we'll be working to find a path forward there. >> why are there 12 unions >> there's a long history in the railroad industry. >> and you've got to deal with all 12, and why do all 12 have to ratify. what if 9 out of 12, 10, then what >> historically, even if one or two don't ratify, other unions will honor a lawful picket and so it's critical that we get all 12 across the finish line. and that's what we're working towards. >> some of these unions are much

larger than others the smallest union is a couple hundred people, is that true what were to happen if the smallest union said "no" and the other 11 said "yes"? >> we would still have some work to do and we would have to find a pathforward with that smallest union because we aren't finished until we have agreements with 12 out of 12. we're happy we have a majority fully ratified we have a pattern in place there and we're looking forward to results on monday with our two largest. >> you see it on the graphic demanding 36 days of paid time off, sick leave. from what i understand it, talking to my colleague who knows a lot more about this than i do, how much of this is literally coming down to how many days off or sick days they get? >> i think we need to back up to how we got the tentative agreements president biden appointed a board of three independent arbitrators that the unions and railroads both made their proposals to, what they thought an agreement should look like. that board took all the information and developed a comprehensive framework, the

result of which is the highest wage increase in 50 years, a continuation of best in class health care with some of the lowest employee cost sharing of any industry pb and some other opportunities to create more scheduled work >> so what's the pay increase? >> 24% >> that seems pretty good. >> that's good it's historically high >> and it's a lot higher than -- when's the last time they got a major pay increase, though that's a big part of the 24% >> we've been negotiating for almost three years and so any employee, once the contract is tie average employee will get a check for $16 in back pay. they will get the back pay >> absolutely. >> our employees', and we're in the top 7% when it comes to compensation across every sector in the u.s >> okay, that zeems pretty good from a pay perspective you're negotiating your time

off, paid sick leave if i was a union, identify got a lot of leverage. i know the american economy needs me and i have a pro-labor administration >> absolutely america needs our workers. they come to work every day, tr 24/7, moving freight >> they are the blood vessels, them and the truckers of the u.s. economy >> you're exactly right. 40% of inner city freight moves on freight rails that's why it's important that we find a path forward, get these deals ratified and that's why i'm happy that we have 7 of our 12 >> there was a cooling off period how many more could you have let's say this goes into january. could we expect the rails to keep operating and you just kind of keep extending the cooling off period or do they sense this is a hard out, no more extensions? >> i think we're off to the point that we get deals done so our employees can get the

compensation they deserve or are due. that's the goal right now. >> could congress some in with a hammer and force things? >> congress is certainly engaged on this and historically, i'll say, the law we operate under has been very good at avoiding a work stoppage. it's been 30 years last time we did have a work stoppage, congress moved in 24 hours to stop it and implement it >> we're hoping you guys can get something done we're hoping it's good for everybody when you do get it done america needs the rails and trains are just cool >> i agree doesn't get more american that >> ian jeffries, i've got the conjunction junction thing in my head if you thought the ftx sam bankman-fried story could not get anymore bizarre, you are wrong. some new news and commence that are going to make your head spin plus, an exclusive interview with the finance executive behind the new diligence with the ftx deal

and how much more is that delicious barbecue going to cost the ceo of dickeys barbecue pit sheer. and we're starting to get headlines from general motors investor day ceo mary broars saying that gm evs will be profitable by 2025 three years from now may save yon monthly premiums andve yon prescription drugs. with original medicare you are covered for hospital stays and doctor office visits but you have to meet a deductible for each, and then you're still responsible for 20% of the cost. next, let's look at a medicare supplement plan. as you can see, they cover the same things as original medicare, and they also cover your medicare deductibles and coinsurance. but they often have higher monthly premiums and no prescription drug coverage. now, let's take a look at humana's medicare

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call the number on your screen right now to see if your doctor is in our network; to find out if you could save on your prescriptions, and to get our free decision guide. 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 health care has been one of the top three sectors this year. it has outperformed the broader market of course, like all sectors, not all areas within health care are created equal. we're going to do this it's called sector nomics, i call it double doming. we're doubling dom on

healthcare >> here's what we've got because health care is important, the reason why is not because of the work that we do, although it's very important it's also important to the markets, because health care is the second biggest sector in the s&p 500, second only to technology that's how important it is, it carries a lot of weight. over the course of the last year, we've seen a lot of outperformance from that health care industry side of things, that white line has been getting further above the orange line, the broader s&p 500, as the year has progressed now, within that health care overall sector, there are key component industries that have given that outperformance. it's been biotech specifically that's handled a lot of the upside momentum and work there biotech within that industry group is up 12 pgt health care providers and services up about 4%, pharmaceuticals, big pharma, drug companies up about 12%. meanwhile, it's been hardware makers, diagnostic, medical equipment companies that have been the real performers down around 26% if you're looking for which

stocks that have perhaps been beaten down a little bit more, that could have potential upside, according to data from fact set, these three companies have among the biggest upside potential if you believe sellside analyst target prices they are zoets with 32% of upside, bio-rad, and catalent, 42% upside for sure. much of this is because the stocks have been so beaten up that maybe the analysts haven't caught up yet, but if they are correct, those three stocks could have significant upside. if you take a look at the overall picture for health care, it is one that it had been a little bit of a laggard for quite some time. maybe this outperformance that catches up we'll see what happens, the second biggest weighting in the s&p 500. i'll send things back to you >> we'll see if you believe it do dom, thank you now to tyler mathisen for a cnbc update >> here's what's happening at this hour. nancy pelosi will soon step down

as speaker of the house. president biden calls her the most consequential speaker of the house in our history she will remain a member of congress, but she will step away from democratic leadership in the house. she says it's time now for younger leaders to step up >> with great confidence in our caucus, i will not seek re-election to democratic leadership in the next congress. for me, the hours have come for a new generation to lead the democratic caucus that i so deeply respect and i'm grateful that so many are ready and willing to shoulder this awesome responsibility >> meantime, steny hoyer, the number two democrat in the house also saying that he will not seek a leadership position in the next congress. he is backing representative hakeem jeffries to be the new democratic leader. the top u.n. nuclear watchdog says the new russian air strikes are endangering more of ukraine's nuclear power plants two plants lost connection to

the power grid this week, and that puts the cooling apparatus there into some risk, brian. back to you. >> tyler mathisen, thank you so much still ahead, how far might home prices in your town be ready to fall. the former ceo of zillow joins us with his insight and a really razor's edge time for that industry stick around

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welcome back, if there is one area of the economy that has now doubt taken the brunt of the fooesd tightening cycle, it is housing. and today's data continued to bring the pain, diana olick joining us now with the latest on arguably, i think, diana, the most important of the u.s. economy, far more than the stock market >> absolutely, who am i to argue with you on that one home construction just continues to drop. and i'm going to focus on single-family, because that's where higher mortgage rates are really hitting starts dropped about 6% in october month-to-month, down

nearly 21% year over year. that annual drop is growing fast and building permits which are an indicator of future construction dropped 3.6% for the month, down 22% year over year those annual declines also getting steeper. the home builder etf reacting seeing its worst week since mid-september, but builders aren't seeing the demand and now they're having to offer more incentives 59% reported doing that in november, according to the nahb, a big jump from september. and that includes paying points on the mortgage, rate buydowns, and 37% of builders said they cut prices in november, and that's up from 26% in september. the average cut was about 6% on the brighter side of housing, for consumers, at least, sky-high rents are finally starting to cool they were still up 4.7% in october year over year, baa that is the slowest annual increase in a year and a half, according to realtor.com it also released a false survey

showing the vast majority of landlords intend to raise rents in the coming year and there was a big jump in the number of tenants who said they were going to look for something cheaper, because their rates have gone up i wonder how much longer those landlords can keep doing that. >> i think that's going to be the question why don't we just extend the conversation and bring in somebody who has been in the thick of the housing boom in both cycles. he says this is not 2008 all over again, but home prices will continue to fall joining us is spencer raskopf former ceo of zillow diana is still with us when i was perusing zillow for fun, poking around neighborhoods in various parts of the country, and i would say, i don't know, very anecdotally, 50% of the homes i looked at had a price cut little banner on top of them how pad do you think this is going to get >> so home values nationwide are

going the decline a little bit, but this is not 2008 and the reason is that 2008 was a credit bubble, millions of people got mortgages that they shouldn't and then we had a foreclosure crisis what you're seeing right now in the market, that diana presented so well on, is that everyone is sort of stuck. in this game of musical chairs, the music stopped when the fed started raising rates. and normally in musical chaser, you're sort of scrambling because a chair is missing everyone found a chair, but now we're stuck until the music starts again if you own a home already, you're stuck, because you probably have a 2 to 3% mortgage you can't sell and buy at a 7 or 8% mortgage. so you're kind of stuck. and if you rent, you're stuck because you can't buy because you have no appreciated home equity to trade into a new home. so nothing is happening, no one's moving because of this rapid appreciation in mortgage rates. and by the way, i lied to the audience, diana olick is no longer with us she's missing. somebody locate diana, let me

know that she's all right. well, that's a lot of stuck. and how do we get unstuck? because not only do people have so much money tied up in their homes, there's two other aspect os this that really worry me number one, home equity lines, people who have tapped that, where do they stand. and maybe you don't know the answer to this, spencer, what happens if my home was worth $200 million more a year ago, i took out $70,000 on home equity lines to do some project and now my home is worth less than my mortgage plus the home equity line what happens >> you should be okay, as long as you can keep paying the interest on the heloc. americans still have $29 trillion of home equity. so again, 2008 was a very different situation, where so much equity was wiped out and people were underwater and you had regular foreclosures, compounded by strategic foreclosures a strategic foreclosure is when someone just set, forget it, i'm so far underwater, i'll walk away millions of people did that in 2008 that's not happening now

we have so much equity, there's been so much freerks since 2009 until this recent downturn >> and i think it's an important point you're making. and unfortunately -- i was kind of in the thick of things in '07. did a special in '07 about subprime i was called a fearmonger, i get it and it was scary at time, we know what happened i'm not saying we're there now i'm not worried about right now, spencer. i'm worried about six months or a year from now, if this trend continues. if it pauses here, the pace of home declines were probably okay >> well, what you have to remember is the limited supply that's the dynamic that is kind of the elephant in the room in this housing situation and diana just reported, for example, home starts are down 21% year over year so we just don't have enough homes out there. there's not enough supply on the listing side, because people are locked in low mortgage rates, so they're not likely to list there's not much new construction inventory so what will keep home prices not quite flat, they're going to decline a little bit nationwide,

but what will keep them from falling off a cliff is limited supply on the listing side what we're really seeing is a decline in transaction volumes that is declining a lot. >> are there enough all -- we always forget about the all-cash buyer, who we think, who the heck is buying a house with cash it's a lot bigger percentage than i ever thought. we saw some data in parts of new jersey, like 30% of all home transactions, are all cash the other aspect is, you know, you own your home for 30 years, you bought it for $30,000. it was worth $2 million, now it's worth $1 million, you're not going to get everything you yao wanted, but you'll still make a lot of money on the home sale >> that's still 4.5 to 5 million real estate transactions a lot of the publicly traded companies have been completely discarded, because real estate is out of favor, but there still are a lot of real estate transactions that are going to

happen about 100 billion of real estate commissions that have been in this down market and it's a huge part of gdp and there's a lot of economic activity around housing, even if it's not as good as it once was. >> we'll just go to picasso and check out second home ownership. spencer raskopf, appreciate that sobering view. >> coming up, how is this for a quote. never have i seen such a complete failure of corporate controls, end quote. that is from the newly appointed ftx ceo and bankruptcy trustee he is the same guy that oversaw enron's bankruptcy, and that's what he said about ftx, and by the way, he said a lot of other stuff. and you'll want to hear it and u llnext

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not mincing words about the company, saying that he has never seen such a, quote, complete failure of corporate controls now, keep in mind, this is the guy who oversaw the enron unwind we'll get to more on that in a minute kate rooney just sat down with the finance exec to talk about failed due diligence for his proposed buyout of ftx i shouldn't say failed they didn't fail they just looked at the books and department like what they saw. everybody else apparently failed what did he see that spooked him? >> yeah, brian, so i sat down with binance's chief strategy officer here in chicago. he essentially said that he was shocked with what he saw when they went through ftx's numbers. a reminder, this was a nonbinding letter of intent. they said that they were looking to buy this company in earnest and he told me that he had 30 days to do the deal. they got two hours into the diligence process. they decided within two hours

that the company was beyond saving >> when we started to meet with these teams, which by the way, it was like a bomb went off in that place we were getting on calls, people were crying, even though we were within in first 12 hours of crisis, our attorney quit within the first two hours of setting up the data room it was complete pandemonium over there. and it was pretty obvious that once sam went completely silent on them, the entire organization just fell to pieces. >> and binance was a competitor, but it was also an early investor in ftx. patrick homan, the chief strategy officer told me he thought that capital venture officers were drawn in by sam bankman-fried's credibility. he had some harsh comparisons. he compared it to two pretty high-profile financial frauds. >> i think looking back on this now, one of two things are true. either sam was completely

delusional, which i think a lot of people was elizabeth holmes and her mind-set, or he was so manipulative that he was able to set this cult of personality and do whatever he deemed like a bernie madoff. there's no middle ground it's one of the two. and that is going to decide whether these investors were manipulated or negligent i think it's probably more likely that they're being manipulated. >> and brian, we did reach out to ftx and sam bankman-fried on those accusations. no comment from the companies, but the former ceo, sam bankman-fried now saying that he is still looking at financing options despite that company filing for bankruptcy and that process really being underway. up-to-the-the new ceo, john wray, out with his own pretty sharp criticism of what happened here at ftx. and as you mentioned, this is the same john wray who was in

charge of restructuring enron. he said, never in my career have i seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information. from compromise systems, integrity, and faulty regulatory oversight abroad, he goes on to say to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented he also talks about some of the corporate funds for ftx that were used to purchase homes and other personal items for ftx employees in the bahamas one of the most pervasive failures, as john wray put it was the lack of lasting records, a decision making bankman-fried set things on auto delete and encouraged employees to do the same and their corporate audits were done by a firm headquartered in the me thatverse john wray also makes it clear that sam bankman-fried doesn't

speak on behalf of the company he is the former ceo and he does make what wray calls erratic public statements. he made his comments to a vox reporter among those, sam bankman-fried said, "f" the regulators trying to make it clear that sam bankman-fried is not a spokesperson for ftx >> i would like to talk about this for the next 20 minutes i doubt the producers will give it to us there's a lot to unpack. it wasn't really an article that sam bankman-fried thought was his reporter, that established a bunch of screen shots, in which sam bankman-fried effectively said, and i'll summarize, my whole public nice guy persona was fake he's going to clearly throw his girlfriend under the bus he basically blamed it on alameda research, which means he's going after her that might be a window in the illegal strategy, but kate, what

really caught my ear from the john wray comments, and we can't speculate, but when you read your kboet, they were kind of in the middle and i posted this as well. he called them, quote, potentially compromised individuals. i have no idea what he meant by that i know you don't either. but when i hear the words "potentially compromised," i'm thinking, by whom? how? >> so one of the things that he may have been referring to is there was a suspected hack that happened on ftx for about half a billion dollars was moved from that platform. there is -- i mean, the bichance chief strategy officer said this was his thought, what he thought happened, that either former ftx employees or current ftx employees may have had access or moved some of those funds. that is what a lot of people are pointing to in terms of the idea of these being compromised, but

clearly those that were running the show here in the eyes of john wray are not equipped to restructure this company and give any sort of money back to shareholders >> and outside of binance and maybe others we don't know about, super smart like duke mbas just gave them billions of dollars for institutional investors, not just duke, but duke, good schools, mbas everybody missed all of this stuff. i urge everyone to read that fox article. it was just bizarre and scare and weird, and now they're being called compromised there is so much more to come. kate rooney, thank you very much there is a lot more to come on this story, folks. a lot more by the way, all the politician who is took money, give it back. we'll start tracking that. up next, mcdonald's proving they've got pricing power. what about smaller players like dickey's barbecue pit. we'll find out the ceo is with us next.

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one more thing before we go, and that is ruining christmas. steve cocoa vac, you said a lot of people are going to have a miserable christmas. >> i'm going to play the grinch. there are not going to be many iphones under christmas trees. this is because chinese state media is reporting foxconn needs to hire 100,000 more workers to get back to full production following the covid lockdowns a couple weeks ago this is the snarl apple warned about. about a week and a half ago, covid shut down at this so phone iphone city. they'll sell fewer iphone 14 pros than expected

apple was counting on selling more expensive pros to meet sales growth targets for the iphone segment because unit sells are going to be relatively flat this year folks were choosing that more expensive pro phone over the cheaper ones now they have to wait well over a month. if they order today, makes it more difficult even unlikely iphone sales will hit the mark this quarter apple also says the demand is still strong for the 14 pro, so it's possible sales will carry over into next year once foxconn can catch up and start making it foxconn has not commented on these hiring targets >> shocking. >> yes, exactly. but if you wanted to get one in time for christmas, it's already too late, brian. if you order a 14 pro, it doesn't come until december 28th >> that's not the end of the world. >> that's if you order today not black friday today. >> how about next year getting better >> unless there's another covid shutdown, which we don't know. we know china is talking about easing back off those policies,

but it's not really happening. >> the city where they make a lot of this stuff, they have a major shutdown in fact they have rioting now because people are running out of food. that's a totally different issue. bigger issue than the iphone, christmas is terrible. steve kovach thank you, ebenezer. that's great >> i prefer grinch >> god bless us, every one that does it for t exchange. er lunch starts right now. welcome, everyone to "power lunch," where we charge a lot less than a ticket to a taylor swift concert. i'm tyler mathisen along with contessa brewer the fed says the inflation fight is far from over the benchmark rate may have to go a lot higher than previously thought. is the risk of recession rising, and is it priced into the market plus a bargain hunters holiday, or will consumers pay up for high end areas. we'll see which stocks could come out