get something from macy's credit label, a product that looks -- >> there is nothing hot with electronics. how many flat panels can we have >> that is definitely a stock -- >> not knocking them electronics in general, you know >> they saw so much pandemic growth it is tricky. >> melissa repko we'll see you next week. we'll see all of you next week "power lunch" starts right now and we at "power lunch" will see you right now, along with contessa brewer, i'm tyler mathisen here's what's ahead. maybe things aren't so bad the latest economic data better than feared. goldman sachs says the u.s. will narrowly avoid recession next year we're going to ask a veteran strategist if the worst is over. and where he may be seeing opportunity right now. on to the crypto contagion, shares of crypto bank silver gate down more than 25% this week 50% this month

investors want to know about the company's ftx exposure and what crypto's credibility crisis means for the bank's longer term business contessa >> hello, tyler. all the major indices on pace for a down week. you have the dow, though, just barely hanging on to the green today, up 40 points. the s&p 500 just barely in the red, down three points the nasdaq composite down half a percent. more big retail movers here, ross stores higher on better than expected results. foot locker posted an improving outlook. and gap, there you see gap up 5.5% you have foot locker up. ross up 10.5%. williams sonoma trading lower after warning about margin head winds here crude breaking below $80 a barrel on track for a second weekly decline, about demand concerns out of china you're seeing it is off now 3.16% on the day tyler? >> thank you while it is easy to focus on all the downbeat data, it is good to

look for the green chutes. this week we did get a few inflation came in a little bit weaker than expected retail sales a little bit better than predicted as were some retail earnings existing home sales not so great. but they weren't as bad as feared mortgage rates fell hard for some reason. washington once again divided. the government, that's the market's favorite outcome most of the time, according to conventional wisdom. and super hawkish fed speak didn't crush the market. goldman sachs says a recession may be avoidable are things maybe not as bad as we feared? let's bring in a is as bad as we fear, richard bernstein. so, now, i wonder how you process all of that -- which i just said, which points to maybe things that are a little better than had been expected up against your thought that interest rates are actually going to go higher and stay

there longer than the consensus. >> yeah, well, tyler, you almost answered your own question if things aren't as bad as people think, the natural corollary to that should be that the fed will be raising rates higher than people think the reason that people believe that the fed has to pivot to use the word of the day is that they believe that the economy is on the precipice of some serious economic slowdown, recession or not recession. you know, the data is slowing. of course, we know that but it is hard to argue that the economy is on the precipice of some toe curling recession. >> so, a good relatively speaking, a better than anticipated economy actually gives the fed the cover it might need to raise rates higher to absolutely crush inflation >> i think that's right. and i think in particular if you want to look at one part of the economy, i think people should be watching the labor market

the labor market is incredibly tight. so far the layoffs that we have been seeing, it appears as though workers are being absorbed very, very quickly into that labor market. and weekly jobless claims came out yesterday, and they still show a very, very tight labor market that's important because recent data seemed to suggest that over 75% of current inflation is attributable to the tight labor market, not the supply chains, not the inventories,not all these different things it is a labor market issue if you're the fed, you're watching the labor market like a hawk >> and here you're getting this assessment from goldman sachs saying maybe recession is avoidable. do you think the markets have just completely ignored the possibility of a full blown recession next year? >> no, i don't think that. i think they're kind of trying to discount somewhere between -- i don't think people really know yet, but i'll tell you what i don't think the markets are

looking at adequately and that's the probability of a profit recession in 2023. economic recession is one thing. profit recession is another. >> explain the difference. >> yeah. so the difference is that we'll see profits growth turn negative, leaving out the overall economy, right very often when you have an economic recession, you have a recession with it, but there is many more profit recessions than economic recessions. and the reason that's important and the reason i don't think that the markets are adequately paying attention to that, you're still seeing a lot of enthusiasm for lower quality bonds, still seeing a lot of enthusiasm for more speculative stocks. junk has never outper forred treasuries during a profit recession, but yet you still have people talking about credit and about lower quality bonds and everything like that that says the market isn't really paying attention to the potential for a profits recession, which i would argue is much moreimportant right now. >> okay, so, given that, can i just ask if you think there might be a profits recession

next year, where do you think -- what kinds of sectors do you think would be a good bet for a profits recession? >> right so we have got this very -- this very unappealing combination right now of the probability of a profits recession going up, and the fed tightening and i would argue that the volatility you're seeing in the markets right now is purely because of those two things, right? it is right out of the textbook historically and so what works when the fed is tightening and profits are decelerating it is necessity. not desires, it is necessities so what are you seeing you're seeing consumer staples outperform consumer cyclicals. you're seeing healthcare outperform it is all about necessities, quality dividends, things like that, as opposed to desires about the future, right? y you hear people talk about the importance of necessities. that's normal for this kind of environment. >> let me just quickly ask you,

are the fed hawks being too hawkish? we'll hear from ron insana later who will make essentially that point, they're missing the point, they're being too aggressive, they're missing signs that inflation is slowing and maybe even declining do you agree with that or disagree >> i don't think whether we think that or not is relevant. the point is, if you were the fed, right now you have inflation at 7.7%, you have unemployment at 3.7% they have a dual mandate inflation and unemployment both are very, very strong right now. i think if any of us were in the fed chair, we would be talking about tightening that would be it i think it should be a full stop, inflation 7.7, unemployment 3.7, stop nothing else to discuss. >> we'll pick it up with ron insana in a half hour's time richard bernstein, thank you have a great thanksgiving. >> thank you, you too.

>> the research quote of the day, we didn't get to this -- >> i think that is well said >> it has been one week since ftx filed for bankruptcy and the question remains, who else is affected the fallout taking down alameda research, blocked for filing bankruptcy genesis announced it paused withdrawals. one publicly traded company says its position remains unaffected. crypto bank silver gate says less than 10% of its $12 billion in customer digital asset deposits were from ftx, but the stock is getting punished. down 10% today, 28% over the past week. with us now is silver gate bank ceo alan lane. good to see you today. so, clearly you think you're probably under more pressure, your shares are under more pressure than is appropriate right now, set the scene for investors who have been watching this whole thing unfurl day by

day and unravel and just wonder is there any immediate future to the crypto world >> yeah, thank you for the opportunity to be with you this afternoon. i really appreciate it and you're absolutely right. there is -- there is a lot of stress in this ecosystem right now. but it is important for folks to maybe take a step back and understand that at silver gate, we built our platform purposefully to be able to withstand this type of stress. and that is demonstrated by the fact that we carry cash and investment securities in excess of the amount of deposits that we hold on our balance sheet in this initiative. and the way that -- the way we solve problems for our customers is we provide for them 24/7/365 access to the u.s. dollars, we do not trade in cryptocurrencies, we are a u.s.

dollar bank, regulated by the, you know, the federal reserve, in the united states and we provide 24/7/365 liquidity to this ecosystem. so whether the prices are going up or down, whether the volatility, the volume is going up and down, silver gate stands ready to serve and i'm happy to say our platform continues to operate unaffectedby this. and, you know, i'm happy to continue to answer any questions that you have. i appreciate the opportunity to be here. >> so, forgive me for not understanding exactly how your bank operates. but you call yourself a u.s. dollar-based bank, earlier you had $12 billion worth of deposits are those dollars in -- are those deposits in u.s. dollars or are they in some form of cryptocurrency bitcoin >> yeah, tyler, great question and they are absolutely u.s. dollars. we do not trade in any digital

asset. we hold u.s. dollars our flagship product is referred to as the silver gate exchange network. and importantly it is not a cryptocurrency exchange, but rather it is a -- the silvergate exchange network is a network of exchanges and other market participants, primarily institutional investors, who are interested in purchasing and selling bitcoin and other digital ssets. and when they want to purchase or sell, they're likely going to engage with a digital asset exchange, or an otc desk and they're going to want to send dollars to that exchange or otc desk and when they do that, they're going to use silvergate for that functionality for the u.s. dollars once the u.s. dollars hit the recipient, at that point the

other leg of the transaction will be completed, which is on the blockchain as an example of someone wanting to buy bitcoin, then they will transact the thars through silvergate and the bitcoin will transfer from one wallet to another over to bitcoin protocol, silvergate is not involved in that part -- in the bitcoin protocol part of the transaction. >> so, it would seem to me then that an awful lot of people, myself included, are not understanding how you do business and that's why your stock is getting punished so much apart from the fact that i suppose with all of the who-ha over ftx and others, apart from the fact that the entire crypto universe seems right now to be a little tainted or in bad odeor, is how i would put it, am i

right about that are people not understanding how you do business and what role you play and the fact that you're not exposed to bitcoin directly, but you're inferenc inferencially exposed to it. >> i think that's well said. it is a fundamental misunderstanding as to the role that silvergate plays in this ecosystem. i do want to clarify that we do have some exposure to bitcoin on the asset side of our balance sheet, so that deposits sit on the liability side, and we hold u.s. dollars and investment securities in support of those deposits we also have a product that we refer to as send leverage, a bitcoin collateralized lending product. at the end of the third quarter of this year, we had a little over 300 million in outstanding loans against bitcoin. but it is important to note that for that particular part of our

business, that bitcoin is overcollateralized as of september 30th it was 2 1/2 times overcollateralized or the way bankers sometimes speak, 40% loan to value. the price of bitcoin would have to come down 2.5 times, very significantly in order for us to sustain any loss whatsoever on that lending and the reason we billed it that way and the reason it is bitcoin only is because bitcoin has been operating the protocol has been operating with 100% up time, uninterrupted, since before we got into this business in late 2013 and so bitcoin is -- was really the initial -- it is the real thing, tyler and we lend against that and importantly when we lend against it, we take control of the bitcoin collateral through one

of our custodial partners. >> so you're overcollateralized with respect to those loans? >> that's right. significantly overcollateralized. >> if the loan goes bad, you have plenty of bitcoin collateral to cover that bad loan >> absolutely. and one other important point, we have the ability to sell that collateral if we need to do cover a margin short fall, if the price of bitcoin is plummeting rapidly we can sell that bitcoin and we can sell it 24 hours a day, 365 days a year. >> got it. >> you gave an update this week after the market closed saying that total deposits declined about $12 billion to $9.8 billion. we just went through the list of -- ftx was a client we're looking at blockfi, voyager, genesis, and questions about the whole ecosystem. what happens if crypto freezes up to you still have an operating

business >> yeah. great question contessa, we do, and just to clarify, i think when you're asking the question, you might have misspoke as to the reduction in our deposits. at the beginning of this quarter, we had a little over -- between 11 and $12 billion in deposits and this initiative and what we reported on earlier this week is quarter to date our average deposits in this initiative are just under $10 billion. >> it did not decline $12 billion as i likely said >> absolutely. yeah >> we got it. >> thank you for clarifying. >> you bet now, to your question, if crypto freezes up, we're still a bank with access to the federal reserve. our payment process is a 24/7 api enabled process.

so our customers can still access their u.s. dollars, 24 hours a day, 7 days a week now, they can only, you know, bring it on and move it off during normal banking hours, during the week. but that was exactly the problem that we solved for this industry several years ago, when we launched the silvergate exchange network was the ability for our customers who were trading digital assets 24/7, but they could only access their dollars monday through friday. so we built the send and created and did it with api functionality so our customers can actually access their dollars to trade digital assets 24 hours a day, 7 days a week. and that continues to operate uninterrupted. >> alan, we appreciate that you have come in today and given us a primer on your business and its exposure to what is happening here thank you very much for your time >> absolutely. i really appreciate it you guys have a great day. >> thank you, you too.

coming up, place your bets we'll speak to the analyst who says draft kings is on a path to profitability, and the stock can surge 40% from here. plus, the risk of more restrictive fed policy, could a super hawkish central bank do a lot more harm than good? we hinted at that. ron insana will be along to talk more about it. as we head to a break, showers of the dating app grindr surging after completing its spac merger it goes public at a time when its rivals are stumbling match down 50% this year bumble bumbling, tumbling, fumbling 30% nus. "power lunch" in two mite

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online sports betting is taking off and that's what piper sandler says will happen to shares of draft kings. the firm initiating coverage of the company with a buy rating, says the stock could surge 40% from here, and that profitability concerns are unfounded. those concerns, though, have pressured the stock. it is down 40% this year and, boy, it took a big tumble after earnings reports suggested that they would see a bigger loss next year than expected before turning profitable maybe in the fourth quarter of next year joining us now is the analyst behind this call, matt farrell, research analyst at piper sandler. good to see you. >> good to see you too thank you so much for having me on today. >> your initiating coverage of

draft kings at a time when you have price targets on this company as high as -- not you -- your other analysts -- as high as $38, and as low as $12 or $13. give me a sense of why you think that this is a good company to own right now. >> well, coming out of q3 earnings, the company did miss its initial 2023 ebitda guidance but from our perspective, ebitda estimates are now properly reset. the company is still targeting to be adjusted ebitda profitable, in q4 of next year, and adjusted for all of 2024 and while we don't think that -- while we think that -- that the adjusted ebitda is rightfully under under concerns for investors, we think it is a little misguided as it is missing the forest through the

trees. if the company were profitable in forward 2022, there might be a lot of questions on whether the industry as a whole is viable the company has established a state by state profitability cadence, with five states profitable last year and total of ten states profitable this year and so we are giving the company remaining patience and until the state by state profitability play beak unwinds, you know, we like the stock at current levels >> okay, but what we heard from some of the competitors, and much smaller competitors, they don't have the size nor scale of draft kings. caesar's, for one, said october's profitable we're looking atpotentially a profitable fourth quarter in our digital business really sports betting here, because overall the company is very profitable. we're looking at a potentially profitable fourth quarter in digital, depending on what happens with mattress mat bet. we heard something similar from digital pen about their business these companies have

significantly accelerated what their goal for profitability has been, if you're marking whether you are profitable in a quarter on what one guy in texas bet or not. so how are you comfortable with draft kings pushing this off until the end of 2023? >> you know, from our perspective, they haven't really been pushing this off. they have been talking about q4 of 2023 for some time. and, look, these new states come up, there is investments that need to be made in order to establish a market share leading position which the company has done in the majority of the states that they have gone live in and, you know, the other thing i would just say too is as the company, you know, further expands across the country, they're able to leverage national media spend, rather than local spend, which should help on their profitability path as well. so, again, we're in the very, very early innings of this industry, with a long tailwind

in both sports betting and i-gaming we are looking at this from a longer term perspective rather than, you know, one quarter here or there >> what is the anverage acquisition cost per customer and when do they become profitable on a per customer basis? >> yeah, so, it varies on the -- varies on a custody customer basis depending on a lot of different factors. when you look at it as a whole from a state perspective, typically a state becomes profitable in a two to three year time frame, with the majority of the investment made up front and over time >> so what do they spend to acquire a customer what do they spend to acquire a customer >> it varies based on the customer, right, not every customer is different. depending on the size of the bets they make, the frequency of the bets they make, the skill of the customer, even the location

and where they are in sort of the cohort, right? the customers that are -- >> there has to be an average. i agree with that, i'm a dumb ass and i'll make a lot of bad bets i'm not costing them in terms of what their advertising spend was or bet credits for things on my first few bets but they make money off me fast because i'm dumb but, what is the -- there has to be an average in there somewhere. >> again, it is hard to say on an average basis you're mixing in all of these different numbers across all of these different states and so, you know, they are spending significant hundreds of millions of dollars in sales marketing each quarter and they have over a million paying users at this point in time so you it think it is a costly endeavor, but there is a rather large lifetime value here, right? i mean, more and more people are starting to use these applications every day, and, i mean, i don't know about you,

i'm a user myself and i'm looking at the app every day, placing bets every single day and there is a lot of value in me, right? and there is a lot of other people out there right now >> that's what people say about you, matt. there is a value in you. right there. have a great weekend. >> yeah. thank you so much. >> you know what's interesting, you had fan duel having a big capital market, saying tans inthey came out and gave all kinds of details about how they're spending less to get a customer than some of stheir competitors and keeping them for longer. and not only that, they are the market leader, 42% of the market share in online sports betting across the nation according to state regulator reports and what we saw is -- >> is fan duel. >> fan duel and draft kings is the biggest competitor after that and then comes bet mgm and everybody else has less than 10% market share from there.

and most have less than 2% fan duel believesit can expand that gap between its lead and the next biggest competitor in part because it spends more efficiently to attract customers. >> all righty. interesting conversation there they make money. >> you know what, there is value in you. >> there is a lot of value right here, baby up next, there seems to always be something in the way of carvana, laying off 8% of its workforce. declines continuing weeks after reporting signet significant net losses cybersecured, palo alto soaring on a massive beet citing strong demand among heightnd cyberthreats details on both those stocks when "power lunch" returns we'll be back with all the value we can bring to the table. ♪♪ we all have a purpose in life - a “why.”

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workforce, 1500 people, about, in an effort to reduce costs and get more efficient across its businesses the ceo saying as a result of the economic environment, the company continues to face strong head winds and there they are again the head winds, adding the near future is uncertain. he says the uncertainty is especially true for fast growing companies and businesses selling expensive often financed products that can easily be postponed. he added the company failed to accurately predict how this would all play out the stock is down 96% this year. brian sullivan has your cnbc news update now. brian? >> thank you attorney general merrick garland named war crimes prosecutor jack smith the special counsel to consider charges against former president trump. special counsel overseeing the mar-a-lago classified document case as well as other key aspects of the probe into january 6th insurrection colorado democrat adam frisch conceded to gop incumbent

lauren boebert in one of the last house races yet to be decided. boebert leads by 500 votes with nearly all the votes tallied, a recount will still likely be required under colorado law. and taylor swift expressing her anger against ticketmaster over the botched sale of her concert tickets, said it was excruciating to watch and, quote, her words, pissed her off. a lot of fans felt like they went through several bear attacks to get tickets in washington, the capitol hill christmas tree arrived. 78 foot red spruce made the trip from north carolina. crews have less than two weeks to decorate the tree with thousands of lights and a massive star, lighting ceremony set for november 30th. listen, that tree, i don't know if it walked or hitchhiked, that's a hell of a journey my kudos for the tree for making it all the way from north carolina >> that's the one in front of the capitol there. >> that's what it says.

>> like an ent >> thank you, brian. ahead on "power lunch," investors getting fed up with inflation showing signs of easing at least a little bit and are they making a mistake by raising rates further? ron insana will weigh in next. plus, what's in store for retail in a mixed week for the group. some companies holding strong, others waving the white flag you'll always remember buying your first car. and buying your starter home.

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well, folks, we have less than 90 minutes left in the trading day. we do it here every day, we get you caught up on the stocks, the bonds, the commodities, the markets, and ron insana, he says the fed may be making a mistake. we had an exciting week,it jus doesn't look like we're going to -- it doesn't look that way when you look at the week as a whole. here are the weekly numbers. all the averages lower for the week but only the dow, 2% for the nasdaq just a little bit of change there on the stocks. healthcare once again among the leaders today. united health boosting the dow cigna and humana, nice gains as

well there you see those. energy, worst performer, oil falling, didiamondback down 5% there is eog, chevron down 2%. there is the -- shall we go to bonds? rick santelli, i'm told is standing by in chicago rick >> i am here you know, it has been such a fascinating week if you look at a week to date of two-year note yields, 4.5%, they're up 17, 1-7, basis points on the week. but if you look at a ten-year note yield at 381, it is unchanged on the week. bonds at 392 are down ten basis points on the week we all know that fed speak this week has been anything but flag matich they're wild out there to think the longer maturities are so ignoring fed speak with

regard to the slaying of inflation and the addressive tendencies of the fed just underscores how investors pretty much uniformly are looking for a major slowing in the u.s. economy. look at a week to date of three months to ten year, minus 43 basis points, certainly not the most inverted it has been, but it is still at levels we haven't seen in 15 1/2 years minus 51, 52 earlier in the week was the worst levels and if you look at the dollar index, many traders believe it peaked in september. right towards the end, it traded a bit above 114, and even though it is fighting to survive today a bit it really does have some technical issues that traders are dealing with to the downside, and that's very important. especially when you think about emerging markets and other corporations not so much if you're purchasing within the borders, but inflation is moderating to some extent tyler, back to you have a great weekend. >> we'll talk more about that

moderating inflation just a minute with ron insana rick santelli, thank you a big move lower for oil today speaking of moderating prices. let's get some details from pippa stevens, commodity desk. >> oil is capping off an ugly week here, itumbling below 80 bucks. it closing well above the worst levels of the day. at the session low, wti hit 7724, a price last seen on september 28th several key uncertainties are driving this market, including china demand, russian supply, the u.s. dollar, and the strategic petroleum reserve. evercore isi saying these uncertainties will shift in the coming quarters and all skew positive for crude fundamentals. turning to energy stocks on track for the first negative week in five, with a decline of more than 2%, marathon oil, co-tara and baker hughes are among the biggest laggards this week finally, a check on gas prices

ahead of next week, when nearly 55 million americans plan to hit the road for thanksgiving. prices have come down a lot at the pump, with the national average now sitting at $3.70 but it is all relative gas buddy forecast prices on thanksgiving averaging $3.68 which would be the highest for the holiday on record. tyler? >> pippa, thank you very much. let's talk about a little bit about the fed in a new cnbc op-ed. our next guest says the central bank could be on the verge of making a policy mistake if they take rates much higher after bullard suggested a fed funds rate as high as 7% let's bring in ron insana, a senior adviser you think the fed is looking too much in the rear view mirror and not enough at what is happening now and likely to happen in the future explain. >> absolutely. look, the 7% number that they

thought -- that president bullard suggested was i think in a certain way absurd it would go well above what is already a declining inflation rate, becoming extraordinarily restrictive and most definitely drive us into recession. when you annualize the last four months of cpi, it is running at just over 2% rate. 2.5%, thereabouts. and the core rate is below 5% annualized over the last four months i think they're looking back at cpi when they should be looking forward at market-based indicators all which of are telling us inflation has peaked and on the way down and there is no reason to believe there is any other factor that might push inflation in the opposite direction. >> it is interesting because we in the madiae media and a lot observers look at the year over year rate and see it at 7.7% they're not as prone to look at that month to month change, which you're pointing to, and then to break apart the number and look at some of the

constituents of inflation or disinflation house prices are going to come down, i think, a lot and that's going to be a major weight on inflation in a good sense. it would seem to me. >> there is a lag defect there the fed uses owner equivalence rent it takes six to 12 months for that to show up in the data. forward looking prices on housing and we saw existing home sales fall 28.4% year over year, reported this morning, prices are going up at a much slower rate, by next year, some houses on wall street are estimating 15 to 20% decline in home prices. that's real disinflation, deflation in the housing sector. if you were it take rates to 7% and further destroy residential real estate, there is no period in our history we had a real estate recession not followed by a general recession, and the inversion of the yield curve that rick santelli mentioned is as steep as anything we have seen in modern times, as deep as

we have seen in modern times that is on the cusp of almost guaranteeing us from a forward-looking perspective, a recession of some note in 2023 >> ron, bullard got a lot of attention for the high end of that range all the focus was on the 7% and almost none on the 5%. if we go to 5%, do the risks that you're raising still apply? >> well, to an extent. i think so we have seen leading economic indicators reported this morning, down for eight or nine straight months, all kinds of indicators suggesting that we're headed towards a recession, nothing has -- of systemic nature has broken yet. but i think it really depends how aggressive the fed gets, and whether or not they're willing to escape the gravitational pull of the criticism that we're dealing with a repeat of the 1970s, which we talked about this a lot, i don't believe we are, i think it is much more like a post war environment.

i think they have the wrong analog and if it goes to 7%, we would be paying a dear prasice o that policy error. >> it seems we need a banner made out at all times ready to go that says how fast, how high, how long, right? >> yeah. jay powell will be speaking november 30th from what i read today and he'll be talking about the current state of the economy and we'll see what he says and whether or not he endorses that idea i would argue that jim bullard intellectually has been among the least consistent fed reserve members i've seen over the last dozen years. he rocks the financial markets on many occasions. >> what residence are you in right now? >> i'm not i'm in southern california, the westin in costa mesa, california i misplaced my computer so the edge of the bed is showing, i apologize.

>> you're a traveling man, i know that. good to see you. have a great holiday >> thank you. up next, the demand for defense. consumers might be cutting back on spending, but cybersecurity remaining a priority and it is helping palo alto at nt. th'sex

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shares of palo alto networks up 7% today, giving a boost in our stock draft. it turns out even during a downturn, people need cybersecurity. go figure. let's go to frank holland for a deeper look at the report. hi, frank. >> hey there, contessa i wasn't expecting that real housewives reference there palo alto networks cited head winds like the rising dollar and tightening it spend, but said demand remains strong for cybersecurity. the report getting a big boost including z-scaler, tenable and jen all outperforming the nasdaq and shaking off higher rate concerns that appear to be weighing on the broader market analysts tell me the most bullish sign is palo alto, the blue chip cyberstock giving very upbeat eps guidance for the

current quarter. the ceo spelled out the value proposition for cybersecurity with rising phishing and ransomware threats. >> there is not an economic settlement there are consequences the consequences end up hurting the business a little bit more than just having to pay bit more than just having to pay for something. >> aurora also touched on the m&a environment, saying he was looking to grow the capabilities of palo alto wedbush says, two names, more than 75% off their high, okta and rapid7 are likely acquisition targets. back to you guys >> frank, thank you very much. still to come, three-stock lunch. some of the retail stocks set to report results in the next wk.ee we'll be right back. and there are the three that are on deck. the bar is set

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we've got a retail edition of three-stock lunch it was a big week for the sector, and next week could be even bigger. on deck to report earnings, best buy, nordstrom, dollar tree, so which is a buy ahead of their results? let's ask scott nations, president of nations indexes let's go to best buy first what do you think, scott >> well, this is not the buy i

would pick i'm a seller jpmorgan just lowered their price target, which means i'm not alone. and this is in the face of weakening discretionary spending i'd also, when it comes to best buy, be really worried about shrinkage a la target. a different analyst said their margins are a wild card. so while best buy is up a little bit today, the chart is terrible and all it's doing is clawing back the horrible price action we saw on wednesday, so consensus earnings estimate, $1.03 a share, but i don't think they're going to make that >> next up, we have nordstrom. what's your take would you buy it >> i love the business i love the stores, but i would hold the stock it's up a little bit today it has a wonderful customer mix, but in order to get off the fence, we have to have more visibility about their spending for supply chain, their spending on technology and the performance of their nordstrom rack outlet, and with eps estimates at just 14 cents a share, they don't have a whole

lot of wiggle room, so until i get some visibility, nordstrom is a hold. >> all right and now, let's move on to the final name, and that would be dollar tree. >> dollar tree is a bye, tyler i love to buy companies right now that either make the stuff that you have to buy or sell the stuff you have to buy, and that is dollar tree it has had several eps revisions, and they've all been upwards recently company's expected to make $1.18 a share and part of that is going to come with because customers are trading down to dollar tree from other brands, other stores this is a buy. this is exactly where i want to be in this sort of environment >> all right there you go we end on a buy. scott nations, thank you very much we appreciate it >> up next -- i mean, this is a scenario i know pretty well. three feet of snow already falling in buffalo, and more on ate way. wh's the money impact here i've got it for you. we're back in two.

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world cup organizers pulling the mug away from beer drinkers two days before the kickoff of the world cup tournament, saying beer will not be sold in or immediately around the stadiums during the world cup in qatar. this would seem to be bad news for budweiser, which is a sponsor of the world cup i think they're the official

beverage, beer of the world cup. fifa did say bud zero would be able to be sold at the stands, but that is -- it's really -- >> a $75 million sponsorship deal with fifa and now they don't have the branding >> this apparently came from the royal family themselves, calling this out because that's the rule in qatar, where you can get alcohol, i'm told, but only in limited places >> you know what is a real catastrophe? potentially historic snowstorm has started in buffalo, new york now, normally, snow in buffalo, big deal, right? but one, we're in november it's not even thanksgiving yet this is one of the most extreme forecasts calling for potentially three feet more of snow that would be a total of six feet of snow two to three inches of snow falling every hour, the bills forced to move their sunday game to detroit they don't get to go to miami. they don't get to go to ridaides stadium. no, they're going to detroit

that's great >> you went to school in syracuse >> i've been in a storm of this nature, and i will tell you this, if they have to shut down major highways and airports and move the buffalo bills, there is a major economic impact because of the snow. how's that for bringing you the business bottom line >> the business of snow. >> thanks for watching >> thanks for watching "power lunch. closing bell starts right now. stocks struggling for direction in a choppy session on wall street. the major averages are all pacing for losses on the week. this is the make or break hour for your money welcome to "closing bell." i'm mike santoli in for sara eisen. today, we'll talk to the ceo of barrick gold, fresh off the company's investor day, about his outlook for gold prices, which have seen some resilience of late. get you situated with how the markets have been acting yes, a down week, modestly so for the s&p 500, came after big gains leading up to