>> yes -- but it's still not robust it's -- it's fragile not as fragile as six months ago, but nobody in the industry is completely comfortable with where it's at. >> yeah. cars basically just computers with wheels and an engine, at this point you need those microchips. phil lebeau, thank you very much. that does it for us. "power lunch" is next. thank you and welcome, everybody to "power lunch" along with morgan brennan i'm tyler mathisen here's what's ahead. china's covid chaos. protests mount against the country's virus restrictions the effects rippling through global markets on this monday. we will look at the impact on stocks, commodities, tech and american companies operating in that country plus, inflation looms over holiday spending we'll talk to a former industry insider who says it may be time to bet against, against, the consumer

morgan >> tyler, stocks at session lows now. protests in china injecting fresh volatility into the market with the dow down about 1.3% now. 437 points s&p down 1 point 4% 4970 falling below the 4000 mark and nasdaq down 1.3% now a volatile day for crude energy stocks worst performers in the s&p as well, but in terms of crude it is lower from earlier on the ses, unrest in china it's turned higher midday, though, after the oeurasia grou considering a new high jumped up 1% to 77 and change for wti crude. finally treasury yields recovering from earlier lows ten-year yield now trading around 3.7%, you can see there tyler? >> before we begin with the rare show of dissent happening this day and over the weekend across

china, those protests leading concerns about the economic outlook for the world's second largest economy. key kmod fis moving everything from oil to copper on questions about future demand. as well the tech industry and apple in particular with big production facilities in that country. they could be hit especially hard we've got a team of reporters on the story. beginning with eunice yoon in beijing, pippa stevens on the commodity ripple and steve kovac at the apple impact. eunice, start with you and the latest development over what's been an extraordinary weekend. >> reporter: absolutely, tyler shanghai residents complaining tonight that police at transport hubs have been checking their phones asking to see if they have vpns or foreign apps like instagram, twitter or telegram, the encryption service, twitter, a telegram often used by protesters as well as activists

to communicate now, this is all coming after a weekend of protests erupted in multiple cities including here in beijing triggered by a deadly building fire in the far search city, which many people suspect could have been worsened because of covid controls. now, much of the public anger is being directed at the zero-covid policy however, there are some indications that there's a wider dissatisfaction with the freedoms here. in fact, in beijing, there were several people who were olding up blank sheets of white paper to protest censorship in shanghai even people calling for the resignation of president xi jinping. beijing, now, has kocontinuously said they would continue with

the big curves but whether or not the slightly contained policy will be able to contain the vise. >> eunice yoon working late into the night for us pippa, turning to you, and a look at china's importance in the market. >> reporter: fears around a slowdown in chinese demand sent oil tumbling earlier today wti went negative for the year touching its lowest level since last december with brent sinking tos lowest since january china is key since it's the world's largest importer theirs year on track to import about 9.3 million barrels a day of sea bearing crude according to data from keppler down from more than 10 million in recent years, per day jpmorgan pacing to track first timeon record. total demand adjusts under 15 million barrels per day this

year this is down from last year's levels oil did reverse those big losses right around noon. traders pointing to a possible cut from opec. >> and pippa, potential impact on apple and, of course, the newest iphones steve? >> tyler, look, factory box in china, the lockdown could mean fewer iphones on shelves this holiday than even apple warned about earlier this month moving shares down over 2% today is bloomberg reporting, citing a single source, by the way, apple will ship of 6 million fewer iphones. that's double the 3 million shortfall expected just a few weaks ago when apple initially warned about it. meanwhile, jpmorgan analysts this morning tracking shipping times for the iphone 14 pro seeing it will take 33 days to deliver it here in the u.s., which is a bit better than the

40-day wait from a week ago but likely doesn't reflect the impact seen from the protesters. take another couple weeks for that to make its way into the supply chain apple declined to comment on the latest reports last we heard from apple, thanksgiving evening that -- thanksgiving eve, that evening, apple had people on the ground monitoring the situation at foxconn no updates from apple or foxconn since. what it means, most will not be able to get an iphone 14 pro in time for christmas apple could also miss targets for iphone sales growth this quarter. a lot of demand could pull forward into january not to mention this exposes the risk of apple relying on china, including the human cost of making products there, guys. >> yeah. steve, where i want to hone in this human cost. it's -- obviously awful from a human standpoint but in the case of apple specifically, such a major company on the world stage

and certainly one that is very focused on things like esg here at home. i've got to think that this is from a pr standpoint, a very difficult situation for this company to navigate. i wonder what it means for the company from that standpoint and also in terms of its ability to now move more and more of that production to other places >> yeah, morgan. a lot of aspects to this a lot going on here. so, look this is probably the worst look for the apple labor throughout the supply chain in china since about 2011 when those reports came out we heard awful tales of foxconn workers committing suicide, you might remember since then a lot of safeguards auditing the supply chain. no underage laborers anything like that put out through the supply charon and they've been, you know, credited for doing a good job with that when something like this, out of their control happens, when the chinese government decides to send in security forces into a foxconn plant to keep workers

basically locked in, yeah. it becomes a bad look for apple as well, which made this compliment to make sure these kind of human rights abuses do not happen within their supply chain. so i'm curious to hear from apple what they're doing and what they've lived over the last week or so on the ground how they'll mitigate these effects to your point, morgan, trying to expand their supply chain and become less dependent on china india is ramping up production, and china is the oath place most iphones are made and have the labor force in order to do it. for example in that first lockdown when it happened, at that foxconn facility, morgan, they had to hire 100,000 more workers, a turn on a dime and get those people in. they can't do that in many other countries. >> eunice, let me ask you. what are you seeing or hearing about how the authorities are addressing the protests?

cracking down, would be the verb to use, i suppose? >> reporter: yeah. well, in beijing as well as in shanghai, we are hearing more about a heavier police presence. especially around the areas where there were protests. so these are police who are uniformed as well as those who are plain-clothed, and anybody who goes to those locations is usually asked several questions. i mentioned before,several people in those areas that are being asked specifically to show their phones and to see the -- you know, whether or not they have these different foreign apps, a development we hadn't seen in the past and a lot of it is because the chinese use these vpns to try to jump the firewall here and also to communicate using apps sump as telegram. so this is kind of a, more technological way in which the

security here is trying to get a little ahead of the protesters and any potential protests that can happen in the coming days. >> do we know, eunice what the size of the protest crowds are measured in the hundreds measured in the thousands? or what? >> reporter: it's difficult to say, but just based on the number of videos emerging from all the various cities across the country, it's probably in the thousands or so. definitely in the hundreds we've seen hundreds just in, you know, one city versus another, and, but it's, again very difficult to say and also because there are so many videos and some of them, because of that, it's difficult to verify all of these various videos but definitely there is some various locations that are very frustrated with these covid controls. >> to your point, the fact that in china, so much of a surveillance state, the fact people would do this speaks to

them essentially risking their lives. pi pippa, your thoughts on the commodity impact here and what is shaping up to be a very busy week or two weeks, because obviously we have the weakness or did have weakness earlier today in crude prices because of the china headlines, but then opec you've got sanctions more sanctions kicking in, in europe as well i could go down the list over the next week and a half expectation what's this will mean for these conversations about the supply/demand equation >> reporter: the most common expectation we really don't know at this point. you mentioned, so many moving parts, and chinese demand story has been one impacting oil the past several weeks both wti and brent coming off a third straight week of losses. looking forward thast price cap coming up eu embargo on russia and the opec meeting sunday and reports that opec might be

prompted to implement another production cut based on how much oil has fallen in recent weeks and months, but then looking forward, i think once these sanctions are implemented and countries start moving away from russia, it's hard to reverse those. so kind of what people are now talking about is a new reordering of the global energy system, including even just russia can youing off natgas to europe such a key supplier for so many years, and so right now there are all of these moving parts getting sorted out potentially to reshape things, but certainly a pivotal couple weeks for the commodities market, pippa, thank you, and team. eunice, steve, appreciate it. what do you do if you're a u.s. company with operations in china or investors who have a lot of exposure to china let's ask dennis unkovic, a longtime visitor to china as a dealmaker there. dennis, welcome. good to have you with us.

>> thanks for having me on. >> what leaps out to me, it's not easy being supreme leader especially when supreme leader's policies aren't working very well >> this is probably the worst day for a xi jinping since becoming head of chine in. looks like it's going to get worse. >> you would describe this, what second only to tiananmen square in terms of the threat and the visibility of the protests we're seeing >> there have been no threats to the chinese leadership since tiananmen square in 1989 this is the first time i think in multiple cities in china, i don't know how many you reported talking about that, but major dissatisfaction of the chinese people with the government we haven't really seen that in more than 30 years. >> let's talk to boards of u.s. companies that may have operations or be dependent on supply from china. you know -- seems like the cup

of coffee's mostly drunk over there. it's late to be making changes, but companies can't be as dependent on china as they have been isn't that obvious >> tyler, ceos and board of directors needed a wake-up call, then this is it. a lot of them have been saying, well, things will get better the elephant in the room here is the relationship between china and the u.s. on a political basis. and if that continues to get worse, the opportunity for reliable sources of supply and commodities and products, you talk about iphones a few minutes ago is really going to drop. that's why i think you're going to see boards hopefully, if not for the first time in their next board meeting sit down with ceos and say, where are we? how committed are we to china? should we diversify? still sourcing out of china late to the party, but it's time to do it. >> how quickly can it be done in if you're apple, for example just having this conversation,

maybe you are seeing diversification in the supply chain but not necessarily in a meanalful or major way in the near-term. how quickly can you actually pivot and make the moves happen? >> on your show a couple months ago talked about apple started to look at china about 5% of apple's phone now produced in india. i think probably going to see that raise to 30% or 40% but as you pointed out, nothing happens immediately. it takes time to get it done that's why i think boards have to give this a really top priority in the past, companies said, well yoshs know about the financial problems, but now there's not just a financial problem. there's a reputational problem how does apple look going into christmas, the holidays, a couple months saying not going to have enough phones hoar you the pressures i think board of directors have to put on the ceos and the sea suite level people to say, what are you doing? >> flip side companies that pmanufacture from

china looking to diversify, maybe, but many american companies looking to sell to and into china as welling. how do companies walk that line, and continue to drive sales and continue to appease their investors but also potentially apays leadership of a country that -- is -- going into even fuller crackdown right now >> i think xi told you what china's future is going to be. he's not going to double down. he's going to triple down now on the covid-19 problem that your reporters were talking about a few minutes ago. ultimately i think companies are going to have to make a balancing judgment obviously, if the chinese market is the only market you have, then you probably have to go along with it, but if the global market is changing and you've seen what's happened to the supply chain, really over the last three to four years, i think it's time that tough decisions are going to have to

be made, and that's why the ceo and boards are there, and i think it's time to stop putting their head in the sand and say, how am i going to make these decisions? say i'm an american investor tempted to put money to work in a mutual fund or an etf that has significant china holdings what would you tell that person? >> i would tell them to be very careful. if you've seen what's happened to the chinese market overall over the last year and a half when the pressures have grown, there has been pressure downward on the value of those investments. not saying don't do business in china or saying it's bad, but saying risks are higher there than i think most analysts and ceos put on it in the past. >> thanks. appreciate it. >> thank you. >> thanks. coming up, value hunting there are two companies with improving balance sheets that a long-term investors says are worth owning he's going to name them next. and plus former ceo of toys

"r" us is not buying into the hype start of the shopping season's why he's expecting overall sales to disappoint. as we head to break, news hitting all-time highs ulta, general mills and merck. this... is the planning effect. this is how it feels to have a dedicated fidelity advisor looking at your full financial picture. this is what it's like to have a comprehensive wealth plan

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welcome back to "power lunch. our next guest says the market is not completely discounting and saying multiples to compress

purt further from here we're going "value hunting." a cnbc contributor is with us. great to see you today before i get into your specific names, though, i do want to get your take on weakness seeing here to start the week in the equity markets is this all just a result of everything that we're seeing on the geopolitical front and these protests that are happening in china right now? or is there more happening -- more to consider >> i think it's a combination. definitely what we saw overseas in china is adding to this uncertainty. what does it mean for demand and for even talking about fictional costs and the supply chain overall now the market is looking ahead e to next year and saying, where earnings going to be on the s&p and where are earnings going to be in specific sectors? i think that's where as investors we need to be a little careful. start extrapolating where

earnings will be and haven't really seen them come down meaningfully, most of the return this year especially in the epps or s&ps is energy. right now we'll see that and going forward, where is that growth going to be and until that's answered i think you're going to see volatility in the market and sell-off especially in sectors with high pes. >> if we dig down, go value hunting where would some of that growth be? >> so the way i want to frame it is look at companies that will not be affected that much by a potential decline in the overall market or in an earnings basis look at companies that have a margin of safety and earnings aren't really that "inflated" or high pes for example, look at glaxo trades ten times earnings. bad news in the stock, look at zantac litigation. spun up a pristine balance sheet. we also like it, look, earnings growth of 10% the next couple

years. 5% revenue growth and look at their pipeline, really important is as we've gone through covid, really people have not gone out and gotten new vaccines and the pipeline for gralaxo a lot is focused tz on the vaccines like shing manies and others. the macro level not affected that much with what goes on in the world and uncorrelated earnings increasing over time. >> move on to another one, which i think is xpo logistics. >> right xpo is a special situation, tyler. just spun out rx7 gso. similar acronyms but less than truckload. this company helps their customers put goods on trucks that don't actually have to be full in a slowing economy, you want a company like them that are not asset heavy. they're going to be able to help their customers put goods in other companies. the companies two times levered.

not a lot. selling the european business. again, look at their earnings projections only trading about 11 times, but historically most trade as a higher level. already discounting lower earnings, we think a lot of positive here with this company truly focused on the ltl model which can be successful in a slowing supply chain, customers really focused on costs. two value stocks trading market multiples already discounted a lot of earnings slowdown with potential upside in a market we think is not really going to go that far, given were we see epps in the s&p. >> talking transports, freight in general is a name like xpo going to be recession-proof? >> it's not. that's why i like what they do with the ltls of it. gives ability, you don't have to buy the whole truck. buy pieces of it and ship it and they don't own the truck, that's the best part of business. they make money based on a

percentage of what they sell again, reducing your overhead. reducing your capital costs and also using a business that can help other customers cut costs, yet they can do well in this environment. >> great to see you. thanks for joining us today. >> thank you all righty further ahead, more than just a support wall we're going to look at one start-up making energy-efficient and fire-resistant wall material plus, game over for microsoft's deal to buy activision well, a report says the ftc may block that merger. we'll trade that news and some hrher big headlines in today's hrher big headlines in today's "tee stock lunch." so you partner with ibm to build a security architecture to keep your data, network, and applications protected. now you can tackle threats so they don't bring you to a grinding halt. and everyone's going places, including you.

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all right. welcome back to "power lunch," everybody. shares of disney lower by 3% now. the company's new, old ceo bob iger holding a town meeting with employees. of course, addressing why he came back saying he loves the company, the people, the creativity and also addressing business matters on disney plus saying instead of chasing subscribers with aggressive marketing and aggressive spending on content, the company needs to start chasing profitability. also on costs saying the previously planned hiring freeze

remains in place iger shooting down rumors, by the way, that apple would buy disney and also saying don't expect disney to do any buying of its own right now. interesting, too seems to really stress creativity off a weekend disney was not only biggest winner but also biggest loser at the box office winner, the new "black panther" movie. leader, latest animated series "strange world" seems to have bombed worst three-day animated feature since 2000 speaking to how important the talent piece of the puzzle is at a company like disney. >> keep your people happy. and to brian sullivan. >> guilty plea to you a state dhargs today for the 19-year-old white gunman who killed ten black people at a buffalo supermarket in may he admitted the murders were racially motivated

spends of rest of his life in prison with no chance for parole. and two people miraculously rescued from a small plane that crashed into high voltage utilities lines. workers carefully extricated the two making sure the plane did not fall to the ground and they were rescued safely. the world health organization has a new name for monkeypox widely criticized for being stigmatizing now simply known at m pox. back to you. >> okay. brian sullivan, thank you. >> [ laughter ]. >> ahead on "power lunch," a record-setting black friday online sales topping $9 billion with consumers buying big-ticket items. despite the number, our next guest isn't impressed with the consumer turnout this year. plus more bitcoin businesses going bust another major lender blocked by a bankruptcy today ilwh "weluh"nc

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out of china oil turning midday on suspicions opec could respond to a production cut give you some rundown of some of the numbers here as we just mentioned. a volatile session for oil that finished the day up 1%. ten-year note, 3.698%, the level there. as i said, equities at session lows energy, tech, materials, some of the names leading the charge there. tyler, over to you. >> thank you very much. talk retail. shall we consumers spent a record $9.1 billion online shopping during black friday this according to adobe analytics. overall online sales up 2.3% year over year with electronics and toys the big winner. in-person shopping up 2.9% according to these numbers our next guest says it was a disappointing start for the holidays for most retailers.

ceo of storch advisers and former toys "r" us chairman and sheo welcome. good to have you with us a couple questions number one, those 2.3% online spending gains, 2.9% that we just referenced there. are those inflation adjusted or just mooved up because things cost more? >> not inflation adjusted and these sales are record-setting only in the sense they're $1 higher than last year but below the trend of retail sales the last three months and certainly below the online sales they've been up in double digits the last couple months like 12% last no and total retail up 8% year over year we look at the way the numbers are. so 2% is below trend for the internet to have only 2% when inflation is 6% to 8% the record-setting narrative doesn't hold up and by the way, these sales were highly ly

promotional. i doubt these companies are making any money. >> something else that seems hocus-pocus. black friday and cyber monday. feel so 2002 to me the whole thing -- i mean, meaningless. >> it used to mean something so watered down. there was black friday in july. >> yeah! >> and lots of black friday events going in every major retailer starting in early october. sales mooshed around no one knows where you stand for the holiday season these black friday sales this week started on sunday no one even ran special ads for friday used to be one of the biggest in the year ads oning sunday through saturday black friday week. walmart calls it deals for days. like days and days and days. long ads like that sales obviously spread around and cyber monday used to have a reason, too. when the internet was small and day to order make sure you got it by christmas or something

like that. years ago. now a big excuse for being on the heels of the black friday weekend. >> rime trying to slushous here, pull demands and sales or create a situation where things are marked down and marked down so long, consumers actually go out and buy more over a longer period of time >> my decades of experience in retail say you can't generate a bigger market just by having sales at a different time during the season maybe take a share of your competitor having your sale earlier but not grow the market. morgan, i love you, not buying you another christmas present because of sales same for my kids not going to happen. still buy everybody one present. doesn't change a thing when you start earlier, hold them longer. people trying to win in a very, very difficult retail

environment if you're selling electronics, clothing or home goods. where all the money's going, towards necessities, food, gasoline you have to pay for those first and what's left over you get to spend on toys. >> what's winning, what's losing this season? >> some retailers doing well walmart, costco. home dedepot and lowes could not being to thrive. fixing's homes, buying new homes. dick's doing well. people are staying home a lot more and a lot of schedules don't work five days a week. time for athletics dick's doing well. t.j. maxx, perennial winner. and the restaurants were up. huge over the weekend, by the way. clearly double-digit gains in food service any of the big restaurant brands well positioned. for the future here. a lot of big -- apple obviously a winner gift and supply of products everybody wants an apple phone generally did very well with apple gadgets and erg else over the weekend but struggling with

supplies as you know. >> if you say, i heard you say, that the consumer is increasingly concerned with paying for the essentials. some of those essentials they're buying at walmart and costco, groceries and the like, but if a consumer is really concerned about the essentials, those incremental or impulse buys are not going to be there. that doesn't sound strong for the consumer >> again, i don't want to be negative i really believe in the consumer but they're starting to get leverage spending more on credit cards. seen this. money's running out from the covid time so we're seeing a very different consumer as we head towards this holiday. maybe so-so at best. i would shy away from apparel companies, department stores especially apparel worried about furniture companies. wynns, sonoma, hardaway, that was then this is now. people aren't spending money that way. >> see you again, i'm sure leave it on that note.

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at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. on "squawk box" which way are markets going? impact of china's lockdowns and

unrest on global equities. predictions for the new year "squawk box," 6:00 p.m. eastern. watch anytime on demand. global warming rapidly changing the way we build homes. the process that really hasn't evolved much over thor e years until now. a continuing series on climate start-ups. hi, diana. >> yes styles change over the years but materials haven't. mostly concrete, steal and lumber contributing to global warming. new companies hoping to green this age-old industry. >> reporter: homes and buildings account for 40% of global carbon emissions. much of that during construction building with lumber, steal and cement is neither clean nor energy efficient. but replacing those materials is difficult, because of outdated building codes now, innovation is finally taking shape from the ground up. >> the carbon footprint in our

homes is about 80% lower carbon footprint than traditional construction. >> reporter: a north carolina-based start-up is one of several companies like rsg 3-d and nexty experimenting with new materials, inventing a panel kifrts of fire and weather-proof ceramic like faces the company's ceo says the panels are less expensive, take a quarter of the time to build and are five times more themly efficient. >> what we deliver to the job site are complete homes that have everything in them. electrical, bathroom, with a very, very efficient thermal envelope, which allows us to hit net zero at low costs. >> reporter: the modular homes are trucked to the site and put in place like lego paces a client says it reduces construction costs by 15% compared with stick-built homes as well as consumers' costs. >> the structure is more sound

and safe built the thermo envelope of these is second to noune less telectricity to heat your home. >> reporter: total funding so far, $25 million now, the company plans to build 15 u.s. factories over the next seven years. each capable of producing a million square feet of homes each year. morgan >> wow moving quickly curious about this, though, diana. because we've seen technologies advance over the decades dramatically in so many other industries yet just having this conversation now in real estate. why has it taken so long for real estate to adapt >> funny i walk around a lot of construction sites and you still see using spread sheets instead of tablets just haven't ask, has to do with lack of skilled labor, lack of training and workers' inhairant diversity to new technology.

60% of construction firms don't have a dedicated rnd budget. to me, amazing. >> all right, diana olick, thanks very much. got three key headlines and three analysts calls todayed "three stock lunch" chkepr into macao, video games and icn ices. be right back. connect with customers, and to bring your dream business to life. because when we work together, the future is bright. these days, your customers are not just down the hall. they're all over the world. so cute. it doesn't have to be lonely at the top. join the millions to finding success on their own terms. start your journey with a free trial today. ♪♪ energy demands are rising. and the effects are being felt everywhere. that's why at chevron, we're increasing production in the permian basin by 15%. and we're projected to reach 1 million barrels

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welcome back today's "three stock lunch" looks the lee r three headlines and three calls. chicken. prompting popeyes to expand offering underweight, costs and inflation. second, casino stocks. macao casino 234names rison on calls. third, growing concerns the ftc will move to block microsoft's takeover at act sivision blizzad upgrading to a buy calling it an opportunity for investors. bring in cnbc contradicter, managing director of fx strategy boris, great to see you. first up, the trade on tyson your thoughts? >> so tyson, tyson getting hurt

more on beef rather than chicken. the problem is that many of us feel that consumers are tightening budgets and moving down from beef 36% of tyson's revenues come from beef. at this point the stock is getting baby out with the bath water. unless you think there's something inherently wrong with tyson, one of the preeminent food producers in the world, i really like it here on a longer term basis though the stock can certainly wallo at these prices for quite a while. if you want to be an investor you probably want to be a little tactical one idea possibly you can sell 60 foots which would give you a 57 basis in the stock all the way through april of 2023 and then that actually gives you a very, very good price at a 3.3% dividend and you can wait until the macro picture improves, but generally i think the stock has gotten so badly beaten up at this point that, you know, it's -- it's more of a bye than it is a sell.

>> let talk about wynn resort. a renewal of gambling licenses in macaw enough to power the stock as it is today >> this is really i think a value play, right. i mean, there's lots and lots of parties that seem to be very interested in wynn purely from a value proposition. yes, of course there's only six macao loy sense. given the fact that they are five times larger than las vegas in terms of betting at this point, however, an enormous amount of risk because zero covid. everybody is hoping macao comes back but that may be put off for quite a while. on the other hand there are a lot of parties including the houston rockets owner, and there's rumors that yes is interested in the property bottom line, some analyst think there's $95 value and wynn is trading at 73 so i think it's probably a very interesting value play at this point going forward. >> okay. final name, activision blizzard.

>> well, i've been bullish activision many times on this show i love the stock i think the whole gaming industry is actually very, very strong the story with acvision, of course, is this fear now that the microsoft deal does not get done, but i think there's a bigger story here that even if it doesn't get done, activision in and of itself is a really great play this year first of all, if the deal doesn't get done, they get a $3 billion break-up fee so that simply adds to the cash flow secondly, they have two very big, you know, call to duty coming out in '23 and i think over watch, too. both those titles are expected to be huge at the bobs office at this point and, of course, the box nofs gaming is much bigger than the box office in hollywood so i think you have to be secular and bullish on the stock from every ankle if this deal gets done it's going to be icing on whatever -- i forgot the expression. cherry on the icing on top

bottom line activision in and of itself a microsoft deal done is a great stock going forward. >> finally, boris, i want to get your take on stocks in general we're poised for gains for the month. given all the geopolitical and macro headlines that have been moving things here in recent weeks, your take >> i'm biting my tongue at this point. it's very, very hard to be confident one way or the other of the i've been relatively bullish. i thought the inflation story is done and i thought we'd get a lot of support but, of course, the geopolitical risks are the greatest unknown, both in russia and in china, and that's one thing that's just impossible to predict. i think overall if -- if things kind of calm down geopolitically we're in very good shape for the stocks to real that's the biggest unknown and that's why the risk market still remains. >> thanks for joining us >> thanks, guys.

>> still to come, the latest victim of the crypto collapse following ftx's scandal. we'll be right back. at adp, we understand business today looks nothing like it did yesterday. while it's more unpredictable, its possibilities are endless. from paying your people from anywhere to supporting your talent everywhere, we use data driven insights to design hr solutions and services to help businesses of all size work smarter today. so, they can have more success tomorrow. ♪ one thing leads to another ♪ lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”.

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so let us focus on the how. just tell us - what's your why? i promise - as an independent advisor - so let us focus on the how. to put the financial well-being of you and your family first. i promise to serve, not sell. i promise our relationship will be one of partnership and trust. i am a fiduciary, not just some of the time, but all of the time. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com welcome back to "power lunch," everybody. the price of bitcoin right now sitting just above 16,000 as we're learning about another crypto casualty. today blockify filing for bankruptcy protection and kate rooney joins us from san francisco with more details. kate.

>> reporter: yeah, tyler, the latest collateral damage we've seen from ftx's downfall blockify filing for chapter 11 protection this morning in new jersey and blockfi was one of the handful of firms supposed to be bailed out by ftx which is going through its own high-profile bankruptcy. we did get more paperwork where blockfi said it was daysed with a severe liquidity crunch due to the unprecedented expedited collapse of ftx and go on to say ftx is a parent rescue which began in the summer of 2022 stabilized blockfi but was short lived and over the past few weeks exposure to ftx exacerbated rather than cured the blockfi ailments it has substantial exposure to ftx. they will allow them to run an orderly process and to maximize value they can deliver to clients. the trouble for blockfi started

back in the early summer if you remember the explosion of the head funds there was a line credit back in june back in june which increased to 400 million in june when ftx had agreed to buy the option, as ftx went under blockfi had to halt customer filings. it has more than 100,000 creditors and in liabilities and assets stand between $1 billion and $10 billion. guys, back to you. >> so how does this get all unwound are? i mean, are these customers ever going to be made whole >> that's the big question, tyler, and one recent analogy, the only other high profile crypto bankruptcy to look to is mtgox by customers after that company went bankrupt are getting some of their money back and with some of that expectation, one historical

analogy people look to, not a lot of hope if they do get their money it will be any time soon for that it will be an expedited process. i was looking through the bankruptcy paperwork that came out within the last hour, and they do say they are in a better position than ftx. the crypto economy has really collapsed in the past few weeks and months they say there's still value in the company so the thought is if that's the case, maybe there's a buyer and maybe that helps customers hold, but there's not a lot of confidence out there. >> kate quickly, between 1 billion and 10 billion and look at liabilities and everything else at ftx, we're talking tens and tenses of billions of dollars here who are the customers for these companies? >> the customers for blockfi and ftx tend to be in a lot of cases high net worth individuals who are looking for yield on their crypto blockfi was a lender offering $10% to 20% cash back, essentially a yield and what looked like an api and had high net worth customers and also

some average americans who were looking to get more return on their money when interest rates at the time were at historic lows that's on the blockfi side ftx catered more to hedge funds and high-proefile traders. >> kate, thank you very much thank you for watching "power lunch. "closing bell" starts right now. protests in china, some hawkish fed signals sending a chill across markets today the major averages firmly in the red. we're near the lows of the day as we head towards the close this is the make or break hour for your money well, everyone, to "closing bell." i'm sara eisen down almost 500 on the dow jones industrial average it looks like taking the biggest chunk off the dow is goldman sachs, home depot and boeing the s&p 500 is down more than 1.5%, every sector is lower. the weakest link today, real estate, energy and materials the na