that whatever we do is credible under the circumstances. >> reporter: now, brian, bankman-fried defended his own donations saying they're not political. he was all about pandemic prevention back to you. >> nice. thank you very much. look forward to more coverage. "power lunch" starts right now. fascinating stuff on crypto. gets curiouser and curiouser welcome to "power lunch," everybody. along with contessa brewer, i'm tyler mathisen great to have you with us. ahead on a busy thursday, conflicting messages dow trading 20% off rts yearly low and bond marketing signaling recession. who's got it right stock market bond market? we'll discuss that plus, rolling the dice vecci properties marking one of the largest u.s. casino deals this year, really any year,

buying up stakes in two major resorts. vecci stock up 12% so far this year the ceo will be here with us to talk about the risk and reward of doubling down on vegas. contessa >> well, tyler, stocks mostly lower ahead of the jobs report tomorrow see the dow off .75 percentage point. nasdaq composite barely hanging on in the green. the dow weighed down by shares of salesforce after the company said its co-ceo will step down, and you can see there saleforce off by 9.5%. meme stocks on the move. amc entertainment up 20% more than 20% this afternoon bed bath & beyond up 8% both moving higher. tyler? >> all right, contessa. the big question everybody wants to answer, wants an answer to, recession or soft landing? right now the stock and bond markets seem to have different views. bring in our market watcher bob

pisani looking at the bright side stocks seem to be reference be, and emrick santelli what the bond market is telling us as the yield curve is really negative bob, begin with you. >> even the stock market has differences, price action it bullish. look at this chart of the s&p 500 for the year we've been in a serious down trend. we're about to break that, above that blue line would be an uptrend in the market here that's where we seem to be heading. look at the good and bad a lot more good news and that bad news for stocks recently s&p 500 way off of the lows there, about 15% recently. two-year yields a down trend dollar's in a down trend below its 200-day moving average. the problem. earnings going down. stock up, earnings down. this is not good somebody's wrong lowering numbers including jpmorgan dropped estimates for

2023 on a gloomy economic analysis here. goldman sachs, barclays, bank of marc, all below analysts consensus for 2022 $231 some are significantly low, down 15% or to 20%. a big disparity. what's going on? gloomy about the economic outlook for 2023 and think it will spill over into the stl typical. g jpmorgan comment out for 2023. expect s&p 500 tightening into weaker er fundamentals. that's the problem somebody's wrong stock market sacting like they don't believe there's going to be any kind of very serious soft landing. >> thank you right to rick santelli for more on the cme and group's hq in chicago. what yield are doing, rick

>> yes you know what? just today's data alone shows us how difficult this is to try to define consider market's more correct. look at today, good, bad and ugly look at the good today income and spending solid. up 7/10 and 8. >> alicia: -- 8/10s posting second negative read of the month. >>. >> reporter: look at two day of two year and realize the high water mark in early november on a yield closing basis was 472. currently at 427 look at two day of 10s and realize every maturity is now below yesterday's low yields why is that important? because yesterday was a huge day. no giveback. as a matter of fact, keep doing in the trend of lower yields and higher prices. if you look at the three month sersz ten the real recession

spread, it's approaching linus 80 it's the most inverted in 22 years. all of this gets sent home by just watching behavior of the dollar simply speaking, the dollar doesn't like rates going down. it would rather have rates go up down 5% for november alone and add another 1% for today's session. these are huge moves tyler, contessa, back to you. >> all right guys, the -- the con tstruct is the stock market is saying one thing it did in november and to a lesser but significant degree in october, and bond market saying something distinctly different. is it possible, rick, and then bob your thoughts, that both could be right here? >> oh, absolutely. i look at it like, stock market and many investors reached the conclusion, whether right or ro wrong seeing peak rates and inflation.

high-water mark a whisker under 4.25 from third week in october. we have 75 basis points pushing. about the same, about 50 base points pushing in other maturities that tells me that the treasury complex knows that we're going to slow. it doesn't know how bad that's going to be or how debt in spending eventually and ramping up issuance would affect that on the back end the stock market well, for a peak inflation, peak rates, we've seen pretty decent data it's going to continue to do well right up until we start to see the recessionary impact show up in more numbers. >> bob, your reaction? could both be right? bond signaling recession, stocks maybe looking past recession >> not necessarily recession in bonds. could have slowing in the economy without a notable recession. the debate in the stock market community is over the earnings situation, and where we're going on that. there is an analyst community extremely gloomy in the last few

weeks believing that earnings will drop dramatically in 2023, but the stock market -- excuse me, bond market could signal having a slowdown in the economy but not necessarily in earnings collapse that's where the debate is stock market seems to be saying, okay maybe a slowdown we can handle that, but no earnings collapse. that's going to be key in a real recession earnings drop typically 20% analysts believing it's in stock market saying, we don't believe that. >> bob, one question looking through all the economy forecasts frommen analysts for next year how much of that is based on data from a month or two months ago >> well a good point so you have these year-end forecasts, 2022. jpmorgan 2023 forecast out this morning. that's assembled by a committee over a very long period of time. a month or so. they're using estimates of data that's probably more than a month old. just how you put it together,

and the data has changed significantly. we're moving more in the direction where inflation is clearly showing signs of debating still too high but abating at least and the stock market is reacting to that most recent information that's beautiful about the stock market a realtime every day guess where things will be in the near future, and so far the data supporting the bullish position of not such a serious recession or maybe even a soft landing. >> a beautiful thing. >> a beautiful thing what's that saying, a camel is a horse designed by committee? there you go leave it on that, on the idea of the -- investment committees all right. when it comes to -- thanks, guys. when it comes torecession signals our next guess says it's complicated. what isn't even if it comes modest likely and stocks headed for a healthy bounceback either way, so he says so says david katz chief investment officer of matrix asset advisers. you heard the conversation

there. you say it's complicated i agree with that. it is, but what about -- if you're looking for the stock market to have a nice 2023, what about bob's point that an awful lot of market watchers are looking at an earnings slowdown? it's hard for stocks to make headway when earnings aren't >> for an individual stock, yes, but for the market in aggregate a lot of other factors so if we're right, that we're going to have a modest recession or just a slowdown and fed is going to be less hawkish next year, not raise rates aggressively and inflation has broken, which we think is happening we think the market's going to focus on those positives and be able to have a pe expansion even with earnings being a little lower and we think the market is going to start to look in 2024 earnings which are going to be in a nice recovery go back to 2020 earnings down

sharply, a very strong market because the market went ye yond the slowdown in earnings recovering in 2021 we think that's going to happen in the upcoming year. >> david, we've talked to a lot of advisers who have been talking about just basically tying a knot in the rope and hanging on are we still in a period time where we need to be thinking about how to play defense, or is it time to start thinking about how to play offense going into 2023 >> so as the market sell-off got deeper we thought a good time to switch from defense to offense still position yourself for offense even though the markets rails 15% off its lows, still a lot of really good companies down 40%, 50%. we think look for the market, find strong businesses, strong finances low valuations, and pick them up here wouldn't change yesterday's rally, but sure there's going to be some sort of negative data point in the next few weeks. market's going to get negative again. sell off we'd would be buying into that

and on a stock-by-stock basis a little of companies are very att attractive. >> looks like you like a fair number of what we describe as classic tech, growth names, amazon, google, i believe met tronic, and true is financial. why that interesting group >> so a lot of the high-flying tech stocks have been taken out and shot this year we've looked at amazon as as great business and very richly priced started buying it in the last few weeks because selling as low end of its price and stock down 45%. from these levels you really limited your down side from here and on a 12 to 18 month basis we see the stock 30% to 40% higher. alphabet is a great company with great long-term prospects yet sells at 17 1/2 times next year's earnings. when you can find and buy premium companies at those prices and do really well,

medtech, medtronic, short-term glitches and bumps in the road, but we think they get their act together in the next 12 months that's up 30% upside and paying in 3.5% yield while waiting. the last piece of the banks. we think this is going to be the sweet spot for banks you've got higher interest rates. they've got good credit qualities and a lot of low demand and buying stocks at nine times earnings 4.5% yields u.s. bancorp, our favorite, bank of new york, all very good companies and very attractive. >> questions armor gadge demand we see softening even with mortgage rates declining a cons gather you lost enthusiasm >> a lot going into the year and the market has come down significantly. however, think a lot are barely or fully priced and we've been

taking money off consumer staples. if we're right the market's doing better next year, you're fought going to want defensive characteristics. we think actually probably will be a source of funds as people get more excited about the market and put money back into the other sectors just discussed. taking some money off of them. >> i see thank you so much for sharing your insights perspective with us david katz. >> thanks a lot. president biden and french president emmanuel macron just finished a joint news conference right to kayla kotausche with headlines. >> reporter: contessa, the first official state visit for president biden focused with the president on france for two countries in particular, ukraine and china. high-level disagreement hoe far to isolate china pursuing industrial policies to onshore manufacturing. first on ukraine president biden made news by

saying that he would sit down with russian president vladimir putin to negotiate an end to the war in ukraine, if he believed that putin had a legitimate and genuine interest in ending that war. here's president biden in his own words. >> i'm preepared if he's willin to talk to find out what he's willing to do but only in consult take with nato allies. not on my own. >> reporter: president macron said the west would not push for any negotiated outcome that ukraine itself did not support on china, the europe and france in particular, critical of the inflation reduction act and other legislation out of washington that incentivized manufacturing coming back to the united states saying that it penalizes that type of activity from the continent of europe and from country like france specifically president biden acknowledged that and said that there would be tweaks made to the law that would incentivize europe to take

part in some of that activactivy finally on a potential rail strike that could happen as soon as next week president biden said that he would be renewing a push for paid leave legislation that he says all workers should have access to, but says that for the rail industry specifically, that the deal that is on the table that grants them one day of paid leave is better than other options that the industry had put forward in those negotiations, and that having those workers strike would cost 750,000 jobs and tip the u.s. into recession on that note defended his ask or koch to force parties to accept that agreement senate at the moment is taking up consideration of that. >> watch for the senate decision coming out of capitol hill kayla tausche at the white house, thank you for that. coming up, the biggest property owner on the biggest strip is getting bigger. ceo of vecci properties will join us to discuss his major casino deal and the future of

sin city. plus, morgan stanley slashing housing outlook putting a number on how much prices correct in the next year. heading to break netflix extending its gains up another 4% today, and rallying on comments from reed hastings you've heard right here on "power lunch." of course, he's optimistic about the company the ad-supported future stock up 43% since the ad tier format announced in october. "power lunch" will be right back.

blackstone shares off 6% after announcing a deal to sell its share of mgm grand and mandalay bay the deal, $5.5 million vecci shares initially rose but pulled back down look at performance year to date best performs reit in s&p 500 up almost 13% and compared to biggest tenants. caesars and mgm resorts off 44% and 17% respectively year to date even though tenants are making money hand over fist, whatever they pay for rent staying the same no matter how much money they make with me now vecci ceo. great to see you today

tell me why it matters that you're buyint blackstone's stake, 49.9% why does it matter to you to own 100%'s mgm grand and mandalay bay? >> blackstone came to us only a few weeks ago. able to get it done quickly, contessa and we were excited about the opportunity once blackstone presented it to us because obviously it simp lifie our structure and total ownership two of the movie iconic on the strick mgm grand and mandalay bay and two iconic assets end of the strip becoming more and more vital. especially because of the impact more and more mag inte mag kmag example, the place taylor swift will do her concert. >> a big star like that, spenders in vegas increases

also curious. you got to structure the deal in a way you're assuming blackstone debt at a very attractive rate so doing the math. you paid something like 17.9 times next year's rent would that have been low are had you not been able to assume that debt if you had to pay 6% instead of 3.55%? >> yeah. the debt was a very, very attractive piece of this package. think about us buying both property and a piece of paper, which is to say the cmbs debt on the two assets that debt is going to bear interest for us. already did bear interest for us as a 50.1% partner in the jb at 3.55%. very attractive financing runs at that rate through 2030, adjusts slightly 2031, 2032. because the debt is so inexpensive to service, what we're really doing paying about

$1.25 billion of equity for what will be after debt service just over $100 million of cash flow in the real estate business simplify it, cash on cash yield? what is it what kind of income yield getting after debt services? 8% cash on cash yield this is a very attractive deal for owners. >> let me sort of ask a freshman question here. biggest property owner in las vegas on the strip many would not know that quiet, sort of -- >> i keep saying so. >> you keep saying people like contessa know this, but a lot of people don't. tell me how it works you own the land right? >> yes. >> you own the buildings, right? >> yes. >> but you have operators who operate the businesses there right? they pay you rent. is that how it works. >> exactly right, tyler. >> do they finurnish it.

>> not to get too technical. they do. we own the real property they own what accountants call the personal property. we want to be invisible because our operating partners like mgm and these two assets, like caesars, like partners at the venetian create magic every day. ones some of the most dynamic businesses on earth and we the want them totally free and unfettered to do that. >> showed stock prices of the operators, of the mgms and caesars, if vegas is so shot, wy are stocks so -- >> baffled the most dynamic hospitality operators now. looking at year 2024 next year an insane year of activity in

las vegas. >> 2023. >> yeah. you know, starts with the resurgence of full convention activities, ces, con expo. two rounds of the ncaa tournament further conventions throughout the year we have this new thing called f1 coming to las vegas in november. >> you're not taking a share of that investors look at, you might get your rent every month. your tenants make money hand over fist. i mean, is it still a good investment if you're up so much because you've had steady rent through the pandemic. >> right. >> where's the growth coming from >> for us come through same store rent increases relative to other reits and acquisitions like the one today. i want to finish not forgetting in 2024 get to host the super bowl >> a big deal. >> the way to think about how to value real estate, contessa is that the value of the real

estate is very contingent upon, predicated upon the success of the business that operates within it. the more successful the business or the operator is the more likely the operator's to stay there. low are the vacancy risk the stronger the operator -- >> one more. are you putting into many eggs in this basket >> no, no, no. we think that the las vegas ecosystem is a singular eke ecosystem on earth right? it has competitive advantages that really we don't see being overcome the fastest airlift recovery in the world. the first place in the world to get past 2019 airlift. it's got infrastructure. looking at it right here, you can't see at home. got infrastructure that could not be built again anywhere else on earth the one place on earth that comes close is macao and you know, becausecover it closely, a problematic place. >> las vegas games capital of

the world while macao rests. thanks for coming in and explaining the deal for us. coming up, ceo sitdown feud bean elon musk and apple's tim cook ending as soon as it began. the twitter owner withdrawing plans removing from the app store. brief tip, reading apple's app power plus apple one of the few tech ferns not announcing massive playoffs, not so far but the companies that cut costs early may benefit in the long run. we'll explain when "power lunch" returns.

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welcome back to "power lunch," everybody. the world richest man and chief twit elon musk, musk accused apple of threatening to remove twitter from the app store a move that would have been catastrophic according to twitter executives musk went on the offense, any other way with him, criticizing apple and its ceo tim cook for censoring free speech and targeting monopolistic control of the app store, but as of last night the conflict between the two tech titans apparently dissipated elon musk tweeting he met with

mr. cook and resolved the misunderstanding about twitter potentially being removed from the app store. clarifying that mr. cook never intended to do so. so, there. contessa >> get to bertha coombs for a cnbc news update. >> hi. what's happening at this hour -- the senate right now taking up consideration on amendments to a bill to avert a railway strike after voting on the amendments expected to vote on the bill later today. the house already passed ledge installation to avoid the strike and the bill would head to president biden if it clears this senate hurdle. yale university being sued by a group of students and an advocacy group for what they say is systemic discrimination against students with mental health disabilities claiming that students struggling with mental health were not properly accommodated and that school policies forced them to withdraw

to seem treatment. yale said it has been reviewing its withdrawal and reinstatement process and increased resources to support students. and new numbers from reinsures swiss sews hurricane ian most expensive on record after hurricane katrina. ian caused between $50 billion and 65 billion in insuring damages after making landfall in western florida in late september with extreme winds, torrential rains and storm surge. you've got prices that have gone up there, tyler, and a lot more density, more storms in florida meaning a lot higher payouts. >> density and highly valued pieces of property captiva, sanibel, naples area, fort myers as well thank you. further ahead on the program is beyond meat beyond hope. the company losing around $13 billion in market cap from its initial valuation.

we will break down the losses. >> you want to talk about big declines we're going to trade some of the worse performing s&p stocks in november and see if any are worth buying on the debt. and after the break, morgan stanley slashing its housing outlook. data points more and more to a housing recession. the strategist behind the call joins us next. "power lunch" will be right back we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i can't believe they're just sitting up there! sitting on

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breaking news out of the chicago fed and steve liesman has it steve? >> tyler thanks very much. the chicago fed announcing at this hour that charlie evans has reported, will step down, as reported in january and replaced by austan goolsbee, the chicago economics professor who is a frequent guest on cnbc he is the former cea chair for president obama and evans will step down in january goolsbee will step in. evan's stepping down what will be 15 years on the federal reserve, bank president of chicago, and many years in the federal reserve system including head of research in chicago, and then goolsbee steps in and i believe get the vote at the late

january, early february 1st meeting. i'm pretty sure that's when that first vote will happen, but chicago does have a vote next year he'll step right into it a vote i believe every other year and goolsbee, what can you say about him? obviously comes from a democratic administration. has been concerned about inflation of late. not really complaining about the fed doing too much i remember during the financial crisis he was cea chair and talked a lot about the government programs but also putting in economic incentives and comes from that chicago school as well >> thank you very much, steve liesman. austan goolsbee in at head of the fed in chicago thanks, steve. we have less than 90 minutes left in the trading day. get you caught up where the markets stand now. see's the dow jones industrial off by a little more than half a purse or 198 points. s&p is barely in the red down .08% and nasdaq composite in the green by 0.10%.

financials pores performing sector bank of america, wells fargo and jpmorgan lower on the day. bofa off by 2.5% oil adding to its gains, up just under 1% at $81 a barrel now opec plus meeting this weekend and markets accounting for at least a chance of a cut. falling dar contributing also to the gain in crude. wti up three quarters percentage point. to the bond market yields falling after that weaker than expected inflation report. the core pce raising 0.2 of percent. yield on a ten-year note sitting just above 3.55% tyler? >> all right turn to the pain in the housing market in the last hour we hear that wells fargo is cutting hundreds of jobs in its mortgage business across the country this is pending home sales

yesterday dropped by nearly 37% year over year worst annual decline in 28 years. housing starts also fell 4% in october. existing home sales dropped 6% in october falling for the ninth straight month and our next guest says it's going to get worse. just cut his housing outlook for the year next year, u.s. housing strategist at morgan stanley going to get worse why? >> thank you so much for having me on, and you just mentioned >> glad to have you. >> i think you just mentioned a lot of statistics pending home sales existing home sales housing starts that we do think are poise td to get worse in th year ahead housing, characterize is bifurcated view. housing activities and starts is poised to fall further and has a fair amount of room to fall whereas home prices we think are a lot more protected doesn't mean year over year home prices stays positive but a lot

more protected in the drops we see in housing activity. >> why is that explain that to me and explain the relationship between those prices and interest rates. in other words, i'm guessing that if interest rates are going up, prices can't go up quite as much as they would when interest rates are lower? are. >> well, i do think that affordability plays a big role here when we think about affordability and some inputs there prices, mortgage rates, you're mentioning, incomes affordability deteriorated more over the past 12 months than any 12-month period on record. we have confidence in that data back to the mid-1980s, but if we think about the follow-up question there it's who's affordability just deteriorated current homeowners, in our view, overwhelming majority have 30-year fixed rate mortgages most were able to purchase their home or refinance their mortgage in 2020, 2021, when rates were a

lot lower's we think their affordability is in the a very good place the deterioration is first time home buyers, perspective buyers stepping into this a lot less likely to list a home for sale moving becomes prohibitively expensive. >> yes why would you move if you've got a 3% mortgage to a house that's probably equally priced or maybe higher and pay a higher mortgage rate, unless you have -- >> exactly think about how that flows through to sales if i'm not listing my home i'm not buying a home after that exacerbates the drop lowest levels since 2013 indexed affordability deterioration this time around to what we saw during the great financial crisis, sales are actually falling faster this time we think that continues through the middle of next year.

but on the other side of this coin, if those homes aren't being listed for sale and existing inventories are close to lows of the past 40 years, as far back as we're comfortable with that data, if those homes aren't listed for sale or aren't sold then home prices are a lot more protected months of inventory only at four right now, a healthy market from that perspective we think quality of mortgage underwriting is robust tightened since beginning of covid. ricks of distress and foreclosures exaggerating the drop in home prices we think that's also a pretty contained thing this time. we think home prices fall next year about 4%. sorry. go ahead. >> what about insurance prices i've been reporting in florida, we've seen sales falling through because the price of covering your property is unaffordable. how much are you looking at that as a factor across the nation? >> that certainly plays a role,

and we think it play as role as well on the demand side of this equation as to where demand can step in and as we've mentioned, our forecasts on the demand side are pretty weak. that just contributes to that weakness, but the constraints in supply we think that the fact fewer homes are going to be transacting, low listing volumes, low distress in the market keeps prices more protected. the 4% drop we're calling for next year only brings home prices baaing to where they were fourth quarter of 2021 i will say that the cutting of forecasts was more on the activities side. not necessarily pricing side. >> thank you for joining us. appreciate that. >> thank you so much for having me on. coming up, our tech companies already seeing positive impacts from cost cuts. discuss that, and be sure to check out a special edition of "the tick" on your second scream our team of traders show you what pros are doing in the market and how they're doing it.

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welcome back to "power lunch. as we enter the final month of the year the dow down about 5% s&p 500 down 15% and nasdaq by far the worst off 26% in 2022. kristina partsinevelos joins us now from the nasdaq with more on tech's weakness. hi, kristina. >> hi, contessa. more than 189 tech companies laid off just last month more than september and october. more than 53,000 people in one month. meta and lyft cutting 13% and list continues, which begs the question now, why is it all happening right now? you have online demand that's surged tech companies kept hiring now a slowdown that brought a slowdown in ad spending coupled with more expensive debt because of higher interest rates and companies realizing they may have overspent on projects. take for example amazon's alexa

unit seeing most job cuts. meta's vr reality lab or zillow offers a unit that no long every exists what's left are leaner companies. burnstein for example found uber has seen greatest growth in employee productive tib over the last years because it cut jobs early and increased prices snap, stock down 77% year to date but managed to grow its revenue per employee ye over year in the third quarter after announcing a 20% pay account cutback in august. demonstrating that growth at all costs will no longer cut it in today's market. >> and it's true that kristina, investors like cost consciousness, activist investors truly do tech layoffs more than doubled you mentioned from october to november is this an indication of what's to come? >> we talk about it a lot on tv, and maybe that skews what the overall market is really telling us, but you have bankers and

analysts morgan stanley and goldman sachs saying, no tech companies account for 26% of the s&p 500 market cap. why we talk about it but the tech labor footprint is much smaller less than 9% total appointment and i'm generous with definition of tech. other places saying less than 1% it's not large enough to cause a meaningful slowdown and even janet yellen, treasury secretary yesterday, "new york times" deal book says tech faced some of these out of the ordinary f factors over the last years. unprecedented boom coupled with a slowdown and massive drop in ad spending. >> thank you, kristina. and november a strong month for stocks despite economic uncertainty but names that fare so well. are they worth picking up now? we'll talk about that on "three stock lunch. lor! you excited to be here?

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okay it's time for the stocks the drinks have been pored the stocks coming off 5% but today we're looking at some of the names in the index that had a less than stellar month. among the worst performers,

discover, tesla, and warner brothers let's trade these. let's go first, scott, to warner bros. discovery, a company that is in the midst of a real spasm of cost-cutting. >> that's right, tyler it's really messy. they have new leadership, they're cutting a bunch of jobs, they're doing a bunch of things like killing cnbc plus drastic is not necessarily bad, particularly when you're phasing the sort of mess as you often are post-merger. they're doing the right things they have great intellectual properties, and that's the reason i would be buying warner bros. discovery. it's down year to date you're going to get a great business at a great price. if there's any caveat, they have a bunch of debt. the money they're saving on expenses needs to go pay down on

the debt. the next one, while the stock may have declined over the past month, the attention paid to it has not, tesla. >> yeah, but it's attention for all the wrong reasons. people love the cars and they love elon musk, but if his attention is focused elsewhere, then he's not going to be running tesla. >> i'm not so sure about that, scott. i'm not so sure that everybody loves elon musk anymore. >> but, tyler, that's relatively huge starting at the beginning of the year, everybody wants to be elon's best friend and now he's clearly focused elsewhere. if you think about the operational issues at tesla, any time there's good news, it's reflected with bad news. they want to ramp production, which is great, but they're recall 34g,000 cars in china they're the leading ev factory, which is great, but everyone else is catching up. they're delivering the semi,

pepsi truck, but they're three years late it ice a great brand people love the cars they may not love elon as much, but it's still a great brand. >> okay. let's move on to advance auto parts. i don't know whether they have parts for teslas, but maybe they do. >> well, we're saving the worst for last if you look at the operational metrics for advance auto parts, it's a real mess margins are horrible, particularly compared to competitors like o'reilly and auto zone as is cash flow. revenues were flat in the third quarter, which might be fine, except earnings were down by more than one third, which means margins continue to erode. star bird took a big hit they tried to turn thing around. they threw in the towel last year they started buying stock when it was $1.71 a share it's actually lower than that,

about 150 a share some might think it's a bargain. it's cheaper to reason because it's coming in way behind its competitors. >> scott, thank you very much for those profiles of warner bros., tesla, and advance auto pa parts. scott nations. the stock down more t80%, beyond meats is it beyond repair? next you ok, man? the internet is telling me a million different ways i should be trading. look!

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shares of beyond meat have lost 80% of their stock. is the company beyond hope we have more on whether it can pounce back. hi, pippa. >> beyond meat was once a darling, but the stock is down sharply for the year, and now 94% below its july 2019 record h high the company's market cap went from $14 billion three years ago to $930 million today. what's gone wrong. they've faced specific as well as industry-wide challenges. it's dealing with input costs and ramped inflation, which has caused consumers to switch to cheaper products executives have departed within recent months and that's in the bark drop of a slowdown of the

plant-based product strichlt it slashed its full year sales outlook and announced its second round of layoffs with a 20% cut in its staff since august in an effort to reduce expenses. beyond meat's cash flow has slowed, but over the past year the cash has decreased by $409 million and as of q3, the company had just $93 million in cash left. it's targeting positive cash flow in the second half of next year, but there are a lot of questions about whether they can meet that goal. >> pippa, it's interesting some of the other companies, you have to wonder if they're facing some of these similar interests and why the interest in alternative meats has waned. is it just a fad >> there was so much hype a couple of years ago. everyone wanted to try it. it was a novelty item on the grocery shelves. people wanted a new experience now some of the benefits on the

health side are being left to question the novelty's kind of worn off and it's more expensive. >> i think the people are looking at the cost of what they're spending at the grocery store and thinking, i've got to cut back pippa, thanks. >> thank you all very much for watching "power lunch." >> "closing bell" starts right now. i hope you have a great day. it has been an up-and-down session following the big session. up and down at the moment. the dow is pulling back as we kick off the final month of the year this is the make or break hour for your money i'm mike santoli in for sara eisen. pulling into positive territory preserving the 3 president 1% gain from yesterday so far you see the dow down quite a bit. down almost half a percent a good chunk of it, about half of it is src