does not have a handle on the supply chain or the challenges that they're facing. >> is it up to the biden administration to solve the supply chain problems or is that -- is it really -- i mean, maybe they can be helpful, but t■ problem endemic to the companie■ themselves >> a lot of it is also infrastructure-based when we peel down the problems, it is, you know, it is the railroads. it is the tunnels. it is thee1 roads. it is the lacko■ of space ande1 lack of ability to move the product along. >> lori ann, have a good holida■ weekend. >> thanks. >> and to everyone watching as well, where is myqwho, ho, ho hat. >> look at you ladies in red here. >> tyler, we got the spirit here >> have a wondeu■u&■d■1 christm. great end to hanukkah, everybody. we'll see you in the new÷■ year. i'm offe1 next week. yes. >> "closing bell" starts now.i stocks have been all over the map today as inflation and consumer datae1 raised more

questions for invesjs. but we are moving higher this hour as we heade1 into the holiy weekend. up 165 on the>d■ow high of the day up 191 this is the make or break hour for your money welcome, everyone, bell." i'm sara eisen take a look at where we stand in the market up half a percent on the s&p 500. looks better than where we were earlier this morning still down, though, for the week, third week in a row of losses for thew■ s&p 500 if you look at the nasdaq, there is turned higher in the session. it is lagging today. it is beingxd■helped by amazon, alphabet, costco, 5■■■3■eta, ap nvidia lagging, tesla down again, down 18% so far this week check out the major averages on the week i mentioned the7oo s&p.i third losing week in a row the dow managing to eek out a gain for the week.fmand the nas as we saw rates turn higher. they continue to march a little bit■3■higher today as bonds sell coming up on the show today, we'll talk to venture capitalist bradley tusk about thex■ regulatory and antitrust issues at play in the new year. and the stocks that could be

impacted most. wet our big guest of the hour. howard marks joins us for ai] interview.ll exclusive eu5 howard, welcome. fresh off that memo everyone is talking about. >> thank you, sara nice to be here. >> it is good to have you. happy holidays let's start with the sea change. that was the big headline from your report, how you kicked off your memo. you said, u■■■3i] yearse1 in yo investing career, three sea changes and we're in one of them what does thate■ñ■ mean? >> well, a sea change is a major transformation of the environment, change in attitudes, et cetera i suspect that we may be at the beginning of one the firstb.■ one was the fall of interestb■■■rates from 20 to 0 1■!■■ very positive effects the second was the opening of

investors' minds to what we call risk return analysis and before the '70s, the job of the investor was to avoid risk after the '70s, it waso■ to intelligently take risk. )■îd >> so what is this sea change? >> well, you know, since -- >> that's happeningxd■-- >> since the fed, central banks around the world andw■■■treasury took strong action to solve the global financialw■ crisis in '8, '09, we have been living in a highly stimulated, very positive easy money environment for roughly 14 years and i think that, you know, a lot of people began to invest or came into the business in those 14 b.■years. not too many have a perspective on the period before the global financial crisis and they may

think that the last 14 years wa■ nor normalcy i don't think so i think it was the best imaginable period for borrowers think that it is necessarily going to continue. >> so, do you characterize the past 14 years post financial crisis as a bubble and now that'se■ popping we return to some sort of normality or a crash [le think a bubble to mean5■■■ irrational appreciation. and the asset appreciation in thatu■■■period was not terribly positive it wasn't an unusual 14-year period in terms of asset returns, et cetera it wasn't the result of unrealistically optimistic thinking so i -- bubble,e1 i think, has ■ specific use.ç it was a hyped unusually positive period when everything

was easy for certain classes o+■ people as i said before borrowers and asset owners inxd■ particular and it is not, i don't think, going to be the norm going forward. >> so is youré@■ bottom line (ur are a thing of the past and now used to higher rates for longer even though the market is sort of thinking they might go down next year? >> well, you know, i don't -- i don't think thatq■ we should expect -- i don't think it is prudent to expect to have stimulative rates all the time i describe that as taking a shot of adrenaline every morning. i don't think it is very viable. we'll see lower t(■ates well, first of all, whent■ the battle against inflation is won, i thinklp rates will -- the fed will bring the fed funds rate back down.

and we'll see very low rates again if there is a recessione1 that has to bee■ cured over time but i just think that, you know, people got so used to zero rates of interest. the fed b■7■ght the -- the fed funds ratei■ to zero late '08 to fight the global financiale■ crisis and left it there for seven years and had a dickens of a time raising it because it thought that we shouldn't permanently be at zero, but the markets had tantrums and resisted i don't think that, you know, what i say in the memo,e1 don't make many predictions, i don't believe in predictions, including my owvé we don't bet on predictions at oak tree but what i said in the memo is c think that for the next several% years, the fed funds rate is more likely to average between 2 and 4 than between z0 and 2. >> do you think that means for equity investors brace forf■sjut

pain after that adjustment led to -- where are wef■ -- down 20% on the y%■.for the s&p this year >> mostt■qt■think there will be a recession ahead and when the recession cuts int■ earnings, you know, we have your -- you have your price earnings ratio, well if the earnings go down, the price earnings ratio goes up if it gets too high, people say■ it is not sustainable and may bring the market down. i'm not sure what they're -- how they're going to react puá■that would be a ñ■possibili. >> in other words, recession will hurte1 valuations until the federal reserve fights the which is basically what the market thinks nyq■ happen in the back half of next year?fáç >> yeah. i think right now -- i think that's -- i think that'se■ an o the optimistic interpretation of what's going on. i don't rule it out, but i think

that's kind of the best case for the bulls.b■■■a■ and i don't like to buy on the basis of the best caseç■ because realized, all the other possibilitiesxd■are worse. i don't think that -- i don't think that thediscussion of a rate cut in the second half of next year is rational and cá'■co objective. i think it is optimistic >> yeah. so, are bonds better relative bet right now than equities? >> well, of ç■course, the thing about bonds is you have a promised return you buy a bond at an 8% yield, you're promised 8% it is a contract between you and the issuer you don't need cooperation from the market and if you think 8% is a good yield, and the bond will pay, you should buy it. if rates go upe■ much further,

bond pri willñr■go down. bond prices rarely go down ■9■]s much as stocks when stocks go down they become worth less, not x■ worthless, but worth less. in my recent memo, gave a list which i thought was very important, a list of all the ways in which low interest rates are helpful. and it is worth studying but if you -- if you -- if you pick up on that, then that means that highere1 rates are not helpful for investors other than the factx■ that they help to get inflation undere1 control.ç■ >> howard, stay with us if you would. we're getting into the meat of it we have more to talk about surrounding your outlook a little bit more into credit conditions and how you would position for this sea change in 2023 and then later, we'refá going to talk more to howard marks, later in the show, we'll talk to

bradley tusk about key antitrust battles to watch in the new year it is already heating up with microsoft responding to the ftc, which is trying to blockf■ its activision take-out. we have the dow higher we're near the highs ofçó■the d, up more than 140ois. pnt there we go. gains.ñ■ s&p 500 also higher,q■ beingç■ d by energy. most sectors are green except for tech and healthcare. we'llt(■be back on "closing bel" i'm a laidback mediterranean hotel, looking for someone with simple needs. just a room, with a view... of rolling portuguese vineyards. a meal... of fresh, seasonal cuisine. exercise... in the crisp countryside air. and pets... i have a herd of horses. if you too share these simple needs, i may be your perfect somewhere. ♪

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talking about his latest memo, he says we're in aw■ sea

of changing dynamics from central banks, higher interest rates, trimming of the balance sheet, howard. wanted to also get your thoughts on credit conditions, which as accommodative in recent years on theok back of low, zero interest rates. what happens now we already have seen the turn this year. whate■q■ comes ewr,■ >> people who had to keep -- who liked keeping money in cash couldn't do it because it paid nothing ine■ that period so they moved out to buye■ securities people who used to buy ultra safe securities didn't get the return they needed, so they had toq■ buy less safe securities. people who used to buy less saf■ securities, they had to go out and buy risky securities so in all these ways, low interest rates encouraged demand for riskier assets and a of what we call the risk curve and so it became veryjf easy by definition to raise money for

risky companies, risky schemes, and that kind of thing and it -- one ofñ■ the great ironies, of course, was the 2020, the terrible year for the■ pandemic was -- set a record for fund-raising fori■ noninvestment grade debt because of people were so eager to get return. ltu■p &hc% that was the way it was when rates were low, and as i said, a o effects.%■ when the fed funds rate is -- if it is in the range i'm talking about, 2, 3, 4, and otheri] this yield 6,e■ 7, 8 or 9, 10, 11, people won't have to goe1 out to buy the riskiest things tox■get the returns they want or need. so i think it is a -- that's one of the ways in which the conditions will be different >> so, if the financing environment is -- continues to

be less friendly, does that mean we'll see more defaults? is that somsn■ing you're expecting? >>q■ i think the combination of the less friendly financing environment and maybe a little more difficulty on the part of companies.q■ remember, from '09 through the bekj■j■j■ '20, we had the longest economic recoverye1 in history. history.e■ so, there -- you know, we went a long time without a recession or slowdown in the economy. and that compared with the low interest rates caused people to go out and approach the riskier end of the risk curve. >> you write that in the memo here should follow the investment strategies that worked best over the periods were not the ones that outperform in the years ahead because you don't have to get those riskier investments to i don't know what -- i'm trying to subtweet you there.

for, i don't know, unprofitable tech companies, nasdaq as some of the tech leaders in the market none of that intrigues you >> to say -- first of all, oak tree isca credit investor and doesn't invest in tech startups or that kind of thing. so -- >> i know, but you've written about those stocks before. >> i think you use the expression, that's it for so and so it is not that that's it it is that everything gets a little harder. things -- my main take on this 14-year period was that this was easyi■ times it was easy times to run a company, easy times to be ano asset holder or to be an asset holder with borrowed zv■funds. it isn't going to be as easy going forward. not as easy to make money because the environment -- wel$■ probably will have a recession soon, everybody tells me z■so easy to raise money in the capital markets. because there won't be the impa

tuesday from all the people seeking adequate returns or refugees from safe securities. so, i just think that the halcyon daysc■ may not return. >> so what are you guys doingv a credit investor for -- to prepare fore1 this more difficu time where do you see the big opportunitys >> well, you know, the yield on high yield bonds, for example, has doubled in the last year and it has gone from roughly 4 something to roughly 8 so we think that's a good yield. we'ret(■holding there. moreu■■■companies are -- need rescue financing orok opportunistic lending or private lending, and we're finding opportunities there. if right about the environment,

all these things will get better which means that it is to say cheaper, better for the buyer. but, but they■td already and so we're already moving ahead. >> i guess my other question that i was wondering as i was reading your piece is how long do you expect thise■ environment to last? >> well, i don't -- i don't -- since i don't make predictions, i don't put dates onv one of my colleagues once said, ifv price, if you name a price, don't name a date. i'm not talking about 2023 i'm talking about a prrod of multiple years >> last one was what, '14? >> yeah, yeah, well, you know,é■ that was because the fed but i think that, you know, low -- low end declining rates were such contributors to the last 14 years and the last 40

years and if that influence is off the table, then it stands to reason that life is going to be different. >> and how does the global picture factor in here china could be on the brink5a■ i reod to fightf■ç■ inflation asu the r major central banks have in europe, while it is doing it■ it is in a much tougher economic position how do you factor in the global picture which is pretty fragmented right now into this outlook? >> youu■■■know, my account is mostly aboute■ the u.s and theree1 will be cross cur8em as you describe, a prosperous china, perhaps a recessionary europe, everybody tells me but, you know, they don't fundamentally change the story in the u.s >> got fáit. so says the fed as well. howard, thank you very much for taking the time5a■ today and talking to usç'it■uça■ your latt thinking always appreciate it

howard marks of oake1 tree take a look at wheref■ we stand right now. higher across the board. nasdaq is hanging inñ■ there up more thançó■ .1. it has been a tough week for the tech stocks in general s&p 500 up half a percent. energies is an outperformer, up almost 3% today on a jump on crude oil. technology is lagging again as bonds are selling off. yields higher. still ahead, tesla hitting a 52-week low, even after elon musk said heq■ probably won't sl any more shares for the next two years. details ahead. and as whe■■o e ad tbreak, check out some of today's top search tickers on cnbc.com. tesla, the most interest, followed by the ten-year yield, which is higher j■today. á%ásq■lagging, and the dow jones industrial average up half a percent.e■ outperforming overall for the week, up5■■■almost a full perce. "closing bell" back in a moment. that means a lot for my community and for every community.

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president biden. >> the finalt■w■ tally was 225 favor with almost all democrats and 9 republicans vot)od for that bill. 201fáe1e1 against with 1 democr joiningxd■republicans in opposition that funds the government through the end of the fiscal year in her final address on the house floor, speaker nancy pelosi called it a package for the people >> we addressed the needs of america's workingñr■families wi special focus on our children. so i riseñr■in strong bipartisan for this bipartisan omnibus government funding bill for us today to keep from shutting government down, but more importantly to make the needs of the american people.t >> now, as i believe you mentioned, the government is supposed to run out of money tonight at midnight. but this process of enrolli i÷b engrossing the bill to send it

to his desk could take a couple of days. congress passed another short-term funding measure to last through december 30th and prevent an accidental shutdown over the holidays. of course wi we do expect president biden to sign this bill he helped ç■unst)■c■ negotiatio when he met with congressional leadership at the white house. so both parties can claim wins in this legislation. back to you. >> 4,000 pages strong. thank you. up next, venture capitalist bradley tusk on whether congress will take aim at big tech in the new year and the companiesñr■that could impacted most. there is some new funding for antitrust regulators in that bill just described. we'll talk about it when we come back

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e1 check out our stealth mov. mission produce. stock is getting smashed shares of the avocado producer are getting sliced after missing on the top and bottom lines due to plunging avocado prices mission produce shares have been rallying since mid-march, but are hitting rock bottom on the results today, down q■15.5%. microsoft responding to the ftc's lmlu%q■ blocking its $70 billion acquisition of

activision blizzard saying it would not harm competition in the video game industry because consoles brad smith saying in part, we solutions with regulators that will protect competition,ñr■ consumers and workers in the tech sector. also adding as we learned from the o■past, the door never clos on the opportunity to find an agreement that can benefit everyone let's bring in braué■■tusk we often turn to you about the intersection between washington and technology regulatory expert. what do you thinku prevails in this case? >> i'm going to go with the ftc. i think she is a very, very, very aggressiveó[■ regulator, ts is her big campaign, that will define her tenure in the fcc charge we're inu■■■a world where theres n a antitrust in this po)■;kñ■ tech generally on both sides of the aisle. you saw some new money coming yesterday out of the senate

spending billi] to the xd■tc for antitrust prosecution. and i think that, look, unless ]in case, i think they'll face%s@r■c trouble and it is hard to argue from what i can tell that there is $68 billion to acquire the5a■ biggest video game in the world and one o in the world that is not a potential monopoly gli get your point about how she's a tough regulator and they're5a■ getting more money at the republicans taking over the house, i wonder how much of a priority, when for tech reg■ñq%=9u■u■republicans, it is about content moderation, not necessarily antitrust. >> so, i think that's right, except if you look at legislation that has passed both theñi■house and the committees thisa■■■calendar year, both had strong bipartisan support. senator grassley call on president biden to be more aggressive on antitrust. you see it coming out of both parties. and while odds are nothing will happen in the new congress, that's generally howa■■■things ,

if there is one area whñs■ the white house, the senate democrats and the house republicans could come together, it might be big techx■ regulati because everyone dislikes it for different reasons but everyone does dislike it. >> there were two bigv we were watchingu■■■on big tech this year. american innovation and choice act and thed■■markev[■ act what happened there? why didn't they get votes? >> you know, big tech did a good job lobbying as they do, spente■ nine figures knocking down the legislation, they managed to peel off a couple of critical people and wasn't able to bring it to the floor. and to a certain extent, they probably could have moved this thing through had they really cared abouti]5a■ it. but both had.■■■a lot of big te in their districts or in their states and as a result, perhaps they're afraid to move forward on uit i think this issue is not going away. >> so you expect tougher

antitrust, which i guess could shield deals next year what about crypto regulation everyone in their mother wants to jump on this bandwagon after the ftx implosion. ultimately ise1 it s.e.c.? is it d■eu■ >>f■ so i thinkñi■ftxqprobably t the nail on the coffin for the ■ cftc and likely to be regulated. i think a stable coin bell could make its way through congress. everybody wants one. industry wants one thewí■1 regulators wantu one we need some sort of definition we can work from on it i also think that the worst and crazier the samçó■bankman-fried gets, the better it is for the rest of the sector when first v(ts deregulation and a negative sign for the entire sector. once he becomes his own circus act that is just this unique

fraud in american history like-■ bernie madoff and starts being about crypto and starts being ■■]u ■(t&há■p &hc% are you doing that >> we do have ó■■■nvestments and we have --x■ we haven'ti] nc a specific investment in the last year or5■■■so but we'll continue to invest in web three and blockchain and spaces around it >> so your faith hasn't been shaken by some of these issues and the regulatory u coming >> i think that it ise1 definity more clefrpi more challenging than it was before but there ise■ still a place for it the question is, look, this is true for every tech company we see go public in valuations and they tend to fall. there is a price and evaluation for all the companies.ñ■ it just may not be the inflated valuation that tech companiesq seem to get in the private markets. maybe now we'll have more valuations, but weñ■ couldñ■ use that for almost everything. >> bradley tusk, good to talk to

you here at the end of the year about what you're expecting. thank you so much. from tusk ventures look at where wemçstand. losing a little bit of ground here since theop of the hour s&0■h$m up a third of 1%. what turned red? well, healthcare and tech were always red we lost a little steam in consumer staples, materials, financials energy still4lf■■■i■strong upwwt 3% communication services and utilities rounding out the top three.x■ energy,e1 i mentioned, big winner, off the pop in crude oil today. keeps outperforming the broader market.■ó4■ 'ldiuswhheengywel scs etr er stocks willpower yourñi■portfol again next year. this is a sect only one that is green for fá you can listen to "closing bell" on the go by following the "closing bell" podcast on your favorite podcast app we'll be right back.

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what is wall street buzzing about today? about today? biotech stocks and new around an alzheimer'sñi■treatme from eisail■ and biogen. a woman who was in the trial for the treatment died in september from brain swelling,e■ bleeding and seizures they have reported other deaths of participants in the trial we asked the ceo about earlier last month.o >> in the core study of this late stagex■e■ñ■1trial, over 18s of treatment duration we saw 13 deaths however, seven of the deaths

were in the placebo group. six of the deaths were in the treatment l■group. >> as for the most recent report in science magazine, eisai saying in part, quote, it would be inappropriate to providee1 additional information about specific patients or comment on information that was provided by other sources. especially those who may not have all the information e■ conclusion adding if approved by the fda, eisai believes the drug has the potential to make a difference for people living withe■ alzheimer's disease, their loved ones andq■i■healthcare professionals. in a separate draft report, the institution for clinical and economic review called the treatment with the druge1 promising, but inconclusive. this week on slowing demand concerns and amid the downturn, elon musk says he won't sell any moreñi■ shares until w3■025.ñ■ that story, plus airlines

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we ar%@w=]e■q■"closing bell" market zone. nancy tangler back to break down the crucial moments of the trading day. plus, "the wall street journal's" tim higgins on tesla and leslieñ■ josephs joins us on the 5■■■irlines. we'll kick it off broadly here dow is marching back higher toward the close here,5■■■off 1. s&p up a little less than half a percent. and let's check out the nasdaq, positive, but just barely.

kind of got a tail of mixed tech stocks today apple are not. tesla is not, which we'll talk about in a moment. nancy, what strikes me is we had some pretty decent data today. consuge■■■spending rose. it was a miss. and it is stagnating, but we expect that. and inflation>#■ntinues to come down that pce, which the fedzv■ looka o food and energy, allo■ moving in the right direction. the market is not celebrating it as much as it did other previous software inflation reports why do you think that is >> well, i think -- a couple of things, that was a great interview with howard marks, i really enjoyed it. he said one thing thy(8■wasn't the point of the interview, but was important, i thought, that the business -- that have come into the business recently have only operated in a declining interest rate or low interest and so what i have been ñ■utsizedlp moves to data

points that ultimately are going to get revised in a month anyway volatility that is driven by the hedge funds and algos who are not investing for the next two to three years like many of us do but rather for the next two to three weeks. so, the news today was, ijf thi, quite good i thought -- i think the gdp number was good. gdp now was u■■■pgraded. we saw cpi come in you're seeing thei] signs that inflation is rolling over in all the data!■■■points you don't have it look very far with housing rolling over, shipping costs just plummeting i think we need to step back and take a longer term timed horizon a week i said we're actually in j■ because we finally think it is ñ■ty >> are you still doing that? >> we are and we'll continue to. we're not making big trades. we're adding to positions or adding new positions

incrementally. yt■n the face of what many of the hedge fund billionaires haveìá■% been saying. i don't want to argueqwith them, but i do think5■■■based on my experience, even if you're early and buy a stock at 100 bucks, goes to 80 in the near p,■term,u then it is at 300, the question you should be asking yourself is >> right by the way you mentioned the gdp now. atlanta fedu puts out the tracking fourth quarter gdp. up to 3.7% for the fourth quarter, which doesn't sound like a recessionary number he tried to easef■ç■ concerns or the automake this year as well as assure investors his position as twitter ceo is not a distraction, but even outspoken bulls like dan ives from web bush have turned on the company. cuttinge1elivery targets saying tesla needs strong leadership to

weather what he calls a category five stor/v■ here is what he told cnbc earlier today. >> we're starting to see cracks in terms ofu china as well as th u.s. so we had to cut numbers in terms of q4 and 2023 and it has been just a horror show from us, head striker moment as he's navigated this twitter situation. still long-term believers. no doubt this has been a nightmare on elm street. >> here to discuss is time1 higgins, tech reporter at "the wall street journal," author of power play tesla, elon musk and the bet of the century. tim, great to have you how much do you think has to do with the twitter distraction, whether it is share sales, whether it is the fact he's tweeting all day and all night and trying to turn around this company? >> it is a huge issue. some inv%)úju■ are concerned he's overly distracted on this new toy he has the tesla future looks a little unclear. this is a company based upon ae■ growth stock story and when you're seeing some early signs that maybe growth isn't ase■

robust as predicted, that causes real concern among these investors. >> that's what i wanted to ask.o as i highlighted and what you just said is that growth isn't as robust. i know that car sales have been hit lately by consumer spending. what fundamentally is your best read as to what is happening for for instance, the competition is faring relative to tesla they are finally chipping away at the market share. >> elon would like to argue this is a macro economic issue, the fed is raising interest rates and tesla has fallen victim to it, likel■ the rest of the industry perhaps yes, gm and ford, their shares are down not as dramatic as tesla the concern here among investors is seeinge1 things such as tesla in recenti] days, $7500 incentis on the sale of new cars to move then this month. that's8■zñ■ort of old schoolçó■ detroit move thee■ metal before the end of the period kind of

thank tesla hase1qtraditionally not done it hadl■ robust demand always a question -- always been an issue of too much demand and not enough supply and once that kind of -- the paradigm goes to perhaps too much supply and not enough demand, that really changes some ofe1t(■the thesis r tesla investors going forwaeñ■ ñ■ levers. >> tim, thank you very much for joining me >> sorry,e1 i'll let you finish. what were you going to say >> they're saying they're firing on all cylinders >> yeah. absolutely tim, thank you didn't mean to cut you off there. nancy, i'm curious your view is tesla getting fromming for you based on 0!uq%=9ñ■ >> it is it is sof■ okfunny, i was sittin the desk with you down onçó■the joe rogan. this was a -- also a tumultuous time, sleeping on the factory floor, got in the trouble on the s.e.c. on tweets rolled over a couple of times and had this very limited

insider board. we determined that we couldn't invest in it anymore.e1■@r■t&hác it was more like gambling rather than investing table. we took a e■double.f i say you underestimate elon musk at your own peril.t and we also need to keep in mind, other companies are discounting, offering financingm offering 6,000 off the silverado. i think an industry wide iss?ef■ right now and let's remember that his costse■ are coming down in terms of copper and aluminum and other metals that areçó■used in evñr■ i'm not saying you jump in here. it ise1 almost in our buy range■ relative price to sales ratio. you take the close look, which we're doing and we're just doing the final work on what is going to be the catalyst to get it out of thisxd■1 funk i think you will be pretty happy you own this stock if you take your timee1 getting into it. i think they're overreacting. >> keep us posted on that

catalyst watch meantime, winter stormse1 and bitterf■ cold temperatures for airlines to cancel thousands of flights across the u.s. impacting the surge in travel ahead of the christmas weekend leslie josephs joins us. just how bad is it for air travel today, relative to some incidents? >> i÷■=■r i wouldn't bet(■talking to you right now if my wasn't canceled. but we had about 10% of the flights canceled yesterday, more than 2,000 or some 4,000, close what airlines are trying to deao with this, how to clean up the operation once the big storm system moves out we have bad weather from seattle to north carolina to boston to chicago to cleveland it is all over the country and it is not so much -- it is an issue of the planes being able to take off, but also the workers on the okground, theç■ people that cateplvhe flaenplans you're talking about bitter cold and extremely high winds there are conditions that are

not safe that are slowing everything down in what is supposed to be the busiest time >> i was going to say ultimately does it impact the airlines financially when something this big and widespread happens >> it absolutely does.e■ airlines had a pretty ea of it with thanksgiving and di$ a few victory laps there but motherñ■ nature had other plans in store for christmas time and youe■ could alb?%q■ rem the store winter storm 8k because come xd■anuary, we're ñ■ give af■#■w previews for earning which come out in the middle of january and this is going to come up and what it costs them to move thesexd■planes around. cancel and reaccommodate as man■ passengers as possible and christmas, you know, that's a set date, andr■ lot of people, if their flight is delayed two çp em1 people are asking themselves is it worth it to continue on the trip airlines might be on the hub for refunds asx■ well. those things will be outlinedçó■ probably midor or early in

january. >> good luck with your own travel i hope you get xd■ebooked in ti for the holidays thank you very much. check out oil prices they're rallying today after russia said it could cut output in 2023 because of g-7 price caps on its exports. wti approaching almost $80 a barrel for the first time in weeks. that newse1 sending energy stoc higher as ç■well the seconder is the top performer today, this week, and this year, nancy does that continue into '23? >> i think it does, sara i think the companies have been very disciplined about not adding capacity and not w■ overinvesting. and so if you look at that, and the special dividends th@ú they have been paying, i think this is a place where you can hide out inq@#■volatile first quarter which we expect and maybe even a volatile first half. but if you look at a name like eog resources, they own a lot of the land where they're drilling and for oil and shale, and in doing e■that, theyr■uz much less

subject to the regulaá áv■ problems that have hurt other oil companies and i think you want to step back and get expo sure to the integrated we were exposed to the upstream names and still own them, but i think you also want to now pull back a little and look at the other integrated after the recent runs. this ise1 -- these stocks are vy cheap and they're paying you a heck of a lot to wait. $4.80 in special dividends thisç and they raised their regular dividend from $3 to $3.80. that's a decent return faang had a similar payout as well.e1okj this is an area we're almost double weight the sector and are looking to add. >> nancy, back to the broader market another guest to weigh in. joining me now is adam o chrisofelli. your views go against the could consensus. you think it is getting too

negative for q1, right >> i think thew■ commentary arod 2023, the consensusqassumes a difficult first half, q1 followed by a rebound in the second half. the second half could very well happen but ixd■think first half sentimt is too negative. i think earnings season is not perfect. a lot of noise, a lot of companies acknowledging head winds after experiencing i think for a few reasons, companies have a couple of tailwinds now including reduced fx pressures, aggressive cost cutting, huge theme this week, especially with companies like fedex,f■ normalizing supply chas eric lot of companies talk about that inventory levels a little cleaner. that that was a big thing with nike's report still a lot of economic difficulties in china. china is!■■■going to come back source of demand all of that is going to help earnings coming in better than feared.fáñ

and you, i think it is very interesting to watch the price 1■ yesterday that was about as bad as the company can report. and the stock is still up from degree of negativity in the market now, the stock like that could rally despite what they >> i'll just play devil's advocate for you there are a lot of head winds companies arezv■l■ facing next as well, including5■■■higher financing costs from higher interestp■■■rates and potential loss of demand,tp)t■tq(■p&ly in inflation shock, the market turmoil, weigh on the u.s. consumer which a lot of people think outweighs the tailwind from china or supply chain i think you are going to sigh lot of head winds on the demand front. i think fedex is5■■■going to beh template for a lot of companies coming up, revenue fell short, they talk about softening

demand, but they're able to÷ñ offset it by really aggressive cost cutting i think that's maybe not to the degree that fedex is forcede1 to cut costs,f■ but that's a simil narrative from a lot of companies this coming earnings season, acknowledging the revenue head winds and offsetting it with various other levers, the ones i just by no means will it be a perfect evenings season at all. >> but certainly caught our attention. you expect 4100 to be the ceiling onu■■■the s&p, which is higher from here we have to leave it there. thank you for joining happy holidays to all. let's show you where we stand a minute here into the close dowjf higher, not too far from e highs of the day tentative at moments there we started the day weaker andu.■ then climbed the dow is the only one to be higher for the week as xd■e4l■tc s&p 500 is up a little more than half a percent energy, all the top performing

sectors are oil and gas exploration, refining, but you also have some strength in a lot also have some strength in a lot of tr■hq) sectors todayu■■■as well not a bad day for utilities. up a percent for consumer discretionary, which is higher5a■ ñr■ow communication services up a percent as well. a lot of these stocks making comebacks after a rough week charter communications leading that group, up u10% for the week what's not working today information technology is at the bottom of the pack it is going positiqo■■here into the close. nasdaq5■■■closing up wm+■■2% both the s&p and nasdaq are lower on the week for the third week in a row. that does it for me on "closing bell."q■ merry christmas, happy hanukkah. merry christmas, happy hanukkah. wesiváá you heard the bell, but we are nine of the new york stock exchange in a few moments, you'll hear from one of the bigges