place it was created or do you buy -- i don't know, it's not a knockoff to say. but you can certainly get it somewhere else >> i learned a lot about the tour de france this summer a bonus highlight. diana olick. that does it for "the exchange" everybody. "power lunch" begins right now and happy new year's eve eve and welcome to power lunch everybody. i am brian sullivan in for tyler. maybe you're sipping a mimosa or whatever here's what's ahead from the fed to the merging markets to maybe a generational opportunity in fixed income we have got your ultimate 2023 playbook plus youtube gets in on the nfl. apple gets into soccer and an nba team sells for a new record by the way, our exclusive reveal of the best cities in america for the stock market this year and the worst. can you guess? it's the big power city index reveal, and it is ahead.

w we'll get to that. but let's get a check on the markets. kelly evans, what are you doing here >> let's do it we're getting ready for new year's eve eve i have a lot of bad news to run through. the dow is down 300 points, s&p down 1%, highest number 1% drops in december, nasdaq down 1.1%. and s&p will post a 20% drop for the whole year, the worst year since 2008 for all the major averages, snapping a three-year win streak the dow, by the way, off less than 10% the nasdaq down by 33% energy, the outperformer, the only happy thing we can talk about, up 58%, this year on pace for its best year ever communication services, which is boring but has exciting names, alphabet, meta, netflix, it's the worst of the group, down and breaking the win streak. just a couple hours left in the trading year, and we have tried to work hard this year to get you prepared for next year

now it's time to kick it up a notch with the ultimate power playbook, what to expect from the year ahead we've got steve liesman on the fed, seema mody tracking emerging markets, and kristina partsinevelos taking a look at generational fixed income. let's start with steve and the federal reserve. steve? >> brian, thanks the fed is going to be hiking and holding next year while it cuts its balance sheet deeply. the question of how much rates eventually rise, a matter of strong debate. the only certainty is the fed is going to be a source of ongoing volatility for the stocks and bonds market in 2023 the market is based at 5%. they're priced in at easing over the year towards 4.6 there's a 60% probability of big hikes. that brings the fund's race to

4.88 the market trades with a 7% chance of a cut. a 40% chance of no change. another 40% chance of a 25 point base hike. and a small probability of a 50 basis point hike that pricing reflects the broader debate on 2023 on growth, recession, and the outlook for inflation. the fed plans to reduce its balance sheet, expected to come down 1.1 trillion next year to around $7.4 trillion that should have an impact on stocks and bonds as the year goes by. kelly? >> wow steve, thank you emerging markets meanwhile set to end their worst year since '08. do investors see a path forward? >> for next year, there is growing consensus around a china rebound. citi turning more bullish, saying he does not see beijing back pedaling on reopening

plans, despite rising covid cases. jpmorgan expecting a 14% gain next year. the outperformance of china and the emerging world could hinge on the direction of the dollar -- telling cnbc earlier this month that the usd has already peaked and it should continue to weaken going into next year. a commodity linked markets like in latin america faring better than the rest of the world this year less instructive on brazil, citing the uncertainty around the new president's leadership but he is still a buyer of names like brazilian bank. he also overrates ewd on this bet that more companies will diversify their supply chain and for near shore operations to mexico and other countries like india, brian >> it's going to be crazy looking around the world with everything that is going on, particularly with energy prices. seema mody, quickly, is that the focus? is that going to be the thing? >> i think you're right.

it played a role in driving a number of markets including mexico, peru, and brazil this year that's why those markets are outperforming emerging markets in general it hinges on oil and other energy prices, whether they move higher or lower. that could play a big role >> seema, thank you very much. as a third part of the trifecta, for the last decade, bonds have been anything but sexy for most fund managers. the summer expecting a big resurgence in the year ahead kristina partsinevelos with this story. >> it's been so tough for bond investors to find value. a new -- shows overweight for the first time since 2009. why is this happening? those yields like we saw steve talk about are expected to stay high the fed has signalled no immediate pivot until inflation falls and the labor market weakens. suggesting bonds in the first half of next year, some

suggesting short duration, like the ishare short treasury bond etf on your screen citi analysts say don't miss out on the explosion of corporate bonds like ig and lqd. also seeing that on your screen. how about unis listen in. >> we still think the fundamentals are pretty solid for most the municipalities. we think the incomes are good at the state and local level still. we think there are strong fundamentals we like municipal bonds here >> bonds and etfs, track bonds may not be as exciting as crypto or big tech, but they could offer stability, as we head into an uncertain 2023. >> you know, it's -- i was going to say they're sexy. >> boring is the new sexy. >> i don't know the word bonds are sexy again yeah >> steve, you know what i'm talking about? we just got the stats in for the bond market. the biggest increase in i think the 10-year year, 13% increase

there, 10-year treasury yield closes up by the most in -- by the biggest annual increase since at least 1953. >> yeah. it was a rough year. and remember there was a moment there -- i guess it was in november -- when things were -- when the 10-year was falling and it turned around the somewhat underweighted story was the turn around in europe and the turn around in japan and i think that's a new factor for the fed. i wonder how they're going to be factoring that into their monetary policy in that they are now getting serious help on the inflation front from overseas. i think that's going to play a factor i also think, as i said earlier, that you're going to get to a place where reducing this balance sheet is going to be having a more profound effect than it's had so far so, all of that may mean the fed can do a little bit less here. maybe it should do a little bit less because of that but the question is when the fed recognizes that's the case

>> maybe we'll call it the justin timberlake market we're bringing sexy back no don't shake your head. seema smiled christina, come on you know what i'm getting at hey, 5% return with some tax benefits if you're buying direct from the treasury on your state tax. that -- 5% may be the new 25%, christina. >> exactly, which is why maybe it's best to focus on short-term duration, three months the returns are anywhere between 3% and 5%, like you p mentioned. but the point is that a lot of the bond experts i spoke to are suggesting you should stick to short duration, shorter term lengths as well, just for the first half of the year bank of america, one report, they were suggesting bonds over equities for the entire first half of the year and then pivoting to that regular 60/40 ratio we're supposed to have in our portfolio, but has seemed to fail for many over the past year >> the only fly in the ointment

here is we're all gushing over bonds, is if rates go higher we're all reminded, oh, yeah, just what they print on the yield is not exactly what you're going to pocket in returns china is a factor here as well it's not just about the fed. i'm curious to see if that reopening overseas, does that boost global gdp, does it send yields higher, and all the rest of it. >> if it's inflationary, if it sends oil prices higher, how does that impact what the fed does next. a lot of factors to be considered yielding 5% to 7%, so still getting a better rate overseas than you are in the u.s. so, that's something to consider as well. >> steve, what's the biggest thing on the liesman -- >> i want to make one point real quick, which is that these corporate bonds are interesting. emerging market debt is interesting. but you have to make a case that these bonds are mispriced relative to the market and the risk that's out there. if what kelly suggested comes true and the rates go higher,

there's going to be risk next year, i think, is a year of reckoning. it's a year of reckoning of businesses and countries that have lived and prospered at very low rates to next year they're not going to have those low rates with which to prosper. and we're going to see -- separate the women from the girls and the men from the boys when it comes to financial foundation and basics here and it's going to be an interesting year not everybody's going to make it through that gauntlet next year. >> i do worry about commercial real estate, steve, to your point. right? some of these big, giant, empty buildings in new york and san francisco. there's a lot of debt that was issued to pay for these buildings, which are now sitting empty. >> yeah. to that, may i just chime in for that that's why the prediction for a lot of default rates are expected to double i think moodies on wednesday, i was reporting on that. they are thinking it's going to go -- around the globe >> and another point, everyone

salivating over bond yields, maybe we don't have to worry about treasuries this year but a lot of other places, tread carefully. thank you all very much today. let's stick with the question our next guest says bonds should be part of your portfolio. david spee ka is president of guide stone capital management all right, david, make your pitch. >> let's think about it. for 30 years we were told don't fight the fed. that meant the fed was lowering interest rates, flooding the market with equities now, the fed is raising interest rates, they're draining liquidity it oof the market. why are we fighting the fed? let's go to the part of the market the fed is favoring today, short-term, high-quality bonds. you can get 4% money market, 4.5% to 5% in high quality, short duration bonds we think that's an excellent place to be, emily when you consider the market has a 10% to 15% down side from here. >> wow

let's go back to -- it sounds kind of easy to say. high quality, short term corporate bonds. this is not something somebody sitting at home that could be in and out of etfs. this is not as easy to execute >> no. i think that the average investor should be buying bond funds. there's lots and lots of really good quality bond funds out there. we can get the yield you'll benefit when rates eventually start to fall, which will happen once we go into recession. however, this higher for longer posture of the fed could keep rates elevated for a while what steve liesman said made a lot of sense this higher interest rate environment is going to have a dramatic impact on sovereigns, corporates, equities across the world. if i can sit in high quality bond fund earning 5% while the rest of the financial markets continue to suffer volatility, that's a pretty good place to be >> let's talk about some stock picks and some opportunity heading into the new year. one of the names you like is

striker. not ted striker, but striker, the medical device company >> yeah, the companies that we like, brian, are companies that have good earnings visibility and have somewhat of a recession-proof business model stryker is a good example of that, trading at a rich valuation. right now you're going to pay a premium for safety stryker produces reconstructed joint and spine products great for the aging population in the world and the fact that people are needing more and more of these sorts of treatments a great place to be, a consistent double digit environment. >> humana as well, these were a standout aswell. does that continue is that a safe place to be >> you call them health care but let's think about this these aren't companies that have exposure to dampening drug prices or regulations on drug prices humana is a very, very high quality insurer. they have the opportunity in 2023 to raise their premiums

while keeping costs down they're one of the leaders in medicare advantage, and again, a very consistent double digit earnings grower. when earnings are scarce, investors pay up for earnings visibility >> play the justin timberlake music because we're bringing boring back. health care, bonds >> amen. >> justin timberlake market. >> coin it >> we appreciate it. happy new year coming up, china and macao reopen their doors to millions of chinese gamblers, is 2023 the year to place a bet on the casino stocks? plus power city indexes are back our big reveal the top three cities in america for the stock market and the mayor of that power city will join us. by the way, here's maybe a hint, as we head to break. a look at the s&p and winners and losers notice a trend, occidental, he is, marathon, exxon. and your losers for the year,

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all right. welcome back it is overall lousy year for the stock market you're probably wondering what american cities did the best and the worst in the stock market. we know through what's called our power city indexes

we haven't done them in a while so here's a quick recap. we built stock indexes with the 11 or 12 biggest companies across 37 different cities and metro areas. chicago, new york, l.a., houston, philly, et cetera but also places like silicon valley and san francisco they're close, but they're distinct areas for business. we equal weight all 11 or 12 stocks and follow them and average them up for the year quick two notes before anybody gets jumpy, number one, some companies may be headquartered outside the city but still in the metro area like downer's grove versus chicago we get it, those are in chicago. these are made for fund, a little friendly competition. they're not actually investible. but you never know let's go this year, obviously, a really bizarre year for the markets and the power city indexes as well only two cities actually had a positive year, and one just barely

we're going to walk through through the top three cities for the stock market this year but before we do that, we want to start the year with the razz zi of the year, if you will, the worst city for the stock market, the city we talked a lot about yesterday for all the wrong reasons. and the whomp whomp award goes to san francisco all 12 of its stocks and its pci, they fell look at that the average return was a decline of 54% every stock dropped. huge drops in octa, twilio, door dash, et cetera. by the way, this is only san francisco. silicon valley is a separate index. and they actually came in the second worst sorry san fran enough bad news. now to the good news the top cities for the stock market this year coming in at number three, the capital of car racing, indianapolis power city index posted a loss of just over 6%. but even with a loss of 6%, that

made it the third best performer. eli lilly had a big year followed by calumet special products and alison transmissions. the second best city for the stock market this year, my mom's hometown, gateway to the west, st. louis. double digit gains by reinsurance group of america, and public holdings. look at that reinsurance group, st. louis squeaking out a 0.2% gain, but a gain nonetheless you go, st. louis. and now it's time for the big winner and this should not be hard. houston. kelly, present it. come on. >> show them the hat, everybody. houston gets the draft hat coming down. that's right i thought brian rigged this so he could talk to tillman about it but they've done that all on their own merits >> there we go houston is the top city -- this wasn't hard. >> no. it was obvious, guys >> they're blocking the returns here >> all right

>> we're both tall and -- >> back to you >> no, no, no. look at this average gain of 12%. almost every stock in houston was up, a big energy story, huge gains in occidental. had a couple losses. crown castle, what are you doing? down 34% lionel basil down 10%. but overall, houston let's bring in the mayor of houston, sylvester turner, who we can also see is applauding. mayor turner, congrats you know, i'm frequently in your spine city for all the right reasons. congratulations. but on a serious note, i mean, listen, it's an uncertain economy. this is not a matter for the economy. how do you see houston doing right now? >> well, you know, i'm very proud of where this city is. but i'm even prouder of where the city is going. we have diversified our economy over the last 20 years and quite frankly, you all know,

we are known as the energy capital of the world now we are focused on leading an energy transition. so, that area is really growing. but at the same time, when it comes to life sciences, health care, you all have been talking about it in your program, the texas medical center, the largest in the world, right here in the city of houston they're looking at expanding by 20% to 25% and the focus is now not just on medical services, but entering into that commercial sector as well i'm very excited about that. the port, we have the largest port in the united states in terms of tonnage and in almost every category, the port of houston has been exceeding previous expectations. so, proud of what's happening on that front so, a lot of good things more fortune 500 companies are moving into the city of houston,

nrg, axion, hue let packard are all here growing in leaps and bounds. axion, aeronautics, they're building, creating jobs. so, when you look at jobs, capital, all those things are looking good in the city >> mayor turner, i have to imagine that a lot of people think this is a difficult award, right? fossil fuels are supposed to be going away i think the energy crisis year has reminded us how grateful we are for the industry you have to think about long term what happens if people start to push this stuff to the sidelines. >> and we are. we put forth our resilient houston plan and our climate action plan. but we're not demonizing our energy sector. we're working in collaboration with them. so, the focus right now is to build clean tech, climate tech

companies in the city working with green town labs, that has expanded to houston from the east coast and they have exceeded their expectations on the construction of these companies we are focusing on clean hydrogen we are focusing on carbon capture utilization and storage, thermal energy, all working in collaboration with the energy sector >> mayor, let me just ask you one more question. you were talking about a lot of the sociali issues cities like san francisco face, and i'm curious what you are trying to do to make sure -- again, i haven't been to houston. brian can speak more to this >> you've what you've never been to houston mayor turner, we've got to remedy this. >> i've been to dallas i've been to san antonio i was going to say quality of life issues. in new york, we're dealing with the seasons. quality of life issues, is there a clear plan for houston -- when

your fortunes turn the other way, much like what happened in tech in san francisco, how do you keep the city safe and resilient for everybody. >> even in terms of public safety, our numbers, in terms of crime, in almost every violent crime category is down in comparison to last year. when you talk about homelessness in the city of houston, i know there's a lot of conversation about the east coast and west coast. but the city of houston is leading the way nationally on the reduction of homelessness in our city we have less than 3,000 people who are homeless, not just in houston but in the region. and we're working on reducing that even more when it comes to green space, our focus is on parks and green space, quality of life so, there's a -- we are laser focused and not just focusing on the energy and life science but on the things that also matter to people. the arts you know, that's the soul of our

city >> first off, mayor, that's why we've got to get kelly -- next time we're taking vacation, we're taking "power lunch" on the road i know a guy that owns a nice hotel and about 700 restaurants. and it's got amazing museums it's got amazing restaurants it's got a world class zoo i took my 7-year-old last year to the zoo >> corpus christi. >> yes, they have refineries but it's not as if you fly into houston -- it's new jersey, all turnpikes. no, it's not >> there's one thing i think of these days and the it's the horrible hurricane that hit and the overbuilding and the concrete knock that the city got back then. have you turned a corner back then how do you reengineer a city to make it more resilient in the city >> we are reengineering. it's not about building out. it's not about building up it's about building a city

that's highly resilient. we were built on a bayou city back in 1836 so, we were built on the bayou city but now, it's how do we live with water and how do we do it in such a way that we don't sacrifice the quality of life of people that live in our city, businesses that are doing business in our city, and how do we continue to attract folk? when you look at what's happening, that's why the action plan is coming into existence. >> very quickly before you go, on a business perspective, in a given month, roughly -- not holding you to it, but roughly how many ceos do you hear from who say they might like to move from somewhere else to houston >> i hear from them on a regular basis. and i'm on conference call -- microsoft calls all the time and we have been very successful in encouraging companies to come to the city to change, like nrg,

hue let packer >> your nrg is a little sore spot they're stealing them from central new jersey where i live. live in new jersey, coming to houston. they're naming half the things there anyway mayor sylvestor turner, congratulations, top city for the stock market going to be a happy new year for you. >> happy new year >> thank you, mayor. we really, really appreciate it. do you have the online -- >> houston has the internet? >> do you have the list online baltimore, denver -- >> i think you just gave me a homework assignment, evans i know your dad's a college professor, but come on we should rank the whole power city indexes san francisco, terrible. silicon valley, second worst baltimore, third worst under armour >> right exactly. we could guess the extremes, but it's the ones in the middle that

were interesting t. >> we used to do these all the time we've got to bring them back, right? and we've got to get you to houston. it's ridiculous. >> i've been to lots of parts of texas, just not houston. still to come, for 2023, the cards are dealt and time to inspect your hand. casinos have some good news and some bad news. recession news could burden vegas. is it time to fold and here's a look at this year's dow winners chevron, merck, travellers, and amgen. go houston well, is that california anyway, we'll be right back.

welcome back to "power lunch. here's what's happening at this hour add britain and france to the growing number of nations requiring covid testing from visitors from china. visitors must provide a negative covid test less than 48 hours

old. the world continues to await the news of 95-year-old retired pope benedict. the vatican says he is in stable condition and was able to rest comfortably overnight. in kyiv, volunteers have been preparing a new year's treat that is not meant for vegetarians. this particular batch includes 2,200 pounds of sausage and gallons of mayonnaise. they are trying to beat their production from last year. when they were able to send seven tons of the festive salad to hungry soldiers brian? >> love it volunteers, not paid, not because they're worthless. because they're priceless. >> i've never heard that, but it's a great way to put it >> and you've never been to houston. >> i was hoping you were not going to say anything about the mayonnaise >> miracle whip like it set twitter ablaze ahead on "power lunch," the game is afoot. it was a big year for the sports

world. billions spent buying teams, selling teams, and streaming rights but is the sports spree just getting started? 'lbeig bk.e will join us next. wel rhtac to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create

welcome back to "power lunch. one lesson we learned from the financial crisis was that sports valuations rarely fall, even in the worst of economic times. 2023 could put that to the test. a tech giant has spent billions to get into the sports business. we had an nba team sold for a record $4 billion. a sports licensing company, fan attics can it keep going or will this time be different. george, it is great to see you and do you think the industry can hold up this timearound as well >> great to see you, kelly and happy new year absolutely, sports for 30 years has grown a double digit gainer. so, it has been a very resilient class. i feel like the phoenix suns had a $4 billion valuation the denver broncos, crazy as it

sounds, probably have 4.65 was a steal. >> tono, but it's true. in the uk we saw things wobble a little bit like in 2018. but now that we're reaching a point of max saturation and we're starting to see different big tech devices, streaming platforms, the audiences aren't going to be what they once were. i don't know do you think that these valuations will be justified if legacy cable goes away like alex sherman and sources have been reporting in five to seven year's time, could we see the value of these sports rights start to fall? and what would that mean for these big acquisitions >> i don't think so. one, you have a scarcity there's only a limited number of premium brands and two, the idea is going to unlock a whole new category of value. and sports is still the only thing that engage big audiences

and engage in a big way. i don't think there's any evidence to suggest that's going to happen. it's possible because there will be a change in the way media is consumed but we don't see any evidence of it of course you just saw the nfl, youtube, break a new record in terms of the value of those. this is a question we've had for 15 or 20 years >> i sat next to a fan, a fan of yours, charlie besser. he says hello, by the way. chicago based. >> he's a good man >> that's it he was talking to me about how great pickle ball is i asked that for a reason. it wasn't just random. which is a lot of sports on the ascension, george, do you see some sports on the decline where is there work to be done not everything can boom. >> yeah, you know, that's a good question i mean, obviously the major sports, baseball is probably the most challenged with 162 games

and an older demographic one of the sports on the rise is women's sports, particularly in the european women's championship, an amazing success story. i like the national women's soccer league here in the united states i would say women's soccer globally is on the upside. baseball probably has the most head winds but are still strong. >> baseball. is there any fix for baseball? the purists were tell you we've got to have 162 games, otherwise all the records don't matter but at some point, do you just say, that was the old baseball the new baseball is going to be 85 games in a season and no game longer than three hours unless it goes to extra innings what's the fix >> i think you've got to look at those things, shortening the season, bringing in new elements to the games, maybe shorter games, maybe seven innings versus nine. we saw them experiment with that and it went quite well you have the pull between the

purists and the reality on the ground that young people today sitting in one place for four hours watching something is unlikely so, you have to adapt your game for the future and i'm sure those are the things -- you look at the things baseball's putting in for pace of play. they're looking at shortening the game and other innovations >> and kind of implicit in what you said about baseball makes me wonder about your view of apple. they've signed the mlb deal. they've signed the mls deal. some people trying to rush into men's soccer maybe i'm wrong. maybe that will change and pay off. are they making the right moves? should they decide, you know what, pickleball >> it's booming. >> i know it is. >> the young generation, the growth is in streaming the problem is the money is in the old media. mls was able to find a partner that checked the box financially. they doubled or tripled their

rights and they've got a partner that can take them places they couldn't otherwise go through streaming and the younger demographic. and the demographic of the mls really matches apple so, in sports, you have youtube and google coming in the nfl you have amazon entrenched in the nfl. and now apple with mls so, you're seeing new players coming in that bring a new demographic to the sports properties >> george pine, real pleasure, by the way and a shoutout we talked about your brother, with the -- one of the best centers in college football history, his brother >> dynastic family over here >> go hokies go hokies. love them. >> he's going to be back on the show every week now. >> yes, he is. >> except tyler's a cavalier >> oh, don't start some drama. >> that's a problem. all right. is macao bracing for a boom? covid restrictions in china finally lifting but there could

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welcome back kind of a mixed year for the casino sector. you've got to grapple with all

kinds of things like big restrictions in china, against just a wideopen and booming la vegas. what's going to happen next year contessa brewer is here with that contessa >> hi there, brian casino companies are getting ready for a new year with big changes. macao, the world's gaming capital, concessions have been renewed, and billions of new investment has been promised all this should be the fuel for the mother of all pandemic rebounds but the covid surge across china is reining in expectations patience is still a virtue wynn resorts, melco and mgm. what recession casinos across the united states are doing a booming business, in spite of inflation that seems to have affected other areas. boyd, bally's, and red rock are watching for cracks. third, las vegas on steroids

this has been a record setting year for profits on the trip 2023 could propel sin city to new highs, a packed convention calendar entertainment -- adele, hello. and sports, in the fall. mgm and caesars are the biggest operators on the strip gambling is expanding. chicago is getting its first casino new york city licenses will be given out. texas is seriously considering legalizing sports gambling but concerns over problem gambling pose new hurdles. 2023 will be an exciting year in gaming, you can bet on that. kelly? >> mark douglas last hour saying he thinks f-1 will be the biggest vegas event ever >> i've already booked my travel >> are you serious >> 100%. there used to be a vegas -- there was one year -- i think it was 70 -- 1978, '79.

even contessa's dog liked that segment. >> coming up new year's stock resolutions. what to buy, what to sell, and a special edition of three stock lunch. here's a look at this week's biggest losers, intel, salesforce, disney worst year for disney since 1974 we're back in a moment even if you got ppp and it only takes eight minutes to qualify. i went on their website, uploaded everything, and i was blown away by what they could do. getrefunds.com has helped businesses get over a billion dollars and we can help your business too. qualify your business for a big refund in eight minutes. go to getrefunds.com to get started. powered by innovation refunds.

welcome back it is time for today's three stock lunch. let's take a look at two potential buys and one to sell investors should consider staying away from in the new year craig johnson is with us he's the chief market technician at piper sandler there he is. look at the fun three champagne bottles, not that we know whether or not they're actual champagne. let's start with rockwell automation you think it is a buy. why? >> kelly, thanks if you look at the theme happening across the world at this point in time, it is a reshoring theme. if you look at a stock like rockwell automation you can clearly see on the stock we are making a pretty nice bottoming setup in here. the stock is down 27% year-to-date but up 35% off the

lows, and i think this stock is only just starting to work as you are starting to see a move back above your 50 and 200-day moving average and potential break out to the old highs that's one i would be a buyer in here >> next up is energy name, eog resources, craig love having you on by the way. happy new year, my man what do you see in eog >> happy new year, brian i'm glad you are talking about the energy names you do a great job covering them if you look at eog it has been a consistent, steady performer in here you are back above your 200-day moving average you see from the chart you are back above nice trim line support in here. from our perspective any short-term pull back should be opportunities to buy the shares of eog >> all right there you go the final name, semiconductor stock micron been a tough one lately. what do you do >> so, kelly, i think 2023 is going to be all about talking about this market x the technology sector, and certainly if you compare the two other stocks, we have two micron in

here at this point, you can see that micron is still making a series of lower lows and lower highs and it looks like it is close to be breaking below the september lows from our perspective, i don't think the bottom is made here yet and this is a stock that i think you have to continue to reduce and, well, frankly, you have a little more time to take any tax losses at this point in time, too. >> yeah. and if you are right about that, then it doesn't make me feel that great about the rest of the market what are you thinking in terms of positionings? >> well, i think at this point in time when i look at our relative strength, where clearly technology, consumer cyclicals are both in total return declines at this point in time in our work, i would tell you that i think this is going to be a market ahead where you still have 17% to 18% upside in 2023, but it is going to be coming from not necessarily consumer and not necessarily tech but i think energy is going to do well. i think industrials are going to do well, and also financials it will be a market that's going to be ex faang, ex tech, but certainly there is good

opportunities. it is always 5 o'clock somewhere when you look at the charts. >> you mentioned a couple earlier. happy new year we appreciate it >> happy new year. >> craig johnson all ahead from artificial intelligence writing to you to transitory being the most mocked word of the year our top stories of the year, next power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities. while an earnings tool helps you plan your trades and stay on top of the market.

all right. we want to end the show, the year for this show with a look at what we thought was the story of the year minus basic. it is not the energy crisis in europe i think it is big enough it is going to continue. this year's story is inflation it is coming down, that's the good news, but still inflation has been sticky. it was proven not to be transitory i know people are talking about it coming down it is coming down a little bit, but for a lot of families food costs are out of control, how housing costs are still out of control. inflation, good luck everybody, let's hope the wage gains make up for it because once inflation is here it is hard to get rid of >> can i give a wonky spin on this my word of the year in that book would be demand-driven inflation. can we all agree it wasn't a supply chain-driven story? it was a fed stimulus, fed government, $10 trillion of

stimulus, nominal gdp, prices of everything up and then the fed turned and hit the brakes big time, and now that is the biggest story. >> don't giveaway too much we have a 6:00 p.m. show tonight, somehow we have a poll we asked on twitter -- by the way it is still up and live, check it out what is the main cause of inflation, a lot of people -- i had four options we will unveil the results coming up. a lot of people said why don't you put in corporate greed corporations have always been greedy >> yeah, that's not going to get you to 9% cpi. they will be greedy when they have the liquidity environment to take advantage of, for sure, in the same way anybody would. >> part of the reason, but perhaps mostly companies are increasing profits by shrinking sizes. by the way i went to a fast food restaurant that i will not name the chain, i got a chicken sandwich and i thought it was a joke i got a slider they must have shrunk it by -- >> you have to tell us >> i can't, because i can't prove it was smaller

>> mcdonald's? popeye's >> it was literally smaller than a silver dollar. >> what did it start with? >> i can't say >> we'll leave that alone. we all have experienced shrink flation as we call it. >> i don't know if they shrunk it or put mine in the dryer before i ate it. by the way, it tasted like that too. let's talk about my story of the year it actually wasn't demand-driven inflation. i'm calling it the chat gpt phenomenon you know about chatgpt we are sick of hearing about it, but this came on the scene in such a quiet way just the last couple of months we had the image ai generators earlier this year. now you have text generators that are so easy to use. we have people saying we shouldn't have released these into the wild because they're going to pollute the internet in the future if you don't know what i'm talking about, google playground, sign up for an account, it will blow your mind. you have to know this is what kids will be using to write their papers

absolutely >> quickly, a bunch of interviews goldman sachs energy conference, i have to go to miami next week, twisted my arm we have chesapeake, pioneer, all coming up next week in miami we have the 6:00 p.m. show tonight with fertitta. oh, watch out! that's the way to end. watered down >> thank you for watching "power lunch", everybody. >> "closing bell," a soggy one, starts right now ♪ ♪ it is the final trading session of 2022, and a pretty fitting end as it happens. stocks close out a rough year with more losses this is the make-or-break hour for your money welcome to marvin gomez. i'm mike santoli in for sara eisen. here is where things stand in the market s&p down a little over 1% at the moment the dow slightly outperforming nasdaq small caps still pressured to the downside, underperforming on the day. the ten-year note yield is higher it could have something to do with equities being on their