[ music stops ] [ beeping ] cars built with safety in mind, even for those guys. the volkswagen atlas with standard front assist. ♪ ♪ hi, everybody, welcome to "power lunch." i'm tyler mathisen glad you could be with us. coming up, the fed telling us about economic activity across the country. and more evidence in the recession versus soft landing. >> plus, a couple of positive signs. mortgage numbers are up, builder permits are rising, too. is this signs that the housing slowdown may not be as bad as feared but first, a check on the markets. as you can see, we are in the red across the board the dow off by 1.25% the s&p 500 down a percent

the nasdaq has fallen by 0.8%. and the russell 2000 is about the same >> worst performer, consumer staples, general mills, these stocks that might be expected to outperform during a recession. so maybe at least for today, the markets may be in the soft landing camp we're about to talk more about that in a moment so how about the big names at the economic forum in davos? where do they stand on the economy? let's listen >> i think the sentiment is softening a little bit, and the view that the chance of a softer landing, both in the u.s. and europe, is increasing. >> most people are generally over the near term or midterm and long-term are very optimistic hopefully it turns out to be davos. if everybody is talking about a recession, it won't be as bad because we will be wrong >> consumer spend remains strong we obviously haven't announced our results, but generally i

would say across the world, the consumer stays strong, and we're a consumer company >> let's talk a little more about the economy and the world. while so much attention has been focused on the fed, the deficit is the big concern, as the federal government is expected to hit its borrowing limit tomorrow it can limp along for a couple months using mirrors and string. dan, as always, great to see you. my notes, you say that the markets may well be winning for now the sort of soft landing battle but that there is a larger war over the horizon, which is very much in doubt. what is that war, and why is it so critical to our future? >> well, i'll go to the bottom line first, thank you i think it's critical because the bottom line, i believe, is

higher interest rates for longer than anybody thinks, and that is going to be the big battle that is facing and going to be facing the economy through what's happening right now. for the last 15 years, markets have been completely preoccupied with the fed and interest rates relative to inflation and deflation. it's already eight months ago that we talked on your program about the likelihood tha inflationary pressures in the economy were event driven, and were going to work themselves out of the private sector, which i believe they substantially have and the market has absorbed higher interest rates without stalling completely into a recession. but that's really largely a function of the fact that there's been enormous amounts of liquidity injected into the

system by the combination of monetary and fiscal policy, specifically crossing the threshold during the pandemic into modern monetary policy, which was money printing directed by the treasury, and checks sent directly to consumers. and so that money is still coursing through the economy, but the fed has a serious problem. >> dan, let me interrupt you we just now know that the fed has released its beige book. let's get to steve weeseman for that breaking news steve? >> apologies to my old friend there, dan let me tell you what the beige book said. economic activity was unchanged since the last report. i guess that means flat in most dictionaries six saw no change or slight declines one district cited a significant decline in economic activity on the outlook, little growth

was expected in the months ahead. consumer spending was up slightly some retailers said high inflation sapped consumer spending or purchasing powers. auto sales were flat we saw that today in the retail sales report some say that increased inventories on the lost boosted sales. there were moderate to robust gains in tourism manufacturing declined modestly. we saw some ugly manufacturing numbers this morning supply chain disruptions were said to be easing, but housing continued to weaken. on the employment front, it continues to grow at a moderate pace some districts noted an increase in labor availability. however, they hesitated to layoff workers even as demand slowed which could be a bad sign. they say employers were reducing

head count through attrition, not firings. the pace of increase was said to have slowed. retailers noted difficulty, though, in passing on price increases. some retailers offered bigger discounts. future increases in inflation were expected to moderate this year and that, tyler, is your beige book for the six weeks leading up to january. >> steve, stick around i'm so happy that you both know each other and you are both deeply steeped in eastern europe >> for many years. >> i would love to get there, i'm not sure we will in this conversation but dan, i want to come back to something i know troubles you and i was really stunned by, and that is that the total federal debt is something like $31 trillion last time i looked, it was $21 trillion, and that was just a couple of years ago.

when that debt rolls over, that is going to have to be -- you're going to have to roll it over at a higher interest rate that means that a greater percentage of federal spending than has been the case in the past, is going to be devoted to merely paying interest on the federal debt that crowds out all kinds of other things the same thing is going to happen with corporate debt and bank loans and so forth. that's dangerous >> well, of course that's dangerous. every 1% increase in the rate of interest is basically $300 billion additional burden on the debt service of the federal debt so pretty soon, if we assume that rates are going to be 4%, and i think they will be higher on average over the coming years, we will be spending over $1.25 trillion on servicing the

debt that's close to 15% of gdp, crowding out making it the largest single budgetary item, ahead of health care and defense, ahead of pensions, crowding out infrastructure and all kinds of discretionary spending >> what do you do? >> it's a serious problem, but even bigger is going to be the impact on interest rates of the coming supply and demand dynamics the size of the national debt is doubled in the last ten years to $31 trillion, as you mentioned we have $5 trillion in treasuries maturing over the next five years, and the fed needs to reduce its balance sheet to sustain its credibility from what it was, which is $9 trillion to what it is now, which is $8.5 trillion, down another $7 plus trillion where is all of the demand going to come from >> who is going to buy it?

>> in primary market maker institutions, it used to be dealers. they're now taking a lesser and lesser share in treasury options, which steve can co confirm. and the big buyers are private asset managers foreigner that is have held a third of the treasury market until now, are re-regionalizing and de-dollarizing, which means they don't need more treasuries. china buying natural resources from saudi arabia, from russia, from latin america, from africa, ultimately the petro dollar regime is in the process of unwinding, while we have a parallel economy going down in other currencies, not the dollar so you have a drying up and repositioning of buyers, and the buyers are going to be a lot more price sensitive when they look at the risk, and they will demand a higher premium.

so i think the ten-year average on the ten-year bond average has been 4.5%. i think it's going to be 5%, 6%, and then spreads on top of that will be wider. think about the impact of that, not only on the nation -- >> it's huge >> the nation's solvency and corporate solvency >> as you say, when you look at what corporations are going to have to pay to roll over their debt, it could be really, really burdensome, particularly for capital intensive companies, which i know you point out let me get steve to throw in a final thought here on what dan just talked about, and that big, massive obligation that one way or another, we, the taxpayers, and the markets will have to bear >> supply and demand, steve.

>> tyler, it's a -- well, no, it's easy in the sense that you either address it before it's a crisis or you wait till the crisis to address it i think right now, the debt is sustainable in the sense that we can pay what we have right now, but over time, it will become increasingly burdensome. and it will force the body politic to address it as they start to write those checks. if i'm not mistaken, defense is something like 5% or less of gdp, and dan is talking about a number that rises up into double digits i think that the -- one place i push back is the idea of replacing the dollar i think there is some de-dollarization, but overall, i think the dollar will remain the world's reserve currency, because there suspect really a very good alternative as of yet. perhaps that steps forward and it becomes one, but i think ultimately, there will be demand

for our debt at the right price. the question is not demand but what is the price that we have to pay to sustain that demand. >> dan, final quick word from you. >> national defense is 22% of expenditures, i'm looking at the chart right now. and debt service is approaching that relative to the dollars as the reserve currency, i agree right now. in the g7, the dollar is the strongest currency because we exported our challenging monetary policy to the rest of the g7 but pay attention to the brics and the parallel economy, because it is for real and then finally, how long can we continue to incur trillion-dollar deficits year after year as we did last year,

and we did the year before, and continue to issue treasuries to pay the interest on the deficits that we are accruing, until eventually, there is a shift in people's perception of the credit worthiness of the nation, which is not helped by these brinkmanship games going on in congress over the death ceiling. remember what happened in august of 2011 -- >> yes, sir, i do. >> when it -- >> i know we have to go, tyler but there is not a question of our financial ability to pay, it's a political issue that's why the s&p downgraded the united states credit rating. the u.s. has excellent debt-to-coverage ratio it's a very wealthy nation it's just a political question >> we have to leave it there, dan, great to see you, my friend >> great to see you both

>> really fun. appreciate it, guys. thank you. coming up on "power lunch," much more on the markets stocks are sinking throughout the day. you have the dow down now more than 400 points. honeywell, mcdonald's, united health, ibm, are accounting for nearly half of those losses. apple, one of the better performers today down but just slightly it still has issues, though. more on apple coming up. lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

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apple shares falling 20% in the past year, as supply chain issues and covid cases in china weighed on iphone orders just when china is reopening, the global economy is bracing for a recession. joining me now is the senior research analyst at d.a. davidson, and steve koback joins us, as well. steve, there's news coming out about a headset that might get delayed. why does it matter >> i want to be clear, there is supposed to be a headset coming out this year still. that appears to beon track >> a headset, not ear buds >> thing you wear on the face and go into virtual reality. so there are a couple versions down the road that have been postponed. apple declined to comment, but what they are saying is that the ultimate goal, tyler, is to get glasses that look like yours or

mine, instead of these clunky headsets the headset is still coming likely this year in fact, if i had to guess based on apple's routine, probably in march. and then they will it rate on that a cheaper version of that headset is coming the year after. but it's the third version that appears to be delayed. >> let's talk about what is coming down the pike here for apple. if you have the beige book coming out and suggesting that consumer spending is up just slightly, personal experience would tell me that consumers will choose to spend on apple devices or splurge on things like a new headset, if that's the thing they have been saving for. tell me how you think we're going into 2023 for apple, with china reopening, and where the consumer is. >> so china eopening is a huge short term boost for apple, and consistent with our view that the sales that were lost in

december quarter will be captured in the march quarter, and the china zero policy in the second quarter, and they weren't lost entirely. so as you pointed out, contessa, the consumer's willingness to spend their discretionary income on apple products bodes well what also bodes well is the wireless carriers are subsidizing the next generation iphones to support their 5g network. so apple has proven it can do well, even in a challenging macro economic environment >> where are the head winds for anal >> china is still a head wind. so the good news is that you're going to see a rebound in consumer spending, and the supply chain situation has improved but we anticipate over the next couple of years, apple will address its overdependance on china. the other good news is that they had a projection of a 10 percentage point negative impact from a strong dollar in the

december quarter you're starting to see the dollar give back some gains, so that might work in its favor so there is a challenging macro environment. consumers will spend a great portion of income on apple products, especially iphone. >> have either of you, i'll start with you, steve, seen really compelling evidence that apple is ready to reduce its dependance on china? >> a little bit, in small but significant ways for example, they started producing iphones in india small, it's not going to take away their dependance on china >> theydon't want to tick off china by saying we're moving our production here. >> of course not and also, their silence spoke volumes about the protests that we saw they said they were monitoring it, but we heard nothing from apple about, you know, the

ramifications of this protest, and flrankly, the horrifying videos we saw. vietnam, malaysia, all hot spots where they may turn to, to produce more pruoducts a lot of that is happening, but it's mostly accessories. >> we had a segment yesterday on value driven leadership. tim cook is mentioned one of the people that leads with the values that is not a case where he led with values. tom, same question do you see real serious at-scale attempts by apple to not rid itself of its dependance on china but reduce its dependance on china >> yes definitely this is going to take multiple years. the indication is more reliance on india, and to a greater extent, asia and things of that nature

so right now, it's more of a need than anything that's put in place. but i do expect that this is tim cook's forte, pun intended and i do think he will address this over the next couple of years and they will be less dependance on china than they are today, which is the biggest risk to the stock. >> tom, thank you very much. steve, thank you both very much. up next, more on the markets. they move lower as we look at the dow, approaching session lows

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housing data out today, including a big surge inhousin demand diana joins us where is the demand coming from? >> so it's coming from people who want to refi and people who want to buy a house. mortgage an cautions last week jumped 28% week-to-week. they're still way down, but after the holidays, people came back and saw that mortgage rates were significantly lower and decided those who could benefit from a refi jumped in and we're seeing more demand from potential home buyers. and we got news from the national association of home builders on sentiment. it went up four points and everyone expectedit to go down so there is more buyer traffic, feeling better about current and future sales, although, it is still in negative territory. >> i'm sorry to interrupt, but where do mortgage rates on the 30-year conventional fix stand

right now compared with the peak a few months ago >> okay. so we are now at 6.04%, according to mortgage news daily. now, we were at a high at the end of october at 7.37%. today is the lowest in september. but we have come down significantly off that high. what that means is you're seeing significant savings on the monthly payment. we all know that people don't buy a home on the price, but the monthly payment. >> we are still, however, roughly double where we were a year, 15 months ago? >> yeah, we were about 3.5% a year ago so you're still higher on the payment. so you're still seeing the slowdown because there's just not much out there to buy. total inventory is higher, but new listings are way down. the reason is because everything is sitting on the market longer, and the buildings are not ramping up enough. but we got the sentiment number as positive today.

t >> if you have mortgage holders who are starting to surrender to what might be the rates for some time to come, maybe you're also going to have home sellers surrendering to a new normal, which is you don't get sky high prices any more and buyers that have to pay more than they were hoping for >> sellers may see it that way, but the trouble, is if they're going the rent, great. but if they're going to buy another home, they're still feeling i'm trading 2.75% for a 6.5% rate. and they're not really wanting to do that so it will have to be a real reason that they need to move, or they might want to wait until prices come down we're seeing prices down 2.5% to 3% since july, but still up year over year. so prices will have to fall more for potential sellers to say

okay, maybe i'm buying at a lower price, as wellto offset that higher rate >> diana, thank you. let's get to some cnbc news update >> the u.s. supreme court has turned away a challenge to new york's new gun safety laws the justices denied a request by firearm dealers who said the restrictions hurt their businesses their appeal of a lower court decision against them will proceed. in england, thousands of nurses are holding a two-day strike for a 19% pay hike, and the hiring of more nurses. the government says it can't afford a big raise, and other services would suffer. the nurse's union has scheduled another, even larger two-day walkout in three weeks in case there is no progress towards a deal and single use coffee pots may not be as bad for the environment as many people think. canadian researchers think that

pods can reduce emissions by limiting wasted coffee, water and energy to prepare it but "the washington post" warns the savings can be lost if it encourages consumers to drink more coffee each day personally, i can't drink after 1:00 in the afternoon or i won't be sleeping at night >> wow i'm with you there >> i guess all of us old people are in it together >> we're helping the environment. >> thank you, bertha ahead on "power lunch," the new year has a lot for casinos, online betting, and vegas on fire laying out some top picks. plus, everything musk go twitter auctioning off everything from espresso machines to kegerators apparently, big fire sale in the san francisco office

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let's get you caught up on stocks and bonds and commodities. stocks sinking throughout the session here, bob.

>> some of this is easy to explain, some of it hard banks, the levels of reserves for potential losses, a little higher than expected so that's weighing on the banks today. a little harder to explain is what is going on in industrials. they're getting clobbered. the economic data we're getting is threatening the soft landing thesis so retail sales, industrial production, weaker than expected these stocks have been rallying on the soft landing thesis if we get a harder landing, maybe they're too high priced so we're seeing some of the industrials to the downside. consumer staples, you might say why? they're the staples, but if the consumer is pulling back on the retail sales numbers, these stocks have done very, very well last year. they're pulling back a little harder to explain is why some of the retailers are up today. some of these names that are out there, the department store names like kohl's have been on a

tear the simplest way to explain it, they are dirt cheap and sold off very bigs room to drop. contessa, back to you. >> bob, thank you for that now for a check on bonds, the yield on the ten-year note falling sharply, trading below 3.4% lowest level since september the drop coming on this morning's ppi numbers, which showed prices falling more than expected wholesale prices down 0.5% that's compared with an estimate of 0.1%. adding to the recent signs of the inflation. >> oil is higher, olding above $80 a barrel let's get more on that tell us how oil is closing >> it just dipped into the red ahead of the close, after earlier topping $82. but it is coming off eight straight days of gains this is china's demand driving the story.

so that is what is driving the price of oil but we did get a differing view how the market looks from opec and the international energy agency opec thinks that the market is more or less at equalilibrium but we could see a bigger supply in the market. but in the back half of the year, it will be a substantial deficit as demand gallops ahead. >> i'm also noticing we're seeing metals on the move. >> so copper and aluminum hit their highest since june now, interestingly, goldman sachs out with a big call on aluminum they raised their target now aluminum averaging $3 t,125

per ton, and those prices are up this year. >> thank you for that. stocks continue to give back gains. the dow down more than 400 points right now for more on what's moving the market, let's bring in michael, founder and ceo with destination wealth management. good to have you with us why is the market down so much today? >> it's hard to say. probably what's happening is there's concern that we're going to have a deeper recession than many are -- were starting to predict the soft landing scenario i think soft landing is overly optimistic i think we'll be in for a mild recession. i don't think it's going to be a deep recession but soft landing is a dicey bed. if you look at the fed's history, they've only been able to engineer a soft landing a

couple of times. >> the ppi number was better than expected. some of the other inflation measures have been better than expected have we, if not broken the back of inflation for this cycle, at least sort of leveled off the curve? >> oh, yeah, for sure. you're already starting to see, for example, used car prices are going down a lot so i think you are starting to see some inflation mitigation. i think that's a positive. i think that's why you were just mentioning on the ten-year treasury, where it's trading the yield has just dropped tremendously, even as the federal reserve has been raising rates. so i think there is some optimism that inflation is getting under check at this point. i think that certainly china reopening is going to be helpful, as well

>> tell me, given the big economic picture that you're painting for us, the names that you like here, your ideas are pretty well known names. you have apple, amazon, costco, johnson & johnson, airbus and alphabet >> well, first of all, my contention is that big tech is obviously having some problems right now. cnbc.com, they're talking tesla laying off 60,000 people but i think big tech is going to be okay. once speculative tech gets killed, there's nowhere else to go some of the other names, the costco name, for example, is a name that will likely thrive when consumers haveless money. and when economic growth drops, people tend to be more restrained in their spending and so i think that you want to make sure that you have a broad

selection of companies, pharmaceuticals, the johnson & johnson kind of names, airbus capitalizing on rebound and travel that's what makes sense. i would be very hesitant to move towards speculative names. that is going to dry up because interest rates have gone up. >> thanks for your advice, michael. appreciate it. is online gaming the future of casinos especially as vegas is seeing this massive rebound and macau could see a battle for recovery "power lunch" will be right back this tiny payment thing- is a giant pain! hi ladies! alex from u.s. bank! can she help? how about a comprehensive point of sale system... that can track inventory, manage schedules- and customize orders? that's what u.s. bank business essentials is for. (oven explosion) what about a new oven, can u.s. bank help us there? we can serve loans in as fast as 12 minutes. that would be a big help! huge!

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welcome back to "power lunch. casino stocks facing uncertainty in 2023 on concerns that an economic slowdown could hurt leisure spending my next guest sees at least 25% upside for some of the top names in the industry. so should you bet on these stocks let's bring in chad, senior analyst. great to see you today i'm just going to go through the top picks. mgm, draft kings, churchill downs and the largest property owner on the las vegas strip, one of the gaming reitz.

talk about online gaming we're heading towards the super bowl, which will be the biggest day of sports betting. ohio has just come online. what could move the needle for these gaming stocks? >> thanks for having me, contessa one of the things we're trying to highlight here related to draft kings, a name that suffered in the past two years after a huge run after an ipo was -- we think we'll see a few things in the market one, this movement towards the single game parlays. so that comes from the technology we're seeing with draft kings, fanduel and some of the peers, so when you log on, you're more interested what's happening during the game. and there are a number of these that will be driven by the technology we think draft kings is a leader in that. so the percentage that you the consumer should lose to a company like draft kings the second thing is a reduction in ex-personal marketing

this is something that was extremely negative for companies like draft kings in 2022, when they lost over $800 million. we think over time, this comes down >> and the ceo, jason roberts, said that he wants to dial back the marketing promotional spends in the states where sports betting is more mature, like new jersey >> exactly this has been a difficult sector to analyze, because what they have said is, it's year three. when you start to see the stickiness from the early cohorts, a reduction in the promotions, and the gross product per player we're now in year three. this is the time where the rubber meets the road, and this is the time where we are going to see upside prizes forest mates from companies like draft kings and its peers. >> one of the challenges for draft kings is the competitors are starting to throw profitable quarters, leaving them looking like they're catching up by the way, the stock is down

almost 37% over the last 12 months so just over the last month, up 23%, so it is seeing growth. let's talk about vegas, the packed calendar there, would impact ceasar's and mgm, the two biggest operators on the strip >> related to vegas, one thing the market is missing is that midweek occupancy. it's 500 basis points off of where it was prepandemic you pointed out what will drive that you saw really good attendance with consumer electronics show in january we'll continue to see that throughout the year. and you end with f1 in november where hotel room rates were three times what they normally would be in that week. and throughout the rest of the year, you have really good events in marketing that will kind of help where operators like mgm can raise reitz >> there's a lot of skeptics

that point out with covid i infections swirling around in china, you will not get that massive return in macau that you see in las vegas >> we think there will be movement just given the structure of changing the model. we wanted a little bit of exposure las vegas sands, we do have an outperform because of their market share in macau, but we don't want to put all of our eggs in the macaw basket we like online sports betting, then i halas vegas, then macaw, that order we'll be right back. at adp, we understand business today looks nothing like it did yesterday. while it's more unpredictable, its possibilities are endless. from paying your people from anywhere to supporting your talent everywhere,

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folks, time now for three-stock lunch. we're sipping on big movers of the day. moderna higher, on the success of an rsv vaccine in adults. charles schwab lower kraft heinz getting dragged down, with other staples, on pace for its worst day since july, hold the ketchup

here to trade them all, zsidney garcia let's start with moderna good news on the rsv vaccine front. but you're a little dour on the stock? >> correct yes. we had some really great news coming out there there's some great news with the data on the rsv vaccine. this is on top of them working with merck you have some things they're working with on with cancer. they can use this rmna with for other purposes, other than just covid vaccine. that's going to be great for them in the long run this is a sell because this is priced into the stock. all that good news, you're seeing in there. it's trading about 40-times nex year's earnings. i would not be a buyer that's priced in >> charles schwab, missed earnings with revenue. you think it's a buy, why? >> i'm going opposite with all of these despite the fact he had a miss

with earnings and revenue, the numbers weren't as bad as you see. they were just below what you saw last quarter that's a record for them that shows how positive they are affected by positive interest rates. if we're in a higher rate environment, we will be in 2023, schwab will be a beneficiary of that for that reason, this is great play buy this on the dip. >> and our last one would be kraft heinz. >> yes kraft heinz, i see as two stories. i have a hold because short-term it has some issues it will be facing we just had a year of price increases. you'll see that continue having an effect on kraft and the competitors. you have to see promotions there. longer-term, they have put themselves in a good position for longer-term growth the leverage ratios have come down they can put more money into their business what i like is they're focusing on things like emerging markets, which is going to be something not just for next year but the next several years and seeing them invest money and

focus is going to be a great beneficiary for the long run short-term, i have hesitations long term, i have a hold for that reason. >> courtney, thank you very much always great to see you. >> thanks for having me, as always > ill come, other key stories we're watching "power lunch" will be back in two. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade ♪♪♪ there's no going back.

[music - cover of blondie's “dreaming”] ♪♪♪ [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪ ♪ dreaming is free. ♪ accenture, let there be change. president biden has declared three california counties federal disasters. the state has declared 41 of 58 counties disasters a lot of homeowners here hard-hit by massive storms and

flooding now, they should probably brace for another blow flooding is not covered by standard homeowners policies and over the last five years, 35% fewer californians got policies through the national flood insurance program or nfip. now, fewer than 2% of homeowners in california have flood insurance through the federal government or private insurers last year was one of the worst years for property insurance you had hurricane ian. you had the winter storms, california storms to kick off 2023 and travelers just yesterday preannounced catastrophe losses for the last quarter because of the winter storms that nearly doubled the consensus estimate the shares dropped on ithat new, 4%, 5% where might there be opportunity? reinsurance. that's jargon for raising rates. they have real pricing pour. swiss re, hanover, re,

renaissance re they are looking to limit risk or charge adequately for it. another place you might see investment opportunity, the largest private flood insurer in the nation neptune flood i just got off the phone with the ceo. neptune saw a 600% spike in flood insurance sales in california over the last couple weeks because the flooding is now top of mind. it has replaced drought, as being the preeminent storyline and when that happens, people rush out and are, like, i really need to protect my home. >> i am confused, if your car is damaged in a flood, it's under your car policy. >> it's comprehensive. >> you get coverage there. >> if your house is taken by flooding, unless you have flood insurance. but if the roof blows off or a tree comes through the roof and you have water damage -- >> or if the pipes leak. >> you're covered, right >> that's right. one of the interesting things

about this is that the flood maps, where you might think you're in risk are wildly outdated and so, a lot of people who are getting flooded, may not have known they were even at risk for it that's why it's really important. >> maparticularly, when you've lived the last decade in a drought. and the greatest risk was wildfire >> don't get me started on the california insurance market for wildfires. twitter, auctioning off things in san francisco. coffeemakers, to fluorescent logos to industrial appliances heritage global partners tell bloomberg in a statement, that the firesale has nothing to do, nothing at all to do, with the company's financial position but the f.t., reporting the first round of interest payments on the $13 billion debt financing used by elon musk to buy twitter, those payments are due at tend of january

that's a lot of keurig coffeemakers that's a lot >> your payment is coming due, so, you have a garage sale what can i get rid of? and there's fewer employees that need to use all of that equipment. >> that's true many fewer employees down on coffee don't need as many of those things >> maybe you could have branding opportunities for that you bid for a coffeemaker and it's your twitter coffeemaker. >> yeah. i guess -- i think there's -- to me, very little cache, for anything owned by twitter. if i was in the market >> how much would you pay? >> 20 bucks. maybe. >> it will take a lot to get to $13 million. a bit of a sell-off on the market, down 455 points. that's where it's been all afternoon. if you looked at the graph, it's very close to the lows it's been hovering there the s&p 500 off about 1% nasdaq, at 11,000, 11,002.

that's the number on nasdaq. and relatively speaking, that's a stronger performer >> and the beige book reports show the activity flat consumer spending up a lot the soft landing versus recession. >> nice to have you back >> thank you >> thanks for watching "power lunch," everybody. "closing bell" starts right now. >> stocks pulling back sharply, with indexes not far from the session lows the nasdaq on track to snap a seven-day winning streak this is the make-or break hour for your money sara is in davos, switzerland. the nasdaq is still slightly outperforming. you see the ten-year pressurery note, making new lows, below 1.4%