welcome to "power lunch. with kelly, i'm tyler. glad you could join us china coming up today, reopening there, having a huge impact on the global economy will a surge in chinese demand send prices higher investors pouring mointo chinese

stocks and funds hoping to capitalize or could the reopening go wrong as covid? it remains an issue. >> tesla stock jumping today the company reports on wednesday. analysts watching the gross profit margins as they cut prices the impact it could have in the ev market. let's get a check on the markets. rallied big time today the dow up 338 points, near session highs. the s&p up 1.5%. the nasdaq not only up 2% today, up more than 8% so far this year chips leading the way, more on that coming up. and we begin with china at this hour and the portfolio repositionings that are taking place as investors try to get ready fror what is forecast to be the great reopening seema mody has that for us. >> that reopening story continues to fuel optimism hsbc recommending names beyond the alibabas of the world, young china, budweiser and laning, a sportswear company as consumers start to travel.

according to goldman sachs, hedge funds have been adding chinese stocks and that is reflected. both hitting new highs today, emerging markets fund managers are increasing their china exposure so far about one:30 of emerging market etfs have chinese stocks, down from the 40% peak hit in 2020 now, even with the run-up in chinese names, kevin carter, the cio of emerging markets internet etf china is trading 12 times earnings that's cheaper than the nasdaq at 22 times earnings and cheaper than the global msci and etf trading at 15 times. >> great point now, china's reopening, the question is, will it slow companies like apple from actually moving their supply chains away to try, you know, to places like india? >> that doesn't seem to be the case a prominent minister from india was quoted today saying that apple is looking to increase the market share across the country from 5% to 25%

so it's sort of creating that rat race between these two asian rivals, india and china. we will see how it plays out >> all right thanks very much. it's been three years since china experienced a fully unrestricted lunar new year celebration. now that communist party jettisoned it's zero-covid policy hundreds of millions are expected to travel as the country shuts down more than 2 billion passenger trips forecasted for the month domestic flights are running at 80% of pre-pandemic capacity our next guest says the travel boom doesn't mean that china is fully reopened or back and that 2023 could be a struggle of a year for the world's second largest economy. for more let's bring in dennis, partner at meyer uncavic and scott. welcome back is there the possibility under

the relaxed covid plans of xi jinping that this chinese nbcunnew year could be a superspreader event that could hobble the chinese economy? >> i believe it is a superspreader event. if you take a new year's, easter, hanukkah, labor day, put them all together, this is the biggest time in which the chinese get together as a family and i think you are going to see essentially between 400 and 600 million chinese go throughout the country. this looks a lot like it did in the year 2000 when covid started in wuhan so i'm really very worried about the fact that so many of these projections that you are putting up there saying china is back, everything's healthy, don't worry, because when you look at the statistics, i'm concerned. >> well, can you believe the statistics, number one, on covid. can you believe the case counts that the chinese are putting

out? they said they had no deaths, 500 deaths or 50 deaths or whatever it was, and now they are saying in the first month of the reopening or the ending of the zero-covid policy they had 60,000 can we even believe that >> well, i saw the same statistics like 59,938. but there are some independent folks out there who were saying that the number of deaths in this period was 600,000, or about ten times as much. the problem with the chinese are, is you never know whether the statistics are cent. there isn't a lot of transparency there and that's always been a problem. years ago when china, xi jinping said we want china to grow between 6% and 8% per year when you went to the provinces the end of the year they always grew 6 to 8% frankly, i don't believe what i see. usually the chinese want to put a very good gloss on this. if i could say one thing that i think is interesting.

>> sure. >> "the guardian" newspaper a couple of days ago said in an interesting article that the government in china is now supporting positive news on covid in the new year. and that they are going to suppress what are called gloomy sentiments again, i really just want to know the facts and i'm concerned about the fact that the chinese are not very transparent. >> no, we just want to know the facts. t i don't know if you caught stephen roach last hour. he has been following in china for years. he said the more concerned than it in 25 years really a following of that issue. if that's the case, is that motivating some of these sort of flip-flops on covid policy where the leadership is just sensing they really need to generate gdp growth even at the cost of this policy >> china grew last year at their

figures, at 3% i think it was less. they projected in 2022 that it was going to be 5.5% and so we're -- it's like a daisy -- it's sort of like a bill murray in "groundhog day. you keep repeating again and again. they really have to jump start the chinese economy and this is one of the ways they will do it. i don't think they seem to care how many people who are sick or will be affected. >> so let me -- let's cut to the bottom line, dennis, in terms of investability in china we began by talking about people seeing promise in some of the companies in china, the funds, the etfs are you saying, basically, that you just don't believe it, it's b.s. and you should stay away from china if i was a retail investor in del rey florida? >> tyler, when i don't see facts

that i can depend a decision on, i step back. so my answer to you is, no, i don't think i would be a big investor in china now. the earlier person right before me talked about how the growth in apple is going to go from 5 to 25% in india. that's what major companies are doing around the world they are not leaving china in droves, but they are saying am i going to make a major investment there? is this going to be my future? i think the answer is probably not. >> all right dennis, thank you very much. as always, good to see you thank you, my friend >> thank you both. >> that's two major figures telling us economy transportation secretary pete buttigieg in san francis $400 m to upgrade the landmark and make the infrastructure earthquake proof. he joins us now to discuss that and where else money from the infrastructure bill will be heading. it's great to see you. welcome. first of all, why this landmark? what is the significance as far

as our audience in particular, the investing public, is concerned here what is the message you are trying to convey >> well, the golden gate bridge is incredibly significant not just because of its conviction status and symbolic meaning, but because of the real and very important role that it plays moving people and goods around this area. not only do something like 37 million passenger vehicles go over this bridge every year, but also over 500,000 freight trucks serving key elements in our supply chains like the link to water-borne freight at the port of oakland keeping it in good shape is a matter not just of regional interest, but really of national interest now, just over three decades ago there was the loma prieta earthquake the golden gate bridge stood strong the analysis after made it clear if a comparable earthquake were to strike nearer to the heart of san francisco, this bridge would be at risk so it's going through a seismic

retrofit we are committing $400 million to help strengthen it and put it in a position to better withstand those kinds of threats. a lot of talk about resilience in our economy certainly in california, what they have been through part that have is dealing with the climate effects. part is the seismic side when we can strengthen a key part of american infrastructure, of course, that's big part of what president biden's infrastructure package is all about. >> mr. secretary, the infrastructure package clus 110 billion for roads, bridges and major projects i'm wondering, simply put, how you choose which bridges, which highways get that money. a cynic might say, well, of course they are going to put it in san francisco that's where former speaker nancy pelosi resides of course they will invest in a bridge in kentucky and ohio. that's where kevmitch mcconnell

rezblieds. how do you decide which bridges, tunnels, roadways get the money? >> well, it really is about the merits of the project. there are so many applications that come in we prioritize them based on the main reasons that our department exists and the reasons we needed this investment in the first place. number one on the list is safety and that's definitely on our mind with something strengthening this bridge against earthquakes. we are also looking at what benefits the supply chains, lead to economic strength, support jobs we are looking at investments that are fair, that contribute to equitable economic growth we are looking at climate impacts because every transportation decision in the 21st century is a climate decision whether we recognize it or not and thankfully, because we have such a big investment, you don't have to look at which states got funds from this infrastructure law and which ones didn't. every single state, i believe we are already over 3,000 bridges

some of them big conviction ones like this. some way may not know the name of if you live in a rural community that depends on that bridge and it has a load limit because it's in poor condition and a truck or a school bus or emergency vehicle can't use it, that's a huge problem we are making sure whether or not we are talking about big projects like this or smaller communities that every part of america sees the benefit frankly, every part of america has a need. >> mr. secretary, we are speaking of infrastructure it's less visible, but what happened in the skies the last couple of months has people uneasy can you give us an update? >> well, that's right. and there is several things we are looking at here. the first, of course, maintaining the safety record of our aviation system. that's one of the reasons why the faa is conservative, for example that morning when this disruption handmade the conservative step of flights until they could be 100% sure that the system was operating the way it should. this is a system that is

actually in the middle of a multiyear, multi-million dollar upgrade. as you imagine, i am interested in what we can do to speed up the completion date of that project that has been underway for many years i think that's one of many hot topics as we enter the faa reauthorization. this is the year for us to work with congress on legislation that's going to shape the next five plus years of aviation policy in this country and really welcoming the conversation with our congressional partners on how to get the right funding to the right places so we can have a robust system knowing there is an enormous amount of change and enormous amount of demand coming to the u.s. aviation sector. that's one thing we can be sure of. >> i chuckle when you say we welcome a robust discussion. we will be lucky if the government doesn't shut done in a couple of months, mr. secretary. you know, to we expect any of this to be caught up in there? it sounds like modernizing faa infrastructure should be straightforward. but this is a year in which nothing will get through without a fight and the priorities

better be pretty clear and, you know, so i don't know how many warm conversations there is going to be. >> look, this is an example of why we can't have political games affecting critical infrastructure in this country the roads, the bridges, the aviation systems don't care about republican, democrat fights going on in washington. the president has been very clear. the administration has been very clear about our priorities we have been very clear that, you know, especially as we see some of these strange threats and claims being made by congressional republicans that that can't get in the way of the day-to-day work of keeping things moving in the country we have the funding for this infrastructure bill. we are working the plan. the less drama and the more action we can have in the year and years ahead the better off this economy and this country is going to be. >> we will leave there, mr. secretary. thank you for your time. thanks for joining us. >> thank you it's a pleasure. >> transportation secretary pete buttigieg. and by the wail, you want

the golden gate bridge to be earthquake-proof yes. the index gains 2% today we will have a full list of those names you coming up. and tesla reporting results this week so much to discuss we have the price cuts will increased affordability kick ev into overdrive we'll talk about thacongp. ayitust mi u ll, where's your mask? i really tried sleeping with it, everybody. now i sleep with inspire. inspire? no mask? no hose? just sleep. learn more, and view important safety information at inspiresleep.com hello, world. or is it goodbye? you know, it seems like hope and trust are in short supply. [clap] now, as businesses we can blame and shame. or... [whistles] we can make a change. [clap] we can make work, work for our communities. create more equal opportunities. [clap] it's time for business to show its true worth.

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the nasdaq jumping another 2% today, a strong run this month frank holland for what is working. >> investors are partying like it's 1999. the nasdaq op pace for the best january performance since 1999 today it's getting fueled by megacap tech we are seeing apple, nvidia and tesla, nvidia up 31% the biggest positive impact on the tech heavy index chip stocks getting help from the thoughts that we may be on course for a pause, a pivot or a lower hikeof 25 basis points based on fed comments today. intel reporting later this week. that's also helping, those comments helping names like rivian and lucid despite the double-digit rally by rivian, shares are still in the red year to date microsoft giving a boost to the nasdaq announcing a multibillion-dollar investment in chatgpt ahead of earnings after the bell tomorrow. sigh the performance of these three companies, hyperscalers,

cloud infrastructure players, this could be an inflection point for the nasdaq we could see a rally if microsoft's cloud results beat expectations back to you. >> thank you. coming up, fast fashion becoming a slow burn to the environment. demand for cheap clothing, big business with an even bigger carbon footprint one company looking to solve that problem. plus, citadel's sweet 16 $1 billion the manager turning in a record ofitde tails on that when "power lunch" returns 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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. we have a little more than 90 minutes left in the trading days let's begin with bob at the new york stock exchange where stocks have been climbing, bob, throughout the day >> yeah, and we have a powerful rally going. growth is back you heard frank talking about the nasdaq semiconductor stocks have been a leadership group they are up 12, 13% for the month and so some of the big names got an upgrade over at barclays amd to-upside, qualcomm, seagate also an upgrade at barclays. skyworks solutions, 109, that's

the highest going back july, august or so for skyworks there. also some new highs in some of the china plays. wynn, las vegas sands, close within a tenth of a percent, ulta beauty, kla corp. then there is the oil stocks oil is at 82 it's been creeping up the last few weeks. so there is stuff that is just near a new high within a fraction of a percentage point of hitting new highs here, his, exxonmobil and some of the refiners like valero energy and marathon petroleum the big thing, the technical analysts out there, we are beginning to break a down trend in the s&p 500 what's a down trend? it's lower lows and lower highs. and that is a one-year chart you are looking at we hit the highs january 4, 2022 we are now breaking out of that. it depends who you ask whether or not we are there. essentially, around the, oh,

4025, 4050 level is the breakout and breaks that downtrend of lower lows and lower highs yes, kelly, technical analysis matters a lot, particularly when people are unsure of the macro environment and trading on fundamentals they trade more and talk more about technical analysis we will talk more about that tomorrow. >> i have come to appreciate that absolutely true. thank you. let's check the bond market right now. yields rising along with stocks today. that's kind of interesting the ten-year above 3.5% making people wonder if it will break below that number. the focus is next week's fed meeting. the key number before then is this friday. the personal consumption expenditure, spending, income, the fed's prefer inflation metric. >> alrighty. steve joins us. >> nat gas is the big mover at

6% and this follows the five straight losing weeks. so it's kind of threefold in terms of factors driving this. first is colder temperatures it comes back to the weather with nat gas then we have shorts covering their positions. there was a lot of short sellers giving the surge in temperatures at the start of january. then finally the contract does roll in a few days we see more volatility around expiration since we are in earnings season i wanted to focus on energy earnings and how the outlook looks there. the reality is that they probably peaked back in q2 earning about $62.5 billion. they came down in q3 and for q4 estimates are calling for about 48 billion so that is meaningfully lower than the prior two quarters, but if we take a step back and look longer term you can see that that is still well above where we were prior to the pandemic and now wall street is kind of thinking we will stabilize with earnings around the $45 billion mark for all of the quarters this year. so you've got to wonder is that

good, is that good enough, how will the stocks react. >> i have a small but very big question everyone is talking about their electric bills, their gas bills, their heating bills this winter. and it's ironic. we have been talking about nat gas prices at these very low levels, but everybody's bills are way high how big is the lag, do you think? is relief coming if we stay at current prices for people who are paying what i assume must be rates that were set six months ago when prices were spiking higher >> it's dependent where you live and how the bills work there it also depends on things like hedging. it's hard to make those predictions. i think any relief is relative since it is, you know, they have come down a lot, but it's higher than last year so that's probably still going to be a pressure now there are all these calls we have to upgrade the grids and that takes spend big utilities they could get the green light for rate increases so there are a lot of factors, you know, here to watch.

the utility sector is so complicated in how those are pass along to consumers. >> it takes a while but then it hits, right? >> absolutely. >> thanks. let's get to bertha coombs for our cnbc news update. >> here is what is happening the suspect in this weekend's dance hall shooting may have been targeting his ex-wife that according to the mayor of monterey park, california. ten people were killed and another ten injured in that attack police are still investigating and have not commented on a possible motive. the fda is proposing making covid shots an annual vaccination. the plan would also allow most people now to skip the initial two-dose vaccination and immediately get a shot of the most up-to-date vaccine. fda advisors will meet on thursday to discuss the new covid prevention strategy. and lawyers for the theranos founder elizabeth holmes deny accusations she was planning to

flee the country following her fraud conviction prosecutors made the allegation in a filing opposing efforts to keep holmes free on bail pending her appeal defense lawyers say holmes' partner booked them a flight to mexico to attend a wedding on the assumption that homeless would be found not guilty. of course, that was not the case. >> all right thanks. ahead on "power lunch," the key earnings on deck this week comes from tesla analysts expect earnings and revenue growth what role will pceutplri cs ay on the road ahead with the stock up nicely this month, by the way. we are back in a moment. (vo) give your business an advantage right now, with nationwide 5g from t-mobile for business. unlock new insights and efficiency, with leading ultra-capacity 5g coverage. t-mobile for business has 5g that's ready right now.

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lunch. tesla stock rallying today, 17% higher in a week never a shortage of news surrounding this company and the founder. we will get to all of it, including elon musk testifying once again today in a shareholder lawsuit related to that now infamous funding secured tweet from a couple of years ago. phil lebeau has been monitoring the case for us. phil >> and the testimony from elon

musk has just resumed. he was on the stand for about 3 1/2 hours this morning and during that testimony a lot of the questions focused on what exactly did he mean and when did he make the decision in terms of sending the tweet back in 2018 about taking tesla private, considering taking tesla private at 4:20 with funding secured one question came into the -- from the attorney was, well, did you know that you had secured fund sng elon musk said, yes, because he had been talking the saudi investment fund. elon musk said, they were absolutely supportive of taking tesla private. unequivocally without hesitation, and in fact i asked them, i asked the head of the saudi investment fund if he was certain about being supportive and he said yes. again, this gets back to the question of did elon musk truly have support when he said funding secured at $420. also, by the way, he denied, and he did this on friday, when he

tweets, that automatically people are going to make investment moves based on those tweets again, the testimony from elon musk has resumed and the questions this afternoon, a lot will focus on what exactly did he think was going to be the result of these tweets in fact, an attorney for the shareholders, guys, within the last hour said, well, how did it take to realize the impact of your tweet elon musk said, well, i wasn't paying attention that day and the attorney said, well, when did you pay attention? you didn't tweet for three more days he said i used the word considering. this is the kind of testimony back and forth between elon musk and the attorney for the shareholders that's going on right now in the courtroom out in california. >> and, phil, as this lawsuit is going on, a potential trouble spot emerged last week with the former engineer at the company saying a video demonstrating full self-driving was faced. what do you make of this

>> well, it depends on whether or not a regulator steps up and gets involved. remember, with nikola, it was a case where you had a noted short fund said, hey, look, this was faked video. that ultimately led to the s.e.c. getting involved. if there is some kind of regulator who gets involved, whether it's the s.e.c. or nitsa, and they have been investigating the autopilot technology at tesla, then there are real implications. otherwise, we've heard these allegations and these claims from people either who worked at tesla or who have tested out autopilot who said, will look, this is not the system he purported it to be, it's completely full self-driving it's not we have known that for some time the question becomes when does a regulator say, okay, enough is enough, we are going to step in. >> all right and stay there if all of this wasn't enough, the company reports results on wednesday. we call them earnings, but i don't know analysts expect growth of 30% on

the top and bottom lines we know that tesla delivered more than 400,000 cars in the quarter and, of course grocery prices margins will be the key things to watch as price cuts as much as 20% on some models some of the famous marlboro price cuts 30 years ago. marlboro friday, i think for more let's bring in joelle, michael santoli and phil lebeau with us as well. great to have you guys here. mike, start with some history for us >> sure. it was a friday, is1993 marlboro, philip morris was the parent company, announced a price in response to having been losing market share to private label lowerer price brands of cigarettes it jolted the market philip morris shares had been weakening but went south on that news because it undermined a very specific premise of

investors and they were kinda complacent about the ability of marlboro to hold mark share and have consistent price increase i am not sure it's a one to one. the idea among tesla investors they were constrained by supply and not demand and didn't have to cut price to stoke demand, it that seems to be one vague sim larry culpty here. >> >> what do you expect the effect to be across the industry are they going to elbow competitors out? >> i think that's the likeliest scenario for now tesla definitely has the best position relative to supply chain and to getting cars out on the market and although, you know, the ev markets is growing dramatically and the number of players involved is growing by leaps and bounds, tesla still has the ability to deliver more goods to the market right now i think that they can really

take a big bite out of the market, which is growing, and will continue to grow for the foreseeable future. >> and the cost of that is near triple profit margins, right what would success look like is it going to start off by looking like failure >> i don't know. the profit margins at tesla are still very strong. to be fair, elon musk if he wanted to rebate everybody $10,000 out of his own pocket he could do that. so i don't see a huge cut to tesla's long-term profitability. there might be a short-term drop, but it's not going to be an organizationally threatening event. >> phil, how much pressure is tesla under to boost deliveries? >> they are under a fair amount of pressure from the standpoint of they have got four gig a factories worldwide, two in the u.s., the biggest in china and one in europe. so you have got factories in

place with a manufacturing capacity of somewhere around 2 to 2.2 million vehicles. you don't want to -- if you have that capacity and you can use it, you want to use it and if you are tesla right now, you have the hammer, tyler you have the best-selling electric vehicle in the world with the model y, and it's in the sweet spot in terms of pricing relative to other vehicles if you are tesla and you can afford to take a hit on the automotive gross margins, so you drop them down to 22 or 21%. that's still more than double than the profit margins from all the established automakers if you are tesla, the cutting of prices makes sense you can afford take a bit of a hit on profit margins, but you can grow deliveries potentially. >> mike, are you looking to the stocks of the other ev automakers kind of for signs here of which way this one is going to break in terms of opening up more of the market to

tesla or shooting themselves in the foot >> certainly looking at this em. i actually think the legacy carmakers are worth looking at, too, because a lot of the embedded growth expectations is based on how much the ev market they can capture i think it's all connected one of the issues with reacting to tesla's pricing moves is that if it seemed as if it were this grand strategy and they had sat there in a disciplined way and said this is what we are doing as a power move to gain market share, it might have been taken better if expectations were for earnings weren't so high, maybe the market could absorb it it came along with the end of quarter scramble at tesla to deliver as many cars to meet targets and it's happening at a time they were shut down in china for a little while, so it has a sense of a disorderly slightly panicky reaction. by the way, earnings estimates

for '23 and 2024 are down 20% at tesla in the last three months so whatever the long-term impact, the short-term impact is, the stock is more expensive than in september even if it were at today's price. >> how vulnerable is tesla to elon musk's popularity, or lack of same? >> i think it's really too soon to tell, particularly because the kind of base tesla buyer leans republican so the fan boy base of tesla is the same for elon musk the range of evs available for people who don't like musk is still pretty large the price might be high, but, i don't know i think it's too soon to tell. there is always a risk of ceo personality and ceo behavior leading organizational behavior, the organizational reputation seems to follow ceo robustly in

the organizational research. it could happen. i think the likelihood in this scenario is relatively low. >> look at the shares. up almost 8% today with all off this going on. thank you all. tstill to come, compost clothing fast fashion is a growing business with a growing carbon tas totin deilinoday's clean start that's next. has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

. fast fashion is a big business, but it is also a big polluter now new companies are stepping up to try to lower clothing's carbon footprint our continuing series on climate startups >> fast fashion is responsible for about 10% of global carbon emissi emissions. while some companies are claiming sustainable clothing lines, there is a very wide variant in what that means one portland, orlegon, based startup aims to upend the way we dispose of our clothes the market for plant-based clothing is growing fast companies like aktiiv, kent

underwear and unless unless calls itself the first street wear brand to create products that harmlessly decompose at the end of life you can compost these clothes. >> this basically was a t-shirt three weeks into composting process. we are a bunch of fashion executives that got tired of the make, take and throw away culture of fashion. >> reporter: the ceo came from adidas no surprise it includes footwear and apparel and accessories. it's made from 100% plant-based nutrients, colin, hemp, coconut fiber. >> what happens when i'm done using it, it harmlessly becomes plant and worm food. that to me is just as important as the quality of the product. >> reporter: it has just one pop-up retail store in portland nad to the online seas the hope is the grand grows along with the already fast

rising consumer demand for greener products >> i would pay more for sustainable clothing partly it's my contribution to helping the planet and i think that we should all contribute in ways we can. >> reporter: unless is backed by connect ventures, investment partnership between creative artistry and nea total funding to date $7.5 million it's not cheap thispaio degradable hoodie goes for $119 on the website. they also sent us sneakers, which are very thick and cool, they run for about $139, which i guess in the sneaker world is not that expensive they say the more they scale this product, perhaps the lower the prices will be in the future. >> how will they scale the product against so much competition? >> they are collaborating already with well known brands they did one with a swiss company and immediately sold out. the more they get their brand

out into other companies, spread the word, the more they can scale their business and lower prices. >> you throw them in the backyard compost >> you can bury in hoodie, which, by the way, is very heavy. it's strangely heavy but you do, you bury it in the backyard it can become dirt, is the point. i guess you bury it in the backyard or put it in your composter and it becomes the earth again. >> you are bury it and, kids, let's go bury our clothes. >> it would be fun. >> i love it thank you very much. up next, chip stocks leading the nasdaq higher. we'll trade them and others in today's three stock lunch. y.” maybe it's perfecting that special place that you want to keep in the family... ...or passing down the family business... ...or giving back to the places that inspire you. no matter your purpose, at pnc private bank, we will work with you every step of the way

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it's time for today's three stock lunch: nvidia, jumping 7% p. barclays up side for the sector spotify, after their plan to lay off 6% of the global work force, and salesforce, shares up 3% on big news of activist investor taking a multimillion dollar stake in the company i love this, you're a purist

you don't have to have an opinion on what's going on at salesforce, just an opinion on the stock. let's start with nvidia, what do you see? >> yeah, nvidia, this is one of the key reasons of why we think that the 2022 bear cycle is coming to an end we're seeing a broadening list of the right stocks that are reversing higher semiconductors included. we upgraded the semiconductor industry to overweight a week and a half tago. to gain exposure to cyclicality. nvidia is one of several names in the group if you look across the industry, you have several names moving about their 200a average, reversing their prior decline, and we think that strength continues. looking at nvidia, the stock has come into a test of resistance at the 92 level. it's a bit less tactical than it was, but we think you want to buy pull backs in anticipation for a break out, and looking through the course of the year,

we see up side to $250, that being a key resistance level from about a year ago. >> let's move on to stock number two, and that would be spotify, ari. >> okay. spo spo spotify, a great example of the market rotating to the bear cycle's biggest laggards, which is a characteristic of a market, junk rally, low momentum stocks, you got it buy it right, sell it right. you need a tight stop as well. there are longer term structural concerns in the chart we're worried about. it's a stock that's moved above its 200 day average for the first time in a year as long as you're above today's gap, let's call it support at $99, thenext key resistance comes in at 125, which is the up side that we're thinking about over the coming weeks to months. >> all right so that brings us to salesforce,

ari, and what do you make of this one is this. >> this would be a relative sell listen, a rising tide lifts all boats. if we're right about the market, most likely salesforce rises with the market over the coming months the thing with salesforce, why we're less convinced about it has been relatively weaker it's a stock that is still trading below its 200-day moving average, which is slow going as well for these reasons, we would prefer to sell it binto that resistance point at $162, unde understanding a rally above it would be an incremental positive >> thank you so much, and so, by the way, ari, how far do you think this bullishness on the market overall could extend? >> i'd be playing along the lines that this is the start of a bull market coming out of a nonrecessionary bear market. if you look at performance under

those circumstances in the post war era, typically over the first 15 months, the market is up about 25% that starting point would be october of '22, which we think was the low point of the cycle, but that gets us to 4,400 on the s&p 500 through the course of the year, so we do still see more up side >> all right we'll see, ari, thank you so much we always appreciate it. ari wald. is jeff bezos punting the post for the commanders. we'll both discuss after this. >> my hometown paper, my hometown football team ore than . you need cdw, who gets to know your business and can design and deploy custom solutions, with pre-configured hp notebooks with hp wolf security. ai-enabled threat detection and remote management protect your endpoints 24/7, giving your defenses some real teeth. bummer. hp makes always-on remote security possible.

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a new best year ever on wall street, griffin citadel brought in $16 billion according to estimates from lch vmts. t -- investments that surpasses john paulsen's gain when he made billions in shorting the housing market in what is called the greatest trade over citadel's flagship fund, wellington, returned 38% last year compared with a nearly 20% loss for the s&p 500 short on details in this research on what exactly propelled citadel to such a monumental year. they ended the year with 62 billion in assets under management because of, in part, that $16 billion in profits. they had to be short something >> right, and it sounds like

it's a little bit of everything as well. equities, commodities, global fixed income, macro credit, they have probably reached a size, i think they unseated bridge water as the biggest, and they're probably reaching a size, the best of the bunch. ken griffin has been on a spending spree. >> he has no state income tax to pay either the other thing that's interesting, they do not merely have their fund business, they have security businesses and ancillary businesses that i think are very profitable as well. >> yes, fly wheel, shall we say, speaking of which, jeff bezos is reportedly considering selling off the "washington post" in order to clear the way for a bid on the washington commanders, the football team. he bought the post for a quarter billion, $250 million all the way back in 2013, but the dema commanders are going to be a lot more the highest bid on the team came in at $6.3 billion, and tyler, this is your backyard. >> this is the newspaper i read as a young boy and the football

team that i followed for many many years and there was bad blood between the current owner of the washington commanders, dan snyder and his family, and mr. bezos over what mr. snyder believed to be impolite, let me say, coverage of the commanders team whether selling the post would get bezos in the running and patch over that whatever ill feeling there is, who knows, or whether -- and we don't really know what mr. bezos's intentions are. he did not submit a bit in the first round of bidding because he felt like, well, i'd be bidding against myself if i do so because everybody knows i'm the biggest foot in the shoe store here >> so do we think he has to sell the post or he is just choosing to >> i have no idea whether he would be choosing to sell the post so it clears the way for a bid on the commanders or whether he wants to sell the post because he wants to sell the

post, and if so, who the buyer of that would be remember, "the washington post" was a real powerful institution that he got for just $250 million. >> this is one to watch, especially to see if sports truly are recessionable. >> we shall find out snyder apparently look ing for billion. >> thanks for watching "power lunch. >> "closing bell" starts now. >> there's green on the screen, look at the nasdaq leaving the charge we're at the best levels of the day. a make or break hour for your money. welcome, everyone, to closing bell, i'm sara eisen: take a look at how things stand for the rest of the market the dow up 1/2%. what's leading the market? it's information technology, the chip stocks really on fire today. we'll talk about that. communication services and consumer discretionary with names like tesla, and a lo