even if you like a house, lowball the first offer. the house whisperer! this house says use the realtor.com app to see three different estimates. also, don't take advice from people who don't know what they're talking about. realtor.com to each their home. good afternoon, everyone, welcome to "power lunch. along with kelly evans, i'm tyler mathisen coming up this hour, the two big things the markets are watching, earnings and the fed we will get you set for tomorrow's big decision on interest rates and break down all the angles of the earnings

from the big names that are reporting, kelly, today. plus a crypto comeback bitcoin is up nearly 40% so far this year. has it survived crypto winter? we'll talk to the always out spoken, always entertaining jack mallers. first a check on these markets as we're near session highs right now, a day to go until that fed decision. nasdaq up 1.2% small cap russells leading the way. >> let's get over to dominic chu for more on what's moving the markets. i see caterpillar over there. >> yes, that's right, a dow component in caterpillar down on the day. as you can see well off the session lows right now after the heavy machinery and construction giant reported better revenues helped along by strong user demand those results were hurt by the effects of currency headwinds. if caterpillar were just flat on the session, the dow would be up

275 as opposed to the 225 you're seeing on your screen. u.p.s., global economic bellwether the mixed results better than expected profits on sales that missed the mark they saw lower holiday season shipping volumes albeit at higher unit revenues they started a new $5 billion stock buyback program. and pultegroup up big. gross profit margins grew and they did note that demand d dynamics for housing improved into the beginning of this year. pulte shares up 9% so far in trading today. >> just a huge move, dom, thanks. we have a ton of earnings out today. we started with gm the stock jumping. tons of news in this report. tons of superlatives also. let's get to phil lebeau to kick

things off. >> let's look just at the numbers. we're not going to talk about the ev prospects but just the numbers. these are the numbers that gm investors love fourth quarter way above expectations beat the street on the top and bottom line. they set guidance that was above the analysts estimates and gave a strong pricing outlook they're not seeing a huge amount of pressure that is forcing them to cut prices on new vehicles. they are, however, going to be cutting their costs by $2 billion this year and next yeek c year combined. how are they going to do it? through attrition, trying to be smart about using their resources. the ceo says we are not planning to lay anybody off take a look at shares of gm and ford we're showing you one year they generally trade in tandem for general motors, one important note from the call today regarding evs. they are not cutting their prices they do not believe they need to do that.

that's a big difference from ford yesterday speaking of ford, we will get the q4 results and 2023 guidance, likely get that when the company reports earnings tomorrow afternoon guys, back to you. >> is the fact that they're not cutting prices the big news with respect to their ev competition with tesla >> i don't think so, tyler, and here's why they really don't have a direct competitor to the model y. they have the bold euv and they are likely not shopping the tesla model y as opposed to the mustang mach-e which is a more direct competitor. that's the pressure that ford was feeling and why they had to cut their prices. >> phil lebeau reporting on gm let's talk were another household name and that would be mcdonald's that stock down despite what seemed like strong results pippa stevens joins us now with more. >> reporter: the company did beat results on the top and

bottom line driven by higher prices as well as positive traffic. the company earned $2.59 per share, which was 14 cents ahead of expectations. revenue came in at $5.93 billion, that stopped forecasts, but was down 1% year over year due to fx impacts. global same-store sales blew past expectations. in the u.s., sales were up 10.3% during the last three months of 2022 but the company did warn that macroeconomic uncertainties will persist and stubbornly high inflation including around commodity, labor and energy prices continue to weigh on margins. the ceo said developing new units remains a priority for the company. that stock down about 2%. >> wow so like you said, you would have looked at these or glanced at them and thought a strong report, still the stock is

struggling what are we gleaning from the consumer as a result >> a couple of things. first of all, they said they think inflation in the u.s. has actually peaked. that doesn't mean we're not still facing all these headwinds. and the base case is still that we'll see a mild to moderate recession in the u.s. with a more deeper and steeper one in europe but ultimately consumers seem to not be caring that much and they are still spending the ceo said that the consumer looked a lot better than he thought even six months or a year ago whether that consumer is in the u.s. or europe, people are still spending. >> it's quite a divergence there. deep recession but strong consumer next up on our earnings rundown, it's got to be pfizer underwhelming investors as we move into the post-covid landscape. meg tirrell has that for us. >> if you look at pfizer's forecast, it does look like a post-covid landscape 2023 is going to be a trough year, the lowest year in terms of revenue for their vaccine and

covid anti-viral $30 billion less in revenue than the $100 billion record revenue that they posted for 2022. fourth quarter was essentially inline but you saw the stock weak because of that 2023 forecast they're expecting $21 billion in sales for the vaccine and anti-viral drug. that was about $9 billion short of what the street was looking for. pfizer laid out in granular terms how they're putting that expectation together and they do expect that after this year they will start to see covid revenues start to increase again, guys. >> meg, what does pfizer have in the pipeline to get the company past covid >> it's another huge question. they are really doubling down on vaccines we've seen a lot of activity in rsv. pfizer is one of the key players there. some of the products that they have acquired are for migraine

and sickle cell disease so we'll watch that as well. >> thank you very much, meg tirrell. and the big report after the bell, is amd. kristina partsinevelos who's got more energy going today than anybody else. >> they're not seeing what's happening behind the screen. >> they're not seeing it. >> give us the word on amd. >> let's talk about amd shares that are outperforming the s&p 500 but competitor intel's brutal quarter means earnings are facing even more scrutiny after the bell intel, if you don't recall what happened, and when we show the two charts, you can see on amd's chart that it dropped the moment intel's numbers came out intel also said they posted higher cpu inventory due to pc% demand weakness and lower pc sales affect data center sales which make up over a quarter, orange one over there, a quarter of amd's revenue that's why morgan stanley, bank of montreal, credit suisse analysts expect near term weakness to weigh on amd's q1

outlook. but the outlook is expected to improve for the year you've got the pc inventory. analysts expect it's going to normalize in the second half of the year consensus is pretty flat for gaming, but remember nvidia is the dominant player in this category and you've got growth in servers that should be a bright spot but there's a lot of confusion about data center demand and whether those numbers will continue to grow for amd and if possible it could continue to steal market share away from intel. the competition is very fierce between the two. >> what does intel's report from last week auger for amd or could it suggest amd is eating intel's lunch? >> you had intel that warned about weak pc sales. and in q4, the thought process on the street is that it was a bottom going into the new year with amd, they may not have to worry so much about that, but it's data centers where there's a big question

and you're already seeing a price war going on bernstein which downgraded amd said they saw client parts actually cut the average retail price just within two months of launching. so that's a big move for amd to do in such a short amount of time in order to compete with intel when demand is lower across the board because it eats into margins. >> i thought it was noteworthy with nxp this morning, auto is relative strength and the stock is up 3%. >> that's not a major driver for amd. that's why there's a lot riding on amd's report and qualcomm on thursday. >> kristina, we appreciate it. still ahead, we'll talk to someone who sees 13% upside from here for the s&p 500 this year sam stovall will explain how he came up with this bullish target which is one of the highest on the street for more, tune into "mad money." tonight.

diusn ow lisa su will be oto scs their results, looking forward to all of that "power lunch" back after this.

welcome back to "power lunch. stocks are trading higher to ending the month with the s&p on track for its best january since 2019 our next guest expects that to continue this year sam stovall is setting his year-end price target for the s&p at 4575 and he joins us now to explain his strategy.

sam, welcome >> hey, kelly, good to talk to you. >> you too in a year in which a lot of the analysts are pretty bearish, people's main question is how do you get there? >> well, first off i think you really should understand that a target price is more of a weather vane than a laser beam it is a 12-month outlook and we put it together so that it gives guidance to our analysts so when they compute the intrinsic value of stocks, they know whether it's a buy, hold or sell based on the forecast of the overall market what goes into that decision is a combination of fundamentals, which is the cap weighted target price for the companies in the s&p 500 put together by cfra equity analysts which is a year ahead outlook. from a technical perspective, i look at point and figure targets for the companies in the benchmark. and then i also take a look at the historical precedent, because a lot of people like to

forecast recentcy and are thinking 2023 is going to be exactly like 2022 and that's usually not the case the market tends torise by mor than 14% following a down year versus a more normal 9% advance. and as bob pisani just posted recently, the january barometer is another indicator developed by the stock trader's almanac that points to a favorable position ahead. >> it's fascinating, sam, because people go, wait a minute, if you base this off the equity analysts, aren't they wrong and too optimistic and so on and so forth. but if you say, well, just thinking back through history here and what we're likely to see, it's probably not going to be as bad as last year okay, what if we're going into recession? and i think your data points as well on what happens between the last rate hike and the first rate cut are quite provocative

it's typically a period in which stocks do quite well and that could be the type of period we're in right now. >> absolutely. we've had nine bear markets since world war ii that have been accompanied by recession. traditionally about four of those nine have been declines that are similar to what we already experienced. also prices lead fundamentals so last year the market was down. this year earnings are down and historically whenever earn been down, the market has been up in anticipation of the earnings recovery in the year after, and we're forecasting about an 11.6% rise in s&p 500 earnings in 2024 >> so let's talk a little bit about interest rates and what you're anticipating there. i assume you think that we're closer to the end of this rate tightening cycle than we are to the beginning. how would you handicap the possibility that tomorrow may be

the last turn of the screw before a period of pause and then maybe a loosening cycle >> tyler, good to talk to you again. yes, we do think that the fed will likely raise rates by 25 basis points tomorrow. it probably could be their last rate hike for this tightening cycle, although they're not going to admit that. >> no. >> i think they're going to continue to talk tough because they want to affirm that they are data dependent and they will make that decision based on future data. but let's face it, the fed is aiming at a target that's below the horizon. they don't want to overshoot the target and also history tells us that the fed starts to cut interest rates fewer that nine months after the last rate hike. so i think that there is a possibility. history points to a more than 13% advance in that nine-month period going back to 1990 with all styles, all sectors and all

sizes within the s&p 1500 posting advances. >> so all styles, all sectors potentially posing advances, but i suspect within those all styles and all sectors, you have some that you think will outperform the median and underperform the median. point to them. >> good point, yes actually what we're looking for right now is going from first to worst, meaning the first, the best performing sectors last year were the defensive consumer staples, health care, utilities. also energy. and historically investors rotate away from the defensive side of a ledger following a market decline and into those groups that were the worst performers, those that got beaten up the most, so include in that consumer discretionary and technology we're sticking with our energy overweight because we still believe that there is upside potential for energy prices.

also the energy sector is trading at about a 45% discount to its average pe over the last 23 years so looking at companies in consumer discretionary like aptiv and tapestry or an energy like eog resources and schlumberger, microsoft and technology, in the year ahead we think they could be outperformers. >> if people wanting to start thinking through what happens if we go into recession, would that change everything that we talked about, if the picture in 2024 looks like a harder landing than what we can currently see? >> right now i think the market is already anticipating a recession. the market has had a bear market and a recession every time we've seen cpi above the 6% level, whenever we've the lei on a year-over-year basis be negative, whenever we've had an earnings recession and whenever we have had such a steeply

inverted yield curve but i think a lot of that has been factored into the market. what has not been factored in is a depression, in my opinion. and usually when the nber, national bureau of economic research tells us we're finally in recession is usually close to the bottom so that's typically a buying point, not a selling point. >> great point, sam, thank you we appreciate it today sam stovall. >> thanks, kelly bye, tyler. still to come, folks, a conflict of human interest eric schmidt being tapped for a federal biotech commission that allows members to maintain their biotech investments. we'll talk about that curious conundrum, next.

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coventry direct today at the number on your screen, or visit coventrydirect.com. welcome back, everybody. new this morning, former google ceo eric schmidt making a change to the way he approaches washington eamon javers here with the exclusive details. >> hey there, tyler. at the end of december congress announced that eric schmidt, the former ceo of google and 11 other people would run a new biotech commission out of washington the goal is to get industry and outsider advice on the future of the industry broadly to guide congress' decision, particularly

on spending on biotech we looked at eric schmidt's investments. in his investments schmidt has an interest in atleast three biotech investments. we contacted schmidt's team about that after some back and forth, a person familiar with eric schmidt's thinking tells me that schmidt will now donate the profits from those investments to charity not clear which charity he's going to choose when those profits do materialize, but the profits that schmidt makes from first spark ventures he says he is going to donate to charity. all of that is designed to demonstrate that when schmidt joins these boards and commissions in washington, d.c., he's doing it for all the right reasons. this isn't the first time, tyler, that schmidt has taken on a role like this he's done a number of these. we reported back in october when he joined and chaired the federal commission on artificial intelligence, he actually made as many as 50 investments in

artificial intelligence companies during the time that he was chairman of that commission so this is a new approach for schmidt. through a person familiar with his thinking is telling us he's going to donate these profits to charity, tyler. >> let me ask you a couple of questions, one after the other does he maintain that he does not control the investment decisions in these funds, number one? and number two, what about other members of this particular biotechnology commission, do we know anything whether they have investments in biotech companies as well? >> sure. well, the chairman who's going to be -- the person who's going to be the chairman of this commission is the ceo currently of a biotech company in boston that company tells me that he will remain as the ceo of the biotech company while he's advising the federal government on biotech policy and he's simply doing the commission role in his personal capacity but his

involvement with his company is not expected to change as far as schmidt goes, yeah, there is this issue of investing through a venture capital firm a person familiar with schmidt's thinking told us he does not direct those investments he didn't decide which particularly biotech companies that venture capital firm would invest in. that said, he has a personal financial benefit from those biotechnology investments. when you talk to ethics experts in washington, they say the conflict of interest issue there is real because you worry about somebody making decisions to feather their own nest in a position of power like that, rather than for the good of the country. so when you talk about conflicts of interest, ethics experts and some of the ones that we quoted in our story on cnbc.com, would like to see further divestment and further disclosure related to these. >> if that's the case, why would they let the ceo of a biotech company keep his job -- >> chair. >> chair it. what is the purpose of this

committee? is the committee to say we want the best and brightest biotech minds, for instance, to tackle something like -- i don't know or is the purpose of the committee to set rules that might favor one part of the biotechnology landscape over another? it's odd that they would let a sitting ceo be the chair of this committee. >> the purpose is to gather the best outside minds to guide the federal government this was created by the congressional armed services committees so through a defense prism on how to approach biotech. but it will include things like spending advice, where investments should be made in order to further america's biotechnology dominance in the world. so the tension is you want to get access to those best and brightest minds in the private sector but don't want to create a conflict of sector how do you do that the ethics expert, walter schaub, who we talked to for this story, said they simply missed the bar here in terms of the ethics standards of conflict of interest here

there is a way for the best and brightest to be involved in congressional decision-making and that's through congressional hearings and testifying on capitol hill and giving their advice in a way where everyone knows who they are, what their ax is that they're grinding in particular, whether they're talking their own book or not, all that on the public record. this is a little bit more obscure, a little bit more hidden some folks in the ethics community think these commissions need to be scrutinized a lot more because is allow had enormous influence from people in the industry who benefit from some of those decisions. >> it's rita reporting, thanks for bringing it to us. let's get to bertha coombs for the cnbc news update. here's what's happening at this hour. the fbi searched the penn biden center offices in mid-november, about two weeks after president biden's lawyers found classified documents there from his time as vice president it's unclear whether the previously undisclosed search turned up more classified records or anything else of importance video has been released of

former president trump's deposition this summer it was part of a probe by new york prosecutors into business practices at the trump organization over four hours of questioning, trump invoked the fifth amendment more than 400 times. and a new study has found black americans are between three an five times more likely to be audited by the irs than nonblack taxpayers researchers do not blame the disparity on intentional choices by irs staff the study found algorithms used by the irs drove the higher rate its authors are urging the irs to modify its selection process and that algorithm back over to you. ahead on "power lunch" it's a crypto comeback. after months of declines or being stuck in the mud after controversy after controversy, bitcoin bouncing back 40% this wel lk 'lta more about that on the other side of this quick the other side of this quick break.and boundless curiosity.

we dissect the market from every angle. helping to build portfolios that redefine what's possible. because investing isn't one size fits all. allspring. purposefully divergent.

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in chicago we start with bob pisani at the stock exchange. >> it's risk on. take a look at the sectors, we've got ark, tech stocks, bank stocks up and utilities down why are we risk on maybe it's because they like the employment cost index numbers. maybe because of low expectations in the earnings world. but we've also got the fed drift, which is the tendency for the market to drift upward in the two days before the fed meeting. we'll see if that actually happens. earnings are still going on. the only one that matters in the next 24 hours is amd remember what happened with the intel disappointment why would amd have better guidance than intel? they have taking some business away from intel and of been doing that for a long time but there's a lot of intel chips out there. maybe there's competition. nobody is expecting a lot. it's been acting better but we bottomed back in october so both intel and amd is acting a little better we'll get those numbers right after the bell the bottom line is low

expectations on earnings and hope for a soft landing is moving us and keeping us close to that 4100 level on the s&p 500. as long as we stay around that, we're breaking that downtrend that existed for the last year kelly, that's what's important the market is acting like the fed is topping out in terms of the rate increases and that we're going to get some kind of soft landing all of that could be wrong but that's certainly the bet and the way the market is acting right now. kelly. >> i'll pick it up from there, bob. bob pisani, to rick santelli on the trading floor of the cboe. rick >> yes, the cboe if we consider the fact that in the december 14th meeting where we did 50 basis points, let's do a chart. that's fascinating is the close that day was 3.48. basically several basis points away from where we're trading right now. if you go back two meetings to the november meeting, you can

see right after that meeting we made the 4.22% yield close on the 10-year. why is that important? let's go back a little farther towards october. 4.25, 4 .24 to be precise was the close post covid everything is aligning up. fed fund futures for june. that's where the contracts stopped going down and start going up it's the fulcrum if you look at june covering 95.09, on the early part of november right after that meeting, it made its low pricing, 94.865. that means the probability of a terminal rate at that point was 95.09. it's now moved to 4.91 it's rallied a bit that's important especially considering that the fed most likely, according to these guys, may be done with tightening cycle tomorrow and to that ending we're going

to find our buddy, jim hi, jim. >> hi, rick. >> what do you think is going to happen tomorrow. is there anything in the marketplace that gives you a clue as to what traders are looking at >> the pricing of the one day, two day, three day options is significantly higher than everything else behind it. generally that's puts owned by customers and dealers. likely to see a buyback as vol compresses regardless of the outcome. i think particularly given that yesterday the fed whisperer came out and kind of floated this call selling right before the fed. this idea that the staff is talking to the committee about being a little bit more hawkish. and the market responded relatively well at those levels. you're seeing vol coming back down i think that's what you're going to see. >> that was a reversal from some of the other fed speak moving markets. >> brainerd a week ago, that word transitory really got

people thinking, okay, they're going to be dovish again and that's part of what brought the vol down a little bit in the last couple of days and put a floor under this market. >> there seems to be this dynamic that the markets and equities always seem to come back and the dynamic with vix is that it always seems to go back. >> i think the two are int intrinsically corrected. vol structurally affects how markets move puts are the way they hedge in the washington dealers are short the puts if you have a vol that comes down, that will naturally lead to a buyback of the stock. >> excellent, jim, thank you for your opinion can't wait to see what the markets do after the meeting tomorrow at 2:15ish or so. kelly, it's all yours, back to you. >> thank you both. now oil is trading and we have gains again about 1%. but the big news today, exxon's

results and the ceo's remarks about dividends and buybacks. >> they beat on both the top and bottom line and it was similar to chevron's report. if we look longer term, they really blew it out of the park for the entire year their earnings were nearly $56 billion. to put that in perspective, that is more than $10 billion above the prior record from 2008 so it was a very good year for exxon. of course the white house came out against chevron last week. today a spokesperson told cnbc that exxon's profits were outrageous very much the industry is caught in the crosshairs of washington. here's what the ceo told becky quick earlier today about that fraught situation. >> i think, you know, my first comment would be the white house needs to get its facts straight. if you look at what we've been doing, we've invested more than any of our other peers we spent that money and are providing more products today because of those investments

and so i think we're doing what the white house in essence is asking us to do. >> so essentially he's saying that they invested even when other companies weren't. so they believe that they have been doing all that they can to bring prices down for consumers. >> and the market controls a lot of their profit, right they can't control the market, what the market does >> yeah, and shareholders, they want returns they want dividends, they want buybacks, they want these companies to stop producing. it's also a lot of banks maybe won't lend to big oil companies now, so there are a lot of factors that they say are very much outside of their control. once you start paying shareholders more, you can't pull that back once they start expecting a certain level, that's what they are seeing. >> pippa, thank you. pippa stevens. good news is hard to find in the crypto space or at least it has been lately, especially when you see multiple companies facing controversies, bankruptcy, collapse but good news from crypto tech

firm strike and crypto overall it's up so far this year crypto -- thisomnytr cpa sike setting sail for the philippines. the ceo will join us next.

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to announce job cuts kate rooney has this breaking news. >> so paypal is laying off about 2,000 full-time employees. that amounts to about 7% of its total workforce. dan shulman, the ceo, talking about this in a blog post. he boiled it down to cost cutting and talked about the macro environment as well. he said while we have made substantial progress in right sizing, our cost structure and focused on our resources and our core strategic priorities, he says we still have more work to do we must continue to change as our world, our customers and our competitive landscape changes as well and evolves he did say that some parts of paypal will be impacted more than others. he said we'll find out more about which business units this is going to look at. but it all comes down to cost cutting. as you mentioned, dan shulman,

the ceo, talked about back in august targeting $1.3 billion in cost savings this likely a part of that it joins a host of other technology e-commerce companies that have done the same thing. amazon, shopify, stripe, all in that arena but the latest sign of belt tightening that we're seeing in silicon valley and some of the fintech names. >> kate, i'm always curious which of the ones are undoing hiring in the past couple of years and which ones are we cutting back on an even normal size of the company. did they add a lot to head count recently during the stimulus boom >> so we don't have a percentage in terms of what they did on the hiring front, but it's been interesting to see some of the tech companies that doubled, for example. i don't think paypal is in that arena where they hired to that extent, but there was this pull forward effect with e-commerce in general where companies

really grew at all costs and felt like they needed to hire to keep up. we don't have the numbers right in front of us, he doesn't mention it here, but in some cases it is absolutely a matter of right sizing and getting back to pre-pandemic levels i think in the case of paypal they also have an activist elliott took about a $2 billion stake so they're adding some pressure for the cost cutting and it really boils down to them just getting back topal shares about 2% there's been mixed reaction. sometimes we see rallies, sometimes declines at least for today this one is greeted as somewhat of a positive. coming up, bitcoin continues to rally it's back above $23k we'll speak with jack maller next ent-inco lan designed to balance growth and guaranteed income.

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(vo) at wells fargo, direct deposits come up to two days early with early pay day.t always puts you first. what if everything came two days early? (hero) have a good weekend! alright now... have a good weekend. (co-worker) but it's wednesday... (co-worker 2) see you monday! (co-worker 3) am i missing something? (hero) it's the weekend baby... see you later. (vo) like getting things two days early? when it comes to payday, you can with wells fargo. (co-worker 4) what are you doing this weekend? welcome back to "power lunch" everybody bitcoin quietly rallying 40% so far this year as traders try to move past the ftx contagion that rattled the markets late last year one crypto company continued to expand strike launching its send globally feature in the

philippines today. one of the world's largest remittance markets allowing customers to sending and receive cross-border payments instantly. so is this area an area of the crypto market that is showing signs of real life let's bring in the founder and ceo of strike. jack, it is always good to see you. how are you? >> tyler, kelly, happy new year. we always have some good banter on this show it's good to see you. >> it's good to see you. i want to understand something about this payment or remittance system if i am a nurse in denver and i want to send money back to my sibling in manila and i use your platform, strike, do i even know that my money is being transformed into bitcoin for purposes of the transaction or do i not is it so seamless to me that i don't even know? >> it's an unbelievable question, tyler. you don't know you don't know in fact we're very confident

that bitcoin in a payment setting, no one wants to spend bitcoin if you spend it in the united states, you're spending property you have to tell the irs about it there's a lot of volatility incurred we use bitcoin similar to how consumers use visa when you go buy your latte at starbucks. di you have dollars on your card, you spent them so no, i don't know, if you're denver and want to send money across the border, we just use technology that gets it there much cheaper and faster. that's not -- we don't think that's an important detail for people to know >> you mentioned the next sort of phrase that pays here, that is cheaper transferring money across the border can be a friction filled process to put it mildly and one where there's a lot of margin so the question for you is, how do you guys make money on these

transactions as you take friction out of the system and as you take margin out of the system, what's your mechanism for proficient snit >> yeah. so we replicate a lot of the same business models when a consumer makes a payment to the philippines from the united states, we mark money think about it, what visa does, i downloaded it from the internet for free. it's free, open-source software. the ability to settle value across the world, which traditionally implies counterparty risk, capital, interimmediate ra-- intermediaries it's the equivalence of the netflix, blockbuster story the only fixed cost for netflix was electricity. i got my fixed cost to run the free, open-source software that does a lot of the hard work for

me so the real disruption is the bitcoin technology under the hood we think it's important to obfuscate that away from the main street consumer my margins are so much higher, so i can be more profitable as a business by charging far cheaper. does that make sense >> my understanding is there's financial intermediaries making those conversions, but we don't have a lot of time, so i want to ask you about this, as well. philippines, a couple of countries in africa. one of the big questions is why isn't strike expanding more quickly, and are you running into head windis here in the u.s where you don't feel comfortable to offer this product widely yet? >> we are. we are making an aggressive push to get it out as fast as we can. so we launched ina lot of western african countries in december and now we're here in january,

philippines. we're going to keep going. so we're getting better. but also, yeah, of course. i mean, it's a friction filled industry, a lot of chaos, so we have had -- let me put it this way. if i could be in every country tomorrow, i would. but i can't. but we feel super confident and opportunistic. we're as healthy as ever and feel good. >> what are your prospects here in the u.s., do you think? >> as far as markets launched, products launch? >> yes >> all of the above. we just want to continue to grow one of the things that differentiates strike, i said on the show last time there's bitcoin and everything else i don't touch tokens people try to sell on foreign ex-changes. we focus on bitcoin, on payments

technology we're extremely missions based company. the rest of the industry has loans outstanding, bankruptcy filing we have done everything the right way, so we feel good we're just going to continue to grow bitcoin is probably the biggest invention that will happen during my lifetime, kelly. we're a market leader there. so we're going to keep going >> i think we will know strike has arrived when maybe -- would he go as far as a business suit tie? >> i don't see him wearing a tie. >> i would do it for you guys. >> jack, thank you up next, just a little over an hour left in the final trading day of january what a month it's been we'll take a look at some of the biggest winners and losers so biggest winners and losers so far this year.r their long-term goals.

(other money manager) but you still sell investments that generate high commissions for you, right? (fisher investments) no, we don't sell commission products. we're a fiduciary, obligated to act in our client's best interest. (other money manager) so when do you make more money, only when your clients make more money? (fisher investments) yep. we do better when our clients do better. at fisher investments, we're clearly different.

welcome back it's the last trading day in january, so we have some leaders and the laggard peloton. peloton soaring more than 62% in january. warner brothers up 55%, on pace for the best month ever. and northrup grummon on pace for its worst month since 2009 let's start with peloton, what

do you do with this stock here >> yeah, you sell it if you're long, and certainly don't buy any. a very strong bounce off the lows, but the reality is, this company has a capital issue. their debt to equity is 6 to 1, so they have a capital structure issue. >> warner brothers disco, what do you think >> this is interesting i marked it originally as a dell, but i started doing some due diligence. the tangible book value is 20 on this stock, so trading below that, which is attractive, despite its bounce a lot of debt, but $2 billion in cash so i think if you're looking for some, you know, a place to start a new name, this is a respectable area i would nibble some shares here and continue to see the turn around tory. they're going for profitability. if they do, this stock goes higher >> more positive on warner

brothers than on peloton what about northrup grummond if >> i think this is the strong buy. down 20% year to date. this is a monster compounder over the last ten years, they have been able to compound their book value by 20% per year they are trading at a modest valuation, 14 times eps. a ton of cash and a healthy balance sheet. and this company has raised its dividend every year nor the last 18 yeems a great opportunity to pick up northrup grumman >> peloton, what were they borrowing all that money for, to do what? >> yeah, probably those fancy ads that we saw during covid you know, stocking up inventory and then it just didn't sell it's a good question, but that's something they will have to deal

with going forward it's just too, too much debt >> too much debt, and then they went into brick and mortar stores, as well. which they probably did not need to do. thank you very much. >> thank you thanks for watching, everybody. >> "closing bell" starts right now. it is the last day of january, and stocks are looking to end a strong month on a high note as we await major challenges later this week the nasdaq is up today and up since the start of the year. welcome to "closing bell." here's where we stand in the market the s&p 500 gaining back most although not all of what was given up yesterday we were up 2 1/2% last week, down a bit more than 1% yesterday. and now up about 1% here we see the