tv The Exchange CNBC February 8, 2023 1:00pm-2:00pm EST
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have a double here >> glad i asked that question. thank you. joe? >> i will reiterate on uber, also 1:00, big ten-year treasury auction. >> you're buying uber. that does it for us. we'll see you in a few hours "the exchange" is right now. hi, everybody. i'm kelly evans. here is what is ahead this hour. time to play offense that's the big argument today from one of our guests but how long can that strategy work when the economy is slowing? we'll ask. and all eyes on disney ahead of their results tonight. what is the plan now we'll ask one of the biggest bulls on the street what he does and doesn't want to hear and why he thinks the stock should rally 40%. and when investors are getting ai a solid d, we have an expert
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claiming this technology could help kids more than hurt them in education. we're using ai in the classroom. but first, today's markets with dom shu >> that ai trade, i will show you how much billions it's costing the market it's red across the board, maybe not a surprise, but it's been fractional for the most part the dow industrials down 100 points the s&p is down about 2/3 of 1%, 33 points, 4130, just to give you a context, the highs of the session, we were still down eight points and 51 at the low that's the trading range so far. the nasdaq, 11,956. one place that's not seen as
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much of that downside momentum these days has been in the financials and specifically insurance. we talked a lot about the insurance companies that have been hitting record highs as of late if you look at progressive corps, it's up 28% over the course of the last year. it gets a gold star because of a record high today. and kie is up 7% this that time and hit a record high in trading today. so watch those insurance stocks, showing that upside relative momentum to the rest of the market now to the reason why the nasdaq, the tech heavier trade is down so big right now alphabet shares down 8%. that's off of the session lows, believe it or not. down 28% over the course of the last year. and the ai trade playing out here alphabet, the parent company of google, releases their own ai technology and their own ai chat bot called bard today. some investors are not as enamored with that effort, leading to some of these
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declines so alphabet, and because of that 8% decline in the shares, we have now shaved roughly $112 billion off the market value of alphabet in one day that's how big of a deal it is. and for context, $110 billion is roughly like losing the entire market cap of a block rock because of this move today >> because they couldn't answer what do the new discoveries of the telescope -- >> i will say some traders and investors found it underwell ming, the presentation there several fed members are weighing in as inflation comes down john williams says any future rate cuts would be in response to lower inflation while the fed governor says the strong january job gaines indicate a soft landing is still possible
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and my next guest is sandy good to see you. welcome. >> thank you, kelly. >> so this -- all right. are you playing let's call it desperation offense here kind of on-sidekick, let's scramble and hope we can recover and kind of come back before the game ends, or do you truly think that people who are bulls have a decent shot at a decent rally here >> reporter: in the super bowl, we saw one of the better onside kicks in history so i don't know if i would go with that. but basically, we're this that seasonally strong period for the market that runs november through may. last year was tough, down over 30%. value down 2%, 3%. so everybody was hiding in large cap dividend value stocks. we just think you ought to be fishing in the growth pond, and basically last year, the market really discounted the future rate hikes as nasdaq and tech stocks tend to move.
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i think that showed up eight hikes later, here we are so i think the market is an amazing discounting mechanism. it's telling you going down to a roughly 365 or whatever we are today, rates are going lower over the long run. so we feel optimistic that we can buy growth stocks and find some discounted names. >> and the value is a crowded trade now. people should look at growth and technology you focus more on small-cap side of things. would you extend that to mega cap theoretically speaking >> yeah. i think it's going to be one of these years that active managers can do quite well. you can see the difference with microsoft and alphabet i think it matters we're looking at different earnings coming out. i think people have really got to peel back the onion and focus
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on picking individual stocks but i do think, in general, growth should outperform value in 2023, which we have seen already this year. >> it makes you wonder with the insurance companies, what an amazing trade, all-time highs. but are these conditions about to reverse >> so that's the big key right now, to sandy's point, we have seen a huge amount of outperformance in those growth names, the ones that got shuttered in 2012 -- or 2022 if you look at the reasons why, there is a muscle memory factor, possibly at play here. forthe better part of 10 to 12 years, since the post great financial crisis, there's been this reaction to want to go and buy mega cap, large cap technologies and media type telecom stocks so what you are seeing is this falling back i'm not going to call them bad or good habits, just habits.
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i mean, tesla shares were up by 13 out of the last 14dyes. it's a big momentum trade right now. if it were to keep going, it would need more fuel fundamentally speaking >> do you think the growth has already had its big kind of snap back rally here to dom's point >> i think a lot of those mega cap growth names certainly have. look at the valuations on some things it reminds me of the stocks back in the '70s where you can have amazon continue to have higher earnings and have the stock go nowhere for five, six years. i would rather be in smaller or mid-cap names with the ability to outperform. >> we just had a ten-year note auction that went quite well with these higher yields let's get to rick with more details. >> yeah, once again a stellar auction. i'll give you all the nitty gritty
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35 billion ten-year notes. the dutch auction yield, 3.613%. it was trading around 3.64 lower yields, higher price if you're selling securities, high prices. nirvana, isn't it? the metrics are stellar. 2.66, the best since february of last year. 79.5 on indirect seriously, i have a 20-year database there's nothing close to this. that could be a long time big in terms of indirect bidders. and if we look at the direct bidders, it's the only fly in the ointment but dealers at 5.4%, i've never seen a smaller amount. so the buffet table is cleared by investors, as dealers took back hardly any. we dropped very quickly to 3.63, 3.62 and change.
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all i can say is that who would lend uncle sam their money for ten years for this yield i don't see a lot of hands going up however, if you saw rates were most likely going to be going down over the next year or so, maybe this is what you would buy to see so many auctions. this one included, lately where the demand is so strong, we could tell investors i don't think they're on the same page as the fed just my opinion. back to you. >> thank you, rick dom, your reaction >> there was a point in history when a lot of folks looked at that indirect bid, 80% or roughly thereabouts, that's huge, but that's a proxy for foreign central bank buying. so if there is, to rick's point, this idea that rates are headed lower, there might be a large, very large possibly sovereign institution alibiers who are finding value at current levels. >> think about the japanese, that's a big source of the discussion sandy, are you in the soft landing catch in general
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>> yeah, i do think we have a soft landing in the third quarter of 2023. i might be a little more defensive as we get back into the third quarter of the year. so i'm more of a soft landing. the jobs numbers are two strong. 1.9 jobs available for everyone looking. it just seems like things are still doing quite well it just shows you people are looking to lock in those low rates. there is no alternative to equities, now there kind of is versus the 1.6% yield on the s&p 500. now you can get a decent yield looking up ten years so interesting >> i just want to mention some of the stocks you like what would you say to the argument that it always looks like a soft landing at first you know, just because we see a slowing doesn't mean we're not going to face a sharper fall, especially if the fed keeps hiking here. >> powell has to be so careful
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he has to watch out for inflation, and just not send us into some deep recession so the worst would be if he kind of cut too soon and all of a sudden we have inflation comes back, right? we have gone from 7.1 to 6.5 from november to december. imagine if inflation went the other way. so i know he has a tough balancing act to do. but hopefully we're in the final stages of what his rate hikes look like. >> dom, final word >> if you want to look at that soft landing scenario, there's a number on wall street taking down expectations for a recession. >> the day before, only 25% odds okay we'll leave it there sandy, dom, thank you guys very much let's turn now to the big earnings story of the day. disney up after the bell the only dow component to report this week, and the first report with bob iger back as ceo.
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shares are up about 12%. my next guest sees the stock going to 130 le welcome to both of you so what is the expectations this afternoon, high or low >> i think they're pretty high as always, there will be a lot of attention on the performance streaming, particularly around disney plus, and how much with the price increases, as well as getting to profitability in 2024 and an update across trends in the theme parks, and whether or not this strong momentum we have seen could be sustainable, even with some pockets softening across the consumer. that said, we expect results following behind bob iger's return and the proxy battle. so a big focus on when is the
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true earnings power? and to me, most importantly, what does bob iger think about how ayes, sir savely disney has flexed its pricing power over the last year. so a lot to listen to, particularly it's hard to imagine disney will not have a stronger path ahead. >> julia, as far as i'm concerned, are they or aren't they a sports company? in other words, what is the future of espn what are some of the strategic alternatives and how much is bob iger likely to worry about this as being one of the main ways that he sets out his vision for disney at this point >> well, i think that this earnings call is going to be much less about the actual results of this past quarter and much more about the restructuring that iger indicated was in the works right after he took the helm as ceo again, he appointed some
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senior leadership, including christine mccarthy, allen birdwin and others, and these are the people to help him restructure the company. in terms of succession, does he take any of these four people and put them in a position that is like a coo position that would set them up to potentially succeed him? i think there's a big focus on succession from investors, as well so that will be a key area of focus. when it comes to the road map for the future, espn, as well as hulu and what he does with those apps are in the spotlight. so i would look there, as well and then this comes against a backdrop where analysts expect disney will have fewer subscribers than last quarter because of the price hikes they implemented. >> it's not cheap. do you see disney going to $130
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because of or in spite of nelson's involvement >> i think in spite of it's important to keep in mind that management already has set out a fairly attractive road map to improving things like putting more power into the content makers, focusing a little bit more on cost cutting and even thinking about the theme parks, trying to figure out how to improve the guest experience over there. so i think nelson helps, again, certainly maybe an accelerator to certain initiatives but the company already has its people and they're doing everything they can and they expect to hear more after today. >> what do you want them to do with espn? >> i see no reason to separate it we're in the very early days of exploring the full potential of
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what sports streaming marketplace could look like. >> let's put it this way, it's not about the merits of espn itself, but if they can offer that in exchange for owning hulu outright, the art of the deal here, should they do something with this leverage they have >> i think the leverage profile is fairly manageable, especially as we see losses start to abate and next year hopefully breaks even and then profitability. so i don't think they need to step back from screaming whatsoever i think it's more of a matter being smarter with streaming, making sure they're improving the cost structure and being a little more flexible and whether or not it has to all good towards the flagship disney plus service or can they be more creative in monetizing other pockets. >> i julia, quick last word.
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>> it's interesting, because iger's predecessor lowered expectations for disney plus subscribers but said they would achieve profitability by 2024. so there's a lot of focus about the cost and investment in espn, does he do investment in content for streaming across the board, whether it's for hulu or disney plus >> guys, we'll leave it there. thank you for your time. coming up, there's a gold rush happening over artificial intelligence, but gowe'll look the divide and what it means shares are down about 8% and we're about 2/3 of the way through earnings season, but plenty of names on deck.
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we'll get you set up for that. as let's get a quick check on the markets. red across the board the nasdaq down 1.3% dow only down a quarter percent. back after this. plates. plates. plates. when you add price drop protection, expedia pays you back if your flight becomes cheaper. so when you go searching for all the best plates, you'll always know, you found a good deal. i'm so glad we did this. i'm so glad we did this.
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welcome back to "the exchange." ai dominating the headlines this week, and it's only wednesday. on monday, google revealed its answer to chat called bard and microsoft held its event yesterday, saying bing web browser and edge will get just be dates it's a very different story for google, down 8% today, getting slammed after its chat bot gave a wrong answer in its first public demonstration today >> while everyone is worried about the implications for education here, my next guest says even there it could have huge market potential.
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let's bring in our guests. quite a pairing, steve welcome to you both. welcome to the show. >> thanks for having me. >> i think people will be very interested to hear you're not out here to demonize this technology from the start. why not? >> well, i think it has a ton of potential, folks are talking about how it can write essays for students, and the education system will have to adjust around there folks are trying to make text-based water marks, but they're easy to get around but it also introduces a lot of opportunities. you can prompt these large language models so they can be a writing coach, a tutor, they can have a dialogue with you so i think it's going to unlock all sorts of new opportunities i experimented with my daughter, where it co-write a story with her. at some point she wanted to talk to one of the characters i said why not and it let her talk to the character.
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this is the type of thing that would have seemed like science fiction even a year ago, but it's possible. it's an engaging way to do anything from writing to math to science to anything you want to work on. >> those books over your shoulders there, what is their future in this ai education world we're talking about? >> i think they have a very good future in this ai educational world. we have a high school that has the students doing a lot of reading of a lot of the books i have behind me right now we are already experimenting with ways that these large language models can actually have a conversation with you about these classic books you are reading. historically, you write a one-dimensional book report, but i think there's almost a way you can have a book club with it there's still a lot of
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experimentation. >> makes me think the real threat is to the teachers and why the educational system is freaking out >> once again, there was a fear, on demand video or personalized exercises are a threat to teacher. if i had to pick between an amazing teacher or amazing technology, i would pick the teacher every time but this allows the teacher go up the value chain so the same thing will happen here these bots, these large language models can act as a teaching assistant. we started experimenting to create lesson plans. teachers spend half of their time creating evaluation for students and if it can about as an individual tutor and report back to the teacher, that's good for everyone >> the giant asterisks to this conference, steve, if you ask google's new bard what new
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discoveries from the space telescope can i tell my 9-year-old about, in their promo they ran, they said it was the first images of exo planet but it turns out the first images of exo planet were taken in 2004. so if i asked them this question, sure enough, they came back with right answers. so the point is, somehow these technologies have to be close to perfect if they're going to be deployed he's not just talking about facts and information, but obviously if the facts aren't reliable, that's going to be a huge issue >> we're talking about education now. but keep in mind to sal's earlier point, on the product side, google and microsoft want this to touch their technology google is huge in the classroom,
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especially at the university level. but also in, you know, k-12, as well so kids are using this technology it's going to be available to them through google docs and microsoft, of course so what i'm curious to see when they finally unveil that, what does it look like in microsoft word how does a teacher know that their students are writing an essay in google docs with their own brain or using bard to write it for them? that will be interesting do they flag it, highlight it? what kind of connotation or marker is there going to be to make sure this doesn't happen, to make sure -- like to sal's point, it's a tool, not a replacement. >> sal, do you want to comment >> absolutely. you'll see the emergence of new applications that put in those safety mechanisms. so the students use it in a large context like this, and parents and teachers see the
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transcripts so they can use it if the students used it to write an essay or just help them write the essay. ideally, you set up the prompts like this, so you tell it make them do most of the work but you are a good writing coach or whatever else if you do that, this is going to have a lot of potential. these things do hallucinate. that's the term for what they do when they make up facts. and i don't think they're going to go away in the very short term i think in the coming years, the benefits of them are going to outweigh the negatives for learners >> i appreciate the point. sal, we'll leave it there. thank you for time appreciate it. still ahead, if you think wall street banking fees are outrageous, wait till you hear about the lawyer fees working on ftx's bankruptcy some eye-popping numbers, next .
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will you make something better? create something new? our dell technologies advisors can provide you with the tools and expertise you need to bring out the innovator in you. welcome back we're off the lows, but still in the red today. the dow down about 100 points, and the nasdaq down 1.4% the weak spot is what we were just discussing, google's decline. let's get a check. alphabet with an 8% drop after they unveiled this product, bard, which is giving wrong answers about the space telescope. investors are nervous, say thing is a lot at stake with these ai races, and microsoft is green on the session. apple and amazon down 2%
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the cybersecurity names, they're higher helping to boost other names in the space here, including the cyber etf ticker bug, b.u.g. see what they did there? still ahead, we have the action, story, and the trade on three more names on deck and my next guest says one of these stocks will never reach its former highs the name and what to watch in all three reports, next in earnings exchange.
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welcome back more than halfway through earnings season, but there are key names set to report. let's get to earnings exchange on three names on deck right now. first up is pepsi reporting before the bell tomorrow on base for their best week since december they have beaten the street on revenue for five straight years. that's quite a streak. danielle shea is director of options at simpler trading
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i was just so excited. welcome back, danielle, welcome back >> thank you, kelly. so great to be back. >> great to see you again. dom, pepsi, what are you watching >> so grab bag, it's going to include doritos, fritos. pepsi hit a record high in december down about 8% from those levels right now. as for what to watch for besides the headline earnings, it will be about that impact of inflation on profit margins, whether or not they were able to raise prices enough to offset those. and the brand mix, what consumers are tilting towards. look for about $1.65 in earnings per share. $26.8 billion. and by the way, kelly, if you look at the way that the stock is trading right now the options market is pricing in what should be a 2.25% rise or fall in the shares
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that is slightly more volatile than the last eight quarters where, on verage, the absolute gain or loss, is about 1.5%. so you will want to watch that for sure on pepsico. >> danielle, a place of calm during these turbulent times do you hike the stock? >> yes, kelly, i do like the stock, especially after the moves that we saw over the course of january. we're going to see a rotation into these names, and pepsi is a great opportunity right here primarily because we have seen pepsi fall over the course of the past few months. that is going to provide a really nice buying opportunity i have a key area of support on the weeky charts between $160 and $170 a share i like for a buying point if we can hold this price point, continue to have positive earnings, just like they announced last quarter, we can see the shares trade higher, back up to new all-time highs.
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>> how do you feel about the overall market when you mention this trade >> well, when you look at the market here, we saw the typical january rally. something that i like to trade every year, this year it was incredibly strong. typically, after that, we usually see a pullback, especially in tech stocks. and we usually see a rotation into consumer staples names. i think the charts are setting up perfectly for that. every year is going to be different, but i like looking at a move in the consumer staples names here, especially because we will see earnings in retail coming up quickly. >> interesting people are talking about are we going to get this reset after the run we have had? let's move on and talk about this firm, this is what makes people nervous, a 72% rally to start the year, but still down 75% over the past year it's beaten revenue estimates
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for eight quarters, but won't post a profit until 2025 kate rooney has more of this story. >> if you look at year-to-date, down 75% or off 75%, but the thing to watch with affirm is the take rate, the revenue less the transaction cost key metric for analysts out there. it's overall activity on the firm, how much people are taking out those loans, how much money is move ag cross the platform. partnerships are big they had this amazon partnership that expired a couple of weeks ago. i'll want to hear commentary on theco. and then peloton, during the pandemic, was a huge boost for the firm they talked a lot about moving away from that and diversifying
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the partnerships there and competition, you can't forget, apple moving into buy now, pay later you have all the banks so investors want to hear how are we going to build a moat here >> i'm not sure if this one or robinhood not going back to the previous highs drumroll, please >> honestly, both of them. when you are looking at affirm, it seemed like a great idea in the beginning, buy now, pay later, inflation, people needed a way to buy goods and pay later, right but everything that kate mentioned are providing huge overhead resistance. at the end of the day, there's so many different reasons why it could fail when i'm looking at the chart, to me, it has to be a short. i will say, however, though, that this stock does have high short interests. so you have to be careful with it on earnings, it can be incredibly volatile. sitting at the 16% price point is not a great enry.
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but if we get a move up to the $25 price point, that is a spot i would rather get short at the end of the day, this is going to keep going down, even if they can manage to have some sort of positive things to say on earnings. >> sure. that leads us right into robinhood. they have had a decent start to the year, as well. they're 36% off the 52-week highs, even more from the all-time highs kate, what are we expecting to hear about this company? >> so the slowdown in retail trading is expected. they talked about that in terms of guidance. a lot of people went back to work, it has returned a little bit this year. but the traders are doing less they're less active than they were during the pandemic investors are looking for revenue diversification. they want to see robinhood move away from those trading fees
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and things like the boring side of finance, savings and retirement accounts, growth on that side and subscription revenues, something traders will be looking for revenue per user, and then cost cutting. they talked a lot about austerity and moving from growth to being a little more conscience of what they are spending and then the guidance overall. i mentioned the rebound in some of the mean stocks, in crypto. that may bode well for the current quarter. it will be interesting to see how much of a boost that can provide. >> danielle? >> kelly, i like this one for a short, as well but you want to be a little careful on earnings. because it's rallied so well going into the start of the year, that will provide a better entry point. as long as it stays below $15 a share, i want to look at it to
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the downside i think there's a significant amount of not just overhead resistance on a technical perspective. but there are just so many issues with this company, between the retail trader bust, bitcoin is now rallying into resistance yet again i think their crypto portion is going to continue to suffer. and the payment for order flow issue with a big problem for robinhood. they will have to figure out how to make additional revenue that was one of the most important aspects of their business so looking at the stock, i like it to the downside >> like it to the downside danielle, are you sleeping >> here and there. with a 3-month-old, it's challenging, but it feels great to be back >> i love it thank you both very much today kate rooney, danielle shea for this edition of earn ago exchange the fed governor is speaking in arkansas.
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we can bring you some headlines. he's saying the inflation fight is not over, and warning rates may need to be higher for longer as inflation remains elevated. he thinks the fed needs to keep tighter monetary policy for some time his outlook won't change until we see moderation. he said last month that we need six months of improving data strong employment gains are putting upward pressure on inflation. he expects the u.s. economy to continue growing modestly this year looking for reaction across the markets. the two-year, about 4.46 dow still down about 117 points, and we'll watch it for further reaction coming up, if you thought the loss of billions of dollars from ftx might be the most eye popping sum in that bankruptcy
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welcome back today's hearing in the ftx bank resu rupt si was canceled this morning. let's get the latest >> the judge did cancel that hearing today, but he issued two orders that clear the way for subpoenas to be issued to sand bankman freed, family members and others, as the bankruptcy goes forward we are waiting for word on whether the judge will appoint an examiner to investigate the ftx collapse the u.s. trustee wants an examiner in place, but the new ftx ceo is opposed, arguing that the examiner in the enron case wasted creditor money, spending $90 million investigating enron, producing shallow results. >> well, meanwhile, there's a lot of focus on the lawyer fees
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in this case in particular what can you tell us there >> we have new filings, and it sheds light on how much the lawyers are billing as they resolve all this five law firms are requesting a total of $20 million they conducted in the month and a half between the november 11th bankruptcy and the end of 2022 more legal spending in that time frame is likely to be disclosed in future filings. sullivan and cromwell, the lead law firm for ftx, is billing $9.6 million just for work between november 12th and november 30th. ftx ceo john ray billed $674,000 between november 11 and the end of the year. and to put those numbers in some perspective, the enron bankruptcy didn't break the billion dollar mark in fees, but the collapse of lehman brothers was the most expensive bankruptcy in history, with lawyers and others charging an
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astonishing $6 billion in fees so we have a ways to go er here before ftx fees enter that record territory >> thank you very much still ahead, the average monthly auto loan payment is now more than $700, and demand remains strong we'll talk about the impact on auto sales and when dealers will maybe bringing in incentives agai tt'nen,has xt conventional results.delivs at allspring, we break away with purpose. harnessing data-driven insights 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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welcome back, everybody. what is going on with the auto industry these days? supply chains going back online. rates are climbing we had overbuying during the pandemic and now what? inventories are expected to return to prepan democratic levels by the end of this year it could push into 2024. as i mentioned, higher loan rates are a challenge in terms of affordability let's bring in george. they do wholesale car actions and connect buyers and sellers
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on the used auto side. you're here with me in studio. thanks for coming in >> thanks for having me. >> what are you seeing in terms of tightness or weakness in the market overall >> i think the year has started out in a positive way. a bunch of third party data sources, what we're hearing from dealers, january new cars sales seem to be up year over year >> really? >> you're looking at the new car segment, supply is starting to come back. that's been a big hole in the market problem that we needed to solve. as oems are short of supply chain problems are starting to move on. we're seeing them shore up the year for used car sales are slight lu up >> how is that -- let me back up one of the most shocking stats from the pandemic is how much used car prices rose they doubled it's hard to tell what is going
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on are pricing coming down? what does it mean for your business overall right now >> it's fascinating. before we talk about acv, let's look at target customers franchise dealers. target dealers they are versdiversified busines with supply coming in from new and used if a consumer has lower credit, they have banks and cars to fill that gap if they have consumer who qualifies for a package or offer, low interest rate offer, that specific for the consumer >> ford and gm >> thinking about what the dealerships have, many of them being large groups holding, many different brands they have different products that helps >> what is the mix now versus a
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year or two ago? >> new is slower prepandemic year over year, it's slightly up up about 5%. that's low, compared to us in '19. we're not back to normalized volume of '19. just the positivity of year over year being slightly up, among all of the other things, it's positive >> there has to be an organization going on in the used automarket. do you see prices falling? do you have anyone a stretch to buy a used car they wanted a new car but bought a year or two old, what is going to happen there? >> we've seen consumer expectations will need to be moderated. dealers want to buy these cars what we're helping is helping dealers and consumers really on
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expectations what's the condition asset what city is that car being traded in at we're seeing cars on the platform travel 400, 500 miles per vehicle, trade at one dealer and it's going 400, 500 miles to another market >> wow you look at normalization. what is the condition of the car and where does the car belong? what part of the country and does the dealer have the tools and services to make sure they can put together the trade with the consumer. >> the question on my mind, are we going to see in the automarket, the shortages turn into a glut. we've seen this elsewhere, where we've seen in the energy markets, look what's happening with natural gas semi conductors, from shortages to gluts on the offside, are we going on shortages to gluts, overproduction too many cars and not enough buyers and price declines? >> most industry analysts aren't predicting that with this year
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let's think about why. we are coming off of a massive shortage in supply it's going to be a brand by brand specific hondas and toy owe tass, we don't have enough of them. you see the value very high. there's only a few brands where we start to see new age inventory start to dream up, across the franchise dealers >> can you tell us who they are? >> i would rather not. >> tesla is outside of the ecosystem in some ways because they have the direct-to-consumer model. is there anything you can glean on what demand pane sand supply like there >> one thing i can share, tesla is in the media quite a bit. tesla fits with a consumer that is okay with a full electric vehicle. full price tag and has the secret scores when
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we go to the tesla website check, check, check. let's think about consumers going to a franchise they may have low credit they may need a specialized loan they may not want an electric car yet. we see hybrid plug-ins more popular than pure electric >> that's good news for toyota they were in pursuit of that model. we have to leave it there. it's great to get a pulse check on a difficult market to penetrate. thanks for your time and coming down we got the trades coming up on "power lunch. and tyler is getting set for that i'll join him on theth se ts icbreak.id ct age to see some old friends, explore new worlds, and to start screening for colon cancer. yep. with colon cancer rising in adults under 50, the american cancer society recommends starting to screen earlier, at age 45. i'm cologuard, a noninvasive way to screen at home, on your schedule. and i find 92% of colon cancers.
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