traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. welcome to "power lunch." alongside kelly evans i'm jon fortt. stocks are jumping today as markets react to the fed decision and the chairman's press conference. yields tumbling as markets seem to think the fed is done hiking. we'll break down what that means for stocks. look ahead to the next big event, apple earnings. plus, rising rates have made buying a house more expensive quickly. what that's done to the real estate market and discuss the battle over broker fees. >> and that's a juicy one. let's get a check on the markets speaking of juicy, the dow is up

503 points. apple reports after the bell, up 1.5%, while the s&p is 1.75 and the nasdaq up 1.6%. all of this on the back of lower bond yields. look at shares of starbucks after sales and profits beat estimate, up 11%, guidance above the current estimate that's been a rare thing lately. the ceo saying demand remains strongp and the pumpkin spiced latte is helping boost sales. yields, a quick check on the 10-year. where we see that yield dropping down to about 4.65% today from a recent high above 5%. investors are betting the federal reserve could be done raising rates this year. what's driving the action today? it's that, the dow and s&p both pacing for a fourth straight day higher, the nasdaq on pace for the fifth day higher while we see not just the 10-year but the 5 -- maybe the 2. hitting its lowest level.

the 2-year lowest level in two months. a once in a generation opportunity except the magnificent seven stocks, richard bernstein, chief investment officer and our own steve liesman. welcome to both of you. rich, all right. so i guess you're not super excited about apple after the bell then? >> no. that's not going to have my attention. i think, look, i think there's a couple really bullish things going on today. number one is that small stocks are outperforming large stocks. in your opening you did not mention the russell 2000. the russell 2000 is outperforming the mag seven quite a bit today. outperforming the s&p. i think that's a very bullish sign because we know that profits are starting to reaccelerate. the market is starting to pay attention fundamentals again. second thing i would point to that's bullish is non-u.s. is out performing u.s. similarly based on fundamentals.

it's quite bullish. the third thing cryptos are under pressure. nothing fundamental about the crypto markets and the fact that we have stocks based on funds going up on a day when cryptos are going down. these are fundamentally based observations. i think that is bullish. >> it's not -- steve, i'll turn to you because i hear rich saying it's not just the back of a, you know, fed pivot or anything like that. i would add, though, it does seem, steve, like people are running off with the conclusion that they're done hiking here. >> yeah. you know what i like about today, kelly, is sometimes the market on fed day or the day after the fed is like a college kid that wakes up in the morning and says, wait a second, what did i do last night? the market is not doing that today. sometimes they'll rally into what i think is a hawkish thing and be like what were you doing and reverse it the next day or sometimes the opposite of that. the follow through i think is interesting. i think there was a little bit

complicated but my take on powell i asked him the question, is your bias still the hike, and he said yes. he went on in the rest of the press conference to suggest to me, at least, that they're really in neutral. when he said the risks are becoming more two-sided. doesn't mean they won't hike. the question, do they have to be convinced to hike and that's where i think they are right now as opposed to being convinced not hike. that would be a bias to hike. i don't think they're there anymore. i think they're at this place, if the inflation data deteriorates, doesn't cooperate, if the economy doesn't slow down, yeah, they'll hike again. i'm not alone. that's the way the market is trading. they don't have much of a probability at all right now on any kind of hike going into march and look at the probabilities of cuts, they're starting to get a little bit bold there. june 58, 60% in there. may not so much.

then they start to get bolder. that's where the market is right now. in between, not thinking the fed is going to hike, not thinking they're going to cut, waiting to see. i think the bias may be in the middle right now. >> okay. somewhat encouraging for folks who want to be long equities, but rich bernstein, the russell, which you mentioned, is up 2% so far today. the russell 2000. it has been punished this year and had been at lows of the year before now. how safe is it? how patient do investors have to be prepared to be if they're going to be excited about the opportunities here? >> there's two ways to think about it. short term and the cyclical opportunity. the profit cyclical is troughing here in the united states and as long as the profit cycle accelerates that argues for more cyclicality and we know small caps are more cyclical and that's been scaring everybody, are some of the debt issues in small caps like that.

those are cyclical concerns. if corporate profits and cash flows heat up here, those concerns will subside. and so i think there's a huge cyclical opportunity here in terms of the broader market. longer term, though, we know that long-term returns are defined by valuation. the russell 2000 is less than half the valuation of the magnificent seven. so that would argue that longer term, small stocks should outperform the magnificent seven and that's very likely over the next five to ten years. >> what about, rich, the regional banks? the kre has been in really rough territory, was under 40 for a while, and now it's pusherked u almost 5% today, concerns about commercial real estate, particularly office, is the good news or the good news extend you think to the smaller and medium sized banks as well? >> jon, it's a little bit funny, and i'm sure steve would allow

ag -- agree with me on this, how the fed injects monetary policy into the economy. they either try to slow down or accelerate the banking system, they want the banksz to expand or contract their balance sheet. what do we see? we see a tightening session and marginal banks, smaller regional banks got in trouble. there's nothing unusual about that. that's what the fed i don't say wants to have happen but the effect of monetary policy. i don't believe the fed is about to ease but the more that one believes the curve is going to resteepen, or maybe in the future the fed is going to ease, the more the fed wants regional bank balance sheet and large cap balance sheets to expand in the banking system and want to stimulate the banking sector. the more you think the fed is going to be on the side of the banks, the more you want to look at that. i'm a little kind of skeptical of that right now. i think some of what steve said in terms of the bias is still the tightening. i think if profits heat up,

employment will heat up and much harder for the fed going forward. if one believes the fed is going to ease, you know, small marginal banks would make a lot of sneens sense. >> what if profits are cooling down, with some of the fourth quarter projections and guidance that has been coming in. >> i can tell you it's not -- people tend to look at the absolute dollar value of earnings and really the important thing to watch is the growth rate. the growth rate troughed probably around mid year to be honest, and has slowly been accelerating. it's negative year on year, but by our forecast at our firm we think we're going to go from minus 10 to 15% s&p growth to plus 10 to 15 during 2024, and so if that happens, obviously, cyclicality will be beneficial in a portfolio because this sounds strupds, but it's true, the cycle is determined by cyclicals. >> we'll leave it there, and i'm

not going to say it about ism manufacturing. they tell me we have to move on. >> okay. >> i want to hear about steve's collegial escapades -- >> we'll leave it for another time. steve liesman and rich bernstein, we appreciate it today. to extend liesman's metaphor if the equities have continued to party, today post-fed, yields have been mixing the punch. for more let's get out to chicago and rick santelli. >> yes, jon fortt, how do you make a 4.66 yield in treasury 10-year look cheap? start out in an intraday high of 5.02. that seems to be the case. look at a two-day of 2s and 10s on top of each other. if you looked at where the 2-year was yesterday before jolts, it was 5.05, it's 4.97, down 8 basis points. at the same time look at a two-week chart of 2s and 10s, yesterday at 10:00 eastern we were at 4.90 on a 10-year, which

is at 4.66, down 24 basis points. so we've had huge moves on the long end and as you look at a two-day of the dollar index it seems to be following the drop in yields as us falls from rather lofty levels above 1.07. and the notion of how this affects the future, well you can read it easily is to 10s. ultimately the federal reserve may have been the catalyst but what's going on with long rates seems to be following how much it costs to services our huge and ever-growing deficits. jon fortt, back to you. >> rick santelli, thank you. kelly, do you like apples? >> i do. honey crisp. >> let's see how we like these apples. the company set to report its fourth quarter results after the bell while the street is expecting a decline in revenue. investors are closely watching

the latest on iphone sales and how demand is faring in china. the next guest downgraded to sector weight last month and continues to be neutral. joining us now is brandon, senior analyst at key bank capital markets. brandon, do revenues really matter that much to apple now, or is it more about vertical integration driving loyalty and profits? what would get you off neutral? >> i think the bears will tell you that it is about sort of the user base and user growth, but i think revenues matter. from our expectation, you know, we see apple setting up for sort of an inline quarter, but when we see various shapes of hockey sticks for growth, that's where it causes alarm from our perspective. we think from a guidance perspective that's where the risk is for the quarter. >> how much of this is hanging on china specifically, the post-covid boost in that economy, didn't really materialize the way many hoped,

and right now, there's a resurgence in anti-u.s. sentiment. tim cook was over there, probably trying to smooth some things over. should we watch that line as well? >> it's not only chinese sentiment shifting back towards some nationalism, it's competition, right. huawei is launching a new phone and on our estimates huawei is going to produce 10 to 11 million phones this year. next year they're supposed to produce closer to 60 million. it's hard to imagine apple from a competitive landscape in that perspective. >> one area of focus, too, as we know that the top line plight not be anything to get excited about, profit margins, can we get excited there or no? >> you know, really depends. this is an overall story where services are growing faster than the hardware is and services are higher margin. you can expect with some softness in services, gross margins will be just fine.

>> right. just fine. my question would be what ignites the -- it may be top line growth enough if we could bring that back, but what would the growth metrics be that would re-excite investors be? >> the consensus expectation going into the december quarter is for about 5% growth. that's up from a minus number in their fiscal fourth quarter. so i think they have to get closer towards that expectation, but from our perspective, we see apple accelerating, only just barely back to positive growth. there's faster growing companies that trade at cheaper multiples from our perspective. at least at this point on that's part of the reason we're sector weight out. we don't see the value in the stock that's this low growth with that high of a multiple. >> all right. brendan, for now, we'll see what happens after the bell today. >> thanks for having me. coming up, huge moves in the

media space. look at roku up 30% to have its best one-day -- third best one-day move ever i would say and green flags, ferrari up 6%, raising guidance and seemingly navigating around macro concerns. details on both of those names when "power lunch" returns.

this is american infrastructure, a prime target for cyberattacks. but the same ai-powered security that protects all of google also defends these services for everyone who lives here. ♪

welcome back. we have big movers in the media space today. most specifically, roku up 31% after better than expected revenue and guidance, even disney up more than 2% after announcing they'll buy the rest of hulu from comcast. warner brothers discovery up 8.5% despite finding itself in the middle of criticism. julia boorstin to break it down for us. i'm curious about the criticism, but start with roku, the biggest mover. >> huge mover here. i'm talking about a 30% jump in the stock after the company reported better than expected results after the bell yesterday, but the key thing here, kelly, the fact that roku not only beat expectations in q3, but guided to continuing an ongoing advertising revenue growth in the fourth quarter. i'm going to read you the key quote that i believe is driving all of these media companies higher. we had a solid rebound in video ads in the third quarter and expect the year over year growth rate in the fourth quarter to be similar. this idea that the concern that

we've seen for the social media stocks that perhaps the conflict in the middle east would be causing a pause in brand spend. that's not happening when it comes to the tv ad market. and the overall ad economy is continuing to strengthen. key piece of that here. >> all right. interesting. next up, we've got disney, buying up our parent company comcast share of hulu. not a surprise. this is a weird process where in the next four weeks they deliver $8 billion and then argue whether they owe more. what incentive for bob iger to say we'll give you a couple billion more. this is going to end up in arbitration, right? >> they're contractually obligated to. think about $8.6 billion that disney is paying comcast. it's like a down payment. they made a deal years ago that set this sort of the base price that this asset would be worth. $27.5 million. the base price for what they

would pay for hulu. this is disney paying the base, their persocentage of that base price. they agreed to have their lawyers and bankers figure out how much of a premium to that base price they were going to have to pay. the bankers and lawyers are working on that right now and there is an expectation there will be some sort of premium paid. >> why? >> rich greenfield -- >>because that was the deal that they arranged and the deal they came to. >> valuations were so high back then. i mean, isn't bob iger going to say, times are different. look at what's happened to media stock and our stock. >> valuations were high then, but look at the fact that hulu has grown dramatically since then. specifically when it comes to the user count. rich greenfield, he is saying that $35 billion seems like a fair starting point for these negotiations, so there is a consensus there would be a premium paid. the question is how much. the other thing that's

complicated here when coming to valuing an asset like hulu, we have never seen a huge streamer like this be sold outright before, and you also have to consider how much hulu's value is tied into the fact that it's part of this sort of bundle that disney has put together with espn plus and disney plus as well. but we're looking at these analysts saying sort of look in the $35 billion range and look, the fact that all of these streamers have reported so much growth in the quarter, we just had netflix beat expectations by a lot, now there's some optimism coming out of roku, that may impact how much this asset is valued at as well. >> the only thing they can do to get more leverage if they were not going to buy it. >> that ship has sailed. they said they're going to buy it. that's what the news about yesterday was about. >> exactly. let's move on to the final story, something i wanted to do, a wild story out of hbo, a new report emerging that the former president of original programming ordered the creation

of fake social media accounts to troll negative critics. what do we make of this? >> well, he acknowledged it today. he was doing a -- casey was doing a presentation today and said in the midst of the darkest point of the pandemic he was spending too much time on twitter just a handful of tweets he had gotten one employee to send it critics and not a widespread thing. he said it was a dumb mistake and sort of in the depths of pandemic -- >> did he just offer this up? did people call him out on it? did he -- >> this was reported -- this was all reported by "rolling stone," first reported by "rolling stone" and then sort of prompted him to acknowledge it in an event today that was previously scheduled to go through some of the highlights of hbo's programming next year. but the idea of a fake twitter account to respond to critics who were maybe criticizing hbo,

it's a lot of media noise. ultimately does not impact -- >> you don't think he would lose his job or anything like that? >> no. the fact that he acknowledged it today makes me think this is water under the bridge. the shares up 8% ahead of warner brothers discovery reporting next week and i think a lot on the momentum from roku. the fact that casey boyd is acknowledging it today as a dumb mistake means he's ready to move on from it and get to the result coming next week. >> we might be ready to move on. the employee they made tweet that stuff is suing and part of the reason it came out. >> that is how this came out. yeah. the employee -- so an employee sued saying that this employee had been pushed by casey to send the tweets, but then "rolling stone" picked up on the lawsuit which is how we get to this story today. >> maybe we haven't heard the end of this. job. for our audience right now, online the ad spend coming back

is probably the biggest thing. thank you. julia boorstin. coming up, a big opportunity for small businesses. amazon unveiling its first buy now pay later checkout options for small business owners. those details coming up next. welcome to ameriprise. i'm sam morrison. my brother max recommended you. so my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors, the garcias, love working with you. because the advice we give is personalized, hey, john reese, jr. how's your father doing? to help reach your goals with confidence. my sister has told me so much about you. that's why it's more than advice worth listening to. it's advice worth talking about. ameriprise financial.

power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley. with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley you can't buy great conversations or moments that matter, but you can invest in them. at t. rowe price our strategic investing approach can help you build the future you imagine. t. rowe price, invest with confidence.

that first time you take a step back. i made that. with your very own online store. i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first. godaddy.

shares of affirm near the highs of the day as it strikes a deal with amazon. writing this story for cnbc.com, amazon unveils buy now, pay later option from affirm for small business owners. hugh is here on set. is this a big deal or is this kind of the amazon effect of boy, they like affirm? >> it's a big deal for affirm for a couple reasons. if you recall in 2020 and 2021, there was all this overhype and what happened here, basically, the stock collapsed and still trading below their ipo price because peloton was their biggest anchor tenant and buying peloton, that business collapsed and they needed to find growth. they found it with amazon and shopify. those two together account for about 75% of the u.s. e-commerce

market according to wells fargo. doing this and really proving they have embedded in amazon, for instance, in this case, you know, in this deal the ad basically, approximately potentially $35 billion in total sales volume on the amazon platform, 6 million users you understand why they're up 18%. >> yeah. that's a big move. this stock off the highs though. it's come down significantly in re recent years. >> the affirm bears will say look at the impact on rising rates, look at the impact on defaults and the rise in defaults on their user base. there is, perhaps, the increasing appreciation by the analyst community that look, their default rates aren't that bad. if you actually looked at that, they're about 2 or 3%, which for essentially a subprime lender, is actually really fantastic. they've gone down this year in terms of default. so you're getting some reasons to kind of believe their story

because they believep and they profess that they built a better credit. >> they're an equivalent of a better credit card play for affirm. is there some kind of loyalty lock in, versus what they're getting from consumers? we tend to think of the mpl as a consumer thing, small business bigger spending loyalty play maybe that's different -- >> one of the growth drivers has to be their debit cards. that's one leg. the other happens to be the hardship, kind of -- looks as though the way they're going to win is potentially by embedding themselves in these other players. >> all right. hugh, thanks. we appreciate it. hugh sun reporting. >> to morgan brennan for the cnbc news update. >> hi, kelly. secretary of state antony blinken just left for jordan. he said tel aviv has a sfoblts protect civilians and the u.s. will focus on getting

humanitarian aid into gaza as well as setting conditions for a sustainable peace in the region. senior biden administration official tells nbc news at least 79 americans and their family members have exited gaza through the rafah crossing in egypt. the crossing opened to injured civilians yesterday after egypt, israel and hamas agreed up to 500 people may exit gaza daily. donald trump's son eric took the stand this afternoon into the $250 million civil fraud trial against the former president's family and the trump organization. he testified he didn't know anything about the company's financial statements but later acknowledged he was aware of them as far back as 2013 when presented with evidence. both of trump's adult sons previously said they relied on accountants to ensure financial records were correct. back to you. >> thank you very much. morgan brennan. still to come on "power lunch," going for brokers. a federal jury in kansas city finding brokers liable for

inflating prices as new york lawmakers are working to get high fees under control. we'll talk to douglas elliman about this. don't go anywhere. (birds chirping) go. and go and go and go. ( ♪ ♪ ) but what if you... stop? you work hard, it's time for a bank that'll work hard for you. everbank brings security and a guarantee that you'll earn a yield in the top 5% of competitive accounts.

going, that's what got you where you want to be. we're the partners for your next move. everbank. advantage, you. people are excited about what ai will do for them. we're excited about what ai will do for business. introducing watsonx a platform designed to multiply output by training ai with your data. when you watsonx your business, you can build ai to help coders code faster, customer service respond quicker, and employees handle repetitive tasks in less time. let's create ai that transforms business with watsonx. ibm. let's create.

nice footwork. man, you're lucky, watching live sports never used to be this easy. now you can stream all your games like it's nothing. yes! [ cheers ] yeah! woho!

running up and down that field looks tough. it's a pitch. get way more into what you're into when you stream on the xfinity 10g network. welcome back to "power lunch." the real estate market is dealing with the host of headwinds especially as mortgage rates hover around 8% and while the high end is holding up better the lack of inventory is creating a lot of challenges for home buyers. here to discuss that is scott dirken ceo of douglas elliman joined by robert frank. welcome to both of you first of all. thanks for coming in. robert, set the scene a little bit here for us. >> so scott, the number that popped out for me is the october sales contracts. if you look at apartments sold for 10 million or more it was triple than last year. it feels like a stagnant housing market. the top is always sort of different from everything else.

why is that more so now? >> well, i think the $10 million market is strong because that market is not affected really by anything that's going on whether it be interest rates or lack of inventory. >> they're all cash buyers? >> all cash buyers mainly and they buy when they need to or when they don't. there's just -- a different kind of buyer. in manhattan we have so much new development that hasn't been sold before, they want brand new. >> i want to ask you about new development because that's been fueling a lot of sales for a lot of this year. if you are in a 3% mortgage you don't want to put your house on the market. because of the lending crisis we're in, there's not a lot of new development in the pipeline or getting started. they can't get financing. is that going to run out next year and that's that going to look like for the market? >> i think you're absolutely right. a buyer might not realize that. and so -- >> there's not going to be supply. >> right.

so prices will go up again. without that inventory in that pipeline, i would start looking now. >> nice thing to be able to tell people is hurry up. can we ask you about this lawsuit about real estate commissions and was -- what was your reaction to this and what do you think the significance could be? >> i mean it certainly was a curveball in many ways. i've been licensed 30 years and i've been doing the same contracts and my agents and our buyers and sellers, we've all been disclosing everything that they pay for and we pay for -- >> what would happen, for instance, if they say, you know, whether or not that model fundamentally changes that in order to get access to mls, you have to kind ofp open things up that way and it's no longer exclusive. zillow is arguing it would be a huge benefit for them, maybe it would benefit the big technology players or something like that. i don't know. >> i don't see the benefit.

i think it washurt the housing market in terms of the sellers and the prices could drop dramatically. >> your stock is down on the expectation that broker fees, especially for the buyer fee, will be lower, therefore, income to douglas elliman will be lower because of this. is that the case? >> yeah. >> i think income for every agent in the entire united states. this is just not here. this is the entire country. >> income is going to what? >> if it does not win the -- if the peel is not won, yeah, you're right. whatever the listing agent will have the power and also being paid the commission. i think you can't just send buyers -- >> no, but earning 3% if you can find your own house online and go there yourself to pay a broker 3% as a buyer's agent doesn't make sense, right?

>> well you need someone to negotiate it for you. >> that's the piece that has always been tricky about the housing market. if i'm buying dinner on doordash, that's one thing. i know what i'm getting. i want fries or whatever. >> and then you get some surprises. >> but homes are the biggest purchases that most people make, and so saving a little bit on commissions versus getting the best deal you probably can and feeling like there's trust, i don't know where that factors in this decision. >> if you're going to go it alone you're going to pay more. you might not be getting the home you wanted. i mean, at douglas elliman we represent sellers and buyers. we've hired the best legal counsel you can get and we're going to fight this. >> let me ask you this, if you look overseas, even developed markets like the uk the average commission for a broker in the uk is 1 to 2%. here it's 5 to 6%. >> let's not forgot the uk doesn't allow a second agent to

come in with a buyer. it takes longer to sell because yo you're paying little commission. here we split the commissions. we've disclosed that. it's in every agreement. it's not like we deliberately did this. this is the way the business has been run the last 40 years. >> don't you think -- a lot of people weren't aware the buyer's agent is paid by the seller's agent. do you think more transparency is good for people to understand just who is paying what and representing what? isn't that a good thing. >> the transparency is there. you've all bought and sold. you see the sheetp and the final closing sheet. it's there. there's no secret. there's no hiding it. it's like this is a curveball. >> i guess my last question to you, what do you foresee taking place in your market over the next 6 to 12 months, whatever happens with broker fees, but in

terms of supply and demand in the economy. >> we are finally seeing the needle move in the right direction, so october for us was in some market 20s% higher than last year as well as for '19 and '20. it was one of those years that was phenomenal. we're seeing the market creep up and listings come on the market and sellers that were not wanting to give up their cheap money they had, finally decide to move on and we're being creative. i think there's a lot of deals out there right now and october for us was -- our last two weeks were incredible and closings in what we call written. >> we'll see if even moves in rates today makes november equally so. thanks so much for coming in. scott durkin and robert frank. still ahead, ferrari is racing higher. the luxury automaker shares surge after a beat and raise in

the third quarter. we'll get the key highlights when "power lunch" comes right back.

shares of ferrari are up 5% on a big jump in profit in the

third quarter raising full-year guidance. robert frank is back with the key highlights from the report. >> john, ferrari's market cap topping 60 be there. fer -- $60 billion. profits up 46%, deliveries up 9% and making more money per car because of the limited edition cars they sell for $4 million to $5 million. customers can choose paint colors and fabrics. the margin over 26%. it's amazing. the guidance that investors really loved here. ferrari raising sales and profit guidance for 2023. the ceo saying he is seeing no slowdown whatsoever in demand. he said, quote, the order book remains at the highest level across all geographies and across all models covering the entire 2025. that means they're sold out the next two years. hybrid cars outsold combustion

engines saying they have a prototype for the first ever all electric ferrari that is going to be launched in 2025. >> this reminds me about homes above $10 million selling quite well. when this does slow down, does it happen suddenly? >> it's already happening with porsche and aston martin. the question on the call by analysts at fidjierrari, we hea from aston, porsche is seeing a decline. why is ferrari different? ferrari said our customers are wealthier and more immune to economic shocks and ferrari is a very special brand. the people who are bonded with that brand are bonded to ferrari. and so -- but i think it's really the level of customer for these limited edition 4 to $5 million cars, these are billionaires or people worth hundreds of millions that don't care about rising rates. the question from analysts is, if you're sold out for two to he

three years, what do you do as a company for the next two to three years? you have no more cars. that was the question on the call. >> just hold events. >> and win a lot of f1 races hopefully. >> is it the size of the customer base expanding? that's the growth play for them? >> it's really increasing production, building a new ev factory to come on board in 025. that's the first of what would allow them to make more cars. they make less than 15,000 cars a year. in order to please wall street they have to keep increasing that number while remaining exclusive. that's going to be the balance. >> all right. robert, thank you. again, robert frank. still to come, drugs, delivery and discounts. eli lilly, doordash and target all moving. the trades on the stock after the break. power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis

help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley. with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley ♪(romantic music)♪ (♪♪) (♪♪) (♪♪) in the u.s. we see millions of cyber threats each year.

(♪♪) that rate is increasing as more and more businesses move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security. chip? at&t business.

welcome back. it's timing for today's three stock lunch and three movers and hearing from their ceos. we'll start with eli lilly which reported third quarter earnings beat on strength in mounjaro for

diabetes. the company waiting for the approval of the drug for weight loss. here's what ceo david rigs had to say about that. >> people who are using mounjaro are using it for type two diabetes we have an application under review at the fda for obesity and when on the medication we know from our studies people eat less. reminder people lost on average 48 pounds of weight in a little over a year. that's a life-changing and health-changing event for people. so we're focused on getting that application out. >> here with our trades today is ava, the cio over at er shares. would you be a buyer and stick with the stock here? >> [ inaudible ] the reason is overall the company has flat growth. last year it grew by 1.5%. the overall company is flat. however, the key bright spot is

mun jar rock the recent diabetes drug, used also for obesity, and we believe they have two key competitor in the market from novo nordisk, the market is big overall. the drug became the second biggest drug, and it actually has contributed $3 $3 billion tr so far, and so we believe that will continue to contribute to the revenues in the future in a big way, however, we have it as a hold because, as i said before, overall the company has been flat in terms of revenue growth, and also their evaluation is three to four times but we will continue to monitor sales when it comes to mounjaro. >> doordash, shares jumped more than 16% at the moment. the company saw its food orders increase more than 100 million year over year. analysts say the company's guidance shows solid growth. here's what doordash's ceo tony

hsu had to say. >> we've seen the rise in inflation both on commodity goods, whether it be grocery i items or community goods and seen that on input prices when it comes to the food that restaurants have to use to sell their product. and we've seen for certain segments some trade down effect where they're purchasing fewer items, but actually still continuing the same number of purchases and when you kind of add in the increased prices because of inflation, as well as the reduced number of items, it kind of nets out to be a wash. >> and yet doordash still doing well, so, eva, is it worth ordering in doordash still? >> yeah, definitely. i order personally almost every day, but one of our major holdings and we think it's a buy. i think the company has proved itself in the last three years it has tripled revenues to

8.3 billion. they also went from half a billion in losses to 600 million in revenues and so that happened in the last three years alone, and so i think the company has turned the corner. it has proved itself. it's a big development for a company to be -- to turn cash flow positive while also maintaining a 30% -- 33% actually revenue growth, so i think this growth story is only going to get better in the near future and i think there's clear sailing ahead. >> all right, loving it. to target then, ceo brian cornell speaking as part of the cnbc evolve global summit today explaining what he has seen and heard from the target customer. >> we are seeing signs of caution. i think the most prevalent term we hear from consumers they're looking at budgets carefully right now and while we've

certainly seen inflation start to decline, lots of progress on that front, when you look at the impact over the last few years in a category like food and beverage, those household essential items, food and beverage inflation and costs are up 25% to 30%. >> all right, so that brings us to shares which are actually up about 1% off a tough stretch. eva, what do you do here? >> i would have it as a hold to a sell actually, because this is a sluggish company. they have their profits are below where they were in the last few years. they had negative revenue growth of minus 5% in the last year, and so their costs had actually rised in the last year so overall i think it is a bureaucratic company. a sluggish company and given yesterday's fed announcement, which was quite encouraging actually and today's

announcement that shows that labor costs are coming down, i think that growth companies will outperform staples and so it might be a good decision for an investor who is optimistic about the future to reallocate funds from staples such as target to growth companies given the fact that the israel and hamas tension doesn't escalate. >> well, hangs over so much. eva, thank you. we appreciate your time and thanks for joining us today, eva ados for three-stock lunch. the beatles release a new song with a little help from their friend a.i. we'll discuss that and much more when "power lunch" returns. >> announcer: cnbc evolve is sponsored by city national bank. it's their business to be personal.

this is spring semester at over 13,000 us school districts, which have become top targets for ransomware attacks. but there's never been a reported ransomware attack on a chromebook. which is why thousands of schools like the fairfield-suisun unified school district switched to google tools for education. so they can focus on teaching and 22,000 students can focus on learning, knowing that their data is secure. ( ♪♪ ) as an independent financial advisor, my promise to you is simple. as a fiduciary, i promise to put your interests first, always. i promise that our relationship will go well beyond just investment decisions. it's the intersection of your money and your life

where we can make the biggest difference. [announcer] charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com

welcome back. three minutes left in the show. a few more stories starting with the fact that it's been a rocky restart for federal student loan payments. a department of education memo published last night details thousands of errors made in just the past few weeks including one borrower being told they show $108,000 for the month of october, john. >> the problem here, i think, is that to the government that's not a lot of money to owe in a month. look how much the government owes. you have to answer them in their language. my house doesn't have a speaker. we can't pass a budget. sorry, we're shut down. >> i will be issuing more treasury bills to help cover

that cost. >> and the hot, new seat on the plane is not at the very front. not quite business class, definitely not coach, premium economy cabins are hooking travelers willing to treat themselves to extra comfort for about twice the price of a normal coach seat on some flights. you get the alcohol. >> i was going to say, do you get more -- a bigger seat, more foot space? >> you get that. >> do you. >> and the alcohol. >> yes. and you get a better meal. >> for some of us the leg space is more important at this point. >> i'm a short man so, you know, around 5'8". >> but you can drink so i'll see you -- >> what have you heard? [ laughter ] according to bankrate 92% of young professionals now want a four-day workweek and would give up a lot to make it happen. among what they'd give up working longer hour, working nights or weekends and even cutting their pay and i kind of get it. again, i know i'm beating the drum for this work from home thing but the quality of life that you get from having a day

at home, everyone realized during covid is really hard when you can't get that back. >> i don't believe in it, kelly. maybe this is the gen-xers we talk about but if i'm trying to get ahead i'm not working four days a week. >> agreed, but there's a difference between the beginning of a career or maybe that stretch where you're really -- or maybe it's a caretaker thing, right? when you have primary responsibilities and both parents working, the ability to have that extra day for doctor's appointments and going to the dentist, all of rest of it, you know. >> i live ambitiously, kelly. a new song from the beatles just dropped with a little help from a.i. "now and then" was 45 years in the making started as a demo recorded by john lennon back in 1978. the remaining three beatles tried to finish it in the '90s but technology didn't exist to separate lennon's voice from his piano part until advancements in a.i. helped get it over the finish line. the cd and vinyl version

available tomorrow. this isn't generative a.i. just isolating his voice. >> what we're hearing is not the song. >> you're hearing his voice and the other instrument. you're not hearing the piano part. >> you heard the actual song? >> i haven't. it's like erasing something in photoshopping. >> are you a beatle -- >> i love the bateeatles. >> "closing bell" starts now. all right, kel, thanks so much. i'm scott wapner live from post 9 here at the new york stock exchange. this make or break hour begins with stocks on the run big time and apple earnings just ahead in just a few minutes, star analyst dan ives will tell us what is likely to happen, how shares could react. your score card about 60 minutes to go in regulation, that post-federally going strong. the s&p now going for its fourth straight positive day, been a nice broad move, every sector today on the upswing. take a look at how much green is on the map today