good friday morning. i'm carl quintanilla with leslie picker live on the floor of the new york stock exchange. after that sloppy 30-year bond auction yesterday, how dependent is the market on the next move in yields? is this rally really hanging by a thread citi's scott chronert will way in. later on, earnings with twilio ceo jeff lawson, a gut check on a.i. and the cloud sector. currently a positive day for the broader index. the s&p up 0.3%.

the dow up 59 points the nasdaq in the green as the ten-year pulls back a little bit. ten-year yield. topping the tape was last week's relief rally a reliable row? the gains are a lot more muted as yields once again dominate the narrative. is the market at risk of rolling over again let's bring in our senior markets commentator mike santoli, who has not been really unnerved by yesterday's action, right? >> no. a little too early to say it was a complete head fake last week le weak parts of the market going in have rolled a bit and they still look weak we talk about small caps you look at the regional banks haven't necessarily said this is a trend change but point to point this week, you're flat on the s&p 500 done enough to digest the gains. there was the squeeze that hasn't yet been the chase.

that's sometimes the sequence of these things going to withhold judgment we see the sensitivity of stocks to every little twitch in the bond market. i'm not that alarmed we had the little flurry of upside work in yields after that auction yesterday. didn't even get to monday's highs in the 10s and 30s in terms of yield we'll see if that means we're settling out or we have to be on alert constantly for any move. >> what do you attribute this to, short-term memory for investors in terms of where we're at and - >> yeah. i think the big overlay psychologically in this market is we know the cycle is far along. we think 500 basis points of fed tightening and this massive move in long-term yields should have had more economic impact we're not shr we have enough evidence to say we can asober what's happened on rates on the other hand, earnings tilting higher in terms of the 12-month projection. seems like we got a trough in corporate earnings it usually should support things

even the earnings performance is very top heavy even the earnings performance is largely attributable to those sectors that have worked really well nobody is willing to give credit for what looked like cheap cyclical areas of the market they can actually turn it around and capitalize on resilient economy. >> a lot of complaints last week about being in a macro desert really that's going to change next week. >> exactly so we weathered this week when there wasn't anything aside from fed speak to play off. really the market reacting to itself, to its overall condition. next week, cpi i've been saying for a long time, disinflation is the escape route from everything that's been bothering the market. whether it is the fed being done as of july that's probably something that the market wants confirmation of and, of course, just exactly what valuations ought to be in an environment where either inflation is no longer a problem or a continuing one. >> feels a little like a chicken and egg issue. >> yeah, it always is. it's like this feedback loop

keeps turning. >> until you get more information. mike santoli, we appreciate your tranquility during times of more volatility despite yesterday's move in treasuries, our next guest expects the ten-year yield to end the year at 4.3%, which boosts his case for 4600 on the s&p. joining us now, citi u.s. equities strategist scott k chronert give us a sense of how we get to those levels. >> i think it's important to recognize we are still in the cusp of the ten-year yield being the dominant influence right now. we're using 430 end of year level. i would remind when we were near equity highs back in july, we were arguing ten-year was bound closer to 4% we're still in this world where the ten-year becomes more important indicator from here than does the fed funds rate >> interesting you note there's a clear division between leaders and laggards in year-to-date market

action does that make this environment better for stock pickers or better for etf purchasers and those looking to track the index fund >> we think as we go into '24 the circumstances are going to change it's pretty clear right now, you still have this momentum leadership around this mega cap growth or tech cohort. going into next year, we think we'll see a much more balanced sector earnings growth profile that should lead to a broadening out effect when we talk about our mid-'24 target, which seems crazy, but we're -- and we're at 5,000, that's going to entail ongoing leadership from bigger cap growth, but a broadening into other areas of the market that have been mostly left behind this year. to mike's point, i think we're looking at next week as an important signal because we're going to get a bevy of economic data that's going to support or not this ongoing inflation deceleration argument. >> by most accounts, where we're at now with q3, it's been a pretty solid quarter for

earnings it's just guidance that has really spooked investors what do you think that portends for q4, our current quarter and going into next year >> yeah, so we've been pretty constructive on the earnings picture for the s&p 500. and going into q3, let's just set this up, we were looking for a flattish year over year. we ended up getting roughly plus 4% growth with q3. that came at the expense of q4, where, you know, previously expectations were for plus 8 now they're at plus 4. what we think has happened with the q3 reporting period is you have very expected cautionary commentary in general the macro back drop is such that we think going into the q4 reporting period, we'll get another decent, positive surprise situation similar to what we got with q3 results. >> scott, you guys did a great note a few days ago just looking at fiscal sustainability and that whole conversation. one thesis you guys put forward was that the most palatable

political solution might be to raise corporate tax. i wonder if you guys are doing odds on that and whether or not it's putting a ceiling on the market >> yeah, this is real thought stuff, carl. when we look at the deficit as it's set up right now in the cboe projections, it certainly gets scary when you begin to factor in current interest rate levels and we pointed out in our note that the cboe's projections are based on 3% rates, which doesn't seem like it's the right place to be right now. so, what we're suggesting is we get through the '24 election cycle and get into '25 we'll have debt ceiling issues again. but we think importantly the discussion around some combination of higher taxes, probably ways to fine tune or lower the government spending levels, will have to come into play and essentially that introduces a potential era of fiscal restraint ahead. which, again, it's out there

it's not something we're basing our primary view towards the u.s. equity markets on right now. but it is certainly a consideration for us as '24 unfolds. >> it was hard not to notice your figure where if you took the average 1990's effective tax rate, you wouldn't get 2022 in s&p earnings you get 178. >> so, we have to acknowledge that all of this is moving i would say, though, on this point, we've been arguing that u.s. s&p 500 earnings live in a nominal world. so, the point we're making in there is that, you know, as you're looking at this higher for longer rate potentially attached to higher inflation regime, there's a high connection between sales growth and nominal gdp, not real gdp. the connection between real gdp and earnings is actually not as high as you would commonly expect and so what we're arguing here is that we have to be prepared that there's going to be a lot

of nuances that come into play that reflect more idiosyncratic action within the s&p 500, and, you know, i think this tax rate issue is going to be something that's going to be front and center again, probably later in '24 but certainly calling it out now just to get prepared, i think, is a smart way to be thinking about this. >> yeah. i thought that chart about the correlation between real gdp and earnings was interesting scott, appreciate your perspective this morning thank you. let's turn to the energy markets today. oil is falling for the second straight week despite all the geopolitical tensions and opec's continued 2 million a barrel a day production cut brian sullivan making the rounds today. >> the metro card is getting a workout today. the 1 and the 9 is on time >> walk us through. >> if you look at everything going on, the 2 million cuts, everything you referenced you think, oil should be $100 a

barrel i think most of wall street is bullish. really iran and the u.s. and a little brazil are the factor let me explain so, we have technically these sanctions on iran because iran is the primary funder of hamas, a lot of terrorist activity. let's just say the sanctions haven't necessarily been as enforced as aggressively as they should have been or could have been if we look at iran's exports and iran's output, it's over 3 million barrels a day. the iran story went from 750,000 barrels a day, one giant super tanker a day to 3 million. you can see the upward trend more iranian production. the united states, by the way, leslie, 13 million barrels a day. nobody talks about old brazil. but brazil, non-opec, not a member of opec, their production has also gone up china demand not down, but flat. they're growing. factor in, there's a lot of oil sloshing around out there, carl. >> is venezuela important? and do you believe some --

>> to who? >> to global supply. >> venezuelans, yes. >> and do you believe the demand figures we got last week >> yes and no. so to your question, venezuela will be important. they used to be important. i mean, venezuela, carl, has the biggest oil reserves in the world, 300 billion or million barrels, whatever the number is, it's a lot now, it's sludgy garbage oil it's almost mud. it's good for things like diesel fuel, shipping fuel, things like that we're making the deal with venezuela. that will be about 200,000 barrels a day. the state department would like to believe it's 500,000. it will start to matter. if venezuela doesn't get more on line and brazil get more online, there's the ship act, basically another sanction on iran to get them at the ports. right now iran sends oil to malaysia they do something to it, the

ships, and say it's malaysian oil, not iranian oil if the ship act passes, iranian oil could come off the markets if opec extends the cuts, you might be talking trip it will digits i see that gleam in your eye, carl. >> in terms of the geopolitical situation are oil watchers focused on in terms of -- so far it's $76 a barrel, but things could potentially catalyze much higher day by day. >> china demand, i would answer china demand china's economy, i'm not sure how it's really doing. it's not booming we know that the imf does see gdp growth for china next year. if they're right, that would mean a significant increase in chinese oil imports. if they're wrong, they would be flat or down the united states is at 13.1 million barrels a day. we have never produced more oil than we are right now.

it's hard to believe given some of the political climate in the united states but we're at record production. brazil continues to soar opec meets in person the sunday after thanksgiving it's likely they could extend if not make their cut larger if oil continues to slide because they believe there's this paper tiger that futures keep getting shorted and it doesn't reflect the actual market. >> and yet we've seen some pretty significant deal-making, at least among some of the consumer major oil companies at these levels, does that make m&a more palatable less - >> who's left? you cover the banks. you follow the money look at that graphic just happened to pop up $150 billion in oil deals the last five years. that's three deals, by the way and of course recently exxon pioneer, chevron haas. pioneer has unique stories, and

hess guys in their 70s, kids have no idea in that business. brian sheffield runs his own company and the hess kids have no interest in the hess story. it's like, let's move on those were unique situations i mentioned it on "squawk on the street" today, because you said i was making the rounds. and i'm not reporting this it's not like a thing i'm saying i'm just going to tell you, you go out, put a few drinks in an oil investment banker and they would tell you they would make a strong arlg ument for a shell buying of bp i'm not saying that's happening or going to happen you talk about super major deals, it's not impossible total in france, are they a player i think you have to start to look to europe, italy. their cost of energy is a lot higher than us. >> we haven't seen nothing yet >> from a deal perspective, i think it depends on the premium. how much are you willing to pay per barrel if you are a believer in a world where global fossil fuel demand will ultimately taper off, if

you believe that, then why do a deal unless you want to cut costs and sisynergize. everybody could stop driving gas-powered cars tomorrow and global demand would slide, but not by that much not if india continues its course we'll see what happens wouldn't it be interesting if we saw a gigantic super european deal i'm sure the regulators would love that. >> we'll talk nat gas next time - >> am i invited back >> after you do the half and "closing bell" and - >> and "fast money." >> and your own money. >> that's right. "last call," 7:00 p.m. >> we'll be tuning in. >> that was my pay for coming down here. >> a cheap plug. an easy plug. >> more coffee thank you. >> thanks. meantime, twilio post earnings, nice week after raising guidance jeff lawson is on the other side of the break. we'll get to wynn results

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ugly chart for trade desks third quarter results did beat on the top line and bottom line. weak refuse new guidance and soft spending outlook weighing down that stock today. shares down about 17.8% right now. let's get to another earnings move. take a look at twilio today. shares continue to climb after reporting earnings on wednesday. a beat across the board. q4 guidance coming in above consensus. joining us in a cnbc exclusive is twilio's co-founder and ceo jeff lawson. great to talk to you. >> great to be back. >> the street has definitely gotten a little more energized when it comes to the space and the prospect of maybe making a turn a lot of hard decisions out of the way. is that how you see the narrative shaping up, at least right now? >> well, look, we've been doing

a lot of hard work to take the business from its growth trajectory, focusing exclusively on growth from the first ten plus years of the company's life to build this amazing customer base of 300,000 companies and $4 billion of revenue now the last 12 to 18 months spending it into profitable growth we're proud of the progress we made in the last 12 months we've seen a 17-point increase in our nine gap out margin and 36% increase in our gap margin as well. we're proud in the progress we made and turning the corner towards profitability. >> in classic wall street style, the market is appreciative and then they're like, okay, how much more can we get in at least on the margin front. >> what have you done for me lately, absolutely we're focused on balancing the needs of growth and of profitability. very clearly, we're showing we can turn this business into a great profit-making, cash-generating machine. >> how do you strike that balance? you've cut about a third of your workforce over the last year

how do you ultimately catalyze thinks to the upside with a smaller workforce, is it tenable in this environment? >> i don't think the size of the workforce is the driver of our growth ambitions it's bringing great products to market you're right, a.i. is the potential to be a great tailwind for us we introduced a couple of months ago customer a.i which is the notion of what happens when you take all of these amazing new capabilities we're seeing with generative and predictive a.i. and make it customer aware you give it all the data about your customer base, who your customers are, what they're likely to buy, what they're not likely to buy, are they likely to churn or not. you give all this data to a.i. and allow it to optimize the customer journey from marketing to sales to your service and support to your product, your mobile apps. a.i. will be able to optimize the journey for each and every customer in a tremendous way i think the result of applying

a.i. to this customer domain will be the companies get ten times better at serving their customers. they're going to do it at one-tenth of the cost of what they would spend today to do that this is going to completely revolutionize companies and how they approach their whole front office, all their customer operations. >> to that degree does it matter about the consumer macro back drop i mean, i guess whether or not it does matter to those companies and their margin improvement, how concerned are you about the u.s. consumer rolling over >> we have a usage based pricing model for most of our products what this means is more of our products use, the more money we make now, this was great during a period of great economic growth for the last, say, decade. this propelled us to very high growth rates and expansion rates and things like that granted, it's been a headwind during the last 12, 18 months, no doubt about it. the way i look at it, we now have a stream lined cost structure to our company and as the macro economy continues to

change, eventually it will come back to more growth, right, and as it does, that growth will turn into more usage of our platform, more revenue in that growth profit will fall rapidly to the bottom line of the company because we don't have to spend more to get it we can be the beneficiary of positive changes in the macro economy. i think we've taken most of the punches already in terms of the downsides of the macro economy over the last 12, 18 months. we're looking at it as the opportunity for upside going forward. >> most of the punches, do you think you've seen the trough, it's in the rearview mirror? >> you know, i can't say for sure obviously, i don't have a crystal ball about the macro economy. what i can say is we've been working closely with our customers. we've seen a few verticals where we've seen more headwinds, a lot of verticals we think are healthy. we continue to work with our customers on it. i think for the most part, i'm optimistic about where the world is going. >> finally, are you getting more aggressive on marketing spend? how do you approach that going into, say, an election cycle >> we tend to look at marketing

spend or any spend we do and look at it in terms of roi, is it turning into more customers or customers who will likely spend more if it's not happening, we'll retool and spend on things that get us better roi. i think we moderate it in any environment for the roi. >> jeff, always good to check in, especially in the wake of the quarter. thanks, as always. jeff lawson. medical device company hologic, top gainer on the s&p, up 5.8 currently more on the quarter when the ceo joins us later this hour. staying in the medical sector, watching notvo nordisk says it plans to boost production up nearly 50% for the year europe's most valuable company still. stay with us you'll find them in cities, towns and suburbs all across america. millions of americans who have medicare and medicaid but may be missing benefits they could really use. extra benefits they

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lower heading into the close there as negative central bank commentary sourz investor appetite food and beverage stocks leading the way, down with british drinks diageo falling double digits the johnny walker maker due to a slowdown in latin america. cartier's parent company lower after warning inflation and geopolitical issues are slowing consumer sentiment the chancellor saying high

inflation is the, quote, second greatest threat to economic growth pretty fascinating, the interplay between the various geographies and how the rate regimes are impacting and having a real impact on growth. >> yeah, uk between retail sales and inflation, employment, it's been a tough road. let's get a news update with dominic chu. >> good morning. former president donald trump's requested to delay his classified documents trial in florida was rejected today but judge eileen cannon said in a court filing this morning she is leaving the door open for a delay and will consider the issue again at a scheduling conference on march 1st. the number of kids opting out of routine childhood vaccines has reached an all-time high, according to a new report from the cdc it means potentially hundreds of thousands of children are unprotected against preventable diseases, such as measles and whooping cough the report didn't detail reasons for the trend, but the american academy of pediatrics says a big

factor is rising distrust with the health care system and prince harry, elton john and five other high-profile british figures will have their lawsuit heard against the publisher of "the daily mail" newspaper. the high court in london ruled today it could go forward. prince harry and the other defendants accuse the "daily mail" owner of phone hacking and privacy breaches going back years. they have denied any wrongdoing. up next, deutsche says to buy wynn resorts on post earnings drop. we'll break down that call. a look at shares of plug power, losing more than 40% of its value when we're back in two minutes.

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welcome back contrarian call on bj's restaurants. after several downgrades and slashes on the street in recent months they have the stock going to 80. shares currently at 26.25 and down 2.6% today. i think the basis of this idea is that it's basically in oversold condition one of those stocks that could be poised to rally in the event there's some upward revisions to earnings in the future, carl. >> yeah. comes after evercore's tactical outperform yesterday on bj, and target as well. a note on wynn today, catching our attention from the desk of deutsche analyst say buy the dip, citing the fundamental growth store under pressure despite an earnings beat and this tentative agreement with the las vegas hotel workers to avoid a strike.

it was weakness in macau driving the move to the downside let's bring in contessa brewer jim said it was being sold unfairly today >> i couldn't agree with him more to me this is much ado about nothing. do you know what the miss was in macau? it was $4 million. that was the miss on expectations they have gamblers who go to macau and drop more than that at the tables they're you're seeing the reaction wynn macau the specific stock down almost 13%. i just think what you're saying here is, number one, wynn gets no credit for the fact that things have reopened in macau. basically their stock is off year-to-date even though this has been the big reopening we have heard from las vegas sands, we heard from mgm and melco, which did have a bad earnings report ought of macau said it's been clobbered by the end of the junket business and weakness in the vip business on the other hand, wynn says, yeah, we pivoted we've been able to go in and grow our mass business, the

catering to those people who come and play, but you got to fit more of them in and get more through, and mass and premium mass is taking all the spotlight in macau when you look at las vegas, it's on fire. it's been on fire quarter after quarter, outperforming they pulled in 12% higher ebitda in las vegas against very difficult comps. i'm shrugging, why are people -- they've done it to cesar's, to mgm. why do you have results to show in earnings and then see the stock move lower i will note carlos santorelli lowered his price target, looked at the estimates out and has based that on what's going through 2025. >> any thoughts on this labor dispute situation and that potentially serving as a tailwind for them as well or

does it seem like it would create more inflationary pressures that would impact their margins? >> it's interesting you bring up the wage pressures that go along with that. there will be additional wage pressures. in fact, that's been gamed out by the analysts. what we heard from mgm this week on the earnings call is they are seeing such great results in las vegas that it will more than cover the historic wage increases they're giving the employees. we heard that from caesars, mgm and wynn this is the highest pay increase they have given since dealing with the union will there be an increase to expenses yes, obviously but las vegas is doing so well and caesars and mgm came out and very strongly said, we think our people deserve to share in our success. so, because of that, we're willing to do this it really is a drop in the bucket if things in las vegas keep going in the trajectory they are. >> contessa, what is f1 going to mean to vegas, in the coming days at least?

>> well, on the earnings call for wynn last night, they were like, oh, we're not going to put an actual number on what it means to ebitda for the quarter. they did say they're expecting to exceed their hotel revenue record by 50% in the three days of f1. and they said, they put almost -- no, they said, very few rooms out on the open market they were all just snapped up. caesars has actually put a number on it they said it will mean 5% ebitda to las vegas for the fourth quarter. remember, november is typically the slowest month of the year for las vegas. what we're going to see is one of the best months of the year the impact is expected to be more than $1 billion for the city the question is, is there a holdover what i've been told is, yeah, because what you're doing with f1 is you're taking that luxury brand that las vegas wants to project and you're taking it to the international travelers who can bring in their wallets and

high-spending ways to las vegas. that it's a win-win for everybody. see what i did there >> yeah, it's going to be exciting here as well. as we count down to sara's documentary. contessa, thanks contessa brewer watching wynn. meantime, that negative move on plug grabbing the attention of several analysts. four downgrades from rbc, morgan stanley, oppenheimer and northland, disappointed as the company warns it does face severe liquid hydrogen shortages in north america pippa stevens will break down that move. what a story, pippa. >> the stock is down more than 40% today on pace for its worst day in a decade after the company, as you mentioned, issued that going concern warning last night, saying it's facing, quote, unprecedented supply challenges in the hydrogen market. their q3 results missed across the board, wider than expected loss, revenue missed expectations their margins remain challenged and they keep pushing out the timeline of when their plants

are going to come online the company said looking forward they'll have to access additional capital in order to keep their operations going. as you mentioned, more than five downgrades today, including from rbc, which says they might have to raise an additional $750 million over the next year so, just really nothing to like here in this report. we have to remember, this was not a company that got caught up in the spac boom a few years ago. this company actually went public in 1999, hit an all-time high in 2000 during the dotcom bubble and the stock is 99.8% below its all-time high in 2000. hydrogen has been the next thing but so far it's been too expensive. >> what options does this company have now it got pretty significant cash for -- it looks like they need to do something to bolster their balance sheet. >> the big thing is they're still waiting on clarity from the inflation reduction act for how it accounts for the hydrogen

credits. so far treasury has not issued any updated guidance because there's a really strong debate about what these credits should look like. the people more on the -- more stringent side in terms of actually making it green, saying it comes down to three things -- hourly, emissions produced in the hydrogen production process on an hourly or annual basis, is it made with additional renewable energy coming online versus just existing renewable energy resources that already exist, and finally the regionalty is a close buy where the electrolyzer is based. nextara says if you set it up with two strict parameters it will stifle it to get off the ground they say let it be looser at the outset to get capital behind this, to get stakeholders involved in hydrogen, and then maybe make it stricter down the line because there's such a wide debate, treasury has not been able to issue any type of

guidance so far. that's a big drag here >> and in the meantime, today's move certainly isn't going to help their capital market solutions. pippa, thanks so much. up next, the ceo of medical device maker hologic the supply chain challenges it's facing and why that could lead to lower than expected revenue. microsoft, up almost 2%. that's going to be a fresh all-time high again. now up 53% year-to-date. on pace for the best year since 2019 we're back after this. when you're looking for answers, it's good to have help. because the right information, at the right time, may make all the difference. at humana, we know that's especially true when you're looking for a medicare supplement insurance plan. that's why we're offering "seven things every medicare supplement should have". it's yours free, just for calling the number on your screen. and when you call, a knowledgeable, licensed agent-producer can answer

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take a look at hologic top gainer on the s&p, reporting a beat on top and bottom line in the company's fiscal q4. mixed guidance for the current quarter and announced plans to interview a stock repurchase agreement worth $500 million joining us, hologic ceo stephen

macmillan. thank you for being here. >> thank you for having me. >> what are the key tailwinds you're experiencing now? >> i would call it we're getting rewarded for what our team did during covid we showed up every single day, we invented the highly accurate molecular covid test and that allowed us to place more panther instruments, and now as that has gone down, our panthers are picking up all the additional revenue from our usual businesses so, all of our women's health assays and also strengthened the company financially across our breast health business, our surgical business. we did a few acquisitions. we invested more in r&d. i think now the dust is settling and what we like to think is the cream is rising to the top. >> you still have $4 billion cash equivalent on the balance sheet, which a lot of people have -- you announced the buyback but any m&a you're looking at doing, any strategic

use cases for that $4 billion? >> yeah, we've been very patient. what i've always thought is when you have a really strong business and our core business just grew 15% last year, when you have a strong business, it allows you to be patient in the m&a world. and so we've been looking at a lot of things, valuations are correcting but, frankly, with our growth rates, we need things that can be even better than that it makes it a little harder. part of the reason we did the buyback, the500 million announcement, it's an acquisition of ourselves we have good due diligence on ourselves and like what we see. >> i wonder if you've been entertained by the street's urgency and writing playbooks on weight loss drugs. impact on restaurants, impact on apparel, obviously dialysis, medical device why do they want to jump to chapter ten? >> carl, you know, you've been around this long enough to see i think there is so much focus anymore on headlines versus core fundamentals if i -- i'll go off of hologic

if you look at why would orthopedicic stocks take a big hit because of the glp-1s? people think there aren't going to be as many knee replacements? these are years but people react to headlines we've seen it sometimes -- sometimes headlines will hit on a particular study where there's a quick hit to a headline that has very little fundamental impact on the business over the next five years. >> is it -- i mean, but is it a move toward efficiency, where we start writing playbooks and thesis faster? i don't know maybe it's efficient markets >> it may be i think there's also -- you know, call it -- i think there's some efficiency. i think there's a lot -- i'll give you an example. earlier this year the breast health guidelines were modified. the uspf years ago said women should wait until 50 for some mammograms they came back to 40 because we

found out a lot of women were getting diagnosed with breast cancer in irtheir 40s. the morning that news came up our stock was up 15% it's positive for us but an overreaction yes, there's efficiency. but i'm not sure it's as efficient as we might hope. >> how much competition do you see from some of these services that are offering, say, $2,500 to get your full body scanned for cancer and other diseases you might have, is that a growing market in your estimation or -- >> i think it will be. you know, clearly that's a lot for the very high end. you know, that's a -- call it more of a niche market but anything that leads to increased diagnosis is great the single best thing, and what i love about being at hologic, is early diagnostics is a win for everybody. it's a win for the patient because we catch it earlier. it's a win for the health care system because it costs less and so the more that we bring more science into diagnostics,

you think about it, there's still a lot of art involved in medical diagnosis. and what we're trying to do between our enhanced imaging, whether it's in breast cancer, our fibriod testing and the molecular, that will certainly the great opportunities for the future. >> fascinating steve, thank you appreciate it. >> thanks for having us. by the way, thanks to all of our employees and my father-in-law on veterans day. >> yes a nice tribute at the open this morning. >> i saw that, thanks for having us coming up next, inflation is causing the irs to raise some tax brkeacts how that might impact you after the break.

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big focus on china/u.s. tensions todayahead of the ape summit where the president and president xi are set to meet in san francisco next wednesday our deirdre bosa is out west with more on today's "tech check. hey, dee good morning the biden administration talks a big game on the chinese crackdown, but chinese companies are continuing to find ways to benefit from american technology and consumers. two critical areas where the country continues to make advancement and inroads, that's ai and e-commerce. one of china's busiest emerging ai startups was founded by kai-fu lee, one of the leading experts in china who has had stints leading microsoft and google in the country. in less than eight months his startup has reached a valuation of a billion dollars, so unicorn status, and create add product that performs better than

american ones on certain me metrics. to get there, it needed powerful american chips, but there's been an export ban, right well, yeah, but in an interview yesterday lee said he went on an nvidia gpu buying blitz buying enough of the chips to last for the next 18 months or so put another way, he front ran u.s. sanctions and stockpiled enough american technology to build a fierce chinese competitor it's not too far a leap to suspect other chinese companies have done the same especially since there was so much warning. now on the e-commerce front, and we talked about this before, two of the fastest growing e-commerce platforms in america are chinese. that's temu and shein. with splashy super bowl ads and deep discounts, temu has by one estimate more than 56 million monthly users in the u.s., owned by a tech giant pinduoduo, making $150 billion company. american companies continue to take hits in the chinese market. there's unity, a video game

company that missed revenue expectations in its most recent quarter thanks to new chinese government restrictions on gaming of course we've been talking about the iphone restrictions, too, and increasing scrutiny at apple's largest chinese supplier, foxcon meta, 14 years after getting shut out of the country, it's getting back in with a chinese company to sell vr head sets the last time president biden and president xi met was a year ago during the group of 20 summit in bali this is a photo from a south china morning post article a few years ago. president xi jinping in 1985 in front of the golden gate bridge right here in san francisco. maybe he'll try to re-create it. >> he knows the bay area, knows iowa pretty well he's no stranger to this country, that's for sure >> exactly he spent two weeks in iowa at the time looking into agriculture, but it's interesting because over the last year, the last time that he

met with president biden in bali, tensions have really just ratcheted up and they both, both sides, talk a big game, and technology is one of these areas that is right of ripe for the disruption we have the export bans, china doing things on their side against american companies but the aim of the meeting next week here in san francisco is try to sort of calm down some of those tensions and work to a more cooperative relationship, which is something they always say. you have to look at the tea leaves you have to look at what's actually happening at the company fundamentally where it's headed and what i tried to display today is that there's ways that chinese companies are bypassing some of these regulations and on the american side as well >> the idea of front running potential sanctions, you know, certainly is remarkable in the world we're living in, deirdre thank you. wall street is buzzing about a new tax bracket system to keep up with inflation. the irs increasing the income thresholds for the 2024 tax year

which will return in 2025. the top rate of 37% applies to single filers with taxable income above $609,000, and married couples filing jointly with income above $730,000 the standard deduction will also increase to $14,600 for single filers and $29,200 for married couples filing jointly, so this is a reaction to inflation, wage inflation in particular, just making sure the tax code keeps up with the increases folks have seen over the last few years >> happening on the tax front, happening in social security and ties right into the discussion we have every day about fiscal strain in this country, how we're going to pay for the debt that continues to mount. >> yeah. although in theory if people are making more they should be contributing more to the government. >> it will be hard to message that one one last thing that caught our attention, the world's largest

bank, industrial commercial bank, icbc, was hit by the cyber attack that rendered it unable to clear some of the u.s. treasury trades. some of the banks were forced to reroute the trades using usb drives in some cases nobody has claimed responsibility for the ra ransomware attack. it is said it was a criminal group with ties to russia linked to attacks on boeing and the uk's "royal mail." some discussion about the auction being sloppy as a result or happened to coincide with the already sloppy auction but did not help the narrative yesterday. >> that, also this idea of the vulnerabilities the financial system has i do kind of get a chuckle of picturing someone that's a courier taking a usb drive around manhattan trying to execute these trades it's remarkable in 2023, but just in terms of overall cyber security, this keeps bank execs up at night and the

interconnectivity and the different global standards for cyber security issing at play here and that has an overarching impact because this is a chinese bank, different security standards than u.s. banks, yet the people here are still impacted >> i'm sure a lot of opponents of the block chain are watching this example closely to bolster their argument as we mentioned at the top the hour, next week big macro data points, the president and xi have a good weekend. let's get to post 9. carl, thanks very much welcome to "the halftime report." i'm scott wapner front and center this hour, the state of the rally as stocks look to keep the momentum going. we're going to get the investment committee's take on where the markets are likely to go from here joining me for the hour today josh brown, shannon saccocia, jenny harrington, steve weiss. check the markets, the highs of the day, the dow good for 140. we'll see if it makes a run back to the 4400. we broke the streak there, broke the nine-day streak, weiss, for

the