♪ and welcome, everybody, to "power lunch." alongside kelly evans, i'm tyler mathison we're about to get the fed minutes from the latest meeting. before we do that, market check. the dow is down 68 points. and meantime, let's go -- there you see the s&p 500 off just a little bit let's go to steve liesman now with the fed minutes. >> minutes to the federal reserve last meeting show that the committee believed that further tightening would be appropriate if progress towards inflation was insufficient it's a bit of a more dovish take on the reasons why the fed might hike again all judged it critical for policy to be kept, quote, sufficiently restrictive and remain restrictive for some time the committee was seen in a position to proceed carefully, so no big hurry on the part of the committee to do anything because policy was seen as restrictive already. and was putting -- seen putting

downward pressure on the economy and downward pressure on inflation. financial conditions, they said, had tightened significantly, and in the meeting, the officials debated the reasons for the rise in yields, the persistence of how long it would stick around and the potential impact on monetary policy. you've heard that debate about higher yields doing the work for the fed. further wefd uz required that inflation was on a path to a 2% target and only limited progress they said in bringing down core services inflation, though they registered -- they thought they had seen much better inflation results in the good sector the risk to the outlook they said were more two-sided including demand and supply remaining out of balance, persisting geopolitical risks as well as oil markets being among the risks they discussed supply and demand, however, coming at the better balance inflation they said had moderated but remained unacceptably high was the word

they used. labor market remained tight but saw wages moderating and concern remain too high at the moment for the fed to be on target to its 2% target. several said more upside to the consumer maybe they had more resources than they originally thought i'll leave it there, guys, except for the one phrase at the beginning that i mentioned further tightening would be appropriate if progress towards inflation is insufficient, seems to put the onus on the more day to hike again rather than the bias to hike again >> indeed. >> steve liesman, stay with us there as we get more reaction to the minutes. let's bring in another stephen, stephen stanley, chief economist. welcome back good to have you with us. >> thanks. my pleasure. >> what do you pluck out of -- >> well, it just seems like -- >> big turkey. >> this is a casewhere three weeks is a long time, right? because the fed was having this extensive discussion about tightening financial conditions and now, guess what, we're right

back where we were before the september meeting. so, tightening financial conditions not really much of a consideration anymore. i think from the emarket's persp perspective, the market wants to be done with the fed hiking and the fed says, not so fast. we might go again, but the markets are not buying that. >> they seem to be playing out the clock here a little bit. you know, talking as though -- not suggesting that they're going to raise rates but leaving that option open. >> exactly i think the problem for the fed is they don't want the markets to conclude as they have that they're definitely done. you see what happens the stock market goes wild and bond yields go down because everybody is then the minute we stop talking about fed hiking, markets want to go to the next thing, which is when will they begin to ease. >> let's talk about hiezing what certainly has been affected by tightening financial conditions. it is in a slow down and housing is so central to the american economy. if housing slows, is there really -- it is really realistic

to not expect some sort of recession or stall in economic growth >> yeah, well. this is a great example where tightening monetary policy hits different parts of the economy at different points in time. and the bulk of the drop in housing activity happened last year so the consumer was powering the economy through last year and through much of this year. all the while housing has had most of its correction already we saw a huge decline in housing activity in the second half of last year. and then so far this year it's been closer to flat. so, you know, i think it's going to be tough for housing to rise much from here as long as mortgage rates are where they are, but it feels like we're kind of going along the bottom at this point. >> yeah. doesn't look like markets are too skiddish about what the fed's minutes show the dow is kind of still where we were before we got this release. so, maybe to put it differently, doesn't so much matter what they're telling us as it does what the data continue to show what do you think of the most important data points the next

couple months? >> well, as usual, it will be consumer spending and then in turn the labor market because that's what's driving consumer spending so as long as the consumer is strong, the economy should be in pretty good shape. >> what's the message from retail sells, then not the earnings we have gotten which are kind of ugly, a little here and there there are some bright spots. >> i think consumer spending has been quite good. october was softer, but that was two and three months in a row of pretty good numbers. i think everyone is holding their breath for the holiday season does feel like the consumer should be beginning to slow down after an extraordinary run but so far i would say the consumer still seems to be in good shape. >> do you put a lot of stock what we heard from walmart, the end of october -- just in the pantheon of high frequency data, does that count as an important data point >> they're so big you have to pay attention. the thing is sometimes you get these high frequency moves that

don't necessarily tell you anything about the trend so, if it's a couple of weeks, they're saying weakness. that's one thing if it lasts for a few minutes, that's different. >> steve liesman >> there's a curious line in here that maybe the consumer has more resources than they originally thought there's another line in here that says -- couple fed officials think they may have more resources and there may be more upside consumer and if these up sides keep continuing, maybe there's momentum to it and keep going the question as to whether or not that's ultimately inflationary if the consumer keeps spending i don't know i see these minutes maybe a touch more dovish than stephen does, not the first time we've disagreed. i guess we agree more often than not. but the question to me and this is the question i asked powell at the press conference where is the bias the bias to hike again or is the bias not to hike and these minutes at least at that time stephen is right, it's three weeks old.

i think you had financial conditions tighter than the summer these minutes sound and seem more like the fed has a bias not to hike here >> stephen >> i think they want to be done. i think that's -- as steve read from the minutes, the question is does inflation allow that to happen as long as the inflation data are coming in okay, i think they're probably going to remain on hold. but again, they probably want to retain that optional ty of bein able to go. >> that's embraced in those words. further tightening is appropriate if progress against inflation is insufficient. they're saying if it the medicine isn't working, we'll give them more medicine. >> right the job one is still to get inflation back down. powell has been very clear about that. >> all right well, stephen, thank you very much steve liesman, thank you as well. for more on the market's reaction to the minutes, our next guest is expecting global growth to slow and central banks to start their rate cutting

cycles around mid year next year let's bring in jason draho, head of asset allocation for the americas and michael farr of high tower advisers is also a cnbc contributor welcome to both of you jason, i'll start with you sounds like your outlook is more bearish, more muted, more down beat maybe what's driving it? >> i wouldn't say it's bearish what we see across the board growth, inflationary rates all think they will go lower from what has been elevated levels this year. more of a moderation and perhaps more of a subdued macro environment versus this year, growth exceeded expectations inflation is low, but still above the fed expectations and as a result we have seen rates go higher. i wouldn't say it's bearish. more of a normalization getting closer to trend or slightly below trend. >> what should be on my buy list for the remainer of this list and sell list? >> buy list, fixed income or equiti equities, buy quality fixed income we think rates from probably

peaked this is a good time to be buying high quality bonds, corporates, ig, munis, things of that sort extend duration. the same thing on equities you know, it's an environment where the market is probably going to trade for as if it's late cycle until the fed starts cutting rates. look at things that perform later cycle. tech sector, something we recently upgraded. things to sell, offset is we don't think you want to take a lot of credit risk in fixed income and equity similar story. buyer lower quality, more speculative parts of the market. we think that's not an area you want to be at least for the time being. >> so, you would find -- in the equity markets, you would find the kind of quality that you're describing where i think you mentioned technology >> technology, certainly bias towards the tech sector. all companies will have -- companies that have high earnings growth, consistent cash flows, high return on capital. with every sector you can find,

companies of those attributes. tilt within and across sectors to those kind of companies things that in an environment where the macro could end up having a slow down next year, can still have solid earnings growth. >> so where do yields go from here, jason? >> i think our bias is they go lower six months next year given how significant the move has been recently, down 50 bases points, ten year and much of the curve, wouldn't surprise me to see them back up a little bit. but directionally the next six months by the middle of next year we're going to probably have a sub floor handle or three handle on the ten year just as growth slows in part because as it flows, i think thereby investors who aren't sure, is this a soft landing or passing through the soft landing towards a hard landing >> yeah. 444, that's your benchmark for the 10-year today. sub 4 like you say maybe around the corner jason, thank smouchs we appreciate it

>> you're welcome. coming up, some key moves in the apparel space giving us insight into the complicated situation for malls. american eagle having its worst day since 2020 with names like abercrombie & fitch following its decline. that is next plus, further ahead, a key name in the ai area which has been undergoing significant c suite drama as of late. and speaking of, we have been seeing a lot of trouble for tech ceos lately whether altman's open ai departure, musk's ad backlash or multiple ceos catching flak for giving china's xi a standing ovation. 'ldiuss all this and more when "power lunch" returns ncreas 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.

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>> welcome back tho "power lunch. lowe's lower after missing on revenue after weaker diy spending delays on big-ticket items best buy also down after missing on sales and lowering guidance blaming lack of demand on inflation and shift in consumer spending to experiences and services and the mall-based apparel retailer hit the hardest today american eagle those shares are down 15% what had been one of the stronger mall performers. abercrombie & fitch turned in better than expected numbers the stock kind of mixed well off session lows and it has already tripled so far this year so with retailers under a

little pressure and a lot of concerns about a slowing consumer, let's bring in someone with a great pulse on the industry, with us on set for a change, conner flynn, ceo of kim co realties, one of the largest owners of outdoor shopping tjx and walmart and walmart. business seems to be very, very strong people are still going to stores your occupancy rate is super high >> it's very true. it's an amazing time to be in the brick and mortar shopping center business. you know, kim co one of the most surprising stats is vacancy rates since they have been tracking it is at an all-time low today. 20 plus years. >> what is it? >> like 95.5% occupied e. >> just normal churn would say you would have 5% or more. >> yeah. the supply side is actually what's been very muted

virtually no new supply or construction .5% of new shopping centers is under construction virtually 0 the demand side, store openings to closings out number 2 to 13467 really strong demand factor virtually no new supply leads the pricing power on our leasing spreads. >> so you've got people who are going to the stores to shop. you've got people going to the stores to pick things up, right? and you've got people going to the stores to window shop, i guess, is what you would say, right? >> absolutely. traffic is up year over year you're seeing more retailers use their stores closest to the consumer for distribution fulfillment. apple as you know from stop and shop just die vested saying they're going to use their store base to deliver groceries to the home similar to walgreen's. they're shifting their strategy, focussing on the store to ship to their consumers again, closer to the consumer and then if you can convince the consumer to drive, it's their own time, their own gas and the profitability is restored. >> it feels like the grocery

store is not going anywhere. but i do wonder about disinflation how does your business work sort of a toll collection in other words, let's say their revenues go down because nominal gdp is slowing and going from 8% to 1 what does that mean for your business >> the way the shopping center leases work, it's typically a fixed rent and then you have annual escalators above that really doesn't fluctuate with sales. we're more of a steady eddy. we look back to years talking through the pandemic, through retail apocalypse, through e-commerce the on set of e-commerce, shopping centers have been steady eddy defensive plays primarily because we're everyday goods and services. good days, bad days. people don't necessarily change their habits for groceries people don't necessarily change their habits for services. in the pandemic they did, but that's what's snapped back to all-time highs now is hair salons, nail salons, health and wellness, beauty all the uses that are really

flooding to the screens shopping center because it's what people are looking for. >> and medical iv rehab i'm at four times a week with some member of the family and that always drives the shopping experience. >> yeah. >> let's talk about bed, bath and beyond what was your exposure to that company? is that now erased, cleaned out? and what has happened to those properties to the extent that they were a renter from you? >> sure. so they were one of our lowest exposures in terms of an anchor tenant what we found because of that supply and demand and balance that we're experiencing right now, we're able to raise those rents versus what bed bath and beyond was paying. >> who is coming in? >> so that was the nice part about it of the 17 leases we signed, 14 different leases the diversity of demand. obviously the off price retailers are very strong. t.j. max, marshals, home goods, ross, burlington you've got a lot of grocery specialty grocers, whole foods, sprouts, trader joe's.

sporting goods with dick's doing good public lands new concept and golf galaxy concept. you can see the wealth of different retailers. >> do gyms go in there >> absolutely. l.a. fitness and planet fitness, all of those are expanding and looking for more space. >> who else is emerging, kind of around the edges at a time when, you know, as we heard earlier, the only thing that could help some of these retailers struggling, now like nordstrom, people suddenly go back shopping brick and mortar and so forth, but what you're saying they are still showing up what are some of the next generation of businesses do you think could do quite well? >> if you look at what's happened, ulta cosmetics has been a dominant player now sephora is leaning in. if you think about it, the whole foods shopper is a sephora shopper and similar to trader joe's. macy's is now announced shopping center stores. so originally they were calling it market by macy's. they scrapped that calling it

macy's nordstrom, nordstrom rack. you're seeing the consumer gravitate towards what's convenient and where is there value. and that's what you're starting to see really resonate and you know, if you think about a shopping center and the uses that can go into it what can't work in the shopping center? small businesses, the occupancy costs are very efficient for those operators. and there's a lot of quick service restaurants, a lot of franchise driven restaurants and that's emerging as the new mom and pop small business operator are these plug in play franchise driven concepts. >> we talked a little bit about the overall economy and concerns that it might be slowing are you seeing any of that >> we're looking for cracks. i think everybody is traffic being up is obviously a good indicator those habits aren't changing. small business incubation continues at a record base small shop leasing activity record highs at. pricing power is obviously in our favor. we haven't seen any dislocation yet. and i think what you'll start to see is usually when there's some

level of pause in an economy, that's when people change their habits and if the employment market stays strong, if they feel like there's confidence in that paycheck coming in, i don't think the habits are going to change at the grocery store. it really has to take i think a monumental shift to change that habit. >> it does cost a lot more at the grocery store today. >> that's true >> i don't know what thanksgiving meal is going to cost i hear turkey prices are down, but at any rate, it is a lot more to go to the grocery store. >> yeah. what you're seeing is a lot of consumer shift private labels as those offer more valuable conscious shoppers actually those are higher margin for the grocery stores. >> yeah, sure. >> it is like a win/win. >> or wonder about the aldi's and littles growth there. >> they are expanding quite frequently and definitely are very aggressive on expansion plans. >> had to get a couple advent calendars at aldi. i think i bought the highest margin item. >> right at the cash register when you're checking out it's there on purpose.

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welcome back, everybody. let's get the bond market reaction to those fed minutes we got top of the hour. rick santelli joining us from chicago. rick >> well, we did have a little volatility but all in all not a huge move. maybe the most important aspect today, well, a 13-year low on existing home sales, housing has been the talk on everybody's tongues today. just a whisker under 3.8 million. very weak number there and if you look at a one-week chart of 10s, kelly, what you'll notice is connect all those tops that you see on a dissending line, right around 444 that's basically where the minutes and we held virtually. if you recall, friday's low was right around that 337 mark today's low is 3.38% so we're holding friday's lows then trading kind of coiling and

just to put a face conventional wisdom thinks yields will go much lower to that end, let's look where european boon's settled today. they settled as you look at this chart starting in early september at nearly a three-month low. and if you look at the uk, the ten-year guild, well, this chart starts all the way back in may they're at almost exactly to the day six-month low yields the patterns are very similar. the economies are close. but, europe and the uk in particular are coming from maybe loftier inflation levels that have come down at the end of the day, the u.s. has come down as well, but there are still sticky aspects to it. then you want to pair that with some of the weakening data that we have seen no surprise on the housing side. but, this is, of course, going to be a perfect storm as we go into a holiday weekend tyler, back to you >> all right, rick, thank you very much. ahead on "power lunch," the c-suite facing a wave of criticism of late, especially in tech sector.

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♪ welcome back to "power lunch. i'm leslie picker with your cnbc news update. the warning still stands icelandic officials say there's a high likelihood of a volcanic eruption in the coming days. crews started to construct walls around a geothermal power plant to protect it from the potential lava flow. 1500 to 1800 earthquakes have been recorded each day in the region, which scientists say can be linked to the movement of magma understood grournd. researchers are expecting a breakthrough for the 41 workers trapped in an under ground tunnel north of delhi india. they have been stuck since the tunnel caved in nearly ten days ago, but they have access to light, oxygen, food and water. new jersey governor phil murphy introduced a new rule today to require all new car sales to be electric by 2035 more than a dozen other states have announced similar electric

car mandates tyler, i'll send it back to you. >> leslie, thank you very much appreciate that. all right. some huge lessons in management unfolding over the past few days or mismanagement we saw sam amoultman's ouster sk chaos between his former employer and seemingly his new one, microsoft ex-ceo resists pressure to resign as brands pull spending on the platform over concerns about elon musk's anti-semitic content. this comes after a key group of american ceos were criticized for cheering chinese president xi jinping at a gala dinner in san francisco last week. for more, let's bring in jeffrey sonnenfeld, senior associate dean for leadership studies at yale's school of management. also cnbc contributor. jeff, it is always good to see you. why don't we start so much to talk about here. why don't we start with the open ai situation this looks like a colossal screw

up of really board and governance >> it really is, tyler and that is a pretty daunting list of issues that we have until dinner time, don't we? because i think only thing to add to your list is bringing peace to the middle east and curing cancer. but, you're so right is that you and i on air discussed when steve jobs, we're old for that, when we left we didn't have this mass exodus. mark herd at oracle, done work with the board at hp around that time of course you and i talked about travis when he left uber we didn't see anything like this this kind of affection for a tech leader leaving is remarkable and of course, who could be more popular than steve jobs. but sam altman's affections were amazing. this board to be unprepared, so poor at articulating what the reason was that even the replacement interim interim is now questioning why should he stay if he doesn't even know

what the reason was for the exit we're seeing that there's a good deal of confusion and good for satya nadella. >> is the winner satya nadella and microsoft? or in the short-term if, they end up owning effectivelyopen ai and have 49% stake in it, short-term win or loss because they're spending money faster than they're taking in money >> clear winner is definitely microsoft on this. the $13 billion or so that they put in, they could write off this company, he's reached all-time highs in the value of microsoft stock. last year, at our croweo summitw made him the ceo of the year because his stock was up in part because stock was up 1,000% since you became ceo in 2014 it's doubled since then. up 2,000%.

focussing on innovation, focussing on trust so he has a very attractive culture to bring these 700 plus employees on board if that's the way to go from open ai if not, he has a great relationship with open ai. but he was so nimble i think marc benioff was impressive that he tried to get them over to salesforce. wow, satya nadella he didn't care how this is going to work out. he has a home for them, provided a safety net a huge amount of credibility for microsoft. >> i think a lot of people are very impressed at how he handled this, jeff but i still would question just how well those employees or sam himself would do inside microsoft. you know, if he stays, do they have to build almost like a separate structure to kind of keep that initiative going the way that it was before this all blew up? something so that they don't get consumed into the corporate morass this was a fundamentally successful product no matter what was happening on the governance side. >> you know, microsoft has a

history of some acquisitions, kelly, that completely support your point where they destroyed what they bought sadly this has happened with a lot of large tech companies that have done this. in this case, with the 50 acquisitions last year he brought on board and we have seen recently in the gaming business this is pretty exciting last year, a nuance, he's been able to bring in significance sized companies and $20 billion size deals and hold on to the people, hold on to the innovation it's a very good question. they were outsourcing or partnering ai development with open ai as it was. so it isn't that you're going to have people that feel like they have been preempted. they had that relationship going. so i don't think it should be a problem. it's a very good question. i don't think it will be a problem. >> let's switch and talk about elon musk. and i guess -- i don't know how to phrase the question how much damage has been done to the brands that elon musk

oversees i'm thinking not so much x because x is its own -- i don't know how you could damage it more it is what it is and everybody knows what it is, jeff but i'm thinking of tesla. i'm thinking of spacex i'm thinking of contracts that he has with the government how damaging has this episode been >> if you look at that portfolio, any time we talk about elon musk, we're going to get a lot of blow back after the show people saying, oh, you don't believe in freedom of the expr expression he doesn't believe it either he sensors things critical on x and doesn't like and goes over to soothe them as a private citizen, sure, he can say whatever he wants and foolish enough to do it as ceo of a private company with public company advertisers, list of great advertisers pulled out, including comcast, nbc being one of them as well apple and

microsoft rather ibm and oracle and other things, that's very damaging as a private company. but as a public company, because he also has quite -- with tesla among his seven other ceo positions it's crazy to damage the brand, damaging the credibility. certainly we have seen there's a whole generation of people buying mercedes and bmws had trouble after world war ii some of the things he was saying about replacement of white people and attacking jews and things like that, how could you be that crazy? that really puts you on the wrong side of history. and promoting this kind of bigotry in a media outlet, of course, is crazy, but imagine being linda, your former colleague, of course, in the world of comcast, even comcast pulled out from advertising with her. how difficult that was -- the rumors were and reports were that she didn't know about the rebranding of twitter to x until the rest of us did.

>> jeff, just in the remaining time we have, quickly on the question of china. has it gone from a liability for corporate america earlier this year back now to being an investment opportunity after the summit >> well, you know, that summit you can understand a lot of companies in transition. believe it or not, if you look at the fortune 500 firms, only 10% of them derive as much as 10% from their revenues from china. in fact, only three companies in the fortune 500 derive as much as 50% qualcomm being top of the list but even apple, it's not 20% of the revenues from china. there's a lot of sourcing from china, which is a different issue. pharmaceutical is 97% dependent. that's why you see some of the people standing and of course some of the chip makers and electronics. but they're all working on plans to somehow derisk and pull out of there and they didn't need to jump to their feet with obviously china is -- i don't know if we call them an adversary. they're certainly a rival. and they have been backing our adversaries. so this is a challenge whether or not it's purchasing

of russian or iranian oil or problems in the south china sea, korean peninsula, environmental issues promotion of public health, china has been a difficult partner to work with and been a lot of questions about the disappearance of some former top leaders to china. >> for sure. if people sense the profit opportunity might be back and that relations are thawing, maybe we'll look back at now as an important juncture in that. >> we almost carried it to dinner time, jeff. we almost got to dinner. >> maybe the economy is really falling there, though. so this is -- the u.s. is in much stronger position relative to china than it's been in some time every one of their markets is down 30% the gdp there has shrunk its growth by two thirds from where it was a decade ago and we were so intimidated by them first year we had capital outflows the foreign direct investment in china is plummeting, one of the reasons that xi is here and collapse of 30% of the real

estate market. >> got to leave it there jeff sonnenfeld thank you very much appreciate it. >> thank you happy holiday. >> you, too. coming up, big tech on deck. nvidia shares pulling back from record highs investors are eager into another glimpse into the chip and ai cycle with the open ai drama we'll get you prepared for they report when "power lunch" returns after it goes back to the $500 mark. [ "i'll be seeing you" by the five satins ]

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welcome back to "power lunch. pressure is on for nvidia. the company is set to report after the bell and the stock hit an all-time high yesterday continuing its massive run this year up more than 240% at the heart of this year's ai boom, investors will be watching closely for any indication of demand strength into 2024. for more on that let's bring in matt bryson, senior vice president of research covering the hardware at wedbush securities matt, good to see you. listen, nothing will ever top nvidia's last quarter where they went from 7 or 8 billion prior

to 11 billion basically at the drop of a hat. i do wonder about a couple of things, though we're getting more clarity on how much of that might have been preordering around concerns china's crackdown. could that be a hangover starting to see more competition in the space because people obviously don't want to have to pay nvidia up to the gills for its technology so, at what point do those concerns start to become more evident in the results, do you think? i doubt it's probably tonight. >> that's exactly it it's not tonight so, i just came back from a super computing conference there are people still talking about 200 plus day lead times to source nvidia gpus so, even with changes in china, i think at this point it's still a little bit unclear whether nvidia will be able to revise its chips to ship it to china or not. i think it's unlikely that nvidia is able to meet demands

through q2 of next year. so the question rather becomes simply, how many parts can they build? and that's going to define what their results are. >> i guess one question -- as i read your note, i found myself thinking that even bad news for nvidia is good in other words, that if they can't meet demand, really what you're saying is that eventually -- is that they will eventually meet that demand, it just won't come as quickly as people had hoped >> that's exactly right, tyler so, when you think about what they're going to guide to -- i think that's the important number my estimates just below 17 billion. of that, like 13.5 is data-centered gpus i think really the expectations

revenues are 18 to 19 billion. the difference there is all in that data-centered gpu line. so, you know, 14.5, 15.5 billion. the reality, though, is if they come up light with their guide, this quarter, that revenue just pushes and the reason i say that is -- kelly brought up competition earlier, when you look at their competitors, so you've got intel talking about shipping more than a billion dollars worth of ai silicon next year. you've got amd talking about more than 2 billion. i think people believe it could be as much as 4 billion. but again, just in terms of magnitude, when you're talking about nvidia doing 15 billion, 16 billion, you know, if they can't meet demand this quarter, it just means their's is next quarter or more demand further out that they can ship to. >> right. >> what else would you be

watching, matt, maybe it's more granular maybe it's not what's the most important data point? >> i think it's really understanding how these models are creating revenue a lot of what we're seeing right now is training models we need so see moving forward is applications that drive reve and so, it's nvidia exact and gillette talking about places they're seeing their end customers come up with new applications that drive revenue and create more demand frp further ai silicon moving forward. >> yeah. no, i think that's a great point. we'll see with 500 looks like in the cards at the close today where we are in a couple of hours. matt, thank you so much for joining us we appreciate it. >> thank you still ahead, a new era for argentina. it's newly-elected president making bold promises to battle

triple digit inflation poverty rise thglolicarnds geopits ou e obe when "power lunch" returns. ♪ something amazing is happening here. data is bringing creativity to life. that's because cdw showed animation studios new ways to maximize their infrastructure, then built a flexible dell technologies data solution. more automation led to greater efficiency, which means creativity stays the star of the show. make amazing happen. dell technologies and cdw.

welcome back to "power

lunch. argentina electing a far right outsider in its presidential elections as the country dwra grapples with one of the highest interest rates and poverty he ran on a platform of cutting government spending which our next guest is something the country hasn't seen in probably 70 years now joining us to discuss what the election means for argentina, the rest of the world and the dollar is michelle cru caruso-cabrera >> what is extraordinary about the win is that in the last 70 years there hasn't been a single candidate that has run on cutting spending, not a leftist because they would run on spending more, not a conservative candidate either. he ran on cutting spending, cutting subsidies, cutting welfare, reducing the number of ministries. >> getting rid of the central bank. >> privatizing state owned assets and won handily by 11 points, in this day and age is basically a mandate considering

how divided the world is. >> can he do what he said he would do or will the deep state derail him >> the previous right wing president, two presidents ago, three presidents ago, has brought all of his staff to back him up so he does have the know how and the capacity the likelihood the central bank as someone who is very familiar with the process of dollarization, which is what he wants to do, in other words, they're not going to have an argentine currency anymore >> he's never held public office before. >> he hasn't it is becoming increasingly common in the world, isn't it? he's an outsider, he ran as an outsider like trump, he ran against the swamp and argentina, they call it la caste, he's got a lot of stylistic comparisons to trump, but not economic >> substantively, he points out that la caste is the only one

who has benefited and one of the highest gdp economies and now they're 174th poorest country. >> 40% of the population live in poverty. >> so the fascinating thing about this, his platform, his criticism, the fact he won all points in a very positive direction for argentina. but dollarization would be a catastrophe for the economy in the very, very near term the question is, how does he really try and -- could he succeed in implementing something like this and it has been not a great policy is my understanding for any country that tried to dollarize. >> the concept of dollarization is really to take away the power of printing money to lead to inflation. it is the same concept behind the euro to take away the power of printing from individual governments so that they wouldn't have these constant psy cycles of high inflation it is the way to break the linkage. dollarization, they have no

dollars. yes, they are -- he is going to struggle dramatically. i would say two things there is going to be incredible inflation no matter what in the previous three months, the current government had cut taxes and increased spending dramatically there was a debt bomb coming anyway they had already gotten the percentage of government spending as percentage of gdp to 40%. that's what we did during world war ii and we got to 37% during the pandemic in the united states that's the level of spending they were doing. it is going to be very hard, probably the first thing he needs to do is needs to give confidence to exporters. how do you get dollars sell wheat overseas, oil, that will bring you hard currency build up currency so that way you can start to dollarize if you would like to do it. there was going to be massive inflation no matter who won. >> this feels like it would be deflationary the economy would contract so severely or especially if they were -- i'm just curious, maybe there is half measures they

could take steps in that direction but it would be fascinating if he tries to do this. >> it will be painful. i think he won because when you have such a huge percentage of the population suffering under the old way, they'll take a new way. you know who got him to office, young people and the poor. overwhelmingly supported him they had enough of what has been standard operating procedure in argentina for decades now. it is going to be dramatically different. i can't tell you how intensely focused he is on trying to make the economy more competitive he gets lots of comparisons to trump. but trump is campaigning on imposing tariffs on nearly everything that comes into the united states. milei wants to eliminate all tariffs and export tariffs, do all these things that would make argentina more competitive favorite, at first, it will be very

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icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot. welcome back >> less than two minutes of the show. >> now we have even less. >> let's tell you about a couple more headlines today, starting with jeff bezos selling shares of amazon. according to an s.e.c. filing, he sold 240 million worth last

week sources telling our own david faber that bezos will be selling even more shares, but he still holds only slightly less than a billion shares of amazon, which is about 10% of the company. >> good for him. i hear he's maybe moving to florida. >> on that note, i think that -- >> is he getting remarried a wedding to pay for. >> i heard about that as well. >> speaking of florida, the miami dolphins may be adding a big fish to their ownership group. citadel's ken griffin in reports to buy a minority stake in the team from steven ross. this is according to sportico. he is building a big house down there in florida and he's got 36 or billion dollars to spare. >> if it falls through, maybe bezos can take a crack at it and they're called soft skills but can be hard to learn colleges are teaching students how to talk to each other. while your education and resume may help you land an interview, people skills help you land a

job. >> it is interesting i watch my son and his comrades and they're usually texting one another. they can be having a same conversation -- >> my oldest is 5 and i'm already at war. >> hold it off hold it off. no phones. no social media. thank you for watching "power lunch. "closing bell" starts right now. all righty welcome to "closing bell." i'm scott wapner live from post nine at the new york stock exchange make or break hour begins with the earnings report on nvidia set to report in ot. so much at stake no stock in the s&p has done better this year shares up 240% that's all it is only up more than 20% this month alone. and it is trading right around an all time high as well we're going to race you up to the numbers with key shareholders and top analyst stacy rascomb. your score card with 60 minutes to go in regulation. that stock has been in the red all day long that's following five straight