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happy hump day. alongside kelly evans, i'm dominic chu. the year over year number was 2.6%. getting closer to be in line with that fed target, kelly. and that's maybe one of the reasons why you're seeing at least a little bit of optimism today. >> speaking of getting over the hump, we keep thinking we're going to lose momentum on markets, lose momentum on bitcoin, but, no, we're on the other side. president trump continuing to add members to his administration. elon musk, vivek ramaswamy will head the department of government efficiency or doge, doge is worth $60 billion now. >> department of government efficiency. it is very -- it is almost ingenious. >> it is. doge. you got the coin going up. >> it builds inflation into the code. bitcoin plus inflation. bitcoin, we can argue about the merits of that, breakout relative to gold. doge, come on. >> dogecoin, by the way, is soaring on that department of government efficiency news.

and we are all very excited because the governator himself, arnold schwarzenegger, will be here in person on set with us here on "power lunch." he's teaming up with medical technology company zimmer biomed as their new chief mobility officer. he endorsed v laars in a lengthy post on x, a big supporter of hers, a fellow californian, if you want to look at it that way. there were battle lines drawn. interesting to hear what he has to say about the environment right now. >> i want to know what he thinks about doge, not the coin, the idea, the construct. >> in california, he did make a big push for trying to trim and make government more efficient, it will be a good conference. >> he'll know better than anyone how hard it might be. markets and the latest read on inflation. cpi for october the headline increasing .2% in line with estimates. the core was hotter. here to break down what it all means, brian obson.

i'm in a sticky camp on this one, brian, but the markets are pricing in higher odds of a rate cut this december now. higher odds in jan and arch, but they think we'll be going every other meeting. >> it does seem like that. when we were talking about it on our investment committee here, we were looking at the numbers, i think we agree with you, that it is going to be higher for a longer period of time. but that still gives the fed room to continue to cut because if you look at real interest rates, which is what the fed is mostly concerned about, even at around 4.5% or 4%, that is still at a faster run rate than overall inflation. so, even if we peter out here at, like, 2.5% inflation year over year, they could really cut rates down to 4%, 3.5%, and then we would be at a neutral stance. monetary policy is still restrictive. it is almost as though the fed, they're just slowly taking their foot off of the brake with the rate cuts. they're not pushing on the accelerator yet. >> so if rates are restrictive,

so, restrictive with, like, 2022, the fed raises rates, after that massive inflation, the markets take a nosedive. that feels like restrictive policy. now we have stocks at all time highs. what does that tell you? >> yeah, that's a really good point. we do see the equity markets at new highs. you also see credit spreads very, very narrow. it doesn't really feel like financial conditions are restrictive. it seems like financial conditions are actually pretty easy. but it is pretty easy for those who can get it. if you're actually, you know, some of the smaller businesses, households, the cost of credit is still very high. the senior loan officer opinion survey really shows that banks have heightened their credit standards and there is not a huge demand for borrowing. so, you know, financial conditions are easy if you want to borrow at these levels. it is just that a lot of households and smaller businesses aren't showing that they have a lot of appetite for borrowing at these rates. >> brian, it is dom. credit risk is not really out there, at least that's not what

the government bond/corporate bond/high yield markets are telling us right now. we also have liquidity conditions that are, as you point out, relatively easy, okay. is there anything that can derail the upward momentum of this market? it seems like there is nothing that can take this thing down. >> it feels like there is a bit of momentum here as you were talking about at the beginning. that's the thing with momentum, it tends to beget more momentum. you can get trips along the way. i think that we are going to see that, especially as we get into the new year. you're probably going to see some of the economic data, especially let's think about gdp numbers, if we look at trade data, people are anticipating we're going to be seeing higher tariffs, they're probably going to be accelerating imports and imports just through the mathematics of gdp calculations is a negative on gdp. people might be think, well, are we building up too much inventory, making a bet on these

tariffs? some of the distortions, i think, are going to put some worries at the forefront ofmind. right now there is a lot of optimism. at what point do we tiptoe to the point of what are some of the side effects of the policies that could be coming down the pipeline? >> can you leave us, brian, with some actionable advice? you know, given where we are with valuations, with multiples, big argument over small caps, anything tactically that you want to leave us with? >> yeah, i think one of the biggest themes i would really highlight is the idea of bigger deal flow and merger and acquisition activity. a high multiple company purchasing a lower multiple company is a good thing if you're in that lower multiple company. and those oftentimes the smaller companies within that space. if we're entering into a period where you're going to have a more accommodating department of justice and federal trade commission, for some of this deal activity. that could really read down to the benefit of small and midcap companies. i think there is a valuation argument for small and midcap, a

cyclical argument and then also perhaps, you know, an acquisition argument for a lot of the firms. >> all right, and we have been talking about stocks like apollo, goldman, the investment banks, which really reflect that optimism. i like that point about multiples more broadly as well. thank you for your time today. brian jacobson. >> thank you. there is a lot of focus on debt and deficits as president trump prepares to take office for a second term. we have gotten new data on government spending including how much it costs to service our national debt. megan cassella is live with those. they got to be staggering numbers, they always are. >> right. new treasury data out now shows the government spent $82 billion on interest costs, just in october alone. that was the first month of the new fiscal year. but that is actually an rothe s year ago. it is progress made in reducing the nation's debt load. overall, for the month, treasury ran up a deficit of $121 billion on an adjusted basis, not

exactly a great start for the fiscal year. that was due both to lower revenues, which were down 19% in part because of lower corporate taxes coming in and it was higher spending, spending was up an adjusted 8% overall. and that higher spending was driven in part by the department of education, costs there for the month up 19% from the same month a year ago. and that veterans affairs, they were up 17% there. and, guys, i want to add, we get this glimpse at the treasury budget every single month, but this comes on the same day we're talking about elon musk and this new department of government efficiency which has a goal of cutting $2 trillion out of the $6 trillion spending budget. so those are by no means the largest buckets of federal spending but they are two areas where there has been a lot of focus or discussion on cutting or eliminating the entire agencies. if you want to cut a third of the budget, i guess you do have to start somewhere. >> that conversation is just going to get more intense.

megan, live at the white house on interest costs, thank you for that. yields are holding steady after that inflation data on the cpi this morning. let's get out to rick santelli in chicago for more on today's bond trading action. rick? >> well, i'm not sure if i would call them exactly steady, but let's start at the beginning of the story, shall we? i never thought cpi would turn into a rorschach, but it has. expected, numbers were as expected. but that doesn't dismiss the fact that it is hot. if you look at year over year core, remember, core used to be the definitive metric that the fed used. but it isn't anymore. all of a sudden, it is just year over year, because that was a little cooler at 2.6. but you see that chart, 3.3. does that look like it is going anywhere near 2% anytime soon? no. inflation is sticky. now, if you look at intraday of two-year note yields, you see everything you need to know and all our guests have been talking about. two-year yields are lower.

as they sit, they're down half a dozen basis points. why? because the market is pretty smart. they know that powell and company are going to ease. they pretty much ceded this and haven't changed their story, no matter really what the data says. let's look at an intrai did day ten-year note yields. like the story we just heard on breaking news, debt and deficits aren't going to go away. there is definitely an anticipation going on that pushed equities higher, maybe more common sense policies ahead, but it is not going to happen overnight. servicing the debt is going to keep going up for a while, and the markets really is responsive to that as well. so the curve has steepened. it has steepened up to 17 basis points. the magic number there is around 20 to 23 basis points. if it takes that out, watch for a little more electricity in the long end. but the end of the story here is pretty easy. the market and equities is probably going to do fine, because it has the carrot of the

fed. the long end is going to pay attention to the data. what is the trade for the next six months? steepening yield curve, where have you heard that before? i've been shouting about it for six months. dom, kelly, back to you. >> curve steepeners, very much in play. rick santelli, thank you very much for that. clean energy is preparing for a messy transition possibly. the department of energy is racing to give out money for green projects before president-elect donald trump takes office. now, obviously many are anticipating the new administration will be a boon for big oil and gas, but what other energy policies might we expect? we have that story coming up right after this. >> announcer: the bond report is brought to you by pimco, a global leader in active fixed income.

>> welcome back to "power lunch." a lot could change for the federal government on january

20th. pippa stevens is here with a look at one department of energy program, pippa, that could look very different a couple months from now. >> we're talking about the loan programs office, the lpo, part of the doe and it is a green bank of sorts. they provide financing for companies and projects looking to cut emissions. for the last decade, they didn't do a whole lot. but then under president biden it was really super charged. they had a hiring spree, funds available for lending grew ten fold under the inflation reduction act. they're set to give out $30 billion in loans compared to the last ten years, $30 billion as well. you can see the speed at which they have been lending. right now there are more than 200 applicants looking for more than $300 billion in lending and current and in addition to 17 conditional loans. those are ones approved but not yet paid out. and so the risk here is that

this could all go away under president-elect donald trump. and so now there is a rush to get as much of this out the door as possible, before inauguration day, because while he can unilaterally cancel the lpo, that would require congressional act, he can basically make it go dormant by having someone who is the director who doesn't give out loans. >> so my mind goes to bond yields and to all -- so here we are with this -- are these going to be implemented quite quickly or earmarking funds for projects that might be spending the money and a year or two years time. >> that's where the criticisms for the lpo is it takes a long time to get one of these loans. and that's because there was back in the day there was a loan so solyndra that went belly up. over that, they implemented a lot of very strict rubric, very strict framework for who they give out the loans to. once you get it, the company can build their factory or scale their technology and then pay it back to the government over time. and it is competitive.

and for a lot of these new technologies, you might not be able to get that in private markets because you don't have the experts or the scientists to evaluate. if you have the lpo, that stamp approval from the government, that can then let some of the private lenders get on board with that project and say, okay, it has been approved, we're good to go, we can back this company. >> now a real sunset, but effective sunset by the time it is done. pippa, thank you very much. lpos. so what could the energy agenda look like under president-elect trump's new administration? our next guest says while there are some pros, there could be some cons as well for the oil and gas market. joining us now is bill perkins, president and ceo at schuyler capital management. you just heard pippa's report about this balancing act that we're seeing between green energy and traditional hydro carbon energy. the presumption is that it is just all oil and gas, drill, baby, drill and that's basically is. but it is much more nuanced than that. >> yes. i think this incoming administration is pro energy of all kinds, whether it is

nuclear, renewable, natural gas, and so any type of energy delay or delay of the united states from producing any type of energy, they're looking to remove those delays, those bottlenecks, and those frustration points. so we should see that happening very quickly. i think the first time this administration came in, it took a while for them to get their feet wet, to understand how things work, they now understand these frustration points and they're looking to come in, hitting the ground running. >> the markets have already made at least a near term verdict, right? we have seen clean energy companies like solar companies see their stocks relatively lower and in many cases absolutely lower compared to oil and gas stocks. how exactly do investors navigate this kind of environment? are there relative value trades and how do you position port foal dwroez portfolios to allocate to all different sectors? >> i think people are worried about the incentives, the

inflation reduction act, those types of things going away. i don't think that will be the first thing. the first thing will be positive for them. whether you produce solar panels or transformers or any kind of renewable product, you have to get a permit. and the biggest issue we have in the united states of america is the permitting times are too long. there is a wing within the epa and the government that is basically an antidevelopment of any kind of energy source. and that is hurting a loan to value change in renewable energy. i think they're going to benefit to begin. and there is some odds that the i.r.a. gets reduced or something happens with that. but i think the main bottleneck for energy production in the united states of america is the weaponization of the permitting system. crude oil, on the other side, i think the current administration has turned a blind eye to some of the sanctions violations. they're not really big on enforcement, we're big on

handing out naughty boy slips and we know where the sanction violators are going, who they're meeting up with, et cetera. the enforcement has been a little lax. i think this new administration is going to take a much tougher stance on enforcement. >> i want to ask you, the administration has -- trump has reportedly considered an energy czar who would go and unwind a lot of the biden kind of climate rules. at the same time, some of the business leaders, i believe exxon, was maybe trying to communicate and say, look, if every four years we go totally one direction and then totally in another and totally back and forth, it is hard to get to be able to invest in projects with clarity in the long-term and if we want low energy prices, we need to know, you know, have people put capital to work over 10, 20-year period of time. do you think there is truth to that, we're seeing too much volatility or do we need to turn back -- turn a page from what took place during the last four years? >> i think everybody wants clean air and clean water. and i think the people coming in have kids and families, et

cetera. what they're trying to get rid of, the obstructionist attitude, the inability to use electronic communications using snail mail, the attempts to slow down reasonable permitting. that's the part where they're going to come in and rip things up and roll things back. as far as on the legislation side, on the epa rules, and clean air act, i agree with the ceo. you want stability. stability breeds investment. and so we want the rules to be followed. we don't want obstructionist wings within the government, even though you have a -- the cleanest renewable plant, but they are slowing you down with permitting times that destroys your ability to bring this facility on, whether it be solar or wind or hydro or geothermal. i think there is a balance that needs to happen. and some stability that needs to happen. but currently the incoming administration is set on blowing up anything that is obstructionist or weaponized.

>> all right, permitting sounds like it could be one of those first avenues to explore. thanks, we appreciate it, bill perkins. breaking news on the election results for the house of representatives. emily wilkins with the details. emily? >> reporter: hey, kelly. nbc news can now call that the house will be controlled by republicans. this isn't a giant shock for those of us who have been following the races closely. but it now is official that the republicans have clinched the needed 218 seats to control the chamber next year. now, there are a number of races that have not yet been called. we're assuming some of those will break for democrats. we expect republicans to pick up a few more. what this basically all means is that republicans are going to once again be working with very tight margins in the house, but, of course, this time they get to do so in an environment and in a government where things are very much in their favor. they have that trifecta, the house, the senate, the presidency, president trump was meeting with house republicans a

little earlier today, really kind of getting everyone's spirits high up there, talking about the need for unity at this point. of course, last year we saw a lot of chaos with house republicans, a lot of disagreements over the speaker, over various policies. and i think trump was trying to now set the tone that everyone does need to work together under this unified government, but, of course, now that the margins are going to be close, that means only a few lawmakers can, again, continue to hold up major pieces of legislation. so we're going to have to see how this plays out. it is a bit of a different vibe, but once again, the math looks quite similar. >> and, emily, was there anything to ask in terms of the leadership? >> reporter: for leadership, we're looking at speaker mike johnson, majority steve scalise, whip tom emmer, the top leadership remains firmly in place. trump has thrown his support behind them including mike johnson. we do have a couple other lower leadership positions that are yet to be decided upon. at this point, the team we saw last year is going strong into

this year. they won the house, they won the support of trump and that last piece may be the most key of all. >> red wave is official. >> that's right. emily thanks. emily wilkins. should you short the world? carter worth is looking at the chcatenils for the msci world index and it is not looking good. we'll discuss in market navigator next.

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welcome back to "power lunch." a quick check on the markets. we're off our best levels of the session, but still fractionally higher. the dow industrials up by 100 points, a quarter of 1% gain. similar for the s&p 500, which sits at just below the 6,000 mark, 5996 the last trade there. and the nasdaq composite, 19,300, up .1%. we talk a lot about how specific markets around the world are doing. but our next guest is taking a more global view. we're going to zoom way out, way out, to the msci all country world index, which measures the performance of nearly 3,000 stocks both from developed and emerging market economies. so, joining us now is carter worth, founder and soviet of worth charting. his clients have a mixed view on

where that index is headed, but his charts have a very firm indication. carter, take us through and i'm not going to bury the lead here, why you're negative. >> sure. so, we'll look at the chart in a second. interestingly, when sort of polling institutional portfolio managers post election where they think equities is an asset class are headed, on three to six-month basis, fully half think it is quite robust ahead, and equal size is the group that says this is exactly where you're starting to get a pullback. a lot is priced in. the word expensive is never used by me because valuation is a terrible timing tool. i would argue the word full is the appropriate word. global equities is an asset class are full and maybe we can look at a chart or two, but the msci all country world index as you pointed out is some 3,000 stocks, about 80 trillion in market cap, the s&p is 45.

and what you'll see here is that we're up against an important internal trend line going back on a multidecade basis. and so do -- does one make the bet that we exceed, we break out to the upside or that it hits its head? you can see here, it is very clear, that almost -- well, the expression to the penny, the index has ricocheted off the converging trend lines like a pinball machine, in perfect order repeatedly. each and every time at the upper band here, it has struck its head. so we're thinking that that indeed is what is happening. or going to happen despite all the day to day euphoria. we're in the camp that fully half our clients are, that it is not all sort of great things ahead, that much, if not all, on an intermediate basis is priced in. >> we're going to keep that chart up for our viewers now. listeners on sirius xm, you're seeing an ascending triangle, it

keeps going and getting narrower and narrower here. when it bumps up against the bottom line, it could bounce as well from there. isn't it important to know what is going to happen when it resolves itself? even though short-term, is it a short-term very bearish view or short-term tactical or due for a pullback view? >> this is a five-year -- it was a 30-year chart, the part highlighted, that's the past five years, and that's that chart, these are -- these lines, i haven't manipulated them, to make them fit, it is what it is. so just playing the arrows, playing the pinball machine, we're make the bet it will falter here and pull back. to your point, if it gets down to the lower band, i think one would want to anticipate some sort of bounce. or said differently, sequencing has been very clear here. and let's benefit of the doubt stick with sequencing. >> carter worth with that trade on the msci all country world index. thank you very much. we'll see you soon, sir.

>> bye. >> kelly, back over to you. thank you very much. coming up, medical device firm zimmer biomed announcing a strong new partnership. arnold schwarzenegger taki ongn the new role as the new chief movement officer. he and the ceo join us next. >> announcer: market navigator is sponsored by charles schwab, trade brilliantly.

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cnbc news update. what we have right now is that we watched oral arguments where the supreme court appeared to keep the door open to a class action lawsuit against nvidia. the chipmaker is accused of securities fraud for allegedly misleading investors about how much its sales depend on the volatile cryptocurrency market. a decision is expected by the end of the term in june. a coalition of gun groups is suing the state of maine over a new law requiring a 72-hour waiting period before firearms purchases. they argue the measures is unconstitutional. maine passed that waiting period law after an army reservist killed 18 people in the

deadliest shooting in the state's history last year. and amazon is hoping to win over sheehan and temu shoppers where every item is less than 20 bucks. amazon haul will offer free shipping on orders over 25 bucks or $3.99 shipping for orders below that threshold. the items will be delivered within two weeks, but one catch, anything that costs you less than $3 can't be returned. so, you know, kelly, good for amazon, bad for the land fills. >> $30 to return. so, anyway, contessa, thanks. now to a partnership involving one of hollywood's biggest stars and fitness buffs and medical technology leader. zimmer biomed is teaming up with arnold schwarzenegger who will take on the newly established role of chief movement officer. schwarzenegger will work closely with the orthopedic company and support individuals who increase mobility and maintain joint health. here on set for a "power lunch"

exclusive is arnold schwarzenegger, hollywood icon and former republican governor of california, and ivan tornos, president and ceo of zimmer. welcome to both of you. ivan, a splash in your first year here. you got arnold. >> you do things big, do it big, right? >> whose idea was this? >> i can tell you we're beyond excited. we have a bold mission, ambition, we want to solve some of the most meaningful healthcare challenges and if you go bold, you got to go with the terminator. we hope to terminate pain and i love the partnership. >> they came to you. have you done a lot of these kinds of partnerships so far? what made this one stand out? >> well, first of all, i have to admit that him having an accent that is worse than mine was very helpful, okay. we got along right away. we're working for the same thing for the last 50 years, i've been on this fitness crusade, making people be able to move and go out and exercise, not just to

lift weights and puff up and get muscle, be the muscular man or anything like this, but just do sports. and as you get older, of course, you get thedamages on the joints and people talk about joint replacement and things like that and they're afraid of it. this guy says, i go and tell people, i had hip replacement and all those kinds of things, i'm like the real terminator, i have so many artificial parts in my body, i said i know how to talk to people, i talk to them every day, in the gym, around the world, and pump them up and tell them go and replace your knees, go ahead and replace your hip if you need to, it is always the last resort, but now they have the technology to do it. zimmer is a fantastic company. i've read up on them. they're the best research, they have been around for 100 years and they are not only doing it for the people who can afford it, but also people that cannot afford it. they're the martin luther king

hospital in los angeles donating parts for them and operations and all this stuff. it is a great company. and i think it is one of the things where one and one will become three. >> for the next generation. this is interesting because there is probably no more evident trend in demographics in the world than an aging population that needs to be fixed as they get older. what does the landscape look like for orthopedics, for this kind of care, and what exactly are you the most worried about? is it the track of insurance, is it the kind of spending, is it government reimbursements. what weighs on you for the next 10 to 20 years. >> great question. let me bore you with data points and then the problem we're trying to solve. to your point, every day in the u.s., 10,000 to 12,000 people are turning 65 years of age. we get older, we want to live longer and be active. the problem is those waiting on

the sidelines to get treatments and the governor's point that are afraid to get a treatment. arthritis impacts 600 million people on earth. osteoarthritis, knee pain, hip pain, shoulder pain is the lion's share of the patients. only 5% re doing something about it. with the partnership, we want to bring those patients to get treatment. minimally invasive, not what it used to be, you don't have to live in pain for years. and i think this partnership and the technology we're bringing to market is going to change the way we take people to other spaces. >> can you talk about weight loss drugs on the market. what is your knee jerk reaction to this? is it good to take it so people can avoid being obese and injuring themselves? >> i personally don't know enough about it. but i've seen the effect it has on some people. i think that medical technology and all the stuff being done is

all good, but shouldn't abuse it. i don't think that the young people that have ten pounds overweight should immediately go and take this kind of medication and stuff like that. the key thing here with us, is to create more movement, and, of course, the movement is important because you came through a natural way, lose weight. the more you move, the more you exercise, the healthier you're going to get, the bet terse go better it is going to be, the longer you live, and this is why it is important accomplishing the goal that zimmer has to have more people feel more comfortable with the idea of getting replacements. and i see in the gym people, older people, all the time, walking around, in pain. and i just tell them, there is no reason anymore to be in pain. and there is no reason anymore to take pain medication because

there is now a way of going to replace the body part that is failing you because of wear and tear. go and get the research done. go to the doctor and move forward and so many people do it and i'm happy. now it will be a different extent where it can reach out to the world and use my platform and popularity and my name and everything and my involvement in fitness and just really pump everyone up and say, hey, don't ever give up. we're going to go march forward. whatever you need replaced, replace it. we're going to move, move, move. if you rest, you rust. >> this is the interesting part about the discussion, you mentioned movement. my doctor tells me the same thing. i'm closer to 50 than 40 these days and the one thing she keeps telling me is you got to keep moving around. it is the reason why i ditched my analog watch, many know the watch i've been wearing and i've gone to an apple watch, it tracks my movement and calories and everything. does zimmer biomet have this

idea in the future, you can look at the products have them be part of an ecosystem through your own doing or partnerships to work with fitness and technology companies to make a more wholistic approach toward movement and pain and repair. othe best, we partner with apple and through iwatch you connect data on how you behave before surgery and after surgery, the same watch actually tries to recover. we partner with microsoft, we do physical therapy remotely. we collect data before the surgery, during the surgery and after the surgery. through a.i. we are predict outcomes and treating different patients in a different way. super scaleable and what you call the future, we're doing already. >> arnold, i want to ask you about politics while you're here. >> we have to. >> i don't know if you want to go there.

about up there is a lot of talk with the new trump administration to shaking up the approach to health and wellness in the country. rfk would be part of that. is that an approach you think is welcome and do you have any other thoughts about that team as it is shaping up and looks to take power next year? >> as long as zimmer is included in the plan, i'm going to be happy. because i tell you, no matter which way you cut it, in healthcare, you got to go and face the fact that people when they get older need to get help. and a lot of times that is through joint replacements. hip, knee, or shoulders, elbow, wrist, whatever it is, there is no reason to go and suffer and that's the bottom line. doesn't matter what the trump administration does, this, the zimmer plan and philosophy, has problem part of the healthcare program. >> we talk about this department

of government efficiency, this doj to so to speak that is comi up. you at one time, i'm a california native, i know this, you worked on trying to optimize government operations, efficiency. is this something that can be done on a large scale, like the united states, and if it can be done, what exactly is the timeline for making these efficiency type gains a reality. can it happen in four years? >> well, that is questionable. i mean, you have to try it because there is a lot of waste in government. i've seen it in a state level. i see it in the local level. there is a lot of waste. but the bottom line is, like, with zimmer, there is no waste. we move forward there. see how i move -- >> we're watching. we're watching. >> this is bridging. you get a question about -- and

you answer with a z. but the -- we can talk another time, we can talk about politics and the conservatives, about the liberals, how they run the country, which is a better with a i to go, way to go, we can ta that. but today i'm here with my friend, and we are both excited about working together and having this great partnership and really seeing exactly the future the same way. >> i want to chime in and talk about the word that got my attention, efficiency. here in the u.s., we spend $4.7 trillion in healthcare. we, account for 10 to 15% of the overall cost. what we need to do, need to drive efficiency. spend less time in a hospital, if you do need to go to a hospital, other products are

going to surgical centers, don't need to go to the hospital. potentially don't need to go to a physical therapy location. potentially you get the detection earlier, which we're partnering with the governor, you need to go through the tax cycle. don't need to spend as much product. so that's the real problem we're trying to solve. how do you make the treatment shorter, how do you drive efficiencies and how doey you k on the other healthcare based on what is happening from a health perspective. >> this is a whole other can of worms. if there is anything you can do to shed light and the experience of using healthcare, even for people who have it is a complete nightmare. it is incredibly complex, it is difficult to understand, you get turned down for treatment all the time, you're constantly checking with your provider and trying to figure out your deductible and what portion of it is -- that's the consumer experience, let alone what you're doing with providers. it seems there is so much room for improvement on that front. >> that's the power of the technology you bring through a.i., predictive analytics,

understanding the patient early on, even before he becomes a patient and personalizing the entire journey. that's what we are doing. we're just getting started. >> arnold, are you going to get shares of the company? you're down this year. >> i don't think -- he's got plenty of money. >> the company is not mine. no, but let me tell you something, you talked about physical therapy, this is another very, very important aspect, and i know that because my girlfriend has elite ortho sport, which is -- >> i love physical therapy. i'm in it for two different things now. i agree with you. >> a huge clinic where hundreds of patients come in every day, and she has, like 40, 50,000 patients a year, really staggering, but she talks about what you talked about, to get the right kind of reimbursement for patients from the healthcare providers. it is really a shame sometimes

of how they cut back and make cuts. and it is unfair to the patients, it is unfair to everybody. so this has to be all sorted out. but i think the combination with having those kind of magic pods, that zimmer is producing, and the combination with physical therapy and have the right surgeons and all of that is extremely important. >> i wonder, as well, if you take a look at extending somebody's useful life, not to look at this in such an objective or callous way, but this is all about trying to make our quality of lives better, extending our lives and everything else. we're seeing that same kind of thing play out and giving new leases on life toward athletes, actors, and hollywood right now, there is a change that -- a paradigm shift, new technologies and everything else, how exactly then do actors like yourself or people who you know in the industry, how exactly do they move forward knowing that they

are aging, and it can be something they work with. and what is the state of hollywood when it comes to things like fitting into this new type of paradigm? >> i think that people are in getter shape than they were 20 or 50 years ago because everyone is working out. there is everyone now -- think about that, 50 years ago, when they started pushing the idea of exercising every day, there were no gyms around. now every hotel has a gymnasium, with cycles, stairmasters, ellipticals inside, weights, machines, everything that you can think of. every military station, every fire station, every police station, every university, every sports team, everywhere you go there are gymnasiums. it has changed. people now are much younger for longer period of time. think about jane fonda. she's in her 80s and she looks fantastic still. and when she was, like, doing, you know, one movie she did "on

golden pond" she was in her bikini in her 50s. that's unheard of. so i remember in austin when i grew up, people in their 50s were sitting in a rocking chair and considered old. this is how things are changing. so you see in hollywood people looking better. taking care of themselves much better. but now with the kind of things that we -- the technology that we have in medicine, you can continue doing the stunts and all the stuff. i'm now 77 years old, and i'm still doing all the action on the movie. i finished "fubar," we shot it for four and a half months in toronto. i'm going on in december to do a christmas movie. you just continue on. it is not like the old days and now i have -- i've got my hip replaced, 25 years ago, i couldn't ski anymore, i had problems with making my turns and everything, now i ski, and

i'm 77, and i ski, i love skiing and every time i see somebody complaining about their knees, i say, don't ski in pain. just doing the three runs and then you have to give up because you have swollen knees. a better way of doing it, replace the knees and go and do the 50 runs a day, and don't worry about it. >> we have to go, but just what is your workout regimen these days? >> bicycle every day for an hour, work out with the weights around 45 minutes and i encourage everyone to keep moving. the movement officer for netflix i was the action officer, and now i'm the movement officer, and it is all about moving, moving, moving. >> ivan, before we go, you're a corporate guy, much like us you're behind desks often, sitting in an office, what do you do at the office to try to keep that movement up? what is a tip you can give our audience here? >> i have been following the encyclopedia of modern body

building since i was a young guy in spain. i don't think i'll be in a bikini soon like mrs. fonda, but i try to stay active and as arnold says, not a big thing you got to do. 15 to 30 minutes per day, walking, staying active is enough to keep life moving. we're excited to be here, excited about the partnership. time to terminate pain with the terminator. >> there you go. gentlemen, thank you, both. appreciate your time. fun chatting with you. arnold chwarzenegger and ivan tornos of zimmer. women transforming business and philanthropy, you can nominate a changemaker until november 18th. just scan that qr code you're seeing on the screen there or visit cnbc.com/changemakers. we'll be back after this. >> announcer: crypto watch is sponsored by grayscale.

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arvados. we will start with rivian, those shares are surging higher today with the ev manufacturer announced a joint venture with volkswagen in a deal worth $6 billion. are you a buyer of rivian? >> we have this as a hold. there was an announcement today. but investors should not assume this is necessary to go through. in the past few years, we had two major deals that did not go through. ford backed out of the rivian deal and volkswagen dropped out of a ford deal. so the auto market is very common to see that these deals do not go through at the end of the day. so, this stock has been down 90% in the last three years. and the sg&a costs are now equal its growth margin. this is never a good sign. also, the debt to equity ratio

is about 100%, another bad sign. though it s revenue growth is compared to 6% for the category, why we have it as a hold and not a sell. it is a difficult market, especially now with this republican administration. >> all right, let's move to cava. that's one we haven't talked about today, and making a huge move after the third quarter results, up 16% or so at last check. keeps having -- is that the same -- am i mistaken, ava, has it -- yeah, look at that. it is only up by 1% right now. what do you do here? >> so cava is a hold. it is a great entrepreneurial growth story. it is in the food market. they have great growth. up 220% year to date, that's amazing. and the total growth is now 43%, compared to 20% for the rest of the category. and the growth per store is great, it is now 18% and that

includes new customers as well as a greater expenditure for visit. so, at the same time, though, the value is now 133 compared to 15 for the rest of the category. so it is -- it is well priced. it is actually the valuation is kind of stretched here. but the revenue growth is double. that's why we have it as a hold or some negatives, some positives, again, this is a competitive market, with very low barriers to entry. so, i would have it as a hold. >> all right, that's two holds so far. finally, there is applovin. that's up over 600% since the start of 2024. one of the top holdings in your global growth fund. why do you like the stock and are you buying more even at these levels? >> i'm buying more, but i'm looking for great entry points. so our entrepreneur model

identified this company in early 2023 as a company on the verge of a breakout. and that's when we got in. since then up 11 times. and it helped us reach 54% performance year to date for year 32 index. this is a company that has revenue growth which has doubled its peers, and then most important statistic here is that the enterprise value is half their peers. it is a solid performance. do we think it is going to do another 600% next year? we hope so. i don't think so. but it is going to be a solid performer. >> all right, eva, thank you very much. eva ados with er shares. so as we talk a little bit about the markets right now, we have the dow up still, but only up 26 points. as kelly points out to the cava chart, seeing the same thing play out across the entire broader markets. dow industrial is up 23 points. the s&p 500 is at 59.88, up 4 points now. the nasdaq is in red territory,

19,261, down about 19 points at this stage. >> maybe throw up the ten-year yield. this is one to watch. rallied, the yield came down after cpi this morning. the line was, well, it wasn't worse than feared. well, 4.45, we made that for us "power lunch." thank you so much for watching today. >> thanks so much, dom. closing bell begins right now. i'm scott wapner, live from post nine at the new york stock exchange. the make and break with great expectations for the economy and of course your money, following the post election stock surge. we'll ask our experts over this final stretch just how long this can all last. in the meantime, show you the score card with 60 minutes to go in regulation. we did have a midday pickup in the major averages, but it's dissipated a little bit. we're still hanging positive on the dow and the s&p. nasdaq is a fractional loser, the