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good afternoon, everybody. welcome to "power lunch" alongside kelly evans, i'm tyler mathisen. nice to have you with us on this monday. markets, a little bit higher today as stocks settle down after a couple of wild weeks. big post-selection rally and a pullback after last week. we'll talk about where we go from here. the dow industrials off ever so slightly. the broader markets as measured by the s&p, a little bit higher. a little bit, maybe, of more calm breathing. >> normalcy, it feels like. maybe not for tesla, though, that is jumping today on reports that the trump team is going to ease rules for self-driving cars. analysts are quite excited about it. the shares are up 5%. uber and lyft are lower on this news, by about 6 and 5%. >> why would uber and lyft go down on this? >> i've been thinking about this all day long. to me, uber is a derivative play of autonomy, they're either partnering with waymo or at some point benefitting from it. you think they would -- i feel

like they should all be trading up in sympathy, even if it's a little bit of a longer run. >> it feels if the rules of the road become more favorable to full-service driving or whatever it's called for tesla, isn't that also going to make it -- >> it would be great for uber and lyft in the long run. >> exactly! >> but maybe they think the near-term is tesla gets a leg forward and the others take a leg back. >> so did you watch the jake paul/tyson fight? >> i didn't even try -- i didn't know who -- >> i didn't try either. >> it's a good thing we didn't. waiting for it to start and the buffering issues. >> millions of people evidently did watch the jake paul/tyson fight on netflix, so many people that netflix could not keep up, apparently. apparently, there were lots of complaints about buffering, as you mentioned a moment ago, leading some to worry, as netflix is set to broadcast to nfl games on christmas day, where they might have, maybe, comparably-sized audiences. >> i think those worries are

legitimate. netflix, listen, this is not the first time this has happened. we had that reunion show a little while ago, that they had issues, issues with this. you've got a couple of months. i would love to know the backstory. how many servers. how many blackwell chips are required. whatever you have to do, be ready for this moment! this is make or break. this is the nfl on christmas day. got to get it right. >> better be ready. >> shares are up, though. >> or you'll get coal in your stockings. let's begin with the markets, as stocks are mostly higher. so after two wild weeks with action driven by the election and politics, where do we stand now? let's bring in mike santoli from the new york stock exchange? is this a little bit of a pause that refreshes? is it a reaction to what some might say are out of the ordinary cabinet choices on the part of the incoming president? what is it that's made the markets slow down? >> tyler, i think a lot of that is all going on. mild retrenchment within a longer-term uptrend.

we're about five days into that process. the market peaked about a week ago, and it showed you there was this really quick grab for the riskiest stuff in the markets as well as cyclicals. the market had a pretty strong, assertive statement right after the election as to what the policy implications might be. tried to reprice in a hurry. and since then, just sort of sorting it out and discerning genuine expected winners from non-winners. and it's really more of a healthy process. a lot of the frothy stuff did come back to earth over the last week or so. what we have today is, i think, you have equity markets still watching the bond and currency markets. you have yields that are calmed down just a little bit. the dollar stopped going up. and so the market can kind of breathe a little bit. and try to figure out whether the aggressive re-pricing, for example, upward of financials and downward in health care makes any kind of sense. bigger picture, the starting point for the post-election rally was pretty evaluated, right? the market had been going up for two years. cyclicals were already

outperforming. we already had yields climbing on the back of better economic data and reduced fed expectations. so it's almost as if the implications, perceived implications of the election result were kind of partially priced in there, in the beginning. so we've settled back in the s&p to the mid-october highs. that was the high before the election. and i think it's a matter of, let's figure out from here, who really needs to chase the market higher into year end. because i think positioning among investors is still pretty full. people are pretty well exposed to this market at this point. >> mike, as we bring in our next guest who believes that the market could experience a period of volatility, given the unknowns around post-election strategy, joining us to discuss, jeremy brian, portfolio manager at gradient investments. so, jeremy, welcome. good to have you with us. how do you see the market moving from here? and you say we may be in for a period of volatility. put some numbers or some sort of texture into that. >> sure, sure. corrections happen all the time,

right? and especially in a post-election market that went basically straight up. so if you're talking about a five to 10% correction, that is a plain vanilla correction. that is not anything we would be overly concerned by, but understand that that could actually happen. and especially around that time. now, given what we think about the economy and if you go longer term from that perspective, would we be using that as a buy signal? probably. you know, because we don't see anything that's dramatically changing from our investable pieces with regard to what's going on in the economy, what's going on with companies. but we did have a post-election rally and we've seen kind of that come back. could that go further than just coming back and go down for a little while? absolutely. and that's where we would probably be looking to be more aggressive at that point in time. >> mike santoli, did morgan stanley just move to -- what did they do?

wasn't wilson always bearish? >> they been bearish to cautious. they've been finessing it. within the market, they've been tacking it in the direction we've actually been going. but basically saying, yeah, we got about 10% upside from here through next year. i think that's kind of proforma. i mean, yeah, it seems like a little bit of a turnabout for morgan stanley, in general, but in general, i'm very mindful of how the strategists will be arraying themselves, in terms of their outlook for next year. if everyone is super bullish and saying 10 to 15% next year, that might not be super bullish, but much more bullish than people coming into this year. then maybe you say, we have the ings in beginning of next year for some kind of a pause. something that tests that bullish consensus. but right now, we don't have enough in terms of sell-side targets to make that generalization. but, yeah, basically saying, when the fed is at least in easing mode to whatever degree, into a sturdy economy, it's been

tough to bet against stocks. obviously, lots of unknowns, we have so many, maybe unintended consequences. we should be on alert for. at this point, i think the upside is the benefit of the doubt. >> do you agree with that? don't fight the fed. if the fed is in a longer term, whether they cut in december or not is to be determined, but whether they're in a longer-term de-escalating interest rates, i guess, is how i would say that. >> bringing 'em down. >> yeah, bringing 'em down. that's a simple way -- how come i couldn't think of those simple words? >> hey, that's what i'm here for. from a bringing 'em down perspective, we absolutely believe that's true. but i'll be interested to find out in conjunction with mike what they talk about when the strategists talk about valuation. so how do they square that?

do they say that valuations can sustain at these levels. we're back where we were in 2021 from a valuation perspective. from our side, that's what we would want to square. right now, 15% annualized growth for 2025, that would just say that valuation is in line with earnings growth. because that's what the earnings estimates are right now. but what we would want to see is how can they justify that component? and maybe it is that the fed is supporting, so the valuations can stay high. but that's what we would be interested in finding out, because that's going to be a big determinant about where the market goes from here, is can we press that higher, or are we in a place where that becomes too much of a head wind to keep the market going? >> and mike, you can weigh in that on. there's also kind of bread and butter earnings that will continue to coming at us this week. i know one of your stock's target, constellation brands. so there's kind of the 30,000 foot point of view, and there's kind of the day-to-day, what are we learning from the companies

themselves? >> exactly. kelly, of course, the story has been coming into this earnings season that we're supposed to see a little more inclusive earnings growth story, which it wasn't going to be so concentrated. it's largely happening, although 2025 consensus estimates are on a bit of a downtrend as we go through this reporting season. i don't think the valuation gets much easier. i do think a couple of kind of talking points that people will resort to here. one is, it's a higher quality index and you have these dominant companies that are 30% of the s&p 500, that have sustainably high profit margins. we've never had these situations before. they can sustain some kind of a premium. the other piece of it is, given that fact, the average or median stock is less overvalued, and maybe it's 18 or 19 times on average. so i don't think there's an easy escape hatch from high starting valuations can implied lower longer-term forward returns. but that doesn't say a whole lot about how the next couple of

years might play out. >> e'll leave it there. thank you both so much. now let's get a quick check on bond yields, which have reversed a little bit lower after starting the day in the green. rick santelli joins us from chicago with more. hi, rick. >> hi, tyler. indeed, if you look at an intraday chart, tyler nailed it. we are drifting lower. we're near the low yields of the session. but here's really what you want to pay attention to. look at a two-day chart. it's what we know is an inside day, at least thus far. meaning, we don't have a higher high yield than friday. we don't have a lower low yield. we're in between. as a matter of fact, this could be the fifth, the fifth session in a row where we close between a yield of 442 and 445. that's really a tight range. and you may say, heck, we're below that now. look at that chart going back five sessions, we were below it many times, and it always seems to come back and close in the low 440s. and this is important. consolidation at this level, i know everybody wants to know

what's going on. look at the long-term chart. it's pretty easy. look at the left side. we've always seen to have a stopper right around 4.5%. the right side has got that little squiggly. that's a weird consolidation. and maybe the most notable feature is that really, since midrate cuts, yields have pretty much gone up to about a big correction. so we're not supposed to say that this is a calm market. the way i phrase it is, it's just stopped going up in yields. and the fact that it's buzzing here really makes it so if we get a close above 4.5%, watch out for a little excitement. tyler, back to you. >> rick, thank you so much. coming up, what is elon musk's plan for tesla? the controversial ceo playing a big role in the trump administration, but so far, it hasn't been so great for tesla. the ev credit many jeopardy, musk distracted. many ev buyers, not trump supporters, but there is some potentially good news today. that is being reflected in the stock. we talked about ate moment ago.

and it has to do with the full-service or self-service self-driving. plus, a potential deal to tell you about. building products distributor qxo is making a bid for beacon roofing. according to the "wall street journal," both stocks have market caps around 6 billion. both moved higher on the news. although qxo is off its best levels adds you see there. "power lunch" will be right back.

welcome back to "power lunch", everybody. president-elect trump reportedly looking to make self-driving regulation a top priority for the department of transportation, once he is back in the white house. that headline has tesla shares up nearly 7% this afternoon. and while our next guest points out that tesla may not be the front-runner in the autonomous

driving race, he does, however, argue, that they own the narrative. he just raised his price target on the stock from 70 to 235. dan levy is senior executive research analyst at barclays covering the auto space. dan, welcome. good to have you with us. >> thank you so much for having me. >> why is tesla seemingly not alone, but why is it benefiting so much from this report that there may be sort of a fast tracking going forth on self-driving cars? >> yes, so, i think we have to take into consideration that part of what's gone on with tesla, and it's not just today, but really in the last two weeks since the election, is really the magnification of the elon premium in the stock. from a fundamental standpoint or a business perspective, we think that that could be mixed for

positive for tesla. slightly negative on the ev sales side. positive from the perspective of easing autonomous regulation, but really what this does is, it's tesla being magnified as a -- the elon musk premium, the can't-bet-against elon narrative. and i think that's a lot of what's going on here. >> so you ascribe it more to musk, his relationship with the incoming president, the fact that he's going to be highly influential and probably will benefit from that, than anything else here? >> that's a lot of it. from an autonomous perspective, this can be a benefit to tesla. elon has talked about regulations, in some ways, as a gating factor on their path of autonomous, but we just caution, to not be too optimistic that easing regulations solves all four for tesla on the autonomous side. in fact, the challenge that they

may have, by easing regulations, specifically, what tesla may be looking for, what others may be looking for is ing state standards with federal standards. this gives you an opportunity to argue with tesla's largest competitor with full self-driving waymo to really fast track expanding to other locations. >> how material, if at all, would the removal of the $7,500 tax credit for buying an ev be to tesla? >> it would likely be net negative. we think that roughly two-thirds of tesla's u.s. sales benefit from that credit right now. we know that it's roughly 30 to 35% of their u.s. sales are leeds. all leases get the $7,500. we assume the leasing loophole would be removed as part of this. and then there is likely another piece of sales that are benefiting from the rest of the

$7,500 credit. so it would likely be negative. what that essentially does is, it's to be considered almost like a price increase. but on the flip side, the opportunity for tesla is to consolidate share within the ev market, because tesla is really the only automaker that is profitably selling evs in the u.s. so as tough as this would be for tesla, it's much tougher for other automakers that are right now losing money on evs, and really, much more so need that credit. >> is the technology ready for prime-time, dan? because i thought i saw last week in the industry publication that tesla's cars are involved in the most fatalities of any brand or something that to extent? >> i think we're going to learn more about where tesla's technology is. i would look at their technology through two lenses. one is on the consumer side. you mentioned earlier this idea

of owning the narrative. they certainly own the narrative on the consumer side. changing the regulations likely means less pressure around some of the investigations they have had from it. they have said that they're going to have an unsupervisored fsd in o locations next year, california and texas. one extra state. we would just caution -- >> have you ever driven a full self-driving tesla? >> yes, i have operated a tesla that is using fs -- >> what do you think of it? >> i think it's impressive technology. it is quite impressive, the way the vehicle operates. i think, though, that there are going to be people out there who

will want to see maybe more certainty on the vehicle operation before opting in to that $100 a month or so. but it is very solid and impressive technology. >> more certainty. what does that mean? is that code for something. what does that mean, more certainty? because i have experience driving with it, too. and i wonder what you describe as more certainty, as what i would describe as something maybe a little different. >> i think that right now, it is operating quite impressively. i think that there's still a question for some people about the comfort level they have when operating this technology, where there's maybe mixed reviews on how much comfort you should have. >> bang! bang. that's it. it is impressive technology. it is really, to me, ingenious, an ingenious piece of software that does it. but the car gets a little

spooked from time to time. and you wonder how much can i really trust that it knows where this big semitractor-trailer is and whether it's coming into my lane or not. it is a question of sort of comfort level. dan levy, thank you for that answer. appreciate it, man. >> thank you, tyler. thank you, kelly. >> you're very welcome. >> i still have not experienced. >> you should do it! i'll have you come in and i'll give you a ride in my tesla, baby! >> would we need a number -- should both of us experience this -- do we need a number three just here in case it doesn't turn out well? >> yeah, a substitute. the holiday shopping season is about to kick off. but while most investors are focused on the retail es, our guest is looking at some different under the radar payment plays. we'll explore that in market navigator after the break.

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(vo) whether your. phone's broken or old, we've got you. with verizon, anyone can trade in any phone, any condition. and get iphone 16 pro with apple intelligence, on us. and ipad and apple watch series 10, all three on us. that's up to $2,000 in value. only on verizon. welcome back to "power lunch." dow is negative today. it's been choppy all session long, but we're headed back towards the morning session lows, down 119. the s&p is up a quarter percent, a little bit more for the nasdaq. and we are talking some retail. we've got earnings this week, the holiday shopping season is

about to kick into high gear. but my next guest is taking a closer look at the buy now, pay later space and is here to tell us how big a role he thinks it will play and where the opportunities might be. jason is with b of a securities. i also think if they move forward with trying to cap credit card rates, this will get more and more scrutiny. where's your attention in the buy now, pay later space? >> hi, kelly, great to see you again. within buy now, pay later, the first thing i want to say is i think there's a very strong value proposition for this product for both consumers and merchants. and that is really the key to unlocking this market. buy now, pay later is currently only in mid-to-to upper single digit percent of total ecommerce spending. there is a lot of runway still for this market. and given the strength of the value proposition for both consumers and merchants, we expect to see solid growth

continuing, so one of the themes we are looking at just the relative growth rate of buy now pay later spending volumes versus the broader market. so give you some context, buy now pay later providers like affirm and after pay and klarna, they're growing their volumes 20 to 30% right now. if you look at visa and mastercard, who are a barometer for the overall u.s. payments market, they're growing around 6% on total volumes. there's clearly a share story here for buy now, pay later. >> let's make this very actionable, very quickly. you like square global payments, correct me if i'm wrong here, fiserv. why do you like these three? what kind of upside do you and see in what period of time? >> i'll start with square, now known as block, hard for us to get used to, but that's the new name of the company. they have an attractive two-sided network. direct relationships with consumers in the form of both their cash app business as well as their buy now pay later

business, which was afterpay, that they acquired a few years ago. and then they have relationships with u.s. small businesses, with merchants. that's their seller business. we think that there's optionality here for volume growth to start reaccelerating, incrementally in the fourth quarter of this year and perhaps to a greater extent in 2025. global payments is a bit of a turnaround story of sorts. trading at a pretty depressed valuation. we think there's too much negativity baked in here. we think their exposure could be helped under a trump administration, assuming it ends up being positive for the small business part of the economy. and you mentioned f serve. it's more of a software play, more on the banks side of things. and they have the clover asset

for small business, which has been a real nice crowned jewel. >> the credit card processor that she has is always driving her crazy, so i said, i'll ask. maybe clover. i don't know if that qualifies, but maybe she should look into that. >> she could look at clover. she could look at square. there's more options than ever, but, yeah, she can definitely get some good nctionality out of either of those platforms. >> investment ideas and business ideas. appreciate your time this morning. >> all righty. coming up, netflix's tyson paul boxing match bringing in some heavyweight viewership, but the stream took a lot of hits. now we are -- so now we are questioning whether thple atform can handle the nfl's christmas games. ho ho ho. we'll discuss that one, next. (cheerful music) (phone ringing) [narrator] not all multi-millionaires built their wealth the same way, you have... the fearless investor. the type a cpa.

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♪ ♪ ♪ something has changed within me ♪ ♪ it's time to try defying gravity ♪ ♪ ♪ welcome back to "power lunch." i'm kate rogers with your cnbc news update. israeli prime minister benjamin netanyahu said today that israel's air attack on iran last

month hit an element of the country's nuclear program. he didn't identify the component, but suggested iran's path to a nuclear weapon had not been blocked. israel launched the retaliatory attack against iran last month, weeks after tehran launched at least 180 missiles into israel. a new pew research center survey showed about one in five adults get their news from social media news influencers. that number rises to 37% for those 18 to 29. pew researchers say the data shows news influencers are emerging as a key alternative to traditional outlets. and new york city's mta board voted to approve governor kathy hochul's amended congestion pricing program today. last week, hochul proposed reducing the base toll to $9 to $15 for drivers entering manhattan below 50th street. the changes now need a federal sign off before the first of its kind toll can go into effect on january 5th. tyler, back over you.

>> very interesting. going to make a lot of drivers edgy in new york, not that they aren't already edgy in new york. >> right, right. >> kate, thank you. welcome back. netflix is higher today. the streaming giant coming off a huge weekend. the mike tyson/a jake paul boxing match reaching around 60 million households, but it wasn't without problems. many viewers found their apps crashing or the stream freezing or buffering or whatever! the issue seems to be that netflix has not yet mastered high-volume live events. we saw similar backlash over the "love is blind" reunion. and all of this is raising concerns about whether netflix can handle streaming the nfl's christmas games without issues. for more on this as well as the future of live sports streaming, let's bring in our own julia boorstin and alex sherman. julia, did you watch the fight? did you see what the problems were? >> you know, tyler, i did not watch the fight, but i did just talk to a source that's close to the situation about the nfl and

also the netflix. and what's really essential here, because those two nfl games that netflix has scheduled for christmas day, that is a big investment for netflix, and my source tells me that the nfl has talked to netflix since the fight on friday. they're cognizant of the amount of traffic that netflix can handle. and the source says that they're confident of netflix. that's what i'm hearing from my source close to the situation. but you can get, tyler, that netflix is pulling out all the stops to make sure they do not have those kind of technical issues again, because this nfl investment is a really big one. >> alex, how would two nfl games on netflix in terms of audience wishing to stream compare with this, what was it, 60 million who were watching paul versus tyson? it's not that big. >> the nfl doesn't have the same international reach that a fight like this would have. if you just take it in the u.s., based on other major streaming games that have already happened, you know -- >> thursday night football on

amazon. >> correct. thursday football on amazon or the peacock playoff game. we're talking somewhere between 15 to 25 million. less than half of the 60 million that we're talking about from a netflix standpoint. but still, the nfl is not the same in my opinion as even this boxing match. this boxing match was a unique, you know, kind of fun, almost, one-off event -- >> it was an exhibition. >> the nfl is reason when it comes to fans. fans are not going to stand for a game that's constantly buffering when they're used to being able to see these games every week in a format where this never happens. the pressure, i think, is much higher on netflix to deliver, even if the audience is lower. >> jets is giants fans don't give a you know what if it buffers -- >> i think they would prefer it. >> it would be an improvement. >> julia, what other reassurances do you have about, you know, how they're going to technologically pull this off?

>> well, look, i think the key thing here is that what alex said is right. the nfl audience is much more domestic. this is primarily a u.s. audience. but one reason why netflix wanted -- why netflix wanted the nfl and why the nfl wanted netflix was for the opportunity to introduce a more global audience to the nfl games. i think that the nfl does talk to all of its broadcast partners. they have streamed other games before. remember, they streamed those peacock games, and those went off without a hitch. they're really working together to make sure that whether it's the nfl piece of this or the broadcast component of this, that they have everything in place from a streaming standpoint. but i do think that even though the goal is to bring the nfl more global with netflix, for now, this will be a more domestic audience. >> jump in. >> what's interesting with this idea of a fight, typically if you want to watch a fight like this, it's more likely to be a pay-per-view thing, but whereas for netflix, they offer this free to all of their

subscribers. so while people were frustrated there were buffering issues at the beginning, this is something that they essentially got for free rather than paying for it separately. so i think that the nfl, netflix has to prove this is going to be a key part of its strategy going forward, having sports, which is really valuable for advertisers. netflix talked a lot in its earnings call the growth of its ad-supported business, and they're really looking at these live events, something they've manufactured hemselves like the fight on friday, or something like wwe, where they have a show launching on mondays starting in january, they're looking at those live events essential. >> and i checked in with the wwe source, also not concerned with netflix' ability to stream those live events. of course, the wwe audience is going to be nothing like the 60 million u.s. households -- >> let's move on to topic number two, and that is the nba and its relationship with warner brothers that reached a deal now, apparently to end the legal battle to sign a deal with

disney, espn, as well as nbc peacock. as part of the agreement, warner brothers' properties will continue to have rights to nba highlights. and this is a great relief to basketball fans. here it is. inside the nba with shaq, kenny, charles barclay, and the key is ernie johnson. it's going to be produced by turner, but it will air on espn. there were questions here, when that deal went through, that warner brothers discovery had the right to match the contract, i guess that whole thing is done now? this settles that? >> that's right. so warner brothers tried to match amazon's package, which was a $1.8 billion per-year package for the next 11 years. warner brothers decided it didn't want to match our parent company, nbc universal's package, which was more like $2.5 billion. the league argued, that amazon package streaming only. it's an exclusively streaming package.

what you want tnt sports/warner brothers discovery, you would be putting the games both on cable tv and on streaming. we don't want that, because we see the cable ecosystem dying, in essence. we want to bring in amazon, which has this large, global footprint, probably double or even more than double the size of max. that's why we want amazon as a partner. warner brothers discovery tried to get some extraction from the nba by suing the league saying, we paid for these rights in our last deal. they need to count for something, and this is what they've walked away with. in essence, it ends the 40-year relationship that turner sports has had with the nba in terms of broadcasting live u.s. games. they will be able to broadcast some international games in select areas, and of course, as you just said, they'll have these highlights. >> all i care about is inside the nba, and they bring kevin

harlan over from tnt and broadcasts of the these games. >> julia, thanks. shares of uber are lower on reports that president-elect trump could ease regulations on self-driving. it could spell trouble for uber's grip on the ride share market. and we will trade it in three stock lunch, next. 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 your free, just for calling the number on your screen. and when you call, a knowledgeable, licensed agent-producer can answer any questions you have and help you choose the plan that's right for you. the

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welcome back. it's time now for our three stock lunch. we're trading some of the key stock movers of the day. courtney garcia is with us, a cnbc contributor. courtney, welcome. let's start with nike. td cowen just trimd its zwroukt look. would you be a buyer of nike here, courtney? >> i wouldn't.

i would stay on the sidelines here. this is a stock that's down about 30% year-to-date. as much as i want to take that and look for opportunities when something's down so much, you have to say, why is it down so much and are those pressures relieved? there's a few things with this story. one are the tariffs you just quoted. just in general, the china recovery has been a lot slower than everybody expected. and now we're going into a administration that has rhetoric of tariffs on china. you can see those retaliatory tariffs from china to the u.s., which can negatively affect a nike. but add on top of that, you're seeing a consumer that has been stressed under inflation, and is changing from athleisure, which was big during covid, back more towards traditional wear. and for people who are still buying in that space, there's a lot of competition here. you're seeing the likes of onn and ka are a competitive pressure on nike. for all of those reasons, i would continue to stay on the sidelines. >> just brought some onn

sneakers. >> coming up next, cvs healthy reaching a deal four weeks after the health care giant ousted former ceo, karen lynch. dplen view's ceo will join the cvs board effective immediately, along with three other directors, expanding the company's board to 16 members. what do we think of cvs here, court? >> i think we've got to see a bigger turnaround story here. in the short-term, i'm going to stay on the sidelines. this is another stock that is very big, but there has been a big shift here. i don't know the last time you were in a cvs, but it's really hard to buy anything there. you go and everything is locked behind these cages. people are actively choosing not to go to your local cvs and you'll just buy something online and it puts pressure on their retail business. but on top of that, you'll go buy their regular things like shampoo and body wash over at amazon, because it's easier to do. now amazon is getting into the pharmacy business, which is putting a lot of pressure on cvs. and then you're looking at things like their medicare

advantage space, which has a lot of increased medical costs and continuing to put pressure on their margins. i don't see these lifting. are these new board members going to have a turnaround story? the hope is so, but until we see what that is, i would stay on the sidelines here. >> let's go to the battleground area of the day, which is really around these potentially loosened restrictions for tesla and others on the self-driving front and a new trump administration. we were talking earlier about why would uber be down? the word is it increases competitive pressure, because tesla's fleet of robo taxis, here they come. courtney, what do you think? >> i would buy on some of this weakness of the headlines. i think self-driving cars are going to be the way of the future, but this is not happening today or tomorrow. these regulatory pressures are not the biggest barrier to entry, as the fact of the availability and the technology of the self-driving vehicles. and uber is getting into that space. you're seeing partnerships with things like waymo. in the meantime, they have been consistently profitable. you're seeing growth in both their mobility and delivery

businesses. i think this is something you want to keep in your portfolio. >> she sticks with it. courtney, thanks. courtney garcia. "power lunch" will be right back. it's time to grow your business. time to get customers. time to make your future, now. create a website in minutes. how? godaddy. coding... nah. but all that writing? nope. ai, done, built, up and running. you have what it takes. now take it to the next level. create a beautiful website in minutes with godaddy. let's get to work start for free at godaddy.com

every year, wildfires ravage

the country, but now new ai tools are battling them. julia boorstin joins us with her latest installment of her ai impact series how ai is being deployed to, of all things, fight fires. >> every year, wildfires cause the loss of thousands of lives and billions of dollars in damage. and this year, over 8 million acres have already burned in the u.s., up from about 3 million last year. but now, tech companies, public utilities, and government agencies are using new ai tools to fight back. start-up pano ai deploys camera stations from $50,000 a year in high-risk areas. pano's software detects early signs of smoke and fires and notifies local fire departments to drastically speed up response times. >> and it's just not practical to buy thousands of lookout staffers staffed with humans, but it's extremely practical to put up lightweight camera systems and monitor them 24/7 with powerful ai, combined with

human intelligence, to deliver the best of both worlds. >> general electric has deployed dozens of pano ai's cameras to protect the people who live in that area, allowing firefighters to respond six hours faster than they would otherwise. but microsoft's ai for good lab has developed ai to help targeted response. in the wake of last year's maui wildfires with, the lab's ai analyzed satellite imagery to notify the red cross about the most effective way to address local damage. while the total number of fires grows annually because of climate change, ai can dramatically mitigate the damage from these fires. guys? >> so, really, it's a case of these sort of eyes in the sky, in a case of the pano ai, seeing smoke or flame early and getting -- because if it beats conventional response time but hours, that can be the difference between millions of

acres burning and maybe just tens of acres. >> absolutely pip mean, i think what's essential here, tyler, it's never going to be possible to prevent wildfires. but what's really important, if you identify them, if you find them quickly, get people out there to put them out in the right moment, you can really have a massive impact in terms of limiting damage. and that's what this ai technology can do. there are other ai start-ups that are looking for the smell in the air, or looking more in urban areas to try to identify where there are fires. because there are now so many cities or suburbs that are just, you know, in this sort of danger zone, because they are close to areas where there could be wildfires. so i think that the possibility for ai to really mitigate the damage is huge. >> yeah, we're not in the danger zone, but in northern new jersey, they've had smoke alerts because of fires. we just don't have. julia, thanks very much. appreciate it. >> now, roblox is rolling out a host of new child safety

settings today, in the fe acof growing criticism for lack of oversight on its network. we'll get the key details with the stock fractionally lower after a break. the agents applau. your travel itineraries are so well written, they're on the best seller list. and you have access to lounges that don't officially exist. that's why you rent with national, where you can skip the counter and choose any vehicle on the emerald aisle. because travel isn't a competition. except that it is. and you're winning. ♪♪ [inner monologue] this is going to sound crazy. but i know these attack vectors. oh, had a little upgrade have we? ♪♪ okay, so that's how you want to play. ♪♪

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roblox is rolling out new features today as they're trying to fight back against those child safety concerns that have been sparked on its platform. steve coberg is here to explain what to expect. >> let me tell you what's going on today with these updates. there are a number of child safety updates rolling out on row politics today. though a lot has been in the works before we even heard about that one. here's a quick recap of what's happening here. parents can link their account to their kids' account, so they can control things from their own device. before, you used to use the kids' device to do it, setting spending limits, screen time limits, and see who their kids and friends are and who they're

talking with. other big updates here, stricter limits for kids under the age of 13. for example, they can't message or talk to people outside of a game. and finally, content ratings, sort of like you would see on movies or television shows that ranges from minimal to restrictive for more explicit comment. and parents, of course, can control what their kid can access based on those ratings. now, this is, of course, not going to be the end, and it's not just roblox dealing with these issues. for example, meta has been pushing google and apple to do much more. and this is something that we asked roblox ceo about a few weeks ago, when he was on the show. he said that he's not really waiting on apple and google to make changes. take a listen. >> we are not waiting for apple and google. we are not depending on someone else. we build our safety systems, both content, communication, ai-based safety systems. we have over 150 ai systems supporting our civility initiatives. so we're not waiting for anyone

else to do something else on their platform. >> so still a lot of pressure on these companies to do better. and . >> and one of the concerns was with whom might your child be connecting. and they're limiting to who the kids can connect to. does that solve the problem? >> with these age restrictions, it helps a little bit. >> steve, got to leave it there. thanks for watching "power lunch," everybody. >> "closing bell" starts right now. welcome to "closing bell." i'm mike santoli in for scott wapner. stocks continue to regroup one week after sitting hair latest all-time high. here's a look at scorecard with 60 minutes to go in regulation. the s&p 500 getting a modest lift. about 60% of all stocks trading higher on the day. you can see it's up by about 0.4%. the nasdaq is pacing the upside to start the book, carried by tesla, a