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good afternoon, everybody. and welcome to "power lunch" alongside kelly evans. i'm tyler mathisen. glad you could join us. the major averages are lower right now despite some deal news that's usually positive for the markets omnicome is buying interpublic group as the industry reshapes in the face of ai. and shares of hershey's soars on reports that mondelez is considering a takeover of the company. >> and our friend chris kri san ty will be happy. police are making an arrest in the shooting of the ceo of united health care. bertha coombs is in new york city with the very latest. bertha? >> kelly, a 26-year-old man is in custody in altoona, pennsylvania, with new york investigators headed down to speak with him. according to mayor adams, he matches the description of the person they have been looking for. and authorities also credit the

social media presence and the media for having put out that picture of the suspect showing his face, helping to lead to this arrest. here's what the police commissioner had to say. >> earlier this morning, in altoona, pennsylvania, members of the altoona police department arrested luigi mangioni, a 26-year-old male on firearms charges. at this time, he is believed to be our person of interest in the brazen, targeted murder of brian thompson, ceo of united health care last wednesday in midtown, manhattan. >> reporter: police say that he arrived in altoona by bus. of course, police also say that the suspect last week left new york by greyhound bus after -- soon after having committed the horrible murder of ryan

thompson, the ceo of united health care. they also found on him a fake i.d., that was also used by the suspect. they say here in new york, with a fake name, fake new jersey i.d., as well as a gun, which investigators say appeared to have been 3-d printed, as well as a silencer in his bag, and according to multiple reports, they also found a hand-written manifesto. that railed against the health insurance industry. at this point, they believe that this may be their suspect, but at this point, they have not officially named him as their suspect. back over you. >> so we can presume that this was the result of a tip that was called into police, either by a customer of the mcdonald's or an employee of the mcdonald's, who recognized this individual of interest, based on video footage or the photographs that have been released by new york

police. >> that's correct, tyler. apparently, it was an employee of the mcdonald's who called it in, saying that this person resembled the person of interest that they were searching for. police say basically, all of that surveillance footage and that one image that showed his face were really very, very important in this case. they were able to track his movements, know that he had left the new york city area, know that he had done so by bus. and certainly traveling by bus, if someone is trying to hide their movements is easier than traveling by plane, where you have to show a valid i.d. in order to get on to a plane. so they are, at this point, going to speak with that suspect and try to get more details. but this afternoon, this all comes as the family of brian thompson is laying him to rest in a private ceremony. you can only imagine that it's a

little bit of solace to know that someone is in custody. >> bertha, thank you very much. bertha coombs reporting from a rainy manhattan. for more on this developing story and what it means for companies and ceos, let's bring in jacob silverman, and richard tornzano, a global reputation and high-risks management firm. jacob, what are your customers calling and asking you about in terms of how to protect their key people better? >> first of all, thank you for having me on your show, and my condolences to the thompson family on the tragedy of last week. so we are getting a significant amount of inbound inquiry, as you can imagine. and in the first instance, companies and their executives are asking, well, what do we do? how can we create a scenario and scenario planning that can protect us? it's the basics, what can we do,

based on what our culture is all about, and the executive travel habits and the executive general habits are all about to make sure that we can prevent s type of tragedy from happening again. we're getting basically an outpouring of inquiry on what do we do next. >> rich, it's good to see you. i know that you believe, fervently, that it is not merely a question of physical security for executives and key individuals within companies, but the hints and traces and digital fingerprints that they may be leaving intentionally or inadvertently, as to their whereabouts. these are public companies in many cases, that have an obligation to say who their key people are and where they may be presenting to the investment community or other things. what's the fine line that a company needs to walk here between sharing the right amount of information about their

executives and the executives' whereabouts and the safe amount of information to disclose? >> let's take that in two parts. and hi, ty, and hi, kelly, good afternoon. i also extend sincere wishes to the family. clearly the board and the management of any company must protect the safety and welfare of employees and their physical assets. there's no question about that. but when they get into the detail world, they're quite behind. corporations have done an excellent job using the digital world to promote their products. but in some of the actions they have taken in the last few days, taking down pictures of executives, taking down bios of executives, it seems like an overreaction, and a not-well-thought-out reaction as to what the digital world is today. its power, its scope, itself depth. depth. for example, the united health

care took down bios and photos of the executives, as did cvs and a number of other health care organizations -- >> but can you blame them? really? >> i can't, but let's talk about what they're doing. first of all, there's serious archival sites throughout the internet that can retrieve that information. secondly, as public companies, most of that information is available on their website, in the investors section, in their proxy and other areas. so while there's a good reaction to try to protect, i'm not sure what that's accomplishing. i think the corporate world in this area is a little behind in time. and i think they have to look at this and determine what they're going to do. for another example, a few months ago, actually, in february, we were called in by a major security firm. they were having a problem with the information about their ceo, the new york stock exchange-listed company, getting

out on the internet. his new home, weekend home in the hamptons, pictures of his license plates et cetera. they couldn't understand where this was coming from. we found all of that information was coming from his two teenage daughters and his wife on their facebook postings and their tiktok postings. so while we have to re-educate executives on how to deal with the new world, we may have to re-educate employees and their families on how to deal with this new world. >> although, jacob, i might say, it's an possible task. people have linkedin, they have social media, they have facebook. you can't expect people to not have some kind of public presence, especially in positions like that. everything's too-well known. i'm curious if you think that this threat going forward is one that would mostly continue to center around the health care industry and those executives, maybe the nervousness they continue to feel, or if it's more broad. >> well, i think it's more broad. the health care industry

certainly is an industry that is rife for people holding grudges and there being heightened level of anxiety. but there are analogous situations that cross industry. and at the end of the day, whichever industry one is in, the executives have to understand their own habits, there might be some habit moderation that is required, but you're right. it's impossible to take down one's social media presence. so the protection protocols really have to be geared towards how do we operate in a world, irrespective of industry that can ferret out intelligence well in advance of it becoming an imminent threat. and there are always emerging signals in the world of social media in the dark web, and the regular web, that can be pieced together to inform a view of how to protect one's self. >> so, rich, let's pivot the conversation just a bit. there has been a tremendous amount of really, in my view,

kind of heinous backlash against the -- but understandable backlash, against the health insurance industry. if a health insurer was one of your clients, and they were under assault, what would you be advising them to do? >> well, first of all, i think this has been going on for a while, as our colleague just said. business has been under attack for some time. it was under attack by many of the regulatory agencies in the biden administration. it goes back to the occupy wall street days. so this is not new for business. i think what we're seeing is the tip of a spear right now, pointed directly at the health care companies. so long-term, there's two things that they need to be thinking about. first, they can't hide. they have to promote their products, they have to promote their company, they have to promote their executives. how do they do this in a changed world that's radically changed in the last few days. you do that by continuing to go

out and make speeches, continuing to promote your products, but maybe you have some new protocols in place that are talked about in how you promote them. you can't not have an investor meeting. but you're going to have a lot more security around them. you can't not make speeches at industry conferences, but executives might have more security around them. there are new protocols that have to be in place. i am advising some companies in the health care business, and very briefly, what you're telling them need to talk differently to your customers. turn your telescope around. this has been building up for a decade, there have been books written about this, some of the harshness you talked about on the internet the last few days. this just didn't happen in the last four or five days. this has been building up for a great deal of time. there are two things they need to do. first, really look at what the customers are saying and how do they reproach their customer in a different way.

for example, if you asked me to look at my success or your health care policy and read it, i have no idea how to read it. most attorneys can't even read it. you've got to approach your product in a way that is easy to use with customers. secondly, you may have to change some policies. for example, i think it was anthem just a couple of weeks ago was going to cut back on the time of anesthesiologists. and when this happened, they said, well, we're not going to do that. well, how silly is that? i mean, the gentlemen who's the head of united health care talked about unnecessary care. well, if my doctor wants to give me a test and you say it's unnecessary, i'm going to believe my doctor. i'm not going to believe my insurance company. >> well, that taps in, i think -- we have to leave it, rich, here. that taps into some of the anger that has been expressed. and i used a strong word to describe it, some of the reaction to this killing that in

effect made the individual, whoever the individual was who did this, turn that person into, in some senses, a folk hero for doing what this individual supposedly did. and we have to leave it there, gentlemen. this will be a longer conversation, we appreciate your time today. jacob silverman of control, richard torenzano of the torenzano group. coming up, uncertainty in the u.s. remains high, geopolitical tensions are spreading. should you de-risk? we'll discuss that, next.

attorney sodano.

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portfolio? here to help us answer that is mike bailey. all right, mike, it's a question everyone's asking, with the market run the way it's been and signs of froth elsewhere. what do you do? >> i think the first step is know what you own. certainly, a lot of folks, if you've been long the market, the broader market s&p 500, it's been a great run and things have changed. if you look back at the top holdings now, what were those top holdings a few years ago, it was a little bit different. nvidia went from nothing to the number one position. it's a relatively expensive stock compared to broader market. that's pulled valuations up. so broader markets are getting a little more expensive, but it's just a reminder, just spend some time, go back and dig in there. we have some overweights. are you overweight tech or the ai theme? could be time to rebalance and get back to a more modest average. but as valuations creep back up to some potentially dangerous levels we saw in late 21, a very good reminder, we're towards the end of the year. take a little break, wipe the dust off the portfolio, take a look, just make sure you kind of

really understand some of those bigger positions. >> but you can't afford to be out of the market. and i think this is the conundrum a lot of people feel, where they say, i can look at this and think, it's a little frothy, but i can't get out. i mean, you get out some of the days, the way they end up compounding, even if the market corrects 20%, you still lose money in the long run. >> absolutely. so it's time in the market. you want to be fully invested. that's what we're recommending to our clients. ic the question is, what are you fully invested in? are you sort of involved in some speculative pieces, bitcoin is out there, some things are really moving up, or are you still diversified? if you've got a balanced account with bonds, and stocks are doing great, maybe it's time to otate a little bit out of stocks and pour money back into bonds and be ready to live to fight another day. however, one of the things that's really important here as stocks are trying to get more expensive, if you own some individual stocks, take a hard look, are those things looking expensive? and has there been any bumpiness in terms of quarterly earnings?

that's something that could really sink a portfolio. a bunch of names, getting expensive, oh, by the way, missing and lowering. that's really painful. so as long as you've got a diversified portfolio, names, looking back the last couple of quarters, they're doing pretty well. those are some names you want to make sure you've got plenty of exposure to. >> i guess i could have done better with some individual names. but i could have done pretty doone well with a schwab 1000 fund or total market index fund. why wouldn't i just do that and let it sit? >> that's one approach. a lot of folks want to own the broader market. i think frankly it goes back to behavioral finances. some stuff we've all focused on a lot. some folks focus with buying individual securities and getting in trouble. whether you're anchoring to the purchase price or really struggling for those folks might just say, i'm going to go passive, own the broader market, and not touch it. i'll rebalance back into fixed income if i need to. that's a pretty good approach for a lot of folks. for some, if you work for an employer, let's say you've got a

big chunk of employee stock or something like that, that does change the story a little bit. you have to make sure you're not overweight one particular sector or stock. that might suggest you go back and start to buy some individual stocks to sort of counterbalance some of those exposures. >> i've always heard one of the risk that's more common than people realize is that spouses work for the same company and as a result, they're totally overexposed to that company's securities, that company's 401(k), et cetera. >> you have to say that on a day that comcast is down 10%? >> yeah. yeah. anyhow, mike, thanks very much. mike bailey of fbb capital partners. after a quick break, stig with geopolitical risks, we'll explore how china will fare around round two of trump in the oval office. our market navigator, after this.

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welcome back to "power lunch." in a rare day where we're seeing red across the board here for the markets, the nasdaq, i believe, touched a high earlier today. the dow was positive, but now the blue chips are down a quarter percent, s&p and nasdaq down about half of 1%. and china is the big news. it's vowing to unveil what it calls more proactive fiscal measures and moderately loser monetary policy to boost commercial consumption. it comes as president-elect trump is promising tariffs on chinese-made goods entering here. how do you best invest in china now? you can see some of the movements here. not much overall for the chinese stocks, but a lot of the u.s.-listed chinese names in particular. joining me to make sense of it all is jason su at ralient global investors. remember, there's been a lot of disappointment at -- there's not like a big bang moment ere for the stimulus measures, either.

what do you think people should do? >> first of all, i think beijing's been somewhat unwavering since the end of september about going to do what it takes to save the economy. whether it's with trump 2.0 or not, hey're going to pump in money, spend money to really rekindle growth. now, i think people are too fixated on specifically, what is the right policy, what will work? i don't think anyone knows, but i think the only thing you need to count on, as tupper says is beijing will get a fix. >> they're working against themselves. they could have not, you know, put the boot on the neck of the tech giants a few years ago. at what point do we really see a meaningful change. but maybe that's a side question as to the central question of what to own. do you think people should own a wide basket of chinese stocks or do something much more tactical >> first of all, you want to be tactical. this is a market where it pays

to be active. and in this case, being tactical means you want to own a broad basket. it's going to be a lot of money coming in and flooding the market. it's going to lift all boats. i don't think you want to pretend you have a crystal ball and know exactly what stock that will go towards. own the broad market and you'll do pretty well. >> to the extent that china keeps artificially lowering its currency, it's hard to see them ever having a vibrant consumer spending economy. should we bet on more of the same-old, same-old. >> i do think so. and i think it's going to take a while for chinese customers to regain confidence. it's not that they don't have money to spend. this is not the japan situation, where consumer bet too big on home prices and lost their shirt. this is where they're sitting on $30 trillion u.s. in bank-like

deposits that households don't want to tap. so i think right now, it's going to be the government spending, stimulating. it's going to be stimulating tex ports, stimulating manufacturing. let's see. you can probably wait for phase ii. >> all right. if we get one. jason, thanks. always good to check in with you, jason su with ralient. ty? >> thanks, kelly. ahead on "power lunch," reddit rolling out new ai features. we've got the details on that when we return. not all multimillionaires build their wealth the same way, you have... the fearless investor. the type a cpa. the boot strapper. the boot maker. hee-ha. but many do have something in common. we all trust schwab with our wealth. thanks to our award-winning service, low costs and transparent advice, every day, over a million multi-millionaires, trust schwab with more than three trillion dollars of their wealth. ♪♪ since 2019, john deere has invested

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welcome back to "power lunch." i'm courtney reagan with your cnbc news update. israeli prime minister benjamin netanyahu said just moments ago that the fall of the assad regime in syria could open the door to a hostage deal with hamas. he said hamas will be isolated without syrian support. his announcement comes as national security adviser jake sullivan is due to travel to the middle east to discuss a deal. president-elect trump's pick for defense secretary, pete hegseth, is back on the hill today for meetings with several senators. he sat down with senator roger marshal of kentucky this afternoon, as the former fox news anchor makes his pitch to lead the pentagon.

meanwhile, trump's pick to head the fbi, kash patel, and director of national intelligence pick tulsi gabbard is also holding conversations today. and sotheby's showed off thea stone enscribed with the ten commandments today. the marble slab is about 1,500 years old, weighs about 155 pounds and estimated to sell for $1 to $2 million. i'm surprised the bid wouldn't be higher. i know it's not the original. >> it may go there -- >> less than the banana. >> if a banana with duct tape can go for $6 million, that's going to go for more. >> you would hope, i guess. back over to you. >> thanks, court. shares of nvidia are lower today after china says it's looking into possible violations of the country's possible anti-nopoly laws by that country. eunice yuan joins us now with more. welcome to washington, eunice. >> thanks, tyler. a chinese market regulator said that nvidia is under investigation for two reasons.

it's expected of violating china's anti-monopoly law and may have reached conditions of china's ace approval of mellanox. one of the conditions is that nvidia needs to keep supplying gpu accelerators to china. the sale of nvidia's graphics processor units to china has come under scrutiny by the u.s. for their critical role in the country's ai ambitions. china accounts for the 15% of nvidia's sales, and the company says that nvidia wins on merit and is happy to answer any questions for chinese regulators. ty? >> all right, eunice. i want to ask you while you're here about china's latest comments on stimulus. the chinese stocks were soaring today. up more than 10%. how seriously should we take these efforts? >> i think that is much more serious than what we've heard previously. the chinese president, xi jinping, had chaired a

high-level meeting overnight to outline the economic priorities of next year. the readout signals that the leadership is preparing to ramp up stimulus. so investors were very focused on the phrase "moderately accommodative monetary policy." that was a phrase we last heard after the great financial crisis. the policy makers also pledged to use more active, they said, physical policies, that's something that investors have been hoping for, and to stabilize property, stocks, and trade. it's still unclear how far the leadership is actually going to go, given all of their concerns about financial risks and debt. however, many china investors, guys, are hopeful that 2025 will bring greater physical spending and other supportive steps. >> among those risks that you were thinking of, and some of what you mentioned, where do trump tariffs fit. are they an afterthought to the chinese regime? something that would occasion them to be, quote, moderately accommodative in their monetary policy? where does it fit?

>> there's a lot of speculation that the reason why china is thinking of ramping up a stimulus is because they are concerned about what the chinese have described as external factors. such as the trump administration coming in and hitting the chinese with very high tariffs. so the government has been doing whatever it can to try to signal to exporters that it's there, and it has their back, but it's still unclear exactly how this is all going to pan out. a lot of the authorities are looking to see exactly what the trump administration is going to do. >> all right. very interesting. eunice, thanks. great to have you here. and reddit's announcing a new ai-powered feature. julia boorstin is here with a look, and the stock's been on a tear, julia. >> that's right. reddit shares hit an all-time high earlier today, though have given up much of those gains. but the stock is still up a whopping 380% since the company's ipo in march. one factor driving up the stock, the promise in boat surge and ai that are coming together in

reddit's new product launched today. they're debuting a new tool called reddit answers. which enables users to ask questions and receive answers from the community. this is aiming to unlock the value of the conversations on its platform. a platform which has been criticized for being hard to navigate. this new tool also aims to make reddit a bigger player in search, which ceo steve huffman has said, would be a key growth driver, saying that reddit is an attractive alternative to google search because the answers come from humans. also, today, morgan stanley upgraded to reddit to overweight with a price target of $200. saying that the quality, recenty, andbred of reddit's data could lead to materially higher engagement, time spent per user, and ultimately monetization. adding that reddit's pricing is still half of that of its peers, so search could be a good spot

for adding more ads. >> i've been very impressed with reddit's rally, and i didn't know how much of it was the licensing deals it struck with google or old-fashioned user growth, that kind of thing. >> it seems like they've really continued to deliver on these partnerships, figuring out how to make that wealth of content they have valuable to potentially partners, but also just doing a better job of monetizing on the platform. it seems like this next leg of growth is going to be driven by making reddit easier to use, easier to navigate, and a big piece of that is ai. and search is incredibly valuable, because not only if ai-powered search works, but that makes it easier to drive gaugement. engagement, but you have a new spot where you could put ads in between those search results. >> very good, julia, appreciate it. julia boorstin. still to come, florida's condo crisis. potentially hundreds of thousands of dollars in new assessments are looming in the hoowrsikl with individua mene le on the hook to pay them. we've talked about this a little

bit already, but we'll get the full story when "power lunch" returns.

welcome back. florida's condo market is facing a new cliff. new rules go into effect at the

end of this month, requiring condos at least 30 years old to do expectations and make repairs. it all dates back to that deadly collapse back in 2021. diana olick is here on set with us, with a ook at what these new rules are going to cost people and what this is doing to the market. >> absolutely, kelly. as the inspections are done, the bills are coming due, and for some associations, costs are in the millions of dollars, meaning condo owners are on the hook. roughly 1 million units fall under the jurisdiction of the new rules. some owners are hoping to sell, others are actually walking away, and some are looking to investors to bail them out. long-term florida analyst calls it is condo cliff. >> the cliff is effectively -- i would compare it to what we saw during the great recession. these are the units where a small minority are going to have to basically bear the cross or pay for everyone else who's not able to pay, whether they can't or they choose not to pay.

>> in south florida, miami-dade, broward, and palm beach counties, three quarters of all the condo units for sale are more than 30 years old and subject in and out rules. in the usually busy summer season this year, sales were down 21.5% year over year. in q3, active listings were up 60%. stefani is an agent in miami who says the pool of buyers now is extremely limited. so sellers have to either pay assessments first, or slash their price. but there is another exit. >> a building behind me has been agreed to sell to a large investor, who's going to tear down the building and put luxury waterfront property. i think it's safe to say that for closures or short sales may happen. i don't know yet, i haven't seen many yet, because the investors are buying out the buildings that they ve are in a desirable location. >> while the prices were only down 2% in the summer seasons,

zoluski says it was in september that the area started to get bombarded with information that was coming. and now there's a lot of buyer regret. shocker. >> these are buildings how old? >> 30 years and older. and they are subject to repairs on roofs, structural -- >> repairs, maintenance -- >> to bring them up to current code. >> and it's a fund for the future to do repairs. >> and so, people who own the house free and clear, the condo free and clear, some of them, they're just walking away? >> they are, some of these are retirees. they're on a fixed income, fixed budget, and they bought the condo years ago, expecting this would be their budget for the rest of time. and all of a sudden, they're hit with these fees in the hundreds of thousands of dollars. >> these are not small assessments. these are not luxury condos. these are not people with tons of extra cash to throw around. you remember the foreclosure crisis, some people just put the keys in. >> and who are these investor buyers? >> big developers.

>> not private equity companies? >> some, possibly, but they don't want the building, they want the land. they want to knock down the build, and as we know in miami, there is great demand -- we have called it the great divide of miami condos, the older and the luxury, huge demand for those beautiful new luxury buildings, so they can knock down the old building and -- >> i'm surprised, was there ever any talk of trying to help subsidize these efforts? >> yes. and there are lenders now who are trying to help people out with loans that can go across 30 years. and the governor had said he wanted to call a special session, but the legislative agents said they wanted to push it back until next year to until they see what these fees really are. applovin on pace for its worst days in two years. we'll get tlad hat trade in three-stock lunch when we return. woo hoo! the first ever nissan rogue rock creek. ♪

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can help you open those doors. but i did get waiter number 2. because they know you. they can help you create a comprehensive plan for your full financial picture and personalized money management with the right balance of risk and reward. doors were meant to be opened. welcome back, everybody. the s&p 500 just had its quarterly rebalancing, with apollo global and workday set to join the index as of december 23rd, replacing qorvo and

amentum holdings. for today's three-stock lunch, we thought we would trade some names that did not make the cut this time around. here with our trades is brian bendig, welcome. first up, we're going to go to applovin, the app monetization giant on pace for its worst day in more than two years after getting snubbed by the s&p. now, the shares have had an enormous run-up this year, as you can see so far, up almost 800% through friday's market close. brian, what do you say here? >> well, tyler, with that run-up, the forward pm stock is around 100, as i think about earnings going into next year. and also considering at the heart of the business, yes, it has a great ai tool that helps to support monetization of advertising, but at this point, i would say with the news that came out today and the pullback, it's a little too rich for me to jump in. if you've been a longtime investor, for me, i would say it's time to cash in and wait for valuations to be a little

bit more reasonable and look to the next generation of its ai tool and where it might be going next. >> so that's a sell on applovin. >> let's see about trade desk. the online ad firm lower, but still on pace for its best year since 2020, still about an 80% gain. would you jump in here? >> kelly, another really interesting business. monetization, advertising, giving purchasers the ability to choose, but when considering the fact that it's in a marketplace that there's such high competition, and now amazon is jumping in to this type of business, and we're talking about the areas of online advertising that's outside of alphabet's exposure, which is only about 40%. that's a long way of saying, i think i would sell in this one, as well. and take profits from a really good year, and a stock move overall. >> all right. our final name, this time around is coin base. lower for the second time in three sessions and on pace for its worst day in nearly a month. but the crypto sector has seen a

huge boost since election day on bullishness for de-regulation under president-elect trump. the stock coin base up 63% since election day, brian. >> well, tyler, i do like those tailwinds, especially with a lot of it, the cabinet picks that the trump administration has put out, and also some of the commentary recently about where crypto could go as a means to back the u.s. dollar. and considering that coin base really generates the majority of its revenues through trading activities, we know that as the word gets out, looking at this 50% move that we've recently seen since the election in just bitcoin alone, i think it really provides a good opportunity for coin base to monetize moving forward, but also considering that the regulatory environment is changing and that they have some issues there with the s.e.c., i think this might help, and i would keep an eye on the stock and look for great entry points from there. >> do you like the exchanges better than the cryptos themselves? >> well, that's a great

question, tyler. i think it depends on the investor. my view is it's still a speculative space. so i always, again, from a management point of view, looks for a means to diversify. i like investing more in the ecosystems than the tokens. but at the same time in time, with the backdrop of some of these macro opportunities, it should lift tokens, should lift the ecosystem higher, if this deregulation and more acceptance of digital assets pervade into our financial system. >> let's talk a little bit about the broader markets and whether you think that they are going to turn a little defensive as we move towards the end of the year, or what do you expect as we turn into 2025 and a new administration? >> yeah, well, i like to quote billy joel on this one. he had a song that talked about going to extremes, if you remember, tyler. and i would say as long as those policy decisions from washington and the fed don't go to extremes, we should fall back on

a good backdrop. fed cutting rates two or three times next year, slowing consumer spending. that should help to bring inflation and rates down, but i still really like earnings. as long as those outlooks hold with increases greater than 10% year over year, i like the fact there could be some participation outside of tech, in helping to support these valuations. i wouldn't give up on the market right now, but it's probably very easy to say volatility in q1. >> well, we'll see. it's going to be an interesting time in the markets and across the country and around the world, as we all adjust and get ready for a new administration. brian, thank you! appreciate it! >> thanks, tyler. >> you got it. >> and it's your last chance to join our cnbc financial adviser summit tomorrow. industry insiders will convene to discuss the market trends and strategic insights that can help advisers better serve their clients. because of that, i got -- do you

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now to the story that's dividing offices in new york city, including our own. steve cohen and the new york mets signing juan soto to a $765 million contract. the biggest deal in sports industry. our mike ozanian joins us with some more details on this. mike, where do we begin? >> oh, my goodness, kelly. this is a deal that in the big picture could turn the new york

baseball scene totally around. you have to go back almost 30 years 'til the mets owned the tabloids, that's what this deal could do. they could take the tabloid scene away from the yankees. on a payroll sense, we haven't seen a deal like this ever before in baseball. the biggest signing bonus ever. and the biggest guaranteed contract in the history of sports in dollars terms. >> you have to put a team around him, though. >> yeah, you do. >> and you've got to find pitching. >> see, you're like me, old-school, tyler. you know pitching and defense wins in the world series where my yankees fell short. but they can do it. >> how does one finance a package like this? obviously, in the case of steve cohn who's worth probably $25 billion, he can write it out of his tip jar, but how do you do it? how do you finance it? >> i think that's what he's going to do. he's going to write checks. even in the season that just finished, the mets were so far above the competitive balance tax -- we call it the luxury tax in baseball -- he's going to

have to pay about $100 million over the payroll. so you're talking about putting a team around, getting more pitching. what are they going to do at first base with pete alonzo, fill that gap. so on top of the payroll, on top of what he's going to pesoto, he'll have to write another enormous check. >> do deals like this, the one that was done with ohtani a year ago, the one that was done with judge a year or so ago, do they make the competitive balance in baseball worse, in other words, how in the world can kansas city and pittsburgh and minnesota compete with this kind of money for these kinds of players? >> they can't, and particularly, as we go more into this environment, where the local tv deals on cable are struggling, you know, with the diamond sports bankruptcy and so forth, so you'll have more -- it's going to be more encumbered on local ticket, local sponsorships, from stadiums and stuff, it's going to be really, really hard, really impossible. some people are saying, i know i've said this before, but baseball is the only sport

without a cap, is going to try to have a cap. >> there are signing bonuses, right there. you look at some of them, $75 million for soto, just to sign. mookie betts, $65 million, scherzer -- he's not even playing anymore, is he? he's been injured for the past few years. is there a point this just gets out of control? >> some people were saying that when aaron judge signed his deal for an annual balance of $40 million a year. don't forget, with soto, after five years, he have an option to increase it to an average annual value of $55 million. i know he's a lot younger signing this deal than aaron judge was. but still, ohtani pitches, hits great. his average annual value is less than soto's. so, you know -- >> and he's deferring most of it. >> look, this is steve cohn, the way i see this, he's going for it. not just in terms of on the field, off the field.

the mets last season were only middle of the pack in attendance. i could bet you my house right now they're going to be right up there this coming season. so he's going to start to get some of that back. but no, as you point out, the gap between the haves and have-notes is growing. >> to find their steve cohen. >> for more, visit cnbc.com/sport. >> closing bell starts now. thanks so much. welcome to closing bell here at the new york stock exchange. apple's amazing run. the stock hitting an all time high. and morgan stanley will ell us where share wills go from here. in the meantime, the scorecard looks like this. mostly red day-to-day as you see some big give back for recent high fliers.