i gave you the business earlier. >> all right. thank you. >> i know you are not ghosting me. i will go with freeport. it is so cheap at 38. >> jenny? >> 3.5% dividend. thank you, scott. and welcome to the exchange. i am kelly and and here is what the head here inflation this morning, just for the fed to keep cutting rates. our economist says yes. elon musk hasn't said anything about it at least yet. we will get you set up from here, and we will dive more into what that holds for us today. yes, speaking of playbooks, there is a new whip in washington. musk included lawmakers over the past two days, giving us a

preview for the next four years. are lawmakers going to show him how washington actually works? we will debate. the obesity drug trial results today, berkeley has the potential to be the best weight loss drug on the market, and what is next for the name and the group in 2025? let's start with the markets though, we are off to the races. >> the graphic you are seeing right now, the green wool means we are in market rally. it is green across the screen. we have your session high levels for the end. let's start with the dow industrials, 43,000 103, that's up a whopping 770 points, nearly 2% gain there. for the broader s&p 500 we have retaken a key technical chart, some people are watching the 50 day moving average or rolling basis on a near-term level here. nikki 927, that level is at

5970 of 100 points, that's one and three-quarter% advance there . at the highs of the session we were up 115 points, actually down at the low. there's the trading range today. nasdaq deposit, these things are very much in line with the parts of the market, 19,007 21, of 348 points or one and three quarter as well. it was a massive move lower because of that so-called fed talk rate cut if you want to call it that. some of the industries are in spots moving lower right now. housing, down 7% for the week. warehouser, a big real estate investment trust down 78%, and chevron on the energy side of rings down 7.5% as well. keep an eye on those stocks. and to others to keep a close eye on as well. nvidia just about flat on the session, but you can see the blue line of one point here,

the market moving downside lower, then corn-based shares down 10% give them a drop in bitcoin prices, and speaking of bitcoin prices, let's show you how to shape up right now, 91,078, remember, earlier this week we had record high levels of just around 108,000 per bitcoin. we got as low as 92, 93 at one point, up to 97 now, the pullback is getting a lot of attention right now. is a risk asset, safety asset, who knows? kelly, i will send things over to you. >> thank you very much. today's inflation data and comments from someone who will be a voting member in 2025 is losing stocks. steve has a closer look at what it means for the feds path forward. are we overreacting, steve, or is it suddenly a different landscape? >> i don't know. i think it depends if you think wednesday was an overreaction. this is the re-reaction.

the markets [ inaudible ] chicago fed president telling cnbc in an exclusive interview, he thinks inflation will continue to come down and fund rate remains above neutral. there is scope to keep heading. >> they think that the ultimate rate is around 3% with inflation of 2%, real rate of one%. we are still above that. so, i still think it is fully restrictive. that's why they fail the next 12 to 18 months if conditions keep on the way that they have over the last 18 months. i think rates come down a fair bit more. >> babying the average community. earlier in the morning, the feds preferred inflation indicator came out of the pce attempt at invitations. and john williams also had this exclusive interview. he votes all the time. he liked what he saw. >> in terms of the data, i

think what we are seeing is, you know, encouraging news. it has been a bumpy journey seeing the inflation process over the last 12 months. we have seen really sizable movement down in inflation the last couple years. we are still not to the 2% goal. we are good seeing progress toward that goal. >> williams agreed the fed is essentially above neutral. so a cut next year -- after a lump of coal delivered on wednesday including one with today's livery from the data and the speaker, it sent the drummers [ inaudible ] on washington. i apologize in advance. >> well played, frankly. let's bring in our next guest, for more rate cuts next year, he sees two of them, the first in march, the second in june. michael is with us, the chief us economist. michael, can you kind of dissect the report a little bit

for those of us who might have been at a kids christmas concert? >> well, i do appreciate the holiday references they are from deep as well. i happened to use them right up. i think to dissect this one, kelly, the big news that we already knew from the cpi inflation data was housing related inflation or shelter took a step lower in november. as you know, that has been a real factor keeping inflation elevated, it has been slowing down the pace of disinflation. we have some stickiness, cars, we mainly think that is storm -related. there is firmness on the good side of the ledger. overall, a 0.1% increase in pce. our viewers have a favorable report. i tend to agree with presidents goolsby and williams it's a clear ride. there is signal here that inflation is moving lower. we need more confirmation from the fed to cut in march as we expect. i think it's a favorable report

in that regard. >> it's the first 0.1 as this chart is showing since may. what you think is happening in the next few months? >> we actually think december could be a repeat of this, something a little closer to 0.2, but consistent with 2% outcomes over time. and of course we move into january where, as you know, we have some seasonality in january. january tends to be a higher than normal month. that one could be a little firmer. it is down at the 0.2 in december, so continuing some of the favorable news that we have had. >> steve, the sequencing of all of this never ceases to fascinate me. what if this comes out before the feds decision? you know, mike powell would have a slightly different song to sing. >> i don't think so. because, correct me if i'm wrong on this, the street has gotten -- and the fed as well -- has gotten good at or casting the pce number from the

cpi and the ppi. i don't think it's as good, maybe it didn't used to matter. now it has gotten so good that even powell will come out and tell the market what the fed forecast is. he has done that a couple times. it's kind of interesting. i think they had an idea it was going to be relatively tame. that allows them to go ahead with a rate cuts. there are still rate cuts ahead. you can ask me about whether or not this was the overreaction. i think wednesday was a little bit of an overreaction, kelly, to what the fed did. they stopped, they stopped a little harder than the market thought. but there are still cuts out there. austin, i guess, redirect did. he said, look. the average fed official still sees the rate at 0.3% which means there is still 100 to changeover. that means you can still bring it down. i have very -- what is the

right word -- informed by the chair when he says, look, we are lot less restrictive than we were, but we are so meaningfully restrictive. and i asked alston about that. he said, hey, that makes perfect sense to me. i agree with that. >> i love that austan goolsbee is saying that as well. he is going to be a voter. it seems to carry more significance. >> that's right. i think, to steve's point, it wasn't the near-term inflation data i think that was driving the feds move, it was the shift from, we are not going to speculate about policies, tall the sudden, we are. i think that was a signal to the market that if we get some of these trade policies, we might be on the sideline for a period of time. i agree entirely with what steve said. a hawkish fed this week does not mean it's all hawkish.

they don't forecast 2% until 2027. so, if they are leaning in any direction it's protecting the strength in the labor market, they still do expect to remove restriction going forward. so, hawkish today, potentially bullish tomorrow if the activity slows and labor markets soften. >> and you are expecting, it sounds like a quarter cut next year, so to in the first half, we will see what happens in the back half. do you have any kind of estimates yet as for how trump's policies will affect the economy? >> we have, you know, it's highly uncertain as you know. we have sacked heard in restricted tariffs or policies, restriction and emigration. we have them lagging a bit in terms of the second half of the year and affecting a to be more

in 2026. you are right. we have two cuts in the first half of the year, then the fed is on pause for a while. it's assessing the balance between firmness and inflation because of these policies and their effect on activity. and we have the fed cutting again in 2026. so, a couple of cuts, a pause, then cuts after that. those are assumptions that will undoubtedly change as we hear more about desired policies and implementation. but that's what we are thinking for now. >> and steve, the final word. >> well, i think next year is going to be interesting. there was an interesting exchange between the fed chair and the ap report if i'm not mistaken about whether tariffs are inflationary. there is a big debate about this. kelly, you have been at the forefront of it i think on this show, what you may have is realizing the price level. what that means it is, the fed dials and inflation in its forecast, but oesn't continue that into future years. so, that rise of inflation that

we may have seen, for example, 2025, i think michael was smart to start talking about this idea that some of the expectations for the trump administration are built into the feds forecast, in any event, that is not animating policy. what that means is, you have to start looking through the feds inflation forecast to figure out what policy is going to be. it's going to be difficult next year. i will point out powell said uncertainty 13 times in the conference. he said it only five times in the prior one. >> markets don't like and certainty as we always here. today, the fact that the data is better, stocks are feeling much better mood. gentlemen, thanks. michael david of morgan stanley, we appreciate your time today. while markets are cheering the cooler than expected readout on pce, my next guest is not convinced inflation is easy. he bought in september and is heading higher possibly preventing cutting rates in 2025. michael landsberg's chief investment officer at credit wealth management. michael, welcome.

you kind of have to have a view on this in order to figure out how to invest next year, right? >> absolutely. i use inflation data really growing or not growing with the gdp? a kind of makes a matter of assumptions. even though the data came out and looked good, you look under the hood, core pce was up 11 basis points. it's 2-8 year over year, that's an eight month high from where we are. next, housing is also in an eight month high. it's accelerating the wrong way. i'm not a big pce fan. these were tracked there for us. all the data shows me is inflation is accelerating. >> so, in the most meaningful way, obviously, is how this comes to bear on the markets. what are you doing with the portfolio for next year? >> kelly, you have to look at things that will be transitory. you look at inflation going to

celebrate, we have a plan for a portfolio in things that do well in an environment where inflation is accelerating, i don't think it will accelerate as much as it did in 2022, but the idea is having things that do well and in that environment, businesses that are placing power. we think that's going to be an environment where you want to have a portion of your portfolio geared to the fact, are we going to be underestimating inflation? the track record is they underestimated the last time. we move our allocation towards -- hey, it will start to get hotter than people expect. >> i appreciate the viewer who pointed this out esterday, but it does seem significant to me that we don't have the same kind of commodity rally that we did at the ighest inflation a couple years ago. when jeff created goldman sachs he would come on and tell us, look, there is too much stuff, too much money in the hands of

people chasing too many things. that was a global phenomenon back then. now we have oil prices going nowhere. i was checking on copper prices. it's not even one of the top searches on our website anymore. you know? natural gas is idiosyncratic. so, from that sense it doesn't feel like the market is acting like rod based inflation will be the story for 2025. >> i don't disagree. the fact that we are going to have an administration is going to be more interested in expanding will keep corporations lower. of the index hit recent highs for the year not too long ago. and the food prices are continuing to go higher. i am not expecting the 9% cpi number we had in 2020 and 2021, but i think it's going to go higher. i really look at the direction. and the direction is higher. i don't want to make assumptions. i don't want to focus on the absolutes. is it 2.9, 2.95? we think it goes higher. we want to make our investment assumptions based on that. i don't predict it's going to go to eight or 9%. but higher is not to%. >> to meet more regularity. what do you do with tech? do

you like small caps or are they hurt by inflation? >> i think are. we haven't had small caps really in the last three years. it's basically about where they were three years ago. [ inaudible ] made no money in the last two years. i still understand it's nasdaq being negative, but that's attractive. there is some froth they are, but there is some value, there are things beaten up a bit. you're going to pay for a.i. you want to get the growth from the stories, that will make industrials solid as well. we have opportunities here because earnings growth is there. i stay away from small gaps given the fact they are cheap, but they are chief for a reason. >> crowd strike? you like royal caribbean which has been a tremendous performer like united rentals. anything else on the top of your mind? >> i think this is a business

that had a problem in the summer, a snafu with an update, stock pummeled, every two years, now it's every three years. cyber security is not going away. it is one of the ways as a.i. gets harder and smarter, cyber security gets harder and smarter. we like royal caribbean because obviously the cruise lines, a lot of demand, and a cheaper vacation. as people feel inflation in the last 3 to 4 years, cruise lines are cheap opportunities versus going to a hotel and caribbean resort, you can get more for your money. >> we were talking about that yesterday. i will leave it there. thanks for your time. appreciate it. michael landsberg, landsberg bennett. coming up, we are potentially 10 1/2 hours away from the government shutdown. house republicans are moving on to plan c after last night's deal fell apart at the 11th hour. what's the latest from capitol hill next? olympic maker novo nordisk , novo nordisk diving while

their competitor is up 3.5%. we will talk to analysts who say we are nearing an inflection point for the tired dob one space. we are back after this . >>th i> iss the exchange on cnbc. big news for mahomes! i'm switching to iphone 16 pro at t-mobile! it's built for apple intelligence. that's like peanut butter on jelly... on gold. get four iphone 16 pro on us, plus four lines for $25 bucks. what a deal. ya'll giving it away too fast t-mobile, slow down. to go further, you need to be ready for what's down the road. as energy demand continues to rise, we're harnessing breakthrough innovations to increase production in the u.s. gulf of mexico. our latest deepwater development, anchor, produces

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welcome back to the exchange. we are about 10 hours away from a possible government shutdown unless congress can strike a deal to keep the lights on. emily wilkins has the latest from capitol hill. emily? >> hey, kelly. we are now on to plan c. house republicans are meeting behind me right now trying to hash out exactly what their next move will be. they have a couple different options. they can just continue the 2024 government funding into march of 2025. they also have an idea that they could take more or less what they voted on last night and break it down adding lawmakers vote on each component. you can see them vote for the government funding. you can see them then vote for disaster aid, $110 billion they are, then aid for farmers. i was chatting today with one lawmaker who voted against it last night, chrisman pat connick. i asked if she had some of the concerns about everything that had gone down. listen to what she said. >> i don't think anybody's doubting legislating is messy. the government is messy. but that's part of a process. >> the congresswoman told me

she is better about the process now. she seemed optimistic going into the meeting but said she was waiting to hear the exact pitch from house speaker mike johnson. even if republicans are able to get e question now is, what's going to happen with the democrats? you already heard concerns from the autocratic leader, kim jeffries as well as the top upper breeder in the senate about the process. we have not heard anything specific from them the new potential plan has been announced. house majority leader chuck schumer -- senate majority leader, rather, also took to the floor this morning saying if republicans wanted to avoid a shutdown they had to start working with democrats. >> if republicans do not work with democrats in a bipartisan way very soon, the overnment will shut down at midnight. it's time to go back to the original agreement we had just a few days ago.

>> we had a couple lawmakers who say, yes, the government could shutdown actually at midnight, it could be a short shutdown lasting only a weekend that doesn't reek lawmakers out quite so much. there's also discussion right now happening on the debt limit. if you remember, the initial bill last night would include a two-year extension. it's not clear if that would part of this new plan c. however, i understand from lawmakers in the room that there are discussions about taking a look at some of the legislation next year and coming up with an agreed-upon amount to raise the limit to, and another agreed-upon amount to actually cut from government spending, a lot of moving balls right now, a lot of things are tentative. one thing that doesn't seem to be sure is it's going to be very, very difficult for lawmakers to avoid a shutdown, and if this does go longer than a weekend, it could have serious economic consequences. a new analysis is out for addicting it can cost the economy up to $6 billion a week. >> lle, stick around.

let's talk more about how we got here and the influence musk has had on lawmakers. the economic policy [ inaudible ] cnbc contributor, i don't know if it's your line or someone else's, is he the digital with or is everything now the digital whip? >> i think in this environment i would probably say, everything is the digital whip. it's not hard for a certain movement arising on social media being picked up by influencers and tendons, obviously, the chief would be elon musk because he owns the social media platform, and he's not hesitant to tweet or x post a lot. listen, i would pay attention to those for the eight republicans, house republicans who voted against plan b. and over the next four years, i would worry about them and the influence of a project, maybe more than elon musk. >> so, if nothing else, they

have renewed kind of power in this sentence because what [ inaudible ] is taking on this. that brings me to the next question, is this sort of what the public who voted for trump wants? >> well, i think there are strong republicans. perhaps elon musk is one of them who thinks what the public wants is a radical change in government, maybe what they are doing in argentina, massive budget cuts, do people want that? i think people sort of, you know, want there to be change and want the government shaken up. but they are not very specific about what that change would be. president trump wasn't specific about what that change would be. there is a void. elon musk is filling that void. it remains to be seen. that's with the public overall wants especially when we moved to specifics. you're going to cut $2 trillion? where's that going to come from? that's a different ballgame.

>> trump did not run on the platform he did in argentina. you know? he ruled out cuts to social security and made it obvious he wasn't coming after entitlements, and you can do anything meaningful. it's obvious he wants to redo his tax cut. it feels to me like the mandate he was left with was, yes, we like that you're going to safeguard some of these expensive programs and things, and sure, on the side of musk we can reform the way the government works and clean it up a little bit, get rid of the waste, it seems to me that has become the central hallmark of what people think this whole administration is about. it's not clear to me at all that's what he ran on or was elected to do. >> listen, i think there will be points where elon musk can have a lot of influence in stopping something. the whole government is built on the ability to stop bad things from happening, to slow things down. that's going to be the case in the narrow converse. also issues where even his critics would say he has some knowledge about.

you know? a.i., electric vehicles, space, if nasa kills the sls program you can probably think elon musk. if we get something done on immigration which elon musk wants, that would show his influence. beyond those kinds of issues, the kinds of big, broad entitlement related issues which killed the presidencies in the past, george bush, george w. bush failed badly on social security, i don't the scenario changed very much unless you ran on that agenda and won easily on that kind of specific agenda, good luck getting anything done on it. >> and emily, i will turn to you for the final question. this will all come down to the actual process. what does the next 10 hours leave opportunity for in terms of moving any kind of legislation along? >> i mean, in terms of the legislation to keep the government funded, the fact that the matter is, the house has to set up a process. they are look at doing this.

the process will take a little longer. they opted for the senate. some stuff doesn't happen instantaneously around here. even if the action they are discussing happens behind me, it will take time to get done. also note, when it comes to spending, when it comes to this debate, you know, you saw the initial package put forward to from the government this week. everyone talked about how it was 1500 pages and how this new one is only about 100 pages. but the two biggest spending components, the hundred billion dollars for disaster relief and then the $10 billion in assistance to farmers, that has stayed. over in the senate there is a bill that passed the house that would add another $200 billion to social security to expand it for certain individuals. so i think it goes to show exactly how hard it is to find cuts because there is so much bipartisan consensus around things that people want, things

they can use to help their constituents. >> absolutely. emily, we will check in soon. james, always a pleasure. james with aei. coming up, the 12th day of shipmas coming up, and how the company is positioning for 2025. and as we have breaking news, we check on the market rally. we are 200 points off that now. so, 1.5% for the dow, nearly that much for the s&p and the nasdaq, even rustle up, we are back after this. 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. ♪♪

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hi, everybody. welcome back to the exchange. i am tyler matheson. south korean investigators issued another summons. demanding president yoon appear on christmas day. he has blocked searches of his office. he was impeached last week for briefly imposing martial law on december third. and with flu season in full swing, cases are expanding nationwide.

is it the cdc data from today. 33 states reported high to very high levels of flulike illnesses, doubling from the week before. the agency cited low rates of vaccinations behind the surge in cases. at the party is officially over. party city is closing down all of its stores. where will you get your halloween here? cnn reporting that barry whitman told employees today the company is ending operations immediately, citing challenges for its collapse. party city filed for bankruptcy after canceling nearly 1 billion in debt, keeping most of its 800 stores open. not anymore. back to you. >> i'm trying to think. i guess you can get balloons at the grocery store, and a lot of them were party themed stuff. are people just getting it on amazon maybe? >> amazon, local vendors, we have jonathan the balloon guide. he is awesome. his balloons last forever. >> i'm calling him next time. >> you should. >> tyler, thanks. it's the final day of open a.i.

12 days of shipmas. the final announcement a few moments ago is the big one. katie rooney has today's tech check. >> open a.i. is closing out what hey call shipmas, the frontier model, they are calling it 03 jumping from 01, the leading model stops, thinks and fact checks it out. here's what the ceo sam altman just said. >> 03 is a very, very martin model. 03 miniature is a very smart model, but really good at performance and cost. so, to get the bad news out of the way first, we are not going to publicly launch these today. the good news is, we will make them available for public safety testing starting today. >> he opened the live stream saying it can solve math equations that would take a phd mathematician hours or even days. it is a function improvement. the tech industry was waiting for this before today, over the

last 12 business days they rolled out another model that turns text into video. that was the showstopper. but there were a lot of gimmicks in there, too. you had one 800 chat gpt, you had santa mode, and the product blitz caused some eye rolling. finally, many shared those on social media. the reactions underlined how hard it is right now to shock the world after it has been a banner year so far in a.i. competition still fierce out there, it might be one reason open a.i. has been aggressive on marketing, the updates even before the new model, for example, that ended up being on this late. in recent weeks google stole the limelight starting to launch gemini 2.0 which was greeted with a lot more fanfare, i would say, van shipmas. >> 100%, they stole christmas . gemini stole christmas. gemini stole shipmas. >> stole shipmas -- yeah. gemini is like the grinch. that's a good analogy.

>> it was in the middle of all these announcements . the kind of casually came out with 2.0 which did while people without the marketing. also, elon musk tweeted a reply about it almost endorsing it. that was interesting to see. a lot of positive feedback -- >> let's break over the capitol hill warehouse for republicans are out of their meeting and listen to steve scalise. >> those are what we are looking at. we are talking about the debt limit , too. we put the debt limit on the floor. that was voted down. you know, 99% of democrats voted no. a few of our members voted no. it did not pass. we are still talking about that , too. it wouldn't necessarily be in this package. ultimately, we will bring something to the floor through suspension or rule -- [ inaudible question ] >> are you xpecting a shutdown? >> [ inaudible question ]

>> the debt limit is taken out because the democrats walked away from that last night. that was on the floor last night. >> [ inaudible question ] >> have you briefed the president-elect? >> is an instructional start in january. we are looking for success. we have a bold agenda that starts in january to lower inflation and get credit under control. >> [ inaudible question ] >> do you think there will be a shutdown? >> we can stave that off. obviously, we took a vote last night to stave it off.'s >> tonight, mister leader? do you vote tonight? >> thank you -- >> that's our camera looking for perhaps the next lawmaker as we hear from house majority leader steve scalise, we have about a shutdown, and plan c at this point that might help keep the government open. we will continue to bring you more news out of washington all afternoon as we get it. coming

up, it has been a december to forget for ealthcare, down 6% for its worst month in nearly 3 years and trying to avoid a third straight week the drop of 2% or more the first time in 10 years. olympic maker novo nordisk is pledging after trial results for ethics for mental weight loss drugs missed expectations. it's the worst day for this company since 1987. at our next guest says we are nearing an inflection point for the whole space. she joins us next. ♪ tech check is sponsored by comcast business, powering possibilities.

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welcome back. brutal day for shares of novo nordisk down 17% for their worst day in 50 years. a 32 week low on disappointing trial results from a highly anticipated weight loss drug known as -- patients lost an average of 22.7% of body weight. that's incredible. that's an absolutely incredible number, but the target number was 25%. jordan wants to discuss that and what is next with the gop market. we have the head of market research at barclays. it's great of you to join us. why is novo down so much on

this news? >> thanks for having me. what you learn after a while is, so much of the clinical trial layouts are just about expectation setting. you know? the company has published a lot of phase i and phase ii data for the drug. they said this back far by 25%. it looks very achievable. you know, this will still be a fantastic drug, it may be could be the best out there. we still have to see the full data, but they didn't meet the bar that they set, that's why the shares reacted so negatively to that. >> it's so ridiculous. what is the kind of number, the leaders of the pack are olympic and others, how much weight are they shutting? >> fort would go be which is just for weight loss, it's about 15 or 16%. with zep found its over 20%. one of the reasons the shareholders are reacting sharply today is, it's not

completely clear, will this be a drug that's better than zep bound or not? >> that would certainly explain why lily's shares are up 3.5%. you think, if that's the whole issue they should be up more than that. you think we are at an inflection point for the space more broadly? how so? >> yes, obviously, today was a huge disappointment. there has been a lot of good news for this space in recent weeks. one thing that came out yesterday was the fda ruled that compounding will have to come to an end for lilies drug visa, the members of the drug that are available at med spas because they said lily now has enough supply to supply a market for the foreseeable future, and also novo was able to close the transaction which will allow them to expand manufacturing. so, we are going to be in an increased supply situation. that can mean a lot of people

will get access to the drugs in the us. >> does that mean prices are coming down? how is the science of the drugs changing as well? these injectables, we hear about pill forms coming in. i don't know fencing this correctly. how is that distributed? what made that different from leaders currently on the market? >> yeah, so, this is novo's first combination drug. it is the same dose, same drug as wegovy. yes, they are all injectable. you take it once a week. it's pretty easy. there's a huge debate of, could orals open up the degree? the next thing after that will be an eli lilly drug that should have resulted in april of 2025. >> are there any other names, pfizer for instance, who could in some way vault leadership of this field, or is it pretty much set, do you think?

>> yeah, there has really been an arms race to enter this market. we have a house view that novo and lilly will remain the leaders because they have this manufacturing edge and innovation edge. we have seen astrazeneca, us market just did a deal with a chinese market earlier this week, pfizer is working on things internally, so other players will certainly enter this market and it will get more crowded. that is still a few years away. >> and quickly, you think the inflation could be from increased supply, do you think we could expect downward price pressure finally? >> yeah, that's one of the reasons there has been this reason. net prices have come down a little more sharply than i think we were anticipating at the beginning of the year. however, as long as they came up with that in volume as they did in the type ii diabetes market which preceded obesity, it should be double digit sales to come for both companies. >> we need it to not bankrupt medicare, right? >> yeah, you know, that's one

of the big question marks. that's here because the biden administration opposed that they should. obviously, we leave it up to the trump administration to see what they do with medicare coverage of these drugs. that's another question for now. >> emily, thank you for bringing up to speed. we will get things sealed with barclays. barclays. >> > (♪♪) starbucks ise its fourth-down week in a row, the biggest losing streak since 2023, the worst week since may of this year. this as copy prices also keep climbing. starbucks shares are 10% in the past four weeks while coffee and prices are up nearly 12%. more after a break here on the exchange.

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despite that, my next guest is optimistic. we will talk about this as nike appears to be in the midst of what makes it special. here is senior retail analyst siegel -- okay, make your case, my friend. >> it almost christmas. you want to be optimistic here? >> i can be optimistic on lulu lemon or sketchers, even peloton. >> here is the thing, we are talking stocks. so, all the stocks, not peloton, the big growth stocks, you can also find companies that have become cheaper. you can find companies that generally carry a lot of hope, but right now they are not. that's what's going on here. listen, i have an account of the hundred plus alien dollars, but a company of that size is not supposed to move 10% up, 10% down. it is supposed to be steady. that's where we are going to regain. >> i take your point on the following. we owl -- we all know what

happened. you can't get optimistic and hooked on about what the companies will keep doing. still, this reminds me a bit of a starbucks turnaround. i think stephanie made this point. i mean, it's going to take a while. they are going to try to sell this stuff over christmas, it will be good for the consumer. they will market down sharply. this will be a wild turnaround. >> this is a generational call. what here's the important part, we need to reset them expectations. you know why it went down? it went down because of the reset expectations. i will pretend to be a market technician. so, ignore everything out of that. but stock popped up high single digits because the quarter was strong. it was over the next hour when they guided that it then came back down. so, people loved what they saw. they loved the fact that it would be beat. they loved the fact that gross margin was beat. then we heard the next couple orders would be in trouble because we do the reset.

now if you are sitting as an investment, your thinking they just lowered the bar. now i can expect the beats. >> it's a familiar pattern. the ceo comes in, i don't mean takes the stuff that wants to do the reset. i think we have a really savvy choice. the company went all the way up and probably was -- you got the impression sitting on the sidelines going, i'm not sure that's the right direction to go, and you are given a chance to right the ship. >> i don't know him personally. that means what i say might not be on-base. i think the fact i know him personally is actually really good. because there are celebrity ceos, ceos you and i can name. they are the personality. then there are ceos that are the company is much more important, the brand is more important. if we think about nike as we know it today, a $50 billion business in revenues we know today, most people don't know

the name mark parker but he is the one who took it over and brought us -- took us from tens of billions to 15. that is because nike has a brand that is focused on brand equity. it's not focused on trying to disrupt stuff. i think that's what elliott can bring back. >> there are a couple pieces to this. they missed the running thing, fine. maybe they come out with new products. they get back in there, they make decisions on wholesale, now they are trying to get it back. what else needs to happen to kind of increase investors confidence for the turnaround plan that's at play? >> if i were to ask you, name me a nike marketing campaign, it would be hard to do. >> ya. >> we used to be able to do that. when you talk about the gap and mellow yellow, these brands, the campaign matters. he is a storyteller. nike drives the attachment for the consumer. >> is the wokeness a problem? is that a leading customers in the past couple years? >> i'm not smart enough to know that. i'm a gentleman. i look at numbers. you said it's running a problem, here is the beauty of it. they still beat everyone

running. they still don't talk about it, the sheer dollars, $50 billion of revenue, there's no company that comes lose to selling $50 billion of shirts and shoes, that means they are selling to everybody, they just don't get the brand heat. well, they get that air force one is too much, they took it too far, now they have to recalibrate. that's the point. you and i need to be talking about the story of nike -- >> quickly, i remember back in the days when they and under armour would rival each other each day. should we expect those kinds of announcements as well? >> i think the idea of nike -- [ inaudible ] that's what people call marketing. >> demand donation dollars? >> they are very understandable about where they need to be. they call it demand creation as opposed to just marketing. that's a big pt arof this reset

they just announced yesterday which means that falls through. that stuff we are talking about, next year, you and i will be able to list some very strong marketing choices. >> i will put it in the calendar and look forward to it. thanks so much. i appreciate your time is always. that's it for the exchange. tyler is getting ready for an effort -- epic power lunch. i will join you on the other side of this break. this is our future, ma. godaddy airo. creates a logo, website, even social posts... in minutes! -how? -a.i. (impressed) ay i like it! who wants to come see the future?! get your business online in minutes with godaddy airo

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