and welcome to "power lunch." look at that! take the family to dinner, because stocks, they are rallying. your investment dollars, higher across the board. it is a big turn, kelly, in what has been a rough start to the year, although the mag 7, by the way, they're higher. and it has to do with inflation and earnings. we're going to hit all of it. >> i think you're also watching oil prices on reports of a cease-fire between israel and hamas. we're circle back to that in a second. but look at that, up 3%. >> yeah. we'll get more on it later, kelly. >> we're looking at a move in the ten-year yield, as well, a big drop after this morning's cpi report. the core rate was not up as much as expected, and that got yields down to 465. we're seeing reaction in interest rate-sensitive sectors. housing is one, home depot, another leader on the dow today, as mortgage rates take some

pause here, we shall say, from the backup that we've seen lately. home depot, up nearly 3%. mohawk, e, brian, some other names popping. >> let's get right to your money. markets, as we showed you, they're up, price hikes, aka, inflation, coming in a little bit cooler than some feared. that is good news as well. also seeing a slight drop to bond yields, which if we see yields go down, that tends to, not always, but tends to help equities. let's talk more about it all with your lead guest, jason ware, cio of al bion financial. it's a been a rough start to the year. different pop, like 9-to-1, up-to-down. that's a good ratio. what is your take on cpi, inflation, bond yields, and equities? >> good afternoon, brian. there's a lot to celebrate today. and the markets are reflecting that. we had the softer-than-expected inflation report, i think the underlying elements of cpi

looked pretty encouraging. a fair amount of anxiety going into this cpi, so we have a relief rally underway. we had strong earnings from the banks. we've shad news of a deal between israel and hamas. so there's a lot out there happening that is ing for equity investors. meanwhile, the backdrop for the economy and for earnings look good. >> yeah, earnings look good. that's good, because here's the thing. i don't like to talk about -- you know what, jason, sit tight. president biden is speaking right now about the cease-fire between israel and gaza. >> at long last, i can announce a cease-fire and a hostage deal has been reached between israel and hamas. more than 15 months of conflict that began with hezbollah's brutal massacre on october the 7th. over 15 months of terror for the hostages, their families, and the israeli people. more than 15 months of suffering by the innocent people of gaza,

fighting in gaza will stop and soon the hostages will be returned home to their families. the elements of this deal are what i laid out in detail this past may, which was embraced by countries around the world and endorsed overwhelmingly by the u.n. security council. the deal is structured in three phases. phase one will last six weeks, and includes a full and complete cease-fire, withdrawal of israeli forces from all the populated areas of gaza, and, and the release of a number of hostages held by hamas, including women and the elderly and the wound. and americans will be part of that hostage release as well. the vice president and i cannot wait to welcome them home. in exchange, israel raised hundreds of palestinian prisoners. and during phase i, the

palestinians with also return to their neighborhoods, in all the areas of gaza, and the surge of the humanitarian assistance into gaza will begin, and the innocent people can have greater access to these vital supplies. over the next six weeks, israel will negotiate the necessary arrangements to get phase ii, which is a permanent end of the war, a permanent end to the war. there are a number of details to negotiate, to move from phase i to phase ii, but the plan says if negotiations take longer than six weeks, the cease-fire will continue as long as the negotiations continue. i've spoken to the mayor of kuwait and the president of egypt. and we have pledged to make sure the negotiations will keep moving forward for as long as it takes. then, when phase ii begins,

there will be an exchange for release of the remaining living hostages, including male soldiers and all remaining israeli forces will be withdrawn from gaza and the temporary cease-fire will become prm. and finally, phase iii, any final remains of hostages who have been killed will be returned to their families. and a major reconstruction plan for gaza will begin. this, this is a cease-fire agreement i introduced last spring. today, hamas and israel have agreed to that cease-fire agreement. and the whole ending of the war. you know, those of you who have followed the negotiations can attest, the road to this deal has not been easy. i've worked on foreign policy for decades. the toughest negotiations i've ever experienced. and we reached this point because of the pressure that israel built on hamas, backed by

the united states. hamas' longtime learn was killed. hamas' strongest supporter, iran, launched attacks on israel. and those attacks failed after my organization organized a coalition of nations to stop them. and after i ordered the u.s. ships and planes to come to israel's offense, we also shaped israel's strong and calibrated response, destroying iran's air defenses, but avoiding an escalatory cycle of an all-out war. we also organized a coalition of 20 countries to stand up to attacks by the houthis, including their missile attacks in israel. then hezbollah, and another of hamas' strongest backers, were significant weakened on the battle field. and its leadership was a story of our support, israel's negotiated cease-fire with them, and after that, lebanon finally

elected a new president. who's not beholden to hezbollah. and he begin a new chapter for the lebanese people. all told, these developments in the region, which the united states helped to shape, changed the equation. and so once protected and sustained hamas is far weaker. iran is weaker. iran is walker than it's been in decades. hezbollah is badlyraded. and after more than 15 months of war, hamas' senior leaders are dead, thousands of hamas fighters are dead. and the military formation have said destroyed, with nowhere to turn, hamas finally agreed to releasing hostages. you know, there was no other way for this war to end than with a hostage deal. and i'm deeply satisfied this day has come, finally come, for the sake of the people of

israel, and the families waiting in agony, and for the sake of the incident people in gaza, who suffered unimaginable devastation because of the war. the palestinian people have gone through hell. too many innocent people have died. too many communities have been destroyed. and this deal of people of gaza can finally recover and rebuild, they can look to a future without hamas in power. you know, the bible says, blessed are the peacemakers. many peacemakers helped make this happen, including an extraordinary team of american diplomats, who have worked nonstop for months to get this done. secretary blinken led the effort. secretary jake sullivan, national security adviser jake sullivan, bill bern, brett fein, and the vice president worked relently, as we worked to

deliver this deal. i would also note this deal was developed and negotiated under any administration, but the terms will be implemented for the most part by the next administration. for these past few days, we've been speaking as one team. this has been a time of real turmoil in the middle east, but as i prepare to leave office, our friends are strong, our enemies are weak, and there's a genuine opportunity for a new future. in lebanon, there's an opportunity for a future, free from the grip of hezbollah. in syria, a future free from the tyranny of assad. and for the palestinian people, a credible, credible pathway to a state of their own. and for the region, a future of normalization, integration of israel and all its arab neighbors, including saudi arabia. the g-20 in delhi in september of '23, i rallied key countries

behind a vision of an economic corridor, from india across the middle east to europe. that vision can now become a reality. but a risk as well, including isis and iran. even in a badly weakened state, but, but, we're handing off to the next team a real opportunity for a brighter future for the middle east. i hope they will take it. let me close with this. my friend for years in the united states senate, former senator george mitchell, who did so much to forge piece in northern ireland once said about diplomacy, he said, it is a 700 days of failure, and one day of success. 700 days of failure, one day of success. well, we've had many difficult days since hamas began its terrible war. we've encountered roadblocks and setbacks. we have not given up. and now, after more than 400 days of struggle, a day of success has arrived.

god bless all the hostages and their families. may god protect the troops of all of those who work for peace. >> -- this deal will be in the next administration. how do you see this future? and also, how much do you give to the trump team for the deal? trump is already taking credit for it. >> well, you know, this is the exact framework of the deal i proposed back in may. exact. and we got the world to endorse it. secondly, it's america's support for israel that helped them badly weaken haum and its backers. and create the conditions for this deal. and thirdly, i knew this deal would have to be implemented by the next team, so i told my team

to coordinate closely with the incoming team to make we're all speaking with the same voice, because that's what american presidents do. >> how many americans will be wlooends the hostages are being released? >> all of the exact detail of how many people are being held, how many bodies will be returned, will owl be forthcoming, all of it. all of it. >> -- will hold? >> i'm confident. >> who deserves credit for this, mr. president, you or trump? >> is hat a joke? oh. thank you. >> that was president biden speaking on the israel/hamas cease-fire agreement just now, updating the nation. although leaving some questions out there. eamon javers here to wrap the key takeaways for us. eamon? >> the president outlined a

three-stage process that's now been agreed to by israel and hamas, and part one of that process is a six-week period of time in which they're going to work out the release of some of the early stages of hostages, including, he said, the elderly, women, anybody who's wounded. and also any american hostages will be released in that first phase. phase ii is going to be the release of remaining living hostages, including male soldiers. and then in faze iii, the president referred to a major reconstruction of gaza, which has been absolutely devastated in the wake of israel's invasion there, in response to the october 7th terrorist attack. so all of that taken into place, the president suggested, sets a road map now for peace and development in the region, even though this is just a cease-fire deal. this is president biden, who's clearly optimistic about the future in the region, in the wake of this nearly year-long negotiation. the president saying that this is an agreement that he put forward last year.

and he says that he prepares to leave office, america freensds are strong, and its enemies are weak. the president also referring vaguely to the incoming trump team, suggesting that he worked closely with the trump team on negotiating the final details here, guys. we'll wait and see the final details in terms of who's released, how many people are still live to be released, and when all of that will happen. >> and first, the news of the cease-fire is the news. that is the good news. that is the peace, that is what we've been waiting for and that should be the key takeaway, and hopefully it is. but this also being the united states, eamon, at a time of transition, you know where i'm going with this. kelly and i were kind of looking at each other. it appears, at least on this side of the camera, that both administrations are trying to take part or some or all credit for what happened. you heard the final question there yelled by reporters, something, i think it was kelly, who do we take more of this to,

you or trump. >> he said, trump's team is taking credit for that, do they deserve and he just said, is this a joke? >> and biden did say they were working as one with the trump team. is there any way to galvanize -- tell me if it's correct that both parties, both administrations do appear to be taking credit for this. >> absolutely. brian, you know the old saying, victory has a thousand fathers and defeat is an orphan. i think that's what's playing out here. this is a very good thing for the united states, very good thing for israel. this is a cease-fire that's largely on israel's terms, because of the decimation of hamas that happened in israel's military response, which has an you heard president biden say was backed by american military power and aid, but clearly, both the outgoing and the incoming administration are trying to take credit for this, former and future president trump put out a statement on social media a short time ago, saying this would never have happened if i wasn't elected. you just heard president biden

saying, this is the exact deal that i put on the table months and months ago. the trump team came in late and we worked together with ooemp. you know . i mean, that's the nature of these things, brian. when there is a big win, a lot of people are going to say they're responsible for it and that's what's happening here. >> eamon javers in washington, d.c., a huge story, nonetheless, glad you're there and no doubt have not heard the last of it. thank you so much. now we've got some breaking news as well on the economy. steve liesman, about 17 minutes later than we had planned, but still news right now on the beige book. >> you've got to stack it. it's a linear medium, as you know, television is. is beige book is very interesting, because it is replete with mentions of the incoming policies or potential policies of the incoming administration. here's the headline that we look at every month. economic activity increased slightly to moderately. consumer spending moved up moderately, but most districts

reported strong holiday sales that exceeded expectations. that's what our cnbc data show as well. high costs however, weigh down construction. manufacturers were stockpiling inventories, including to contracts of the 12 jury districts in anticipation of higher terrorists. high mortgage rates held by mortgage rates. contacts were concerned about changing immigration and tariffs could negatively affect the economy in 2025. employment ticked up on balance, six districts reported slight increases. six said there was no change. there was difficulty -- we see this every single beige book, difficulty in finding skilled workers. layoff reports, however, remain rare. wage growth was moderate. they like to follow it in terms of the anecdotal evidence. some say pressures have eased in this regard. prices increased modestly, and some reports of flat to decreasing prices as well.

input costs rose, but some mentioned a flat-to-lower input cost. some mentioned the potential for higher tariffs to contribute to price increases. taking a page out of your book, brian, 23 mentions of tariffs, 11 in the last beige book, nine mentions of immigration, just three in the last beige book. these becoming, guys, realities for businesses out there. they're pass along those concerns to the federal reserve districts, and that's how they're ending up in the beige book and part of the thinking of the federal reserve. >> i guess tariffs are part of my beige book now. they are now, because they go to energy and all of the canadian imports. and besides oil and lumber and sheep, i don't know what we import from canada. >> a little clarity will go a along way when it comes to the incoming information for all of these uncertainties out there. we'll see how it's played. we're expecting some executive orders on day one. i don't know if they involve alternatives. i don't know if tariffs will be

those ssed by congress, by fiat of the executive branch through emergency powers that they have. we don't know how much they're going to be, who they're going to be on, and we don't know if they're retaliatory tariffs, and we also don't know, and this is a conversation i've enjoyed having with kelly over the last several months, how or if they show up in the inflation numbers. >> that is going to be the big question for 2025. steve, thanks. steve liesman. let's focus in on bond yields, another angle on that. rick santelli out in chicago talking to the traders. hi, rick! >> hi, yeah! boy, yields dropped big-time! let's see. here's the numbers today for cpi. up 0.4 on headline, up 0.2 on core, year over year headline up 2.9, year over year up 3.2 on headlines. do those sound cold to you? no, cold is walking here from the other exchange. it's cold outside! those numbers are not cold. the market did have a huge move,

though, and we'll discuss with a trader why and keep an eye on that dollar index. it's almost back to unchanged even though rates have taken a big drop. let's go pitch one question for you, okay? >> shoot. >> none of this data looked very cold to me, yesterday or today. yet we saw a big drops in rates and your market screamed. why? >> yeah, everybody looks at the price action and comes up with an answer for why. >> oh, boy, is that true? >> the truth of the matter is, the vol is very well supplied, the sku is very well supplied. so once we filled that gap to the pre-election number, people were looking for that and there was already of buying there already under the hood. >> so now they've come down and filled all of those holes in. >> correct. once that happens, once you get enough support with the vols supplied, all you really needed was a slowdown in the momentum. once you do that, there are structural flow that is come back into the market, particularly in expiration week.

this is a january opex. this is the biggest opex for single stocks. most people focus on december. that's a big index. the biggest index expiration, but january is also really big. all of that decay, of those puts and that vol means dealers have to buy back all of their stocks and hedges particularly going into expiration. that's a big reason for this buyback. we're right at the 20-day. it's really just back to the middle. >> what you're really saying is viewers, if you're out there, looking at the data, listening to me at 8:30 is interesting, but more about positioning that moves markets. >> 100%. positioning is supply and demand and wait. if there are people who are short, and it's overwhelmingly short, you should probably be prepared if the momentum doesn't continue for buying pressure back. very similar in options markets with those put shorts and short stocks, the decay forces those dealers, those banks, those market makers to come by those deltas. that's what we're seeing today. all we needed was a neutral number, which is basically in my mind what we got.

that momentum did continue, and there's plenty of demand underneath the market. >> excellent, jim, excellent. very quickly, we want to point out, if you look at where the market was on wednesday or thursday of last week, it's the nervousness about these numbers that started friday that we're reverse ought. back to you. >> rick, thank you! jim, thank you so much. and after the break,hye ulben e cusp of a generational change to international trade. "power lunch" will be right back.

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impact, joining frus washington, d.c., is cnbc contributor michelle caruso-cabrera, always great to see you. and stitch this all together for us. what do you think is in the works on the tariff front, really? and what's it all going to mean for the dollar and the economy? >> the headline about the office of external revenue is clearly meant to be a headline and speaks to president trump's beliefs that we can raise a lot of money from tariffs. that's quite possible. there's more to it than that. i brought a prop. this is a report that's making the rounds in washington quite a lot, are written by the incoming head of the council of economic advisers, steven mirim. it's a user's guide to restructuring the global trading system, and this is about connecting tariffs to our national security, to making sure that our allies and our rivals know what we can expect of them and what they can face if they don't go along with some of the things that president

trump thinks are important, including reciprocity when it comes to trade. are you committing to your nato commitments and are you meeting them? those are all things that haven't really been discussions within international trade. this is a dramatic change if it happens. this is going to be the first major change to the way we think about international change since the end of world war ii. >> michelle, you know where i'm going to go with this. the incoming president promised a smaller government, they have the department of governmental efficiency, they'll whack this, whack that. and now we're talking about creating a new agency. isn't that going in the wrong direction? >> i think that's president trump's style, in that he wants to create a headline. i think he likes the play on words, instead of the internal revenue service, the external revenue service. and it's also about making the point that he wants other countries to be pay for being able to ship to the united states. the thing is, you'll hear a lot of economists say, we just heard steve liesman talking about, great point, about just to what

degree could tariffs be inflationary? the simple answer is, oh, the consumer pays for it. not always. oftentimes, currencies adjust. the country that's importing, their currency may weaken. so buyer here in the united states actually doesn't see any impact on the price. that's what we saw with a lot of the chinese tariffs, back when they were implemented the first time under president trump. there's a lot of trade-offs here and it's much more complicated than it's being made out to be. >> that's an interesting question of, how exactly does it work? a lot of people are saying, no, these are tariffs on u.s. companies and we're the ones that pay. and you have the theoretical framework of, no, no, in the longer term, it's the tariffed nation that pays. it's like both of these things will be trimt, which will create a lot of confusion. >> it depends on what happens to the currencies between the two countries. if the currencies adjust, if the

other country's currency goes down, the u.s. consumer, whatever the buyer of the product is, won't see much of an effect, or less of an affect. if the currencies don't change or, you know, you don't have a currency effect, then you could see higher prices. it really depend on situation-to-situation. think about it. if suddenly you're buying something from a foreign country and their currency has gotten much cheaper, you can buy a lot more of their stuff, right? so you don't realize that the price has gone up, because your dollar is much stronger. >> i thought it was interesting, look, last time around, we almost had a one-for-one offset. this time around, we'll see exactly how it works out. >> atch for the mar-a-lago accords. something that's being talked about bringing everything together to talk about, or at least our allies, to talk about, okay, what's going to happen with trade and with currency. you think about the brent and woods accords, but this time, owns a resort and they happen to

be negotiated at voters. >> and he can't resist a label to your point about the external revenue service. michelle, thanks. appreciate it, as always, michelle caruso-cabrera. >> now the latest on the los angeles fires. contessa brewer joining us now from altadena where the eaton fire is still burning. it's less than 50% contained. i'm a native angelina. the palisades one of the richest areas of america, but altadena is not. this is working class people, underinsured or uninsured in many cases, also getting burned out. >> reporter: the good news today, is there's no flames actively burning. that containment percentage has to do with when they go around the line and they're popping out the hot spots, that's the good news. but we've been watching the aircraft go overhead and still

making sure that with infrared, there's not hot spots. you can see that the permanent repeater melted and it's just down, all the way. and look, if residents can return to altadena, the fire has destroyed a lot of the businesses where they would have frequented. in this row alone, you've got what was a grocery store, there you go, that's the pizza place, there's the liquor store. we took a drive on the side streets to illustrate how completely the fire eradicated these neighborhoods. and as you said, brian. these are modest, middle class homes, where the median household income is about $129,000, according to the u.s. census. residents told local news outlets already they're getting offers for their land, offers that seem too low. governor newsom has issued an executive order for bidding unsolicited offers that undervalue these properties for three months. as i have reported, a lot of these homes will be underinsured

or not insured at all. homeowners might feel desperate and overwhelmed and if they're approached with cash in hand, that might seem very tempting. the experts say they should hold off. meanwhile, altadena may have trouble enforcing these rules, because -- well, it's an unincorporated part of los angeles county. there's no mayor, there's no city council that normally you would see in these situations advocating for the community. it's something we'll keep an eye on. i just got an alert here. the federal task force and state task force, local task force joining together to crack own on fire-related crimes. we'll keep our eye on that one, too. >> as i heard earlier on cnbc, it's a difficult point, but a good point. even if you're covered by insurance, to the point where there's enough coverage to rebuild your home, that's the best-case scenario, it could be years before many of these people are able to rebuild, because of lack of builders, lack of resources, lack of

materials, and also permitting delays. these people are facing potentially years of disruption in their life. >> reporter: yeah. so the governor has tried to streamline the permitting process and cut some of the bureaucratic red tape. the mayor of los angeles has done the same, but again, in altadena, where there's no city, it's a county issue, will that be the case. will that happen here? you're still seeing a lot of law enforcement around here, trying make sure that as residents come back, they're safe. there's just layer upon layer of complex challenges ahead. >> contessa brewer, we're glad you are there. very tough situation there. thank you. meanwhile, los angeles residents are increasingly turning to third party apps for information and to save lives. julia boorstin looking that the side of the story for us. do tell, julia. >> reporter: well, kelly, i'm among the angelinos s that are turning to new apps on realtime

updates on evacuations, winds, and air quality. watch duty has shot into the top ten in the app stores' nationwide ratings, with 2.5 million downloads since the fires started last week and 12 million unique users this week. that's compared to last year's 7 million users. this nonprofit is operated by 15 employees and 200 volunteers who listen to radio broadcasts to delineate evacuation zones. i spoke to its ceo about how watch duty shares information faster than government resources. >> the magic is in the humanity of and this the people that do this work. the government should be doing this. skpufrl, they're not. they are doing other things. they're just not good at signals intelligence and software, like we are. >> reporter: other apps have seen download spikes. genasys protect, public safety app citizen, reddit threads are sharing detailed local

information and weather apps including clime is sharing air quality. the city accidentally sent a false evacuation alert to all 10 million l.a. residents late last week. >> a false alert to evacuate? >> it was a false evacuation warning, to all 10 million residents. >> wow. julia boorstin in los angeles, glad you're safe. julia, thank you so much. very quickly, kelly, a lot of these homes, they have an environmental risk score, with realtors. some of the homes in the palisades had a risk score at 5 out of 10. >> i mean, i've heard even higher. core logic had at vp of theirs joining us on the show. by core logic's own score, it was an 80 out of 100, but he still lived there. he said, i walk my kids to school down the block. they're aware of these risks, and the risks are probably even

higher than what's being reflected in that data. after the break, call it salt in the wound. trump promising relief to xper b se y he may already be backtracking. we'll hear from new jersey frank pallone about the salt deduction cap, coming up. (uh-oh) producer : yeah, schwab lets you invest and trade on your own. and if you want they can even manage it for you. not to mention, schwab has a team of specialists for taxes, insurance, and estate planning. both producers: all with low fees. carl: we're experiencing technical difficulties... uh, carl... schwab! schwab. a modern approach to wealth management.

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welcome back. lost in all the other headlines is what could be a massive deal on taxes. remember, as part of his tax cuts and jobs act from 2017, then president trump instituted what i only half-jokingly call the blue state payback. and that was a cap on how much families can deduct in state and local taxes, known as salt, from their federal tax return. before 2017, it was unlimited. so people in high-tax states like this one could write off some of those costs. but trump capped that deduction at just $10,000, which like it or not, was a huge blow and maybe a huge hidden tax hike to those in higher taxed areas. but now negotiations are ongoing, and your next guest is hot on the topic and says the entire deduction should once

again be back on the table. joining us is congressman frank pallone of the great state of new jersey. congressman pallone, thank you for joining us. i want to clear something up. when i post stuff about it, a lot of -- bless you, kelly. a lot of people come out and say, this is just a tax break for the rich! yes, it will benefit higher-income people. but let's be clear, in a state like new jersey, where property taxes on average-priced homes can be very high, this is not just an issue for higher-income people, is it? >> no, it certainly isn't. and what i hear from poem are seniors, retirees, people on fixed incomes that are really suffering. and i know you said it was a hidden tax increase, but it was a real tax increase for them. because all of a sudden, you know, they were paying thousands and sometimes $10,000 more in federal taxes. so it's hurting people that are on fixed incomes, retirees,

seniors. those are the ones that are most concerned, and should be. >> and there are people that will come at, you know, come at us online, as well. and i'll represent them. although i want to be very clear. the tax cuts act of 2017 was a gigantic tax hike for myself and many people i know about. that said, there are people who will say, why don't you just have a state with better fiscal management and lower taxes? i get the point, congressman, but it's also kind of not the point, because you live in an area when you have a tax gain that's set up, but if the rules are changed mid-game, it's a different story. >> also keep in mind that the cost of living is higher in new jersey. because we're a densely populated state. also, new jersey gets very little money back from the federal government, compared to how much they pay. so we're paying a lot more income tax than, you know, places like mississippi or

alabama, that get a lot more back than what they pay in. there's so many reasons why this is unair. but you know, brian, the biggest problem i have is that i think that trump is backtracking again. in other words, he's the one that caused this from the beginning. then he came here and said, oh, i'm going to get rid of the salt cap. and well, maybe we'll raise ate little, but not that much. i think he is backtracking, and i don't like this idea that maybe we'll raise the cap a little to help you a little bit, but not go back to where you were able to deduct the whole thing, which was what was promised during this campaign. >> so bring me up to speed. look, this is going to expire at the end of the year, the package. so something has to be done, or else we are going to go back to the way things were. to get this passed, especially through reconciliation, how much does it cost, congressman? and how does that factor into what's likely to happen? >> yeah, you know, kelly, when you talk about, it's going to

expire, i would rather that the trump tax bill did expire. >> i know, yeah. >> i think that would be more fair. most of this -- most of the trump tax bill goes to, you know, large corporation and the wealthy. and the people that are hurt, are like i said, the retirees, people on fixed income. i don't have a problem with it expiring. i'm just concerned that the republicans are going to put it back in place again and the only people were going to benefit are going to be large corporations and the wealthy. >> my point is, because it's going to expire, they're going to have to do something. it's not like we can -- they have to act on this, because they don't want the kind of tax hike for the corporate side or what have you that's going to hurt the economy. what do you think is most likely to happen? and how much does it cost? >> well, i think i'm concerned that they're just going to want to re-authorize the same thing, help the corporate interests, the billionaires, and then, you know, come up with maybe some

slight increase in the cap. go from 10 to 12 or who knows what. and you know, new jerseyans, the people on fixed income, not just in new jersey, new york, and a lot of the other states will still have this huge tax bill, that they did not have before the republicans initiated this a few years ago. i don't have a specific numbers, you know, that i can give you, kelly, but we -- you know, if you look at this from the point of view of how much this cost versus how much it's going to cost the federal government to go into debt to give the corporate interests and the billionaires a bigger tax break, it's really minuscule by comparison. >> i know, look, i grew up in virginia. it's a tough sell to people in those states -- >> but youly here, now! you live in new jersey. you have five children! lots of deductions. >> they would love -- our property taxes were a tenth of what they had been in new york when we moved down there, congressman. so, yes, in these states, we all think it's unjust, but there are a lot of parts of the country, i

don't think they're going to get behind that. >> >> i know. >> well, the problem, what they don't realize is that states like new jersey or new york are paying a lot more in federal income taxes per capita than they are. i don't know about virginia, per se. but certainly, we're either number one, number two or three, something like that, in the relationship of how much we pay versus what we get back. and again, that's because if you pay more taxes, you know, oftentimes you get less back. >> we both moved from virginia to new jersey, congressman. i'm trying. i'm working on it over here. congressman frank pallone. i've just been here longer. congressman, thank you so much. "power lunch" will be right back. (vo) oof, stuck paying for that old phone?

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wow. a lot going on today. a number of big headlines around

energy happening right now as well. first up, president biden at the top of this show speaking on the cease-fire between hamas and israel. it's good news all around. now, for energy, you would normally see the price of oil go down on headlines like this. like the idea of reduced risk in the middle east, but oil is actually higher right now. up nearly 4%, back above $80 a barrel. likely a couple of reasons why, kelly. first up, incoming president trump is seen going after iran in a big way, when he takes office. iran's oil exports, they have been gaining steam. they have been growing the last couple of years. so this could make some oil go off the market. also got some new sanctions put on by the biden administration on russian oil a few weeks ago. those were seen impacting global oil supplies. it's all impacting oil and gas stocks. as you mentioned, i heard in the show, "the exchange," 1:00 p.m. eastern time, the exxon oil and gas etf 15 of the last 16 times

ever. >> we have donated closure of critical colonial pipeline. this pipeline expected to be closed through friday. it's all done to check for a possible leak in georgia. the colonial pipeline, you'll hear about it when it's bad news, is the critical artery for gasoline from houston to here. there is plenty. don't go out right now and fill up. we talked about it yesterday, kelly. plenty of gasoline right now. but, we do see in a longer closure of the colonial, longer than a couple of days, supplies could start to be affected around here. >> i know. >> but we're still not there yet and calm down, everybody. >> energy has been really strong this year. the oil price where it is. i appreciate the explainer. this has a lot of people's attention right to figure it out. another story we're watching, the food and drug administration saying they'll ban the use of red number 3. it's a synthetic ye that gives food and drinks their bright red color. it has been linked to cancer in

animals, but still in thousands of foods. but it was already banned in cosmetics. >> in 1990, they banned it in cosmetics because it might be dangerous. we've been eating it for 40 years. >> in candies, cereals, strawberries, cherries. president trump's president-elect pick rfkj has pushed for the removal of dyes. the u.s. and canada lead in the consumption of ultra-processed foods. so what does that mean for the companies that make these products? barclays says it depends on the exact type of regulation that might be coming how much consumption falls, will consumers buy cleaner label products. >> by the way, those are one-year moves. we're showing these -- if your on the radio, we're showing huge declines in general mills, mondelez, and pepsi, those are over one year. not right now. >> but it's notable. mondelez, we were up 23% whatever. >> but this is not on red dye number 3. >> it could be in anticipation of some of these issues, of

course, other head winds, high rates and so forth. clear and more strict label guidelines could be an easy policy achievement, and that's why we're seeing pressure across the stables. >> why was it 40 years we've been eating this stuff. and secondly, why now in the last couple of days of the administration are we suddenly banning it? >> what i've been told is consumers have always wanted to keep these -- so when froot loops or anything tries to do what they're doing, consumers rebel. we'll see if this time is different. and it's an easy thing to do ahead of what could be bigger changes coming. >> okay, well, on that note, it's the old saying, when one door closes, another one opens. maybe we'll see that with red dye. but we'll talk about social media. tiktok's b ithu.ann e s. takes effect on sunday. could that help snap? we'll talk about that and more in three stock lunch. car, where are we going? we're here. (♪♪)

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welcome back. it's time for three-stock lunch. we'll hit three different stories, hy they matter to each other and what would a trader do with these names. he's will mcgoth. it's good to have you back. let's start with goldman sachs,

which is higher after beating fourth quarter estimates. up 6% today. they've doubled their profit year on year. you buy it here? >> hey, kelly, thanks for having me on. as i just mentioned, they crushed earnings beat by $3.60, up to $11.95. revenues are up 22%, beating by almost $1.5 billion. you just nailed one of my talking points. they doubled last year from 300 to 600. strong technical pattern up 5% today. i like diversified financials, and goldman sachs, no pun intended is the gold standard. they're one of the most tech-forward investment banks in the world, with higher rates, they get higher net margin interests. they can be smarter with their balance sheet. but i do have concerns here, kind of what i would say peak economy about what's going to happen going forward. and given the run-up and given the success, i would just be a holder here. i wouldn't necessarily buy or sell. i would be happy owning it. and you know, watching for it to

go igher here, most likely. but not initiating new money. >> all right, will. well on sunday, unless the supreme court steps in, tiktok could be banned. we don't know exactly what that means, but it could either go away or be completely controlled. whatever. is this a reason to buy snap? >> so tiktok is all the rage. i'm a teen girl dad, guilty of watching reelz and social media myself. consumers probably are not going to be happy with tiktok potentially going away or dying a slow death. one problem here with their stock is that meta is more profitable and less expensive, so being less profitable and more expensive than me ta is a problem for snap. i have a concern with it going from $65 down to 12. if you've been an investor in snap this whole time, assist tough call. you wait and' what happens. you know, with tiktok here. but otherwise, it's a sell.

clearly, it's a sell. because meta is the better company here. the one thing i would just kind of throw out there as a curveball, and it could be an x factor, is watch elon here. you r know what he's up to. could we see him come in and swoop up snap or tiktok at the last minute and save the social media world? who knows. but that's the one little swan i'm looking for in the space. >> will, in the quick final seconds that we have, what about trade desk? they just announced they'll add sin cerra, making the second-ever acquisition since they launched in '09. like it? >> trade desk is an interesting stock. nobody's really heard of it. they've put together advertising campaigns for folks that don't want to go to local tv and radio and/or google. they have solid analytics, but the acquisition of sincerra massively increases their analytical capability, which helps them fend off google, a 60 market cap, 80% gross margins and 20% revenue growth.

we liked it before sincerra, siner isva a cherry on top speaking of red dyes from earlier. i would be a buyer here of the trade desk. and i'll keep things -- could they a potential suitor for google one day? who knows? >> if that kind of thanks for w lunch." "closing bell" starts right now. welcome to "closing bell." i'm scott wapner from post 9 at the new york stock exchange. this make or break hour begins with a great sigh of relief with the subsequent drop in yields and what it all means and he'll be here in just a few. 60 to go in regulation and it's been higher all day after that inflation prin. take a look at the nasdaq today, up 2.5% and the s&p is good. the ceasefire in the middle east adding to the positive sentiment and the vix dropping back under 17.