unemployment, it fell to 3.7% in the last report and wage growth remaining buoyant around 4% and that's the concern for the fed. all important numbers inflation, we've seen it continue to come down and fedcosming down to target of 2%. we know the fed is done for now on rate hikes and it's just a matter of when they start cutting and how many cuts we get next year and for everybody in the bidding wars, is it 3 or 5 or 7? the reality is as the data continues to come out, we'll see those numbers change. cheryl: david, thank you for joining me. by the way, i'm filling in on "maria bartiromo's wall street" tonight so make sure to tune in. that's it for me. how about kelly o'grady.

kelly: that's great, cheryl. i'll be tuning in to see you on wall street tonight. happy new year, my friend. all right, folks, can the bulls pull them on the record high and can watch the whole show to see. investors taking profits on the final trading day and the dow is any gain for the third straight record and all three majors flat for the week and dow snapping three day win streak and s&p on pace to close lower after five days of gain and nasdaq on track to close in the red for the second day in a row. the bulls outwin the bear this is year. all three indexes will end 2023 double done a lot returns and the dow up over 13% and s&p 500 gain 24% and 934 points. what a year. the nasdaq rallied over 43% this year thanks to what else,

artificial intelligence boom top trend nvidia, meta and tesla. ai chip leader nvidia rocketing over 230% and meta, social network power house up over 193% and investors piling into tesla with a gain of 103% right now. basically it's very good to be elon musk, don't you think? i'd love to be a billionaire but such is life. cryptocurrency major re-brand and a comeback this year and bitcoin notched triple digit gains 153% and almost 154 we their yum up 93% and this rally took crypto along for the ride. they all jumped over 300%. you can see coin base right now,

397%. marathon digital, 591%. that's incredible. in 2023, they all earned a top spot, or spot among the top performers on the stock market this year. santa, not everyone was on his nice list. crude oil delivering 2023 a lump of coil and ending 6% and gio political concerns applied pressure to the commoditity and watching to see if the bulls turning around in the final day of trading in the year, what is 2024 hold for investors? right to the floor show, joining me now is the fitzgerald and price feature group senior market analyst phil flynn. welcome, gentlemen, happy holidays. keith, i have 20 start with you because you predicted s&p 500 target if this year of 4750. right now we're at $47.72 so

congratulations. it's a surprising year because we saw these gains with a banking crisis. and recession that everyone was predicting that didn't ultimately seem to land. some analysts are taking the bearish concerns into 2024 so my question to you, what's your target for s&p 500 for 2024 because i'm going to write that double figures right now, and do you think that we're going to see the rally copt? >> well, thank you for remembering that. this is a very tough business and, boy, it's nice to hit one out of the park. i knew my numbers were good, but not that good. i'm looking for $5100, 5200 and the bulk of the gains in the latter half of next year and fed gets benched and foe mo isn't even in the picture and going to be coming to ai and company that are going to leverage that and might have a great year and

might be one for the record books. kelly: 5100-5200, folks, you heard it here first from the picker >. phil, i want your take on the most obvious, nvidia up over 200% on the year and really a banner year. it currently just announce that had it's launching an adjusted version of gaming procespedeser in china and there's run to run on this -- room to run on this, why and how much do you think? >> because we're only scratching the surface when it cops to ai. nvidia is the leader; right? i mean, this is very similar to first discovering the internet, what's that internet thing; right?

remember 25? it ex-ploided to the upside and changed the way everybody lives and shops and this is the next iteration and so substantial and will change every business on the face of the earth and it's just beginning. that's why nvidia will lead. there's other stocks we've got to find that will be the next secret ai stock and if you want to be stayy, stick with the leader in the space that's the strongest for the next 10-20 years. kelly: quick follow up on that, what's some of the others you're watching because some investors are looking at nvidia saying maybe i missed the band walleyen there. what's one or two others you're thinking? >> look at coin base, the exchange because they're going to be moving into that as bell. like arista networks and they do

expansion technology and the others we'll watch developing over the next couple years and coming from places that are surprises and places you don't normally look at and a lot of it is in crypto because it's going to become mainstream and the intertwining of the artificial intelligence. kelly: we had the ceo of arista networks on in december and they were have ago good run with all the partnerships and, keith, there's been a lot of buzz and investment, and i haven't seen the moment where all the puzzle pieces come together and you really see that the tech has developed enough where companies can kind of get that step change by implementing it. you sort of eluded to this in the first question, but what are some of the sectors that investors should be watching that you think in 2024 are going

to make the step change when it cops to lev ranging ai? leveraging ai? >> that's a super important question. there's two schools of thought and one is a company like apple using ai behind the scenes. what do you think drives siri and the wearables and that's all ai. we just don't hear about it. the other side of the coin, we're watching this very, very carefully and the next big jumped nap medical technology will come when companies like pfizer and gilead and eli lily and look for speeding up of treatments they're working on and discovery of new cures and i think we'll solve many diseases plaguing humanity in the next ten years thanks to ai. most of which comes into play the next couple years. kelly: what about agriculture? i've seen a lot of companies leverage that, john deere, autonomous tr trucks and not grt if you're a farmer in terms of the labor, but what about that

space? >> well, i think that is really interesting because now you're going to talk about efficient water use and higher yield and vertical farming. there's a lot of thins that happen because we're going to be all to draw texts between crops, methods and chemicals and things to the spew source of the food and not just the food itself. kelly: it's a really interesting space to see that play out. phil, i want 20 tap why your space on energy and 202t2023 underperformed and i'm looking at oil market and getting mixed signals and the price topping and weakening demand in china and i was reading your note about a 6.9 million-barrel plunge, which would indicate, hey, there's demand there and what are you thinking happens in the early part of 2024 >> a bill

rally in energy in the new year and negative narratives took over and prices went and you happen slowed down demand. now that prices have come back down, we expect demand to exceed expectations and think we haven't seen the full impact of the opec production cuts and that's coming in the next week and supplies will tighten. >> mood in the new year. kelly: where does oil go and inflation. >> thank you, gem. extra points and new year. >> happy new year. year. kelly: i want to get to breaking news and israel is calling claims that the country is

committing genocide and idf said they're extending in the area in an effort to dismantle hamas' infrastructure. going over to the red sea, the u.s. shot down a houthi drone and ballistic missile as it launches an international task force from maritime security to try and persuade other countries to continue to use that region for shipping routes and grady trimble joining us from the dc bureau. grady, we have international reluctance about the task force and what are some of the main concern s? reporter: kelly, some european countries seem to be distancing themselves from operation prosperity guardian, that the u.s. launched to protect ships in the red sea and reports that some countries don't want to be too closely associated with the u.s. and supports of israel and want to go it a european coalition. the treasury department doing what it can to weaken the houthis slapping new sanctions

on three exchange houses and one person who helped facilitate the flow of money between iran and the houthi rebel militants and sanctions freeze any u.s. assets belonging to them and prevent them from doing business with americans in making the announce p.m. treasury official says the action underscores our resolve to restrict the illicit flow of funds to the houthis that continue to conduct dangerous attacks on international shipping and risk further destabilizing the region and some experts say it won't be enough. >> these actions merely chip away at the edges of the problem. iran has the ability to -- just as russia bypassed sanctions and the iranians have other means of funneling money to the houthis in yemen as well as other terrorist organizations. reporter: even as some shipping companies have started to resume

operations through the suez canal and red sea, others still fear it is just not safe. in fact, the supply chain company flex port say half of all container ships through the red sea taking the long way and around through africa and attempted attacks on ships and u.s. drone antiballistic miss and will brings the total number of attempted attacks on international vessels to 22. kelly. kelly: grady trimble, thank you for that live report. well, it is the annual revolution that most americans make and just can't keep, including myself. we're going to talk to the ceo of crunch fitness about giving that workout resolution a kick after the ball drops. a look at how some fitness stocks are trading today and bow flex up 7.5%, beach body, planet fitness and peloton, some in the

red and some in the green. claman countdown is coming right back. ♪ liberty mutual customized my car insurance and i saved hundreds. with the money i saved, i started a dog walking business. oh. [dog barks] no it's just a bunny! only pay for what you need. ♪liberty. liberty. liberty. liberty.♪ ♪ students... students of any age, from anywhere. students in a new kind of classroom. ♪ using our technology to power different ways of learning. ♪ harnessing ai to plant new beginnings. ♪ so when minds grow, opportunities follow. (sfx: stone wheel crafting) ♪

the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ my little family is me, aria, and jade. just the three of us girls. i never thought twice about feeding her kibble. but about two years ago, i realized she was overweight. she was always out of breath. that's when i decided to introduce the farmer's dog to her diet. it's just so fresh that she literally gets bubbles in her mouth. now she's a lot more active, she's able to join us on our adventures.

and we're all able to do things as a family. ♪ get started at betterforthem.com they're waiting for you. hey, do you have a second? they're all expecting more. more efficiency. more benefits. more growth. when you realize you can give your people everything, and more. thank you very much. [applause] ask, "now what?" here's what. you go with prudential to protect, empower and grow. with everything you need to deliver, you guessed it... more. one more thing... who's your rock? learn more at prudential.com

kelly: folks, we're less than two and a half days away from the iconic ball drop in the new year. according to cbs news poll, 37% of people will make new year's resolutions and that number jumps to 60% of people under 30 and health is at the top of people's minds. 94% of respondents want to improve smelt 88% wanted exercise and 81% said they want to diet and eat better so are gym owners ready for the surge

in customers looking to get into shape? joining us now in a fox business exclusive is the crunch fitness ceo jim rolly. so good to have you on the program. i'm one of the folks look to get to the gym, my honeymoon is in may and i'm excited to workout. we'll see if that continues. but i want to start there. you've got 450 locations in seven countries and just announced a new location yesterday in shawnee, kansas, maybe taylor will pop in when she goes to see travis. wouldn't that be awesome? how are you ball languaging preparing for the initial rush and trying to make sure that everyone stays engaged? >> yeah, great question and happy holidays. it's the most exciting time of the year for us and just like many people, we get excited about people coming in and the new classes and new programming. we reimagine a lot of gyms to

kind of meet the member where they are and there's a bit of weight lifting and hit classes and cardio and try to bring the fun as well. the no judgment gym is crunch and welcome to all newcomers and there's a treppe tourist level we get excited for as well. kelly: meeting the member where you are is an excited point and there's two models you look at and i want to ask you about the fact you run on a franchise model because this year has been particularly tough for the small business owner, liquidity crunch, rising rates. are you seeing any of those impact your franchise see owners? >> we're seeing two things and one is head winds in terms of cost of build ago gym, cost of real estate, the federal minimum wage goes up and state minimum wage goes up in various states and we crushed it in 23 and our

franchise owners did fantastic and opened nearly one gym per week and next year probably two gyms per week and we're very excited about the opportunity so are this head anyone always finding space is the most interesting one now .x lands lords, 20-25,000 square feet, we're open and ready to government kelly: it's an interesting point to follow up on. we've talked to even this week fofolks in commercial real estae business and seeing vacancies you're looking to fill them. what areas of the country are you targeting that you think that there's going to be that appetite? i know there's a crunch fitness west hollywood, los angeles where i'm from. are you looking at areas we maybe wouldn't necessarily expect? >> so that's an interesting question because obviously we look for dense geographies, we look for limited competition where it's available. it's a very crowded space at

this point. but we're starting to explore secondary and tertiary markets as well where maybe the populations aren't as great or dense and people looking for activity and fitness and looking to get in shape and feel got at crunch. that's our mission in '24. we want people to feel the good. we're just deluged with so many negative ideas out there. kelly: when i go and pop in on my show and get the endorphins that rush. however, i would be remised if i didn't asked about the ozempic effect because everyone has been going crazy about oh my gosh, there's finally a wonder drug that maybe i don't have to go work out. are you seeing any impact on signups and people coming to the gym, foot traffic because of the wonder drug craze?

>> i wouldn't say we're seeing much and relatively long line and in my life, there's no easy way out and takes hard work and we put the work in level and going with that. not going for the drug having waste on us and muscle for the gym in preparation and they want to stay away from the muscle wasting one and kelly: that's an interesting take on it and going in on the line. really quickly, your biggest competitors, planet fitness and impressive run up over 50% or so

over the last couple of months and any plans for ipo in my future? we like to break news on the claman countdown? any birdies telling our investors something? >> i love this question, kelly. you'll be the first person i call, you or liz because i love liz too. you'll be the first people i call when we're ready to announce something like that. there's a big 2024 planned. i'd love a come back and share with you kind of what we're going to be doing business wise. at crunch, we're about people. members and team members and culture, it's a big part of our organization and financials so, yes, you'll be informed when we're ready. kelly: we love to hear that and maybe shareholders in the future is who you're looking at. thanks so much, jim rowly, ceo of crunch fitness. >> thanks, kelly. happy holidays. kelly: spacex using the falcon rocket to help the government

with a top secret spas launch and everything we know about the in addition and mutts mysterious space docks into or bit and as travion green space up 35% and rocket lab and virgin galactic coming down 3.5%. we're going to come right back. ♪ this is your season to smile -- to raise a toast and gather together, to wrap up the fun and round up the gang. to help get you ready, your aspen dental team

is celebrating 25 years of affordable care with an epic anniversary savings event. right now, new patients without insurance get a free full exam and x-rays. plus, everyone can get 20% off their treatment plan. but hurry, because while the season won't last, the memories you make together will. aspen dental. book today. we all know that words have power. they set things in motion and make us happy or sad. but there's one word that stands out, because when people say it, lives are changed. it's not a big word. it's itsy bitsy. it's only three little letters. but when you say it, the life of a kid like me can be changed.

so what is this special word? it may surprise you. it's yes, yes, yes, yes to becoming a monthly supporter of shriners hospitals for children®. that's right! your monthly support allows the doctors and nurses at shriners hospitals for children® to give the most amazing care anywhere and change the lives of kids like me and me and me. because people like you have said yes. now i can play football and i can play catch and i can walk. so what do you say? will you say yes? right now? it's so easy. all you have to do is pick up the phone or go to loveshriners.org right now and say yes. when you say yes to giving just $19 a month, only $0.63 a day. we'll send you this adorable love to the rescue® blanket as a reminder of all the kids you're helping every day.

my life is filled with possibility because of the monthly support of people just like you who called the number on your screen and said yes. yes, yes, yes. your yes is making a difference in my life and the lives of so many other kids like me. thank you. thank you. thank you. thank you. thank you for giving. please call or go online now. if operators are busy, call again or go to loveshriners.org to say yes right away.

sofi is helping me get my money right to achieve my ambitions. want to see? (♪) like saving for the ultimate tailgate setup. with sofi checking and savings, i pay no account fees, and earn a competitive apy. sofi can help you fund all your ambitions, no matter how big... or small. ready break! like investing in the athletes of tomorrow. (♪) kelly: houston, we've got a

secret mission? well, the u.s. military strapped an autonomous spacecraft to one of spacex's most powerful rockets and launched on a mission from the kennedy space center late last night. u.s. space force not sharing many details on the mystery mission, but there's speculation it could be taking a longer and deeper trip into space. let's go live to dana marie mcnickel live in miami. >> this military un-crude spacecraft called x367 and it's a mystery for a lot of space enthusiasts out there because little information is being released on what the mission is about, where it's going, how long it'll be in space. this long held government secret launched successfully last night witching a ride on falcon heavy and space f's most powerful rocket, which means it'll probably go deeper into space and staying longer than it has

on any previous mystery mission. >> three, two, one, officials say this will help the u.s. military carry out cutting-edge research and we have some institute, experts say it's a deliberate mill stair decision to leave the public in the dark and gaining superiority in space. >> there's a number of speculations for what it's being used for including surveillance, sensitive communication, spy sat lies or delivering weapons in space. there's a lot of intrigue for the public. >> take a look at this diagram and all the individual companies of the rocket and takes off verbally like a rocket and --

vertically like a rocket and lands and it returned safely to earth and touched down. in previous mission of the x37b lasted around 900 days in space and we'll see how long this mission lasts. >> well, danamarie, we said it earlier in the program, it's good to be elon musk. thank you for that live report. >> that's for sure. kelly: a fox business alert, boeing is announcing all chinese 737 planes are back in service following the two fatal crashes and last week the airline manufacturer made a direct delivery of 737 dream liner to china and the prelude of ending the freeze on 737 max deliveries and take a look at face car. keystone lake racing higher -- fisker up close to 9% and announcing a plan in january to accelerate real estate and deliveries for

2024 and ev maker reporting that deliveries rose over 300% from the third to fourth quarter of 2023. the stock is down close to 74% this year. now things are not looking good in the ride share sector after both lyft and uber was downgraded. lyft downgraded from neutral to reduce and uber to neutral. it's the take rates and it's the portion they receive as commission and driver's operating expenses are rising. they raised price target on lift from 11.70 to $13 and 59 to 62. they're both take ago hit. boston scientific announcing it's begun a clinical trial for the devices for the treatment of

persistent defibrillation. the bio-tech firm said it's been used in trials of attribute fibrillation and expects the move from drug and food administration and up 3% today. now this, holiday shoppers, they turned out in droves. retail reality come back down to earth in 2024. preview of ceo of tanger and going from the dow 30 heat map. travelers at top of the board there and proctor & gamble. the claman countdown comingyo backu . i'm also mr. leg day...1989!

anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. - when did doing business become more about culture wars and less about well, business? some companies today bring politics into the boardroom, then into our living rooms. that's why i use spotlight reports from 1792 exchange. here, i can search more than 2,000 companies, to see if they care more about divisive social issues than about running a sound business. isn't it time we got back to the business of business? learn the risk to your company or family at 1792exchange.com.

dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones kelly: santa wasn't the only one gift giving this holiday season. u.s. retail sales excluding automotives was 3.1 annually

this holiday season running from november 1 through december 24to the numbers for mastercard spending polls spending online increased at a faster pace than in store with apparel being one of the top categories for shoppers. explains why my parents got me. if anyone can explain, it's tanger outlets and 30 open locations throughout the u.s. and hundreds of brands in the malls and they can spot the trends of american consumer this is year so let's bring in president and ceo in a fox business exclusive. steven, thank you for joining us on this holiday week. i want to get your take on what you saw cassioppi ectodotely in your out-- an ebbing deadly and maybe the consumers were deal

hunting and what did you see in the outlets and supporting what we're seeing from the companies >> sort of. we don't see sales till sometime in january and we can talk about the traffic starting as early as november 1 and leading up to holiday selling season. and beyond. talk about the week leading up to christmas. thursday was an amazing week. a lot had to do with weather across the country was very supportive of getting people out. that friday before super saturday, which we're starting to call fabulous friday. we saw unbelievable traffic starting to build and then went into super saturday. kelly: it's a good point about the weather and gets us out and

rainy and then say, we'll see if amazon can do the trick. >> what's your categories talking to the manager thinking about own buying habits thinking to manifest and what we saw this year and saw some of the others big categories. >> the great categories and brands like gap and republic and make earlier revising and the numbers and we'll go for the lineup and going with the customer knowing the line and they can lead the charge going

to folks who are actually seeking the grants they love with the best possible price. kelly: thinking okay, maybe i like this and i want to return or exchange this and talking about this talking on the week and retailers saw 743 billions in returns in 2023 according to the national retail federation and seeing a lot of food traffic come back and are people looking to return those gifts and are some of the stores trying to mitigate when i'm going to one week return window to stem the losses? >> i think returns is a great opportunity for retailers. retailers that want to be foully on me need to sell goods out of the front door and take products back in the form of exchanges instead of returns because in

the bribes and mortar and selling out the exchange of the product and get you into the size, color and style and sell more things and we see the opportunity for the customer who bringing something back to put cars in the parking lots following the christmas selling season. a big mart of the business is gift cards for people that don't want what to get or what size. it's a lot of gift card business as well. kelly: i'm always the person going in and hunting for the deals of everyone returning their stuff. that sweater or tv or something that was too expensive before the holidays and now i'm coming for it. that's definitely on my list of things to do next week. while i have you, i've always

found the retail sales, especially after the holiday season to be a really good indication of what we may see from the american consumer this coming year, and there's obviously been a lot of concern about cracks. credit card debt at an all time high, personal savings rate. it is starting to tick back up, but it is pretty low right now. so what are you expecting, based on what you saw in the holiday season, traditionally when consumers go all out, what are you looking for from the american shopper in 2024? >> well, going into '24, we're optimistic and a great indicator of what the consumer will be looking for in 2024 that leading indicator is probe the retailers and we do a lot of business with retailers and signing them leases and putting them in shopping centers and extending leases and raising wents and

finding new brands coming into the shopper centers because they know the customer is there and signing up for returns of 5-10 years and length of those leases, they're vogt the customers will be shopping the centers and for some time to come. kelly: it's something i'll be doing, shopping, shopping this coming week, going to hit outlets. really appreciate your time, stephen yalof, thank you for being here. >> thank you, kelly. kelly: arrival of record amount of migrants is having a profound impact on some small businesses right there in new york city. lydia hu is on the ground in the big apple to find out what cans happening in the neighborhoods surrounding one hotel taking in the new arrivals. there's a look at today's nasdaq winners. jd.com up 1%, t-mobile, o'reilly

automottive up and still near 1%. we're going to be coming right to duckduckgo on all your devie

duckduckgo comes with a built-n engine like google, but it's pi and doesn't spy on your searchs and duckduckgo lets you browse like chrome, but it blocks cooi and creepy ads that follow youa from google and other companie. and there's no catch. it's fre. we make money from ads, but they don't follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today.

♪ ♪ kelly: this month is shaping up to be a historic month for migrant crossings at the

southern border. according to the department of homeland security can, u.s. border patrol agents took more than 225,000 people into custody e through the first 27 days of this month. to put that into perspective, the previous record for apprehensions was 224,000 back in may of 2022. now one of the ways border states are handling the surge is sending migrants to northern cities. lydia health care u is outside the roosevelt hotel in new york where the migrant crisis is affecting small business in the area. lydia, it's good to see you. >> reporter: good to be with you tonight, kelly. that's right, we're outside of the iconic roosevelt hotel. it actually closed during the pandemic and reopened about seven months ago as an 800-bed migrant shelter. and since then small businesses say they're suffering. this usesed -- used to be an area that would thrive amid so much commerce, but now when you walk around the perimeter of the building, you see this, vacancy. about half of the retail spaces

appear say can, boarded up, some with -- vie cant, boarded up, some with signs advertising for rent as they're looking for new -- new tenants to take over. one coffee shop opener said since the shelter opened sales are down between 20-25%. the foot traffic is just not what it was just before the shelter opened. and in just the last two weeks alone, more than 7,000 migrants have arrived here in new york city. more than 68,000 of them remain in new york city's care. the president of a nonprofit representing 300 city business leaders said to fox business in a statement this, quote: conditions around the roosevelt hotel reflect the impact of the my grant crisis on many -- migrant crisis on many communities across the city. cheerily, this has delayed or reversed small business recovery from the pandemic. new york city remains a top destination for migrants as they are able to obtain shelter at

places like the roos roosevelt hotel under local law. clearly, the taxpayers are bearing the cost. it will cost new york city roughly $12 billion through the middle of 2025. but this illustrates yet another cost, the impact on the small businesses bearing the brunt and the impact on real estate across the city. we'll send it back to you, kelly. kelly: yeah. it's startling to see how this is impacting small businesses. a really important point that you highlighted, and well done fighting the music at the beginning of that report. lydia hu live in new york for us. okay, folks, the closing bell ringing in just six and a half minutes. markets are down today, but there is green on the screen if you look at the week. the s&p 500 on its way to its ninth straight week of gains. that is going to be the longest weekly winning streak in nearly 20 years, and the dow is on pace for its longest weekly win streak since february of 2019. the nasdaq also a riding high op

a 9-week winning streak, so really impressive performance for the markets. and stocks are paragraphing to close out in record or year, our closer says the rally is not over yet. he says the major averages could continue to rise another 10% in 2024. joining me now is around a boar financial president jeffrey small -- arbor financial. i love that outlook if it is true. so i want to ask you, i know that a you think there's too much money that's sitting on the sidelines, that there isn't enough institutional investor money in some of these a. i. stocks. so when do you think that's going to change? if when are we going to see this big influx? is it going to be at a rate cut? >> well, i think we're seeing it right now. since the fed is,ing basically sees inflation as no longer a headwind with, everybody seems to be jumping on the boat. and i think you have to put things in perspective, kelly. the nasdaq is down 2.5% the last 24 month. so we're really just trying to get back to break even again

each though a few of the mag enough if sent seven have hit their -- magnificent seven have hit all-time highs. a lot of these stocks are tremendously underowned by institutions right now, and that gives us an opportunity to get in before them as the little guys want to look for ways to increase their returns. but normally, we have a 10 percent increase in markets, in the s&p and the dow towards, as we march towards the very is first rate cut which we expect in march. it doesn't mean there won't be choppy days in between because as we know, markets don't form a straight the line and go straight up. kelly: yeah, fair point. we are looking at sort of two years of consolidating those gapes, and traditionally you do see that uptick after something like this happens, kind of a rebalancing. i'm curious to get your take though on the magnificent accept. they've had a huge run -- seven. i remember sitting in this very seat last year saying, oh, wow, meta's down for the year, amazon, oh, gosh, they all got

hammered. now we're seeing incredible performance. but some people are saying that they're overvalued now. you say differently. why? >> well, i think, number one, the mag enough isn't seven are magnificent because they bucked the fastest rate cycle increase in history. in a declining earnings environment, they outperformed. and we can expect that trend to continue as 2024 marches on. their earnings will continue to go up. the ones that are all-time highs, nvidia, apple and google are at all-time highs, meta and amazon are about $25 below their all-time highs and trading at a pretty decent multiple of 30 on meta, 80 on a.m.son. as a interest rates decline, as the economy, inflation slows down more than the economy, we're going to see valuations go up. and, of course, these are the things that you want to own because they're in demand. not to mention that we're on the cusp of a secular revolution in

computers with automated intelligence and automated learning. that is going to become part of everybody's life. and as a the use cases go up and we're going topsy sitting here in a year, kelly saying, okay, how are we going to the use a.i. in our profession, to organize our lives? these are going to be components that are going to change the way we look at technology. and the magnificent seven are on the cutting edge of all of those changes that are going to occur. and so it's not quite as big as the advent of the '90s -- the internet, but it is revolution from the perspective that things are going to change x. that means these company, magnificent seven mainly, are going to do very well the next few years as a result of a.i. kelly: so just a follow-up there, because nvidia is kind to have big banner, belle of the ball this year, if you will, especially with the focus on a.i., but you have them as a hold rather than a buy. so why, what's your preparation there? why done you think nvidia

aamidst this a.i. revolution should be where investors are putting their money right now? >> well, nvidia's going to have some competition next year from their a.i. chips. intel and amd are launching their own chips, have already launched their chips, and we'll see how much of a bite they can take into account in that block of business that nvidia seems to have the edge on. nvidia's not going to be the only player on the block, they're not going to have the franchise on a.i. chips. they are extremely overvalued from my perspective, too rich for my taste. but not only that, the street also thinks that because they're significantly underowned institutional ally. so the retail investor has beaten the institutions for those that have held nvidia. i would continue to hold nvidia. i would not look for a buy until we see a significant price drop of let's say in excess of 20, 25%. kelly: i know another one of yours is amazon, and i've been looking at them. identify been really impressed what they've been doing with almost making themselves a

platform. they're starting to introduce those courses that you can come and learn how to use a.i.. i think it's really mart. i'm very curious to see where that goes. thank you so much for your insights, jeffrey small. happy new year and fingers crossed for a 10% increase next year. thanks for your time. [laughter] >> happy new year with, kelly. cel e cel happy new year. there's just seconds to go for trading in 2023. no new record for the dow today. the s&p 500's 5-day winning streak is over, but if you look at all the major indices, they have had a stellar year, okay? the dow is up over 10%. the nasdaq powered by a.i. and big with tech, over 43%. the s&p 500, 24%. i just want to say have a happy new year, etch. i know it's been a tough year, but many happy returns. "the claman countdown" is over. ♪ ♪ david: hello, folks, and welcome to a special edition of

"kudlow." i'm david asma