Power Lunch - Power Lunch 11/28/23

Episode Date: November 28, 2023

CNBC’s Tyler Mathisen and Kelly Evans take you through the heart of the business day bringing you the latest developments and instant analysis on the stocks and stories driving the day’s agenda. “Power Lunch” delves into the economy, markets, politics, real estate, media, technology and more. The show sits at the intersection of power and money. “Power Lunch” gives viewers a full plate of CNBC’s award-winning business news coverage, plus a healthy dose of personality from the show’s anchors and the network’s top-notch roster of reporters and digital journalists. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

It was so soon. Welcome to Power Lunch, alongside Kelly Evans. I'm Dominic Chu coming up on the show. Did Christmas come early for the markets? The three major averages all up big in November, is this going to be the best it's going to get? Or are things really this good? There's all kinds of questions in play. Plus, Sheehan files for an IPO. The Chinese fast fashion company is valued at $60 billion or more.

We'll talk about what the company is doing right and what people think about it in China, which maybe not much. Maybe. Let's first get a check on the markets, though. This is usually Dom's job, but, you know, correct me if I'm wrong. Dow's up 54, so we're off session highs, but we're better than we were when we were in the red this morning. A little bit of the headwind from that week seven-year auction last hour.

The S&P down a point right now that NASDAQ hanging on to a three-point gain, and the arms race for AI chips is heating up. Today, Nvidia and Amazon announcing they're expanding their partnership to work on new chips. Of course, this comes after Microsoft and announced its own custom chip. You can see their shares of Microsoft in the green anyway. And Boeing shares rise today as RBC upgrades the stock to outperform. Deutsche and Goldman also upgraded them the last couple weeks. Boeing is up 20% in November so far. Let's get back to the setup for the broader market now. And on that note, we bring in Michael Santoli down at the New York Stock

Exchange. Mike, it still feels like this kind of year-end hopium is intact. Yeah, well, there's no doubt that people are leaning in the direction that we bought ourselves a little bit of dip buying potential at least if we do get a pullback into year end. We have been hesitating though, Kelly. I mean, I would say for more than a week around this 45-50 level of the S&P, but before that, in the three weeks prior, you were up 10%. So you've had this sprint. There's a little bit of fatigue in the market. It got pretty doveish interpretation of that Fed Governor Waller speech earlier. That was mostly in the market, though, that the Fed's next move is likely a cut. But I do think that gives some relief on yields, just wonder how much more you can get out of that in the very

short term, because we have been operating for weeks under the premise of where well-past peak yield, peak Fed, peak inflation, even peak oil prices. And what's interesting today is yields down, oil, other commodities like gold up and the dollar off a little bit. So I think we're kind of, you know, just sort of circling around the edges of this rally. And to me, the big takeaway going into next year is what Waller said and the main message has been, the Fed is not looking to really undercut this economy and bring it to a screeching halt, but we just don't know if the economy on its own is going to be slowing more than desired. And so that keeps us in this late cycle psychology and probably perhaps prevents the market from really getting escape velocity

in the broad list of stocks. All right. So there's the setup. Mike Santoli, please stick around because we want to take a look at what CFOs are seeing and seeing in the economy right now. It's our survey of the CNBC CFO Council 50. 50% said that they expect the U.S. economy to end a recession sometime next year. 60% think the Fed has done a good or excellent job of fighting inflation. To that point, 93% of the respondents say that inflation has actually peaked. They're declaring victory. Joining us now to break this all down is Brian Jacobson, the chief economist with annexed wealth management.

Also, of course, Mike Santoli will stick around. Brian, you heard the setup from Mike about what we are kind of seeing, what the machinations are, at least in recent times. Do you feel as though we can declare victory over inflation? History is riddled. Markets or otherwise with people who have kind of come a little bit early to that conclusion. Yeah, thanks for having me. And I actually do think that we can declare victory over inflation. But there are going to be costs to that as far as what's the collateral damage.

based upon the CNBC CFO survey, I actually find it encouraging that a lot of CFOs seem to be anticipating we're going to get a recession. It means that they haven't over-invested in speculative technology, equipment. They probably aren't overstaffed. I think that was also one of the great insights

that I got from reading through the survey results is that it's a little bit easier to find people to qualified individuals to fill these positions. So we're probably past peak Fed, peak oil, maybe also peak earnings for now, maybe get a little bit of a dip, but perhaps if there is that recession that the CFOs are fearing, that it won't be nearly as bad as what a lot of people are expecting that it could be, mainly because they haven't really overinvested. There aren't a lot of excesses that need to be flushed from the system.

Brian, there have been a lot of folks who have been calling for a recession for quite some time now, the better part of maybe two and a half years. We did get one during the pandemic that was brought upon ourselves. We kind of caused it. Did you think, though, that a recession happened anytime over the course of the last 12 to 15 months? There are those who believe we've already had one and that it's all clear now, given the fact that the economy has been reset. Yeah, so here at Annex, we've been talking a lot about the idea of that roving recession. And I do think that the data bears that out.

If you look at historical episodes based upon like the National Bureau of Economic Research, the Business Cycle Dating Committee, those criteria they use, we didn't really have a recession. Maybe back in October of 2022, we did have a brief one where a lot of those indicators were negative except for payroll growth. But, you know, we have had a recession with housing, with manufacturing, capital spending plans seem to be very muted. So maybe we did have a recession there. On the service side of the economy, that's where it was just roaring at. head. It wasn't as though that area, though, was completely thawed from the freezing during COVID. And I think that's one of the key things is that service sector activity continued to thaw, even as the other parts of

the economy were in recessionary territories. Keep in mind, quarter on quarter basis, we did have earnings recessions. We had a couple of them over the last 12 months. And so, you know, maybe we'll get a triple dip recession soon here. And that could cause a little bit of a pullback. Yeah, a lot of things about this have been more drawn out and more pronounced than usual. And in some cases, unlike the past in terms of not showing up at all. I wanted to just quote Brian's point, Mike, and ask you about it. He says, valuations can't save you from beta. Most of the cheapest parts of the market are also high beta like small caps and emerging markets. If we get a sell off, that won't be a cushion. It'll just get cheaper. And that has been the conundrum for investors trying to kind of

find value. No doubt about it. You know, you can pick what to complain about. You know, either the market breadth is awful, has been most of this year, with only a handful of stocks providing most of the index upside. But the cheap stuff, if your complaint is that those seven stocks are too expensive, are pretty cyclical, and at least we'll behave that way. And that's why I'm a little bit wary of this idea of, well, if we get a recession, technically, maybe it'll be mild, and maybe the rest of the stocks outside of tech, have already kind of looked through that. Historically, you don't really see that behavior where the market, you know, in a clear way looks over the valley, something like that. There's a sense out there, maybe from the CFOs as well as investors, has been for a while, like, can't we just get this pesky recession over with?

Like, bring the kids to the chickenpox party, get them sick, and then we're in the clear after that. And I don't think that's how it works. Usually something significant usually goes wrong unexpectedly to actually get a recession, and then you can't count on it being too mild. So for now, you know, I think you can kind of say, great. Economic resilience is something we can celebrate without expecting it to last forever. Speaking of expectations, Mike brings up a great point about the unknown factor there, Brian. I'm looking right now at the CBOE volatility index, which is a measure some people use to gauge how much of a roller coaster ride we're expecting to see. It is languishing below 13. It has been pretty much in a downward trend for quite some time now. That would arguably lead to complacency. Do you believe the market is as complacent as the stock market volatility measures would dictate? Not necessarily, mainly because the VIX seems to be more of a coincident indicator, as far as just how are people feeling now when you see the market hitting new highs, the VIX is usually hitting new lows.

To me, it really just represents, maybe protection is cheap, right, as far as any opportunities, as far as put options, things like that. And so that's one of the things that we're talking to clients about, especially coaching them through this holiday season as they're looking ahead to 2024, an election year anticipating volatility. It's like, well, if that's something that keeps you up at night, maybe there's something that we can do, especially through the use of cheap protection, in order to kind of carry you through this, what could be a choppy season. So I don't think it's necessarily complacency, but maybe just an opportunity. All right. Brian Jacobson, and X. Well, thank you very much.

Of course, our own Mike Santoli. Thank you very much as well. And let's continue the discussion now about the state of the economy and what it means for markets. Rick Santelli is live in Chicago, where bonds just won't play along, Rick. No, and not only that, obviously you're discussing the Vixen, that's on the CBOE floor. We'll get to that. But look at an intraday of seven. When a seven-year auction, as we discussed last hour, moves markets, you know you need to pay attention.

And as you look, it wasn't only sevens, there's two sevens, tens. Everything on the curve moved. And if you look at the fact it doesn't change that sevens, tens, twenties, and thirties, We're still all going to close, basically, at the lowest yields since either the second or the third week in September. Now, let's go find a trader because these things merit some in-depth discussion. Chem, good to see you here. All right. Before we get in anything, I just heard Dom talking to a guest about Vicks being awfully low, considering all the variables going on.

Your thoughts on that? It's not just macro that matters, the flows matter, right? And here we are at a seasonally bullish time. And why is it seasonally bullish? At the end of the year, when the market's up 20%, there's a ton of reinvestment of collateral coming in. Jan 1, there's a front running of flows of that. The biggest explorations in Option land are also December, end of the year, in January and single stock.

All of that skew as it decays through all of these holidays where nothing's going on is a buyback of Delta. All those flows are just too much relative to everything else. That said, you have macro flows from bond yields, from Treasury. issuance that are going the other way. And this push and pull of macro and flows, what does that cause? Exactly what you're seeing today? Markets nowhere. And what does that mean to volatility? It's a sale. Follow the money, follow the flows. All right. Now, you're mostly a volatility trader. You pay a lot of attention to equities. What do you think when we see auctions moving the entire financial complex? Look, the reality is when there's no liquidity, when volume is low,

and you're issuing, you know, a trillion dollars of debt, right? And that's a direct bottom line to supply and demand. The market is a voting machine at the end of the day. That supply is an overhang. At some point, these flows seasily die. And then what happens, and you still have an overhang of macro flows. So that's an important thing to watch. It's just timing it right and watching these issuance as they come through.

You know, Jim, I like the fact that you always have a good macro view of things. Now, we have a CFO survey. at CNBC, it's world-renowned. And many guests were discussing it today. 50% see recession. We don't have a problem with that, do we? Okay. The third variable was inflation is peak 93%.

I can somewhat buy into that. It might have peaked, but it certainly, I don't think,'s going down to 2%-ish. What do you think? Yeah, I think there's a cyclical inflation and then they're secular. I think the reality is cyclically, things are slowing down. So, yes, inflation is slowing.

But if you look under the hood, secular inflation, because of de-globalization, because of all the labor issues that we're seeing as well, the change in populism from where we were three years ago is dramatic, and that is a dramatic difference of secular inflation. I think that's the reason. And you know, and I like the fact you brought up globalism in reverse, because many think that's a horrible thing.

I personally think it's a wonderful thing. I think we should make our insulin here, our drugs here, and if prices are a little bit higher, so be it the last few seconds we have. 60% of the CFOs believe the Fed has done a great job in fighting inflation. I'll give you my answer. Then you can give the world your answer. I think they might have done a pretty good job fighting it, but I think it's gone down regardless of them.

And I think that if you look at the plane that ceded the field of inflation, it was the Federal Reserve keeping rates too low for too long. Real quickly, 10 seconds, your thought. Yeah, the Fed drove populism, which ultimately now has to be reversed, right? We have an inequality. That reversal is ultimately very inflationary. And that's what we're going through right now. Chem, thank you. Kelly and the gang.

Back to you. That's an interesting inflection point. Chem and Rick, thank you very much. Coming up a trip to the mall is next in our look at the retail ecosystem. Today we're looking at the mall operators, the wreaths which own the properties. And a wildly successful businessman spending billions on a side project and being accused of running it into the ground. We're not talking about Elon Musk.

We'll examine David Tepper's rocky tenure as Panthers owner coming up on Power Lunch. Welcome back, 121 million people shopped in stores over Thanksgiving weekend. That's according to the National Retail Federation. And our next guest says this demand paired with low supply will keep retail reeds strong in the face of the continued growth of e-commerce. Joining us now is Alexander Goldfarb, managing director at Piper Sandler. Alexander, it's great to have you with us. And it's pretty shocking how quickly Cyber Monday has become bigger than Black Friday. But why hasn't then been more of a headwind for Moll?

and RET performance? Well, first, thanks for having, thanks for having me on teleodemic. You know, when you look at malls and you look at retail, I mean, think about Santa, right? Whatever religion you are, everyone grew up going to the mall, going to visit Santa, right? So here at Piper Sandler, when we look at the state of retail and you think about e-com and the physical stores, people want to celebrate the holidays. They go to the stores. Think about a Christmas story.

right, that classic sort of iconic movie. They go to Higgins, right, in the downtown. That's where everyone goes. So whether you shop online, you still have that desire to go out and shop physically. And that's the benefit of the malls and shopping centers. And we saw that in COVID where people realize that you can't get everything online. You need to go to the physical stores. And the retailers themselves realize that the ultimate synergy is balancing e-com with their physical footprint.

Yeah. All of that said, while Simon's up 3% in year to, some of the others. Kimco's down 10%. KRG's, slightly negative FRT down 7%. What is that all about? So there are a few things going on. One, last year, which is such an exceptional year, especially for the shopping centers, because they benefited from a lot of catch-up rents that they got from tenants who didn't pay during COVID, also basically zero credit loss. So last year was an extraordinary year. This year, there's been a little bit of a headland, one, from not getting those catch-up rents, to rising interest rates. So that's going to,

a bit of a headwin. But when you look at what the retailers, sorry, what the retail rates have been saying, and we just came back from the semi-annual Neary Conference in LA, the rents are going up. Tenants realize that there's a dearth of availability. When you look at like anchor spaces, so those big spots, it's 97% plus occupancy. When you look at small shop, it's 90% plus. These are numbers that we haven't had. And also keep in mind, once the housing bust happened back in 08, all retail construction basically stopped. So we haven't had anything new for about 15 years. In addition, Toys R Us, Sears, J.C. Penning, all these troubled retailers have been washed through the system and right-sized. And so now when you're a retailer, like you're a Target, you're your T.J., your,

you know, Lulu Lemon, your Apple, your choices are actually not that plentiful. And therefore, landlords are gaining the upper hand. And that's why you're seeing rent growth in a way that retail landlords haven't experienced in decades. Alexander Stom, is there a difference between, say, a traditional footprint mall, right? You know, the freestanding kind of sprawling building with the parking lots all around it, and then taking a look at, say, the strip mall, right, where there's an anchor store, outdoor focused and whatnot. Do you think that there is a trend developing where the demand is at?

Is it in those strip malls? Is it more in those traditional? malls. I see some traditional malls and I see a lot of empty storefronts. I don't see as many of those in strip malls. Well, I'm going to hazard to guess that you haven't been to Roosevelt Field in Long Island. That's a Simon property.

That mall is one of their dominant centers. Stores are packed and any vacancy you see is likely to be leased up, you know, over the next coming months. When you look at like let's say, you know, kite, right, down at South Lake Town Square down in Dallas, it's a dominant

shopping center. It will incorporate tenants who you traditionally find at malls, but it also incorporates the traditional sort of weekly errand types tenants. When you look at Kimco, what they've done at Suburban Square down in Ardmore, which is outside of Philly, is they've read imagine that asset to both still be a traditional shopping center, but also become more of an experiential. And federal, I mean, that's some of their classic assets. I mean, Santana Rowe out in Northern California, San Jose, it is truly sort of a urban, planner's dream in combining hotel, residential, condos, office, retail, restaurants. And what it does, just like Simon does with Roosevelt Field, is it creates a nexus and it creates activity where you don't want to be is retail that's lost its edge, retail that is no longer relevant to the customer. Because once you lose your relevancy, it's really tough to bring it back. And that's the key part

about retail. The dominant centers are getting more dominant and the weaker ones are dying off. And it's really hard to change the dynamic. But that's why the reits are benefiting because overall, they tend to own the better assets. All right. We'll leave it there, Alexander. Thank you so much for your time today. We appreciate it. Thank you.

I'm going to try to go see Santa this weekend, by the way, but I think it's in our downtown. The local mall that's near me is not as packed, I would just say. No? No? Up in your neck of the woods? You know, Stanford Town Center? Oh, yes, but they added the paddle cords. Yes, they did.

All right. All right. Thank you very much, Alexander. Further ahead on the show, Iyer for Iger. around a year since the CEO's returned to Disney, while the stock has held up relatively well. He's had his share of black eyes fighting with DeSantis, with pelts, and cable companies. So how is he holding up in the eyes of shareholders? Plus, growing criticism around Carolina Panthers owner and hedge fund Titan, David Tepper,

following the firing of his head coach, former head coach. Frank Wright will discuss more when Power Lunch returns after this break. Welcome back. It's time for our Power Check. On the positive side today, Newmont mining. This says gold prices trade around a six-month high. NEM shares are jumping 6%. On the flip side, Micron, moving lower after the memory chip maker raised guidance, but still expects a loss on earnings per share.

Positive sales outlook is good news, but investors want to see profitability, and that's got MU trading lower today for your power check. Let's get over to Bertha Coombs now for a CNBC News update. Bertha? Hey, Kelly. The Israeli military says that based on information from the Red Cross, 12 hostages just released by Hamas are on their way to Israeli territory. The latest group of hostages is reported to include 10 Israelis and two foreign nationals.

The first U.S. government aid flight for Gaza is scheduled to arrive in Egypt today. That's according to senior administration officials who tell NBC News that once the flights land, the humanitarian aid will be transferred to the U.N., which will deliver it to Gaza. It's said to be the first of three planned U.S. flights. Pope Francis just canceled his trip to Dubai for the UN climate summit this week. The Vatican said in a statement that the 86-year-old pontev is making the decision on doctor's orders. Pope Francis has canceled several appointments lately because of lung inflammation and the flu. Dom, back over to you.

All right. Bertha Coombs, thank you very much for the news headlines there. Ahead on Power Lunch. The market's Sheehani new object. Yes, I took a little license there. The fast-fashioned giant Sheehan filing for a U.S. IPO, but concerns remain around longstanding issues with its forced labor and climate impact allegations. We'll break down both of those in today's tech check coming up after this. Welcome back to Power Lunch.

Shares of PinduO Duo Duo's parent company, PDD Holdings. You can see they're rocketing higher up 18% after strong results. Pin Duo Duo Duo owns the EAS. commerce site Timu, and this comes as Timu rival, Sheehan, files to go public. It's a lot of names, alphabet soup, but let's bring in Eunus Yun, Un, on set here to break it all down. But we will start with Deerbosa for more on what PIN duo's results mean for Sheein. It's all interconnected, right? It could be. And if you think that maybe Sheehan is using similar strategies as Pinduodwell, that could be really good if you want to maybe invest in Sheehan. Of course, we don't.

don't know anything yet because it's filed confidentially for an IPO, so we don't actually get the numbers or any financial information until it flips that S-1, makes it public. But we do know a lot about TEMU and parent company Pinduoduo. I mean, it's interesting because it's operated on this business model of steep, steep discounts, essentially subsidize all the products so that you loop in or you capture the American consumer. And you might think, how do you ever turn that into a profitable business? Well, Pindwe-Dwell-Dwell has done exactly. that. For the first nine months of this year, it has booked some $5 billion in profits, and it shows you that there is a path to profitability for these huge e-commerce platforms that

operate on heavy, heavy discounts. So if Sheehan is sort of doing a similar thing in a similar model, you could see that maybe it is leading to a profitable business. Can I just follow up with that? Timu is like Sheehan, but it's different, right? Shee in is fashion. It's pretty much close. clothing and wardrobe and attire. But Timu is like the next iteration of some of these apps that we've seen for several years in America that give you access to ultra inexpensive goods that are coming directly from China.

I remember Wish was on my phone for a portion back in the day. What exactly then is what can you actually draw similarities-wise between what's happening with Timu and how can you translate that into what's happening with fast fashion with Xi'in? So it's a great point. So TEMU is like an ultra low-cost Amazon, right? You have all of these different merchants that lists their goods. T-Mu-Pindwo, the parent company, helps offer these really steep discounts. And that's sort of how Sheehan operates as well, super low-priced goods.

So if you think that the company themselves are helping to subsidize the products, whether that be clothing or whether that be gadgets on T-Moo, that's where you could see the similarity. And the idea of going from heavy losses to profitability, Bernstein estimates that in China, Pinduoduo went from negative 100 margin to positive 60% margin. And that's by drawing in the consumer with discounts. And then slowly over time, increasing the price a little bit, taking away those discounts once the user is locked in. So, Eunice, interesting question here is what is the presence in significant? By the way, I've heard that these companies are bigger than H&M already, bigger than Zara.

How big are they in China? They're not big. At all. Nobody knows. Nobody uses them. Nobody uses them. They don't use Timo. They don't use Shaiyan.

But Shaiyan does, both of them actually have good reputations among sellers. Huh. So in a way that sellers see it as an avenue to sell into the U.S. market. What is the deal with the Xinjiang region manufacturing issues that swirl and will get even louder as this IPO looms? What is the situation in terms of both companies' supply chain and how is it perceived in China? Well, it perceived in China, people don't really talk about it. But in terms of the way it could impact Sheein and the IPO, I think U.S. investors would want to look at the model for Xiuin versus a lot of other traditional manufacturers

and traditional players because they have what's known as this small batch model. Yes. Which is really interesting because they basically will say to factories, We have this batch of items that somebody in the U.S. once made, and then, you know, would you be interested in making it? And, you know, these factories will bid for it. They'll make it. And then they do it in these small batches. And so, of course, like the upside of that is that you could have real-time engagement with your own customers. There's not as much wastage. Lower inventory costs. I've heard that's a big reason why they can keep prices low.

Right. But the downside of that is. is that it is almost impossible to be able to police all of those factories. So one of the ways that traditional manufacturers have said that they have been able to really try to be compliant with the very rigorous U.S. retailers and standards in the U.S. is by knowing their factories, knowing who all the suppliers are, having maybe 25 of them that they're constantly looking at. Because what I've been told time and time again is that you can demand that these factories comply. And they will sign a pledge and do whatever it is that you need, but you can't enforce it. Interesting.

And so the more factories that you have and the more you're not familiar with your supply chain, the bigger the risk is that there is either something problematic or whatever else is problematic. And by the way, it's an excellent point only because the more this IPO becomes imminent, the more lawmakers, bipartisan lawmakers here in the United States are going to want assurances about the supply chain, about the fact that they have to not only know your customer, K-Y-C, but know your supply chain, K-Y-S-C, I think by the time it's done. How exactly can they do that? And how heavily scrutinized with the Chinese government even look at some of those operations because of its relationship with the U.S. market? Right. Yeah. And I think one, when you're

talking about the politics and the U.S. politicians, they've been talking a lot about this, about the way that Shian has been able to send these small batches and packages to the U.S. because it's under the U.S. Customs requirements of $800 or less per consignee. So part of that is that you don't actually have to file paperwork to U.S. customs. So even if you want to look at what is the company's corporate structure, who are these people, Who are the ones who are fine? Like, there's a lot of details in the customs information, and they don't have to do that.

So it's just that it just becomes, I just feel like there's not a whole lot of transparency, and that's something that U.S. investors, I guess, would want to know. And what we've learned from TikTok is it's popular enough with consumers that they will probably leave it alone at the end of the day because that's kind of what's happened with the other one as well. We'll leave it there for now. Thank you both, Eunice.

Thank you, our Eunice, You and Dear Jibosa, we appreciate it as well. Coming up, Disney holding its town hall. The stock is up 8% this year, despite ongoing proxy fights and uncertainty around the future of TV. We'll lay out what's on the docket for shareholders next with the shares down 2% today. Don't go anywhere. Welcome back. Disney holding a town hall with employees this afternoon. Why? Let's bring in Julia Borsden for details on what we've heard coming out of that meeting.

Julia? Well, Kelly, exactly one year after Bob Eiger held a town hall about his return to Disney. As CEO, he took the stage today. and the stock moved lower because he reportedly played down the sale of Disney's linear assets. He said no decisions have been made. But in Iger's comments, he was very much focused on the future of Disney and its brands, saying, quote, I feel that we've just emerged from a period of a lot of fixing to one of building again. And I can tell you, building is a lot more fun than fixing.

Now, the first half of this hour-long town hall was ABC anchor David Muir, interviewing Iger Solo. He was then joined on stage for the second half by Disney's entertainment chiefs Dana Walden and Alan Bergman, ESPN head, Jimmy Patero, and Disney's Parks Chief Josh Tomorrow. They started off with ESPN and the focus on building it into a digital sports platform. Pataro and Iger talked about potential strategic partnerships for ESPN, including leagues or tech companies, though they said they could go it alone. Dana Walden and Iger talked about focusing, talked about focusing on problems. for Disney's streaming business and her excitement about integrating Hulu in. Eiger talked about

the importance of improving the quality of the film studios, films certainly under scrutiny after several disappointments, and then finally the parks business, which Iger doubled down on with a $60 billion investment over the next 10 years. Now, Nelson Peltz's potential activist move did not come up in this town hall, which several people described to me as very raw, Ra. Iger talked a lot about his optimism and also his faith in confidence in Disney's family of brands. Kelly? But that's interesting what he kind of downplayed about the TV channels themselves. I wonder why. Well, here's the thing, Kelly, you have to remember that in Iger's interview with me after Disney's earnings, he clarified things back in his interview with David Faber in July. He said everything's on the table. We're looking at potentially selling our linear networks.

And then in his interview with me earlier in November, he said, look, in reviewing these linear assets, we're seeing a lot more value and opportunity in keeping them than maybe we originally realized. So it sounds like what he said in this town hall sort of echoes a lot of what he said in his interview with us just a couple of weeks ago. And I think what he's trying to say here is just because they were considering everything, he didn't expect everyone to write articles and follow on those comments and saying everything's for sale, but rather that they're just trying to be really thoughtful about how they manage these assets. I mean, we had bidders. You know, we heard about Byron Allen and a couple of names who said, yeah, we'll take them. All right, we'll leave it there, Julia.

Thank you for that update. And again, that's why Disney shares are moving lower, our Julia Borsdon. All right, coming up on the show, we'll break out some names that outperform the market in November. and are exceeding the average analyst price targets overall. That's in today's three-stock lunch. We're back in two minutes. Welcome back. Time for today's three-stock lunch,

and we have three stocks selected from our CNBC.com stock screener, which looked for names that have outperformed in November and have now exceeded the average analyst price target. Could they be set for a pullback or not? Joining us with our trades, Victoria Green is chief investment officer with G-squared private wealth. She's also a CNBC contributor. I like the setup here, so I'm curious to hear your takes. Victoria. We'll start with Chipotle, which has actually put up a nice little 13% rally this month.

Would you stick with it and do the analysts need to catch up? Absolutely. Stick with the power of the burrito. They're just executing so well. They're one of the only quick service that are increasing comps, increasing traffic, and they're also growing their footprint. They're expected to grow by about 285 to 315 stores next year. So they continue to expand and they're continuing to protect margin by increasing prices. But it's also how they engage their consumers. They get 36% of their revenue from digital sales now. So you've got the Tipote Lane and you've got drive-thew now. You can order on digital. You can go in the store and have it to eat or to go or you can get it delivered. They just made it so easy to get a tasty

burrito. Now they need a breakfast burrito. I would love that. All right. Up next year, Victoria, it's Netflix. So shares up about 16% this month. How would you trade Netflix? This has been obviously a hot stock over at least medium term. Look, Netflix is still a buy for me. even at these levels because they are growing their subscriber base so well. They well outpaced expectations in Q3, added almost 9 million new subscribers. They said in their remarks that they expect this same in Q4, and they just increased prices. So more paying subscribers, higher prices plus the ad revenue and their content, even with all the strikes and everything that else, their content continues to be great because we're all watching this old stuff like suits was streamed over a billion hours globally.

And that's not anything new. So I think Netflix has just managed this very, very well. Their password crackdown has been a light touch so they can continue to crack down, drive more and more people into paid subscriptions versus free loading. And it's just a great strategy to grow revenues. And so far, you're sticking with the momentum here that November is displaying. Does that extend to Clorox, which is a little different story, but it has been outperforming. It's actually up 22% this month.

I know. I can't. I'm sorry. If you talked to me about this, October 31st, it was a steal, right? Around 115, it's rallied so much off those lows. almost 25, 26 percent. And they're talking about the fact that the cybersecurity is still affecting them. They're still working on building up inventory. Sales is expected to fall in 2024. And so for me, I look at the stock and say it's a trading kind of near where it was pre-cyber

attack, not quite 150, but in the mid-140s. I don't think it's worth that with declining sales this year. And there's no guarantee that they're going to get their shelf space back and there's not going to be a little bit of fits and starts. As their CEO pointed out, it may not be a linear recovery. not guaranteed they're going to build back up those sales they lost during the cyber attack. So not at this point. I think if you owned it, it might be a great time to take some profits because now you own a more expensive company 32 times with expected earnings falling.

All right. Doubling down. I love it. Victoria, thank you very much. We appreciate your time today. Victoria Green. All right, he's been a huge success in the world of investing. But David Tepper is finding out sports is a full contact business. We've got more on that story coming up. Welcome back, everybody. Eight minutes left in the show, but we have some surprises for you. So stay tuned as we get through several more stories we need to talk about today. Starting with Amazon touting their, they always tout their record-breaking Cyber Monday. And it should be record-breaking every year or else your sales are declining. Anyway, the larger interesting thing here is that Cyber Monday Dom surpassed Black Friday in sales this year. According to Adobe shopper spent $12.4 billion. That's a 10% increase. This is huge only because what it surprised me about was the fact that even with inflation, because these retail numbers are nominal, right?

Because they charge more for goods. So those goods should go up in value and that people spend more. Is that the American consumer apparently still looks like it has the propensity to spend or and or the balance sheet to do so? I think you're right. I think people are discount-driven and anecdotally heard plenty of people excited to order their air friar or whatever and get a deal. Interesting for me, though, I did Black Friday shopping. I did not do Cyber Monday shopping, but I will be saving some dry powder for the week before Christmas

to see if there's any last-minute stuff that comes to work. I will be starting then, so, yeah, I'll join you. All right, well, Britain's national grid will pay some households to use less electricity on Wednesday nights. This after forecast showed they expected supply margins to be tighter than normal on Wednesday evening. However, they reiterated it does not mean electricity. supplies are at risk. This seems like a very, I don't know, panicky is not the right word, but it seems like a very extreme measure to ask a country to ration electricity. So it applies to things like using your dishwasher appliances such like that. Listen, I get if the grid is generally

becoming more fragile in some of these countries because of the intermittency issue and renewables and all the rest of it, you're not going to be left with a choice. It's a preview of what more is to come. I think our household tries to be conscious of some of those things. We run the dishwasher, say overnight during non-peak use hours, things like that. But it's be really different, I think, if I was asked to just not use power for a certain time of it. They said people are going to get a rebate on their electricity bills. Okay, I can see the argument of that. Maybe some households that's a really powerful incentive can adjust.

But otherwise, it is a form of rationing. And that's where we are. Mark Cuban. Mark Cuban plans to leave Shark Tank Dom. This is an end of an era. 15 years as a regular on the program. He says he wants to spend a couple of summers with his kids before they go off on their own. I can totally get that, by the way.

My kids are only six and three, and I feel like they're growing up way too quickly. I'd want to spend more time with them. Would you be a judge on Shark Tank? You'd be perfect. I think I would like to do it as a guest gig, but I don't think I could do it for as long as these guys have done it for. Fifteen years is a long time to do anything. All right, and then we're going to end with billionaire investor and Carolina Panthers owner, David Tepper, firing his team's head coach, Frank Reich, following a one-and-10 start. It's the third time Tepper has fired a coach in the middle of a season.

since buying the team for an NFL record of $2.2 billion back in 2018. This morning, though, TEPA holding a news conference to address the situation. All those decisions, you know, whether it was a head coach, whether it was Bryce, I don't really vote on those decisions until the last piece. Okay, so those decisions are made by, you know, in the case of the football people. Now, look, everything that's right and everything that's right, wrong care, ultimately is my fault. Okay, I have the final say. All right, here with more on TEPPER's tenure and what's next is Peter King, an NFL

columnist with NBC Sports. Now, Peter, according to what you've heard, is Teper that quote unquote meddlesome owner that some in media are portraying him out to be? Well, when you've had, he just put his sixth head coach in the chair in the last 48 months. Now, I never thought that I would see an owner in the NFL who could out Steinbrenner, Steinbrenner, but David Tepper has done it. You know, he's fired three coaches in mid-season in the last 48 months. And, you know, what's amazing about Tepper grew up in Pittsburgh, or he's from Pittsburgh, he owned 5% of the Steelers for nine years before he bought the Panthers.

The Steelers have had three coaches in the last 54 years. That is what football is about. Get a good coach, be stable, and go through the hard times and withstand the hard times. And David Tep clearly doesn't understand that. I don't know that much about sports, but didn't Steinbrenner do pretty well with the Yankees all those years? Of course. That's why, you know, with Steinbrenner, at least he won championships. The only thing that David Tepper has won right now, really, is the first pick in the draft. And what good is that?

He's already traded it off. So he can't get, you know, a lot of help for his organization. Peter, David Tepper has been quoted as saying that he does want to find that next head coach. And he wants it to be someone who could be there for 30 or 40 years. He wants him, he said jokingly, I'm assuming, that he wanted to have him, you know, speak of the eulogel. at his, you know, at his funeral at one point. So what exactly does he have to do to find that coach then that could be there for decades? Well, first of all, that is a ridiculous statement because every owner wants his coach to last 20 years.

But you have to have a little bit of patience so that that coach can survive the first few years and bumps in the road. What he has to do to get that coach who's going to last. that long, to me right now is get lucky because what coach in his right mind is going to want to work for David Teper. Any other job right now, I don't care where it is, any other job is more desirable than the Carolina Panthers. Peter, how would you put his, he's not the only person who's moved from, let's say, finance or Wall Street into sports ownership. It's a huge and growing trend. How would you say the performance has been overall? Well, Daniel Snyder was the worst, and now he's gone. But David Tepper is trying to get in lockstep with Dan Snyder.

And it's, it's, you know, really, I feel for the people of Charlotte and the Carolinas, they were so, they were so, they wanted to change this team, to fix this team. And what they've gotten really is a clown show. Peter, one of the interesting, you brought up Dan Snyder. That's obviously the opposite end of the spectrum that you say want to be. Some would say that an owner general manager like Jerry Jones has been relatively successful during his time owning an NFL franchise. What exactly does David Tepper need to learn from somebody like Jerry Jones to move perhaps more in that direction as opposed to going the Dan Snyder route? You have to get a coach who you have very much confidence in, and then you've got to, withstand bad times. Jimmy Johnson was one in 15 in his first year with Jerry Jones,

but Jones hung in there. He eventually fired him too soon, but you have to give people time to fail. And David Tepper just has not done that. All right. Peter King with NBC Sports, Football Morning in America, columnist. Thank you very much. We appreciate it. And one thing I know is no one wants to go take over a football team and have to deal with this. So it'll be interesting to see what his next is going to be a kind of Harvard business case study. Yes. All right thanks for watching power lunch. Closing bell starts right now.