Stock market news today: Stocks rise as focus turns to Fed rate cuts: November 20, 2023

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Wall Street stocks gathered momentum in afternoon trading Monday, after notching their third straight week of wins as hopes for a retreat in US interest-rate hikes persisted.

The S&P 500 (^GSPC) rose 0.4%, while the Dow Jones Industrial Average (^DJI) climbed 0.3% or about 110 points. The tech-heavy Nasdaq Composite (^IXIC) gained 0.7% during the first day of the holiday-shortened week.

Stocks have stayed aloft as signs of cooler inflation encouraged the market to believe the Federal Reserve is finally done with raising rates. Now the focus is on when a rate cut could come, with traders pricing in a 30% chance of that happening as soon as March.

Tuesday’s release of minutes from the Fed’s last meeting could provide fodder for that debate. But with little on the economic docket and the Thanksgiving closure on Thursday ahead, trading could stay muted.

Eyes will be on Nvidia’s financial results, also due Tuesday, after the chipmaker’s last earnings report sent stocks broadly roaring higher as the AI hype cycle kicked in.

The AI effect was still in play Monday, as Microsoft shares rose more than 1% in afternoon trading after the OpenAI backer hired Sam Altman to lead a new AI research team. Weekend efforts to reinstate Altman as ChatGPT maker’s CEO after his surprise ouster came to nothing, and the company’s board named former Twitch chief Emmett Shear to replace him.

In commodities, oil prices rose amid reports that Saudi Arabia and its allies could announce a further cut in production when the group of oil producers known as OPEC+ meets at the weekend. Also seen as lifting prices was a slide in the dollar, which cuts costs for holders of other currencies. West Texas Intermediate crude (CL=F) and Brent crude (BZ=F) both advanced more than 2.5%.

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♪ >>> IT’S 9:00 A.M. HERE IN NEW YORK CITY. THIS IS “YAHOO FINANCE LIVE.” HERE’S WHAT WE’RE WATCHING THIS MORNING. >>> AFTER HIS BANKRUPT OUSTING FROM OpenAI, FORMER CEO SAM ALTMAN IS HEADING TO MICROSOFT, JOINED BY FOUND ER BROCKMAN. >>> WEAKER THAT HE EXPENSE —

THE LATEST FED MINUTES HIT TOMORROW, TUESDAY. >>> STOCK FUTURES AMID OF A SHORTENED HOLIDAY WEEK. THEY ARE OFTEN SEEN AS A KEY BAROMETER. JPMORGAN OFFERING A BLEAK EARNINGS OUTLOOK. >>> BIG CHANGE IN THE WORLD OF A.I., AS MICROSOFT’S CEO IN A DEADA ANNOUNCING THAT SAM ALTMAN

AND GREGBROCKMAN WILL HEAD THE NEW INTELLIGENCE TEAM. ALTMAN WAS REMOVED FROM HIS HOLE BY THE BOARD, SAYING HE HAD NOT BEEN, QUOTE, CONSISTENTLY CANDID TH’VE EN PRING BILLIONS INTO OpenAI WITHIN THE LAST YEAR, SO, SO MUCH SO BREAK DOWN HERE FROM THE OUTPOURING OF SUPPORT.

SETTING A NEW PACE FOR — WE’VE LEARNED HOW TO GIVE UP FORRERS SPACE WITHIN MICROSOFT OF COURSE, MICROSOFTY START OF 2023, ONE OF THE MAJOR COMPANIES, THE MAJOR COMPANY IN TERMS OF BLUE CHIP TECH STOCKS THAT AT LEAST ANNOUNCED THEIR

POSITION TO POUR BILLIONS IN OpenAI, IN AN EFFORT TO ADVANCE SYSTEMS, AS WELL AS BETTER PLAY FOR THE SEARCH ENGINE, PLUS AS THIS BIG POWERHOUSE THEY HOPE TO ULTIMATELY PRODUCE. EXACTLY, IN TERMS OF NUMBERS AROUND THIS, AND EXACTLY THE IMPORTANCE OF THIS TO CROST.

MICROSOFT THAT IS A 4% STAKE IN OpenAI, SO LOTS OF QUESTIONS ABOUT WHAT THIS MEANS IN TERMS OF THE FUTURE WHERE ELSESHIP, BUT THE FACT THAT SAM ALTMAN WILL LEAD IT, AT LEAST FROM THE STREET’S PERSPECTIVE, VIEWED AS A WIN. THE STOCK HAD INITIALLY POPPED

ABOUT 2% ON THE HEELS OF THIS. WE ALSO DID SEE PRESSURE IN GOOGLE, A RIVAL WITHIN THE A.I. SPACE IN TERMS OF WHAT THIS COULD MEAN FOR THE BROAD ARE NDSCE. WHEN IT COMES TO OpenAI, A LOT OF QUESTIONS ABOUT THE FEATURE

OF THAT COMPANY, WHAT IT LOOKS LIKE UNDER A NEW LEADER. THERE’S ALSO A NUMBER OF REPORTS COMING OUT THAT MORE THAN A HANDFUL OF EMPLOYEES WILL BE FOLLOWING SAM ALTMAN TO MICROSOFT. THANGD CHANGE THE DYNAMIC WIN OpenAI. SO A LOT OF QUESTIONS ABOUT

INNOVATION THERE, EXACTLY WHAT THAT WILL LOOK LIKE, BUT THE FOCUS MORE BROLY SPEAKING FOR INVESTORS IS MICROSOFT, THE ABILITY THERE TO COURT SAM ALTMAN IN AS MUCH AS A MARINE CAN BE VIEWED AS A HUGE WIN. >>> AND EVERCORE ISI ON THIS,S

ON WHAT THE STREET HAS BEEN SAYING. THINK WE ALSO HAVE THAT QUOTE — WHILE IT REMAINS TO BE SEEN HOW MUCH BRAIN DRAIN WILL BE AT OpenAI, WE THINK THE FUNDAMENTAL RISK TO MICROSOFT LARGELY CONTAINED WITH ALAN AND TEAM ON BOARD. THIS IS ALSO CRITICAL, IS JUST

THE BOARD STRUCTURE AND HOW MUCH SCRUTINY THAT HAS TAKEN A OVER AT LEAST OpenAI, WHERE THEY HAVE AT LEAST FOUR BOARD ATS,O THAT’S INTERESTING TO GET SOME OF THE THAT WIL FROM WALL STREET AND HOW OpenAI CONTINUE TO SAY OPERATE AT THE BOARD LEVEL, WHICH THAT DECISIONMAKING

CASCADE DOWN. >>> LET’S TALK ABOUT WHAT EXACTLY THIS MEANS FOR MICROSOF. THIS IS SENDING THE STOCK TO THE UP SIDE HERE. THE MOVE WE SAW EARLIER, ABOUT $50 BILLION TO THE TECH GIANTS’S MARKET CAP, NOW A BIT OF A MORE MUTED REACTION.

FOR MORE ON THIS, WE WANT TO BRINGS IF RBS SOFTWARE ANALYST R RISHI, HOW BIG OF A WIN IS THIS. THIS IS A HUGE COUP TO MICROSOFT. I THINK IT’S — SOME OF THE A.I. HALO AROUND MICROSOFT THAT’S ENJOYINGIT,OU KNOW, START TO DISSIPATE, CUSTOMERS GET WORRIED.

I THINK BY BRINGING IN SAM AND GREG, RIGHT? SAM IS THE ULTIMATE VISIONARY WHEN IT COMES TO A.I., IT’S REALLY THE BE-CAS. >> I’M SURE WE’RE TRYING TO FIGURE OUT WHAT DOES THIS MEAN, THEY WERE SET TO SPEND OR EARMARKING TO SPEND OVER SEVERAL

YEARS TO FURTHER THIS INVESTMENT IN GENERATIVE A.I. HOW MUCH OF THAT DOES THEY PERHAPS GET THE OPPORTUNITY TO PULL BACK. REALLY IT HADN’T BEEN DISPERSED IN FULL, AND MAYBE NOT GETTING IN PACE WITH HOW MUCH INVESTORS EXPECTED. >> FROM MY PERSPECTIVE, I THINK

MICROSOFT IS IN A SITUATION WHERE THEY HAVE MULTIPLE EFFORTS. I THINK THEY WILL CONTINUE TO USE ChatGPT, AND NOTHING WILL CHANGE WILL. HOWEVER, WILL THEY PUT NET NEW MONEY TO WORK IN OpenAI? THAT REMAINS TO BESEEN. THEY HAVE ALREADY BEEN WORKING ON THEIR OWN A.I. TECHNOLOGY.

THE PACE AT WHICH MICROSOFT CONTINUE TO SAY DEVELOP THEIR OWN TECH WHICH WOULD BE COMPETITIVE, I THINK THAT WILL ACCELERATE. IT’S KIND OF A MICROSOFT WINS, NO MATTER WHAT HAPPENS TYPE OF SCENARIO. >> RISHI, HOW HE WAS ABILITY TO

GET ALTMAN ON BOARD IN A TIMELY LEERSH OF SATYA, AND HOW THE THIS COULD SET UP MICROSOFT FOR SEVERAL YEARS. >> AS MUCH AS WE ADMIRE SATYA, WE HAVE TO ADMIRE HIM EVEN MORE NOW. HOW HE WAS ABLE TO PULL THIS OFF, ION’THINKNY OF US

KNOW. HE AND SAM OBVIOUSLY HAD BUILT OF A CLOSE RELATIONSHIP ABSOLUTELY OVER THE PAST YEAR. I THINK WHAT A LOT OF US WERE THINKING IS SAM WAS GOING TO START OFF A NEW VENTE, CROSOFT WOULD INVEST IN THAT AND IT WOULD TAKE YEARS TO

RECOVER, AND IN ONE QUICK MOVE, MICROSOFT IS PROBABLY AHEAD VERSUS WHERE THEY WER THREE DAYS AGO. NOW THEY’RE IN MORE DIRECT CONTROL OF THEIR OWN DESTINY, RIGHT? NOW OF SAM AND GREG, AND IF YOU READ THE TWEET BETWEEN THE LINES, THERE ARE OTHER

COLLEAGUES JOINING THEM AS WELL. >> YEAH, I’VE GOT SOME REPORTS OUT, “WIRED” AND CARA SWISHER REPORTING THAT THERE’S OTHER OpenAI EMPLOYEES THAT HAVE SIGNED OF LETTER AND LOOKING PERHAPS FOR CHANGES FROM THE REMAIN BOARD MEMBERS OR ELSE THEY RESIGN HERE, AND PERHAPS

JOIN SAM ALTMAN AS YOU WERE MENTIONS MOMENTS AGO. NOW YOU POTENTIALLY MISS THE BRN TRUST THAT’S WITHIN OpenAIHE IF THERE’S A FLOODING OUT OF EMPLOYEES ELSEWHERE. >> I CAN TELL YOU HIRING TAL PRESIDENT IS VERY, VERY VERY DIFFERENT MICROSOFT IS NOW A DESTINATION EMPLOYER FOR

GENERATIVE A.I. OpenAI WAS THAT, I THINK THIS MAYBE INCREASES THE GAP BETWEEN MICROSOFT AND OTHERS TRYING TO COMPETE. THAT’S NOT TO SAY THEY COULD SUCCEED. , BUT RIGHT NOW, I THINK RIGHT W MICROSOFT CONTINUES TO HAVE THE LEAD. >> WHEN IT COMES TO THE — THE

ROLLED REPORTS ABOUT THE SPEED THAT IT WAS MOVING ONE OPENAI, NOW THAT HIS’S ON BOARD. HOW DOING POTENTIAL APPROACHING THIS. >>> HOWEVER, BECAUSE THIS IS NOW HALLS AND IT’S NOT ARMS LENGTH, I DO THINK THERE WILL BE MORE GUARD RAILS. >>> IT REMAIN TO SEE HOW THE

OpenAI VERSE ANTHROPIC DYNAMIC EVOLVES, BUT I THINK THEY’LL BUTT MORE GUARDRAILS UP. >> IT STILL COSTS MORE OpenAI TO BE RUN. THERE WERE SOM REPORTS, THAT THEY HAD ALSO LOOKED INTO THIS, AND REVEALING DOUBLING SINCE STARTING ChatGPT. IT’S WHATHEY EXPECTED AND KIND OF CALCULATED THE CHEAT.

IF IT DOES NOT FIND A WAY TO HAVE A BETTER REVENUE MODEL TO HAVE IT PASS THROUGH TO SOME MARGINS THERE AS WELL. >> THAS ALL PUBLICLY OUT THERE IN THE MARKET, BUT I ALSO THINK THAT OpenAI WAS KIND OF COASTING ON THE PURSE STRINGS OF MICROSOFT.

THEY WERE KIND OF ABLE TO INVEST AS AGGRESSIVELY AS THEY COULD WITHOUT MONETIZATION. LET’S BE HONEST, I PAY F ChatGPT OUT OF POCKET, $20 IS A VERY DEEP PARKING COMPARING TO THE VALUE I GET OUT OF IT. I THINK THEY NEED TO FIGURE OUT HOW TO CHARGE MORE.

OUT OF SAM AND GREG AND THE REST OF THE TEAM, THAT WOULD BE REALLY DIFFERENT. OpenAI WILL LOOK LIKE A VERY DIFFICULT COMPANY. THEY CAN FUND PROBABLY FOR DECADES WITH NO PROBLEM, ESPECIALLY GIVEN HOW PROFITABLE OFFICE, WINDOWS, EVEN AZURE ARE. >>> RISHI JALURIA, ALWAYS GREAT

TO HAVE YOUR PER PECK TIFF. THAN. >>> IT’S A BIG WEEK FOR NVIDIA THE CHIPMAKERS’ BLOCKBUSTER — THROUGH THE MARKET AS THEY BET BIG. SO FAR THIS AR, WE’RE LOOKING AT GAINS OF NEARLY 240% SINCE THE START — THERE’S A LOT RIDING ON THIS REPORT.

YOU CAN ALSO MAKE THE ARGUMENT FOR THE ENTIRE STOCK MARKET. WE MENONED THE PERFORMANCE WE SAW BACK IN MAY. IN AUGUST THEY ALSO REPORTED BLOWOUT NUMBERS, BUT SAW THE SHARES SURGE, AND WE SAW A PLUNGE IN AUGUST AND SEPTEMBER. WE SAW THAT RIPPLE THROUGH

THROUGHOUT THE BROADER MARKET HERE. THERE IS AN INTERESTING NOTE OUT TALKING ABOUT THEY’RE GOING TO LIKELY HAVE A MATERIAL MOVE, WHETHER OR NOT THAT FORTIFIED YEAR-END RALLY BETWEEN NOW AND . THAT REMAINS TO SAY SEEN. AND THEN ALSO JUST GETTING A

BETTER READ ON THE CHIP MARKET, WHERE THINGS STAND, ESPECIALLY ON THE HEELS OF THE RESTRICTIONSES TO CHINA, HOW BIG OF AN IMPACT THAT WOULD HAVE ON NVIDIA, BUT ALSO WHAT IT COULD MEAN FOR THE BROADER MARKET HERE EVERYTHING ELSE YOU CAN PERHAPS

JUST LISTENIN, FODDER FOR A SIDE CONVERSATION, BUT AT THE END OF THE DAY YOU THINK ABOUT WHERE THEY’RE GUIDING, THAT’S WHAT INVESTORS WILL BE LOOKING AT, WHETHER OR NOT THE BIGGEST WAVE FOR THE DEMAND CYCLE FOR SOME OF THE A.I. CHIPS, WHETHER

THAT IS BEHIND US OR WHEER THAT IS NORMALIZATION AND STEADYING THAT WE’RE SEEING, AND ADDITIONALLY, FOR CHINA, WHEN WE THINK ABOUT THE GPU ORDERS FROM CHINA AND HOW SOME OF THAT FROM THE STREET’S PERSPECTIVE HAS BEEN FRONT LOADED, ANY SLOWDOWN COULD ALSO IMPACT THE TRAJECTORY

FOR THE PRICE ACTION WE SEE IN SHARES AS WELL. THAT’S WHERE INVESTORS WILL START TO PRICE IN EXACTLY WHERE NVIDIA STILL SEES SOME OF THE INTERNATIONAL DEMAND COMING FROM, ESPECIALLY BECAUSE HERE AT HOME THERE HAVE BEEN SUCH RESTRICTIVE CURVES PUT IN PLACE.

>>> ALSO, WE’RE WATCHING SHARES OF ZIP RECRUITER, WITH AN OVERATE RATING, SAYING ITS BET ON A.I. GIVES A COMPETITIVE ADVANTAGE. BRIAN FITS ENGINEERED IS WRITING A FURTHER SHIFT BOOSTS COMPANIES LIKE ZIP — ZIP RECRUITERS. IT’S AN OVERWEIGHT RATING THERE, A TON TO GET TO A NEW TRACK ON

ZIP CRUIR. YOU’RE TAKING A LOOK AT YEAR TO DATE — WHICH JUST SPELLS OUT HOW KIND OF VOLATILE THIS STOCK HAS BEEN, EVEN WITH SOME OF THE THAT 52 WEEK IN PLACE HERE THIS MORNING. >> WE CERTAINLY HAVE ST SEE A SLOWDOWN STARTING TO TAKE

SHAPE, THOUGH STILL BY MANY METRICS STILL A RESILIENT LABOR MARKET. THE FACT THAT COMPANIES ARE HIRING, BUT NOT AT THE RATE THEY HAD BEEN OVER THE LAST SEVERAL YEARS, THAT WOULD HAVE ABIMPACT HERE, SO MORE CAUTIOUS OUTLOOK, DESPITE ALL OF THAT, THOUGH,

STILL SEAL SOME UPWARD POTENTIALLY. THEY THINK THINK THAT DESPITE ALL OF THAT, SOME OF THEIR INVESTING WILL BE NUR IN ORDER TO GIVE THEM AN EDGE. >>> LET’S TURN OR FOCUS TO OVERSEAS, WHERE BARCLAYS IS EXPECTING ANOTHER RECORD YEAR OF PROFIT IN JAPAN.

THE BENCH MAC TEN-YEAR JAPANESE BOND DRIVING TO A TEN-AR HH. SIGNALING MORE OPPORTUNITIES AHEAD. WHEN IT KEM TO EXACTLY WHAT BARCLAYS IS EXPECTING, ANOTHER YEAR OF PROFIT, COULD REACH AN ALL-TIME HIGH, IF THERE’S N MATERIAL CHANGE IN TERMS OF THE

SETUP AND WHAT THIS MEANS GOING FORWARD, FINALLY COMING TO THE CENTER OF THE RADAR. THEY HAD REALLY SEEN SOME INVESTMENT OPPORTUNITY OVERSEAS. AND SEEING THAT MOVEMENT CONTINUING INTO THE NEW YEAR. >> NO DOUBT A MOVE THAT WARREN BUFFETT IS HAPPEN TO SEE. THIS REALLY MAKE THE THESIS

COMES TO FRUITIONERE. BUT AT THE SAME TIME WHEN YOU THINK ABOUT WHAT ONE CHIEF EXECUTIVE IS SAYING, SAYING THAT PROFIT AFTER TAX COULD REACH AN ALL-TIME HIGH. HE SAID THIS IN AN INTERVIEW, JAPAN HAS FINALLY COME TO THE CENTER OF THE RADAR, FOR THE

FIRST TIME IN A WHILE HERE. WHAT WE ALSO CONTINUE TO NOTE HERE, THE BOJ, THE BANK OF JAPAN, TAKING STEPS TO ELIMINATE THE DEBT MARKET, AND PUT MORE ATTENTION INTO BUSINESS AND MORE COMPETITION FROM FINANCIAL FIRMS. THAT COULD IMPACT HIRING AS WELL, IF HE SEE MORE VOLUME

COMING THEIR WAY. THERE’S BEEN 30-YEAR HIGHS. THE SURGE WAS LET BY STRONG EARNING FROM TOKYO MARINE HOLDINGS AND NEWS THAT PANASONIC IS CONSIDERING LISTING ITS AUTO BUSINESS. HERE WITH MORE ON THE MOVES, WE HAVE OUR VERY OWN JARED BLIKRE. >> HEY, BRAD. THANK YOU.

LET’S LOOK AT WHAT’S BEEN HAPPENING INJAPAN. THIS IS OUR WORLD VIEW HERE. TOKYO WILL CLOSE DOWN 0.6%, BUT THAT WAS JUST AFTER IT TOUCHED A 30-PLUS YEAR HIGH. A LOT OF PEOPLE ARE TOO YOUNG TO REMEMBER THERE WAS A HUGE JAPAN-IFICATION MEME GOING AROUND THE WORLD WHEN THEY

BOUGHT OUR PEBBLE BEACH OVER IN CALIFORNIA, BUT WHEN IF YOU TAKE A LOOK AT THIS, THIS A 30-YEAR CONSOLIDATION. UP ALMOST 28% THIS YEAR. THIS REALLY HITS HOME THE INTEREST RATE DIFFERENTIALS. YOU WERE SHOWING A CHART OF A JAPANESE TEN-YEAR. MEANWHILE, WE ARE AT 4.5%, SO

THAT EXPLAINS THE DIFFERENTIALS, EXPLAINS A LOT OF WHAT THE MONEY U.S. TO TAKE ADVANTAGE OF HIGH YIELDS. NOW THAT JAPAN YIELDS ARE RISING, THERE’S COMPETITION. I THINK IT’S INTERESTING TO LOOK AT SOME OF THESE NAMES. HITACHI, FOR INSTANCE, THIS WAS UNDER WATER FOR 20 YEARS, HAS

ONLY RECENTLY I BELIEVE,HIS YEAR CLIMBED BACK INTO THE GREEN. TAKE ANOTHER ISSUE HERE. MITSUI, THIS WAS IN A TIGHT RANGE FOR OVER A DECADE. JAPANESE STOCKS ARE NAMED BY NUMBERS INSTEAD OF LETTERS, BUT YOU’LL SEE MIZUI IF THIS, NEVER MADE IT BACK TO 20% OF THE

LOSSES. IT REMINDS ME OF CITIGROUP OR OTHERS. I’M GOING TO SHOW YOU A HEAT MAP OF THE JAPANESE CURRENCY VERSUS A BUNCH OF OTHER CURRENCY AROUND THE WORLD. ANYTHING IN GREEN MEANS THE JAPANESE YEN IS STRONGER. THEY HAVE A LOT OF TROUBLE WITH INFLATION, SO I THINK IT’S

NOTABLE THAT THE YEN HAS STRENGTHENED ONLY AGAINST THIS ONE CURRENCY, AND THEN TO THE DOWN SIDE, THE YEN HAS LOST GR GROUND. EVEN THE STALWART IN EUROPE THE SWISS FRANC DOWN 15%. A LOT OF THISOT THAT’S BEING STIRRED UP HAS TO DO WITH THE

INTEREST RATE DIFFERENTIALS, BUT THERE’S BEEN NO GRAND MEETING OF THE MINDS HERE WHERE INTEREST RATES HAVE BEEN ALLOWED TO FLOW FREELY. WHEN THAT HAPPENS, I THINK THAT WILL BE A RECKONING IN THE DEBT MARKET. >> AND THAT WOULD BE YOU IN JUST A BIT.

JARED BLIKRE, THANK YOU FOR BREAKING THAT DOWN FOR YOU. >>> JUST ABOUT SIX MINUTES TO THE OPENING BELL. WE’LL HAVE THAT ON THE OTHER SIDE OF THE BREAK. YOU’RE WATCHING YAHOO FINANCE. WOOL WE’LL BE RIGHT BACK. >>> STRATEGISTS ACROSS THE STREET AREDJUSNG TIR YEAR-END CALLS.

HERE WITH THE LATEST FROM DEUTSCHE BANK IS MADISON MILLS. MADDIE, WHAT HAVE YOU TAKEN AWAY FROM THIS TODAY? >> THERE’S A QUESTION ABOUT WHAT THIS MARKET A PRICING IN. IS IT A DECISION FROM THE MARKET — IS IT SEASONALITY I WANT TO PUT UP THIS QUOTE.

THEY SAYS THIS UNWINDING OF IMPACT IS WHAT WE’RE SEEING HERE RATHER THAN A PRICING IN OF ANY UP SIDE THEY LOOK AT THEY THREE PHASES. FIRST THEY LOOK AT A GARDEN VARIETY SLOWDOWN IN THE S&P 500, AND THEN A DIPLOMAT, AND THEN A THDIP DUE TO GEOPOLITICAL

RISKS. IF YOU LOOK AT THE TOP LINE NUMBER FOR THE S&P, WE JUST CORRECTED AND UNWOUND THE IMPACT OF THOSE DECLINERS ON THE S&P OVER THE PAST COUPLE MONTHS. DEUTSCHE BANK’S POINT, SINCE JUNE, BUT THE LAST THINGSS THESE STRATEGISTS SAY THE S&P IS UP 9% SINCE ITS BOTTOM.

THIS COULD BE THE BIGGEST NOVEMBER RALLY SINCE NOVEMBER OF 2020 WHEN PFIZER ANNOUNCED THE COVID VACCINE. >> I THINK THE BIG QUESTION IS HOW DEUTSCHE BANK, FOR EXAMPLE IS LOOKING AT THE RECENT GAINS WE HAVE SEEN IN A LOT OF TECH STOCKS.

THE NASDAQ COMING OFF ITS BEST WEEK SINCE JUNE, SO HOW DOE THIS PLAY? >> THEY LOOKED AT 63 SELLOFFS, WHERE THESE LEFT THE OVERALL MARKET AND SAY THE AVERAGE STOCK IS ONLY RECOUPLING ABOUT HALF OF THAT SELL-OFF, BUT I CAN’T LEAVE WITHOUT TALKING ABOUT THE OpenAI STORY.

MICROSOFT GETTING A START-UP HERE THAT WASN’T EVEN FOR SALE BY GET SAM ALTMAN. A LOT OF STRATEGISTS INCLUDING DEUTSCHE BANK, SAY THIS IS GOING TO BE CRITICAL TO WCH IN TERMS OF THE IMPACT ON YEAR-TO-DATE RETURNS WITH MICROSOFT HOLDING THE SECOND BIGGEST WEIGHTING ON THE S&P.

SO A HUGE ONE TO WATCH. I’M INTERESTED IN HEADING INTO NVIDIA. ARE WE GOING TO GET COMMENTARY ON MICROSOFT GETTING SAM A.M.MAN HERE AND SATYA NADELLA’S PLAN WILL BE HERE. >> SO HIM TO ACT TO QUICKLY, AND TO GET SOMEONEIKE SAM ALT MANNER INTO MICROSOFT, THAT WILL

GIVE THEM A BOOST FOR YEARS TO COME. >> I CONTINUE TO BE OBSESSED HOW THIS ULTIMATELY PUTS PRESSURE ON THE BOARD AT OpenAI TO CHANGE. THE STRUCTURE FOR THE COMPANY, WHICH A LOT OF PEOPLE MAY REMEMBER, BUT PERHAPS WORTH A REMINDER, THERE’S A BOARD OF

DIRECTORS THAT ESSENTIALLY CONTROL OpenAI TO PUBLIC CHARITY, THE NONPROFIT ARM OF THIS COMPANY, AND NOW THAT EVENTUALLY HAS A DOTTED LINE ALL THE WAY AROUND THE REST OF THIS HIERARCHY, EVENTUALLY GETS DOWN TO THE PROFIT COMPANY THAT IS OpenAI WHICH MICROSOFT IS A

MINORITY OWNER IN, BUT THERE’S A HOLDING COMPANY, EMPLOYEES AND OTHER INVESTORS, SO THERE’S AN ENTIRETRUCRALHIFT THAT WE MIGHT ALSO SEE AS A RESULT OF THIS, ESPECIALLY IF THEY ADD ON OR FEEL THE NEED TO ADD ON MORE DIRECTORS TO THAT BOARD AS WELL,

WHO EVENTUALLY KIND OF GIVE IT MORE OF A WHOLESOME VIEW. >> THAT’S SUCH HELPFUL CONTEXT, BRAD. >> HE’S GOT IT LITERALLY. WE’LL HAVE TO ANIMATE THAT OUT. TO THE CREDIT OF THE BOARD, THEY STUCK TO THEIR GUNS. THEY DIDN’T CHANGE THEIR MINDS ON SAM.

I CAN’T WAIT FOR THE NETFLIX DOCUMENTARY. >>> WE NEED TO GET TO THE OPENING BELL HERE ON WALL STREET. JUST ABOUT A MINUTE INTO THE TRADING DAY, WE’RE LOOKING AT SLIGHT GAINS HERE AS WE KICK OFF A SHORTENED HOLIDAY WEEK HOLDING ABOVE 4500, A CRITICAL LEVEL

HERE, AND THE NASDAQ LEADING THE CHARGE, AT LEAST TODAY UP ABOUT 0.3%, STOCKS COMING OFF ANOTHER SOLID WEEK OF GAINS. JUST UP OVER 2%, THE BEST WEEKLY PERFORMANCE WE HAVE SEEN SINCE JUNE. A BIG QUESTION WHETHER OR NOT THE MOMENTUM CONTINUES, AS WE

GET A NUMBER OF CRITICAL RESULTS OVER THE NEXT COUPLE DAYS. SPECIFICALLY NVIDIA WILL BE PORTG THE BELL, AND WHAT THAT THEN TELLS YOU ABOUT THE BROADER MOVES GOING FORWARD. IN TERMS OF THE SECTOR ACTION THIS MORNING, WE’RE SEEING SOME LEADERSHIP HERE FROM ENERGY

LEADING THE WAY, FINANCIALS, INDUSTRIALS, CONSUMER DISCRETIONARY AMONG THE OUTPERFORMERS. REAL ESTATE AND HEALTH CARE UNIT A BIT OF PRESSURE TODAY. >>> THERE’S BEEN THREE STRAIGHT WEEKS OF GAINS, WITH BIG TECH LEADING THE WAY. DOES THIS RALLY HAVE LEGS? DREW, GREAT TO SEE YOU.

WHAT DO YOU THINK IN TERMS OF THE MOMENTUM TO THE UP SIDE? WHAT DOES THAT LOOK LIKE? >> WE HAVE A 4600 TARGET FOR THE S&P FOR THE END OF THE YEAR, BUT ADMITTEDLY AFTER A SOFTER THAN EXPECTED CPI PRESENT, WE THINK WE HAVE A PRETTY GOOD UPSIDE SET

UP FOR THE END OF THE YEAR NOW. >> I CONTINUE TO THINK ABOUT A LOT OF PEOPLE GOING HOME, SITTING AROUND A TABLE, TKING SOME INVESTMENT STRATEGY YOUR TOP TAKEAWAY IN TERMS OF THE EQUITY MARKET AND STRATEGY THAT INVESTORS CAN EMPLOY. WHAT WOULD THAT BE?

>> TALK ABOUT EARNINGS RESILIENCE. ADMITTEDLY EVERYONE HAS BEEN TALKING ABOUT HOW BAD THE ECONOMY IS OR ABOUT TO BE, BUT WHEN WE LOOK AT THE FUNDAMENTALS, WE’ CONSTRUCTIVE LOOKING AHEAD. IT’S ALMOST THE BOY WHO CRIED WOLF WHEN IT CAN UM TO RECESSION.

AND ALL OF A SUDDEN WE ARE LOOKING AT THE S&P JUST CAME OUT OF AN EARNINGS GROWTH RECESSION. WE ACTUALLY THINK THERE’S MORE RESILIENCE AHEAD, AND PROBABLY A BROADENING OF MOST MARKET ACTION AND EARNINGS GROWTH. >> WHAT DO YOU THINK THAT LOOKS LIKE MORE SPECIFICALLY, THEN?

>> SO ADMITTEDLY WE’RE — WE ARE A LOT MORE BULLISH TN A LOT OF OUR VIEWERS HERE. WE EXPECT HIGH SINGLE-DIGIT GROWTH NEXT YEAR. IT’S POSSIBLY EVEN IF WE HAVE A RECE RECESSION. WHAT A LOT OF PEOPLE DON’T REALIZE IS THE STOCK MARKET IS NOT JUST THE U.S. ECONOMY.

ON TOP OF THAT, THERE’S OTHER DRIVERS. WE THINK THE BIGGEST UNDER-DISCUSSED TOPIC IS PRODUCTIVITY. THINK ABOUT AS COMPANIES LEARN HOSE TO USE THIS TECHNOLOGY, BOTH TECH COMPANIES AND NON-TEX COMPANIES, THIS WOULD HAVE AN IMPA ON EFFICIENCY AND THE BOTTOM LINE, EVEN IF VOLUME

GROWTH SLOWS NEXT YEAR. >> DOES THAT HAVE A KNOCK-ON EFFECT FOR IMPACT FOR A LOT OF THESE COMPANIES? >> YOU TALK TO A LOT OF COMPANIES RIGHT NOW, THEY DON’T FEEL LIKE THEY’RE AGGRESSIVELY OVERSTAFFED. SO, WHEN IT COMES TO STAFFING,

YOU CAN DO MORE WITH EVEN THE SAME AMOUNT OF PEOPLE OR FEWER PEOPLE. IT’S A GREAT WAY TO MANAGE COST PRECIOUS, BUT LOOK, YOU SEE THIS IN INDUSTRIES THAT ARE MORE BASIC, LIKE RESTAURANTS OR BASKET CONSUMERS GOODS, RETAIL, SO ON, HOW THEY GET MORE

EFFICIENCY BY MANAGING INVENTORIES BETTER, MAKING THEIR WORKERS MORE PRODUCTIVE, AND THEN GAINS ON THE TECH SIDE, EVEN IN THE MORE COMPLICATED MULTI-INDUSTRIALS, WHERE THEY CAN CHARGE HIGHER PRICES, BECAUSE THERE’S A TECH ELEMENT BUILT INTO THE PRODUCT, OR THEY CAN MANAGE MORE COMPLEX SUPPLY

CHANGES THAN IN THE PAST. >> YOU DID SAY SOMETHING I DO WANT TO PICK UP ON WHEN IT COMES TO THE ODDS OF A RECESSION. YOU SAID YOU STILL SEE HIGH SINGLE-DIGIT GROWTH NEXT YEAR, EVEN IF WE DO SEE A RECESSION. WHAT’S YOUR BASE CASE FOR THAT SLOWDOWN?

>> SO OUR CITI ECONOMISTS EXPECT QUARTER OVER QUARTER GROWTH OF ABOUT MINUS 2%, THAT’S THE HOUSE CALL, BUT THAT’S NOW HOW WE TALK ABOUT EARNINGS GROWTH HERE, WE ARE TALK ABOUT IT IN YEAR OVER YEAR TERMS. IF YOU FLIP THIS AROUND AND LOOK AT REAL GDP, THAT’S ACTUALLY

PLUS AM 1.5%, AND BARELY NEGATIVE IN Q3, SO A RECESSION IN ECONOMICS TERMS, WHEN YOU TRANSLATE THE MATH, ACTUALLY ISN’T EXPECTED TO BE VERY DEEP. OUR BASELINE AGAINST, OUR STATED FORECAST IS 245 FOR S&P 500 EPS IN 2024, BUT EVEN IF WE DO HAVE

THIS MILD RECESSION, EVEN IF WE GET OUR ECONOMICS BASE CASE, OR — IF IT COMES TRUE, WE STILL INKOU HE M SINGLE-DIGIT EARNINGS GROWTH, THAT I THINK A LOT OF OUR PEERS DON’T REALLY GIFT CORPORATES THAT EFFICIENCY ARGUMENT. THEY JUST AREN’T BAKING THAT IN RIGHT NOW.

>>> ALL RIGHT, DREW PETTIT, AT CITI, THANK YOU SO MUCH FOR YOUR TIME. >>> WELL, JEFFRIES RAISING SIX FLAGS, TO $32 A SHARE, SAYING THE MERGER, WILL INCREASE THE VA. NOW, THE MERGE ARE OF THE TWO THEME PARKS GIANTS IS EXPECTED TO CLOSE DURING THE FIRST HALF

OF NEXT YEAR. LOTS OF QUESTIONS ABOUT WHAT THE COMBINATION IS GOING TO MEAN FOR THIS BUSINESS GOING FORWARD. JEFFRIES MAKING THE CASE THAT THEY DO SEE THAT BEING THE CASE. AT LEAST IN THE NEAR TERM, THE QUESTION IS HOW STRONG THE ECONOMY IS GOING FORWARD INTO

2024, WHETHER OR NOT WE SEE A MATERIAL PULLBACK FROM CONSUMERS SPENDING, AND WHAT THAT HIT COULD LOOK LIKE, AT LEAST IN THE SHORT TERM. >> A FEW THINGS, THREE PRIMARILY THAT COME TO MINE, COST SYNERGIES. THIS HAS BEEN A HIGHL PROMOTIONAL PERIOD FOR SIX FLAGS.

EVEN WHEN WE THINK BACK TO THE MOST RECENT RECORD, THEY TALKED HOW MUCH-TO RAMP UP IN ORDER TO SELL NEXT YEAR’S SEASON PASSES, AND ULTIMATELY SEES MORE CUSTERS TAKE ON THAT PASS. THAT’S ONE. NUMBER TWO, INVESTMENT IN THE GUEST EXPERIENCE. THIS WOULD RELY ON HOW THEY’RE

LOOKING ACROSS EVERY SINGLE TOUCH POINT. LAST TIME I DID HOP , IT WAS PERHAPS TWO DECADES AGO, PERHAPS. AT THE END OF THE DAY, THE EXPANSION AND ACCELERATION OF THE EVENTS CALENDARS ARE SOMETHING THEY’RE INVESTING INTO, BUT THEY ALSO HAVE NO

CONTROL OVER ONE HUGE THING. UNUSUALLY DIFFICULT WEATHER. HOWEVER, AT THE SAME TIME, IT’S A QUESTION OF HOW MUCH IN A CONSUMER KIND OF DISCRETIONARY PULLBACK ENVIRONMENT, EVEN IF YOU ARE STILL GOING TO THE PARK, OW MUCH ARE YOU SPENDING WHILE IN THE PARK?

I DON’T KNOW IF I’M GOING TO BUY THREE AND FOUR DIFFERENT DOTS IF I GO BACK, BUT MAYBE ONE FOR MYSELF AND PERHAPS ONE FOR MY PARTNER. >>> THE UPGRADE TO BOEING, FROM HOLD TO BUY, AND UPPING TO $270, THE BANK SAYING THE AIRCRAFT DELIVERIES ARE ACCELERATING.

FREE CASH FLOW, AND A BOOST IN SHARES. THIS COMES AFTER A TOUGH YEAR FOR THE AIRPORT MANUFACTURER. HOWEVER, IN RECENT WEEKS. WE DO KNOW THIS COMPANY ACTUALLY HAD A REALLY GREAT DUBAI AIR SHOW, WITH ORDERS COMING IN FROM INTERNATIONAL PARTNERS. I THINK THAT SHOWED SOME

STRENGTH IN LARGE PLANE ORDERS. >> PUTTING SOME NUMBERS ON THAT DELIVERIES ’24 700, AND MORE, IT’S OBVIOUSLY JUST ALL AROUND THE DELIVER YES, SIR THE NUMBERS THERE, AND THE ACCELERATION, AT LEAST DEUTSCHE BANK SEES — YOU MENTIONED THERE IT’S BEEN A FO BOEING, EVEN SPECIFICALLY

THE LAST COUPLE MONTHS, WITH SOME OF THE SETBACKS, AND THE IMPACT THAT THAT HAS HAD, AT LEAST FOR THIS YEAR, BUT GOING BACK — GOING FORWARD, I SHOULD SAY, LOOKING AHEAD TO 2024, AT LEAST DEUTSCHE BANK SEES THINGS SHAPING UP, AND PRETTY QUICKLY

WHEN YOU TALK ABOUT THE FACT THEY SEE DELIVER YES, SIR GETTING TO 800 BY 2025, SO JUST ABOUT A YEAR AND A HALF FROM NOW. >>> WE HAVE ALL OF YOUR MARKET ACTION AHEAD LIVE FROM NEWORK TY HERE. WE’LL BE RIGHT BACK.

>>> IT’S A BIG WEEK FOR NVIDIA, SET TO RECORD RESULTS AFTER THE BELL TOMORROW. SHARES ARE UP NEARLY 240% SINCE THE START OF THE YEAR. THE BLOCKBUSTER REPORT IN MAY ALSO ADDED TO MATCHUP UPWARD MOMENT ACTUAL WE’RE SEEING PLAY OUT. WE WANT TO BRING IN REUBEN

LLOYD, ANALYST HERE. WHEN YOU TALK ABOUT THE FACT THAT NVIDIA IS BEST POTION, WHAT DO YOU SEE THE UPSIDE POTENTIAL GOING FORWARD? >> WELL, THANKS FOR HAVING ME. THE REST OF ’24, A BIT OF BEAT AND RAISE. WE SAW THAT, AS YOU POINTED OUT,

AND THEN AGAIN WITH THE JULY QUARTER WHEN THEY REPORTED IN AUGUST. WE HAVEN’T SEEN ANY SLOWDOWN TO SORT OF THE MOMENTUM THAT NVIDIA IS SEEING ON ORDERS FOR THEIR HIGH-END CHIP CALLED THE H-100, FOR THE LANGUAGE MODEL AND TRAINING NETWORKS. WE EXPECT THAT TO CONTINUE

THROUGH YEAR-END A INTO NEXT YEAR. THERE HAVE BEEN SOME SUPPLY CONSTRAINTS, AND BUT WE EXPECT THAT TO EASE. WE THINK WE HAVE SEVERAL QUARTERS AHEAD AT A MINIMUM. >> SO, ADDITIONALLY HERE, WHEN Y A.I. DEMAND, EVEN MORE SO INTERNATIONALLY, GIVEN SOME OF

THE CURBS IN PLACE, TO MAKE SURE THEY NAVIGATE AROUND SUCCESSFULLY? >> YEAH, THANKS, BRAD. THAT’S A FOCUS POINT ON THE CALL, SO INCREASED RESTRICTIONS, COMING DOWN TO EVEN SOME OF THE CHIPS AND ANALYSTS AND EXPECTORS DID NOT EXPECT. YOU KNOW, SINCE THEN THERE’S BEEN SOME CHATTER.

THAT ARE AGAIN UNDERNEATH THE THAT THE GOVERNMENT IS WORRIED ABOUT. WE’LL SEE HOW THAT PLAYS OUT. AT A CERTAIN POINT, I THINK THERE’S A CASE TO BE MADE FOR, HEY, WE SHOULDN’T THE COMPANY IS NOT EXPECTING ANY NEAR-IMPACT TO THEIR FINANCIALS. WE THINK THERE’S QUITE A BIT OF

DEMAND GLOBALLY, SO CERTAINLY IN THE USUAL, YOU FOLKS WERE TALKING ABOUT MICROSOFT, AND WE THINK THAT WILL CONTINUE TO BE A VERY BIG OPPORTUNITY GOING FORWARD. YOU KNOW, THERE’S A LOT GOING ON WITH A.I. AS YOU SAID, IT REMAINS, IN OUR VIEW, THE BEST WAY TO POSITION

THAT GROUP. >> MORE SPECIFICALLY, WHAT WE HAVE SEEN PLAY OUT, NOW THAT SAM ALTMAN IS ON BOARD HERE WITH MICROSOFT, THERE WERE REPORTS THAT HE WAS LOOKING TO RAISE FUNDING HERE. HOW DO YOU SEE THAT COMPETITION STACKING UP BETWEEN MICROSOFT AND NVIDIA?

>> MICROSOFT ANNOUNCED TWO OF THEIR OWN SEMITUCKEDERS, AND, YOU KNOW, I THINK THERE WILL BE A LOT OF THAT GOING FORWARD. SO I THINK YOU WILL SEE AN INCREASE IN COMPETITION. LAUNCHING AT THE END OF THIS YEAR AND INTO NEXT YEAR. THEY’RE LOOKING FOR AROUND $2

TRILLION NEXT YEAR, WE’RE ESTIMATING SOMEWHERE AROUND $60 BILLION FOR DATA CENTER REVENUE FOR NVIDIA NEXT YEAR. SO, YES, I THINK THERE WOULD BE COMPETITION POTENTIALLY GOING TO MICROSOFT AND LEADING THE CHARGE TO TRY TO COME UP WITH SOME LOWER-COSTS, WHAT HAVE YOU.

I THINK WE’LL SEE THAT HAPPEN, BUT I’M NOT EXPECTING THAT TO BE MEANINGFULLY NEGATIVIN TMS COMPETITION. I WOULD POINT OUT THAT GOOGLE IS ON THE FIFTH-GENERATION EPU, WHICH IS A CHIP THEY’VE BEEN WORKING ON, EVEN THERE, GOOGLE IS A VERY BIG CUSTOMER OF NVIDIA.

ILLUSTRATES I THINK, AGAIN IT’S MAET AT THIS POINT. FOR THE >> THERE AN ACQUISITION TARGET THAT IS PERHAPS SYNONYMOUS EVEN IF THEY HAD — THEIR AMBITIONS IN THE FUTURE? >> THAT’S A GREAT QUESON, BRAD. THEY ARE EMBEDDING SOFTWARE LAYERS IN THEIR MODEL A.I.,

WHICH IS CALLED TRUDA, AND ENTRENCHING THEMSELVES INTO THE A.I. OFFERINGS COMING, NOT JUST FOR MICROSOFT, BUT FOR ENTERPRISE CUSTOMERS. AND SO I THINK FROM A STWARE PERSPECTIVE, THAT’S THE NEXT AREA POTENTIALLY FOR NVIDIA TO EXPAND INTO. THEY HAVE AN OFFERING WHERE

THEY’RE SELLING CAPACITY, AND YET MOVING FORWARD, THEY CAN, IN OUR VIEW, STARRED TO REALLY RAMP UP REVENUE TO GET INTO — FURTHER INTO THE SOFTWARE SYSTEM. SO THAT’S — IT CERTAINLY WOULD MAKE SENSE FROM A LONGER PERSPECTIVE. REUBEN, THANKS FOR KICKING OFF THE TRADING WEEK WITH US.

YOU’VE GOT A BUSY WEEK AHEAD AND HOLIDAY AS WELL. >> HAPPY THANKSGIVING. THANKS. >>> ALL YOUR MARKET ACTION IS AHEAD. STAY TUNED. YOU’RE WATCHING YAHOO FINANCE. >>> THEY’REAYIN THAT STRIKES WOULD BE A MORE BEARISH TONE THAT SHRINKING PRICING POWER COULD END UP MORE FLATTISH.

>>> SCOTT SAYS THAT HE EXPECTS PROFITS TO HOLD UP. REESE LE BOOSTING TO 4600 AS WE CONTINUE TO WATCH THIS. >> VOTE, NOT EXACTLY SURPRISING WHEN WE KNOW HE AS BEEN BEARISH PLAY OUT OVER RECENT WEEKS NEAR THE END OF THE RISING 4% IN THE

THIRD QUARTER, AS COMPARED WITH THE MOST RECENT PROJECTS, SO CLEARLY AN OUTPERFORMANCE HERE, AS WE LOOK FOR WHAT IT MEANS FOR AND WE ARE JUST SPEAK WITH A MEMBER OF THE CITI’S TEAM LIKE YOU JUST SAID, THAT THEY STILL SEE THAT BEING THE CASE, EVEN

THOUGH WE COULD POTENTIALLY SEE A RECESSION. AND STILL THEY REASONS TO. >>> ALL RIGHT. GETTING BACK TO THE BIG STORY OF THE DAY, HUNDREDS OF OpenAI EMPLOYEES ARE REPORTEDLY THREATENINGO QUICK, THIS FOLLOWS THE OUSTER. MORE THAN 500 OF OpenAI, 700 EMPLOYEES ACCUSED OF BOARD OF

BROWNED MINING THE MISSION. >>> THEY WROTE, MOST OF THE STAFF ARE THREATENING TO LEAVE THE COMPANY, SAYING THAT MICROSOFT HAS ASSURED THEM THERE’S POSITIONS FOR ALL OF THEM. WHAT EXACTLY THAT LOOKS LIKE REMAINS TO BE SEEN. BUT CERTAINLY A WHIRLWIND AND

HERE WE ARE MOIPD MORNING, WITH THE NEWS HE IS GOING TO BE A MEMBER OF MICROSOFT’S TEAM RIGHT THERE, LEADING THE NEW A.I. TEAM STRATEGY WITHIN MICROSOFT. IF WE DO SEE MORE MEMBERS, A SIZABLE NUMBER, ESPECIALLY KEY EMPLOYEES THERE LVEHE FIRM AND GO TO MICROSOFT, OF COURSE,

A LOT OF QUESTIONS ABOUT THE FUTURE OF OpenAI, AND WHETHER OR NOT THIS IS A COMPANY THAT CAN HOLD ON IF THEY DO LOSE THOSE KEY EMPLOYEES. >> OPPENHEIMER SAYING THAT ALTMAN HAD A CRITICAL ROLE FOR — THIS IS WHERE THEY NOTE,

THE DISPUTE CAME IN WITH CHIEF SCIENTIST, BUT EXPLAINING THE DESIRE TO ADVANCE THE TECHNOLOGY CAREFULLY, KITCHEN EXISTENTIAL RISKS. ALTMAN AND NADELLA, DO THEY SHARE THOSE CONCERNS, OPPENHEIMER NOTES, BUT HAVE DIFFERENT APPROACHES, SO THE LARGEST QUESTION HERE, HOW MANY OF THOSE EMPLOYEES DID WHAT

THEY’RE LOOKING FOR A CHANGEOVER TYPE OF LEADERSHIP STRUCTURE, AT THE BOARD LEVEL, WHICH TRICKLES DOWN. THAT STILL REMAIN UP CLEAR, AND MR. ALTMAN IMMEDIATELY STARTS POACHING THAT TAL PRESIDENT AND PERHAPS WHAT BLANK CHECK HE’S BEEN GIVEN TO DO SO. >> SO OBVIOUSLY WE’LL CLOSELY

FOLLOW HERE. >>> KEEP IT HERE ON YAHOO FINANCE. WE HAVE ALL OF YOUR MARKET ACTION AHEAD. WE’LL BE RIGHT BACK. ♪ >>> THE FUTURE OF SUSTAINABLE BOATING IS RAPIDLY APPROACHING. ELECTRIFICATION IS TAKING CENTER STAGE. BUT E-FUELS ARE LOOKING FOR A PIECE OF THE PIE AS THE BOATING

INDUSTRY GOES GREEN. >>> ELECTRIFICATION AND SUSTAINABILITY ARE FINALLY UPENDING THE AUTO INDUSTRY AND CHANGING THE WAY WE MOVE. A GROUP OF COMPANIES FOCUSED ON A $19 BILLION BOATING MARKET SEE THEIR INDUSTRY AS NEXT. FROM SMALL POWER BOATS T MASSIVE LAND YACHTS, THE BOATING

INDUSTRY IS EXPECTED TO SWELL IN THE COMING YEARS THANKS TO GOVERNMENT SUBSIDIES AND MORE INTEREST. FROM BIG PLAYERS LIKE BRUINS WICK TO SMALLER FIRMS, THE HI-TEC INDUSTRY IS GOING THEY’RE BETTING ON THE BLUE WAVE WHICH EXPERTS SAY WILL GROW BY 4.4 BILLION, MORE THAN DOUBLING

SALES BY 2030. IMAGINE SMALL TO MEDIUM-SIZED BOATS PACKING BATTERY AND IS MOTORS THAT HAVE QUIET POWER TH ZERO EMISSIONS. AND THEN THERE’S E-FUELS. THEY CAN POWER ANYTHING FROM YOUR NEIGHBOR BOAT TO A TANKER SHIP. >>> AND THEN HYDROGEN POWER. IT’S CLEAN AND POWERFUL.

>> LET’S BREAK DOWN WHERE THINGS STAND RIGHT NOW. WE WANT TO BRING IN CITI LEISURE AND TRAVEL ANALYSTS. GREAT TO SEE BOTH OFOU. JEFF, LET ME START WITH YOU. LAYING OUT THE GROWTH PROSPECTS, WHAT EXACTLY WE COULD SEE THE GROWTH LOOK LIKE IN ELECTRIC BOAT INDUSTRY BETWEEN NOW AND 2030.

IN TERMS OF WHERE WE ARE IN THIS TRANSITION, WHAT DOES THAT LOOK LIKE? >> YEAH, SO I MN IT’ REALLY EXCITING TIME IN THE RECREATIONAL BOATING INDUSTRY RIGHT NOW. THERE’S A LOT GOING ON WITH TECHNOLOGY. WE’VE SEEN A REALLY HUGE IMPROVEMENT ACROSS ALL OF THE

BOATING SEGMENTS AND WE’RE — WE’VE JUST COMPLETED A REALLY INTERESTING REPORT TALKING ABOUT DECOR BONNIZATION. AND I THINK ONE OF THE ISSUES THAT WE FACE AS AN INDUSTRY IS PERCEPTION. RECREATIONAL BOATING CONTRIBUTES UNNECESSARILY TO GLOBAL CLIMATE CHANGE AND POLLUTION AND THE REST.

AS IT STANDS, WE ACCOUNT FOR ABOUT 0.7% OF TRANSPORTATION Co2 IN THE UNITED STATES AND WE ACCOUNT FOR ABOUT 0.4% OF TRANSPORTATION Co2 IN EUROPE. SMALL NUMBERS, BUT NONETHELESS, EVERYONE NEEDS TO DO THEIR PART TO REDUCE EMISSIO AND WE JUST REACHED OUT TO — WE JUST

COMPLETED A NEARLY A TWO-YEAR PROJECT WORKING WITH THE INTERNATIONAL COUNCIL OF MARINE INDUSTRY ASSOCIATIONS AND A VERY WELL-RESPECTED GLOBAL ENGIERIN . AND WE WANTED TO LOOK AT WHAT’S THE BEST WAY FOR OUR INDUSTRY TO DECARBONIZE MOVING FORWARD. IT’S REALLY A PORTFOLIO OF TECHNOLOGIES.

YOU MENTIONED A LITTLE ABOUT SUSTAINABLE MARINE FUELS, ELECTRIFICATION, ADVANCED — ALL OF THESE TECHNOLOGIES ARE GOING TO BE REQUIRED TO REALLY MINIMIZE Co2 FROM RECREATIONAL BOATING BECAUSE IT’S A DIFFERENT SCENARIO THAN WHAT YOU SEE HAPPENING IN THE AUTOMOTIVE INDUSTRY.

>> SO, JEFF, JUST TO FOLLOW UP ON THE REPORT YOU PUT OUT, LOOKING AT BEYOND RECREATIONAL, I KNOW YOU DON’T WORK WITH THE COMMERCIAL SIDE, DO YOU THINK STUFF LIKE HYDROGEN AND E-FUELS ARE GOOD FOR BIG INDUSTRIAL MASS POWER BOATS THAT ARE ON THE WATER?

>> ABSOLUTELY, I DO. BECAUSE OF THE ENERGY DENSITY ISSUE, BOTH REQUIRE A LOT OF ENERGY TO MOVE THROUGH THE WATER. IT’S A FACTOR OF ROUGHLY TEN COMPARED TO A CAR. SO TO PACK THAT KIND OF ENERGY DENSITY INTO BATTERIES CAN BE DIFFICULT FOR AOT OF THE

VESSELS. CERTAINLY ELECTRIFICATION PLAYS ITS ROLE, BUT SUSTAINABLE MARINE FUELS PLAYS A BIG ROLE FOR TWO REASONS. NUMBER ONE, WE TALK ABOUT — THERE’S ABOUT 12 MILLION REGISTERED POWER BOATS IN THE UNITED STATES TODAY THAT ARE GOING TO RELY O LIQUID FUELS FOR QUITE SOME TIME.

AND THE SECOND THING YOU TALK ABOUT IS ON THE COMMERCIAL SIDE, GOING ACROSS OCEANS WITH LARGE CARGO THAT REQUIRES AN ENORMOUS AMOUNT OF ENERGY. THOSE ARE TWO REASONS WHY WE’LL PLAY A HUGE ROLE IN OUR INDUSTRY MOVING FORWARD AS WELL.

>> LET’S TALK ABOUT WHAT THIS MEANS FOR INVESTORS. FOR THOSE WHO ARE INTERESTED AND MAY BE BETTING ON THIS MOVE HERE AS WE TALK ABOUT THE TRANSITION FOR ELECTRIC BOATS, WHAT COMPANIES SHOULD INVESTORS KEEP IN MIND THAT ARE LEADING THE CHARGE? >> SURE.

SO, YOU KNOW, ONE OF THE BIGGEST IF NOT THE BIGGEST BOAT MANUFACTURER IN THE WORLD, BRUNSWICK CORPORATION. FROM THE NAMES THAT WE LOOK AT, IT’S CERTAINLY AT THE FOREFRONT OF ELECTRIFICATION. D, Y KNO I THINK IT’S STILL IN ITS VERY EARLY STAGES

AT THIS POINT AND I THINK ALL OF THE MARINE COMPANIES, THE MARINE STOCKS ARE REALLY SORT OF STRUGGLING TO GET THROUGH THIS MACRO — WHATEVER THIS IS. HEADWIND, DOWNTURN. BUT AS WE LOOK FORWARD, FURTHER INTO THE FUTURE AS WE SIT HERE TODAY, THERE ARE A NUMBER OF LOW

VOLTAGE-POWER PROPULSION OPTIONS. THOSE ARE TYPICALLY GOING TO BE FOR SMALLER BOATS. I THINK AS WE LOOK OUT TO THE FUTURE, THERE’S AN OPPORTUNITY TO GET ELECTRIFICATION INTO SOME CH LARGER ENGINES, RIGHT? THE WHOLE CONCERN ABOUT BATTERY, ENERGY, DENSITY IS CERTAINLY AN ISSUE TODAY.

PAND SO A LOT OF TH ELECTRIFICATION, ELECTRIC OUTBOARD ENGINES ARE JUST EXTREMELY EXPENSIVE. WE’VEEEN SOME COOL SORT OF CONCEPT VEHICLE ALONG THOSE LINES, BUT FROM A CONSUMER PERSPECTIVE, WAY TOO EXPENSIVE TODAY, BUT THE HOPE IS OVER THE NEXT FIVE TO TEN YEARS, THEY’LL

TAKE UP A — A MUCH BIGGER CHUNK OF THE MAJORITY. >> JAMES,ITH E REACH OF A BUNCH OF DIFFERENT TYPES OF PUBLIC BOATING COMPANIES, BRUNSWICK, IS IT THEIR SIZE THAT GIVES THEM THE ADVANTAGE, THE STRATEGY WITH AUTONOMOUS THAT YOU LIKE THERE FOR THEM? >> FOR SURE.

THE SIZE HELPS THEM — I MEAN, THEY HAVE A REGULAR BUSINESS BETWEEN THEIR BOATS, ENGINE BUSINESS AND PARTS AND ACCESSORIES WHICH ARE THE CASH COWS. THAT ALLOWS YOU TO INVEST IN FUTURE TECHNOLOGIES AND ULTIMATELY FUTURE PROOFING THEIR BUSINESS. AND SO THAT’S WHERE YOU’RE GOING

TO SEE A LOT OF THESE INVESTMENTS DE I NEW TECHNOLOGIES AND CERTAINLY THIS ELECTRIFICATION STRATEGY. >> JEFF, QUICK FOLLOW ABOUT THE — YOU REPRESENT A NUMBER OF MANUFACTURERS IN THE SPACE, ESPECIALLY IN THE UNITED STATES. WHAT ARE THEY SAYING ABOUT GOING GREEN? DOHEY REAY WANT TO GO?

OR DO THEY SEE AN OPPORTUNITY THERE TO SORT OF HAVE PEOPLE KIND OF CONVERT THEIR BOATS OVER TO CLEANER POWER? >> NO, I MEAN, CERTAINLY EVERYONE IN THE INDUSTRY IS REALLY EXCITED ABOUT, YOU KNOW, THE TECHNOLOGIES THAT WE HAVE MOVING FORWARD.

I WANTED TO COME BACK TO A POINT THAT YOU MADEARLY ABO ELECTRIC PROPULSION. IT’S NOT ONLY THE PROPULSION SYSTEM THAT WE’RE TALKING ABOUT. IT’S — YOU’RE STARTING TO SEE LITHIUM ION BATTERY BANKS BE USED IN BOATS TO POWER WHAT’S CALLED THE HOTEL LOAD.

THE SAFETY SYSTEMS, MPS, AND LIGHTS AND THINGS LIKE THAT. AND YOU’RE REDUCING THE RELIANCE ON A GENERATOR AS WELL. IT’S NOT JUST THE PROPULSION. ONE POINT I WANT TO MAKE OUT THAT’S REALLY IMPORTANT AS WELL IS THAT WHEN YOU LOOK AT WHAT’S HAPPENING IN THE AUTOMOTIVE

INDUSTRY AS IT MOVES MORE AND MORE TOWARD ELECTRI I INDICATION, A LOT OF FOLKS THINK IT’S THE SAME SITUATION IN RECREATIONAL MARINE. HERE’S THE DIFFERENCE, WHAT ARE THE MAJORITY OF CARS DOING RIGHT NOW ACROSS THE UNITED STATES IN TRFIC.CITIES, THEY’RE STINGN THEY’RE BEING USED.

IF YOU LOOK AT AND ASK THE SAME QUESTION ABOUT WHAT ARE THE MAJORITY OF RECREATIONAL BOATS DOING RIGHT NOW, THEY’RE SITTING ON STAND BY. I’M IN CHICAGO. IT SNOWED LAST WEEK. MY BOAT IS GOING TO BE COVERED UP FOR THE NEXT SEVEN MONTHS. THERE’S A VERY BIG DIFFERENCE.

WHEN YOU DO A LIF CYCLE ANALYSIS LOOKING AT WHAT’S THE BEST WAY OF MINIMIZING Co2 EMISSIONS, YOU HAVE TO TAKE THAT INTO ACCOUNT. YOU HAVE TO UNDERSTAND THAT THE USAGE OF THE BOAT IS PROBABLY ONE OF THE SMALLER IMPACTS IN TERMS OF Co2.

IT’S REALLY ON THE PRODUCTION SIDE. SO OUR IUSTR IS EMPLOYING A LOT OF FOLKS AS CHIEF SUSTAINABILITY OFFICERS, MANAGERS TO MANAGE SUSTAINABILITY OF THE BOAT ITSELF DURING PRODUCTION, MANUF MANUFACTURING AND DISTRIBUTION. A LOT OF FOLKS TALK ABOUT THE PA

TON OF WORK THAT’S GOING ON IN THE PRODUCTION OF THESE VESSELS THAT SHOULD BE TALKED ABOUT AS WELL WHEN WE TALK ABOUT MINIMIZING Co2 ADMISSIONS. >> JAMES, LOOKING AT WHAT WE JUST HEARD JUST NOW ABOUT THE SORT OF — THE SORT OF VARIED

INTERESTS IN TERMS OF PROPULSION, WHAT DO YOU WANT TO HEAR FROM COMPANIES? ARE THEY TOO SLOW? ARE THEY DOING IT JUST RIGHT? MAYBE THEY SHOULD BUMP THE BRAKES AND STICK WITH TRADITION POWER TRAINS T KEEP THE MONEY FLOWING INTO THE COFFERS?

I TNK THEY NEED TO DO BOTH, RIGHT? THEY NEED TO NAVIGATE THEIR WAY THROUGH THE CURRENT DOWNTURN. I THINK THEY NEED TO MEET CONSUMERS WHERE THEY ARE. BUT ULTIMATELY PREPARE FOR A FUTURE IN WHICH THIS BATTERY TEC CREATE HIGHER HORSEPOWER APPLICATIONS THAT ARE LIGHTER

AND DON’T IMPACT THE PERFORMANCE OF THE BOAT IN A NEGATIVE WAY, BUT ALSO CHEAPER. AND LIKE SO MANY OTHER APPLICATIONS THAT WE’ SEEN, IF YOU’RE ENGINEERING FOR TODAY, YOU MIGHT NEVER MAKE THAT INVESTMENT. BUT IF YOU, YOU KNOW, CAN APPRECIATE THAT — SO MUCH OF

THIS TECHNOLOGY IS IMPROVES AT SUCH A FAST RATE, YOU WILL BE THERE WHEN THERE ARE SOME FITTING APPLICATIONS FROM A CONSUMER PERSPECTIVE. THAT’S ONLY A MATTER OF TIME. YEAH, I THINK INVESTORS, IF COMPANIES FOCUSED SOLELY ON SOME OF THESE NEW TECHNOLOGIES TODAY, THEY WOULD PROBAY B LOOSING

MONEY, SUFFICE IT TO SAY. BUT CERTAINLY, I THINK THERE’S A PLACE IN THE INVESTMENT PORTFOLIO, YOU KNOW, TO PREPARE FOR THAT FUTURE. >> MAYBE IT’S BIG BOATS OR WAVE RUNNERS. WE’LL SEE. THANK YOU. REALLY APPRECIATE IT. >>> BRUNSWICK STAMP ON THE INDUSTRY, HUGE COMPANY THERE.

THE COMPANY IS DIVING INTO ELECTRIC OUTBOARD MARKET FOR THE FIRST TIME WHICH MAY HELP PUSH THE GROWING SECTOR CLOSER TO THE MAINSTREAM. I MET UP WITH THE TECHNICAL MANAGER TO GET A FIRSTHAND LOOK AT THEIR LINE, CHECK IT OUT. ♪ >> LOOKING AT THIS MOTOR, WHAT

EXACTLY ARE THE MAIN COMPONENTS OR THE MAIN FEATURES THAT PEOPLE WILL BE LOOKING AT AND HOW DOES IT ALL WORK? >> AT FIRST GLANCE, IT LOOKS A STANDARD OUTBOARD. WE PUT A LOT OF TIME AND EFFORT INTO IT. OUTBOARDS ARE RATED FOR ONE HOUR AT THE RATED POWER.

AS SOON AS YOU COME OFF OF THAT, THE — IT’S AN EXPONENTIAL CURVE. SO IF YOU’RE AT 75% THROTTLE, IT’S THREE HOURS. IF YOU’RE AT 50% THROTTLE, IT’S, YOU KNOW, CLOSE TO FOUR TO SIX HOURS. >> HOW EASY IS IT TO TAKE THIS

THING OFF THE BOAT AND ON A BOAT? TH MARKET SEGMENT.A BIG DEAL I THERE’S A LATCH, YOU CAN TAKE THE OUT BOARD OFF, TIP THE TILLER HANDLE DOWN, AND OFF YOU GO. >> WHAT IS THE SETUP RIGHT HERE? >> THIS IS OUR MERCURY 7.5E.

IT’S ON OUR LUND SMALL ALUMINUM FISHING BOAT. IT’S A VERY VERSATILE OUTBOARD. IT CAN BE PUT ON MULTIPLE DIFFERENT VESSELS. >> THERE NOOUNDT ALL. I’M DRAWN BY HOW CALM AND QUIET IT IS AND SORT OF LIKE THE EASE OF USE, I GUESS, RIGHT?

>> THIS WILL REALLY OPEN UP THE DOORS TO A NEW GENERATION, A NEW TYPE OF PEOPLE THAT WANT TO EXPERIENCE THE WATER. >> LET ME GIVE IT A TRY. >> ABSOLUTELY. >> THAT’S BACKWARDS. HERE WE GO. >> HOW WAS IT? WHAT DO YOU THINK? WHAT’S YOUR REVIEW?

>> I WAS SURPRISED AT HOW SMOOTH IT IS AND EASY TO USE. I DID GO INTO REVERSE ON ACCIDENT. >> I WASN’T GOING TO POINT THAT OUT. >> BUT IT’S QUIET AND SMOOTH. GOOD POWER. IT WASN’T BAD. >> YEAH, I THINK THE BIG

QUESTION FOR A LOT OF BOATERS OUT THERE WHEN YOU TALK ABOUT THE CONSUMER, THE INDIVIDUAL LEVEL, THE POWER BEHIND THAT AND EXACTLY WHAT THAT ISOINGO BE ABLE TO PRODUCE. I LOVE THE QUIET NATURE OF IT. I THINK THAT’S GOING TO BE A GAME CHANGER.

>> FOR PONDS AND SMALL LAKES, IT’S PERFECT. YOU WANT THE HIGH POWER, THAT’S GOING TO BE A WAYS AWAY. >> THANKS SO MUCH. >>> KEEP IT RIGHT HERE ON YAHOO FINANCE. WE HAVE ALL OF YOUR MARKET ACTION AHEAD. WE’LL BE RIGHT BACK.

>>> ARGENTINA HAS ELECTED A NEW PRESIDENT. THE LIBERTARIAN WON A SECOND ROUND RUNOFF VOTEN SUNDAY WITH ABOUT 56% OF THE VOTE. NOW HE HAS THE TASK OF TURNING THE COUNTRY’S ECONOMY AROUND AMID 143% INFLATION AND A LOOMING RECESSION. ONE OF HIS PLEDGES TO FIX THE

SITUATION IS DITCHING THE PESO, SHUTTING DOWN THE CENTRAL BANK AND COMMITTING TO DOLLARIZATION. ARGENTINA’S PESO HAS BEEN HIT WITH A CRISIS AND RECESSION THAT HAS SUNK ITS VALUE AND LEFT IT WITH A WIDE ARRAY OF EXCHANGE RATES. HE AND HIS ADVISERS SEE TURNING

TO THE U.S. DOLLAR AS A WAY TO STABILIZE THE ECONOMY AND COUNTRY. MEANWHILE, THE U.S. DOLLAR IS EXTENDING LOSSES. SLIDING TO A MORE THAN TWO-MONTH LOW AS TRADERS LEAVE MONETARY TIGHTENING IS OVER AND FOCUSED ON THE FED CUTTING RATES. SOME INVESTORS WILL BE LOOKING

FOR OPPORTUNITIES IN EMERGING MARKETS. HERE WITH THE DAILS IS OUR VERY OWN JARED BLIKRE. >> YOU NAILED IT. IT’S ABOUT WHAT THE FED IS DOING. I WAS TALKING ABOUT INTEREST RATE DIFFERENTIALS. WHEN YOU HAVE A REALLY STRONG CURRENTLY LIKE THE UNITED STATES AND YOU HAVE HIGHER INTEREST

RATES THAN JUST ABOUT THE ENTIRE WORL PEOE A GOING TO RUSH INTO YOUR CURRENCY AND THAT’S GOING TO PUSH THE VALUE OF THE DOLLAR YOU HAVE AND OTHERS DOWN. BUT AT THIS STAGE IN THE BUSINESS CYCLE, MARKETS ARE LOOKING TO THE FED, INCREASINGLY

BEING SEEN AS BEING ON HOLD. SO IF THE FED ISN’T GOING TO RAISE RATES, ANYMORE, NO NEED TO SCRAMBLE INTO THE U.S. DOLLAR. THEREFORE, THIS IS THE TIME OF THE BUSINESS CYCLE WHEN EMERGING MARKETS CAN FLOURISH. I WANT TO FOCUS ON CURRENCIES FIRST. THIS IS U.S. DOLLAR VERSUS A

BUNCH OF OF PAIRS AROUND THE WORLD. THE U.S. DOLLAR IS UP 101% VERSUS THE PESO. THAT’S AN INCREDIBLE RATE. THAT MEANS THE VALUE OF THEIR CURRENCY IS JUST ABOUT HALVED IN THIS SHORT TIME PERD. THAT’S NOT EVEN ONE YEAR. IF YOU TAKE A LOOK OVER THE LAST

FIVE YEARS, 884%, THAT IS NOT SOMETHING THAT BODES WELL FOR ANYBODY WHO IS BORROWING IN U.S. DOLLARS DOWN THERE. BUT BACK TO THE MAIN POINT, THE U.S. DOLLAR HAS BEEN STRONG FOR INHE LAST FEW DAYS.S FALLEN OFF LET’S TAKE A LOOK AT A ONE-MONTH VIEW.

YOU CAN SEE THERE’S A LOT MORE RED HERE THAN IT IS GREEN. THAT MEANS THAT THE DOLLAR WEAKENING IS A TAIL WIND FOR STOCKS. LET’S GET TO SOME OF THE SECTOR — NOT SECTORS, SOME OF THE INDEX ACTION HER JUST ONE MORE SCREEN. THERE WE GO.

WE’RE GOING TO SEE IF I CAN PULL THIS UP, IT DOESN’T WANT TO COOPERATE, WE’LL HAVE TO SEE — THERE WE GO. SORRY ABOUT THAT, GUYS. WE HAVE THE INDEXES THAT I WAS LOOKING FOR. YEAR TO DATE, WE SEE OVER — ACTUALLY, ONE MONTH TODAY, WE

SEE BRAZIL, IT HAS BENEFITTED THE MOST FROM THE DOLLAR WEAKENING OVER THE LAST MONTH AND WE HAVE THE NASDAQ THAT’S BEEN UP ANOTHER 9% AFTER FLAGGING FOR A FEW MONTHS. WE’VE GOT SPAIN, GERMANY, ALL OF THOSE OUTPERFORMING THE S&P 500. SO THIS REAY HAS BEEN A TIME

POTENTIALLY FOR THAT SHINING AND JUST ON A YEAR-TO-DATE BASIS, YOU CAN REALLY SEE THE OUTPERFORMANCE STILL OF THE U.S. NASDAQ COMPOSITE UP 30%, NIKKEI UP 28%. CHINA TIMES CONSIDERED AN EMERGING MARKET. THAT’S DEBATABLE. BUT IT’S HAD SOME OF THE WORST PROBLEMS THIS YEAR.

>> ALL RIGHT, JARED, THANKS SO MUCH FOR THE DEEP DIVE HERE IN TERMS OF WHAT WE’RE SEEING PLAY OUT FROM AROUND THE WORLD. >>> THE U.N.’SLIMATE CONFERENCE MARKING THE WORLD’S 28th GATHERING OF LEADERS TRYING TO CONFRONT CLIMATE CHANGE SINCE THE FIRST CONFERENCE OF THE

PARTIES IN 1995. ACTIVISM HAS EXPLODED AROUND THE WORLD, SO HAS CORPORATE INVESTMENT IN CLEAN ENERGY TECHNOLOGY AND BUSINESS PRACCES. INVESTORS MAY NO LONGER BE BUYING INTO THE HYPE. $14 BILLION HAS BEEN PULLED FROM ESG FUNDS THIS YEAR HAS RETURNS HAVE NOT MET EXPECTATIONS.

HOW MUCH CAN WE EXPECT INVESTORS TO BE WATCHING THE INFORMATION COMING OUT OF COP-28 NEXTEEK. DAVID, WHEN YOU TAKE A LOOK AT THE FACT THAT INVESTORS HAVEN’T BEEN AS EXCITED ABOUT ESG FUNDS, WE’VE SEEN EXCITEMENT AROUND CLEAN ENERGY STOCKS AND SOME OF THE MOVEMENT THAT WE’VE SEEN

OVER THE LAST COUPLE WEEKS. HOW DO YOU THINK INVESTORS ARE LOOKING AHEAD TO COP-28 AND POTENTIAL INVESTMENT OPPORTUNITIES WITHIN THE DISCUSSION. >> IT’S INTERESTING. IT’S NOT THAT PEOPLE DON’T WANT TO INVEST IN CLIMATE CHANGE AND CLEAN ENERGY TECH STOCKS, IT’S

ALL ALL OF THE STOCKS ARE HIGHLY INTEREST RATE SENSITIVE. NOW IT’S STARTING TO TN AS BRAD SAID EARLIER. PEOPLE ARE STARTING TO LOOK OUT FOR THE NEXT RATE CUT WHICH WILL BE TOWARDS THE END OF NEXT WE’RE. THAT’S WHY WE’VE STARTED TO SEE THEM BOUNCE.

THERE’S AN ARTICLE WRITING THE OBIT OF ESG STOCKS. IT MEANS EVERYONE CAN GET BACK INTO THEM. COP IS GOING TO BE VERY IMPORTANT FOR THIS. ONE OF THE THINGS THAT IS IMPORTANT FOR COP WAS THE AGREEMENT LAST WEEK BETWEEN PRESIDENT BIDEN AND XI JINGPING

IN SAN FRANCISCO TO TRIPLE THE RENEWABLE ENERGY CAPACITY IN THEIR COMPANIES. CHINA IS A LEADER IN RENEWABLE ENERGY. BIDEN HAS BEEN WORKING HARD HERE. THE AGREEMENT IS IMPORTANT BECAUSE IT SETS THE STAGE FOR MORE INTERNATIONAL COORDINATION ATOP. AND ONE OF THE THINGS THEY’RE

GOING TO BE TALKING ABOUT AT COP IS HOW TO PHASE OUT OR PHASE DOWN OIL USAGE. TO DO THAT, YOU HAVE TO HAVE INVESTMENT IN RENEWABLE ENERGY. THIS AGREEMENT REALLY KIND OF SETS THE TABLE FOR A POTENTIALLY SUCCESSFUL COP, WE HAVEN’T HAD ONE SINCE 2015.

AND THAT’S GOOD FOR RENEWABLE ENERGY STOCKS AND FOR RENEWABLE ENERGY INVESTORS. >> IN ORDER FOR COP TO BE SUCCESSFUL, WHAT WOULD THAT ENTAIL FROM YOUR VIEW? >> WHAT WE SAW IN 2015 WAS THE PAS ACCORD, RIGHT? COP WAS IN PARIS. ALL THE COUNTRIES OF THE WORLD

SIGNED ONTO AN AGREEMENT TO KEEP GLOBAL PRICES FROM GLOBAL TEMPERATURES FROM RISING TOO FAR, RIGHT? THAT WAS THE LAST TIME THEY AGREED ON ANYTHING. AND EVERY YEAR WE ALL GO TO COP, SOMETHING LIKE 70,000 PEOPLE GOING THIS YEAR TO DUBAI AND EVERYBODY IS LOOKING FOR A

GLOBAL AGREEMENT AND EVERY YEAR IT COLLAPSES OR IT’S WARM TOAST OR SOMETHING LIKE THAT. THIS AT LEAST SETS THE STAGE THAT WE MIGHT SEE SOMETHING INTERESTING, EITHER IN THE WHICH IS GOOD FOR RENEWABLE ENERGY INVESTORS OR THE PAYMENT OF LOSS AND DAMAGES TO POORER

COUNTRIES WHICH IS ANOTHER THING. I, FOR ONE, AM SKEPTICAL THAT YOU CAN GET 100 GOVERNMENTS IN A ROOM TO AGREE ON ANYTHING. IF YOU HAVE THE TWO BIGGEST POLLUTERS IN THE WORLD, U.S. AND CHINA, AGREEING ON SOMETHING, THERE’S ROOM FOR SOME OPTIMISM. >> WHEN WE’VE SPOKEN WITH

CLIMBTOLOGISTS AND EVEN SOME OF THE CLIMATE ECONOMISTS OUT THERE, WHAT THEY’VE CONTINUED TO REMIND US IS THAT WE’RE COMING OFF OF — OR WE’RE STILL IN THE MIDST OF BUTERHAPS GOING TO BE ROUNDING OUT ONE OF THE HOTTEST YEARS ON RECORD DURING 2023.

HOW DOES THAT CHANGE THE IALOGUE FROM SOME OF THE GLOBAL WORLD LEADERS? >> THE PROBLEM IS, THE GLOBAL WORLD LEADERS ARE EITHER RUNNING FOR REELECTION OR AHORIRIANS WITH THEIR OWN SCHEDULES. THEY’RE NOT ON THE CLIMATE CHANGE SCHEDULE. THE WORLD IS CONTINUING TO GET HOTTER.

IT’S THE HOTTER SEPTEMBER WE’VE EVER HAD. PROBABLY WE’RE GOING TO LOOK BACK AT THAT AS THE COOLEST ONE WE’VE HAD FOR 20 YEARS. THEY’RE GOING TO CONTINUE TO GET HOTTER. THE PRESSURE — IS LIKE A FROG IN BOILING WATER. THE PRESSURE CONTINUES TO RISE

ON THESE GLOBAL LEADERS AND THEN THEY HAVE ALTERNATIVE PRESSURES SUCH AS FACING REELECTIONS AND THE HIGHER COSTS OF CLIMATE CHANGE. SO THEY’RE NOT ON THE SAME SCHEDULE. THEY NEED TO BE SHOCKED INTO THAT AND I THINK, BRAD, WHAT WE SAW THIS YEAR IN CLIMATE

DISASTERS, SOMETHING LIKE $89 BILLION CLIMATE DISASTERS THE LAST FEW YEARS, IS GOING TO START TO PUT THAT PRESSURE ON. >> WHEN YOU TAKE A LOOK AT WHAT’S HAPPENED — JUST OVER THE LAST, WHAT, FOU SIXEEKS WHEN IT COMES TO THE STRATEGIC INVESTMENTS THAT WE’VE SEEN FROM

EXXON AND CHEVRON DOUBLING DOWN, BUT THE TRANSITION THAT WE’RE GOING TO SEE TO CLEAN ENERGY, HOW DO YOU ADDRESS THE DISCONNECT PLAY OUT BETWEEN THE DEVELOPED ANDUNDERDEVELOPED WORLD AND THESE LARGER PLAYERS THAT ARE TRYING TO OBVIOUSLY POSITION THEM — THEIR

BUSINESSES BEST TO ADDRESS THE UNDEVELOPED WORLD, BUT ALSO POSITION FOR THE DEVELOPED WORLD’S TRANSITION HERE POTENTIALLY. >> A LOT OF WHAT THEY’RE GOING TO BE TALKING IS LOSS AND DAMAGES WHICH IS WILL AMERICA PAY HUNDREDS OF BILLIONS OF DOLLAR TO PROTECT MADAGASCAR.

PROBABLY NOT GOING TO HAPPEN. THE OIL COMPANIES ARE GOING TO HELP US WITH SOLUTIONS. A LOT OF TALK IS GOING TO BE ABOUT CARBON CAPTURE AND STORAGE, WHICH IS ONE OF THE HOT SUBJECTS ON WALL STREET. THE IDEA THAT YOU CAN PULL CARBON FROM THE AIR.

IT’S AT THE SAME TIME CONTINUE TO PRODUCE OIL. SO THEY’RE GOING TO BE PUSHING THAT. THEY’RE DOUBLING DOWN ON SQUEEZING THE LAST DROPS OF OIL OUT OF THE EAH, UNFORTUNATELY. IF THEY CAN PUSH THAT TECHNOLOGY AND THEY’RE THE ONE THAT IS HAVE THAT TECHNOLOGY, NOT THE

START-UPS THAT WE TALK ABOUT OR WRITE ABOUT. THEY’RE THE ONES THAT HAVE IT. THEY CAN PUSH THAT AND COME TO SOME AGREEMENTS WITH THE GOVERNMENTS. WE COULD SEE A RADICAL NEW E OF CREATING MORE ENERGY FOR PEOPLE, RENEWABLE PLUS FOSSIL FUELS AND MAKING THE WORLD A

CLEANER PLACE. >> A LOT TO KEEP TABS ON OVER THE NEXT WEEK HERE AND MORE SO BEYOND. DAVID CALLAWAY JOINS US HERE ON SET. THANK U S MUCH. APPRECIATE IT. >>> STAY TUNED, YOU’RE WATCHING YAHOO FINANCE. >>> A FUN DAY FOR SIX FLAGS.

THE STOCK IS TICKING SLIGHTLY HIGHER THIS MORNING AFTER THE RATING WAS LIFTED ON THE OPERATOR. THE INVESTMENT FIRM BELIEVES THAT THE MERGER OF SIX FLAGS AND CEDAR FAIR WILL, QUOTE, MATERIALLY INCREASE VALUE FOR SHAREHOLDERS. LET’S BRING IN DAVID KATZ, EQUITY RESEARCH ANALYST.

I GOT TO IMAGINE THIS IS A FUN JOB HERE. YOU GET TO GO TO THE ATTRACTIONS, GET A GOOD VIEW OF THESC SCAPE HERE AND TELL INVESTORS THAT WHETHER OR NOT THE INVESTMENTS THAT COMPANIES LIKE SIX FLAGS IS MAKING ARE PAYING OFF?

>> IS IT PAYING OFF? >> YEAH, FORTUNATELY I DON’T HAVE TO GO ON ANY OF THE RIDES IN ORDER TO REACH OUR INVESTMENT CONCLUSIONS WHICH WE HAVE IN OUR NOTE THIS MORNING.pBUTHAT I WOU FOLLOWED SIX FLAGS FOR MANY YEARS. IT HAS LACKED A CONSISTENCY OF STRATEGY AND MANAGEMENT.

IT REALLY HAS BEEN CHALLENGED TO DEFINE ITS VALUE PROPOSITION TO CONSUMERS. AND I THINK THAT’S BEEN GOING ON FOR A DECADE OR MORE. AND WHAT THE FUN TIE-UP BRINGS IT IS A STABLE OPERATING MODEL THAT CEDAR FAIR HAS, AN EXPERIENCED MANAGEMENT TM

ACROSS THE BOARD WHICH SIX HAS NOT HAD, AND I SAY EXPERIENCED WITH RESPECT TO THE THEME PARK BUSINESS. WHICH IS NOT NECESSARILY A GROWTH BUSINESS. THE ESSENCE OF OUR CALL THIS MORNING IS THAT BY PUTTING THE SINESSES TOGETHER AND DEFINING A CLEAR VALUE PROPOSITION,

PROVIDING A STABLE SET OF CAPITAL ALLOCATION FRAMEWORKS AROUND THE BUSINESS, IT CAN GO BACK TO TRADING AT THAT DOUBLE DIGIT MULTIPLE LEVEL WHILE RETURNING CAPITAL, WHILE FUNDING THE BUSINESS PROPLY, INSTEAD OF THE 7 1/2 TIMES AT WHICH IT CLOSED ON FRIDAY AND WE’RE

TALKING ABOUT CASH FLOW AND EBITDA. THAT’S THE ESSENCE OF OUR CALL THIS MORNING. >> WHEN YOU TALK ABOUTTHAT, MORE SPECIFICALLY, WHAT DOES THAT LOOK LIKE? GIVEN THE ENVIRONMENT RIGHT NOW, HOW MUCH RISK DO YOU SEE MAYBE ASSOCIATED WITH SOME OF THESE NAMES IN THE NEAR TERM?

>> YEAH. IT’S A GREAT QUESTION. AND WE HAVE GRAVITATED TOWARD NAMES IN OUR COVERAGE. IF YOU LOOK ALL ACROSS OUR GAMING, LODGING AND LEISURE COVERAGE, WHAT YOU SEE ARE COMPANIES THAT ARE EXPOSED TO THE MACRO ECONOMY IN WAYS. WE NEED TO ESTABLISH A MODEL, AN

EXECUTION PLAN, A SETTING OF EXPECTATIONS AND MEETING EXPECTATIONS, THOSE ARE ALL ISSUES THAT DO NOT WARRANT — DO NOT REQUIRE THE MACRO ECONOMY TO DO ANYTHING SPECTACULAR. IN FACT, IT CAN BE SUCCESSFUL WITHIN A RELATIVELY WIDE RANGE OF OUTCOMES. BUT FOR SURE, ACROSS ALL OF OUR

COVERAGE, WE’RE FOCUSED ON THE MACRO ECONOMY IS ITS IMPACTS ON THE BUSINESS. IT DOESN’T NEED THE ECONOMY TO WORK. >> WHA TE OF PRICING POWER DOES THIS COMPANY HAVE WHEN IT COMES TO THE SEASON PASSES, ESPECIALLY IN AN ENVIRONMENT TH

PATRONS ARE THAT ARE COMING INTO THE PARKS. WHAT IS MOTIVATING THEM TO SPE AND BEING MUCH MORE DEFIEFFICIE ABOUT IT. THIS COMPANY HASN’T HAD A SOPHISTICATED DATA PLAN IN PLACE. IN TERMS OF TRACKING ITS CUSTOMERS, THE WAY WE SEE MANY OF OUR OTHER CONSUMER-FACING CO.

AND THAT’S WHAT THEY HAVE TO DO. NOT NECESSARILY GET ANOTHER BUCK OR TWO OUT OF PRICE. >> WHEN IT COMES TO THIS TURNAROUND, THE POTENTIAL THAT YOU SEE THIS WITHIN THIS SIDE ESPECIALLY CONSIDERING WHAT IT WILL LOOK LIKE AFTER THE MERGER GOES THROUGH, WHEN WE TALK ABOUT

TURNAROUND, HOW QUICKLY DO YOU SEE THIS TAKING SHAPE. >> I EXPECT THERE WILL BE — YOU KNOW, WE LOOK AT THESE THINGS OVER A SPECTRUM. THERE’S GOING TO BE SOME LOW-HANGING FRUIT, RIGHT? AND A LOT OF THAT IS GOING TO BE COST SYNERGY.

WHERE SGNA PRO PROVIDES AND THE OPERATING BASE PROVIDES AN OPPORTUNITY TO CUT COSTS. IT’S INTERESTING, WHEN YOU LOOK AT THE MAP OF THESE TWO COMPANIES, THERE’S ONLY A MODEST AMOUNT OF OVERLAP AND I THINK THAT’S AN IMPORTANT THING. EXCEPT FOR CALIFORA AND TEXAS

WHERE THERE ARE SOME REDUNDANT EXPOSURES. AND SO, YOU KNOW, THAT WE THINK WILL PROVIDE SOME SCALE BENEFITS AND SOME COST BENEFITS AND I THINK YOU’LL START TO SEE THOSE WITHIN A VERY SHORT AMOUNT OF TIME. LATER ON IS REALLY THE REVENUE

SIDE WHERE IT CAN START TO PUSH THINGS LIKE THE MEMBERSHIP PROGRAM AND THE PASS PROGRAM, LIKE THEIR SPONSORSHIP REVENUES. COME AS A SECOND DERIVATIVE OF THE DATA GATHERING AND OF THE STABLE OPERATING MODELS. >> LASTLY HERE, THAT EXPERIENCE IN THE PARK, WHAT REVOLUTIONARY

DO YOU NEED TO SEE INSIDE OF THE PARK EXPERIENCES TO MAKE SURE THAT THEY — NOT ONLY HIT YOUR EXPECTATIONS BUT PROCEED EXCEED THEM. >> I THINK EXECUTION AND EFFICIENCY IS THE MOST IMPORTANT THING. THE MANAGEMENT TEAM HAS DONE A NICE JOB OF IMPROVING SOME OF

THE ELEMENTS OF THE EXPERIENCE WITH FOOD, SHORTENING LINES, BUT I THINK THERE’S A LOT MORE THAT CAN BE DONE TO CREATE AN EFFICIENT EXPERIENCE FOR A FALY O GROUP OF PEOPLE TO COME IN, DO WHAT THEY WANT TO DO, ENJOY IT, YOU KNOW, GET

THEIR CAR PARKED, GET BACK IN THEIR CAR, AND CALL IT A GOOD DAY. AND SO I THINK THIS IS REALLY AN EXECUTION STORY MORE THAN ANYTHING ELSE. >> ALL RIGHT. SIX FLAGS SHARES UP A HALF OF A PERCENT. GREAT TO TALK TO YOU. THANKS.

>>> KEEP IT RIGHT HERE ON YAHOO FINANCE. WE HAVE ALL OF YOUR MARKET ACTION AHEAD. WE’LL BE RIGHT BACK. >>> THE GLOBAL E-COMMERCE MARKET IS GOING UP THIS YEAR. AS THE CHALLENGES MOUNT LIKE FALLING DISCRETIONARY DEMAND AND HIGHER OPERATING COSTS, SOME ARE CUTTING BACK ON RETURNS.

RETAILERS ARE CHARGING RETURN FEES THIS YEAR, THAT’S UP FROM JUST OVER 30% FROM A YEAR AGO. WE WANT TO BRING IN THE FOUNDER AND CEO. IT’S GD TO SEE YOU HERE. WE CERTAINLY ARE STARTING TO SEE THIS TREND TO MORE RETAILERS CHARGING FOR RETURNS.

HOW DO YOU SEE THIS IMPACTING CONSUMER SPENDING DECISIONS THIS HOLIDAY SEASON? >> I DON’T. ONLINE RETAILERS, DEFINITELY IS IMPACTING THE COST AND MARGINS. SO FROM CONSUMER PERSPECTIVE, WE SEE THESE COSTS ARE ACTUALLY COMING DOWN AND THEY HAVE TO PAY A LITTLE BIT MORE TO RETURN NOW,

ESPECIALLY, YOU KNOW, AS GAS PRICES CONTINUE TO BE HIGH, AS THE LABOR COSTS ALSO PLAY AN IMPACT IN THE COST AS WELL. >> WHEN YOU THINK ABOUT THE OVERALL CONSUMER ENVIRONMENT, WHAT YOU’RE SEEING RIGHT NOW IN JUST THE AMOUNT OF CONSUMERS

THAT ARE LOOKING FOR THE ABILITY TO NOT JUST TRACK THEIR PACKAGES BUT CONTINUING TO SPEND, BECAUSE THIS IS SOMETHING THAT YOU GUYS WOULD HAVE INSIGHT TOO, YOU KNOW, WHERE ARE WE COMP TO SOME OF THE PERIODS WHERE CONSUMERS WERE SPENDING A LOT BECAUSE THEY HAD MORE DISCRETIONARY INCOME OR

AT LEAST HAD MORE OF THAT CASH PILE THAT THEY WERE SITTING ON AND THEN ULTIMATELY HOW DO WE LOOK INTO THE HOLIDAY SEASON FROM ORDERS THAT YOU’RE ALSO ABLE TO SEE SOME INSIGHT INTO? >> WHAT WE SEE IS THAT THERE IS — THAT THE CAUTIOUS NATURE

THAT WE SEE, THEY ARE BUYING, BUT THE AVERAGE BASKET SIZE IS LOWER COMPARED TO YEAR OVER YEAR AND WE ARE ALSO SEEING — WE TALKED ABOUT IT WHERE CONSUMERS ARE ACTUALLY SHOPPING SOMETIMES PRICE MAY CHANGE AND THEY ACTUALLY WILL RETURN THE ITEM IN

ORDER TO GET A LOWER PRICE OR EVEN DISCOUNTED ITEM. SO WE ARE SEEING RETAILERS ARE SEEING THE IMPACT BOTH ON THE BASKET SIZE AND RETURN RATES AS WELL. >> IN TERMS OF THE DATA THAT YOU’RE LOOKING AT, SOME OF THE TRENDS THAT YOU’RE NOTICING

AHEAD OF THE HOLIDAY SEASON, HOW DOES THAT COMPARE TO WHAT WE’VE SEEN IN YEARS PAST? >> SPECIFICALLY IN TERMS OF — OR ON SHOPPING, WE’LL SEE MUCH MORE CAUTIOUS CONSUMERS. WE DON’T SEE A SIGNIFICANT YEAR-OVER-YEAR INCREASE IN THE ONLINE SHOPPING. SECOND IS AROUND RETURNS.

YOU MENTIONED IN YOUR OPENING COMMENTS THAT THE RATES ARE INCREASING. WE’RE GOING TO SEE THE SAME TREND INTO THIS HOLAY. WE’RE GOING TO SEE A HIGHER RATE COMPARED TO YEARS PAST. >> I BELIEVE YOU WORK WITH BOTH COMPANIES LIKE NIKE, COMPANIES

LIKE RENT THE RUNWAY, WHERE YOU WOULD BE ABLE TO SEE KIND OF BOTH SIDES OF THE EQUATION, WHERE SOMEBODY IS HAVING SOMETHING SHIPPED TO THEM BUT ALSO WHE SOMHINGS BEING SHIPPED BACK IN ORDER TO KIND OF RETURN THAT HIGH-END LUXURY GOOD THAT SOMEBODY MIGHT HAVE BEEN

TAKING ON FOR AN EVENT THAT THEY WERE WEARING. ALL OF THAT ASIDE, HAVE YOU SEEN A DRAMATIC SHIFT IN THE NUMBER OF CONSUMERS THAT ARE KIND OF BUYING INTO SOME OF THE — YOU KNOW, THE PACK,HIP AND SEND BACK TYPE OF SERVICES LIKE

STITCH FIX, RENT THE RUNWAY, THAT HAD DONE REALLY WELL IN MAKING SURE THAT WAS CURATED FOR THEM? >> SO THERE ARE TWO PARTS OF IT. YES, WE WORK WITH ALL 1500 GLOBAL BRANDS AND RETAILERS NOT ONLY IN THE U.S. BUT WORLDWIDE. BO IN TERMS OF ORDER BEING

SHIPPED, TRACKED AND NOTIFIED, AS WELL AS RETURNS AND EXCHANGES. IN TERMS OF, YOU KNOW, THE SERVICES BEING OVER THE RENT THE RUNWAY AND STITCHFIX, FESTIVAL SEASONS ARE COMING UP, WORKING IN THE OFFICE, SO WE ARE SEEING, YOU KNOW, MORE OF THE UPTICK IN

CUSTOMERS BUYING PRODUCTS IN — IN THESE CATEGORIES WHERE THEY CAN ACTUALLY USE DURG THE UPCOMING HOLIDAY SEASON. >> HOW MUCH DO YOU EXPECT TO BE RETURNED THIS HOLIDAY SEASON? I THINK A BIG QUESTION OUT THERE FOR SO MANY CONSUMERS WHEN WE’RE SHOPPING A LITTLE BIT MORE

ONLINE IS WHAT HAPPENS TO OUR RETURNS? WHERE DO THEY GO? HOW MUCH WASTE DOES THAT POTENTIALLY CREATE? I GUESS, WHAT KIND OF INSIGHT CANOU GIV US ABOUT WHAT THAT ENTIRE PROCESS LOOKS LIKE? >> YEAH, I MEAN, ONCE THE RETURNS ARE INITIATED BY A

CONSUMER, THERE ARE THREE THINGS THAT HAPPEN ON RETURNS. IF THE PRODUCTS ARE IN GOOD CONDITION, THEY’RE PUT BACK ON SHELVES SO THEY CAN BE SOLD AGAIN. IF THERE SLIGHTLY USED OR OPEN BOXES, THEY’RE LIQUIDATED. IF THE PRODUCT IS NOT IN A GOOD CONDITION AT ALL, LIKE BABY

PRODUCTS OR HEALTH AND BEAUTY PRODUCTS, OPEN BOX CANNOT BE SOLD AGAIN, THOSE ARE ACTUALLY GOING TO LANDFILLS. THERE’S A SIGNIFICANT IMPACT OF RETURNS AND REVERSE LOGISTIC THAT IS INVOLVED BEHIND THE SCENES FOR EVERY RETURN THAT A CONSUMER INITIATES.

>> FOR NARVAR — I HAVE USED YOUR SERVICES MANY TIMES AS E CUSTOMER OF ONE OF THE COMPANIES THAT YOU PARTNER WITH. WHAT DOES THAT NEXT LEG OF ITERATION OF GROWTH BEYOND A COMPANY BEING ABLE TO ADD THEIR OWN BRANDING INTO THIS EXPERIENCE, MANY CONSUMERS

CONTINUE TO TRACK THEIR PACGES AND TAKE PART IN. >> ABSOLUTELY. TWO THINGS. WHEN WE’RE TALKING ABOUT RETURNS, WE TALK ABOUT THE COST. AND THAT ACTUALLY IMPACTS THE BOTTOM LINE OF CONSUMERS. AS WELL AS RETAILERS. CONSUMERS PAY THE PRICE FOR PAYING FORETURNS AND RETAILERS SEE THAT OPERATIONAL OVERHEAD.

SO WE’RE GOING TO SEE A COUPLE OF THINGS HAPPENING IN THE INDUSTRY. FIRST OF ALL, RETURNS POLICIES ARE ONE SIZE FIT ALL. WHICH MEANS, YOU HAVE X NUMBER OF DAYS TO RETURN EITHER FOR A FEE ORO FE AND THEN YOU CAN’T DO MUCH.

WHAT WE’RE GOING TO SEE IN THE FUTURE IS MUCH MORE BALANCED RETURNS POLICIES WHERE IF YOU ARE A LOYAL MEMBER OR A VIP MEMBER FROM THE BRAND, THEN YOU CAN HAVE MUCH MORE LIBERAL YO M GET YOUR RETURNS AND REFUNDS INSTANTLY AND IF YOU’RE

NOT, THEN YOU MAY HAVE TO PAY FOR RETURNS. THAT’S ONE CHANGE THAT YOU WILL SEE THAT RETAILERS WILL — RETURNS MORE CLOSER TO THEIR LOYALTY PROGRAM. THAT’S NUMBER O. OTHER THING THAT YOU WILL SEE IS, IT’S NOT JUST ABOUT THE RETURNS, BUT HOW DO YOU ACTUALLY

DRIVE THE EXCHANGES? BECAUSE IF CONSUMER HAS AN INTENT AND IF THEY BUY A PRODUCT ONLINE AND THEY WANT TO RETURN IT BECAUSE OF THE SIZE OR COLOR, HOW DO YOU GIVE THEM CONVENIENT OPTIONS TO ACTUALLY EXCHANGE, THAT’S WHERE YOU CAN KEEP THE SHARE OF WALLET VERSUS

COMPLETELY REFUNDING FOR THE PURCHASE THAT THE CONSUMER MAY HAVE MADE. WE SEE A LOT OF OPPORTUNITIES FOR BUSINESSES TO ACTUALLY IMPROVE THEIR RETURNS POLICIES AND LAST BUT NOT LEAST, TECHNOLOGIES, ESPECIALLY NEW A.I. AND LANGUAGE MODELS WILL OFFER MORE CONVENIENT OPTIONS TO ACTUALLY FIGUREUT WT

CONSUMER NEEDS ARE SO THAT WHEN THEY’RE LOOKING FOR EXCHANGES, THAT WAY THEY CAN GET A BETTER FIT THROUGH THE PROCESS. >> JUST VERY QUICKLY, WE ONLY HAVE 15 SECONDS. WHEN YOU THINK ABOUT THE CAPITAL THAT’S NECESSARY TO RUN NARVAR, THE LAST ROUND I HAD SEEN WAS

BACK IN 2019 WHICH WOULD SUGGEST THAT THERE’S NOT A TON OF CAPITAL INFUSION THAT’S NEEDED TO MAKE SURE THAT THIS CONTINUES TO HAVE WHEELS AND RUN THE SAME WAY THAT IT NEEDS TO. YOU KNOW, WHAT IS THE KIND OF STRUCTURE THAT YOU LOOK FOR?

DO YOU THINK ABOUT AN IPO? DO YOU NEED TO GO PUBLIC? >> WE ARE RUNNING OUR OPERATIONS QUITE EFFECTIVELY. WE’VE BEEN CASH FLOW AND EBITDA POSITIVE AND WE’RE EXCITED TO DEPLOY THE CASH AND BALANCE SHEET THAT WE HAVE FOR FUTURE GROWTH. HAPPY TO COME BACK AND SHARE THE

EXCITEMENT THAT WE HAVE MORE THE ORGANIZATION. >> I WOULD LOVE THAT. GREAT TO SPEAK WITH YOU HERE TODAY. APPRECIATE YOU AND THE TEAM THAT YOU GOT OVER THERE. >> THANK YOU FOR HAVING ME. >>> ALL YOUR MARKETS ACTION AHEAD. STAY TUNED. U’REATCHING “YAHOO FINANCE LIVE.”

>>> A TALE OF TWO FOOD COMPANIES. JP MORGAN HAS OPPOSING VIEWPOINTS FOR KRISPY KREME AND DUTCH BROS. KRISPY KREME HAS BEEN DOWNGRADED BUT LIFTED DUTCH BROS TO OVERWEIGHT. THEY’RE SAYING THAT DUTCH BROS IS COMPRISED OF $150 MILLION OF CASH, $350 MILLION OF AVAILABILITY.

$200 MILLION OF UNDRAWN DELAY DRAW TERM LN HERE. TURNING FREE CASH FLOW POSITIVE. THE OUTLOOK FOR DUTCH BROS IS OPTIMISTIC, COMPARING THAT TO KRISPY KREME. THERE WAS A LACK OF CONSISTENCY, THEY’RE SEEING AROUND KRISPY KREME’S DELIVER FRESH DAILY BUSINESS AND SOME OF THE RISK

THAT COULD POSE TO THE BUSINESS GOING FORWARD. I DON’T KNOW. YOU’RE A LOYAL KRISPY KREME — FOR AWHILE THERE. >> IT WAS PROXIMITY-DRIVEN. I LIVED DIRECTLY ACROSS THE STREET FROM ON I COULD NOT HELP BUT GO WITHOUT — YOU KNOW, WITHOUT A

COUPLE DAYS OR A WEEK WITHOUT GOING IN THERE. ALL THAT THE SAME, YOU LOVE LOOKING AT THE KIND OF CONVECTION LINE AS IT’S COMING DOWN. FOR ALL OF THESE CALLS THAT WE’VE SEEN COME FORWARD, A FEW THINGS ABOUT THE CONSUMER, ESPECIALLY IN THE DELIVERED

ESH DAILY. IT’S REALLY JUST THE OPPORTUNITY TO GET THEM IN A FEW DIFFERENT CAPACITIES AND KRISPY KREME HERE, I THINK WITHIN — WHAT THEY’VE BEEN ABLE TO DO IN THAT DELIVERED FRESH DAILY IS TO GROW THE NETWORK THAT THEY’RE ABLE TO DELIVER INTO NOW.

THIS IS ALSO A COMPANY THAT’S HAD RENT CEO TRANSITION AS WELL HERE. TATTERSFIELD IS OUT AND SEEING WHAT THAT NEW HEAD AT KRISPY KREME DOES IN ORDER TO CONTINUE TO GROW THE NETWORK AND ENSURE THAT THE QUALITY IS NOT ULTIMATELY GIVEN UP IN THAT

EFFORT AS WELL. ANTHENN THE DUTCH BROS. SIDE, THAT’S BEEN INTERESTING TO TRACK WHAT JP MORGAN IS SAYING ABOUT THEM SAYING THEY SEE SIGNIFICANT CHANGES IN THE CAPITAL STRUCTURE AND SHAREHOLDER BASE IN THE PAST FEW MONTHS, AND THAT REALLY KIND OF CONTRIBUTING TO SOME OF THE

UPDATE THERE THAT THE BANK OR THE FIRM HAD GIVEN FORHIS COFFEE CHAIN. >> AND THERE’S A NEW ELF — >> THERE IS. >> CELEBRATING 20 YEARS SINCE WE FIRST STARTED TALKING ABOUT WILL FERRELL AND BUDDY THE ELF. >> I’VE ONLY SEEN THE MOVIE ONCE.

THAT’S ALL I NEEDED. >>> STOCKS AREIGHE TO KICK OFF A SHORTENED TRADING WEEK, BUT WHAT WE’VE SEEN HISTORICALLY AHEAD OF THANKSGIVING, THAT IS THE BIG QUESTION. WE’RE GOING TO HAVE THAT COVERED FOR YOU. >>> AND COMPANIES HAVE A LOW PRICE TAG, BUT HOW WILL THIS

IMPACT RETAIL GIANTS LIKE AMAZON THIS HOLIDAY SEASON? >>> OIL TICKING HIGHER TODAY. STAY TUNED FOR A TECHNICAL ANALYSIS. THAT’S NEXT HOUR. ALL THAT DURING THE 11:00 A.M. >>> DO A QUICK CHECK OF THE MARKETS HERE. AN HOUR AND A HALF INTO THE TRADING DAY. YOU’RE STILL LOOKING AT SLIGHT

GAINS ACROSS THE BOARD. YOU CAN LOOK AT THE MAJOR AVERAGES HERE. YOU HAVE THE DOW UP 86 POINTS. THE NASDAQ UP 0.6%. THAT DOES IT FOR US TODAY. KEEP IT RIGHT HERE. SEE YOU TOMORROW. ♪ >>> WELCOME TO YAHOO! FINANCE LIVE. IT’S 11:00 A.M. ON THEAST

COAST, 8:00 A.M. ON THE WEST. I’M RACHELLE AKUFFO. HERE’S A LOOK AT WHAT I’M WATCHING THIS MORNING. THE MISSION CONTINUES. SAM ALTMAN IS HEADING TO MICROSOFT, SO WHAT WILL THE FUTURE OF THE COMPANY’S AI VENTURE LOOK LIKE NOW? WE’LL DISCUSS. >>> AND COMPANIES LIKE CHINA’S

SHIAN HAVE A LOW PRICE TAG, HOW WILL THIS IMPACT AMAZON THIS SEASON. WE’LL SPEAK WITH AN EXPERT COMING UP THIS HOUR. >>> OIL IS TICKING HIGHER TODAY AS TRADERS AWAIT OPEC’S NEXT MOVE. STAY TUNED FOR A TECHNICAL ANALYSIS WITH MARKETGAUGE.COM’S

MICHELLE SNYDER COMING UP THIS HOUR. TRADING IN A RELATIVELY NARROW RANGE BUT STILL LOOKING AT GREEN ACROSS THE BOARD HERE. SOMETHING OF A TEMPERED SENTIMENT AS WE AWAIT MC TOMORROW. THE S&P 500 ALSO UP ABOUT .4%. HEAVY NASDAQ STRONGEST GAINER SO FAR THIS MORNING, UP ABOUT 100

POINTS OR .7%. LET’S ALSO CHECK IN ON THE ACTION WE’RE SEEING WITH THE TREASURY MARKET AS WE KICK OFF THE WEEK AS WL. THE SHORTEST TERM YIELD UP ABOUT .4%. THE TEN-YEAR UP 1/2 OF A PERCENT. AND THE 30-YEAR YIELD UP ABOUT .4% AS WELL.

>>> INVESTORS ARE GEARIN UP FOR A SHORTENED WEEK OF TRADING AFTER A THIRD STRAIGHT WEEK OF MARKET GAINS. HISTORICALLY, WHAT HAS THIS THANKSGIVING HOLIDAY WEEK LOOKED LIKE FOR MARKETS. WE’RE JOINING US WITH MORE IS JARED BLIKRE WITH THAT BREAKDOWN. WHAT CAN WE EXPECT? >> HISTORICALLY, YEARS AND

DECADES AGO, THANKSGIVING WEEK WAS THAT HUGELY BULLISH TIME FOR EQUITIES. NOW IT’S A LITTLE BIT MORE MIXED. I HAVE THE S&P 500 HISTORICALLY, WHAT IT TENDS TO DO ON EACH DAY OF THIS WEEK, ALONG WITH THE NASDAQ COMPOSITE AND THE RUSSELL 2000, GOING BACK TO THE EARLY

60s, AND THE RUSSELL, THE LATE 80s, AND AS YOU CAN SEE, MONDAY IS THE WEAKEST BY WIN PERCENTAGE THERE. YOU CAN SEE LESS THAN 50% FOR ALL THREE OF THESE INDICES. ON TUESDAY THINGS GET A BIT BETTER AND ON WEDNESDAY, THAT’S WHEN WE HAVE THE HIGHEST WIN

RATE. FOR THE ENTIRE WEEK, IT IS POSITVE, MORTHAN NEGATIVE 50% OF THE TIME. HERE’S A DIFFERENT LOOK. THIS IS MEASURING THE ACTUAL RETURNS ON MONDAY, TUESDAY, WEDNESDAY, FRIDAY, AND FOR THE WHOLE WEEK, AND I SHOULD ALSO MENTION THAT FRIDAY IS AN ABRIEFUATABRIEF BEREAVE — ABBREVIATED SSION

HISTORICALLY, THIS IS A DAY OF LOSSES. AND THAT’S ONLY THE MEDIAN THAT I’M TALKING ABOUT THERE. THE AVERAGE IS ALSO NEGATIVE AS WELL. YOU CAN SEE THINGS TURN POSITIVE FOR THE REST OF THE WEEK. FOR THE NASDAQ, ALL FOUR DAYS, ALL FOUR WEEKDAYS ARE POSITIVE,

ANDTHEN FOR THE RUSSELL 2000, TUESDAYS TEND TO BE NEGATIVE BUT YOU CAN SEE THEY ACTUALLY HAVE HIGHEST GAINS, APPROACHING 1%. WE CAN DIG INTO THE SECTOR ACTION, GOING BACK TO 1999 UNLESS THE SECTOR HAS BEEN CREATE SIN THAT IN A COUPLE OF DAYS.

ENERGY, BY FAR AND AWAY, THAT’S THE BEST. UP 1 1/2% ON A MEDIAN BASIS GOING BACK 30 YEARS, 20 YEARS OR SO. CONSUMER DISCRETIONARY, COMMUNICATIONS SERVICES, THAT’S ONLY A FEW YEARS OLD, AND THEN STAPLES UP 1/2%. YOU CAN SEE ALL OF THESE HAVE

MEDIAN RETURNS THAT ARE POSITIVE, AND THAT’S WHAT WE TEND TO GET. NOW, I CLOSE BY SAYING, WE HAVE SOME OUTLIERS AND INTERESTING THINGS CAN HAPPEN. I REMEMBER 2009 IN PARTICULAR, THERE WAS A CONCERN ABOUT DUBAI, AND ITS DEBT DEAL GETTING DONE. THE MARKET OPENED UP STRONGLY IN

NEGATIVE TERRITORY ON FRIDAY MORNING, CLIMBED INTO THE GREEN BY THE CLOSE. BE ON ALERT, IF WE GET NEGATIVE PRICE TIONHIS WEEK, MIGHT BE A LITTLE BIT OF A FAKEOUT. WE’LL HAVE TO JUDGE IT FROM THERE, GUYS, THANKS. >> INDEED, APPRECIATE THAT. AS PEOPLE CAN MANAGE THEIR

EXPECTATIONS AHEAD OF THANKSGIVING. >> THAT’S WHAT IT’S ALL ABOUT, MANAGING EXPECTATIONS. >> INDEED. THANK YOU, JARED. >>> WELL, SPEAKING OF PECTIONS, AFTER HIS ABRUPT EXIT FROM OPEN AI, FORMER CEO SAM ALTMAN IS BRINGING HIS SKI SET TO MICROSOFT. ALTMAN WILL HAVE THE ARTIFICIAL INTELLIGENCE RESEARCH TEAM,

JOINED BY COFOUNDER, GREG BROCKMAN AND A FEW OTHER COLLEAGUES FROM THE CHATGPT STARTUP. WITH MOR ON WHAT THE SERIES OF MAJOR SHAKEUPS MEANS FOR MICROSOFT, I’M JOINED BY NYU PROFESSOR OF TECHNOLOGY, OPERATIONS AND STATISTICS. THANK YOU FOR JOINING US THIS MORNING.

SO FIRST OF ALL, TALK ABOUT THIS TIME LINE HERE, AND GIVEN WHERE WE ARE IN THE TIMING OF GENERATIVE AI, EXPLOSI THAT WE HAVE SEEN OVER THE TECH GIANTS, WHAT DO YOU MAKE OF THIS MOVE? >> YOU KNOW, IT IS SO BIZARRE WHAT JUST HAPPENED, AND IT SEEMS

SO POORLY THOUGHT OUT BY OPEN AI’S BOARD, AND SO, YOU KNOW, ONE DAY THEY ANNNCETHAT, YOU KNOW, SAM ALTMAN’S FIRED, THEN THERE’S TALK ABOUT MAYBE HE’S COMING BACK, AND NOW HE’S HIRED BY MICROSOFT, WHICH, BY THE WAY, I THINK IS A BRILLIANT MOVE BY

MICROSOFT, YOU KNOW, I HAVE TO TAKE MY HAT OFF TO SATYA FOR MAKING THIS MOVE. IT’S ALMOST LIKE A PREEMPTIVE MOVE TO GET THE IP INTO MICROSOFT. >> AND SO WE HAVE BEEN SEEING SOME MEDIA REPORTS OF PARALLELS BETWEEN APPLE’S BOARD FIRING

STEVE JOBS BACK IN THE DAY IN 1985. DO YOU SEE THE SAME PARALLELS THAT OPEN AI COULD PERHAPS, WHEN YOU LOOK AT WHAT HAPPENED WITH SAM ALTMAN AND ANY HOPE HE MIGHT COME BACK VICTORIOUS IN THE COMING YEARS? >> I DON’T THINK THERE’S A — I

DON’T THINK THAT’S A GREAT PARALLEL, BECAUSE, YOU KNOW, I THINK THERE WAS SOME SORT OF FUNDAMENTAL DIFFERENCESETWEEN JOBS AND SCULLY, ABOUT THE DIRECTION THAT APPLE SHOULD TAKE. HERE IT’S A BIZARRE SORT OF GOVERNMENT VUSTRUCTURE TO BEGIN WITH. OPEN AI IS GOVERNED BY A BOARD,

A NONPROFIT ENTITY. AND, YOU KNOW,HERE SEVERAL SORT OF RUMORS, ONE IS THAT, YOU KNOW, ALTMAN WAS TALKING TO MIDDLE EASTERN INVESTOR, BASICALLY A MONEY RAISING GUY. MAYBE HE WAS DOING THAT. AND THEN THERE ARE ALSO CONCERNS ABOUT SAFETY THAT, YOU KNOW, MAYBE HE ISN’T CONCERNED ABOUT SAFETY.

ALL OF THESE THINGS SEEMED REALLY VAGUE AND SOMEWHAT WEIRD. IT’S LIKE, YOU KNOW, GOOGLE BACK IN THE DAY SAYING WE’RE GOING TO DO NO EVIL. BUSINESS CONSIDERATIONS FRTRUMP ANYTHING ELSE, AND AT THIS POINT I THINK, Y KNOW, CERTAINLY MICROSOFT SEES A NEED TO MOVE

QUICKLY, YOU KNOW, BUT IT’S UNCLEAR WHAT WAS GOING ON IN OPEN AI’S BOARD AND WHAT THEY WERE THINKING, BUT CLEARLY THIS WAS POORLY THOUGHT OUT. BECAUSE, YOU KNOW, THE IP RESIDES IN PEOPLE’S HEADS AND CA DO ABOUT THAT.AT THE BOARD

>> AND WE’RE STILL WAITING TO SEE THE FULL FALLOUT OF HOW MANY PEOPLE SAM MAY BE ABLE TO TAKE WITH HIM FROM OPEN AI AT THIS POINT. WHAT DOES THIS DO IN TERMS OF RESETTING THE LANDSCAPE HERE? NOW THAT SATYA HAS MADE THIS MOVE SMARTLY, DEFINITELY I

SHORT AMOUNT OF TIME, WHAT DOES THIS DO TO THE COMPETITION IN THIS SPACE? >> I THINK IT SORT OF FURTHER DISTANCES MICROSOFT FROM THE COMPETITION, RIGHT, THEY MADE A BRILLIANT MOVE BY INVESTING IN OPEN AI, YOU KNOW, 49%,OU KNOW, GIVEN THEM ACCESS TO THE

TECHNOLOGY, BUT THIS MOVE BY OPEN AI’S BOARD ACTUALLY GIVES THEM, YOU KNOW, CARTE BLANCHE TO THE IP. ALTMAN IS GOING TO GO THERE. BROCKMAN IS GOING TO GO THERE. I BET A BUNCH OF EMPLOYEES WILL GO THERE. THIS IS AN AREA WHERE RETIONIPSMATTER, AND PEOPLE

LIKE WORKING WITH PEOPLE THAT THEY HAVE HAD A GOOD HISTORY WITH SO, YEAH, EXPECT TO SEE A FAIR AMOUNT OF IP JUST SORT OF WALK OUT AND WALK INTO MICROSOFT, SO GREAT FOR MICROSOFT AND SORT OF FURTHER GETTING AHEAD OF THE COMPETION IN AI.

>> HEAVY IS THE HEAD THAT WEARS THE CROWN. NOW THAT MICROSOFT DOES HAVE SAM ALTMAN HERE, WHAT DOES THAT MEAN IN TERMS OF EXPECTATIONS. ALREADY WITH OPEN AI ON ITS OWN, THINGS WERE MOVING IN LEAPS AND BOUNDS FROM MICROSOFT. DOES THIS PUT A LOT MORE PRESSURE ON MICROFT,ND

JUDGING BY WHAT YOU HAVE SEEN, CAN THEY ACTUALLY LIVE UP TO IT? >> YOU KNOW, IT’S GOOD PRESSURE. YOU KNOW, IT’S ONE THING WHEN YOU HAVE PRESSURE AND YOU’RE BEHIND AND YOU DON’T HAVE THE BEST PEOPLE. IT’S ANOTHER THING WHEN YOU HAVE F PRESSURE AND THE BEST PEOPLE AND

YOU’RE AHEAD. THIS IS GOOD PRESSURE, MANNA FROM HEAVEN DROPPED INTO THEIR NAP. I CAN SEE MICROSOFT BEING HAPPY WITH WHAT’S PLAYING OUT OUT THERE. >> SO IF YOU’RE ANOTHER TECH COMPANY, AND YOU’RE SEEING TS QUICK RESHUFFLING HERE, HOW ARE YOU VIEWING IT?

HOW DO YOU BEGIN TO COMPETE? NOW THAT MICROSOFT HAS MADE ITSELF SO MUCH FURTHER AHEAD THAN THE OTHERS. >> WELL, THAT’S A GREAT QUESTION, AND I THINK, YOU KNOW, THE’S MOVES TOWARDS, YOU KNOW, OPEN SOURCE, LIKE A LOT OF PEOPLE FEEL LIKE AI SHOULD BE

OPEN SOURCE, SO IN THE LONGER TERM, WE WILL SEE COMPETITION, AND WE WILL SEE MORE PRESSURE TOWARDS OPEN SOURCE, WHEN IT COMES TO AI SAFETY, SO, YOU KNOW, REMAINS TO BE SEEN WHETHER MICROSOFT ACTUALLY EMBRACES OPEN SOURCE WHEN IT COMES TO AI, LIKE

THE WAY THEY HAVE SORT OF IN GENERAL WHICH IS WHAT SATYA DID. HE MOVED MICROSOFT AWAY FROM TOPEN SOURCE, YOU KNOW, CLOUD,E SO, YOU KNOW, I THINK IT WILL BE INTERESTING TO SEE HOW THEY MOVE NOW WHEN THEY HAVE COMPLETE CONTROL OVER THE IP, TO WHAT

EXTENT THEY OPEN IT UP. ANYONE’S GUESS AT THIS POINT. HOW THEY WILL, AND HOW LONG. >> AND GIVEN THE CLOUDINESS SURROUNDING ALTMAN’S EXIT FROM OPEN AI, DOES THAT DO DAMAGE TO BRAND MICROSOFT, AND WHAT IS LEFT WITHOUT SAM ALTMAN. >> FOR ONE THING, OPEN AI WILL

BE VISITING ITS GOVERNANCE STRUCTURE, WHICH IS KIND OF MURKY. I DON’T THINK PEOPLE ARE AWARE TO THE EXTENT TO WHICH IT’S CON BOARD, MANY OF WHOM PEOPLE DON’T KNOW, RIGHT, SO THEY HAVE TREMENDOUS POWER, AND I THINK WHAT THIS MOVE HAS BROUGHT TO

LIGHT IS SORT OF, YOU KNOW, THE FACT THAT THE GOVERNANCE STRUCTURE NEEDS TO BE REVISITED. I SUSPECT THAT’S WHAT THEY’LL DO IN THE WEEKS AHEAD. >> HAS BEEN A BIG WAKE UP CALL INDEED. THANK YOU FOR BREAKING THIS DOWN. ST OTHE DCAST, “BRAVE NEW

WORLD,” THANK YOU SO MUCH FOR JOINING US THIS MORNING. >>> WE’RE HEADING EINTO ABBREVIATED WEEK OF TRADING. HEAVY WEIGHT NVIDIA’S EARNINGS DUE TUESDAY AFTER THE BELL COULD BE A MAKE OR BREAK MOMENT FOR THE RALLY THIS FAR. AND INVESTORS AROUND FED POLICY

WILL HOPEFULLY GET CLARITY FROM LAST MEETING’S MINUTES RELEASED ON TUESDAY. WHAT CAN WE EXPECT FROM THE MARKET HEADING INTO THE HOLIDAY WEEK AND BEYOND. JOINING ME IS ED PERKS FRANKLIN’S CHIEF INVESTMENT OFFICER. THANK YOU F JOING US THIS MORNING. SETTING ASIDE WHAT WE HAVE SEEN

FROM OPEN AI, THIS MASSIVE SHUFFLE IN TECH OVER THE PAST WEEKEND, HOW DOES THIS SET THE SCENE FOR WHAT WE CAN EXPECT THIS WEEK. >> YEAH, WELL, I MEAN, FIRST OF ALL, WE CLEARLY HAVE A MUCH QUIETER HOLIDAYMPACTED WEEK. TO YOUR POINT, THOUGH, THERE ARE

SOME NOTABLE EVENTS HAPPENING IN MARKETS. WE SAW ONE, YOU KNOW, CLEARLY OVER THE WEEKEND AS WAS DISCUSSED. I THINK THE BAR IS HIGH, THOUGH, FOR COMPANIES LIKE NVIDIA, MICROSOFT, YOU KNOW, AS WE STEP BACK AND LOOK AT, YOU KNOW, T VALUATIONS OF THE SECTOR.

CLEARLY THEY HAVE BEEN RESPONSIBLE FOR THE MOVE IN EQUITY MARKETS, IF YOU, YOU KNOW, LOOK AT THE AVERAGE STOCK. LOOK AT A LOT OF OTHER SECTORS, A VERY DIFFERENT PICTURE EMERGES, SO, YOU KNOW, I THINK THESE COMPANIES HAVE TO CONTINUE TO TELL, YOU OW, A PRETTY GOOD

STORY AND REALLY DELIVER ON THE HIGH EXPECTATIONS THAT EXIST IN THE MARKET TODAY FOR THEM. >> AND BRINGING INTO THAT, THEN, THE MAGNIFICENT SEVEN, WHICH OBVIOUSLY WE’RE RESPONSIBLE FOR MOST OF THE RALLY WE HAVE SEEN SO FAR THIS YEAR. SOME OF THAT FILTERING OUT TO

OTHER SECTORS AS WELL. WHAT ARE YOUR ESTIMATES FOR HOW YOU SEE THE MAGNIFICENT SEVEN FARING FROM HERE? >> YEAH, WE THINK THEY’RE REALLY KIND OF TOWARDS THE UPPER END OF THE RANGE, YOU KNOW, IN THE NEAR TERM. SO WE DON’T EXPECT A LOT OF HARDSHIP FROM THEM.

INHE SOND HALF OF THIS YEAR. IT IT’S A TALE OF TWO HALVES TO US IN THE EQUITY MARKET. WITH THE TRAJECTRY OF THE ECONOMY HERE, OUR EXPECTATIONS, AT LEAST, NEXT, YOU KNOW, TWO TO THREE KWARQUARTERS IN PARTICULA WE’LL SEE A LITTLE BIT OF A

MACRO SLOW DO,HE FED’S HIGHER FOR LONGER, THE OTHER FACTORS THAT HAVE CONTRIBUTED TO SOME OF THE FINANCIAL TIGHTENING THAT WE’RE SEEING. YOU KNOW, WE THINK IT’S VERY MUCH A TIME FOR THE MAGNIFICENT SEVEN TO, ONCE AGAIN, DELIVER ON THE HIGH EXPECTATIONS, AND MAYBE

TO GROW INTO A LITTLE BIT OF THE VALUATIONS THAT JUST, YOU KNOW, ABSOLUTELY SURGED IN 2023. >> AND I KNOW YOU MENTIONED SOME OF PERHAPS A SLOWDOWN HERE. COULD WE BE HEADING INTO CORRECTION TERRITORY ONCE THE MARKET SETTLES INTO THE FED’S EFFORTS AND TIGENIN CRET

CONDITIONS, SHOWING UP MORE SO NEXT YEAR? >> YEAH, AND YOU KNOW, THAT’S WHERE WE REALLY ARE FIRM BELIEVERS THAT A LOT OF TIGHTENING THAT HAPPENED DIDN’T HIT UNTIL EARLY THIS YEAR. THEN WE HAD A VERY SIGNIFICANT PAUSE IN THE RESPONSE TO THE

BANKING STRAINS WE FELTN MAR WAS ACTUALLY INJECTING A LOT OF LIQUIDITY BOTH FROM THE FED, AS WELL AS FROM THE TREASURY. YOU KNOW, BY JUNE, JULY, THAT STARTED TO UNWIND AGAIN, AND WE RESUMED THIS MOVE TO RESTRICTIVE AND SO, YOU KNOW, WE THINK THIS LAGGED EFFECTIVE METAR POLY

TIGHTENING IS REALLY HITTING THE ECONOMY NOW HERE IN THE NEXT COUPLE OF QUARTERS. SO, YOU KNOW, WE WOULDN’T BE SURPRISED IF THE RANGE THAT’S BEEN ESTABLISHED ONCE AGAIN ON SOMETHING LIKE THE S&P 500, BECAUSE OF THE MAGNIFICENT SEVEN. WE FEEL LIKE WE’RE AT THE UPPER

END OF THE RANGE ITHE NEA TERM, AND WE COULD SEE SOME, YOU KNOW, SOME RENEWED VOLATILITY. OUR VIEW IS THAT MARKETS PRICE IN CLOSE TO A GOLDILOCKS SCENARIO RIGHT NOW. WHETHER WE LOOK AT THE EQUITY MARKETS, THE BOND MARKET, THE EXPECTATIONS FOR INTEREST RATE

CUTS IN 2024, YOU KNOW, REALLY ARE FOCUSED ON, LOOK, DISINFLATION IS GOING TO CONTINUE. THE ECONOMY WILL GROW, BUT WON’T FALL INTO A RECESSION, AND THE LABOR MARKET WILL WEAKEN BUT NOT OVERLY SOW. IT’S A ROS SCENARIO. ANY PRESSURE ON THE DOWNSIDE,

AND YOU COULD SEE MARKETS REACT A BIT MORE NEGATIVELY, CERTAINLY ON THE EQUITIES MARKET. >> AND AS YOU MENTIONED, THE BOND MARKET WHICH OF COURSE HAVE BEEN ON A TEAR, SOME PULLBACK, THOUGH, IN RECENT WEEKS HERE. IS IT TOO LATE TO GET INTO THE

BOND MARKET OR HOW ARE YOU PLAYING THE BOND MARKET RIGHT NOW? >> WE DON’T THINK IT IS, AS WE LOOK AT PARTICULARLY HIGHER QUALITY INVESTMENT CORPORATE BONDS, STILL VERY ATTRACTIVE YIELDS AND THE VERY HIVE 5s, LOW 6% RANGE FOR SECURITIES LIKE THAT.

YOU DON’T NEED TO TAKE A TREMENDOUS AMOUNT OF DURATION. WE THINK YOU CAN LOOK IN MORE OF THE INTERMEDIATE PART OF MATURITIES. WE LIKE THINGS IN SIX, SEVEN, EIGHT-YEAR MATURITIES, TRADING AT DISCOUNTS TO PAR VALUE. THE MOST ATTRACTIVE YIELDS WE HAVE SEEN IN SEVERAL-DAY DECADE

THAT ASSET CLASS. IF WE GET ANOTHER SHOT IN THE TEN-YEAR TREASURY UP TO 5%, WE WOULD BE VERY FOCUSED ON TAKING ADVANTAGE OF THAT OPPORTUNITY. QUITE FRANKLY, WE DON’T THINK WE’RE GOING TO GET IT, AND LOOKING AT THE ASSET CLASS WHERE IT IS TODAY, WE FIND IT

ATTRACTIVE. >> OF COURSE COMING TO THE TAIL END OF EARNINGS SEASON, IT’S BEEN INTERESTING. I FEEL LIKE THE EXPECTATIONS WERE RELATIVELY LOW. WHAT’S YOUR TAKE AWAY FROM WHERE WE’RE COMING OUT OF THIS EARNINGS SEASON, ESPECIALLY A LOT OF THE WARNINGS WE HEARD

ABOUT THE SLOWDOWN IN THE NSUM. . YEAH, THERE’S A LOT OF AREAS THAT I THINK WE CAN POINT TO IN THE EQUITY MARKET THAT ARE TIED MORE TO THE CONSUMER WHERE, YOU KNOW, THE TREND THAT WE HAVE SEEN THE LAST THREE TO FOUR

QUARTERS, WHICH INITIALLY STARTED AS A CONTRIBUTION TO THE PROFITABILITY GROWTH, COMING FROM BOTH VOLUMES AND PRICING. AS WE MOVE FORWARD THROUGH 2023, IT BECAME MORE AND MORE DIFFICULT FOR MANY COMPANIES TO DELIVER ON VOLUME GROWTH, AND THEY REALLY HAVE LEANED MUCH

HARDER ON THE ABILITY TO PASS PRICING ON TO KCUSTOMERS. WE THINK THAT’S GETTING LONG IN THE TOOTH, AS WE MOVE INTO 2024, THE EXPECTATION IS THE GROWTH SHOULD BE HARDER TO FIND, ON THE UNIT VOLUME SIDE BECAUSE OF THE MACRO SLOWDOWN AND THE ABILITY

TO PUSH PRICE INCREASES THROUGH, IS GETTING MORE AND MORE DIFFICULT FOR MANY COMPANIES. >> CERTAINLY WILL HAVE TO BE A LOT MORE DISCERNING HEADING INTO 2024. APPRECIATE YOU JOINING US THIS MORNING. ED PERKS, FRANKLIN INCOME INVESTORS, CHIEF INVESTMENT OFFICER, THANK YOU SO MUCH.

>>> COMING UP, TIKTOK, OH, MY, FIND OUT HOW THEY’RE TAKING ONLINE RETAIL BY STORM NEXT. >>> RETAIL RESULTS ARE F FROM OVER. WE HEARD FROM THE BIG BOX STORES LAST WEEK. NOW WE’LL GET INSIGHT INTO SPECIALTY RETAILERS. HERE’S WHAT WE CAN EXPECT AS YAHOO! FINANCE REPORTER JOSH

SCHAFER. WHAT’S ON YOUR RADAR FOR THIS WEEK? >> YEAH, RACHELLE, WE’VE GOT A HOLIDAY SHORT WEEK WITH THANKSGIVING ON THURSDAY, AND HALF A MART DAY ON FRIDAY. AS YOU CAN SEE HERE, QUITE A BIT TO GO THROUGH BEFORE WE GET TO THAT TURKEY.

FIRST STARTING WITH TUESDAY IS REALLY THE BIG DAY OF EARNINGS THIS WEEK. BEST BUY, DICK’S SPORTING GOODS, ANDOWE’ LET’S FOCUS ON RETAIL. I WANT TO LOOK AT THE STOCKS ON RETAIL SPACE. A FIVE-DAY LOOK AT RETAIL AND THE STOCKS THAT GAINED THE MOST. THE WINNERS FROM LAST WEEK, GAP,

UP ALMOST 40%. MACY’S UP ALMOST 40%, AND THE COANIE TAKE THESE BIG JUMPS UP IN THE LAST WEEK AFTER THEY REPORTED WAS REALLY A LOT ON MARGINS. IT WAS NOT NECESSARILY ABOUT THESE COMPANIES HAVING BLOW OUT SALES. WE HEARD A LOT ABOUT DEMAND FROM

COMPANIES LIKE WALMAR MAYBE NOT BEING AS STRONG AS ONE WOULD HOPE. IT’S BEEN A STORY OF MARGINS. CAN COMPANIES GET MARGINS BACK INTO A PLACE THEY’RE COMFORTABLE. THAT’S WHAT THEY’RE FOCUSSING ON THIS WEEK. YOU REMEMBER LAST QUARTER, DICK’S THEY WARNED ABOUT RETAIL CRIME.

THEY DIDN’T WANT TO HAVE GOOD MARGINS. BIG JUMP DOWN FOR THE SCKS THERE. WILL THAT COME UP IN THE CALL TOMORROW, SOMETHING WE’RE LOOKING FOR, AND YOU TAKE A LOOK AT BEST BUY, A COMPANY OBVIOUSLY SELLS CONSUMER ELECTRONICS. THEY HAVE BEEN STRUGGLING WITH DEMAND IN THE CONSUMER

ELECTRONICS SPACE. IT’S DISCRETIONARY. WHAT THEY SAY ABOUT DEMAND IS ONE THING I’M LOOKINGOR. A FRIENDLY REMINDER, TOO, OF COURSE, WHEN WE THINK ABOUT THESE COMPANIES, AND YOU THINK ABOUT HOW THESE STOCKS MOVE, TAKE A LOOK AT MACY’S. YOU SAW THE BIG JUMP, YEAR TO

DATE, IT’S DOWN 28%. SO BE THINKING ABOUT HOW THESE COMPANIES STOCKS HAVE PERFORMED COMING INTO THE REPORT, AND THAT MIGHT DICTATE WHAT WE SEE AS WELL. WE KNOW SOME OF THE BEATEN DOWN STOCKS HAVE BEEN WHERE PEOPLE WERE BUYING OVER THE LAST WEEK.

>> YEAH, THAT CONTACT IS GOING TO BE IMPORTANT, ESPECIALLY AS WE WATCH FOR THE STOCK MOVES AFTER THE EARNINGS REPORT. WE’LL ALSO HEAR FROM NVIDIA THIS WEEK. HOW IMPORTANT ARE THESE RESULTS? >> RACHELLE, YOU REALLY CAN’T PLAY UP OR CAN’T OVERPLAY HOW

BIG THIS COULD BE FOR THE MARKET OVERALL. WE TAKE A LOOK AT THE NVIDIA CHART THIS YEAR. OBVIOUSLY THE STOCK HAS BEEN RIPPING. 240%, AS WE REALLY GRABBED AHOLD OF THE AI NARRATIVE, AND YOU SEE THE LITTLE BLIPS OR BIG BLIPS, BIG BUMPS UP IN MAY RECENTLY

WHERE WE WENT SORT OF SIDEWAYS HERE AND A LITTLE BIT UP WAS ALSO WHEN THE MARKET WENT SIDEWAYS AND A LITTLE BIT UP. NVIDIA HAS DRIVEN THE STOCK MAET TS YE. I’LL SHOW YOU THE NASDAQ TO GIVE YOU AN IDEA OF WHAT I WAS

TALKING ABOUT THERE, IF I CAN GET IT UP, AND MAYBE I CAN’T. SO THAT’S OKAY. BUT OVERALL, WHEN YOU TAKE A LOOK SORT OF JUST AT HOW THE MARKET HAS REACTED THIS YEAR, IT’S REALLY FOLLOWED NVIDIA’S CASE. YOU SEE THE JUMP UP IN MAY, SEE

IT GO RELATIVELY FLAT, AND THEN NVIDIA THAT BE CLOSING IN NEAR AN ALL TIME HIGH. NVIDIA HAS MOVED, AS THE MAGNIFICENT 7 STOCKS HAVE MOVED, THE STOCK MARKET HAS MOVED. WE’RE LOOKING TO SEE IF THEY MEET THE HIGH EXPECTATIONS COME >> AND WE KNOW THOSE

EXPECTATIONS ARE HIGH INDEED. APPRECIATE YOU BREAKING THAT DOWN FOR US, OUR VERY OWN JOSH SCHAFER. >>> ARE U.S. CONSUMERS FLOCKING TO eCOMMERCE FOR DEALS THIS HOLIDAY SEASON. TIKK, HOLDS FROM TIMU HAVE PICKED UP. CONSUMERS BOAST ABOUT GETTING HUGE DEALS ON PRODUCTS THAT THEY

MAY NORMALLY FIND ON AMEAZON FO HIGHER PRICES. BACKPACKS FOR $3, AND SMART WATCHES FOR $10. AS THE CONSUMER GETS MORE CAUTIOUS, COULD AMAZON AND WALMART BE LOSING SHARES TO THE LOW COST CHINESE RETAILERS. LET’S BRING IN REUTERS REPORT, ARIANA MACKLEMORE FOR MORE ON THIS.

GIVE US CONTEXT HERE. HOW ARE THEY DOING MARKET SHARE WISE, CHINESE RETAILERS VERSUS THE AMAZON AND WALMARTS? >> THEY ARE GREAT FOR STOCKING STUFFERS, THINK TOYS AND SMALLER ELECTRONICS, THINGS THAT ARE UNDER $20. BUT FOR AMAZON AND WALMART SHOPPERS, THEY’RE LKING FOR TVs. THEY’RE LOOKING FOR iPHONES.

THEY’RE LOOKING FOR TABLETS. SO WHEN IT COMES TO COMPETITION BETWEEN THE TWO, THOSE CONSUMERS ARE LOOKING FOR TOTALLY DIFFERENT THINGS. AT THE END OF THE WEEK, WE HAVE BLACK FRIDAY, THERE’S A LOT MORE TIME BETWEEN GETTING YOUR PRESENTS AND GETTING THEM UNDER THE TREE.

NOW, FOR THE LAST MINUTE SHOPPERS, YOU’RE GOING TO SEE THOSE SHOPPERS GO TO AMAZON BECAUSE, YOU KNOW, THEY’RE BANKING ON THAT ONE-DAY AND TWO-DAY SHIPPING, EVEN THOUGH SHEIN AND TEMU IT’S ALL ABOUT GIVE AND TAKE. >> ESPECIALLY IF YOU LEFT

SOMETHING TO THE LAST MINUTE. WE WERE SHOWING TIKTOK CLIPS THERE. TALK ABOUT THE MARKETING AROUND THE HOLIDAYS WHEN IT COMES TO HO HAVE BEEN. >> THEY KNOW IT’S TEENAGERS SO YOU’LL SEE THEIR MARKETING ON TIKTOK, YOU’LL SEE THEIR MARKETING ON SOCIAL MEDIA.

SHEIN HAS MADE A PUSH FOR MARKETING, YOUOW, IN TIMES SQUARE. THEY DID A POP UP EARLIER IN NOVEMBER, AND SHEIN IS KNOWN FOR DOING POP UPS ACROSS THE COUNTRY. MARKETING IS A BIG PLAY. WHEN IT COMES TO WALMART AND AMAZON, YOU’LL SEE A LOT OF

WALMART MARKETING, YOU KNOW, ON T TV, ON YOUR STREAMING CHANNELS. AMAZON HAS BEEN HUGE ON MARKETING IN ITS APP AND STREAMING PLATFORM. AGAIN, EACH PLATFORM KNOWS WHO THEIR AUDIENCE IS, AND WHEN IT COMES TO TEMU AND SHEIN, THEY KNOW YOUNGER CONSUMERS DON’T

HAVE AS MUCH MONEY AS THEI PARESE MEETING THEIR CUSTOMERS. >> AND I’M CERTAINLY GETTING LOTS OF LINKS FROM MY DAUGHTER ABOUT THINGS SHE WANTS FROM SHEIN, TEMU. WE’LL SEE, SLOW YOUR ROLL A LITTLE. I WANT TO TALK ABOUT SOMETHING WE’VE SEEN, WHICH IS SHEIN, NOW

‘RE SEEING IT IN FOREVER 21 STORES. TALK ABOUT THE STRATEGY AND HOW IT HELPS FOREVER 21 AS THEY CAPITALIZE ON THE MOMENTUM FROM SHEIN AS WELL. >> I THINK THAT’S AN INTERESTING PLAY, RIGHT? WE HAVEN’T HEARD ANYTHING FM FOREVER 21 FOR YEARS.

IT WAS HUGE WHEN I WAS IN COLLEGE, HUGE WHEN I WAS IN HIGH SCHOOL, BUT AFTER THAT, YOU DIDN’T REALLY HEAR ANYTHING ABOUT IT. NOW THAT THEY HAVE THE PARTNERSHIP WITH SHEIN AND GETTING MORE EYES ON THE PLATFORM AND IN THE STORES,

THEY’RE HOPING TO GET A BOOST FROM THIS PARTNERSHIP. NOW, IT RAINS TO BE SEEN ON WHETHER THIS IS GOING TO WORK OR NOT, RIGHT? YOU ALSO SEE SHEIN ACQUIRING MISGUIDED, WHICH WAS ALSO VERY POPULAR, YOU KNOW, IN 2013, 2014, AND SO YOU SEE SHEIN

TAKING ALL OF THIS MART SHARE FROM THE FAST FASHION COMPANIES, IT’S GOING TO BE INTERESTING TO SEE, YOU KNOW, IF GEN Z PIVOTS TO THE FOREVER 21s OR MISGUIDEDS. I THINK SHEIN IS GOING TO HAVE A LONG WAY TO GO IF IT WANTS TO BE.

BETWEEN JANUARY AND SEPTEMBER, THEY WERE ABLE TO RAKE IN $24 MILLION. FOR AMAZON, THEIR ONLINE REVENUE SALES WERE 53 BILLION. SHEIN HAS A LONG WAY TO GO IF IT WANTS TO BEAT THE LIKES OF AZON. >> I WANT TO ASK ABOUT AMAZON EXCLUDEING TEMU FROM COMPETITIVE PRICE CHECKS.

TALK ABOUT THE STRATEGY THERE. A LOT OF PEOPLE ARE WONDERING ARE THE STANDARDS THE SAME, SHOULD THEY BE INCLUDED IN THE ALGORITHM THE SAME WAY? >> SO FOR AMAZON, THEY ARE WORRIED ABOUT THE QUALITY OF GOODS. THEY’RE WORRIED ABOUT COUNTERFEIT GOODS, AND FOR THEM,

THEIR POSITION IS THAT THEY DON’T WANT TO COMPARE THEIR MERCHANDISE TO SOMETHING THAT MAY NOT BE UP TO PAR FOR THEIR STANDARDS. NOW, IT’S UP TO THE CONSUMER TO SAY IF THAT’S FAIR OR NOT. BUT I THINK FOR AMAZON, THAT’S

GOING TO KEEP TA LOT OF THEIR MERCHANDISE ON THE PLATFORM WITHOUT HAVING TO WORRY ABOUT REMOVING SOME OF THEIR MARKETPLACE SELLERS WHO MAY BE GETTING THEIR PRODUCTS COMPARED TO THE TEMU AND THE SHEIN. >> AT THE END OF THE DAY, YOU

HAVE TO CHECK THE REVIEWS. NO MATTER WHERE YOU’RE SHOPPING, IT’S THE REVIEWS THAT TELL YOU WHAT YOU’RE GETTING FOR YOUR NONE. APPRECIATE YOU TAKING THE TIME TO JOIN US. THANK YOU SO MUCH. >> THANK YOU. >>> ALL RIGHT. COMING UP, OIL PRICES SNAP THEIR LOSING STREAK.

MICHELLE SNYDER BREAKS DOWN THE RECENT OIL MOVES. >>> PLUS, DO YOU NEED A SMALLER TURKEY? HOW OZEMPIC AND OTHER WEIGHT LOSS DRUGS COULD IMPACT YOUR THANKSGIVING DINNER, NEXT. >>> OIL PRICES ARE EDGING HIGHER AFTER FOUR-WEEK STREAK OF LOSSES THIS CES AHEAD OF AN OPEC PLUS MEETING.

WILL MEMBERS INCLUDING SAUDI ARABIA AND RUSSIA COMMIT TO FURTHER SUPPLY CUTS? ACCORDING TO A REPORT FROM REUTERS, THE CARTEL’S MEMBERS ARE CONSIDERING IT. WHAT CAN WE EXPECT FROM THE OIL MARKETS AHEAD OF THE MEETING. FOR MORE ON THIS, MICHELLE SNYDER, MARKETGAUGE.COM CHIEF STRATEGIST IS HERE.

WE’RE IN AN INTERESTING TIME HERE. I KNOW YOUR LAST NOTE, YOU HAD OIL THE NEW GOLD BUY, BUY WHEN THERE’S BLOOD IN THE STREET. DOES THAT STILL HOLD AHEAD OF THIS OPEC PLUS MEETING? >> WELL, CERTAINLY IT WAS THE CASE LAST WE, RACHELLE, WHEN

EVERYBODY GOT SO NEGATIVE ON THE OIL BECAUSE THERE WAS A 20% DROP, AND I THINK THAT’S WHAT’S SO DANGEROUS WHEN YOU TALK ABOUT ANY COMMODITY. PARTICULARLY OVER THE LAST FEW YEARS WHEN COMMODITIES HAVE BECOME ALL THE RAGE. IT’S NOT UNDERSTANDING THE VOLATILITY THAT COMMODITIES

BRING TO THE TABLE, AND 20% CORRECTIONS ARE NOT UNUSUAL. VOLATILITY IS NOT UNUSUAL, SO THE REASON I MENTIONED IT AS THE NEW GOLD IS BECAUSE WHAT WE HAVE SEEN WITH GOLD RECENTLY WAS ALSO A HUGE DROP, 20, 25, EVERYONE LEFT IT FOR DAD, AND THERE’S

BLOOD IN THE STREETS, GOLD CONTINUES TODAY AND GET THEM BIG. THE SAME EXACT THING HAPPENED. THERE’S FUNDAMENTAL REASONS FOR WHY THE OIL IS UP HERE, WHAT WE DON’T KNOW YET IS THE SAME FUNDAMENTAL REASONS WE GET UP OVER TO 80, $90 A BARREL.

WE COULD BE RANGING RIGHT HERE! AND WHAT WOULD THAT RANGE LOOK LIKE. AS WE LOOK AT WTI, CURRENTLY AT $77.86 A BARREL. WE WERE LOOKING AT EXPECTATIONS OF 100 TO 1$150 A BARREL, HOW D YOU SEE THE OIL MARKET PLAYING OUT FROM HERE? >> THERE’S SO MANY FACTORS.

LET’S TALK ABOUT IT. YOU MENTIONED OPEC PLUS AT THE BEGINNING, THAT’S GOING TO BE A MARKET. THERE’S BRICKS, STILL A LOT OF TALK ABOUT PRICING OIL AND SOMETHING ELSE OTHER THAN U.S. CURRENCY. THATF COSE WOULD HAVE ITS OWN IMPLICATION. THERE WAS OBVIOUSLY STRESS

BECAUSE PEOPLE THOUGHT LAST WEEK WE WERE HEADING INTO A RECESSION. LABOR GOING DOWN, HOUSING GOING DOWN. SOME OF THE MANUFACTURING NUMBERS NOT SHOWING SO ROBUST. PEOPLE WERE SAYING THE DEMAND IS DONE, AND OF COURSE GAS PRICES VE COM DOWN A LOT, TOO. THAT’S ALSO BEEN A WEATHER

FACTOR, AND HUGE SUPPLY THERE, BUT THE SUPPLY IN OIL IS STILL IFFY, BESIDES THE OPEC. WE ALSO HAVE THE FLOATING STORAGE RATES, AND IT’S HOW MUCH CRUDE IS ACTUALLY ON FLOATING STORAGES THROUGHOUT THE SEAS. IT’S AT A 2 AND 3 QUARTER YEAR LOW.

ONE OF THE MOST IMPORTANT THING TO KEEP YOUR MIND ON IS THE SPR. WHAT’S RIGHT NOW, THE U.S. HAS NOT NECESSARILY REFILLED WHAT THEY WERE SUPPOSED TO. THEY WERE LOONG AT $70 A BARREL. IT GOT DOWN TO 72, WHICH IS WHY I THOUGHT MY TURN.

THEY’RE LOOKING AT SOUR CRUDE. PEOPLE ARE TALKING ABOUT WTI AND SWEET CRUDE, BUT SOUR CRUDE IS ESSEIAL HEANG OIL AND DIESEL. THERE ISN’T A LOT OF THAT. WE HAVE THESE OUTSIDE OF THE GEOPOLITICAL RISK, OTHER FACTORS THAT COULD KEEP OIL AT LEAST

TRADING I’D SAY ABOVE 70 AND MAYBE WE CAN GET TO 100 IF SOMETHING MORE CATASTROPHIC HAPPENS, BUT I’M NOT LOOKING FOR BIG MOVES THERE. TO ME, THE FUTURE OF INFLATION IS COMING MORE FROM FOOD. >> SO THEN FOR PEOPLE WHO ARE INTERESTED IN INVESTING IN OIL,

WHAT MINDSET SHOULD THEY HAVE BECAUSE YOU MENTIONED THE VOLATILITY AND EXPECTATIONS THERE. >> IT’S KIND OF SIMILAR TO HOW YOU WANT TO INVEST,MAYBE, IN GOLD, AND YOU WANT TO HAVE A PIECE OF EXPOSURE TO THE ENERGY MARKETS AND THE OIL MARKETS WITH THIS DIP.

IT GAVE A GREAT BUY OPPORTUNITY WITH A LOT SMALLER RISK, AND I WOULDN’T NECESSARILY THINK THAT IT’S THE GREATEST PLACE TO BE. WE REALLY HAVE PIVOTED MORE INTO THE WLE FOOD SPACE AND SOME INDUSTRIAL METALS. WE HAVE ACTUALLY A POSITION IN OIL RIGHT NOW.

IT’S A RELATIVELY SMALL POSITION, AND WE HAVE A STOP. THAT I THINK HOST YOU HAVE TO PLAY IT. I THINK IF THE OIL BREAKS DOWN BE THE CAUTION.REL,HAT ULD IF IT HOLDS HERE, RIGHT NOW IT’S AT 77. IT’S A LITTLE BIT RICH TO THE

RISK VERSUS THE REWARD, BUT YOU GET ANY KIND OF DIP, CLOSER TO 74, 75, I WOULD TAKE A SHOT AND LOOK AT WHAT HAPPENS AT 80 AND 80 TO 90 CAN HAPPEN VERY QUICKLY. >> AND SOME OF THE COMMODITIES YOU LIKE IN THE FOOD SPACE AND

HAVE BEEN TRACKING WHAT WE HAVE SEEN WITH COCOA PRICES, ESPECIALLY, WHAT ARE SOME OF THE ONES THAT YOU THINK PEOPLE AREN’T PAYING ENOUGH ATTENTION TO. >> SO YOU MENTIONED COCOA, THINK ABOUT THAT. THERE’S BEEN A LOT OF COMPARISONSBOUT THE 70s AND CURRENTLY, AND THAT’S A GREAT

CLASSIC EXAMPLE OF ONE. SUGAR, PEOPLE, THERE’S REPORTS ABOUT SUGAR OUT THERE, BUT TO ME SUGAR IS STILL THE KEY BAROMETER OF WHAT WE CAN EXPECT WITH INFLATION GOING FORWARD. AND SO RIG NOW, SUGAR HAS BEEN TRADING OVER 27 CENTS A POUND, AND IT’S NOT TAKEN OUT ITS

RECENTLY HIGHS, KIND OF WHERE IT’S TRADING AT RIGHT NOW. I THINK IF THAT STARTS TO BREAK OUT, THAT WOULD GIVE US ANOTHER OPPORTUNITY IF YOU, AGAIN, FOLLOW THE 70s. 78, 79. SUGAR UP AT 49 CENTS A POUND AND SOYBEANS ARE ANOTHER ONE.

WE HAD A GOOD CROP IN THE U.S. ARGENTINA AND BRAZIL ARE HAVING TREMENDOUS DROUGHT. WITH A NEW PRESIDENT IN ARGENTINA, IT’S GOING TO BE INTERESTING TO SEE HOW MUCH HE MOVE THE ECONOMY, AND SO I THINK SOY BEANS AND THE WHOLE DBA AGRICULTURAL ETF, THOSE ARE

THE AREAS I HAVE BEEN LOOKING AT MOSTLY. >> APPRECIATE YOUR INSIGHTINGS — INSIGHTS AS ALWAYS. MICHELLE SNER, THANK YOU SO MUCH, AND HAPPY HOLIDAYS. >> HAPPY HOLIDAYS, RACHELLE. >> THANK YOU. >>> THANKSGIVING IS IN JUST A COUPLE OF DAYS, AND ONE OF THE

BIGGEST EATING DAYS IN THE UNITED STATES BUT WITH THE RISING POPULARITY OF WEIGHT LOSS DRUGS IS A LIGHTER HOLIDAY SEASON TOOME? THE USE OF GLP 1s LIKE O ASS — OZEMPIC AND WEGOVY IS SKYROCKETING. NEARLY HALF OF THE PEOPLE INTERESTED IN THE DRUGS, THAT’S

ACCORDING TO ATFS POLL. THE EXPLOSION OF WEIGHT LOSS DRUGS ARE LEADING FOOD COMPANIES TO ADDRESS THEM ON EARNINGS CALLS, AND IT’S NOT ONLY FOOD FOCUSED COMPANIES, THE HEALTH INDUSTRY SEEING A RIPPLE EFFECT IN THE CONDITIONS THE DRUG CAN TREAT AND CURE. THIS IS A GRONG INDUSTRY,

ESTIMATED TO MAKE ABOUT $100 BILLION IN SALES BY 2030. WILL THIS THANKSGIVING BE THE CANARY IN THE COAL MINE FOR HOW AMERICANS’ EATING HABITS ARE CHANGING BECAUSE OF THE WEIGHT LOSS DRUGS OR IS IT JUST A WHOLE LOT OF STUFFING. WE SHALL SEE.

>>> COMING UP, CRUISE CONTROL NO MORE. THE CEO OF GMs CRUISE STEPS DOWN: WHAT IT MEANS FOR THE ROBO TAXI INDUSTRY NEXT. >>> SHARES OF EDUCATION TECHNOLOGY COMPANY CHEG FALLING DOWNGRADE, DOWN ALMOST 7% SO Y FAR, DOWNLOADING THE STOCK FROM UNDER WEIGHT TO EQUAL WEIGHT.

JOSH BARE, THE ANALYST BEHIND THE CALL SAW WEAKER WEB TRENDS, AND SAW COMPETITION FROM GENERATIVE AI IN THE LONGER TERM. ALSO CUT HIS PRICE TARGET TO $9 FROM $10. ULTIMATELY THE ANALYST BELIEVES THE STOCK IS CREATING AN UNATTRACTIVE RISK-REWARD SCENARIO FOR SHAREHOLDERS AND

SAYS THE FOURTH QUARTER GUIDANCE EXPECTATIONS ARE TOO HIGH. THE STOCK BEING PUNISHED TODAY AS A RESULT. >> CRUE CEO RESIGNING FROM HIS ROLE OVER THE WEEKEND. THIS COMES WEEKS AFTER THE COMPANY, A SUBSIDIARY OF GM SUSPENDS ITS AUTONOMOUS OPERATIONS AFTER SEVERAL TRAFFIC INCIDENTS, INCOMING AN ACCIDENT

ARE A VEHICLE DRAGGED A WOMAN MORE THAN 20 FEET. YAHOO! FINANCE REPORTER PRAS SUBRAMANIAN IS HERE TO BREAK ALL OF THIS DOWN. >> SO KYLE VAUGT TWEETED OUT THAT HE WAS LEAVING THE COMPANY, YOU KNOW, AS FAR AS CRUISE HALTING ITS AUTONOMOUS OPERATIONS ACROSS THE COUNTRY,

AND RECALLING VEHICLES FOR A SAFETY ISE, A HAD ITS PERMIT REVOKED IN CALIFORNIA ALL BASED ON THAT ONE MAJOR ACCIDENT THERE IN SAN FRANCISCO WHERE A WOMAN WAS HIT BY A HIT-AND-RUN DRIVER, LAUNCHED INTO THE INTERSECTION AND THE CRUISE ROBOTAXI, HIT HER, RAN OVER HER AND DRAGGED

HER. NOT VERY GOOD THERE. IN AN INTERNAL E-MAIL, HE SAID TO EMPLOYEES, THE COMPANY VEERED OFF COURSE DURING HIS LEADERSHIP AND THERE WAS NO SUGAR COATING WHAT HAPPENED SO PRETTY SAD THERE FOR WHAT’S GOING ON WITH CRUISE. NOT SURE WHAT’S LEFT OF THE COMPANY GOING FORWARD.

PROBABLY A PAUSE ERE,ND THEN WE’LL SEE IF THEY CAN SORT OF REFORMAT. ANOTHER BLACK EYE FOR THE SELF-DRIVING AUTONOMOUS TECH INDUSTRY. AND THEN OF COURSE TESLA’S FSD, VARIOUS INVESTIGATIONS THERE WITH NHTSA A ALSO THE DOJ AS WELL. >> CERTAINLY SOME OF THOSE

ENTHUSIASTIC TIME LINES WE HEARD FROM THE LIKES OF ELON MUSK WHEN WE WOULD BE GETTING FULLY AUTONOMOUS DRIVING WIDESPREAD, NOT LIVING UP TO IT. IN TERMS OF WHAT THIS MEANS TO GM, WHEN YOU ADD THIS TO WHAT’S BEEN HAPPENING WITH E COMPANY, WHERE DO THINGS STAND?

>> YOU KNOW, GM THIS YEAR STARTED OFF ON A RIGHT STEP HERE. HAD REALLY GOOD EARNINGS, FIRST, SECOND QUARTER, THEY BOOSTED PROFIT GUIDANCE, FORECAST BOTH TIMES, BUT THEN IN THE BACK HALF OF THE YEAR, SOME ISSUES, RIGHT, STKE,HAT SHUTTING DOWN AW PRODUCTION FOR MORE THAN SIX

WEEKS, AND NTHEN GM HAVING PROBLEMS, A LOT OF OLDER WORKERS NOT HAPPENING. WE GOT THAT SQUEAKED THROUGH. THE MEMBERS APPROVED IT. THEY TOOK A BIG HIT FROM Q3 EARNINGS, PAUL JACOBSON SAID EARNINGS WERE HIT AT THE END OF OCTOBER. AND WE SAW THEM PUSH BACK THEIR EV PLANS.

DELAYED A FACTORY CONVERSION IN MICHIGAN THAT WAS GOING TO BUILD SOME EV PICKUPS. THEY DELAYED THAT UNT 2025. THEY HAVE CUT THEIR TARGETING FOR WHAT THEY SEE FOR PRODUCTION. THEY THEN REDUCE WHAT THEY SEE AS HOW MUCH THEY’RE GOING TO BUILDING BY 2025, AND THEN

COMBINE WITH WHAT HAPPENED WITH THE CRUISE TODAY OR OVER THE WEEKEND. YOU SEE THREE BIG HEADACH TS YEAR, AND FOR THE STOCK, IT’S DOWN A LOT THIS YEAR, COMPARED TO THE MARKET. THE QUESTION IS CAN CEO MARY BERRA GETTING THINGS RIGHT, GET

COMPARED TO ITS COMPETITORS. E – >> INDEED. WE’LL KEEP WATCHING THAT AND SEE HOW THE ADDIONA BITES OF THE ADDITIONAL LABOR COSTS THEY INCURRED AS A RESULT OF THE STRIKE. GREAT STUFF, PRAS SUBRAMANIAN, THANK YOU SO MUCH. >> THANK YOU. >>> COMING UP, GET YOUR SHOPPING

CARTS READY. WE’RE JUST A FEW DAYS AWAY FROM BLACK FRIDAY. WHAT ARE RETAILERS SAYING ABOUT EXPECTED DEMAND. WE’R TING CLOSER LOOK, NEXT. >>> ALL EYES ARE ON THE RETAIL GIANTS THIS WEEK, BUT BLACK FRIDAY JUST AROUND THE CORNER. SEVERAL COMPANIES WARNED ON A

WEAKER CONSUMER THIS HOLIDAY SEASON. YAHOO! FINANCE’S BROOKE DiPALMA HAS THE DETAILS. I’M ALL SHOPPED OUT, AND IT HASN’T STARTED YET. I CAN’T BE BOTHERED THIS YEAR. >> GUILTY AS CHARGED. I HAVE BEEN SHOPPING FOR DEALS ALL WEEKEND. DESPITE LOOKING FOR DEALS, IT’S NO SECRET THAT CONSUMERS’

WALLETS REMAIN PINCHED AND THEY’RE BECOMING JUST LIKE ME, MORE AND MORE MINDFUL OF HOW MUCH THEY’RE WILLING TO SHELL OUT THIS HOLIDAY SEASON. IN EARNINGS REPORT FROM WALMART, AS WELL AS TARGET, WE G AN INSIDE LOOK INTO THE STATE OF THE U.S. CONSUMER, AND WALMART

CFO JOHN DAVID RAINEY JOINED YAHOO! FINANCE TO SHARE WHAT’S HAPPENING RIGHT NOW AHEAD OF THEIR BIGGEST TIME OF YEAR. >> WE’VE SEEN CONSISTENT GROWTH, PRETTY CONSISTENT EACH MONTH OF THE QUARTER IN MOST CATEGORIES. WE GOT TO THE BACK HALF OF THE

QUARTER, AND WE SAW THAT SLIP A LITTLE BIT. ST SOMETIMES THAT CAN BE RELATED TO UNSEASONAL WEATHER, WE CLED AT OUT. IT’S DIRCFFERENT THAN WHAT WE’R SEEING THIS TIME OF YEAR. AS WE LOOK TO NOVEMBER AND PARTICULARLY AROUND THE EVENTS WE HAVE HAD FOR HOLIDAY

SHOPPING, WE HAVE SEEN GOOD STRENGTH. WHAT THAT TELLS ME IS THAT THE CONSUMER IS BEING DISCERNING AND CHOICEFUL. >> IN YEARS PAST, CONSUMERS WOULD STILL STOCK UP ON WINTER APPAREL AHEAD OF THE COLDER SEASON. NOW WE’RE NOT SEEING THAT AS MUCH. TARGET SHARED A SIMILAR STORY.

CEO BRIAN CORNELL SHARED HEAD WINDS AGAINST THE CONSUMER ON ITS THIRD QUARTER EARNINGS CALL. TAKE A LISTEN TO THIS. >> OVERALL, CONSUMERS ARE STILL SPENDING. BUT PRESSURES LIKE HIGHER INTEREST RATES, RESUMPTION OF STUDENT LOAN REPAYMENTS, INCREASED CREDIT CARD DEBT, AND REDUCED SAVINGS RATES HAVE LEFT

THEM WITH LESS DISCRETIONARY INCOME, FORCING THEM TO MAKE TRADEOFFS IN THEIR FAMILY BUDGETS. >> AND WHAT WE’RE SEEING IS BOTH RETAILERS LEANING HEAVILY INTO VALUE OFFERINGS AND INVENTORY MANAGEMENT. THEY WANT TO MAKE SURE WHAT CONSUMERS WANT AND WHAT THEY’RE BUDGETING FOR IS ULTIMATELY IN

STORE, AND ALSO AT THE RIGHT PRICE. RACHELLE, AS WSAIDT THE TOP, WE HAVE BEEN LOOKING AT DEALS ALL WEEKEND, THE BEST BANG FOR OUR BUCK, AND I’M SURE WE’RE NOT ALONE. >> INDEED, I KNOW I WAS OUT THERE LOOKING AS WELL. DIDN’T FIND ANYTHING I LOVED

THAT WAS WORTH US SPALASHING OU ON. >> BEAUTY, WE’RE NOT SHYING AWAY FROM SPENDING MORE TO MAKE OURSELVES LOOK GOOD. IN TERMS OF MACY’S AND TARGET, THOSE ARE TWO RETAILERS WE HEARD FROM LAST WEEK WHERE WE SAW GROWTH IN BEAUTY SALES. WHAT’S AMAZING IS THAT MACY’S

AND TGETOTH REPORTED SALES DECLINES, BUT THEY DID SAY THAT THEY SAW STRENGTH IN BEAUTY, NOW FOR MACY’S, THEY HAVE THE COSMETICS BUSINESS, BLUE MERCURY, AND MACY’S POINTED OUT THE STRENGTH IN FRAGRANCES AND COSMETICS. AT TARGET, THEY ACQUIRED THE LAUNCH IN 2021 IN STORES, AND

THAT HAS BEEN SHOWING STRENGTH AS WELL. WHAT THIS ULTIMATELY ALL MEANS IS WHEN I SPOKE TO A CONSUMER PSYCHOLOGIST, THERE’S TWO THINGS, CONSUMERS WALLETS’ ARE PINCHED RIGHT NOW BUT SHE’S LLING IT THE TWO FOR ONE EFFECT. THIR THEY’RE SAYING, IF I BUY BEAUTY

ITEMS, IT’S GOING TO MAKE ME LOOK GOOD, WHICH ULTIMATELY MAKES ME FEEL BETTER, AND IN TURN, IT MAKES CONSUMERS FEEL LIKE THEY’RE SPENDING LESS ON BIGGER TICKET ITEMS THAT WE KNOW CONSUMERS ARE SHYING AWAY FROM. IN TS SORT OF ECONOMY, WE ARE SEEING BEAUTY SALES REMAIN

STRONG, AND IT WILL BE INTERESTING TO SEE IF THAT CONTINUES. WE KNOW THAT’S BEEN A BRIGHT SPOT WHEN CONSUMERS SEE A DOWNTURN. >> IT’S TRUE. A LITTLE CHEAP PICK ME UP. A LITTLE SOMETHING THAT YOU CAN SPLASH OUT ON. OUR BROOKE DiPAL, THANK YOU SO MUCH.

>>> LET’S GET YOU A FINAL CHECK OF THE MARKS AS WE HEAD INTO THE NOON HOUR, SEEING SOME BUYING ACTION PICKING UP HERE. CURRENTLY THE DOW UP ABOUT 117 POINTS. THE S&P 500 UP ABOUT .4%, 20 POINTS, YOU’RE ALSO SEEING THE TECH-HEAVY NASDAQ UP 107 POINTS

ON THE DAY. OUR TOP TRENDING TICKER, MICROSOFT, AFTER THE NEWS OF SAM ALTMAN HEADING OVER THERE FROM OPEN AI. >> THAT DOES IT FOR NOW, I’M RACHELLE AKUFFO, I’LL BE BACK WITH YOU AT 11:00 A.M. EASTERN TOMORROW. STAY WITH US ON YAHOO! FINANCE.