Closing Bell Overtime: Sunnova CEO On Green Energy Under Trump; Cloudflare CEO On Earnings 11/8/24
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Well, that's the end of regulation of blackrock bring and closing bell ethne orkis stock exchange vital farms doing the onna at the nasdaq record closes for the major averages again as we wrap up the best week of the year for the dough and the S M P five tesla finishing back above a trillion dollar market cap. That's the score car and wall street that the actions just getting started. Welcome the closing belt over time.

I work in brenna. John ward is off today, well ahead this hour. Solar stocks sitting out, the post election rally in a very big way, but some names in the space losing a third of their value or more.

We will talk to the CEO of snob a, which has been cut nearly in half this week, about why he says the market is getting the trumpet trade on solar so wrong. Plus Robin hood, chief broken age officer, joins us to discuss the historic volume for retail investors this week and what they were buying. And we will we will be joined by the city of a security company, cloud blair, which is pulling back following quarterly results.

We begin out with this historic day on wall street at the downs PS forty four thousand for the first time, although IT doesn't look like we actually finished above IT. And the S M, P, five hundred climbed above six thousand on an international basis, joining us as Ariel investments of vice chairman charlie a. Brinsley and Henna and walsh asset management president Kevin mine.

Great to have you both here. Kevin, you're sitting on set with me. I'm going to kick off this conversation with you because we had a huge week for all of the major averages.

The rustle two thousand were less than two percent from a new high. Now we finished up almost eight and half percent on the week. Walk me through where we go from here in markets since so much of this seems to be the removal of the election over hank.

yeah, the markets need to take a breather, and investors shouldn't expect the market to continue to accelerate at th Epace t hey h ave t his w eek o r e ssentially s ince t he b eginning o f t wo t housand a nd t wenty t hree. However, I do think there is more room for this bull markets to run. We did the research.

We went back to one thousand forty six, and we've seen that there been twelve bow markets historically, average duration in five point three years, average cumulative turning nearly one hundred and seventy eight percent. We're about two years into this ball market and about fifty percent higher. And I know this time could be different, Morgan, but if history averages just hold up, that means we ve got potentially another two years, the one and perhaps another hundred hundred percent .

upside from here and charly. We have seen text stocks and mega cap tech stocks, excluding tesla, perhaps really lagging here this week. And we have seen other parts of the market catch a much bigger bit.

I just mentioned to the small caps, the rustle two thousand. But IT does seem like we have this unwinding of election related hedges. We have a fixed retreat. We have favorable able season seasonality with return of byblus, the so called animal spirits and a sense of homo in the market right now. Deregulation and tax cut expectations.

And then, of course, more recent support from rate stabilization, as we've seen the ten year treasury yields basically do around trip here to its preelection levels from earlier in the week. Where do you think we go from here? And what looks compelling at these levels?

Well, i'm glad you mentioned rustle two thousand. We would not mention rustle two thousand value, twenty five hundred value small cap. And my cap value has lagged for several years.

Have been a lot of talk about how this markets gone too far, too fast. That hasn't really been true for value stocks. And we've had a wonderful week this week for value steps.

Basically, it's not so much what what trump is gonna and the new administration is going to do. It's what's not going to happen. We're not gonna a big increase in corporate taxes, which people thought we were.

And we're probably gone to have less regulation on regional banks, less restrictions on ma, which would be very good for regional banks. We probably have too many banks in this country. The energy industry is probably going to do Better than they would have under another administration. The one big wild card is turfs markets don't tend to like terrace markets, like free trade and how that all shakes out is definitely in the to be seen cagr. And Kevin.

I want to get your thoughts on what we are seeing in the bond market because we had been hearing that IT was a cl treasury trade tied to a trump win. And yes, we did initially see that. But the fact that, that we sort of already moved past that, what does that tell us? And and I say that in a week where we also got effect cut.

yeah and we also see now that the spread between two and tens have to five basis points, could IT invert again. I certainly hope not. But I think what the bond market is telling us is that they believe the fed is gona go much slower from here.

I don't think they cut in december. In fact, I think next year, they take a much more gradual approach to rate cuts, perhaps quarterly, until they get to their neutral rate forecasts at two point nine percent. Given the uncertainty around potential tariff s and the uncertainty around the inflationary impacts of said tariff, I think there are gonna be much more causes cutting interest rates unless the economy slows more, unless there's more distressed in the jobs.

mark, so, so quickly along those lines than what do you buy? I would imagine domestic manufacturers that are tired of things like national security, all of the second look more compelling in a tariff environment or regardless .

of a terrific regardless of a tarriff environment. Very bullish, ed, on our space and defense. That was momentum in this area during the biden administration. I think that momentum on the acceleration during the upcoming trip straw and we need to replaced, we need to upgrade and we need to modernize our defense capabilities in three names that we hold a smart trust in each one of those three areas. First, as a relates to we're planning shing have our general dynamics and our need to were planning ammunition and military warfare capabilities.

And then if you want to look at upgrading, how do you mean like l three Harris, in terms of upgrading our missile defense capabilities? And then a smaller cap name as IT relates to modernizing cradles, defense and security solutions, drone technologies, which will allow us to have unman and less casualties in the events, war or defense situation. So are three areas, I think, that are gonna benefit from the upcoming administration. But they were already taking place during the button administration.

yeah. And of course, creators had earnings this week and over time, yours know many of these names. Well, we talk little bit more about them later. Our which are ready to put the same question to you since I know that you are a stock picker, whether it's financials, whether it's we had earnings from paramount as well, which I know you're invested in what you like here and why.

Well, what's easy is, is gonna be more deal activity and that that's for sure, a golden sex and lizards are going to have a lot more emini fees next year than they did this year. And Frank, that they gonna benefit from a possibly slope york curve. A big investment banks tend to borrow short and land long, and they're gonna do Better, not so much too to tense, but builds to tends.

They tend to borrow in the overnight report market, and then they invest longer term. So we like that space a lot. And then I happen like energy and natural gas.

Natural gas has been under a lot of restrictions, a lot of restrictions of liquid al gas exporting. The Price in asia of natural gas is about thirteen dollars in M. C.

F. It's about two fifty to seventy five in the U. S. Is a huge opportunity for us to export liquid natural gas.

Are big tankers that have been coming from the middle east to the U. S. For years. There should be tankers of liquid natural gas going .

to asia from the us. So I like those space OK with record highs, record closes for the major averages. And even the only six days into the months of november were actually on on pace the dough for the best months since in november of twenty twenty three so far. All right, we'll see if that holds. Uh, let's turn out at in video pulling back a bit today in its first session as a member of the double, but still sharply higher on the week, seem modi has a closer to look at the move sima .

more than a feels like a long time coming. But NVIDIA joined the doubt today, replacing intel, and shares were down slightly in the first day in the index. But we know in videos merge as one of the largest companies in the world, but IT took some time for that to take play out, of course, the air revolution, helping the company our perform.

Remember, the dough is a Price waited index. So even though in video is a nearly four trillion dollar company, IT is only around the twenty first most expensive stock in the index. Contrast that impact with the S. M, P, five hundred words in video is waited at more than seven percent of the entire index.

While shares I ve raised since the news history shows us that additions to the dough don't always lead to higher gains, in fact, honeywell, walGreens under perform the stocks they were placed one year after the change was made. The reason a lot of analysis, most of these companies had such a strong work up into their down inclusion that games were likely already Priced in for in video. This means there may not be much more to gain by adding to the double, but we know AI, as a way, has been a powerful driver to offset historical trans. Look at case in point this weekend. This year, one of the best for farming stocks and earnings are less than two weeks away.

Morgan will watch IT seema mody, thank you. A lot of good context there. Let's bring your mike santi for a broader look at a reshuffle in the down. Of course, mike, it's worth noting talking about a Price waited average.

not a capp dated one. Exactly just the amplify. What team was saying here is where in video a sits in terms of its waiting in the S M P.

Five hundred as the largest company in the world, seven point one percent at that index. It's only two point one percent of the doubt because IT has a relatively lower share Price. And then you see sure the Williams also entering the doubt today.

It's only two tens of one percent in the S M. P. Five hundred. However, it's the sixth most influential stock at this point in the doll because IT does have a much higher share Price. Uh, good for about seven point two percent of the.

So there you have the course of the antiquated down Jones industrial average coming into play. Now take a look at some more specific numbers on how entrance and stocks existing. The dw have done historic.

This is from Davis researcher. This is the point at which a stock's in or of the down Jones industrial average throughout history. So you see those that are getting kicked out, they've been bad performance.

That's why they get kicked out on some love. There's a moment's representation type of story here. Starting a little while after there out, they started out perform again. Those entering the deal, you see that they generally been positive because markets are generally positive, not as aggressive, but they continue to do OK for a while.

So it's not a pure contrary in call, but I just shows you that when perhaps the company gets kicked out, they definitely have at least the possibility forward to be kind of a capitation tight move and their fortunes might be about to turn for the Better. Though I know i've mentioned a organ. How many old dark components I remember betta m steel is one of them. You're not a way around anymore.

yeah. And you just use the word antiquated to talk about the di. Yes, perhaps are not surprised given your track record of of talking about the double. But I do wonder, just given this point, we talked about IT recently as well, if this means that you need to keep a closer I on intel.

yeah. I mean, I think for this reason, right? I mean, it's still is a monumentally important company in a very important industry. Whatever is going to happen to IT down the road where there is going to get a return on all this investment, the restructuring works.

But yeah, I do think that you have to be aware that we the makings of a little bit of a cell, the bottom type dynamic when IT comes to into, by the way, I do also think that makes sense to pay attention to the dow. And IT is important that the dw kind of refreshes itself by making sure it's a components or somewhat representative. And my my take is always been that for baseball people, the downs is like batting average. It's the old way of measuring performance is not the best, but it's what people have the numbers in their heads and they know what they need.

All right, that's a good metafor two mix. r. You'll see you later this hour. Thank you.

After the break, are there any great spots left in the solar trade with the sector? You're seeing a massive reset lower after trust Victory, but the C E O sono va says investors are fundamentally misinterpreting the impact of the second trump administration. He will join us next to make that. And later, Robin hood's chief broke age officer breaks down the stocks and crypto assets that customers were most excited about in this record setting. A week for the market over time is back into.

Cnbc has quick and easy to understand business news updates at the open midday and close every weekday markets, money and more from wall street to main street. I'm cnbc Jessica, adding to follow and listen to c nc. Business news updates wherever you get your podcasts.

Welcome back to over time, stocks may have reached record highs this week, but the same camp, he said, for solar, the industry seeing a sharp preset lower after president electrum Victory, with snowball among the big gst liners losing nearly half of its value. Will joining is now is a nova CEO john burger. John, it's great to have you back on the show. And that's exactly where I want to start because you say the market is completely misunderstanding the impact that a second trump could have on solar. why?

Well, first all yes, the market is the out of control in the sense of a widely emotional a lot of speculation out there. But when you look at what we bid had earnings right before a the election, we laid out a very strong cash forecasts. We still feel very good about that cash forecast.

A N when you look at a stronger economy, that stronger economy is going to met with stronger power to man. We're struggling right now the supply of power in this country. To meet that demand, the man goes higher.

We need even more power that this company provides, and we deliver a Better power service at a Better Price. Lately, I would say, uh, when you look at snow went public under the first trump administration, we hit an all time share Price high, a pty four dollars to share under the first truck ministration. We look forward to the second trip ministration and having even more success and more growth. I mean.

there has been talk out there and I realized we're still in this, to your point, speculation phase about what future policies is going to look like. But husbands k out there that are going to see a scaling back or rolling back, to extent that you can, of the ira policies of the current administration. What would that do? How much can actually be changed there?

We don't think the iron is going to change much. Maybe around there is a little bit, but it's been so successful you looking at for insist domestic manufacturing, which both parties agree with, of of solar panels, of batteries, of inverters, electronic vehicles. And so that's been hugely successful.

In fact, eighty five percent of those capital investment, those those plants that make solar panels and batteries during republican districts. And so we're seeing a huge amount of success to the point where our company doesn't buy much that's not made here anymore and we're likely not buy anything at all is not made here in the very near future. So it's been a success.

We see a driving home more, more power generation. And this country needs all of the above energy. We need more power, and we're part of the solution.

What I hear you are saying is that you are a domestic manufacturer and that most of your supply chain, if not to on all of your supply chain, is going to be domestically sourced. So I imagine you have some thoughts on potential terf s especially knowing that solar, and specifically solar parts and and supplies, tide to the solar industry where china's concern have been some of the first areas where we've already seen tranches of troops over the last couple of years.

yes. So snowman went to all sales, having had domestic manufacturing equipment on september first. We are now next month going to that.

All installs have to be with the estim manufactured equipment are dominated by oMegan manuel equipment. So ready. And again, the R.

S. Been successful in this. And again, that matches what a truck administration, uh, president truck policy appears to be.

So that also means that we are relatively immune, if not completely immune, to turfs from china on equipment. We don't buy very much anything at all from, uh, china anymore. So when you look ahead, we're a totally different picture than we were even two years ago. Again, the area been successful on this front, but we're certainly in a materially Better position than we were under the first trust administration with regards to the importation of equipment from countries such as china.

So then can we say that turfs on chinese imports relating to solar .

have worked well? I would say the I R A has worked when you look at the tax credit uh for uh, manufacturing would called forty five acx that's been successful. It's brought manufacturing plants here again dominating ominous tly in republic and districts may and then the domestic uh content or of the investment tax created that my company uh captures that is also incentive to grow and build domestic manufacturing plants here in the states. It's been very successful at my point, and that's the only thing that both sides of the oil seem to be able to agree on. So we're in a great spot going into what we believe that will be a very strong trap economy.

He talked about earnings before the election and and what you're seeing with cash flow and basically focusing on the fundamentals here, we have a fed that just cut rates again yesterday, as you do start to see. And we haven't really seen IT yet. But as you do start to see rates move lower, are you starting to see rekindling of demand for your products?

We've seen strong demand because is mainly based on utility rates, and utility rates have gone up over forty percent of last five years. This goes to affordability problem. And I Frankly got truck back into office.

And so when we look ahead, we see those utility rates moving up. why? Because we see the economy and even Better shape, you move forward in time.

So when you look at interest rates, interest strates dropping, the fed cutting rates yesterday, that was fantastic. That's fantastic tic for for all companies. So IT is helpful for us, but it's more about our success in the debate were saying is based on two things.

One, utility rates, which you continue to see to move up uh, more L N G going out of which we feel very strongly that, that should be done, that is going to push natural gas rates up a little bit, at least here in this country, that's going to push retail rates up. The other thing that happened, we've had a very act of parking season. We've had reliability problems here in huston, texas, where were headquarter in Flora and importers o in other areas, we have a solution with solar and storage, working together with natural gas fire generation support, provide resilient solutions that this economy needs more than ever.

We talk about elon musk s because of space x because of tesla on the E V side and the fact that he's emerged as a key adviser and and part of official or not part of this administration uh, for president elect trump but the other piece of IT with him, of course, is renewable energy and specifically solar so I wonder what you think he brings to the table there?

Obviously, mr. Ro, bringing a lock to the table. I will say this, that we have done a lot of business with tesla over the years, starting boy back in twenty seventeen when maria a was catastrophe with porter rego and built a very, very large amount of tesla power walls in in our customer based in our fleet.

Uh, we think that he is gonna a very big proponent of, again, having more competitive choices for consumers uh, in in power across the the entire united states. So in houston, dallas, we do get, uh, choose as a consumer, our power provider. We think that, that should be something that everybody should be able to chose from, from sea, designing sea.

And we think theyll be a big proponent of that and saying good years provide some options. It's just like trop said with the letter vehicles, let's not Mandate a little vehicles, but let's not a make them on economic or not available to consumers. Let the consumer decide, let the market decide.

So we're been a big proponents ts to know of letting the markets decide. Been a big uh, buyer of of tesla equipment. The cost have come down on on batteries. And we think mr. Bus is going to be very, very strong in terms of making those points like let the market work, get out of the way, deliver the power of the consumers where they needed OK.

John burger, as your speaking, your stock is moving higher here and over time, it's now up three percent in after hours trading. It's great to hear from you the CEO of snowed next work.

Well, shares of brokers.

companies like Robin hood and interactive or brokers are taking off this week as investors sports money into stocks on election night. So next, the chief program officer of Robin hood on the unprecedented ge in volume and the top names the customers were buying. And later domes are exclusive. Interview with the CEO of cybersecurity company cloud flared, a key player in election security as that company stock was lower following last night earnings stay with us.

C, N, B, C has quick and easy to understand business news updates at the open midday and close every weekday. Markets, money and more from wall street to main street. I, cn. Jessica, good. Follow and listen to see nbc business news updates wherever you get your podcasts.

Welcome back. Robin hood chairs rocketing twenty eight percent higher this week as well report money into stocks on election night. The company saw historic volume from investors at eleven times the typical overnight volume.

So joining us now, roman hood chief broken age officer Steve cork Steve is great to have you back on the show. That's exactly we are going to start with you. The fact that we saw this explosion of trading on election night and that benefit Robin hood walk me through IT.

Well, I think in addition to um in addition of the winners that we saw election evening, if you talk to our twenty four million customers, they would picture themselves as winners because this is a first cycle where they have been able to either capitalize or had portfolio in the equity markets. We rolled out twenty four our trading about two years ago in equities in addition to the crypto market, which charity trades twenty four hours.

And of course, we rolled out prediction markets a week before the election. So they really had uh multiple ways to be able to either capitalize or look at the probabilities of wings for each candidate and then adjuster portfolios accordingly or take advantage of the opportunities that they saw there. So I think it's this this cycle um is something that was quite unique for them. We have tom's Peter .

phy of interactive brokers on earlier this week when they have a prediction markets product as well. We talk a little bit about that, and he seems to be very bullish on where those products, uh, those offerings are, are headed over the next call, IT decade, fifteen years. He says he thinks this could actually become bigger than the equity markets in in terms of the business opportunity there.

What what did you see especially to only launched its so close to the election? What did you see in the prediction markets? How accurate were they versus the outcome of the elections? And how much traction do you think this can now gain as an offering on the had platform?

Yeah what we saw in the evening uh or in the week up to the election is a half a billion contract. So there is strong, strong, strong demand um for this for event contracts in ways I would call this almost an institutional product that um is now available for retail to be able to, as I said, capitalized or head portfolio. And I think the future is pretty bright there.

We we saw that those heavy volumes um they they sort of exacerbated as we got closer and closer um results coming in um about seven P M U. Uh we started to see the the difference in the contract. In other words, the contract started indicating that they thought that there was a indication there would be a winner.

And as a result of that, you saw all the other markets moving and that was in in advance of swing states being called. So I think for for a retail trade, this is an amazing instrument for them to be able to protect portfolios or capitalized. And I would would anticipate, as he had said, that we would see a lot more growth here.

Um so if I do look at equity specific stocks that we're most active in terms of trading volumes and appetite from your retail client, tell what were they. Well, I think the .

one that we saw um a very large bike and volume on right out of the day, as soon as I said in seven P M, we started to see IT right out of the gate was tela. No anticipation that this would be very positive for them. And if you look at we're settled now, I know if you've had been blown talking about IT over the course of the week, you know it's it's much higher than where IT was at that point. Um also D J T and video, there's a lot of belief in in the tech sector in general and a lot of optimism around that. And then on the crypto side as well, even the individual security in addition to the crypto native critter trading, which we had, which was a huge, huge weekend evening as well.

Okay, Steve quirk.

thank you for joining me. Thank you. thanks.

Dog has been getting more attention to as of late all time for a abc news updates with lesser picker high lesser hey .

Morgana federal judge approved special prosecutor jack Smith request to ponds Donald m election interference criminal case. The decision removes to all deadlines in the case, except a december second decision on how prosecutors will move forward with the case now that trump is heading back to the White house, the FBI said today.

IT was aware of a video that used the agencies main to make false claims of an attempt to poison twenty electors in three states with and rox. The announcement is the latest in a string of fake election related videos the agency says used its name to spread misinformation to undermine bilot oral process. And rapper Shawn did he comes asked again, uh, a judge to be released on bond ahead of his trial on federal sex trafficking charges in a court filing comes asked to be released on a bond backed by his forty eight million dollar miami home and members of his family about alright.

let the picker, I thank you. After the break, the return of the sixty portfolio mix and toy looks at a milestone reached this week for the classic portfolio construction and later is trumps to win a red flag for retail stocks. We will take a look at White terms, can take the industry particularly hard, and the names that are most at risk over time will the right back.

Welcome back mixed ela returns with a look at how the sixty sixty portfolio affair in this record week for the market. mike?

Yeah, we're going among all the threshold that were broken this week, the sixty forty portfolio, as measured by the vanguard baLanced index mutual fund, finally hit a new high after the bear market of twenty twenty two, and stocks and bonds went down together, recovered all of that value in Price terms for the first time, at least the first time, to stick right here, you see what a precipitous drop IT was.

And IT also reflects the fact that bonds, now that they have some yield in them and they're moving a bit independent of stock Prices, they are kind of doing their job with an a portfolio of an active and offset, creating some sort of an income bolster. And I take a look at the total return version of the same five year chart, which, of course, accumulate all the dividends and interest income that come along with that stocks on portfolio. And you see that IT actually hit a new all time high several months ago.

So that's just another reminder. Obviously, you have to consider the fact that it's all in. It's the cash that you get off the portfolio as well as the Price change. It's going to tell you exactly how it's doing.

how much should be watching the two year treasury yields right now. We're just having this conversation with the Kevin moon earlier. And yes, we've seen this round trip in the ten year this week, but the two year actually has moved higher. IT has moved .

higher to account for the fact that I think they're some questioning us to just how much more room there is below current levels in fed funds rate for the the fed to go. You know, in theory, the two years yellow should be the average fed funds rate over the next two years and never quite conforms to that. But in theory, that would be fair value if you have perfect pressie about exactly what fed funds is gone to average all of that span.

And right now, I mean, argument, if they're not going to get down around four percent before they have to pause, wait and see, which is plausible, I get three more cuts from here then. You know, maybe where IT is right now make some kind of a sense. So it's gonna just be a pretty good you thermometer of a fed expectations for the most part.

All right. Mike santi, have a great weekend.

Thank you to cloud flared.

Investors is feeling a bit under the weather today after the cyber security company forecast weaker than expected at q for sales guidance of next CEO. Matthew prince breaks down what's behind the disappointing outlook at an exclusive interview and check out shares of insects. This is one of the big winners in the S M.

P. Five hundred. Today, the company beating rings expectations, hiking its full year revenue outlook.

Thanks to strong sales of its insuing pumps. Those shares finished up nine and a half per set. Stay with us.

Well, come back to over time, cloud flared under pressure today as investors focus the company's revenue guidance, which came up short of anus estimates, sticky inflation, high interest strates, intense competition, all playing a role in that outlook. Joining us now an exclusive interview is cloud flare CEO and cofer Matthew prints.

It's great to have you back on the show. welcome. thanks.

And so that's exactly I want to start with you. The fact that the outlook for q four was softer than analysts had been anticipating. why? Especially given the fact that you did put up such a strong q three, including a record amount of large customers.

Yeah, I think that we're going through the process we read building our sales team in order to make sure that we've got the right talent on board to service the larger and larger customers. There are are coming to class flare in order to make sure that they are fast, safe for reliable everywhere in the world. We've done that successfully in asian europe, which posted record courters.

We're now in the process of doing that in north america. I think in a couple of the deals that slipped out of the quarter, uh, there are still closing. We are not actually seeing competitive pressure or not seeing anything in the macro. O all of these are things that are very much under our control. And I think what we see is an inflection point that sets us up incredibly well for twenty, twenty five and in the years.

And you've been revamping your sales department really for the past year and a half. So IT sounds like that process continues.

Yeah, I think about getting to the end of that process. But when we brought on incredible sales leaders like man mark Anderson, who know had had opportunities to be c OS and other places, and came in really that the next stage of his career on club flare, the people who are coming to lead that sales team have set us up to continue to sell to more and more enterprises in today, up to thirty five percent and fortune five hundred, using class flare to make sure their network is fast, safe and liable everywhere in the world. And we want to make sure that every major company is relying on our network in order to get the benefits that we can deliver and make sure we have the team that can satisfy those needs.

I think about cyber security. I think about a secular growth trend. So when I hear you say that there's nothing in the macro, how much with the mro matter? And what does that mean for how you're looking to twenty, twenty five and beyond?

I think the micro matters at at very time. I mean, we certainly saw a uh year to half ago when the I T um uh spending environ really just froze up uh across the board. So we're not completely insulated from that, but I think we are more insulated than most.

Uh, cyber security tends to be a must have, not a nice to have and lively as the leader in network cyber security, uh, we are finding that were able to continue to close business even when there are difficult times in the micro o environment. But right now think we've actually seen a real stabilization in the macro environment. We don't see IT getting significant Better, significantly worse, but it's an environment that we think we can perform in .

when we have the right team in place. okay. You also play a very key role in a election cyber security. So what did you see as we now come out the other side of that?

Yeah I think investors is the ah is my last stop and what's on a very busy week um but we our team was was on call twenty four seven for the last two months. Protecting election security. Both the trump campaign and the Harris campaign were customers. But think even more importantly than that, more than half of U S. States, most of the so called battleground states rely on cloud flares ethie project, which is a service that we provided no cost to anyone who's helping in minister election in the united states in order to protect them from attacks.

And there were attacks um that we say very dramatic increase in the in the first week of november, targeting specifically election security and election sites around the world, with some more attacks in the first week of november than we didn't all of september or october combined. Uh but nothing we couldn't nothing out of the a usual nothing that was uh that that caused a great concern but were proud of the fact that we helped make sure that the election went off without a hit, that cycling ity was not part of the story. And and I wanted to thank all over the cloud of our team who stood by to make sure that we make sure that democracy wasn't impacted by cyberattack.

So what does A A second trump administration potentially mean for the company and for the industry more broadly? IT, i've seen a number of animals notes in last couple of days saying, listen, you're going to have to fortify and strengthen the the cyber focuses around industrial basis and around key strategic infrastructure. Anything that a national security priority is your expected that you're going to see much more focus on that?

Yeah no, I think as as I said, both um the trump campaign and the Harris campaign customers and I want to congratulate A A president elect trump on his election Victory and and also acknowledge the hard thought campaign that the vice president Harris went through and and we're proud of the fact that we could help protect both of them。 I think that while politics is partisan, cyber security is not.

And we have worked very closely with the by administration we were to the previous trumper administration and the obama administration before that in order to make sure that our nation has the cyber security that needs, that our critical infrastructure has that protection. And I actually there's going to be that much of a change for a business like hours. We expect the will work closely with the top administration to make the U.

U. S. Infrastructure is protected and in any way needed and that we will continue to provide our services to protect the most critical parts of our our system, including the democratic functioning of of our elections.

Okay, Matthew, prince of cloud flare, great to have you on. thanks. You're joining me.

Thanks reading.

We have a news zalee out of washington ayd java has the .

details hi aim hey Morgan two sources familiar telling nbc news that got bent a the founder of a uh uh key square capital management excuse me, uh is the leader to be leading canada to be treasury secretary under a trump two administrations got best and of course, uh former chief investment officer, a sora fund management he also has been a yield professor, has taught economic history he was on our air, uh, earlier this week in which he said he would do anything that president electrum asks him to do but didn't specify which particular role he had in mind.

Now, nbc reporting that he has emerged as the leading contender to be chosen as treasury secretary in the incoming trump administration. Again, that is according to two sources familiar speaking with nbc news. We're trying to confirm that directly ourselves as well. But obviously, Morgan, now that the election dust has settled, there is a lot of jacking for position in the upcoming trump administration. As the president elect puts together his economic team, we'll be following .

all that very closely. And he does have a number of economic advisers and and wall street sions around him. So I do wonder what this means for some of the other names that have been banded about for positions, including for treasury. If this is in fact the pic that moves forward, a name like jum paulson, for example.

right? exactly. Paul son, somebody who has been obviously very close to the trump effort here um and you maybe not getting the nod.

Uh you know it's unclear to me, Morgan you know caner you other than trump himself who was involved in making this decision right mean be a very, very small group of people uh, around Donald trump would actually be uh, making that decision. We know that h he picked sue wills as his chief of staff, uh, yesterday. So he is putting together the White house team and also now looking to fill out the cabinet level of officials as well.

Wait to see whether we get any official confirmation of this a from the the trump team down a morale go. Obviously there is a lot of jacking for position. There are a lot of leagues, a lot of things fun out um but as of right now, two sources familiar you're telling nbc news the best thing is the a leading candidate for treasures .

right definitely in the ground running. We'll see how all of this continues to evolve. amen. Thank you. aye. Java in dc. Up next a look at whether the defense space industries could really take off under the incoming trump administration.

Welcome back. And a huge work for the S M. P. Five hundred airspace and defense stocks outperformed with the I T, A etf gaining almost eight percent earnings from axon, which are up more than forty percent this week and how that helped. But much of the move is tied to the election, so R, B, C capital market is sees the preliminary implications of the election is positive for the sector, anticipating improved outlooks for defense spending and the business jet markets.

So think general DNA ics and technical and increased emini analysts there say the commercial airspace outlook, though may be more mixed, thanks to trade uncertainty and risks from blanket terabits so keeping I am boeing one wind card military support for ukraine uncertainty, there are good way on drone makers like air vironment. While that supplemental funding for ukraine may go away, cowin thinks that these D O G spending could actually go up three to five percent, maybe even more. That would be above expectations with priorities including an increase, a missile defense and additional aid to israel.

Now president electric also widely expected to push nado members to continue to spend more on defense and to focus on strengthening the industrial base and adopting new tech to support his peace through strength stance. Now regarding space, the first trumpet administration made big policy moves to relate ched, the national space council, the founding of the space force, the establishment of the artistic program to send NASA astronauts to the moon, and even the commercialization of low earth orbit. Experts now expect optimists to accelerate to avoid falling behind china that a plan for mars will materialize and a space national guard to potentially come into.

And this is something trump had been vocal about on the campaign trail. All of this, of course, as space access founder in C. O. Elon must ask a key adviser to the president elect.

And is expected to have a heavy hand in cutting bureaucracy and government spending, which could also help create more opportunity for commercial space and defense tech. For more on the sector, check out my podcast manifest space. You can scan that Q R code on your screen or download IT whereever you get your podcasts. Well, president like trumps tariff threat could lead to a reckoning for some retailers. So up next, we will break down the stocks that could be hit the hardest.

Welcome back, president elect trumps plan to increase herbs across the board could have a huge impact on the retail industries, specifically companies that have their products make their products in china. So a corney regan looks at which stocks could be the biggest losers.

Court I more than ah so even before present electronic levy tariff s on many chinese imports. In his first term, retail lers had already been diversifying manufacturing away from china, but it's complex and IT takes a years. So Stephen madden told investors, is now accelerating plans to move production out of china in anticipation of higher terrify, dropping from seventy percent of production there to a quarter about a year from now.

Bank of amErica is doing grading shares of five below the firm, noting IT likely doesn't have pricing power to mitigate turfs because it's already reprieve sing lower Price items, hoping to Better resonate with shoppers. Bank amErica also estimates that forty percent of yates's production is in china, estimating sixty percent tariff could impact margins there by five hundred basis points. Now gordon has struck ground points to academy sports as a troof loser, estimating sixty five percent of its products sold are made in china while exporting goods, and foot locker are actually a bit more insulated of the academy.

Now paper sellers Peter kids says dollar ies fixed Price point make IT really hard to pass all on terrorist shares of cross boot barn american go wafer. That's just among some of the names on analyst worry list when IT comes to hire terrify Morgan. And of course.

we seen so many. These stocks are love so dramatically this week corti in anticipation of all of this. But then I look at something like the furniture makers, and rh has a key piece of its manufacturing in china, but some of the other players have actually moved more their manufacturing to the us. So I wonder if you actually started to see more of that happen, particularly in anticipation of these terms. S yeah.

exactly. And so we talked about yet, I, how bank of amErica is worried about what's going on there. Where is Jeffery's reno? Onic uses that as an example as actually IT already has plans to begin moving out of china, more of its production out of there by the end of twenty twenty five.

So actually those fears are overblown. And so Jeffery says actually that's an aggressive by for shares are ready. Well, bank amErica is worried about the amount of production there are. So look, it's all sort of unknown right now.

We know that many of these retailers have been trying to move production out of china, as they mentioned, actually well before present terms first term because labor has gotten more expensive there as well as input cost and other things. So to your point, where sea companies either reassuring or nearing, but IT takes a lot of time. It's complex to find the the manufacturing face face, but also the labor people that have the skill and or are willing to do those jobs.

I mean, that sort of how the train went overseas in the first place that just made more sense and IT was more efficient to do so. So this is a very complicated problem. I think IT depends on how you look at IT with these retailers, how quickly IT could be done.

Moved around the world. And again, these aren't even placed yet, right? So who exactly knows?

Yeah, we have to say not to mention what common in terms of Prices for consumers. corney. Regan, thank you.

I wish them a happy weekend. But mike, sand toy, you're not off the hug yet. So I OK good. So just to get your sense of what you're watching as we go into another week after we did set records for the major averages.

first thing is how the market itself reacts to the fact that IT has gone into the weekend and somewhat overheated step, by the way, bond market closed on monday for veterans day. And then the CPI number, there has been a bit of a pause in a disinflation story. I think the policy expectations have insulated the market a little bit from surprises on inflation. But even with a tolerant fed gotta, make sure that doesn't become a problem again.

Yeah okay, lots to watch you mention CPI. We've got retail sales to a lot of and speak as well makes only now i'm gonna say have a great weekend. Ah we did have all the major averages finished the day and the week higher.

Best week for the averages of the year. That does the first year over time, fast money starts. Now cnbc has quick and .

easy to understand the business news updates at the open midday and close every weekday markets, money and more from wall street to main street. I'm cnbc Jessica, adding to follow and listen to C, M, C. Business news updates wherever you get your podcasts.