The Exchange – CNBC

Episode: Stocks Sink, Disney Disappoints & 'Lacing Up for Liftoff'
Date: November 13, 2025
Host: Contessa Brewer (in for Kelly Evans)

Episode Overview

This episode of "The Exchange" breaks down the sharp sell-off in stocks, key catalysts behind the declines—such as disappointing results from Disney and heightened uncertainty about Federal Reserve rate cuts—and spotlights market movers like Cisco and Nike. The show covers new threats in AI-driven cyberattacks, trends in fractional real estate investing, and features an investigative segment into prescription drug import schemes. Notable guests include experts from Merrill & Bank of America, Wells Fargo, Rosenblatt Securities, and The Macquarie Group, as well as CNBC's leading reporters.

Key Segments & Discussion Points

1. Market Sell-off & Fed Uncertainty

(00:47–06:44)

• Market Snapshot:

  • Dow down 1%, S&P off by 1.3%, Nasdaq down over 2%.
  • Tech underperformers: Broadcom (-5%), Tesla (-7%), Nvidia, Alphabet.
  • Outperformer: Cisco up 4% on strong AI-driven demand.

• Fed Rate Cut Odds Diminish:

  • December rate cut probability slips below 47% following hawkish Fed commentary.
  • Boston Fed President Susan Collins: "The Fed should hold rates steady 'for some time.'" (02:22)
  • Cleveland Fed President Beth Hammack: Fed must remain restrictive to curb inflation.

"Those opposing a cut see inflation in the data that has spread beyond tariffs and don’t see worrying signs in employment or the economy."
— Steve Liesman, CNBC Senior Economics Reporter (03:35)

Debate: Does the Market Need a December Rate Cut for Support?

• Chris Heisey (Merrill/Bank of America):

  • "The market has been factoring in a much better profit cycle... but does it really need a rate cut? It really doesn't." (06:00)
  • Emphasizes digital infrastructure CapEx (not just AI), "boomer spending" in travel/leisure, and profit momentum as sustaining factors.

• Rick Santelli (CNBC):

  • "It's not a great auction... yields moving higher... the Fed guidance has taken what was a lock on a rate cut for December and put it at either a coin toss or less than a coin toss." (07:30)

2. AI Bubble and Portfolio Strategy Debate

(10:00–12:42)

• Concern over a possible AI bubble—highlighted by skepticism from Michael Burry and Jim Cramer.
• Chris Heisey advises staying overweight equities given healthy consumer data and profit momentum: "Bubbles happen when debt financing comes in at the later stage of the build out... we’re not there at this point." (10:32)

International Investing Outlook

• Chris Heisey notes slowing growth in Europe/UK, upside in Japan, and that emerging markets’ tech exposure is similar to the US. Currently, a neutral allocation is recommended.

3. Breaking News: First Documented AI-Orchestrated Cyberattack

(12:42–14:58)

• MacKenzie Sigalos (CNBC, San Francisco):
  • Anthropic reveals its Claude model was used by a Chinese state actor to automate an advanced global espionage campaign.
  • "Claude was handling up to 90% of the attack, with humans only stepping in a few times."
  • 30+ government and corporate targets affected; called a "turning point where AI has gone from assistant to operator."
  • Warning for defenders: "Unless defenders use the same tools, they risk falling behind." (14:15)

4. Nike Upgrade: Analyst Deep Dive

(16:37–20:22)

• Nike Stock Up on Wells Fargo Upgrade:
  • Price target raised, citing “greater visibility… revamp strategies, and dissipating headwinds.”
  • Analyst Ike Borchow (Wells Fargo):
    • Sees stabilization in legacy "classics" lines, growth in non-classic footwear and apparel.
    • "If I got the good guy growing, the bad guy getting less bad, there's an inflection in revenue that's on the horizon." (17:08)
    • On China: Marketplace clean-up continues, "probably doesn't get complete till summer 26," but "adds another layer of margin opportunity." (19:46)

5. Fractional Real Estate: Arrived's Trading Marketplace

(23:23–27:24)

• Diana Olick (CNBC):
  • Startup "Arrived," backed by Jeff Bezos and Marc Benioff, enables sub-$100 investment in rental homes.
  • New platform allows peer trading of home shares.
  • Raises risk of pricing disconnects: "If the value of that home is even lower and you're buying shares at a much higher rate—what is the risk to you as an investor?" (26:52)

6. Disney Disappoints: Mixed Earnings and Media Strategy Scrutinized

(28:56–33:23)

• Earnings Miss:
  • Disney down nearly 8% after missing revenue expectations; ongoing struggles in linear TV segment and theatrical releases.
  • CFO Hugh Johnston:
    • "We run broad in terms of DTC. We have news, we have sports, we have broad scale entertainment, kids entertainment. Who knows, ultimately... you may see gaming and things like that as well." (28:56)
  • Julia Boorstin (CNBC):
    • Optimism on Disney/Hulu/ESPN “bundle” uptake: "80% of ESPN All Access subscribers are paying for Disney and Hulu, too."
  • Barton Crockett (Rosenblatt Securities):
    • Theme parks and cruises—“the Disney magic right there”—still strong drivers despite mixed domestic performance.
    • Streaming surprises: "They were able to grow the subscriber base... 3.8 million more in the quarter." (31:30)
    • On YouTube TV blackout: "Disney feels confident... reiterating guidance despite this going on." (32:31)

7. CNBC Investigation: Prescription Drug Import Schemes

(35:56–36:52)

• Melissa Lee (CNBC):
  • Explores "Alternative Funding Programs" (AFPs) for employers to source cheaper drugs from overseas.
  • Key risk: “There is no guarantee of the safety of these drugs... or whether these drugs are real.” (36:13)
  • Gilead lawsuit after a patient receives a Turkish-sourced Biktarvy package.

8. AI World Models & Future of Physical AI

(39:10–41:10)

• Deirdre Bosa (CNBC):
  • "World models" simulate reality vs. describe it—potential to unlock new markets.
  • Demo: A 2D photo input generates interactive 3D space with physics and depth awareness.
  • Could shift AI economics, reduce reliance on brute-force GPU scale, and bolster robotics/medicine applications.

9. Flutter Stock Plummets Amid New Prediction Market Announcement

(43:26–46:52)

• FanDuel Parent Flutter down 13% after revealing its U.S. event contracts market (with CME Group), competing with Kalshi, Polymarket, etc.
• Chad Beynon (Macquarie):
  • Ongoing debate over regulatory risk and competition from prediction markets.
  • Despite volatility: "We really like it here at these levels. We maintain $330 price target." (46:52)

Notable Quotes & Moments

• Chris Heisey on AI Bubble Fear:

  "Bubbles happen when debt financing comes in at the later stage of the build out... we’re not even at that level yet in total spending or in debt financing." (10:32)

• Mackenzie Sigalos on the AI Cyberattack:

  "Claude was handling up to 90% of the attack, with humans only stepping in a few times... AI has gone from assistant to operator." (13:53)

• Hugh Johnston, Disney CFO:

  "[Disney is] basically the portal into all things Disney. And with the IP that we have, we’re going to monetize it." (28:56)

Key Timestamps

| Segment | Timestamp | | ---------------------------------- | ------------ | | Opening Market Rundown | 00:47–02:22 | | Fed Rate Cut Debate | 02:22–06:44 | | Rick Santelli: Bond Auction | 07:22–09:19 | | Portfolio Strategy/AI Bubble | 10:00–12:42 | | Anthropic AI Cyberattack | 12:42–14:58 | | Nike Stock Upgrade | 16:37–20:22 | | Arrived Fractional Real Estate | 23:23–27:24 | | Disney Earnings & Strategy | 28:56–33:23 | | Risky Rx Drug Import Investigation | 35:56–36:52 | | World Models/AI Future | 39:10–41:10 | | Flutter/Prediction Markets | 43:26–46:52 |

Tone & Flow

The episode maintains CNBC's newsroom energy—direct, analytical, and focused on real-time market drivers. Host Contessa Brewer and a slate of experts balance macro discussion (Fed, inflation, rate cuts) with sharp analysis of corporate results and industry developments. Commentary is often skeptical and probing, especially around bubble risks (AI, real estate) and innovation stories (AI cyber threats, world models), but also focused on opportunities and longer-term perspectives.

Conclusion

This Exchange episode unpacks the market’s sharp downturn against Fed indecisiveness and wavering rate cut expectations, the drama around Disney’s media outlook, and ongoing enthusiasm for AI, digital investments, and thematic market movers (Cisco, Nike). It provides a whirlwind tour from cutting-edge AI threats to the future of homeownership and exposes new consumer risks via cost-saving health schemes—all with timely, expert-driven analysis and clear takeaways for investors and business watchers.