Transcripts For CNBC Closing Bell 20240713

Before but investors remain bullish. We are on record close watch for the three major averages, as we stand, the nasdaq and s p pretty comfortable. The dow just higher, though, by only 0. 1 . Industrials the only sector in the red. Consumer discretion. Joining us, josh brown from Wealth Management. Well done. What did i say . Im not sure. It was cute. I got close enough. Lets stay on track nasdaq, dow, s p. With almost nothing in the red at all. Its bigger than that 52week highs for the slf. Bank sector. Very, very key incredibly bullish Consumer Sector spydr. Look at the usual suspects, xlk. Off the radar things that are happening thats really interesting. This might be because enough tax law selling has already occurred or traders are anticipating the end of that. Some of those highprofile ipos that blew up this summer and fall are starting to make meaningful moves off their lows, looking like they could be putting in a sustainable bottom. Peloton, after a very disappointing debut. Slack looks good its a name ive owned its looked terrible for a long time nice move off that low buyers are coming in here. 20 is a tradeable bottom moving forward. Uber made a nice move. Thats an interesting tail wind that started to develop. Some of the hardest hit, biggest damaged laden names are looking better and better. Theres a lot to like. If youve been watching me every week on shoet for weeks and weeks, months and months, the technicals are keeping along this market. Today is another case in point. Lot of names for investors to chew on. An entire hour with josh well get all over todays big Economic News as well. Diana olick, Steve Liesman is looking at divergence of the u. S. And chinese economies new reporting on concerns from Corporate Executives and joining us to break it all down, from Morgan Stanley investment lets start with diana and the beige book. Modern economic expansion, tight labor market and, of course, trade impacts. Manufacturing was improved overall. Mentoring trade policy as a Downside Risk to their outlook worker shortage spans most industries and skill levels. One provider of Business Security in seattle said their labor costs were the highest in the companys history. In chicago, several Companies Reported hiring retired workers to fill their gaps prices rose modestly overall much higher costs due to tariffs. Sales expectations for the Holiday Season in the boston district, very strong. One retailer reported import duties on some european luxury goods were way up. Back to you. Diana, thank you very much for that meantime, there were some positive signals on the data front today in the u. S. , but different case in china of late. Steve liesman has been looking into that for us. Most of the data today in the u. S. , a bit better than expected, compared with some pretty bad chinese Economic Data take a look here for example, we had the gdp come in two ticks better, durable goods. Looking for a 1 decline, up 0. 6, 50year low thats been around for a bit industrial profits in china, down nearly 10 . Six straight month of decline, exports falling for 17 straight months taking its hits from the trade war. Pmi versus pmi, the u. S. Has fallen sharply from robust days of 60s, somewhere in the middle of 2018 and now both countries pmis are in negative territory. Rather than look at the winner of the trade war, maybe its whos losing more . One other way to look at it, u. S. Exports to china and chinese imports to the u. S. , there you go, down 15. 5 imports from china down 13. 5 . Were doing a little worse there. Not in terms of dollars. Take a look at the other side of this, the dollar terms 53 billion yeartodate off on chinese imports to the u. S. , just 15 billion. We export less to china. Losses on both sides might have been brought up a little closer. Well see if the losses are big enough, though, to forge a deal. Wilf morgan steve, question for you we know there was a slowdown starting to happen, at least in some parts of the economy in china even before all the trade stuff happened how does the data now compare to them i think it accelerated to the downside then it affected pockets in the u. S. The difference in the u. S. , morgan, as you know, we have this very dynamic economy. Some people importing, some people exporting, companies that benefit from a strong dollar and some from a weak dollar. Its the dynamism of the economy that tides us over so there are some downsides to the economy, just not as dramatic as they are in china. Under the radar but possibly Interesting Data about the fact that that china was able to pull off its largest ever International Bond sale this week they were expecting 3 billion they did 6 billion. They had 20 billion worth of demand for dollar denominated bonds in china i think it dovetails with people looking at the stock market for a proxy of whether or not the world is really worried about this trade war wearing on. Are those related . Should i call you brown, you call me liesman . No, no, im mr. Brown. Mr. Brown, okay chinas business to the u. S. Is right now. U. S. Business to china is essentially on the come. Nothing has eliminated the chinese burgeoning middle class. Theyll still come to market wall street is still going to fund them. Theres pretty good optimism about down the road where nothing about it has revealed those facts. Brown. Steve, thank you very much. On that point, quickly, josh, only at 65 basis points above treasuries when we know rates are pretty low by historic standards. Riskfree bond to your point. Chinese will be look at this and saying if we can slowly but surely take advantage of the current circumstances and offset our current use of reserves, i think its a huge factor for them long term playing it small relative to their overall deficits. Very good point if youre just reading headlines, all the furor, all the uncertainty. Next week china is going to have four times the amount of subscription for a bond offering, the biggest theyve ever done, and it will be 40, 50 basis points over a treasury, you would say absolutely not yet that shows how much more important price and reality are than saber rattling by politicians. It changes one factor with china weve had and that is whether or not they can keep the currency propped up and fixed where it is. This helps them do that. No question. Despite those positive data points at home and stocks at record highs here, some executives are raising red flags about next years outlook. What is jp morgan saying about the sentiment coming from ceos right now . I sat down with john richard. In contrast to the euphoria, the bullishness were talking about at cnbc, ceos have a lot of pessimism for last year. With the election coming up, they think with the expansion in the late innings, they think with potential democratic candidate who might want structural texts and regulatory changes to the u. S. That they are actually pessimistic about growth in 2020. What about the sort of underlying differences, hugh, different sectors, industrial versus consumer. Its a tail of two industries worlds really. Anything to do with services and tech, these are things, anything to do where its driven by the consumer these are corporations and sectors that are still doing well if you talk to ceos of old economy manufacturing, transportation, Business Services in some cases, these are people who might tell you they are currently in a recession. Hugh, thank you very much for joining us hugh son catch the full story be sure to check that out. Were in the first innings of a capitulation trade Morgan Stanley Investment Management andrew, thank you so much for joining us youve been looking at recent decades type performance and you think this looks more like 2012 and 2016 at the moment 2019 does but what happens in 2020, i think, will mimic what happened in 2013 and 2017, which were that simply 2012 and 2016 came after very tough years we had economic scares the market rallies because there was no recession in those years, but investors actually liquidated out of equities, 2012, 2016 because they remembered the pain of the big drawdowns of 11, 15. Thats exactly what happened this year. We had a big drawdown last year. Market is up a lot but investors liquidated look back to 2013, 2017, what happened was the money that was liquidated the first year coming out of that tough year reversed, investors came back into the market so inflows flows turned positive at the end of 2012. At the end of 2016, we had very positive inflows in 2013 and 2017 and you had very good another good year for equities in those two years weve had outflows net from equity, etfs every month this year and were just starting to see those flows turn positive. I think you cannot say anyone that says to me, look, i think this run is almost over, youre telling me that after 10 months of outflows were going to have a month and a half of inflows . I think thats crazy. Yeah. Josh, do you agree does this bull market have more . Im curious the chief strategist at your firm has been talking about a recession pretty much on a weekly basis all year. Do you think that some of those outflows are being driven by commentary like that and then when the recession does not materialize and things continue on an even keel and were still at essentially gdp 2 growth quarter after quarter, maybe not each quarter but on average, people say i dont believe the recession call im going to invest for the long term and ignore that stuff is some element to the data turning upward ive been on cnbc, you know, since this summer, saying were having a recession scare its going to be a repeat of 2011, 2015 value stocks get very cheap. And then theres no recession and value comes back as evidenced today. You told me financials are at an alltime high. They continue to move higher. 52week high. Then that will return the investor behavior more positive. And that is what has not happened yet its just starting, and people will come back in the market the other thing that is very relevant is if you looked at the positioning this summer, the defensive sectors were extraordinarily expensive relative to the market and that just tells you, people are positioned for the market to go down, not up. And in the past when theyve gotten this expensive, the market actually always goes has always gone up and that the defensive positioning has to be unwound. It goes in value stocks, gross stocks, comes out of utilities, reads, consumer staples. I think thats exactly what were seeing again so the key thing is, the macro conditions change, but investor behaviors do not change. And i think this next year coming up will be a repeat of 2013 and 17. Yeah. Andrew, thank you so much for joining us good to see you. Thank you happy thanksgiving. And to you. Very happy thanksgiving. After the break on closing bell, investors have a lot to be thankful for and mike santoli will head to the telestrator for the key factors that led to the rally. Nasdaq and 2019 ipo race a new proposal could open the door for more direct listings at the big board. Well discuswi vs thice chairman john tuttle. Stay with us so servicenow put your workflows in the cloud, huh . Mmhm. Your employees must love you. Thank you. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. 43 minutes left to go. Shares of box jumping as well, after reporting better than expected revenue, raising its fouryear forecast, as you can see that stock almost up 10 Dell Technologies falling after posting an earnings beat and revenue miss, also cutting its fullyear revenue forecast, citing shortage of chips from supplier intel. Lets get over to mike for todays market dashboard. Hi, wilf. Good to talk to you i want to allow people to take in the dashboard here idea autumnal shade of orange. Graphics folks did a great job on this. Ill go through what were going to run through loosening the belt, kind of a sign of how the bond market has helped the market get to where we are right now generational frictions, different classes of tech stocks, very different experiences, wellbalanced menu, Asset Allocation has worked very well this year kind of quantify that. Homes for the holidays little bit about housing loosening the belt up 26 year to date on the s p 500. Up 17. 5 , Fourth Quarter decline last year. How did we get here . To what do we owe this bounty . Multiple expansion 14 times forward multiple on the s p a year ago, you said were going to add almost 4 points to that, i dont think a lot of people were really in that camp and would be able to ride out a flat earnings year look what happened to the tenyear treasury yield, going exactly the other way. The fed is out of the way of the markets. We have a very benign information where very low yields but not really looking at a recession right away is really buoying pe multiples here is the trick, is it foretelling were getting a return to Earnings Growth next year thats the prem iises to allow this to go up and this down. Thats a prime example of exactly how we got here in a flat earnings year, guys. I should stop by saying its good to talk to you all well. I havent seen you all day. I know, just from afar. The interesting thing on this chart, if you did this with europe over the same period, you would see a similar move in rates lower but would actually see e multiples track lower as well, which is kind of a fascinating different example where qe hasnt really worked and you could argue thats because the bond market isnt as well developed it has worked essentially here is what that argument is showing. Right these low yields have created tr tremendous corporate accreditation. Bank stocks have started to perform over here but the financials and oil stocks, its not necessarily apples to apples this is pretty much a growth index right here, one reason its been able to support these evaluations. I get it, mike. You put the whole situation in orange you give us these easy to understand themes here clearly, were talking about thanksgiving. Youre welcome. Yeah. I appreciate it. You should be thankful. He has had some obscure ones lately its been a little tricky. In that chart that mike is showing, like youre seeing bonds and stocks work this year together Goldman Sachs pointed out yesterday this is the best year for 60 stock, 40 Income Portfolio since 1998 in 21 years, you havent done this well in a diversified portfolio. Be thankful. Josh gave you a preview of our third dashboard. My bad. Unless youve held stocks like slack. That shouldnt be 60. No. That should be this big within the 60. All right. Mike, thank you very much well see you later. After the break, shares of underarmor are down in the last six months but one investor says its an underrated underdog. Why, next. And apple doubles down on hos. Wireless headpne if youre hoping to get them by christmas, you may be out of luck those details coming up in the market zone. Danafarber Cancer Institute discovered the pdl1 pathway. Pdl1. They changed how the world fights cancer. Blocking the pdl1 protein, lets the immune system attack, attack, attack cancer. Pdl1 transformed, revolutionized, immunotherapy. Pdl1 saved my life. Saved my life. Saved my life. What we do here at danafaber, changes lives everywhere. Everywhere. Everywhere. Everywhere. Everywhere. Im a regular in my neighborhood. Im a regular at my local coffee shop and my local barber shop. When you shop small you help support your community from after School Programs to the arts so become a regular, more regularly. Because for every dollar you spend at a Small Business, an average of 67 cents stays in the community. Join me and American Express on Small Business saturday, november 30th, and see how shopping small adds up. Dick sportings goods posting several strong delivering a premium Brand Experience for its partners, mainly up 50 for the year and double digit growth for online sales next, Raymond James believes in one of dicks partner brands calling underarmor underrated. Trading at a discount relative to. Netflix is facing rising competition from the likes of disney and apple Jp Morgan Says this will be good for the company, accelerating the shift away from tv Nicole Sperling from the new york times. Bernie, is that the way they should be framing this, shift away from linear tv versus these streaming services right now theres about 100 billion spent annually on the paid tv ecosystem versus 15 billion for the marketplace. Net fliks is the lions share of th that it will benefit all players. A buy rating on disney because of that, going from zero to 10 million. Did you welcome when a company like netflix spends more on a movie versus more on tv episodes which kind of attracts subscribers better marking a change in strategy for netflix historically budgets for movies has been much smaller. The oscar nominee last year had a 15, 20 billion irishman is 160 million, underground 6, massive budget. And next year a 200 million budget massive budgets that the company is spending. Historically, movies have been a major driver of subscribers. 23 million households watched murder mystery. That was also in q2 when subscriber decline. Whats on the line with the release of irishman . Theyve been applying a lot of money and marketing into this films release, whether you think about them taking over little italy here in new york city and throwing it back to throwback to the 1970s or Movie Theater releases in two very iconic wellknown theaters, with one on each of the coasts. Yes the irishman is a big deal for netflix this fall, both from a subscriber acquisition standpoi standpoint they had roma and spent tremendously marketing that film they did well at the oscars. They were nominated in best picture for the first time, and had a good run alfonso corone won for best director best picture prize is what their eye is on. They want to prove theyre a home for filmmakers and thats why theyre sxabd expanding into the theatrical space more so than ever before, to the chagrin of many theaters who will not play by netflixs rules. How does netflix gauge success for a movie like this . Its not box office sales, right . Is it the amount of subscribers that stay glued and watch the movie . Well, they do not share Box Office Results so we do not believe that box office is important to them. Yes, subscriber acquisition is what theyre all about with this added competition from disney plus and hbo max coming down the line and peacock after that, there will be additional competition not to mention all the out of home theatrical movies out there, plus all the other content thats available to be streamed. Josh, is netflix still a momentum and subscriber number stock or is it going to transition in the near future to being the multiple stock i think its largely being druven by whether or not they can keep the u. S. Audience, keep not just subscribers coming in, but the engagement, but then also the international has been the bigger driver. And i guess my question would be understanding that the movies have not driven new subscribers, but do the movies hold people longer do they keep peoples attention more do they maybe prevent people from canceling because of these types of events where you say i really dont want to leave netflix and go to disney, i want to keep both, because i dont want to miss things like the irishman when they happen even if theyre only once or twice a year what are your thoughts on that certainly we havent seen that yet, keeping subscribers in the platform necessarily with disney plus, theyre releasing it, well have an episode every friday till the end of the year. Its episodic. Exactly. Baby yoda craze that seems to be taking on new you cant go through instagram without seeing a meme. Thank you for joining us, bernie mcturnin and Nicole Sperling we have less than half an hour to go here are the three things driving the action right now slue of strong data, as u. S. Economic growth rises by 2 . Other positive signals from business and the consumer. Stop me if you heard this before investors are being bullished. Stop. On news of a trade. Were on record close watch again for the s p, nasdaq and dow. It is time for a cnbc update with sue herera. Hello, sue. Hi, wilf. Hello, everyone. Canadian trade Officials Say they are encouraged when it comes to where the conversations are of the usmca, formerly known as nafta a vigil was held in vietnam to honor the victims of a Human Trafficking incident last month 39 bodies were found in the back of a truck in england, the alleged driver of that truck has pleaded guilty to charges, including assisting an illegal immigration. A lawsuit filed on behalf of charlottesville, virginia, Community Members against hate groups is headed to trial. Stemming from violence at unite the right rally in 2015. That trial will begin in october 2020. As millions hit the skies for thanksgiving, new study unveiling the airlines with the healthiest menu options, Alaska Airlines and air canada tying for the top spot ill send it back downtown to you. Interesting i want to know more details. Are you one of those people who eats on the plane . I love a plane meal. Wow, okay. They take into account the number of calories per item and the amount of sodium and how many fresh offerings in other words, do they offer you the choice of an apple or fresh fruit, or nuts with your meal. There you go. The move is to bring something on the plane from the airport. Unacceptable if someone does that with shake shack and pizza. The smell, i know. Like a sandwich yeah, yeah not cooked food. Easier to do in heathrow than jfk where the options are terrible. Thanks. See you again next hour. With 27 minutes left of the session, set for record closes once again the dow is higher onetenth of 1 coming up, your last chance trade and josh is hoping a small play leads to a big payoff. Later, before this was beyond meat, before impossible foods ever hit shelves, there was tofurkey the iconic turkey alternative about the crowded fake meat market the tenyear currently yielding 1. 67 . Closing bell will be right back. Hes finally here hey how are you . Im good. How are you . Hello grandma for every family going home for the holidays, there are countless people working to help them get there. Thank you to everyone we rely on to get us home to the ones we love. The amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. Welcome back weve got about 24 minutes left of the session lets get over to mike for the second installment of the market dashboard. Good to speak to you. You as well, as always. Theyre in place here in the stock market, too, with regard to old versus new tech this is not really a new story look at the chart here over the last year or so of a handful of old versus new im going to put microsoft in new. Ill talk about that in a second microsoft, nvidia and facebook up over the last year. Dell has underperformed and is having a hard time today hp and cisco theyre all older and wedded to older infrastructure on average, these three traded ten times, on average these three traded at 30 times earnings were clearly in a market that wants the new thing, the disruption theyve become new generation tech its kind of a Cloud Business all together as well as a bit of social exposure there, too the market can be persuaded. You can can have a fountain of youth moment but its hard to get out of that old tech label. Does microsoft suggest that cisco or whoever else could suddenly get that multiple again if only they could deliver a couple more quarters of growth or is there something more to it im going to say no to suddenly, because it took microsoft a decade to kind of reorient itself and pull away. I dont know that its necessarily possible its definitely a long shot, if nothing else just given where our core businesses seem to be. Dell is trying to transform. Key point tech is leading the charge but it depends what type of tech youre talking about. Absolutely. Still to come, your last chance trade josh is taking a close look at small caps. Plus, were getting into the holiday spirit coming up, well dive into the areas of the market that tend to do well between thanksgiving and new years weve got the seasonality trade. Thats comg inup you should be mad that this is your daily commute. You should be mad at people who forget theyre in public. And you should be mad at simple things that are unnecessarily complicated. But youre not mad, because youre trading with e trade, which isnt complicated. Their app makes trading quick and simple so you can strike when the time is right. Dont get mad, get e trade and start trading today. By the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Of millions of americans during the recession. So, my wife kat and i took action. We started a Nonprofit Community bank with a simple theory give people a fair deal and real economic power. Invest in the community, in businesses owned by women and people of color, in affordable housing. The difference between words and actions matters. Thats a lesson politicians in washington could use right now. Im tom steyer, and i approve this message. I am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. 19 minutes left to go. Josh, what is your last chance trade . I want to talk about small caps for the sake of time, well use the iwm, the most popular etf you can use to get exposure to small cap index, mimics the russell 2000 this is one of the areas of the market that people would point to and say you see, the breakout is not real. A new 52week high we looked at the data, with small caps, once they do break into a 52year high. Its not encouraging youre 10, 12 months out to get a much higher return than average. With small caps its lower so one distinction you want to make, and my friend Ryan Deitrich has done this when the russell has take n longer its taken 15 months for the russell to break out its positive. You want to see this kick in but just remember, its not quite as momentum driven as the s p 500, large caps. There is more volatility here. If youre taking this as a trade, you should stop. 5 from its alltime high which came 2018. What do you make of the fact that it hasnt caught up what happens to do with the russell has to do with the Financial Service sector banks are the highest weights in here and, of course, they dont have the best stocks in the world microsoft, apple these stocks have driven both the nasdaq and s p all year this year it takes a lot more to move it that being said, historically, back to 1978, it has outperformed, it has done very, very well. It tends to be streaky it is not the same thing as an s p breakout but notable nonetheless. We have got 16 minutes left the session. We are higher by 31 points, half a percent for the s p. Nasdaq, the last commercial break were going to take before the close. When we come back, well go inside the market zone servicenow put our workflows in the cloud. This changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Less than 13 minutes left in the trading day. We are on record close watch we are now in the closing bell market zone. Commercialfree coverage on all the action going into that close. Cnbc markets commentator mike santoli here to break down the crucial moments of the trading day and josh brown from ritz holtz Wealth Management did i get it right there that time youre killing it, wilf. Great doubling orders for air pods pro to at least 2 million per month. To date, luke ventures estimates apple has now sold 76 million of these wireless ear buds. The new 249 air pods pro appear to be a holiday hit. Fans who order from the online apple store wont receive the product until december 30th at the earliest, though they are shipping to apple stores and other retailers. Amazon is selling them for 235. Tim cook told cnbc he was manufacturing the most airpods he could, but there could be a supply issue obviously cook wants consumers to have the products theyre looking for. Still in the scheme of things, cook told us, thats a good problem for apple to have. Guys, back to you. Josh, we know that services carries the highest margin, of course, versus hardware. Do we know roughly what the margin is for this part of the hardware portion of what they sell versus an iphone or other wearables . I dont think its the margins so much, wilf, that investors are focused on i think the bigger story and why investors care about this, listen, is because analysts, by some of their math, if services and wearables can keep growing at the rate they do, then they think that apple can keep seeing accelerating growth, even if iphones remain flattish. I think thats why theres a lot of focus on that division. Mike, josh, thank you mike, good problem to have or is this just one more thing where in a year shares of apple have absolutely sky rocketed . I think its a grood problem to have, but its also news thats hitting a market thats not overthinking it and is willing to believe and buy the big name, obvious stocks youve driven apple to above a 20 times pe on a forward basis remember how it used to be cheap forever . Obviously theyve revalued it higher this is another thing people can put on the list. You used to denegrade apple and say its just a Gadget Company now they cant make enough of their gadgets. Beating earnings estimates, fiscal 2020 profits in the agriculture space, deere forecasting sales to decline 5 to 10 , not just Farm Machinery where theyre forecasting that either reflecting slower activity there. Also Financial Services weakness john deere capital came under pressure due to operating lease losses down 15 from 2019 to 2020 financing sales as well, whether this is, josh, just dea deerespecific situation or can it play out with caterpillar if i explain to you the impact of the trade war and say think of the stock most affected, you would say deere. It wouldnt even be hard for you to arrive at that answer. So it bounces back when the phase one is done . Potentially its not had a bad year, by the way. Its not just trade either, though youve had terrible weather here in the middle of the country the farmers, the Farming Community has gotten it from all sides as well. Trade war is a big piece of it but not the only thing. Farm incomes have been depressed five, six years in a row, first time youve seen that outside of the 1970s due to inflation. Good economy, which does not help agriculture, then this whole mess with china not buying as much. Subsidies, but the farmers arent using that to buy equipment. Theyre using that to, like, put food on the table. Its mazing that deere is where it is, probably because the stock market has been so good. If you had to guess who is going to get hard, its obviously firsthand Farm Equipment sales and the dealers have tons of inventory. Its not a good situation. Because if deere is declining, industrials are the only sector on the s p down twotenths of 1 seven minutes left the trade. Phil lebeau is at chicago airport with more on boeing. Hi, phil. Reporter another example of the faa making it clear it will be much more diligent when it comes to recertifying the 737 max. It sent a letter to boeing yesterday basically saying its max plan includes faa air worthiness representatives or inspectors checking each plane individually in the past they might designate an air worthiness representative from boeing and say you have the authority to sign off on the planes thats not going to happen now faa is going to do each of these planes individually. More than 350 are awaiting delivery theyve been built theyre parked either on the tarmac outside at airfields on the west coast theres no timeframe for certification. Compare that with boeings timeframe for the 737 max. It is still sticking by its guidance it expects or is targeting a recertification of the plane in december. Delivers potentially by the end of the year and potentially, depending on the airline and whether or not its been approved and all the Pilot Training has taken place, some commercial service could start by the end of january or late january. Take a look at shares of boeing, down more than 1. 5 points or 1. 5 a 777x was going through certification testing of its own. Basically they were doing stress tests on the fuselage of a 777x. The fuselage tore open this happened back in september. This will get a lot of attention. Bottom line is that it may not get a lot of attention from analysts and investors because its unlikely to slow down the production, first flight is expected early some Time Next Year back to you. Thanks, phil. In case they can hear all the jingle jangle, i want to remind our viewers that santa claus is here on the floor, getting ready to ring the close ahead of macys thanksgiving day parade. Santa i know him all the celebrities that have come through here, this is big for josh you got your phone out, making a recording of it. Im pretty exciting. Ask what his Stocking Stuffer is. There you go. I know i know its a bad, bad joke mike santoli, when you look at the dow, poised for another record close biggest drag is boeing. Look, shoveling in this pretty wide range all year is this a lost year for the model . Will it be more than that . Right now its a similar story you see it still has kind of made progress in the last couple of months. Yes, its a drag on the dow because of the price weighting, but i dont think it changes the broader story that its sooner than later, maybe not as soon as we like that it gets recertified. Softbank after a string of bad losses. Its some of the vision funds highest profile investments have led to a 6. 5 billion loss at Softbank Group shares have fallen nearly 20 the last six months. It may come as no surprise that softbanks biggest investors are criticizing the company, capital group, Southeastern Asset Management are putting pressure on softbank for those bad investments and also for its plan to help raise cash for vision fund 2, which involves lending billions of dollars to softbank executives. Those investors not commenting or responding to request for comment. Softbank says vision fund 2 is, quote, progressing as expected back to you. Deirdre, thank you for that do you believe this is the end of Softbanks Vision Fund future funds . Youve got to be kidding me. A boisterous response to this. Thats over an era has officially ended. Now its to salvage operation. You never see anything like that again. There you go. Until five years from now. Public investors trying to go up against softbanks eternal time horizon not a fan. 100year time horizon what are we talking about . Its insanity. Several record highs again. Mike, what stands out for you . Pretty healthy. Nasdaq new highs and lows. A week ago i started talking about stubborn increases not the case today, over 200 new highs, very much a confirming figure month to date, growth versus value in the s p its pretty much neck and neck this market is rar rewarding all kinds right now. Apple, holding value. Two minutes left to go here lets send it over to Rick Santelli for a check on bonds. Hey, rick. You know, we had some solid data, whether you looked at the proxy for business spending with durable goods up 1. 2 , durable goods up. 6 intraday of twoyear note yields, shortest maturity. 30year bonds, they pop. You can clearly see not as much. Yield curve flattening twos, tens, tens, 30s, fives, tens finally, dollar index. Chart from early october sevenweek high close today. Kate rogers, two days with 8600. We already popped over 8700. Hi there, rick. Thats right the nasdaq is higher by more than half of a percent right now, best of the three major averages today in terms of performance, russell 2000 h hitting new 52week highs today, thanks to names like jcpenney and fitbit biggest gainers in terms of percentage, auto desk, thanks to that strong Earnings Report that they just had, other big gainers, Western Digital and micron big tech names including apple, amazon and facebook are adding the most points in terms of the nasdaq today ahead of black friday, dollar tree is the biggest loser in the nasdaq 100 along with ulta and american airlines. Bertha coombs, im going to send it over to you. Today here, alltime highs, health care is on pace to be the biggest sector of the month. Ultimately for big pharma with ameri merck hitting an alltime high biotech on pace for the ninth straight week of gains, part of the reason theyre seeing strength in small caps and there we go on the closing bell with omaop savings bank ringing the bell and macys thanksgiving day parade happy thanksgiving, everyone. Santa has some Serious Energy welcome to the closing bell. Im wilfred frost. And im Morgan Brennan in for sara eisen along with mike santoli, market commentator. The dow only gaining slightly because of the drag of boeing. It was still positive. S p up. 4 . Transports were lower as for the s p 500, 25th record close of 2019. 11th time weve seen a record close this month alone joining us to talk about the market day, josh brown from ritzholtz Wealth Management. Thomas frost from frost frost Wealth Management. Mike santoli, ill start with you. Another day, another record here. Yes its slow momentum but its real momentum nobody would want to stay in the way of just a seasonal effect, the fact that we have this benign backdrop in which bonds are trading and given a pass to any soft economic. You have decent economic numbers this morning from the gdp, durable goods, which kind of fits right in with what the market has been trying to get hold of, which is that weve had a trough in economic activity. Its been forever since weve had even half a percent pullback i think that happens when essentially its dont fight the tape and dont fight the fed type market. Nobody is fighting this market. And thats helping bond yields as well today. Absolutely. 1. 76 or 1. 77 on the tenyear thats confirming what the stock market has been trying to do. Josh, santa rally i know people hate when you do this, and im going to commit not quite a chart crime but an index crime. If you pull out boeing and you pull out 3m and exxon, you probably have the dow 30,000 conversation it just so happens you have three of the more higher priced stocks just not having a great year this year. So only 10 of the index. But boeing is such a specific stock. So unrelated to the overall market so i think it gets an asterisk. Thomas, where do you stand on whether theres still upside left this year we think there is what a difference a year makes, right . A year ago, the fed said well be raising rates, a long way from neutral in the midst of a slide. Things are completely different. Valuations, when you look at Interest Rates, inflation. Theyre not too high we think theres some really good buys out there. Were very, very happy with where things are obviously we would like to get some of the bad news out of the way, like china. We continue to hear about china. We think theres still momentum and still gas in the tank. Thomas, what do you think were talking about in the last hour as well but in the russell another 52week high here. Yeah, morgan, great question. Thats really, really good news. Whats really led to rally, really, the last 11 years, has been large caps. We really needed small and mid caps to recover as well. When theres larger breadth in a recovery, thats good for everybody. Frankly, its been hard. As we keep our clients diversified and were not trying to chase certain sectors, its been difficult when a client looks at their portfolio that has smaller mid cap exposure, compares it to large cap it took like 15 months for us to finally get a 12month high on the russell 2000 this goes back to what we continue to tell our clients, that this is a healthy recovery and its not just one sector thats doing well. Everyone, stick around here on the panel going to bring in another guest who is finding that the s p 500 has posted its best average performance in the month of december with the broad market returning 1. 5 , 74 of the time. Lets bring in chris johnson, jo Johnson Research group chris, this upcoming month stands out as a positive, even when weve had such good gains coming into it yeah, absolutely, wilf. You heard the message, kind of that fomo market right now this is a slow burn higher there is money left on the sidelines. Little concerned we could get complacent here. When you look at the seasonality alone, s p 500 is where you want to be as you head into the end of the year. Theres going to be a lot of positioning, especially from the active managers that kind of pull back on the market in october and september. Youll still find that money trickling into the market before those yearend statements print out. Good time to be in the market. Chris, any specific stocks that tend to perform well, talking about the seasonality trade versus others . Sure, morgan. Typically when you look historically, technology is one of those areas small caps as the previous guest mentioned, they get a nice kick at the year end. A lot of people looking to get into alpha generating possessions toward the end of the year right now, you have to look at the semi conductors. The risk is being pulled off or at least the fear is being pulled back on the trade war that will be one of the sectors that takes advantage of this also health care is one of those sectors thats strong as we head into december as well. Lot of posturing, especially with the political scene changing thats another one of the sectors that you really do want to focus on. Mike, to what extent could the data that weve seen start to change the conversation from what to expect from the fed next year the threshold is pretty high for that right now in the 2 zone for growth, the fed is now very explicitly and very carefully focused on getting Inflation Higher theyve changed their metric for whats going to motivate the next move. Its not kind of bad news become good news on the economy for a while, which is why the economy is reacting. Its not so much when does the fed come back in the picture but do we stretch this market high enough with valuations high enough that the recognition that hey, guess what, we have a steady 2 economy is no longer a relief but a disappointment . I dont think were at that level yet. The last time the fed had to do that is really like 04 to 06. Right. The last tightening cycle is not about oh, no, the economy is too strong its about normalization youre suggesting this would be a different narrative. The other wild card could be inflation picking up interestingly with the discussion we had with Steve Liesman earlier, china has got a little bit of evidence that inflation is picking up. In fact, the uk does as well that would be a wild card. To me what would happen there is not so much that the fed gets very active but the long bond yield starts to get higher because it gets nervous about inflation and that would be a pinch on valuation i dont necessarily think the fed would come and halt it if the fed is saying we would be happy with 2. 2 inflation, not 1. 8, the long end of the curve will react to that. Tom, to go back to the seasonality discussion as we get into the Holiday Shopping and shipping season, i mean, its been really very marked winners and losers in terms of retail. Are there places where you see opportunities . Yeah. The opportunities that we see continue to be in the areas where because look, retail went there was an apocalypse what happened for them with amazon the Big Box Stores had to change or die we still look for the companies that have made the adjustments, that have grabbed ahold of online shopping. Weve got Great Stories out of best buy youve got good stories out of walmart the last few weeks target we continue we like the sector its kind of hard to overlook the online part of the sector that theyre projecting to be somewhere between 14 and 18 yearoveryear growth. In comparison to the entire sector thats low single digits. Theres going to be good opportunities there. But yeah, weve got to go to the companies. Shopping has changed the idea of having our turkey and going to bed early so we can get up at 3 00 in the morning and stand in line, those days are quickly coming to an end people dont just want to shop on that one day. They want these deals to be all throughout the year. Theyre going to be online this weekend. So, i would were cautioning our clients, lets not focus on black friday lets focus more on the season and the way the season does. But look, the consumer, they want to spend. They want to spend. All right thank you for joining us, josh brown, tom frost and chris johnson, and happy thanksgiving to all of you. Thank you. Thank you coming up, social capital chapelath sounding off up next, vice charm of the nyse about the new proposal to change the game of going public closing bell is back in 90 seconds. Boxed in, or held back. Especially by Something Like your cloud. Its a problem. But the ibm cloud is different. Its open and flexible enough to manage all your apps and data securely, anywhere, across all your clouds. So it can help take on anything from rebooking flights on the fly, to restocking shelves on demand, without getting in your way. Welcome back im just looking at that graphic below. There it goes. With the alternatives to the traditional ipo process the company is seeking to go public, rule change proposed in a filing of the s. E. C. , first day of trading and raise capital, opening the door without funds to go public without an ipo. For more, lets bring in john tuttle, New York Stock Exchange. Thanks for joining us. Great to be here. The main difference was you didnt need to raise money or needing to raise money for a direct listing is that right . Thats right. Take a step back, a project we started a few years ago when companies started to come with us and say how can we decouple the fundraising event from the listing event . And now this change would split that difference once again. It would. Were allowing two things. Filing the proposal for rule making with the s. E. C. First, its going to open up the direct listing option to a broader range of companies, giving them the option to pursue that path. The second is for those companies that choose to tie a Capital Raise to their direct listing, theyll have that opportunity as well. So i realize this has been something that has been in the works for a couple of years, but how much of a Tipping Point have we hit this year, given the results or the performance of companies that have gone public more traditionally its been a mixed bags for companies that have gone public this year. Theyve come out a little earlier in their life cycle and companies that have come out a little later in their growth cycle, not perform as well this is another pathway for them to go, aside from the traditional ipo. Mechanically, a company that was interested in raising capital at the direct listing moment, how does that happen is this a big trade that happens . Great question. Its very similar to the direct listing we have now. A lot of investors, employees, current owners of the company are selling their shares to the public n slack, that opening trade was 1. 6 billion first trade. What were proposing now is that for a company, if they want to share sells as well on the day of listing, they would be able to join those existing shareholders in selling their stock. The only caveat being it has to be one time, one price thats the opening option on the New York Stock Exchange on the first day of trade. Would they be committed to a certain size of the sale or how its shaping up and say i would offer a certain number of shares minimum requirement the combination of the companys shareholders and the companys new shares being sold to the market have to be at least 350 million to ensure sufficient liquidity, buyers and sellers there in the market. With slack it was 1. 6 billion in value. How much of this is going to phase out, compete with with direct listing is for companies that decoupled the Capital Raise from the listing this just gives companies the option, should they choose to, to tie that primary raise. These conversations youre having certainly Silicon Valley is all over this, venture capitalists and Tech Companies are looking at this closely. Other industries or sectors that want to do this as well . Weve been getting inquiries from a whole range of sectors and companies outside the United States interested in exploring this option. Will this allow you to cut out the investment banks the investment banks, contrary to what you read in a lot of the newspapers, play a very Important Role in the markets. Theyre underwriting the offering, allocating those shares, stabilizing the stock. In a direct listing, they play an equally Important Role as the financial adviser. Investment banks played a slightly different role in spot if i and slack but still an Important Role going forward. If theres a Capital Raised to a direct listing, they wouldnt be underwriting any of that therefore, a significant part of their fee raised in an ipo would go away . Thats how it is in the traditional ipo. They receive part of the gross spread, the amount theyre underwriting in a direct listing, instead of being paid that fee, they were paid whats called an advisory fee for their role as a financial adviser, since there is no underwritten offering. Some sort of blend of the two is what you would expect to see. Were talking about basically a new way of doing a direct listing. Weve also seen the special Purpose Acquisition Companies become more popular. We showed a xwrask that had Virgin Galactic that came to market because of spac. We want more companies to be public my colleague, stacey cunningham, wrote an oped, talking about the social good of companies being public and investors being able to participate in the growth were focused on finding pathways for companies to come to the market, whether it be through spac, direct listing or traditional ipo or something new down the road. If traditional trade raised within the direct listing has to be 350, it still has to be a relatively goodsized company. The traditional ipo was much smaller than 350. Right that is an aggregate of the shareholders, employees and investors participating in the direct listing. If theres that much value to turn over on the first trade you probably have to have a multibillion dollar value to the company. Thats the Profile Company that would be most looking for a direct listing. What do you put that down to, recoverable next year . We have a great team focused on helping Companies Invest capital. Look at the followon proceeds, how much weve helped Companies Raise capital this year, were number one in the world again by a distant mile and so as we look to 2020, we expect to maintain our leadership spot. John tuttle, happy thanksgiving. Thanks for having me. I want to come back, very quickly. Oh, here he goes. Ft article puts it down as 32 billion raised from 153 ipos for the nasdaq, 26 billion, 46 ipos. Ipos and fall one offering, capital weve helped Companies Raise this year is well over 1 billion. Youve said it twice. I dont have a followup statistic. Well break down the stocks, what resulted in the best balanced portfolio mix in more than 20 years. The first baby yoda merchandise hitting disneys website as the Holiday Season kicks off. These may t nobe the gifts fans are looking for. Well discuss. When you shop small you help support your community from after School Programs to the arts so become a regular, more regularly. Because for every dollar you spend at a Small Business, an average of 67 cents stays in the community. Join me and American Express on Small Business saturday, november 30th, and see how shopping small adds up. Wthats why xfinity hasu made taking your internetself. And tv with you a breeze. Really . Yup. You can transfer your Service Online in about a minute. You can do that . Yeah. And with twohour Service Appointment windows, its all on your schedule. Awesome. So while moving may still come with its share of headaches. No kidding. Were doing all we can to make moving simple, easy, awesome. Go to xfinity. Com moving to get started. Lets have a quick look at how we finished the day. Wall street up higher, 1. 5 on the dow, because boeing lagged that index anything positive today would have been a record close for the three major averages nasdaq up. 6 , russell up 0. 6 not a record alltime closing high for the small caps. Mike santoli has his third dashboard of the day. Morgan, wellbalanced menu for investors has been pretty satisfying josh brown alluded to this earlier. Performance of a traditional balanced portfolio mix of 60 stocks, 40 bonds, that Asset Allocation, the annual total return logged by such a mix each year with a month left to go, 20 total return, including dividends, interest and price returns, that is the best number since 1998, which was in the latter part of another bull market 1997 and 1995 before that. What are the interesting things about those three years, especially 95 and 9 was a similar setup where you had a near recession scare you had the fed cut rates three times and stop cutting rates and a recession was averted. Stocks and bonds both performed very well in the wake of that. Thats pretty much the formula weve had here i should point out nominal bond yields were so much higher back then that in a way it was almost more impressive right now. You have this total return when you started the year with 2. 5 treasury yield as opposed to four, five or six. On those years of high returns for the overall portfolio, how many times have we seen both the portfolio of equities and bonds move meaningfully in both those years im mentioning, thats exactly what happened. In order to get a plus 20 return for the entire portfolio, all of those cases not in all of those cases back here in the 70s, nominal bond yields were so high because inflation was so high, it was basically able to offset weaknesses in stocks i think theres sort of a before greenspan and after greenspan effect in both cases thats been going on one industry ceo says low prices are actually to blame for a shortage of key medicines. Details that coming up. And original plantbased protein. Well hear from the creator of the iconic tofurky brand and do a love taste test right here on set. Well be right back. Who says our bank isnt tech enough . Everyone, look at your phones. The design thinking, the digital engineering, security, blockchain, and we will be first to market yes. When we do we launch . Unfortunately, in 2 or 3, hours. Why the delay . Cognizant is helping banks use Digital Technologies at scale to advance speed to market. Im part of a community of problem solvers. We make ideas grow. From an everyday solution. To one that can take on a bigger challenge. We are solving problems that improve lives. Time for a cnbc news update with sue herera. Federal District Court judge ruled that former White House Counsel Don Mcgahn is not immune from house subpoena has agreed to put her ruling on hold, allowing the government to appeal the decision, after a request from the Justice Department amazon is hiring 200,000 people for the Holiday Season as retailers push to keep up with growing online orders and faster delivery. Brutal weather is making prethanksgiving travel tough on Many Americans today massive storm systems are hitting the midwest, creating hazardous road conditions. Minneapolis could see five to ten inches of snow before the storms clear out and finally, speaking of the holidays, parade preps are under way for the annual macys thanksgiving day parade. The balloons will be inflated for their flight through manhattan tomorrow though it might not be quite as smooth as some people hope because the winds and strong gusts may ground the balloons. If it goes over 36 miles per hour, i think thats the threshold. Keep your fingers crossed that the balloons will be able to fly. Thats your news update. We will. Have a great thanksgiving. We had a sneak preview of the parade. I know. Santa claus. Santa claus is here. Its the most wonderful thing. My family loves it we sit on the couch, have a cup of coffee, watch the parade. Only a cup of coffee, sue yes. Anything a little stronger . No, because im cooking im cooking two turkeys tomorrow and if i start with the eggnog, no one will get any food. Ill have one for you. You go right ahead. Happy thanksgiving. You, too. Companiy Drug Companies have blasted for skyhigh prices but also under siege for drug shortages. Far from the only drug in that situation hundreds of medicines in shortage going back at least two decades from antibiotics to pain medications to treatments for Childhood Cancer and its a widespread problem across the industry, too take a look at the companies with the most drugs facing shortages. Mylan and teva on there as well. Theyre often old and cheaply price yet complex to manufacture. When theres a manufacturing issue or a Company Drops out of the market, supply can get squeezed we asked mercks ceo about ceg in june. It will be a problem that will continue to be for us going forward. When the prices of drugs get too low, specifically generic drugs, you dont have the market incentive for people to put up the facilities. Why not raise the price of the drug they said it wouldnt be the responsible thing to do. Meg, this story is starting great reporting all day on cnbc today. Im curious how this will factor in, or if it is factors in at all to the conversations were seeing in d. C. , the administration or candidates around drug pricing more broadly. Great point, morgan so much of the conversation has been around high drug prices this is often a result of drug prices being too low and not an appealing market for Drug Companies to get into. Weve seen legislation introduced by Susan Collins and others focused on this issue fda has formed a task force around it. Theres movement but it doesnt have the same ground swell as the outrage over high drug prices its happening everywhere, hundreds of drugs, guys. Meg, if we look at a drug thats not just come out and theres only one option where were ten years past and there might be some generic options for it, how easy is it for the patient to change the drug theyre on between other brand names . Is that something that varies from condition or tends to be hard no matter what . It can vary in condition and on what your insurance is really its based on your formulary plan some Companies May have deals saying this drug is above this drug, based on a complex rebating system weve been hearing about in the political world as well. It can be complicated to switch back and forth from one drug to another. If you want to get the branded medicine, you can ask your doctor to write do not substitute on your prescription slip but that can be costly, too. Meg tirrell, thank you. Happy thanksgiving as well. Thank you. Serving up the meat that was here before beyond meat. Tofurky ceo joins us brakes screeching okay. So, today youre going to leave your phone with a guy named flip. ding but its more than your phone, its your business, your customer data, your sales figures. And who can forget, those happy hour selfies . Not flip. honking, gasping this isnt working. Introducing samsung Business Security solutions, with knox software. With the galaxy note10, you can remotely wipe data or lock phones, so your business is secure even when your phone isnt. Samsung business solutions. Eve[maniacal laughter]snt. Gold. Gold right, uh. Thank you, for that, bob. But i think its time we go with gbtc. Its bitcoin exposure through a traditional investment account. Nice rock. Its time to drop gold. Go digital. Go grayscale. vo the flock blindly flying south for the winter. They never stray from their predetermined path. But this season, a more thrilling journey is calling. Defy the laws of human nature. At the season of audi sales event. The amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. Were serving thanksgiving a few hours early here the plantbased meat market has grown 30 the past two years, on the backs of beyond meat and impossible foods surging in popularity long before their arrival was tofurky, that has since become a pop culture fen om na none here with us is seth tibbot. Thanks for joining us today. Great to be here. Happy tofurky day. Surely, thats tomorrow. Okay. Splitting hairs here. So, lets talk a little bit about tofurky. Have you seendemand grow, especially as this idea of plantbased proteins continues to gain strength and gain traction in popularity oh, yeah. This has been a great couple of years, you know. The food market for alternative foods has been steadily growing 4 , 5 for many years. In the past 18 months, weve seen anywhere from 15 to 45 growth its really just a lot to keep up with. And, seth, explain to us what the difference is between something that is tofu based and what the likes of beyond meat and impossible are doing today with what theyve said are plantbased meats . Organic tofu, traditional soy food from asia and a lot of the newer proteins are more industrialized form of soy. Its an isolated soy protein or pea protein isolate. We are more based on tofu and tempe, which are more lightly processed forms of soy. Given the fact that beyond meat and impossible foods have soared in popularity this year, and were seeing other competitors, other Big Food Companies starting to develop their own versions as well, how would you assess the Competitive Landscape . You know, we love to see the brand, all these other new brands its really the tide that floats all boats kind of fen om phenomn we want to see all of these companies succeed because a, its in our mission to see plantbased foods survive and become the new paradigm, which theyre well on their way to its also a business reason, which is its easier for us to place our products in supermarkets were in 27,000 stores worldwide. Right now the sun never sets on the tofurky empire were in the uk, australia, and all over the world, including antarctica, by the way its great to see noise in the category is see the category very healthy. Antarctica, okay. In terms of the placement in the grocery stores, certainly weve seen those other brands getting placed in the meat sections. Tofurky is typically in the produce section of the store would you be looking to move that now possibly but it would take a whole new packaging lineup for us were really happy with the produce section. We know a lot of our flexetarian and vegetarian shoppers go to the produce section any how. Sometimes were in the natural set. Not so much in the meat section. Is thanksgiving itself, given the headline name of the product, is this a huge day for you, relative to sales of the product across the rest of the year yeah. This is a great day for us tofurky deli slices, sausage, chicken, we have 37 turkey products we just launched, actually, a new brand called mucho that has cheesecakes, frozen pockets. So in the early 90s, this was the day that made or break the company, and that was like 45, 50 of our sales were during the Holiday Season but right now, its more like 10 to 15 , because were so busy all year round, trying to meet this demand, that its a great day every day. Seth, you mentioned, obviously theres a virtue of being a pioneer in this area and you mentioned maybe its easier to get shelf space given the popularity of plantbased foods here is there also a challenge of appealing to a younger consumer right now who maybe has known about tofurky but is interested in things that seem more uptodate yeah. You know, that is a great point and its always a struggle to keep your brand relevant and young and sexy, as it were but, you know, millennials now are going crazy for all plantbased foods and so many of them have been raised on tofurky. They know the name and the brand. And they heat it all the time, particularly the deli slices and sausages we have we get comments all the time from the millennials who i think are one of the strongest demographics for all plantbased foods right now. Seth, thanks for joining us. Yeah. Great to be here happy tofurky day. We have a nice book coming out that details the plantbased movement its called in search of the wild tofurky. It tells all my failures of losing money for 15 years and voila, coming to the fabulous wild tofurky. There you go. We look forward to the release of the book. Maybe youll come back then. Seth, thanks so much. Yep thank you. We also have some on set. Meantime, we do were going to sample it. Just for the viewers, it comes with stuffing. I think the Brussel Sprouts are separate that the team have pulled together. Yeah. Okay. Not looking forward to this that much, i have to say im going to do it, because i have agreed i will. Its okay. This is like a taste of my youth. Oh, yeah . I had a long stretch going vegetarian on and off. Im very familiar with the tofurky products. Maybe some gravy. Gravy would help. Different experience. What do you think its not great, im afraid. Im trying to be honest. I dont want to lie. But its not there we go. Thank you. All right im going to keep eating over here. The toetotoe battle that will never be forward. Each day our planet awakens with signs of opportunity. But with opportunity comes risk. And to manage this risk, the world turns to cme group. We help farmers lock in future prices, banks manage Interest Rate changes and airlines hedge fuel costs. All so they can manage their risks and move forward. Its simply a matter of following the signs. They all lead here. Cme group how the world advances. Cme group its got all my favorite shows turn oright there. Boom, i wish my Trading Platform worked like that. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. So servicenow put your workflows immhm. Cloud, huh . Your employees must love you. Thank you. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. I am full. Are you a story today the most valuable startup is attempting to separate tik tok. Based in china before and has come under increased scrutiny and committee on foreign investme investment tik toks huge growth, we spoke to an executive yesterday and asked about this very issue. Data protection is very important for us at tik tok. Its a Global Company here in the u. S. We operate out of l. A. We dont remove comment based on sensitivities around china or other governments. What were really focused on is building a platform where people can express themselves freely, be creative, joyful. Thats the main direction which has led to the growth of tiktok. Hisanswer yesterday pretty clear, abides by local rules, domestic rules and restrictions. I guess for them, an investigation if it happens will reveal the facts and thats what we should wait for theyre in this perfect storm of issues at the moment, which makes people worry about Chinese Companies or domestic issues with facebook and data privileges being abused. And Human Rights Violations and political issues over there. It speaks to how important data is and on a National Security level, Army Secretary Ryan Mccarthy came on the network because the army had received letters from lawmakers because there had been some recruiting happening, using the tiktok app you want to go where genz is to get that message and enlist people theyve put that on hold theyre now looking at vulnerabilities, investigating and sort of thinking about the use of tiktok and this use of technology we saw a crackdown where the grinder acquisition was concerned, too tiktok is in focus right now this idea of data as a National Security issue will continue to grow. Sure. It was a fun interview yesterday. Check out cnbc. Com for the full exchange. Mike santoli heads back to the telestrator with a look at one big bright spot. Disneys baby yoda bomb, debuts its clothing line and its not going down as well as they had hoped sanltly for the final dash board of the day. Pretty much all about going home this holiday. But homes have been very much in the part of the economic story this year. I mean its pretty well acknowledged that new home sales and existing home sales have been a god engine of the economy. This is a good apples to apples number on the pacing of new home sales over the course of each year s in 2009 right here you see no real falloff through the seasonal period which typically has a decline. These are the throe prior years. This is the new home sales not the huge engine of the overall Housing Market but obviously the trends are good and the market nick to do out. The Home Building etf, the compared to adjacent parts of the market and, homes a autos used to be influenced by similar dynamics, full employment, financing ability. And thats in green, the car etf struggled overall Consumer Discretionary of which Home Builders are a part has done fine but pretty much up and away for builders themselves. Obviously a net addition to Economic Growth to next year but you wonder if the market is getting too comfortable with the idea that it cant mips. We saw weaker than expected housing data point today and diana olick has been flagging this and reporting on it, the idea of the growing home shortage. Yes. Right now in the country. And so i wonder whether that is something thats ultimately going to weigh on some of the charts that you show us. Its definitely suppressing existing home sales because of what you would expect versus the shortage guess what tries to meet the shortage, the land availability. And they cant make a dent in it just the publicly traded builders the numbers and capacity are not there. Thanks very much. Still to come what do tesla, Manchester City and baby yoda all have in common they have wall street buzzing today and we break down the buzz when we come back. Oh, ho oh, ho, ho, ho you. You got me. Uh, what do you want . Ive got uh, ai robots, ive got vr goggles. I want your sled, please. No. [ chuckles ] timmy. Itd be a shame if this went viral. For those who never compromise. The mercedesbenz winter event. Whoa. He was pretty good this year. [maniacal laughter] gold. Gold right, uh. Thank you, for that, bob. But i think its time we go with gbtc. Its bitcoin exposure through a traditional investment account. Nice rock. Its time to drop gold. Go digital. Go grayscale. It also has the highest growth in manufacturing jobs in the us. Its a competition for the talent. Employees need more than just a paycheck. You definitely want to take advantage of all the benefits you can get. 2 3 of employees said that the workplace is an important source for personal savings and protection solutions. The workplace should be a source of financial security. Keeping your people happy is what keeps your people. Thats Financial Wellness. Put your employees on a path to Financial Wellness with prudential. Wedge back its time for the buzz on wall street the stories have have everyone talking today. At least us. First the update to the story we brought you yesterday. Its the toe to toe battle, get it that never will be. Ford now say going has nothing to prove to tesla and proposed f150 cyber truck tow battle musk says bring it on but meant to be tongue in cheek. Weak. Now, lego trolling Teslas Cybertruck too the company tweeting this. Writing the evolution of the truck is here popular guaranteed shatter proof. I like that. Thats classic. Respect. Lego slamming tesla over the armor glass shattering earlier this week. And guys, i maintain i mean musk come out and said 250,000 preorders and certainly we know thats 100 down and refundable, et cetera. But more than anything all of in just feels like one Big Marketing pile on. Well, either way, musk stepped up and challenged ford backing down thats pathetic i dont know how you do it fairly. He is that the issue, right. Yeah, yeah. Taking the risk of actually. I think thats weak private Equity Firm Silver Lake bought a 500 million stake in the owner of Manchester City, making the English Soccer Team or Ownership Company one of the worlds most expensive sforts franchising. Silver lake taking a 10 stake in the English Premier League team valuing the manafort city group at 14. 8 billion. They have other teams around the world but by far Manchester City the biggest. City revenue last year 600 million they are not public. The other teams throw in less than 100 million on top of that. Six times spaels is the multiple they paid for the purchase and investment compare that to others manchester united, which is the city on the Stock Exchange 2. 7 billiondollar market cap. Three times sale uventas about the 19 billion market cap about 450 sales six times sales silver lake put into this is extraordinarily hi. Yes. You add on top of that the middle eastern backers in the past have widely been around its not public numbers that they just pour the cash in not only is the multiple on revenues expensive but its almost certain that therapy not profitable. Leveraged heavily. Its oh obviously an asset play you think its scarcity value. Its like teams in this country on operating basis it it makes no sense to pay up the asking prices but if you believe the league is getting more popular, media riepts are god you can sell it down the road. But as a business its hard to justify. Yeah, i mean it also just speaks to the sky rocketing values in soccer you can talk about the name ekt with player values a couple years ago. This is creating its own effect as well. Just noting msg shares finished up because there is some analysis out this comparing it to msj. Thes nirks and rangers owned by msg. Expensive purchase and i hope Manchester City does better. In the meantime disney is dropping the First Official baby yoda merchandise and fans say it feels like forced many twitter users says ing the merch looks boot legged or made on cafe price. Disney wasnt expecting in level of demand for products featuring baby yoda. Amazing because disney does things well doesnt disappoint. No dolls for the kids its tshirts for 25. Accuses them of only being interested in the merchandising angle. Maybe its charging they werent ready. Its organic. Or short tithe zplood like tofurky. That does it for closing bell. You can catch us back here on friday at 12 noon eastern for shortened trading day. Happy thanksgiving fast money begins right now. Live from the Nasdaq Market site over looking new york citys time square this is fast money. Im melissa lee. Traders on the desk are steve grasso brian kelly guy adami tonight on fast, the rush is on. Millions of americans taking to the skies as we kickoff the busiest travel week of year. By the sunday could send the airlines sarg. Break out the textbooks because class in session warden professor Jeremy Siegel says dow 30,000 is on the which. He kbifs us the time table feast or fast,