Transcripts For CNBC Closing Bell 20240711

The year dow is set for a record close, approaching 30,000 with 59 minutes left of trade. Up 1 2 on the dow sara 29,830 currently. Coming up todays show, we are waiting president elect biden to make some comments on the economy. His economic plan that should come any minute. We will take you there live. In the meantime, a rare interview with operation warp speeds dr. Slaoui he will weigh in on the moderna news and what the rollout will look like. Plus the positive vaccine theus with mark moabious his eye on emerging markets. And mike wilson saying next year will be all about earnings we will discuss with Morgan Stanleys chief u. S. Equity specialist mike santoli joins us. Meg tirrell has the latest on covid19 news. Eamon javers will go over president elect biden speech on the economy when we get there. Lets start with mike santoli. We below on the s p 500 where we were this morning, by about a third of a percent below last monday mornings high about a third of a percent but looking at the chart, it is trying to break out in a decisive way from this long term range. Cyclical stocks are working. Market has a urgency to try to price in that kind of back to normal moment. The question is whether we have already pulled forward some of the benefits we already have the vaccine catalyst of course in the rear view keep an eye on how the market responds to that good news look at the global market. I think it is important the point out. This has been a global rally basically the entire world equity markets, the all country world index. It was capped for quite a while. It is a decisive breakout there. The nikkei in japan is one of the strongest uptrends in the world right now. On the subject of some of the back to normal type trades, the reopening plays look at three of them bookings holdings, uber and brick international, the dining chain. Each of these is above its precovid high. Uber is up year to date, if you look at some of the others they are all here, higher than they were right there before it all hit. The question is for some of the big cap names that are plays on a return to normal, exactly how much juice is left in them airlines are still beaten up, hotels, cruise line as lot of retailers as well. It is worth asking the question whether the market has kind of gotten there already at least in large part. Thanks for that all eyes on that rotation. More discussion throughout the show first lets get to meg tirrell on the factor driving the rotation, good news on the vaccine front. The bar was set high for moderna coming into this week and this met and exceeded it 4. 5 efficacy in their phase three trial. That follows pfizers 90 efficacy reported last week. Really bolstering hopes for how powerful the vaccines could be they also said it prevented severe disease in the trial. And moderna will seek the fdas emergency use authorization in the coming weeks of course the next question turns to supply. We are hearing from the hhs, secretary alexei czar that between moderna and pfizer they except to have enough doses for 20 Million People in the United States by the end of the year. By the end of january, secretary azar says all seniors and First Responders should be able to get a vaccine. Then starting april, may, june, july according to dr. Fauci, thats when the general population should be able to get access to these action eens assuming also more of the vaccines are successful. This is a huge moment for moderna as a company as well it is only a tenyearold company. You can see what the stock has done since they started work on this vaccine we talked with the ceo of moderna this morning about those ten years of work and really what this means for them heres what he said. We have worked really hard because this is not another like success. We have been at this for ten years now, a lot of investments and focusing on the science. What we realized over the years is we are able to make a pure mrna and make a lot of copies of the antigen of the virus in the human body then we can get a very strong response like we are seeing today. That paying off in these strong results today for their first vaccine thats likely to get to the market. As dr. Fauci says, the cavalry is coming, but it also comes at a timewhen we have never seen more cases in this pandemic in this country. Nonetheless, such great news, meg, as you have been discussing all through the day. We discussed last week when we got that 90 plus effectiveness rate out of pfizer what that would mean for the other Companies Developing vaccines. Outside of pfizer, moderna so much built into the stock prices for the other developers, from astrazeneca to j j does this now mean that everybody has to get over 90 or else all countries will just want to buy moderna and pfizer and ignore rest . Certainly if there is a lot of variability in the efficacy rate in these trials you could see greater demand for the ones that appear to work better but the fda set a bar of 50 efficacy in order to consider approving these or giving them emergency use authorization. That is still the bar that the vaccines need to hit because there wont be enough going into next year, any vaccine that hits that bar and is safe will probably be encouraged for people to take to try to make a dent in this pandemic Going Forward if we have to take these vaccines every year it can be reexamined based on supply which ones should be taken certainly to in the the little bar at 50 , there is a bar now set in the minds of everybody that 90 efficacy is achievable. Astrazeneca and jo j, they are u next. Strikingly good news. What do we know about the federal governments plan to roll out these vaccines, how they will be administered and distributed. And how fast how are they going to get them to nursing homes, for instance . Well, i believe the centers for medicare and Medicaid Services struck a partnership with cvs to work with nursing homes. So there are plans along those lines. Now what happens from here is that these companies have to go through the fda approval process. We are going to see outside advisers meet to discuss the vaccines once they get the green light, a group of advisers to the cdc will meet and prioritize which vaccine should be given to whom, and who first. Thats the process of getting through sort the regulation here and then the states have their own Vaccine Distribution plans so they are saying they dont have enough funding in some cases to make sure this works well so this will be the next thing we start to look at, how will this work, getting this out to the people who need it it is going to be very complicated and really a feat we havent seep on this scale before like so much else in this pandemic. Absolutely. Meg, thank you we will see if president elect biden says anything about that on his speech on the economy this hour. We will turn now to the Federal Reserve. New news on Judy Sheltons road to confirmation. Lamar alexander of tennessee is voting against her nomination. Staying in a statement, i oppose the nomination of judy shelton because i am not convinced she supports the independence of the Federal Reserve board as much as i believe the board of governors should the story was first reported by the woechlt, which also notes that senators romney and collins have also previously said they would vote no on shelton the Senate Majority leader mitch said last week he would advance shelt tons nomination to the board in july. They grilled her on her independence, her support previously of the gold standard. This is going to be a tight vote for her. It has been put back on the agenda we will see if she is able to squeeze by it has been controversial from the start. It is going to be close now that it is coming well after the election i guess gives more grounds for people to slip against what they are being told to do and perhaps vote against confirming we will see what happens there for judy shelton 51 minutes left in the session higher by 4 on the dow. Less than that on the s p. Awaiting remarks by president elect biden on the economy. We will take you there as soon as that starts. Stocks rallying on the back of vaccine news. We will talk to mark moabious to see whether or not he thinks the vaccine news will help the maet rks. You are watching closing b on cnbc. Keeping your oysters business growing has you swamped. You need to hire. I need indeed indeed you do. The moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventyfivedollar credit when you post your first job at indeed. Com promo its time you make the rules. So join the 2 Million People who have switched to xfinity mobile. You can choose from the latest phones or bring your own device and choose the amount of data thats right for you to save even more. And youll get 5g at no extra cost. All on the most reliable network. So choose a data option thats right for you. Get 5g included and save up to 400 dollars a year on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with xfinity mobile. Weve got just over 45 minutes left of trade. Theres a live shot of wilmington, delaware we are waiting for president elect biden to take the stage. Hes there to talk about the economy and turning the economy around, getting through the covid crisis he convened a meeting earlier today with top ceos like fwrks ms mary barra and top Union Leaders like the head of the uaw who will join us later in the show to talk about that meeting of we will take to you president elect biden as soon as he takes the podium. In the meantime, it is rally mode another positive vaccine report today, this time from moderna. The dow up 350 points. The s p up 3 4 of 1 as we head into the close for what it means on global markets, particularly the emerging markets lets bring in mark moabious. Always good to have you on the show emerging markets love the news it is fun for them to see the stocks rally the dollar weaken, all of that stuff. In terms of the impact of a vaccine hitting is it as positive as it is for the u. S. , which is lickly to be prioritized by a moderna or a pfizer it is tremendous news and it is a psychological impact is really what we are talking about. Its amazing how these countries are reacting to the news and i think its going to last for quite some time. Because as new vaccines come out the news will get better and better you must also remember that china is pretty much out of the crisis they pretty much solved their covid problem. A lot of the other Asian Countries have done so as well this vaccine is just one additional plus point. So given that positive view on the broad picture of emerging markets, which ones look best to you right now . How are you playing that right now, china, india, taiwan, south korea, those are the top ones and then further along, vietnam and philippines. All of these are Asian Countries, obviously the Asian Countries are really benefiting and this new trade agreement that they have signed is also positive news for they countries. Finally, they got together and signed this agreement. Unfortunately, india is not included but maybe later on india could come into that agreement given that that trading agreement has been signed, how poorly does it now reflect on the fact that the tpp was not signed and for all of the sort of fights over the last four years, has china come out looking pretty strong and pretty happy with thing oh, definitely. I mean, its a real loss for the u. S. And i think the u. S. Has really got on the ball and has got to get on the ball and join this agreement in some way. Otherwise, the influence of the u. S. Will decline in the pacific. We have got watch this very, very carefully. Mark, on the flip side, clearly chinese assets have done well this year, the chinese economy relative to the rest of the world looking really strong. There have been nervous moments, the ali pay behind the scenes leading to that being pulled if you are investing in china what risk is there that the state decides the seizure assets at some point or i78 pose wild card valuations or restrictions that impact the value. What is your take on that . Is china a risky place to invest not any more than europe or the u. S. In yrp they cracked down on companies for tax evasion. The bills have been huge and so i think the chinese are careful in the way they handle Something Like this. You have to remember, they have been very, very liberal with these Tech Companies the Tech Companies in china get away with a lot more than they would in the u. S i think this move by the government to crack down on this ipo by ant is not a big deal, really i think at the end of the day it will probably work out well for the market in general to see more regulation. Mark mobius sorry we have to cut you short a little bit today we have president elect biden taking the stage thank you for joining us, though with some of your recommendat n recommendatio recommendations. Lets listen to the president elect biden. Met with a group of americas top Business Leaders and labor leaders. I must tell you, it reinforced what i thought from the beginning. They are ready to come together. The unity was astounding i want to go back and talk about the people who actually participated in that i want to list all the people just so you know who we spoke with number one, there was mary barra, ceo of General Motors brian cornell, ceo of target mr. In additionel, ceo of microsoft. Rory gamble, president of the uaw. Mary kay henry, president of the mark marrone. Lee saunders and sonja single, president of gap. Richard trump ka president of the flcio. It was really encouraging, quite frankly, to get people business and labor together, agreeing on the way forward, which i am convinced the American People will be ready to do when they hear what we have in mine. I am very pleased ill it all came together around the same table to vance areas of Common Ground we agreed we are going to continue these conversations they represent very different perspectives but i am convinced that we can all come together around the same table to advance areas of Common Ground, which are really i wish you could have all heard the conversation. It was really encouraging. And thats what we were ready to discuss today. We all agreed that we want to get the economy back on track. We need our workers to be back on the job by getting the virus under control. We are going into a very dark winter things are going to get much tougher before they get easier that requires spare nothing effort to fight covid so we can open our businesses safely, resume our lives and put this pandemic behind us it is going to be difficult, but it can be done and they all agreed, that means rallying the country behind a National Strategy with Robust Public Health measures like mandatory masking widely available testing with rapid results, scaled up products of treatments and therapeutics. And safe, and equitable distribution of the vaccine. It is great news that moderna and pfizer have each come up with vaccines that are in excess of 90 effectiveness getting a vaccine and a vaccination, though r two Different Things everyone on our call today, in our zoom today, agreed that the sooner that we have access to the administrations Distribution Plan the sooner this transition would smoothly move forward as we battle covid we also have to make sure the businesses and workers have the tools, the resources the National Guidance and health and Safety Standards to operate safely. And we can do that we can bring democrats and republicans together work with business and labor to deliver those necessary resources. And for millions of americans who have lost hours and wages or have lost their jobs, we all agreed on our call that we can deliver immediate relief, it need be done quickly Affordable Health care for millions of people who have lost it or are in danger of losing it child care, sick leave, family leave, so workers dont have to choose between work and family Corporate America agreed on this today the folks on the call. We need support to support Small Businesses entrepreneurs that are the backbone of our communities but are teetering on the edge and we all agreed on the urgent need for funding for states and localities to keep front line and essential workers on the job vital Public Services, running Law Enforcement offices, educators, First Responders. Like we did in the recovery act of 2009, saving literally millions of jobs but there is a reason why the federal government is able to run a deficit. Because the states must, must balance their budgets. And they are in real trouble you are going to see hundreds of thousands of police officers, firefighters, First Responders, Mental Health clinics you are going see them going out of business right now, congress should come together and pass a covid relief package like the h. E. R. O. E. S. Act that the house passed six months ago once we shut down the virus and deliver Economic Relief to workers and businesses, then we can start to build back better than before. We talked about how we have an opportunity to come out of this stronger, more resilient than we were when we went in i wish you could have heard Corporate Leaders and the major labor leaders singing the same hymn nall here throughout the campaign i laid out my build back better plan we laid out our plan that an independent analysis put out by moodys a well respected wall street firm projected it would create 18. 6 million jobs we can also we talked about the need to own the electric Vehicle Market we talked about climate a lot. Building 550,000 charging stations, creating over 1 million good paying union jobs here at home the need for federal government to invest more in Clean Energy Research you know, its based on a simple premises its time to reward work, not just wealth in america we are going to have a fair tax structure that makes sure the wealthiest among us and corporations pay their fair share. Our plan would create millions of good paying union jobs in manufacturing, building the vehicles, products, technologies that we are going to need for the future to compete with the rest of the world. From autos to our stockpiles, we are going to buy american. No government contract will be given to companies that dont make their products here in america. To secure our position as Global Leader in research and development we are going to invest 300 billion in the most critical competitive new industry and technologies creating 3 million goodpaying jobs the Corporate American Technology Firms like microsoft on the call, they all agreed we can make sure our future is made here in america and thats good for business and thats good for American Workers. We can also modernize infrastructure roads, bridges, ports. 1. 5 million new Affordable Housing 1. 5 million new Affordable Housing units highspeed broadband for every household, more important for remote learning, remote working, telemedicine in the 21st century. Building a Digital Infrastructure to help businesses, health care workers, First Responders and students. 100 billion to rebuild our crumbling schools. They talked about the need the Business Community talked about the need to invest in hbcus and kplunt colleges, retro hitting 4 million or old buildings, retrofitting and making them new. Weatherizing 2 million homes, building more climate resilient cities and towns these promise will specifically target communities of colors so we can break the cycle where in good times they lag and in bad times they get hit first and the hardest, and in recovery, it is the toughest to bounce back. These are the kinds of investments that are going to strengthen our economy and our competitiveness, create millions of jobs, union jobs. In doing so, we will respect the dignity of work and empower the voice of workers you have heard me say it before. My dad, when he lost his job in scranton, eventually moved to wilmington and got a good job. He would say joey, a job is about a lot more than a paycheck its about your dignity, 79 are, your place in the community. It is about being able to look your kid in the eye and say honey, everything is going to be okay when we build back better, we will do so with higher wages, including a 15 minimum wage nationwide, better benefits, stronger collective bargaining rights, that you can raise a family on. Thats how we build back the middle class better than ever. Thats how we make sure workers are treated with the dignity and respect they deserve i can go on. You can tell i was very encouraged by your conversation. But the point is this. There is so much we can do the only way we do any of this is we work together. I know we can do this. For example, on the call i made it clear to the Corporate Leaders, i said i want you to know, i am a union guy unions are going to have increased power. They nodded. They understand. It is not antibusiness. It is about Economic Growth, creating goodpaying jobs. 11 years ago when barack and i took office during the recession and implemented a recovery act that saved us from another Great Depression we didnt see a map of red and blue states it was the United States of america. We didnt care whether the city had voted for us or against us, the state voted for us or against us we worked with everyone. And we recovered and rebuilt together as one nation we can do this again the refusal of democrats and republicans to cooperate with one another is not due to some Mysterious Force beyond our control it is a conscious decision its a choice that we make if we can decide not to cooperate, then we can decide to cooperate. I believe this is in part the mandate from the American People, part of the mandate they gave us. They want us to cooperate. They want us to deliver results. And the choice that kamala and i will make is that we are going to do that thats why i am so pleased today we were able to bring together business and labor leaders to make the choice jointly with us, for all americans. Lets get to work. As i have said many times, thank you. My god bless you and my god protect our troops. I understand now i am going to take some questions. Meghan, fire away. Thank you president elect biden, Vice President elect harris looking in the wrong direction. Sorry. Good to see you i want to start with a question about your pandemic planning and then a question about your economic plan. You spoke about the need to access the outgoing administrations covid Vaccine Distribution plans what do you see as the biggest threat to your transition right now given president trumps unprecedented attempt to obstruct and delay a smooth transfer of power . More people may die if we dont coordinate look, as my chief of staff, ron klain, would say, who handled ebola. A vaccine is important it is of little use until you are vaccinated how do we get the vaccine how do we get over 300 million americans vaccinated whats the game plan its a huge, huge, huge undertaking to get it done, prioritize those greatest in need and working our way through it and also coup cooperate with the World Health Organization and the rest of the world in dealing with this. So they say they have this Warp Speed Program that not only dealt with getting vaccines but also how to distribute this. If we have to wait until january 20th to start that planning, it puts us behind over a month, month and a half so it is important that it be done, that there be coordination now. Now, or as rapidly as we can get that done. On the economy, the Vice President elect harris talked about having an economy that works for working people one thing i didnt hear you talk specifically about is cancelling Student Loan Debt. Does student loan forgiveness figure in your plan . Would you take executive action to deal with it . It does figure in my plan i laid out in detail the legislation passeds by the Democratic House calls for an immediate 10,000 forgiveness of Student Loans. People are in trouble, they are having to make choices between paying their Student Loans and paying their rent. Those kinds of decision. In addition to that i think everything from Community College straight through to doubling pell grants to making sure we have access to Free Education for anyone making under 125,000 for four years of college. And there is a program that exists now under the law that forgives Student Loans for being able to engage in public for engaging in Public Service i am going to institute a fundamental change in that so it is available to everyone that in fact is engaged. It is not being well managed right now. Imgoing to do all of those things thank you. Thank you, mr. President elect. You just spoke of some of the dangers of the president s continued stonewalling of this transition but it doesnt appear that the president is going to come around any time soon and admit defeat what are you going to do what options do you have to try to ensure that you are ready to go on day one . Deal with every individual organization in the country, from business to labor, republicans and democrats, to try to pull together a serious and consistent plan so we are ready on day one everything from staffing to ultimately naming cabinet members, to moving along on coordinating with business and labor the covid attack, how we are going to attack covid. And so it would make it a lot easier if the president were to participate. We have a number of republicans suggesting that the good news here is my colleague is still on the Intelligence Committee she gets the intelligence briefings. I dont anymore. So that is but there is a number of republicans calling for that i am hopeful that the president will be mildly more enlightened before we get to january 20th. And what is your message to republicans who are backing up the president s refusal to concede . You clearly need to work with them Going Forward my message is, i will work with you i understand a lot of your reluctance because of the way the president operates but i i have been in contact with and will be in contact with more of them as we move along. If it has to wait until january 20th to get actually become operational, thats a shame. But maybe thats the only way to get it done. Thank you very much, mary. Thank you very much, mr. President elect. I want to kind of take you back off of that. I want to get your thoughts on the president s tweet over the weekend where he first seemed to acknowledge that you won then he said, he wont concede then he said, i won. How do you interpret that . At the end of the day do you want him to concede . I interpret that as trumpingism. No change in his modus operandi. And i think the pressure will continue to build. Look, im having a lot of meetings with World Leaders on the telephone. I cannot get into negotiating with them about things that are going to be done but they are calling with some degree of enthusiasm everyone from the holy father to prime ministers across the globe. And so we are moving along knowing what the outcome will be and as i said earlier, and i probably shouldnt repeat it, but i find this more embarrassing for the country than debilitating for my ability to get started and then secondly, i want to follow up with you on the vaccine. If the fda gives emergency authorization to the pfizer or Moderna Vaccine in the coming weeks, have you get vaccinated if you are hesitant, why should any american have confidence in the vaccine . First of all, well see if that comes forward and secondly, its important that people who are in the greatest need get it i wouldnt hesitate to get the vaccine. But i also want to set an examp example. But i wouldnt hesitate to get the vaccine if in fact dr. Fauci and these two organizations, whether it is moderna or pfizer, who have been extremely responsible conclude that it is it is safe and able to be done look, the only reason people question the vaccine now is because of donald trump. Thats the reason why people are questioning the vaccine, because of all of the things he says and doesnt say, whether it is truthful or not truthful, the exaggerations. I think we are on a clear path now. On a clear path with the international committee, National Leaders in the Scientific Community have focused on these two vaccines. They appear to be ready for primetime, ready to be used. And that continues along this road, i would take the vaccine thank you thank you mr. President elect. You have been urging the American Public to continue practicing social distancing and wearing a mask but with cases skyrocketing across the country, do you think that more governors should be closing nonessential businesses and reinstating stayathome orders look, it depends on the state. What i failed to mention earlier is the the enormous respect i have for republican conservative republican governor who is stepped up and issued mandates for Wearing Masks north dakota the idea one of the leaders in this area has been the republican governor republican and republican governor in ohio. And in addition to the folks who have already been leading like the governor of michigan i mean, you know, the easy that the president is now existing, remaining adviser on covid is saying they should resist what the hell is the matter with these guys what is the matter with them resist you know, every major individual of any consequence in the health field is saying we can save we can save 100,000 lives just between now and january 21st by wearing these masks. It is going to take a while for the vaccine to be able to be available, distributed, and get to people. We are talking about 350 to 400,000 people dying i mean, what are they doing . Its totally irresponsible irresponsible. So i compliment the governors who have stepped forward, who have been stepping forward, but also the republican governs who stepped forward. I left out the governor of utah. Very conservative state. Governor of north dakota and all the democrats governors who have been doing it all along. I mean, its i just ask a rhetorical question. Do you guys understand this . Does anybody understand why a governor would turn this into a political statement . Its about patriotism. Its about being patriotic it is about saving lives for real this is not hyperbole. Its about being patriotic and i think you are seeing more and more as this god awful virus continues to spread almost unabated, that we that governors are stepping up. Just following up on that, especially with many states reporting new highs in terms of the daily number of cases, and a lot of Public Health officials sounding the alarm over the holidays, what is your message to people who are considering for example, getting together with their families and others for thanksgiving would you consider would you urge people to reconsider their plans . Heres what i would do. Let me tell you what the Health Experts have said to me. And its not because i am unique and president elect. It is because my family. They strongly urge that if, in fact, we are going to have thanksgiving with anyone that we limit it to a maximum, maximum they suggest five people maximum ten people socially distanced, Wearing Masks. And people who have quarantined. So jill and i spent this morning, like many of you, trying to figure out what are we going to do for thanksgiving how are we going to do it . We have narrowed down which family members that they were tested, recently tested, within 24 hours so i would strongly urge for the sake not just your sake, for the sake of your children, your mother, your father, your sisters, your brothers, whoever you get together with at thanksgiving think about this there should be no group more than ten people in one room at one i mean inside the homes thats what they are telling me. They are telling me, they are you know making sure that thats the case and i have the i have the more potent mask behind this one. I took it off when i came out here i wear it inside this. Be masked. It saves lives look, i just want to make sure that we are able to be together next thanksgiving. Next christmas i mean, its it is a International Crisis it is a International Health crisis and the idea, we are at war with a virus. And it is we are at war. For real and all kidding aside, i ho all of you i have watched you all. You all seem to wear masks all the time when you are and the group that follows me follows me that is assigned to delaware with me seem to do that. I strongly urge you to do it there is nothing macho about not wearing a mask thank you thank you mr. President elect, madam Vice President elect. Your plan my mask is stuck in my earring demonstrating for america. Trying to take it off thats hard. Thank god i dont have an earring. The plan that you have outlined just now, about a Million Union jobs, clean energy jobs, investments in hbcus, those are things that take time. We have a problem with long term unemployment thats growing fast right now. What would you do right away, specifically to address jobs that may not return for months, may not return ever, including in communities of color . What i would do i, i would pass the h. E. R. O. E. S. Act. It has all the money and capacity to take care of each of those things now. Now. Not tomorrow now. And the idea the president is still playing golf and not doing anything about it is beyond my comprehension. At least think he would want to go off on a positive note. But what is he doing and there is virtually no discussion and the republican we are told i dont know that it is true you may know, senator, that there is 22 republicans say they wont vote for anything. There ought to be at least at least a dozen of them that have the courage to stand up and save lives and jobs now. We should be doing it now. Keeping those businesses open. Prying the ppe, the protective equipment, as well as the ppp, the money that we allow people to get funding the keep their businesses open. Everything from separation to testing, to a whole range of thing that allow businesses to open and stay open thats what the plan was at the beginning. And by the way, if you noticed, at the very beginning when they passed the Stimulus Program the first two pieces, what happened . Businesses were staying open even when they werent open people were able to get paid look where they are now. People are running out of Unemployment Insurance what are they going to do . 20 Million People are on the verge of losing their home because they can make a mortgage payment. We have a larger number being kicked out that will be kicked out in the street because they cant pay their rent and by the way, its not just the renter its the outfit that owns the building a lot of them arent multimillionaires. They are running small operations how can they do it this is about keeping americans afloat get them through this pandemic get them through where they are still their businesses are able to come back. The moneys there. The money is there and also on the economic front, as we fight the pandemic, world trade continues and there is great debate over world trade agreements, International Trade agreements it seems that in the last couple of days, 15 countries, Asian Pacific countries have signed on to a new trade deal, the rcpe should the United States consider joining that trade agreement . I talked with a number of these World Leaders and i told them under the law i am not able to begin to discuss with them. There is only one president at a time as to who can say what our policy will be so i am reluctant to answer that question now but heres what i can say. We make up 25 of the worlds trading capacity, of the economy in the world we need to be aligned with the other democracies another 25 or more so we can set the rules of the road instead of having china and others dictate outcomes because they are the only game in town. And so but what i am insisting on, and what i have been asked by World Leaders as to what i would do, without getting into detail, i said i want you to know three thing are going to happen if i am elected. One we are going to invest in American Workers and make them more competitive number two, we are going to make sure that labor is at the table and voirmallists are at the table in any tara reade deals we make i am not looking for punitive trade. The idea that we are poking our finger in the eyes of our friends and embracing autocrats makes no sense to me so but im reluctant to get into more detail at this moment. I promise you i have a pretty thorough plan and i will be prepared to announce that to you on january 21st. You have indicated changes you want to make in International Policy on other fronts like the paris climate. The generic notion of rejoining. But i didnt get into the detail of what we will do in that agreement, the same notion with rejoining the world huf organization. Why not here. You are asking me would i join a specific proposal, the details of which are now only being negotiated morning those nations. They are requiring negotiation thank you thank you appreciate it. The president elect and Vice President elect just wrapping up a press conference there focused on the economy a lot coming out of it as well, including the fact that he made clear that having a vaccine is different from a widespread vaccination and saying that we are going to have a dark winter. Things will get tougher before they get better. Also mentioned that the call he had had with Business Leaders by the way took place on zook which was interesting. And on the topic of bailouts of stimulus, saying that the congress should pass the h. E. R. O. E. S. Act already passed by the house s also saying he is a union guy, unions are going to have more power. It is not about antibusiness but having Economic Growth next we will talk with uaw president rory gamble. He spoke with the president elect biden today. Thats still to come we have 30 minutes left in the trading day. Lets check on the markets mike santoli here to break down these crucial moments of the trading day. Today we have got paul hickey with us as well. Mike, similar theme to last monday the scale of the move less significant but showing there is still room for this rotation to rally. It added a little more of a twist to that rotation small cap stocks the average stock in the market up three Percentage Points in month more than the s p 500. These like 1 1 2 versus 10 1 2 clearly a lot of this is under way. It is an encouraging tone if you believe in the markets ability to discount a Better Future several months out well see how much fuel it burns up in the shortterm on the way there. Did anything stand out to you in the speech, mike, that the market would be teeing off of . He did talk about policies, making the wealthy pay fair share, raising minimum wage, forgiveness of Student Loans all of which is going to be difficult for him to accomplish. Exactly it didnt seem like there was too much specific there that the market was going to seize on. Paul, in terms of the Broader Markets today, clearly above 3,600 on the s p russel is on an absolute tear at the moment what are the key levels that you are focused on that a close above would be bullish as opposed to suggesting we are a little bit overbought . We dont necessarily focus on actual levels right here but 3,600 is the psychological level here we are just focusing on the internal strength of the market, which is something to really be cognizant of here. Only 18 stocks in the s p 500 are down this month. I mean everything is going up this month what is even more impressive about it is that the sectors leading the rally. We have energy, financials, industrials, and materials in the early days of september, in the first ten days we were all up double digit percentages. I mean, you dont you rarely see that kinds of leadership among those sectors, all being up that much at the same time. You have to go back to 2009, 1982, and 1974 you know, those were all very good periods for the market late or early late in the recession or early on in the expansion. In the days of the bull market there is some oomf behind this rally so to speak. Energy is having a great november that sector up 25 month to date after all the concern about president elect biden and what that may mean for that sector. I want to hit the financials as well pnc says it will buy the u. S. Arm of spanish bank bbva for 11. 6 billion making it the second largest banking acquisition since the financial crisis the portfolio includes 104 billion in assets under management,er inially 650 branches across the sun belt from california to florida texas is a biggie. The combined company will create the fifth largest retail bank in the u. S. I spoke earlier with the ceo of pnc financial, asked him why now is the right time to go ahead with this big deal particularly with the news of the vaccines, we now have sort of a Downside Risk defined i think in terms of what might happen to the economy. You know, we see an end to this. We see because of the low from rates a need for scale to be able to grow our franchise. You know, it just it worked out. Pnc has of course been flush with cash after selling off its stake in block rock six months ago. A 17 million stake. While black rock was a bra asset it didnt give the firm strategic advantage and unlike black rock will be able to grow bbvas franchise substantially he did make that case on growth given that, you know, there was maybe questions because black rocks stock rallied almost 50 since they sold out of it. Remember we had bill on the show back then. He talked about being opportunistic about m a. This was obviously the followon act. The ammist asks the stock is up and they like the geographic exposure and they got a reasonable price. In his defense on the black rock sale it was never a core asset. They had a mainority stake i guess his job isnt to time the market on that sale but to think the banks strategy. Two things the interview was you a awesome. Two things that stand out on the deal for me. One on the asset if you want to expand their core banking business the asset is perfect. It increases their scale, the geography is complimentary in terms of expezzure and it is not too big a purchase to cause regulatory issues for for pnc to lose control the pushback is the price. It is a good price based on 2019 valuations l probably prove to be a good price based on 2021 and 2022 valuations but they are paying 1. 4 times tangible book which is not cheap i guess thats that tradeoff, sara you asked him about the timing of the deal. You need to know that buying more exposure in core cyclical banking business is not going to hurt the bank as and that kopgs with share prices recovering on news of vaccines and things like that. He talked about how the picture on that front changed when it comes to the economy and covid. Last time we talked when he sold the black rock stake they said they didnt know if it was going to be 1 or 10 mortality rate when they sold there were questions about what does it mean, for the banking outlook, for the credit picture, how worried is pnc and how conservative a move is this . If that was a sign of worry this is a signal of confidence in the future. It picks them up from seventh to fifth in terms of biggest retail banks by assets truest, ucb, this v behind the big four now you bracket those seven as the ones with significant scale, spare cash so they can compete with the pay pals and squares of this world i wouldnt say it is a threat to the big four but it puts them in the bracket of the big seven and the 4,000 fdic small banks cant compete. We used to talk about super regionals, which was a tier below the money center break of the it seems like a breakdown like that right thousand with those top seven. Historically you have got the believe there is going to be more consolidation behind this if they are scaling up and having the big guys roll out more geographies that is a open reasonway because of the size her already at and the general environment. Everyone always says, will it unleash a wave of consolidation. Or you can spin it the other way and say look how many factors it has taken to see this deal get done ted the cash because they sold noncore asset they had a track record for being able to execute after a crisis only one deal has sort of materialized one other smaller one as well. Great interview sara and fascinating story. Pnc is up, as long with the rotation into value thats going on. Big we can for retail earnings we have a look at ecommerce growth at Department Stores. Coles ticks off Department Store earnings tomorrow. Its ecommerce sales surged 60 in the Third Quarter as the mid price retailer was able to outside offmall stores for purchases that people picked up curbside they ate into margins by 2. 75 age points. Macys reports on thursday its Digital Sales grew more than 50 in the Second Quarter those not enough to offset stales at its tourist dependent flagship in new york city or the decline there. Analysts think digital momentum may have faded in q 3 for macys ubs citing a dropoff in google searches for macys and blooming dales in recent months but the ceo sells cnbc he thinks luxury goods provide opportunity for growth at this point people are looking for a way to pamper themselves they have frustration because they are not traveling or going out for entertainment. Thanks for that paul hickey, earnings going to be the driving factor for this sector. I think they may get oneday reactions to their stock prices here but it is all about the virus here the increased uptick in case a lot of these companies had improved their Online Presence but are still very focused on their brick and mortar and 22 of their business is in the last two months of the year. It is going to be curtailed. I would focus on retailers who have done the on line sales thing much better. Walmart has been making great progress there Williams Sonoma has a very good on line presence i would focus more on those companies than the traditional Department Stores. Coles ceo by the way is going to join us tomorrow on the show to talk about earnings. Michelle gas. Mike, the vaccine link with travel and hotels thats offense and the market latched onto that idea what about retail . How much of a game changer sit for the beleaguered retailers who struggled even before the pandemic i think it is less of a linear path between the vaccine and the retailers because of what has been doing on for retailers for a long time. Some of them have been forced into shrink mode i think you will get a bounce after the announcement of a vaccine. The gap has shown it can do. Me channel it is in a defined uptrend where it was precovid. A lot of the stocks deemed winners have had the benefit already. We have got just about two minutes before the close gap having another 9 up day it has been incredible lately. Mike what are you seeing in the broader internals for the market today. The dow up almost 400. It is a clue sieve rally. More winners than losers you see like a six to one advancing volume to declining volume in the New York Stock Exchange it is very strong. You cant fault the breadth of this market. The ont to date basis the largest stocks in the market versus the smallest stocks there is a micro cap etf up 60 just this month as opposed to the 50 large nest the s p. Up 9 . Still a catchup move for the micro caps the volatility index, it has been in the low 20s, low to mid 20s area for a while its giving way again. 22 slow normalization process under way right now. Though the market it is he self has been jumpy it is keeping a bid in there. Just over 30 seconds left close to 70 points off 30k on the dow. Not far from the session highs s p at 1. 1 . Nasdaq up. 7 . All of the major indices higher. Energy the best performing sector industrials up, banks up 2. 4 . Only one sector in the red, health care down one quarter of a percent. At the bell, higher across the board. Strong finish there for wall street on another monday that brought us very positive vaccine news closing bell. I am sara eisen here with wilfred frost and mike santoli look at how we finished up the day on wall street dow closing with a gain of 473 points a gain of 1. 6 a record close for the dow and for the s p 500, up 1. 2 , almost, 41 points, as wilfred said, all sectors higher, led by energy some of those more beaten down value names taking the lead as we have seen in this rally energy up 6. 5 industrials, financials, materials also helped get us there with strong gains. Only sector lower was health care as far as the dow, boeing was the wig biggest winner, chevron and disney nasdaq up. 8 . Technology not as strong as the cyclical sectors still a good day apple, qualcomm, a lot of winners there. The small caps, russell 2000 up 2. 4 also having a strong run on the vaccine hope. Coming up, dr. Slaoui discussing modernas coronavirus vaccine. Phase three trials showing it is more than 94 effective against covid19 we will talk with him about the roll out later this hour paul hickey is still with us Gabriella Santos joins the conversation and via fine, mike wilson, ceo at Morgan Stanley with his new price target out for 2021 on the s p. Mike, welcome. First, though, to mike santoli to recap another very strong day off the back of very good news on the vaccine. The markets ability to continue to rally on good news is still a positive. It is prabl ble getting a little bit probably getting a little bit stretched. It probably feels too intuitive for buyers to wait for the jump i am not saying thats a problem. But i do think you have to be aware of the cadence of this rally. Credit is very strong. The rally has been very broad and inclusive. It is a matter of the rhythms as far as whether people have gotten too exside as you head to the challenge the near term covid19 surge and the economic ramifications related to that. Mike, have we gotten too excited in the shortterm . We are definitely excited it is a bull market, as we have been saying and this is good news mike brings up a good point. Sometimes markets top on good news we have had two big doses of it with obviously modernas news this morning, and of course pfizers news a few weeks ago. And the market has kinds of gone sideways yeah, we could die just this a little bit that would be healthy. But the main message and mike talked about this, too, the market is sending a powerful bullish view about next year by the broadening out of this rally. Thats really been our view since since the summer. And does it kroecorrespond t what is happening with earnings estimates next year . What does a vaccine do for it . How do you model that . It continues to model out as you know we have had a terrific recovery already and earnings revisions it has been broader. People want to acknowledge everybody wants the talk about tech stocks but since march it has been a broad rally the summer took a back seed and in the fall when we had corrections we saw it spreading back out again it is not just the work from home beneficiaries, this is a real broad rally and the vaccines help that makes it easier to see that in the future it can broaden out. Our estimates one thing we have a consensus on, are higher estimates for next year, we have a 180 bull case. 180 in earnings power next year is a big number. Gabriella, do you feel like investors are bullish or bearish . I think investors will be getting for constructive over the last months but a lot of the investors were waiting for clouds to part the first was around the election we have had that event come and go which is good. We have more visibility and we had a lot of investors waiting for the vaccine theus to see whether we were just hoping that we would get back to normal life or whether we could actually plan on it i think it is interesting. When you look at the kind of assets we have in money market funds they have come down over the past few months but they are still high relative to where we started the year 700 billion higher than where we were in january investors have been adding risk but there is still room to go as we are leaving these clouds behind lets talk about the small caps, paul, and the outperformance today, and weve seen is that a place where people should be looking . Because still lagging overall year to date. Yes so on september 1st, Apple Computers market cap topped the entire russell 2000 for one day. That was a oneday hit ask then small caps have now been picking up ground since then small caps you always often hear about how they are higher valued than the Broader Market but within the russell 2000 you have a ton of companies that have no earnings whatsoever. When you strip ought those companies that dont have earnings the valuation picture for small caps looks a lot better what we have seen over the last two weeks is russell 2000 is about the size of apple. If you get a rotation into small caps it is like a fire hose. We have seen two weeks in a row of 6 gains. Today we are up another 2 that kind of shift, is it you know, when the rotation happens, it can be very powerful for a sector like small caps then it is coming against the backdrop mike was talking about earnings we have seen the earnings beat rate this quarter the strongest we have ever seen for Companies Beating Consensus Forecast guideness for next quarter, more importantly we have seen a Record Number of companies raising guidance i think that goes into the belief that earnings expectations are too low for the market looking ahead to next year while we are shortterm overbought you can see a cole dags in time rather than rice. Could you see sideways movement back and forth but the overall picture for the market looks positive it is hard to find a whole lot of negative that stick out. Mike wilson the last time we spoke you were constructive on the banks as part of the broadening out they are up 17. 5 in the month of november there is also talk of the fed buying more of the long end of the curve. Do you think banks are still attractive we do obviously we have had a big move really since starting back in september. The banks have done quite well as rates have started to move up i would say the one disappointing thing, frankly in todays price action that tenyear yields did not make a new high right . I mean we made a big move on the pfizer news. But then today they didnt really follow through at all you know, stocks followed through. The reopening stocks had a really nice day today. Thats the one fly in the ointment for the banks if the back end doesnt really power higher, then it may hold them back. We are still optimistic on the economy next year and growth in general and we think rates have move higher. We have close to a 1. 45 on the tenyear next year with that happens, the banks are going to work. With the market at new highs do investors happening whats happening now on the ground until vaccine, which is record rising number of cases of coronavirus, restrictions coming, happening, we see it starting to work in europe, and rising hospitalizations and deaths in this country, which could lead to Slower Growth at least in the interim i think over the past lets call it eight months or so, we have been unable to look past the shortterm we didnt know what was going happen next week, next month we have been extremely focused on the shortterm. I think the importance of this vaccine news is it allows us to start looking out further once again think about what the next 12 months can bring instead of what the next week can brichl i think the market is going to be more willing to look through these increases in covid case this is time around as opposed to in march. Central banks as well as fiscal authorities are more focused on the shortterm and are willing to provide extra support as we go through these darker months for us, one way to play this, instead of just value or growth in the u. S. Is through emerging markets. Because it is a perfect combination of a cyclical market as well as a market that benefits from capped long term bond yields in the u. S. That makes two of you, along with mark mobius earlier in the show we will leave it there what a day, record kiloforce the dow, the s p and the russell 2000 up next, operation warp speed chief adviser dr. Slaoui here to weigh in on the news from moderna and pfizer and enwh the shots could be made available to the general public. And how. We are back in just 90 seconds sfoi weve got some breaking news on 13s filings from big investors. Leslie thats right. We have seen the 13s be disclosed from berkshire halt hathaway interesting moves in the pharmaceutical space Berkshire Hathaway took a stake in ab vee. 1. 9 billion at the end of the Third Quarter. Also taking a new stake in merck. That stake worth about 1. 86 billion at the end of the quarter. Those shares up in the afterhours trading. Tmobile, taking a new stake, 2. 4 million shares of that, worth 276 million at the end of the quarter. So some pretty interesting moves here from Berkshire Hathaway also noted in the filing Berkshire Hathaway says there is some confidential stakes that have not been included in their current 13s filing this is usually something that takes place when a fund manager believe has the disclosure of shares in a certain position to move the market one way or another. So they apply and are granted confidential treatment important to note these positions are as of the end of the Third Quarter, september 30thth and may have changed in the six weeks since. Guys thank you leslie. You will keep digging into it and bring us more. Interested to see what he has been doing on the banks side as well. Moderna announcing positive results on its covid19 vaccine trials showing it to be 94. 5 effective in preventing cases of covid19 this. Comes after pfizer announced early data showing its own vaccine to be more than 90 effective. Joining us now is dr. Moncef slaoui who helps lead operation warp speed and our health and science reporter meg tirrell over to you. Thanks so much. Dr. Slaoui, thanks for being here thanks for having me. This is a huge day. Before you became chief adviser to operation warp speed you sent more than three decades developing vaccines. Put into perspective what two vaccines with over 90 efficacy means in this pandemic. Well, it is an extraordinary outcome frankly to have two different vaccines tested in different conditions by two different companies, developed independently yield very similar outcomes this gives a huge confidence into the data obtained and really suggests that the 90 and more efficacy is true and real the fact that they have been developed over a period of less than a year is just incredible i spent 30 years in the same company, of which 27 was spent developing one singular vaccine against malaria for instance the fastest we ever do was four or five years. So major achievement part of which of course relate to the companys perform answers technology decades of work beforehand part of which rates frankly to the support that operation warp speed has provided the operation has been, really, a visionary approach that the hhs secretary had to put together science, academic, et cete cetera, department of defense, and industry expertise and experience together in one place and shield them from bureaucracy and help them help the companies. Up to now, it has been an amazing day. Every monday like this, i would take any time. Know we will take a couple more of these, please. Yes. A couple questions that i am hearing from experts today about these vaccines we know you dont have the answers yesterday yet. But i wonder you know more about this an almost anybody how likely is it that these vaccines will provide sterilizing immunity, prevent infection not just disease and how long do you expect the protection will last i think the likelihood that they prevent infections or provide sterilizing immunity is significant given the level of efficacy achieved. But remember, these are shortterm outcomes. These are four, five, six months trials and therefore, the level of antibodies will wane with time and i do not think that protection against disease will wane with time i can explain why. But protection against infection, sterilizing immunity may decrease with the waning antibody i antibodies whenever we encounter the virus we boost our immune response back at a much faster pace than the first time thats why i believe protection against disease will persist at high levels. Protection against infection, i expect it to be positive maybe not as high as 95 but maybe not highly persistent. Okay. That would be good it is sara, dr. Slaoui thank for being with us. We just heard in the last half hour or so from president elect biden. He was talking about the hopeful news on the vaccine front. Said, quote, they have the Warp Speed Program to distribute this if we have to wait, it puts you behind a month or a month and a half it seems the me that as the rollout of this vaccine is happening thats exactly when the transition of power is set to be happening in this country. Whys that there not been engagement with biden and his advisers what is that going to look like whenever day counts here and more than 1,000 americans are dying every day. Listen, since day one our objective has been to go fast. And absolutely every day and everywhere our countant thats where we are. Our focus is to save american lives and peoples lives in general. We are not going to be distracted we are going to run as fast as we can always looking after safety and he can kasey of the vaccines clearly we will hope there is no disruption because of the transition but this is not for us to call frankly, as i said, we want to focus on the job to be done, which is deliver vaccines fast right well i would think this would help in that effort. But he i guess it is up to president trump. In the meantime, dr. Slaoui, the antibody cocktails were meant to be antibody drugs from regeneron and lily were meant to be the bridge to the vaccine. They are here, which is great news and they have good trial data and yet the production of them is so limited that i mean the numbers are just so small in comparison for what we need right now. Why werent they prioritized more i know you did give money from operation warp speed for manufacturing and scaling, but it is just not happening at the levels that we need it right now. I apologize to say this monday morning quarterbacking is always easier. It is impossible the predict the amount that we needed. Remember, all of this has started eight months ago the speed with which things are going is unheard of. We have done everything pop, eli lilly, regeneron, and the operation done everything to scale up the capacity that existed and we worked to have some of these companies tom to companies that had potentially free capacity. You can imagine no business is sitting there with a permenter waiting for a pandemic to come for them to be using that facility to produce an antibody that nobody knew about eight months ago i think it is remarkable for instance if i take eli lilly we know we are going to be able to have 800,000 doses of the Monoclonal Antibody within the next six weeks and that it is going to have a significant impact, i hope, on hundreds of thousands of patients. I wish you could have more we will be having more as fast as we can. But it is where we are today. Dr. Slaoui, pivoting back to the vaccines the president said on friday i think it was confirmed today in various releases that 20 million could be vaccinated by december. I wonder what the hit split is of that 20 million doses between the Moderna Vaccine and the Pfizer Vaccine if all vaccines were going to be 90 effective how much does that lower the percentage of the population in a need to be vaccinated in order to reach heard immunity. It is almost give lent for the month of december. Slightly more vaccine doses from pfizer, slightly less from moderna. They are hovering around the 20 million doses custom for each is enough to immunize ten Million People Going Forward we will be able to immunize about 25 million every month on an ongoing basis between the two vaccines together in regard to the heard immunity requirements with that level of protection, one, we need to understand how much protection there is against infection or particularly virus shedding in those people who potentially get infected i expect that to be quite significant, certainly decreasing the number of days during which people would be shedding virus even if they have no clinical signs of disease and we may have even more than that i would say north of 70 would be ideally what we should have to have significant heard immunity. Dr. Slaoui, i know slice are relatively tight, certainly in the early months of these to very highly effective vaccines has the tradeoff in your mind changed now as to what level of effectiveness is needed in order to give out a vaccine thats only 50 or 60 or 70 effective now that we have these two that are over 90 first i should say i frankly expect most vaccines to be very haley effective. This was my working hypothesis from the start the protection here is a race between the speed with which the virus replicating and the speed with which our i am moneyo response catches back with it. Priming our immune system is actually enough to change that race outcome so i expect most vaccines to be effective. Maybe some will be 80 and others will be 95 we did want to have a portfolio of vaccines with different technologies because some vaccine profiles may be more pertinent or appropriate for pediatric use. Some may be better for healtherr younger. Or some may be more effective for frail older individuals. Having the highways and the ability to mix and match the best vaccine to the right subpopulation is the right way to go and we will have this opportunity. Over the next three to four months we should be having at least two more vaccines and another two months we will have let another two more vaccines. I think it is going to be important to have to have that opportunity to select. Dr. Slaoui, its meg tirrell again. Of course we have had such wonderful news from these vaccine trials these past two mondays but it is coming at the time when we have never had worse news about the state of the pandemic 140,000 people in the u. S. Being reported as new cases every day. What is your message as the pandemic is really at this horrible point but we are so close to vaccines now to the American People in particular and to people in other countries where cases are so bad about what they should be doing until we get these vaccines . Well my message is a message of hope and a message of persistence and resilience hope because i think we can really see that there is light at the end of the tunnel we are not going to be spending four or five years under these conditions i do think vaccines will be available from many different sources, including those from the operation and the companies we partnered with. So there is hope at the end. And for us, its not that far away we need to be resilient. We need to be persistent in wearing our masks, in washingtoning our hands, in wasg our hands, keeping our distance, be self aware of protecting ourselves and as critly protecting others from this virus. We can see it but we know it has killed almost a quarter million americans and is infecting as you just said north of 120,000, 140,000 people every day we cant allow that to happen and continue to grow so its very important to be self aware and act thank you so much, dr. Slaoui, we appreciate you being here we hope you will have more of these good news vaccine mondays to come. Yes, my pleasure. Thank you. Sara, back to you. Thanks to meg tirrell and dr. Slaoui meg thanks for bringing us that interview. Walmart shares hitting a new high ahead of its Earnings Report today next we will like at whether the stock could headve en higher. Remember, you can always watch or listen to us live on the go on the cnbc app well be right back. Sfoi welcome back. As promised more details from warren buffets Berkshire Hathaways 13s you asked about the banks, we are delivering some news on the bank Berkshire Hathaway parring back his holdings in a lot the bank stocks that he owns, redeploying some of the capital toward the pharmaceuticals. Jp morgan, that stake almost pared bake entirely, 9 in the holding of jpm down to 93 million, which for Berkshire Hathaway is a very small holding. Paraing back pnc interesting moves as well request wells fargo and b of a, each of which had updated filings in august. Since august 14th the stake in wells fargo has been pared back by 6. 6 . Since b of as interim filing the stock was pared back 2 . M and t, down 36 to 270 million. Notely no, change in u. S. Bank corp. , which is a sizable stake for the firm and as we mentioned earlier a lot of that capital appears to be redeployed to pharmaceuticals taking stakes worth 2 billion in abbvie, merck, and Bristolmyers Squibb sizable portions in the space. That is as of the end of the Third Quarter, as of the end of september 30 skt those positions may have changed since then. I am going to jump in leslie. Interesting on the banks positions. A lot of them we would kind of expect to continue, including jp morgan which he was already selling down the stand outs for me are wells fargo only down a further 6. 6 in Holding Versus august 14th. He has been steadily selling that all year. Was left with 3 of the company, previously been 9 of the company. The fact he had not exited by now given the pace of selling over the last quarters surprised. Wells energios stock has been particularly epressed over the last couple of months. Maybe he is price sensitive around the 24 mark or Something Like that and therefore didnt sell more over this past couple of months. And bank of america down, only a fraction, but from all of the prior couple of quarters it seemed like he was slimming his holdings across most of his banks portfolio and topping up slitly his bank of america but a reversal in direction even though it is a small set of sales even though he got regulatory clearance to go higher in bank of america stands out a little bit the me though not a massive sale of stock there relative to his buying earlier in the year. Yeah. And it is worth noting with wells fargo he has been paraing back his stake significantly just since that mid august filing its showing a much lower decrease in the stake. As the Second Quarter, Berkshire Hathaway actually pared back its stake in wells fargo by about 46 . It is significant quarter over quarter. It is just since the interim filing we wanted to provide the most upto date selling based on the august filing. Same true with bank of america interestingly, the stake in bank of america has increased since the Second Quarter, about 9. 2 all it is all relative to the mid interim filings, wilf. Just as bank are starting to show some life up 16 for the month leslie picker thank. Lets go back to mike santoli who has been looking at walmart ahead of earnings tomorrow and the valuation walmart had an alltime high which is saying something. Over the last 50 years one of the best stocks in the market. You see it goes in multiple year sprints, then consolidation. The light 90s. Most of the 2000s it digested there. Here we go on the move again wall streets consensus going into that number 3 4 of all analysts recommending the stock although the price eclipsed the consensus price target sometimes that means it is expanding beyond the comfort zone on the street the forward price earnings multiple of walmart. On an absolute basis. In the high 20s. On the itch arer side. But it was more expensive in the early 2000s, late 90s still a premium of 20 to the market the big call here is it cyclical, tied to employment levels and overall Consumer Spending or do they have it figured out on the omnichannel side to where it gets more enduringly valued to the upside earnings rock stead. They have not budged for current quarter. A moraj Goldman Sachs deal maker is leaving the firm. Details when we return by due earnings are out. Eric chemi with the earnings. Looking like a big beat here. The earnings number 20 in the chinese currentsy, not dollars here beating the 13 that analysts were looking for revenue numbers also beating by about a billion yuan for the quarter. Company saying Revenue Growth turned positive in the Third Quarter with many advertising verticals turning around the midpoint of the quarter revenue guidance is above wall street expectations. Stock popped up but trending back to unchanged. Eric, thank you want to draw your attention to shares of costo just out with an announcement that it is going to come out with a special Cash Dividend of 10. A pop on the news. More than 2 on the news costco has been performing very well its stock and its actual business is an essential retailer, was doing really well before the pandemic, with the subscription model one of stephanie links favorite stocks it is rewarding shareholders, returning to cash. A special cash different of 10 per share. As we teased before the break, greg lemkau will be leaving Goldman Sachs. Based on conversations with multiple sources i can reveal this has been in the works for before five months he agreed he would stay on until the end of the year with so much going object 2020. And also that lemkau and del are looking to grow msd partners they will lab looking for outside capital when he joins mid february lemkau will be replaced by jim esposito his move may signal the two departments working closer together moving forward. He and dan des will be heading investments. Since lemkau is not joining a rival, goldman is relaxed on that front previous heads of the Investment Bank arm senior to lemkau solomon and waldron already on the phones reassuring clients they are there for them. In that regard sara, Investment Bank being perhaps the area where goldman has the deepest of their various star quality benches, et cetera, they dont need to be too worried he is not moving to rival, per se. Also just add he helped implement what David Solomon ajounsed at davos last year adding they must have at least one female or minority leader on the board before taking a Company Public you mentioned solomon tried to convince to stay was he seen as a ceo candidate to replace solomon what did you mean by that. I think he has always been seen as a potential future ceo the way i would differ with how it is record this is not really a solomon successor, wall draughn andi sheer as ceo andi e think you could read into his mind that he is 51 and therefore all sorts of hurdles would need to be overcome in order to get this i dont think that was his ambition solomons conversation might have been more like if you want to be an investor, do it with us but conversations had already happened so that discussion was brief and then amicable over the last few months and making sure things were ready for the transition del is one of lemkaus clients they are also friends. They have houses next the each other in hawaii. He leaves ends of the year and starts his new role in february. It helps put dels Investment Firm on the map. Still ahead, the president of the United Auto Workers union along with several other Business Leaders just met with president elect biden. At least they zoomed we heard from the president elect the uaw president will join us to discuss what he thinks about president elect bidens plan to get the economy back on track. And what else was discussed on that call. At dell technologies, we started by making the cloud easier to manage. But we didnt stop there. We made a cloud flexible enough to adapt to any size business. No matter what it does, or how it changes. And we kept going. So you only pay for what you use. Because at dell technologies, we stop. At nothing. Becaubefore money, peopleies, wtools, cattle, grain, even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. Welcome back time now for a cnbc news update with seema mody. Here is your cnbc news update at this hour California Governor Gavin Newsom saying the state is pulling the emergency brake on its reopening as new cases surge 27 counties are moving to the states most redirective level of pandemic rules. Newsom says the new daily cases doubled in just ten days. The fbi says hate crimes in the u. S. During 2019 rose to their highest level in 2019 for more than a decade religious hate crimes were up yet hate crimes against blacks fell the data may be incomplete. A yand jury in the breonna tailor speaks out. They says their investigation was incomplete and there should be move investigations against the officers involved. Today is the deadline to submit claims in the boy scouts of america reorganization case a Spokesman Says they are devastated by the number of lives impacted by past abuse thats the it laest cnbc news update at this hour. Still ahead, we will justice president elect biden onicecom plan with the president of the uaw, who was one of the persons who held a zoom meeting with the president elect today. Welcome back breaking news on airbnbs ipo. Leslie picker has got the details. Hi wilf, yes. The long awaited s 1 reveal for airbnb this prospectus is 450 pages still digging through it, but i am going to give you the highlights a 1 billion place holder for this companys offering size it will likely be a bit bigger than that based on whats been reported they are seek being 3 billion in capital from this deal. They said they plan to list on the Nasdaq Global Select Market ar the symbol abnb it showed how the business performed as we settled into our pandemic lifestyle they posted a profit in q 3 of 219 million that was a loss in the Third Quarter. Revenue year to date was lower by 32 in the first 3 4 of the year this underwriters for this offering, Morgan Stanley and Goldman Sachs are leading it we will see kind of where the valuation winds up as the company starts marketing its road show in about two weeks is as early as they can start actually marketing it. Based on their latest private valuation, that was about 18 billion in an emergency funding round that took place in april it will be interesting to see. There have been reports showing that the company is looking for an irk po value about 67 higher that will all depend on conversations with investors and how people perceive this 450page document as they continue to look through it. Guys and whats a little unusual about this leslie is that this is the kind of company thats been this the eye of the covid storm because it depends so much on travel. Yes. Thats obviously going to be strikeout niesed as well they talk a lot about covid19 and how march and april saw i am looking, 78 decrease in gross bookings value it looks like that still is declining and that is negative, even going up to the month of september. Then they talk in the prospectus here about which areas of recovery they are seeing, domestic travel, short distance travel and how they are optimistic that things are going to come back but thats obviously thats right. Going to be a concern because they are squarely focussed in the middle of all this we saw this with door dash last week, too, where i think investors say these look strong as compares to q 3 and definitely saw a huge benefit from some of the pandemic trends that we are seeing the question for investors is how do i model this out into the future what does this business look like in a post pandemic era . I think airbnb is releasing five years worth of financialless it should be easier for investors to the questions will be around marketing spend and other things that change during the pandemic for this company. Yeah they go into the whole resilient model section where they talk all about that leslie thank you. Well continue to dig into this. We appreciate the Fast Response there. Up next, well speak with one of the Business Leaders on the zoom call with esenpridtelect joe biden, uaw president rory gamble neighbor 1 allez sound from wind chimes neighbor 2 laughing at least geico makes bundling our home and Car Insurance easy. Which helps us save even more. Neighbor 2 hey, sarah, hey, peter neighbor 1 touche. Neighbor 2 ahhh neighbor 1 pret neighbor 2 en garde for bundling made easy, go to geico. Com president elect biden hosting a meeting today with labor Union Leaders and ceos, major tech retail and Auto Companies where he discussed the role of labor unions in the Upcoming Administration listen. I made it clear to the Corporate Leaders i said, i want you to know im a union guy. Unions are going to have increased power. Now they understand. Its about Economic Growth, creating good, paying jobs joining us is one of those union attendees, United Auto Workers union rory gamble, thank you for joining us, what did you take from the conversation with president elect biden today . It was very refreshing, very enlightening joes no stranger to working families in this country and his concern and vision to advance the financial stablgt stability of working families in this country was made very evident today i was very encouraged by that. Really enthused at what i heard today. I read the statement you guys released after the zoom meeting. You mentioned the acute need for immediate economic package we heard from the president elect that he kind of endorsed the houses heros act, if there was a trade off of speed of stimulus versus size which is more important at this stage . I would say its a combination of both, of course people are hurting in this country. Manufacturers are hurting. This pandemic has put an extra burden on everybody. We need a plan Going Forward that has a lot of branches it to it and reaches out in a lot of Different Directions stimulus package is one and then a very precise, tactical plan how we address the virus and protect workers in the workplace. He was very clear on all of those. I was very happy to hear that. Some other things he mentioned in the speech, minimum wage, stimulus you discussed, Student Loan Debt forgiveness. He needs congress. So hes not going to be campaigning any more hes going to have to pass legislation eventually if the senate stays republican as is likely the case, how much of what he is talking about is actually possible you know, the great thing about joe biden in this situation is he has a lot of experience with the other side of the aisle you know, in spite of the rivalry, hes got great relations in republicans and he knows how to get things done the needs of the country should be, you know, they should be put first. And that means showing off the abilities of working families to provide, to keep everyone working and keep them safe and i think with the right leader in the white house Going Forward everyone will shine on to that and well get this country back moving again well, rory, we hope to have you back as soon as we see any of the policies on unions. We appreciate you joining us today. Rory gamble, president of the United Auto Workers union. Id be happy to return. We appreciate it from the uaw we look to tonight and tomorrow. Record close s p, transports, really strong day built often lots of optimism around the vaccine, and what it will do for the economy and value cyclical stocks that kin to outper continue to outperform. Le if it all works together with the news and the so called looming certainties to pass where we are in the process is a fgiure question. Big question small caps looking hot, a little bit strexed stretched the nasdaq up one percent from close. Not all or nothing market. The question is how much have we pulled ahead the under pinnings are there it all makes sense the question is its been two and half months weve had value and small outperforming large cap and growth not like it just started last week. As president elect said having a vaccine and widespread vaccination are two Different Things and that things will get tougher before they get better point i keep making, even in light of that, its fascinating to see how much europe has rallied even though theyve gone back into lockdown in a more pronounced way than in the u. S that shows encouragement especially for value stocks that are heavilyweighted in the europe that the vaccine use outweighs everything. Right, markets globally are locked in to the idea of looking few months ahead and well see if theres news that comes to disturb that process as i mentioned it is a global phenomenon chinese numbers great overnight. Japanese market flying back towards 30year highs. A lot of it is global nominal growth looking like its in better shape and still high liquidity and all the rest. Liquidity and the likes. Come from everywhere, that stimulus. Maybe one value will suffer well wait to see. 1. 2 on s p nasdaq up 0. 8 percent. Were out of time son closing bell. Fast money starts now. This is fast money tonights trader lineup guy, karen, and bono, tonight on fast, a monster rally on wall street s p and dow with record closes dow ending less than 50 points and first record close since february does it last until year end . We got answers and legendary analyst will join us to tell us why shes urging caution for big tech and big deal in Banking Sector bbva soaring today. What it says about consolidation in the space we start with breaking new