Transcripts For CNBC Closing Bell 20240711

Shares of pharmacy giants are under pressure after amazon said it was jumping into the Prescription Drug business bowe is off a little pour than 100 points nasdaq and s p clinging on the gains. Coming on todays show, retail earnings season full swing. Shares of coles are higher after topping eps estimates this morning. We will talk with the ceo. Plus, as the u. S. Is seth coronavirus records we will talk with dr. Eric gooseby. All of that still to come. First lets focus on the big stories today. Mike santoli is tracking the market phil lebeau has more on teslas spree into the s p 500 and we will talk about the pharmacy space and amendss move into it. Mike santoli lets start with you. It was the morning was off the lows a mild pullback. Market seemed like it needed to cool off and rest for a day. Right now riding the upper rail here we close at a record yesterday remember that. Above 3600 working below week ago mondays high hard to tell whether thats going the matter or not. Thats about a percent above where we are right now that was that intraday move on that monday morning pop. It seems like things are infact. There is a big urgency in this market and the question is are people to indiscriminate trying to get in on the shortterm. Look at the russel 2000. A vertical move right there. It has been capped for a very long time. Its twoyear chart. It was bumping up around this 1500, 1,600 area for some time it surged. There is a technical indicator relative strength index, once it gets above 70 it means the market is running hot of the it hit it there, there, there, there, there often means, et cetera getting a little bit ahead of itself i doesnt mean the trend is over but it might have some susceptibility to air pockets down the road. Speaking of big investors, they are behind the idea that, et cetera time for small caps to outperform this is the necessary percentage of managers who say small caps should outperform large caps on a Going Forward base this is a plus 21 Percentage Points it is the highest on record here you see in about 15 years. Clearly sentiment is manufacturing in that direction. The question is, has it overshot in that direction in the shortterm mike i guess the overall market levels are one thing. The other thing is how much longer can the rotation from growth into value from outperformance year to date to underperformance year to date going on interesting today value and s p 500 growth are almost neckandneck. Yeah. Even though we are not rallying as we did yesterday led by the value names it is not like they are dramatically underperforming the growth names today. Thats right. In fact even yesterday i was pointing out the nasdaq rallied about a percent during the day it was not an all one or all the other market maybe it is develop sbg a little bit lest of a zero sum gain. There is no doubt about it there is firm bid in this reopening trade. Just dont know how much those cheaper stocks which have been battered can catch up before you have to really face the numbers in terms of what earnings are going to look like after this tough Fourth Quarter probably mike, thank. We will turn now to one big individual mover tesla, the stock rallying on news it will officially join the s p 500 in december. Phil lebeau with more details for us. Sara, the stock is up more than 8 today. People expected this to happen a couple of months ago when it didnt, the stock sold off about 10 . It is not a surprise that it is moving higher. The market cap maw is 412 billion. By the way, if it was put into the s p 500 today it would be the eighth largest in terms of market cap size. It will not happen until december 21st. And the mechanics behind it, that still needs to be worked out a bit, whether it is in two tranches or happens all at once. This is tesla versus the subsector of the s p 500 which just has the automobile stocks no comparison at all. None at all. Lets look forward in terms of what catalyst once you get past this inclusion in the s p 500 what are the catalysts for 2021 . In january they are going to set their sales target for next year most say it is going to be in the range of 800,000 to 850,000. You get the berlin and texas giga factories up and running. They are going to crank out versions of the cyber truck as well as the semi not high volume but highprofile vehicles thats what people will be looking for in 2021 from tesla also whether or not it continues to be profitable once they hit four in a row of profitable straight quarters that was required to be included in the s p 500 december 1st is when it is supposed to happen. Up 600 over the last three yrs. Meantime pharmacy stocks like cvs and walgreens sinking after amazon announced the launch of its digital Prescription Service we have more. This move was three years in the making building on its 1 billion acquisition of pill pack amazons on line pharmacy is in network with most insurers while it wont have physical pharmacies if you need a prescription right away you can download a card and get it filled at a drugstore. You can also talk to a pharmacist virtually prime members get twoday Free Shipping and a quick compareson on cash prices when you pay without insurance putting it in competition with good rx to look at the comparesons you have to open an account. After entering the last four digits of my Social Security number and date of birth i was surprised when the system automatically generated my insurance member number begging the idea about privacy and personal data. We are told shopping the pharmacy is separate and distinct from amazon. Com and that data will be stored in compliance with Health Privacy rules. Good rx getting hit today even harder than the drugstore chains it is really an assault on them. I will be talking with good rxs ceo tomorrow at cnbcs disruptor 50 summit. You can sign up for that at c c cnbc. Com events. Im amazed. Just from your Social Security information, how do they get that data . How is that allowed . I am not sure about that. One thing is they are already in the pharmacy system and the back end of their comparison tools is in conjunction with cignas inside rx. I think that may be some of the way that they aggregated it was surprising whenever it popped up because whenever you go to a doctor they are always asking for your physical card or for your number. The pharmacy stocks although they are getting hit hard they pivoted to try to make their pharmacists part thor . Of the Health Care Interaction a cvs spokesperson told me look krsks is a lot more than a pharmacy and pharmacy is a lot more than dispensing drugs certainly these days when you look at whats going on with testing and the eventual distribution of vaccine thats certainly true for the pharmacies shoo good point better that, thank y bertha, you. Bertha comes it is alwa im thinking back to when they bought whole foods and when kroger tanked on the news and came all the way back. As an investor, how do you see this if you are in some of the pharmacy names it is not an unexpected threat i think you could argue that todays oneday move seems exaggerated in the likes of cvs and walgreens. But thats also because they were up so much this month even with todays declines they havent give up half of what they gain eed month to date i think they got caught up in trade of the oemt. You have hot money backing out i think there are longer term questions probably about the economics of the pharmaceutical distribution food chain. It has been opaque people for years have said there is too much friction, too many middle men along the way taking a cut. If amazon comes in there and maybe cleans some of that out it could be a theoretical threat. I think todays action is just stocks that were on a huge run that had this unexempted little kinds of knee capping by amazon. Mike, thanks for the perspective. After the break, shares of coles climbing today after the Company Topped earnings estimates. We will talk to Michelle Gass about what she calls the home body economy and how coles plans to cash in on that you are watching closing bell on cnbc. The dow is down about 100 points i have an idea for a trade. Oh yeah, you going to place it . Not until im sure. Why dont you call Td Ameritrade for a strategy gut check . Whats that . You run it by an expert, you talk about the risk and potential profit and loss. Couldve used that before i hired my interior decorator. Voila maybe a couple throw pillows would help. Get a strategy gut check from our trade desk. This was the theater i came to quite often. The support weve had over the last few months has been amazing. Its not just a work environment. Everyone here is family. If you are ready to open your heart and your home, check us out. We thought for sure that we were done. And this town said not today. Its time you make the rules. And this town said not today. 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. Shares of coles soaring today following earnings before the bell reversing a premarket loss up now more than 10 the company reporting an adjusted surprise profit of one cent compared to expectations for a 43 cent loss as well as plans to reinstate dividends during the first half of 2021. A drop in same store sales, the stock has been on a tear since march lows rallying by more than 120 joining us now, coles ceo Michelle Gass. Thanks for having me. Still a double digit decline in sales but it ds will be like it is Getting Better from the prior two quarters and that you are able to get higher margins against fewer promotions tell us what you are seeing out there. First it is important to know the context. We are still operating in a pandemic and thats influencing how people are shopping across all industries i think for coles what we share today is really the stabilization and the strengthening of our business. We did see our sales accelerate from the prior quarter, quite significantly. I think importantly we saw our profitability increase substantially, which is a testament to how the team is navigating and managing the business and proud of the Balance Sheet. We ended the quarter with 179 billion of cash on the Balance Sheet while also paying down our revfler this quarter and as wee just mentioned announcing we will reinstate our dividend next year. A lot of the analysts are impressed with the strength of the Balance Sheet and the debt raise. How do you get the sales number back in the black . And how long is it going to take do you worry about loss of share to some of the retailers like a target which was deemed essential and allowed to stay open during the pandemic sara i would answer that in two ways i think, first, while we are in the pandemic we are going to clearly be where the customer is this has given us the opportunity to lean into digital. That continues to be a strong channel for us it was a third of our sales this quarter, grew more than 25 . We expect that to continue into the holidays i think importantly for us it is about the strategy that we shared about a month ago in terms of how we further separate ourselves in the overall industry im really optimistic about that strategy i do think it will reinstate growth for the company you know, for us, we took the opportunity we are in the midst of a crisis. It is tempting to just focus on the here and now clearly we are operating very well with the conditions that we are navigating but we also took the opportunity to look ahead and study where the consumer is going and how they are living today. So what we see these are strengths of coles, they are living more comfortably, more casually, they are more active omnichannel is on a big acceleration and then the role of value we took all of those things into consideration and formed our new strategy which is to be the retailer of choice for the active and casual lifestyle for families we think that well really separate ourselves based on the white space to serve that active family across all the brands we offer and all the categories of goods that we sell and again, supporting our omnichannel platform, we serve more than 65 million customers so i am very optimistic as we look to 2021 and beyond. I know you are saying it and you have tried to distinguish yourself with the athleisure wear which makes up a chunk of your sales how else are you combatting the narrative on wall street and beyond that Department Stores are stuck in a funk and they were before the pandemic and like many other things the pandemic accelerated trends to on line and away from these sort of bigger box stores where you can buy different things, not to mention, apparel is not a growth category right now. Sara. I really dont think about cohls as a Department First i think about location 95 of our stores are off mall traditionally Department Stores have been viewed as a mall anchor thats number one. Secondly, the categories that we sell i talked about hower with going to really shift greater focus into this active and casual lifestyle. Today our active business is 20 of our business. We see that going to 30 or more we way outshare in the Department Store sector on active of even on the home category thats been a big growth engine. Again, significantly more share than the Department Store sector the wi we lay out our stores different than how one thinks about a traditional Department Store. You can browse as long as you want but it is easy and convenient to get in and out we are leveraging that footprint in many ways not just to sell product but using the store for fulfillment. 40 of our digital orders are supported by the stores in some way and we have introduced new innovations like amazon returns. Our anniversary is coming, for just about a year. We serve family and now we are going to distinguish ourselves to be focused on the active casual and focused needs of the family itself. What is your footprint in the u. S. Today where do you think it could be in three or five years everyones expectation is less bricks and mortar, more on line retail but are there opportunities to seize more as other retailers go under. Our Stores Across the country generate a lot of cash it has been good to have them back open. More than 90 of our stores generate over a Million Dollars in cash a year so they are very, very healthy as we were just talking earlier, there is a lot of industry disruption happening in certain sectors. I think kohls is really well positioned to take advantage of that market share. Over time well see. We are constantly experimenting with new store formats, smaller footprints right now worry focus on navigating the pandemic and continuing to strengthen the business but over time there could be opportunities for kohls to build even more stores. A question about the state of the u. S. Consumer. The vaccine is hopeful on that information your stock went up 22 on one of the vaccine news days. It is not here yet coronavirus cases are rising and stimulus hopes are faded what is that doing to the industry right now retail seems to be down. There seems to be a lot of pressure on the consumer we are all navigating this pandemic which there was no playbook for Health Concerns are a pressure coupled with the economic pressures that families are facing i think for us, you know, its number one, first and foremost doing everything we can to protect the health and safety of our people and our customers i mean, we employ 100,000 people and their safety is priority number one and then facilitating our stores so our customers are as safe as they can be. We have made great progress in that regard. We will continue to operate in this environment as long as we need to. As it relates to the economic side of it, you know, our company we are a fan of anything that can help the consumer we look forward to a day where this is behind us. In the enmootime we will do everything we can to be there for the families woe serve. Michelle gass thank you for joining us. Thank you sara. On earnings day kohls up more than 10 . Big jump. The votes under way right now for judy shelton, President Trumps nominee to the fed with multiple senators in quarantine her approval is very much up in the air fascinating moving parts with regard to that an update after this short break. No one likes to choose between safe or sporty. Modern or reliable. We want both we want a hybrid. So do banks. Thats why theyre going hybrid with ibm. A hybrid cloud approach helps them personalize experiences with watson ai while helping keep data secure. From banking to manufacturing, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. See yourself. Welcome back to the mirror. And know youre not alone because this. Come on jessie one more. Is the reflection of an Unstoppable Community in the mirror. Welcome back time for our coronavirus tracker. The u. S. Officially adding more than 2 million coronavirus cases so far the monday. With 13 days left to gon november it has already added more cases in one month than at any time during the pandemic iowa state issued mask mandates indoors. Utah, and West Virginia issued mask mandates of their own last week today is one year since china found its first case of covid19 new reports found that coronavirus was circulating in italy as early as september, 2019 sara wow crazy to think about coming up, citi setting a price target on the s p 500 next year. We will talk to its chief equities analyst. Also after the break the vote is almost over for controversial fed nominee judy shelton. More than 90 senators have voted. Just waiting on the last few more on this story after the break. As we head to break, a check on bonds the tenyear yield be. 87 taking a step back from th rally. Still, the tenyear note yield,. 87 well be right back. About 30 minutes left of trade. Dow is down 200. Time forea cnbc news update with sue herera hello sara. Hello everybody, heres whats happening at this hour france is making some covid19 news it is the first european nation to confirm more than 2 million cases of coronavirus the number of covid19 hospitalizations in france also set another record today senator Majority Leader Mitch Mcconnell saying it would be a mistake to reduce the number of u. S. Troops in afghanistan and iraq this less than an hour after the pentagon announced an order from President Trump to do just that. Mcconnell also warning against any major changes in u. S. Foreign policy in the next couple of months. In iraq, four rockets have hit inside baghdads green zone. Some fell near the u. S. Embassy. Police so far are reporting no injuries. A look at a remarkable fossil of two enter twined dinosaurs. It found a permanent home now at a museum in raleigh, North Carolina the tran sore outside rex and the try sar tops appear to be locked in what looks like a final death match. You can kind of see it there, our lower third gets in the way a little bit but it is a very cool fossil there we go. Thank you for that, control room appreciate it. You are a fan of dinosaurs. I do. I love dinosaurs, i love the finding the fossils and the auction. There was a big fight over what museum would get this particular set of fossils, too. There we go i bet you are in the fight, too, i am sure you would love it back home if you were allowed. Exactly thank you so much. You got it. Just under 30 minutes left in the session at the moment we are down 189 on the dow. Pulling back again a little bit in the last half hour. Lets have a look at individual movers game symptom shares are under pressures as one of the investors are calling for a Strategic Review in store close yours. He says game stops Business Model currently is outdated. The to be is down 4 lube capital who owns draft kings is up. They will be the biggest beneficiary of the domestic Online Gaming industry, he says. The stock up 8 . Up next, a strategist lays out his 2021 target for the s p. And Richard Fisher talks about what he wants to see from the incominged avation. Palantir jumping 20 today after a number of funds disclosed stakes in the Company Including the sorrows fund first up is this exquisite bowl of french onion dip. Im going to start the bidding at 5. Thank you, sir. Looking for 6. 6 over there do i hear 7 . 7 in the front 7 going once. Going twice. Sold to the onion lover in the front row next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowedout loaf of sourdough bread. Dont get mad get e trade and get more than just trading investing. Banking. Guidance. Get e trade and get more than just trading people greeting one another its coming in to catch up with the owner. The curated collection you cant find anywhere else. And how she sets aside those pieces she knows are so you. The small details are a big reason to come back and shop your favorite Small Businesses. We know them. We love them. So lets go shop small. With american express. But before we sign i gotta ask. Sure, anything. We searched you online and maybe you can explain this . I cant believe that garbage is still coming in. That is so false frustrated with your Online Search results . Call reputation defender today to join tens of thousands whove improved their online reputation. Get your free reputation report card at reputationdefender. Com or call 18778668555. Want to show you a live shot of the senate floor right now where the votes are happening for President Trumps nominee to the Federal Reserve board of governors for judy shelton she has been controversial because she in the past had supported returning to the Gold Standard also, there are questions about his independence of the fed. Whether she believes the fed is truly independent and would not take cues from the white house so far the vote is 4749, 49 against. We will wait to see if any votes come in against or if Mitch Mcconnell changes his vote which i believe could trigger a new vote to start. Two senators are quarantining, rick scott of florida and Chuck Grassley are both quarantining due to exposure to covid19. They are key votes this is a nile baiter. To the financial world it matters because feds get to vote on policy and what happens to qe meantime, dow is down 200 points only sector thats positive in the s p is real estate Everything Else is down. Nothing too sharply. Utilities down 1. 7 . Health care, materials and technology kind of a mix there of winners and losers walgreens weighs on the dow. Boeing is the leader nasdaq outconfirms. Lets discuss it. Citis chief u. S. Equities strategist is out with his 2021 year end targets pre60s the s p will see 3300, and 34,000 on the dow. Assessing the targets by percentage upside suggests more upside in the dow. I guess you are saying there a bit more room to run with the current rotation into cyclicals based on the makeup of those two indexes . Right thanks for having me we think in general the market is in better shape because of the news we are getting particularly around vaccines and things like that it is not all going to come together in the very, very shortterm but the market tends to be more predictable in the future and importantly, more modest upside because if you start losing leadership from the very, very large mega cap trillion dollar type Tech Companies that will act as a hindrance for the broad s p. As a result that rotation probably continues but they are going to get some bumps along the road it is not all going to be perfect. I think the real turning point might be around february, march, april next year when you start seeing some of the what you want to call work from home stelter in place covid beneficiaries start to comp against the difficult numbers from the prior year, meaning 2020 and the covid impaired industries see an improvement in their trend at least the perception of low base effects generating what seems to be more powerful business momentum. Tobias where do you see say the tenyear by December Next year how is that influencing what you think a reasonable valuation multiple is and which sectors will outperform . Sure, our strategist who makes the rate call for us, i dont do that. Is looking at 1. 25 on the tenyear yield by the early part of next [ indiscernible part of this is again the economy is Getting Better strength partially because of vaccines and also the senior loan officer survey from the Federal Reserve board showing an improvement in Credit Conditions and easing in the tightening of the we saw severe tightening reminiscent of what we saw in 2008 and 2009 that started to ease up. Thats a good nine month indicator forcalcal Economic Activities from that perspect we should get improving trends looking into next year, particularly second half. Tobias, we need to health hit the pause button on this discussion we have an update on the vote regarding judy shelton. Mitch mcconnell stopped the process of confirming judy shelt ton to the feds board of governors for now. Now, the concern is that there are several republican senators who are not in town in order to vote to move her nomination forward. And that means that the gop currently does not have enough votes to confirm shelton so mcconnell has stopped the process. Democrats are all voting together in opposition to shelton. Vice president elect harris, a senator arrived at the capitol hill at the last night in order to cast her ballot to block this nomination if it moved forward Mitch Mcconnell now stopping the process of confirming shelt ton for today. He is trying to restart the process. We could possibly see this play out once more later on this week guys. All right that was suspenseful ylan thank you very much ylan moi on the suspenseful confirmation or lack of a confirmation of a fed officer. Tobias, no Market Movement here but it raises the question about fed policy for people like you who see value outperforming and better Growth Prospects ahead how much longer do you want the fed to be all in with massive accommodation if we are starting to see an improved outlook because of a vaccine and therapeutics i think it is a good chance it is a highly controversial topic. I had this conversation with a number of people literally in the last few days that if you are at a point again, we have almost moved out a year from now, think about where we would be potentially in october or november of next year and the economy issing to better it is likely the fed will start to change some of its tone it doesnt necessarily have to provide quite the same level of optimism and in terms of keeping rates low forever. You know, that things are Getting Better so maybe they dont to be as accommodative. At least the verbiage may change we dont believe they would raise Interest Rates right away. But verbal asituation, they dont have to be as forcefully accommodative in their ways. What sectors do you think represent the best value. Their three buckets of value we have to think about the financials buckets, which is very sensitive, obviously, to tenyear yield moves, the euro curve thing like that, credit losses [ indiscernible there is a fair amount of concern right thousand about that element with respect to the second bucket, travel, entertainment, less your, hospitality, thats so vaccine sensitive in terms of you and i feeling comfortable going out and doing thing we were doing before coronavirus hit. The third bucket would be industrials and cyclicals that are benefitting from an improving ism, inventory restocking probably doing to be some infrastructure spend maybe not as much as people anticipated before we saw the votes in congress. Nonetheless, there are likely to be some infrastructure dollars and what i was talking about before, the notion of economy improving starts to improve Capital Spending and manufacturing to pick up by mid year. You said the stayathome stocks might start to you go havel april or so next year when they come up against tough comps. What about in the shortterm some have pulled back already. In the shortterm do they have room to run. Almost think of it this way i was looking at one of the stocks i wont mention the name because i would have to get disclosures. One stock was down 17 in that work from home beneficiary group. The company has 360 million shares outstanding 99 of the holders couldnt get out and are down 19 every time that stock tries to tick higher there will be some sellers who want to reduce their position recognizing you know that the trend that has been so favorable will start to lose some of the momentum and these are moment updriven stocks if the momentum slides some people will sell them because it doesnt fit their style of investing. Tobias, thank you for joining us appreciate it. With the dow down 200 from citi. Up next we will break down all the big to be moves of the day when we go inside the market zone next a reminder, you can always watch or listen to us live on the go with the cnbc app. Closing bell will be right back flexshares may look simple on the outside. But inside every etf. There are untold hours of careful construction. Infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Hey, our workers comp insurance is expiring. Should i just renew it . Yeah, sure. Hey there, Small Business owner. Pie insurance here with some sweet advice to stop you from overpaying on workers comp. Try pie instead and save up to 30 . Thirty percent . Really . Sure get a quote in 3 minutes at easyaspie. Com. That is easy. So, need another reminder . No, im good. Reminder for what . Oh. Ho ho, yeah need workers comp insurance . Get a quote in 3 minutes at easyaspie. Com. You can go your own way 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. But before we sign i gotta ask. Sure, anything. We searched you online and maybe you can explain this . I cant believe that garbage is still coming in. That is so false frustrated with your Online Search results . Call reputation defender today to join tens of thousands whove improved their online reputation. Get your free reputation report card at reputationdefender. Com or call 18778668555. Hey, son no dad, its a video call. You got to move the phone in front of you like. Like its a mirror, dad. You know . Alright, okay. Hows that . Is that how you hold a mirror . [ding] power e trade gives you an awardwinning mobile app with powerful, easytouse tools and interactive charts to give you an edge, 24 7 support when you need it the most plus 0 commissions for online u. S. Listed stocks. Dont get mad. Get e trade and start trading today. We are now in the closing bell market zone, freshl free coverage of all the Market Action heading into the close. Mike santoli is here to break down these crucial moments of the trading day. Today we have Eugene Profit with us as well the dow and s p 500 trading in the red after record closes yesterday. Small caps outperforming again the russel 2000 on track for its third record close in a row. It is up a third of 1 the s p down about half a percent. The dow splitting its losses it was down 400. Down about 200 now mike you mentioned various shortterm measures suggested we were due a bit of a pullback the fact we are still higher for the week and the rotation is not undoing itself aggressively is constructive is this right, a pause at this point. Remember, the s p up close to 11 coming into today month to date thats most of the year the date growth as well the Risk Appetite is relatively healthy. I still think it shouldnt shock anybody if there is a little bit of a giveback at some point mostly for positioning and sentiment and technical reasons. Also we are going to run into perhaps unfriendly economic numbers. The retail sales was not great didnt cause alarm but has people on alert for softness. We are also coming off of record highs both for the s p and the nasdaq eugene have you been making moves off the vaccine announcements and at the same time rising caseloads of covid here in the u. S. A little bit. But i am going more towards stocks like intel where i see the vaccine being approved, but i think it is going to take time for distribution to come on line i am concerned about the time period between then and now and i see the economic softening im not all the way over the stayathome trades. I am not completely at the cyclicals. I am sort of more of a barbell looking at companies with strong blaents, cash Balance Sheets, sg Balance Sheets that can survive the next three or four months. Then once distribution comes into play, we will be able to broaden out the value. Lets look at stocks moving. Home depot and walmart both reported beats on the top and bottom lines neither provided future guidance both are in the red. Kohla posting an earnings beat but missing revenue expectations the company says it plans to expand in active wear, going deep into that category and personal care over the next year we just talked to ceo Michelle Gass and she pushed back on the idea that kohls is a Department Store and suffering some of the same weaknesses the other are facing. I dont think of kahls as a Department First i think about location 96 , the vast majority of our stores are off mall. Traditionally Department Stores have been viewed as the mall anchor thats number one. Secondly, the categories that we sell i talked about how we are going to really shift greater folk introduce this active and casual lifesty lifestyle. Today our active business is 20 of our business. We see that growing to 30 or more we way out share in the Department Store sector on active trying to make the case there for the strength the stock is up now more than 11. 35 trz. It was up about 10 before the interview. Mike, how to the valuations stock up for a kohls versus a walmart which has done better this the pandemic and also in the market. Kohls historically, it looks inexpensive. It was actually a very cheap stock even before this phase but it is not earning money right now. It is in kind of more of a break even type position on a sales basis it still looks cheap. Walmart has everything working fundamentally. The stock is trading at premium, but not to a crazy degree. I think walmart is much more about just how it can continue this type of top line momentum and the cash flow growth into next year when we are working up against tougher comps, with more competition, more stores open. Different ends of the Retail Business but i would say you can take what kohls says about them being different from Department Stores to heart but still say you are brick and mortar thats not even if it is not career wear at Department Stores and cosmetics and julie. Sticking with retail, eugene, what are your standout picks there . I think mike is spot on with a name like kohls they have done very well part of that is the amazon returns policy the ceo did mention that they are seeing 20 touch on Digital Sales coming back to the stores. I didnt get an overall read on what their overall on line Digital Sales are. I think along the lines of a kossco, which we have in our portfolio, for disclosure purposes if we have a softening of the economy and we go back into shutdown mode you are going to have consumers occupying those stores and buying in those stores and they are going to do quite well kohls had a robust earnings quarter and did very well but they are not earning money i was happy to see the cash on the Balance Sheet but it is not a stock we are owners of. In general on the consumer, mike, remember when we were talking about stimulus on, stimulus off every single day . And it feels like are investors resaned to the fact we are not going to get stimulus before the end of the year and potentially into the next administration if so, can the economy handle that we saw signs of slowing in the data today. We did. Definitely ware and tear this the retail spending numbers. Can the economy handle it . It depends what kind of economy you have are you going to have consumer momentum Home Building continues to be very strong. Home related very strong home depot shares cant get out of their own way because people wonder how long that can last. We talked about the build up of savings after that stimulus, after people cut back on travel and things like that that is still with us. There is still a cushion, it is just not quite as deep as it was a couple of months ago it is going to diminish over time i do think there is some flexibility still in the next couple of months where the consumers that where with all to cover thing for now just because of the aggregate savings. We have five and a half ains minutes left in the session. Lets look at tesla once again charging higher on news it will join the s p 500 and begin trading on monday december 21st. Based on yesterdays closing prices it would be one of the ten most valuable companies in the s p. They were passed over for the index back in september despite meeting the needed criteria which required four straight quarters of profit it will be one of the ten biggest overall but not my market weight because the 20 held by tesla means it will be valued by 80 of its weight. Joining the s p. Rare that you join already of that size. Bob pisani pointing out how consume discretionary as a sector is going to have the most bizarrely stretched pe level when weighted. Whether or not people trade sector etfs based on things like that i am not sure it is going to become more volatile than it already is. It will diminish amazons dominance over that sector there are also the equal weight etfs in that sector if you want exexposure to consumer spending. A lot of things are ruffled by teslas entering there is not a company that can lead the index to offset it. It is going to take some doing i think the question is legitimate in terms of what kind of stock tesla becomes more establishment less of a maverick it is going to be a 15 or more owned by the passive index funds. We will have to see if it represents a culmination moment for teslas rise or whether it is another step along the way. It is a enduring reason to think whether or not the stock will outperform you enter the index, many stocks dont do well at all once they index buying it it is kind of a one term jump. Eugene, do you have tesla. I do. Because of its valuation and the run it has had we like the company very much. But this might be a sell the news type of scenario here for in the shortterm. Mike, how has it performed since everyone thought it was going to join and since the stock split, similarly with apple and the big cap tech stocks that have these bigot single factors helping them . It peaked around 500. Thats the split adjusted number it was on august 31st. It had a pullback once it was is your seved to be snubbed and not getting into the index and went down to 330. But the stock has calmed in the last couple of months it has not really made a run at the old highs but it held together of the it held the market value in there. I dont know obviously why the Index Committee had put off this decision obviously it is difficult to keep a huge company like this out of the index arguably the fact that the stock settled down a little bit didnt hurt its chances just to get in. I think it just went nuts in the leadup to that august 31st high. It was under 300 to 500 in weeks. We have just over two minutes left down about half a what are the internals show sthoog they have been firm most of the day even when the s p was down a fair bit if you look at volume submit on the new york stock exchange, decidedly to the positive thats reflective of smaller stocks doing better than larger stocks a 21 advancing to declining three new lows thats rock bottom you almost never get less than that clearly, all boats are being floated by the rising tide 136, and over 100 new highs. Healthy. Clearly, the trend indicators are in the markets favor right now. Even if things are getting stretched and overbought in many sectors. Lock a the volatility index. It is supported by the fact that the market itself has been jumpy in the last few weeks. Therefore these swings that we have is keeping volatility bid 22 definitely in a down trend since election day sara. A minute left before we close. The dow is down 155 points at the lows of the day we were down more than 400 things have certainly improved and a lot of the losses have to did with first of all walgreens which is getting hit on the back of news that amazon is plowing deeper into the Online Pharmacy business and home depot which hit on every metric but was listed as potentially a selloff. Boeing, sales force, nike, dow, and Goldman Sachs up at the lows we are down a . Now lower than that. Half a or so. Most sectors are lower energy and real estate are positive that happened in the last few moments. The worst performing sector is utilities. Selling off at health care and consumer staipels also at the bottom of the back there is the bell. Russel 2000 closing higher the first down day in the last three. And coming off of record highs for the s p and theu. Breaking the recent trend nonetheless, still very much higher for the monday. Welcome to closing bell. Im wilfred frost. Along with sara eisen and mike santoli. The russel 2000 was up. 4 continuing its surge, this month up 16. 5 the s p and dow slightly lower the nasdaq down just. 2 also still higher over the last two days coming up, dr. Eric gooseby, who was recently named to the biden harris Advisory Board on whether spiking coronavirus cases across the nation will lead to new lockdowns. He will be joining us to discuss. Eugene profit is still with us and degas wright joins the conversation as well mike santoli, first to you and how we finished up one thing we havent mentioned perhaps as much during the first hour of the show is where yields are. Tenyear did slip back a little bit, again just showing it peeks out every time we have a bit of a rally in yields. It seems to pull back in a way that at least the value stocks havent pulled back so much. Not too much. There definitely seems to be a resaint on yields in absolute terms. A big rise up towards 1 not long ago soft stocks action also takes a little bit of the oomf out of the yield story. It is still in the up trend. Hasnt gained too much in terms of treasury yield. But there is not a signal that says it is all risk on, run towards the cyclical stocks. There was a slitly diminishing returns effect of the moderna and pfizer announcements we have those catalysts hype us. A lot of people decided to lay their bets in terms of a year end rally and get aggressive on betting in cyclical. Now it is just a matter of how much has been pulled forward in those areas. Overall a mild decline a cooling off of a somewhat over heated market for one day. Eugene, what do you see as the next catalyst here, as we have gone from one vaccine update the another over a weeks time period and it proseld this market up to new highs what is next i think we go sideways, sara, until we get past the georgia city elections because i think that if you look at even what happened today with the fed nominee, you might have a change in how Congress Reacts to different thing. I dont think we will see a stimulus before we get the new administration in place. I think thats a little bit of an issue to some extent what you are seeing in the market is a concern that the economy is softening, the consumer is getting a little bit weaker and i think we will get stimulus but depending on when we get it, tells you how long it is going to take to get to the other sid of the pandemic and get the vaccine distributed. Then we can be off to the races. I dont know when that timing is i dont think it is during the First Quarter next next year. Degas, are you into more rotation or are you buying the tech names right now i wouldnt be buying the tech names. Imlooking at breaking down this you know, the stocks that we are investing really through different groups we have the physical Service Sectors thats really been impacted by the covid, and you see those jump as we get news on vaccines and technology is really ran really fast. I am not so much looking at technology but i am looking at those companies that may be more long term disruptors because i am looking at more like a sixmonth to a 12month runway here to really identify some good names. Like what can you name some of them for us yeah. So, exactly. One great name that we hold is paypal you know, people use paypal on line, they use venmo and also, a few weeks ago, paypal announced they will be paying some of their vendors use bitcoin. Once again, we see a disruption in the Banking Community the way that we pay for items. And paypal is a great example. That you are seeing something thats being lifted up with the covid stayathome but that has more of a long term impact so thats what we are starting to look at as investment opportunities. Eugene, as we look into next year, do you think we will still be driven by these kind of broad sector rotation themes which are driven more by macro factors or will there be a groer focus on earnings. I think we are going to be driven by sector rotation and macro news of whats going on in the political environment, whats going on with respect to fiscal stimulus. Underneath that, though, i do think you are going the start seeing earnings comparisons coming back into play. As you go out into the six to 12month time frame then you do want to see companies with strong Balance Sheets operating as if the pandemic is coming to an en. But in between that time it is going to be all about sector, rotation and going sideways, i believe. Degas, what do you do if you own the farm she names in walgreens, cvs health got hammered today on the back of the news that amazon is going to be Online Pharmacies is that a buying opportunity or stay away i think if you hold it, first of all, i think you are going to be fine. Because we saw the same thing happen when amazon got into grocery. With crowinger and other grocery names. Took a big hit as we see, kroger is still doing well so i think these names, the pharmacy names r going to do well we have a oneday pullback as we go further out at the end of the year you are going to see these names bounce back. So if you are interested in these names before, this is a buying opportunity. Mike, will focus start to pivot back to the need for some kind of stimulus as we get to later in the year, whether it is fed or fiscal policy driven . And if we get that kind of action, will it drive markets higher or is it already expected. I dont think it is firmly expected certainly not any specific magnitude of potential stimulus. I think it is going to depend on how the Economic Data go from here in the next several weeks and through the end of the year. Fit feels as if there is real deceleration going on i can absolutely seeing people who are trying to draw up their 2021 gdp forecasts and say well we had this massive fiscal stimulus in the early part of 2020 we are going to be lapping that. There is going to be fiscal restraint on a relative basis next year because we operate in a year over year world by the way, what the fed is doing is buying a fixed amount of bonds every month even though they dont want it to be seen as stimulus or as economic support thats actually going to be going down as a percentage of net treasury issuance going on. There is this slelt tightening, too. Only if the data and the markets act up is that going to come into focus but i could see that story line taking shape at some point. Lets his housing home Builder Sentiment soared today to another new high this month. Diana oleic has the details. It broke three record highs in as many months, soaring to 90 on the National Association of Home Builders monthly index. Anything above 50 is considered positive last november it was at 71 current Sales Conditions up 6 points to 96 sales expectations in the next six months up one point to 89. Stocks of some of the biggest names up slightly on the news bucking the trend of the rest of the market. And we do get octobers read on Housing Starts tomorrow given this kind of sentiment we are expecting possibly to see a boost there as well. Back to you guys the recovery continues to play out diana, thank you very much degas, do you still bet on the the Home Builders . They have had a really strong run but it looks like the data is still coming in good. Well, and we are holders of nvr. That company has been doing very well, as she renged some of the other Home Builders. We think this trend is not going to stop. It going to continue into 2021 there is actually less of a supply and greater demand for housing. Thats whats really driving this surge we are seeing in the Home Builders. I was just talking to one of our clients that has a subdivision and he cannot have enough supply of housing because demand is so great. And so we are going to continue to see that into 2021. Mike, do we start to see pressure in this sector if rates rise i mean, or are we so far from rates being high enough to really hurt Mortgage Rates the stocks have been very sensitive to treasury yields going up the itb, the home builder etf is 8 off its high. It had an amazing run going into the peak it is noted a if it has been a pod bad performer but i think there is sensitivity around the idea that the numbers in terms of home demand are poe tengs tngsly almost too good this the shortterm and kind of nowhere for them to go except to moderate yes, i think at some point the stocks will be sensitivity to yields i dont think that affordability is all that sensitivity to Mortgage Rates going up for a little while though beyond that. The other question is whether housing is a leading indicator for the overall economy or a smat separate kind of indicator. If you look at the retail sales data and the categories that were having to Building Materials were positive, autos were positive. But groups like apparel, even sporting goods, sharply down restaurants also fell in terms of spending for going out to eat. Where does housing fit in with the overall recovery and where the economy is going i think it is hard to say it is a leading indicator but it is a very powerful driver in the sense that it kicks off a lot of other friending when you have housing turnover i think it is a good aor that, et cetera growing faster than the overall economy. It supports spending but it is certainly a matter of housing related home goods big ticket and all the rest. It is unclear how mauch of that activity we have already envoid joyed this year and how much is yet to come. A lot of activity already enjoyed. Thank you for joining us today up next, former dallas fed president Richard Fisher is back the talk about weather the u. S. Iapaw left out of that huge ne asn cific trade deal will hurt the economy we are back in just 90 seconds welcome back of china scoring a victory on the trade front this weekend it along with 14 other Asian Pacific countries signing on to join the rcep. Its expected to account for 30 of the Global Economy and encomp us a 30 of the global population this is the second agreement not to include the United States with President Trump pull out of the tpp, the Transpacific Partnership in 2018. Joining us, Richard Fisher thank you for joining us good to see you. Thank you, wilfred. Good to see you. Is this a big blow, that this deal has come together with china, without the u. S. . You know, i harken back to the apec meeting in vietnam in 2017 where President Trump just harped on how we were being taken advantage of i think that was one of the motivators for this, in addition to the transpacific agreement that was achieved earlier. By the way, president obama also couldnt get support in the congress for the transpacific agreement. So it is going to be hard Going Forward. It gives these folks an advantage in terms of not just so much tariff cuts, but going back to rules based trade, as its called, and building relationships that are very important, supply chains and so on we are being cut out theed bian administration is going to have to figure out a way to get its nose back under that tent. Right now it is being driven purely by pacific countries and we are excluded. It is not a good thing. Can the u. S. Realistically join this agreement if as you have rightly said there wasnt enough backing to join the tpp or establish the tpp, which excluded china will there be enough to join something as sort of a second citizen that china set up in the first place . I dont think it is going to be that easy as a trait negotiator, when i was negotiating trade back in the Clinton Administration and later on in the george w. Bush administration those leading that effort we were viewed as the most important economy in the word, you couldnt do anything without us. They found something without us. In the Asian Pacific region, a third of the population, growing centers, where supply chains are located or headquartered it is going to be very hard. I think theed bien a administration has to be very creative in coming up with a new way to figure out new relationships on other planes not just tariff cuts but show also that they are going to be rules based which is what the Trump Administration screws the whips. If you start on that over time but it is going to take a great deal of time to regain that respect in the pacific i really worry about night richard, we have sort this nascent recovery that we are watching closely how much impact do you think the trade situation, the fact that we have tariffs on china still and on others is influencing how our recovery is going to take shape. It is the cost of doing business if indeed the Biden Administration is determined to give labor a bigger voice, to raise the minimum wage to add further restrictions and regulations on the way business is conducted at least the platform they put forward it is one other cost factor for businesses what you want to do is lower the cost of doing business and lower the frictions of working with your supply chains. So this is just one more thing that we need to figure out a way to deal with in order to help operating costs of our businesses that deal internationally and source their product and source their inputs from the pacific region. Its just one more cost factor that i wish we didnt have having said that, richard, what is your outlook right now for the economy given we are in this limbo period until we get a vaccine which we are hoping is going bring us back to early in. But at the same time dealing with rising cases and the impact that could have on mobility, and this recovery. Sara, we are better equipped to deal with this now, but it is as you mentioned we all know what the trends are. This will set back consumption consumption drives the u. S. Economy as you and wilfred and i know and all of our listeners know, drives about 70 plus of the u. S. Economy if you get people back at home, you restrain their activity in terms of their spending patterns, thats going to hurt consumption, it will slow down growth we are recover we recovered quicker than anybody including the Federal Reserve imagined but it is possible we will bump our head on the ceiling and go sideways for a while thats that we are worried about right now. The markets dont pay it much attention butthats what the economists are paying attention to all sorts of candidates for president elect biden treasury secretary from brainard to yellen do you think central bankers make good politicians. I was part of the Clinton Organization she organized all the cabinet executive officers she understood very well how it works to deliver politically a forward administration she was unique sara is a former see has that experience as well janet doesnt have that intense. It depends who they are, what their book ground and experience is we will have to see. I will rather high on lael i think she has enormous capacity remarkably wicked smart. She is also become a good fed governor i think there is the good possibility in 2022 he will be in Good Standing to become fed chairman if thats what the president wishes to have. In the meantime we just got the nomination of judy shelton for fed governor failing in the senate up clear whether mitch will bring that up for vote again there were two senators absent due to quarantining of senators. What do you think of someone like that who could be controversial given her views on the Gold Standard and fed independence isnt it good to get more voices around the table it. I feel sad for her as a person but i was one of those who signed the letter saying she was not appropriate for the board of governors. She was too political. She hasnt satisfied people she believes in fed independence she has been all over the lot. I think her views are too extreme. Having said that it is important to have different views on the board of governors. There are seven governors and the 12 Bank President s i dont think it would send the right signal to have ms. Shelton made a governor at this time i am not sure Mitch Mcconnell will bring it back up. We will see. Good to have you with us. Thanks for having me. Up next, we will have a looked a whether teslas addition to the s p 500 is coming as mega cap dominance in the endiction diminishes as a reminder you can always watch or listen to us live on the go with the cnbc app well be right back. Adjust as your life changes,n with access to taxsmart investing strategies that help you keep more of what you earn. And with brokerage accounts, you see what youll pay before you trade. Personalized advice. Unmatched value. At fidelity, you can have both. More than this har betsy y, you can have both. Twelquarter mile of tinsel. Lights. harold and real snow all the way from switzerland. betsy hmmhm. Gonna be tough to top. betsy well played. vo add some thrill to your wish list. At the season of audi sales event. Get exceptional offers now. 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. Welcome back weve got a news alert on the nfl. Josh lipton has got the details for us. We have good news for nfl fans the pro bowl is happening this year, whistle. But there is a catch this year it is going to be virtual. So the nfl just now announcing a new format where the players chosen by their peers, fans, and coaches will instead compete in eas madden nfl 21 game heres how this is going to work imagine set programming where a super star where say Patrick Mahomes is going to be voted in as a poe bowler and then can play himself in the game now the event will be broadcast across all major social Media Channels we are told the nfl is still working out details with long Time Partners abc and espn no financial terms discussed right now as of yet. But certainly this is another potentially powerful way for ea to market one of its marquee franchises. Its wild i love it. Wonder whether there is any point in it. I guess they might be the best players on the turf during the season but are they as goods with, you know, a games console in their hand well, we are going to have to wait and see no hard date yet for this, wilf. But listen, the pro bowl typically attracts around 9 million viewers. You can imagine there are folks out there who want to watch Patrick Mahomes or aaron donald or any of the big names that get voted in face off. Obviously you dont get the ticket sales but you have sponsorships actively involved names like verizon. Kui dont know i feel like i would be better at the gaming football rather than actual football well see how it translates on the other side josh lipton. Lets go back to mike santoli, taking a closer look at indexing and how that tesla move into the s p 500 will influence it. Mike the impression that a lot of investors have is that to be one of the very biggest on the field here in the index is a real advantage, and it leads to outperformance by those stocks thats because thats the kind of market we have been in. Over the past five years the s p 500 has outperformed the equal weighted s p these are the act is same stocks except that one is weighted by market cap look at the same two measures in the last six mants a complete turnabout the equal weighted version pulled ahead back 15 years equal weight has been the outperformer. There is an Academic Research reason why equal weighted should be better. Maybe it is not the situation that the market cap weighted should be better s that passive equity note flows cumulatively for the last decade and actively managed equities. No doubt the public has voted. Just wondering if they are in the right place at the right time looking ahead at this point. Top leaders in the medical profession are urging President Trump to share critical coronavirus data with president elect bidens coronavirus Advisory Board up next one member of that task force discussing why receiving reta is so important and whether mo lockdowns could happen if cases continue to climb. Well be right back. Do you have a Life Insurance policy you no longer need . Now you can sell your policy, even a term policy, for an immediate cash payment. Call Coventry Direct to learn more. We thought we had planned carefully for our retirement. But we quickly realized that we needed a way to supplement our income. Our friends sold their policy to help pay for their medical bills and that got me thinking. Maybe selling our policy could help with our retirement. Im skeptical, so i did some research and called Coventry Direct. They explained Life Insurance is a valuable asset that can be sold. We learned that we can sell all of our policy or keep part of it with no future payments, who knew . We sold our policy. Now we can relax and enjoy our retirement as we had planned. If you have one hundred thousand dollars or more of Life Insurance you may qualify to sell your policy. Dont cancel or let your policy lapse without finding out what its worth. Visit conventrydirect. Com to find out if you policy qualifies. Or call the number on your screen. Coventry direct, redefining insurance. Welcome back u. S. Covid hospital ooigszizations hirting another record today more than 72,000 people in the hospital the most since the pandemic began. Seven day average is up 24 from the previous seven days. Today leaders of the American Hospital association, the American Medical Association and the American Nurses association all writing a letter to President Trump saying quote we urge your administration to work closely with the Biden Transition Team to share all critical information related to covid19 joining us now, dr. Eric goosby who was recently abuoyanted to president elect bidens Coronavirus Task force it is great to have you here, doctor what information do you need that you are not getting in order to smooth this transition and fight this virus pandemic . Thanks sara, it is a pleasure to be here i think that our focus is really to stop the spread of the virus. In order to do that, we need to understand in detail where the Trump Administration has engaged at state and local levels in defining the needs and in responding to each of the needs at the state and local level so we can pick that Technical Assistance support and buttressing up without hiatus. It is the transition we are trying to make smoothly so no lives are lost inappropriatebly. Obviously things will be different come january 20th as far as the covid numbers where we are right now is going in a pretty bad direction. What would you be advising the president , whoever he is, today, about how much of a lockdown or how much restrictions are actually needed to stop this storm surge and to give some hospitals relief. I think that we are keenly focused on trying to quantitate exactly where we are on a regional basis throughout the United States. We are here to stop the virus, not to stop the economy. We dont believe they are mutually exclusive but we do understand the sbint mat relationship that a medical response that is Strong Enough to allow people to return to work and return to levels of activity that dont Foster Community spread i think we will be able to rapidly look through that. And again understand where the Trump Administration has put their emphasis and their focus so we can pick it up i am confident that that dialogue will move rapidly once its niche nated dr. Goosby, if the inauguration was today, or the current circumstances were the same on inauguration day, is there anything you would advise the president to do immediately that President Trump the president elect to do that President Trump has not done, Something Like a National Mask mandate, for example i tell you, we couldnt be looking at those specifics more closely. I think that we are acutely aware of the deficit that we are in and now we are trying to quantify that and to regionally place it so we can be surgical, strategic, in where we put the emphasis on people moving back into shelter relationships if needed and that will only be achieved through a dialogue with local leadership as you know, the entire implementation occurs at the local level. We will begin a rigorous dialogue with governors and large municipalities in terms of their current responses to understand the synergy thats been developed with federal support so we, one, can continue it, augment it, change it, or put it where its needed i think that that dialogue now is critical. We are more and more concerned each day when we dont begin that dialogue. So thats not hugely different from the Trump Administration approach. Its still ultimately leaving local leaders to make the final decision; is that right . No. We believe that local leaders are the critical Decision Makers in this, but we also understand the importance of setting a federal standard so there are not 50 different versions operating in our country and the dialogue around procurement and distribution needs becomesmanageable. Secondly, understanding met and unmet needs across states and within states, across county lines become something that local county officials and local Health Directors have been orchestrating. So they are the correct people to talk to its not a continuation of a trump position its really in an attempt to talk to the people who are responsible for strengthening the response we see the role of federal oversight, federal suicitandards we believe this will make a big difference in how we are able to implement more efficiently but we also understand that this has to be a strengthening also, the relationship with local and state Decision Makers. Dr. Goosby, i wanted to ask you about thats rightics. O about therapeutics. I still havent figured out why we dont have enough of those monoclonal antibodies which are Game Changing and there is just not enough of them we are just waiting for a vaccine instead. You led the fight against aids in the obama administration. Obviously therapeutics were key there. Are we focusing as a country on getting the therapeutic out, as well as the vaccines we are focused on that. I think you are right to identify it as a critical contributor to containing the spread of the epidemic in that ineffectivity is affected by the amount of virus that an individual carries thats decreased with many of the therapeutic interventions and will affect spread so therapy is for those who are already infected but it also may play a role in decreasing the amount of spread in the community gonzalonce thoe people who are infected are initiated on treatment the remdesivir, the dexamethasone, the monoclonal antibodies have all had targets with specific populations, usually by age that we see a better, different effect in. And we have gotten much better at identifying those individuals who will benefit from these therapeutic interventions when they first introduce themselves to the Delivery System death rates have dropped in part because of that. But also the shift in who is becoming infected has gotten is in younger populations. And it has increased although we have difficulty quantifying it the number of asymptomatic carriers who are present in the population the asymptomatic carrier is the individual that really is moving the Community Spread threat. And our ability to get better at identifying those individuals who are infected with covid but having no symptoms will enhance our ability to control that conduit of infection. Dr. Goosby if the current spikes in cases continues, how does that alter the ideal rollout of vaccinations . As youve been speaking, in order for us to see a dim you anything in the number of new positive cases you have to approach you will start to see it in the 40 efficacy range for a vaccine or a heard immunity type number but it really doesnt come in in a Public Health sense until you are above 70 . That difference will be aided by a vaccination that allows us to move large numbers of people in the population into a protective state after they are vaccinated and developed an immune response we also will be able to segregate out those at higher risk, including Health Care Workers and First Responders also, individuals who are in publicfacing jobs where they have to and cant control spacing, et cetera all of those individuals need to be reprioritized in both protective equipment as well as in how rerowe roll out the vaccination priorities i am confident we can think through this and rapidly move through what needs to be done. But i would say that the availability of vaccines both with the pfizer as well as the moderna it gives us confidence that the number of doses that will be needed will be available and that we have different strategies and demands on supply lines between the two vaccines that opens up an easier ability to distribute a vaccine that doesnt require severe refrigeration. I think i am optimistic. But we have got a lot of work ahead. All right lets hope so. Dr. Goosby, thank you for joining us keep us posted on your efforts on that transition team. Still ahead, jack dorsey and Mark Zuckerberg getting drilled today on capitol hill and a hearing focused on csohienrsp on social media and the 2020 election will anything change we will discuss when closing bell comes back im searching for info on options trading, and look, it feels like im just wasting time. Thats why Td Ameritrade designed a firstofitskind, personalized education center. Oh. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now youre binge learning. See how you can become a smarter investor with a personalized education from Td Ameritrade. Visit tdameritrade. Com learn welcome back time for a cnbc news update with sue herera hello, everybody. Heres whats happening at this hour ohios Governor Mike Dewine ordering a 10 00 p. M. Curfew to quite Coronavirus Infections and a significant increase in the number of covid19 patients. The curfew goes into effect on thursday and will last for three weeks. In Central America officials are having trouble assessing the damage from hurricane iota the storm has caused sweeping power outages. In knick wag re alone 40,000 people have been evacuated to shelters. And Arlington National cemetery will hold its annual wreath laying ceremony yesterday that event was canceled due to Health Concerns for the hundreds of volunteers who take part. But this afternoon, the secretary of the army directed the cemetery to hold the tribute in a safe manner. And conan obrien is leaving tbs. Warner media allowancing the conan late night show will end next june. Conan will be doing a weekly variety show for hbo max you are up to kate. Up next, facebooks Mark Zuckerberg and twitters jack dorsey clashing with senators today during testimony over cutis h biased content. We will have all the highlights when closing bell returns. Hi, my name is sam davis and im going to tell you about exciting plans available to anyone with medicare. Many plans provide broad coverage and still may save you money on monthly premiums and Prescription Drugs. 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The focus at the hearing was really on how the companies handled information surrounding the election facebook and twitter tried to tout their work to engage Civic Engagement take down false posts as well as combat misinformation but democratic senator cory booker said it wasnt enough. Donald trump is waging an all out war on the truth and our democratic systems and one of his weapons of choice in this disinformation war is social media and specifically the two gentlemen here, their platforms, twitter and facebook tough tools to prevent him from weaponizing these platforms. The republicans have argued the platforms have gone too far, and thats where the Tech Companies are caught in the middle. You are censoring right and left, trying to make both sides happy. And you are making neither side happy. No. Thats not the intention the intention is to. I know it is not the intention. The intention, but it is the result one emerging area of agreement is for the need to update section 230 which provides the industry with its Liability Protections and the law makers and the companies agreed that the should be part of setting those new standards back over to you. Ylan, last time you know, the previous times they faced hearings, the takeaway from wall street and from the analysts was thattet wasnt always key harnt enough to see what the path or the regulation or upshot could be from lawmakers they didnt seems to have a firm grasp on fixing the issues they are raising but rather just raising their grievances are the lawmakers or the ceos themselves Getting Better at it . Nothing is going to happen in the shortterm, sara, but i think it was notable that you heard from both companies saying hey we agree there could be common sense changes made to section 230 that we heard from republican senators like Lindsey Graham saying that the industry should be involved in the decisionmaking process it shouldnt be just the government deciding what the people do or dont get to say on line so at least there is some Movement Toward the need for change, exactly how that what that change looks like still is to be determined but previously what we heard was just the companies warning against the perils of changing section 230. Now you are seeing the companies coming on board, some of the republicans toning down rhetoric against they companies that could create more Fertile Ground for more bipartisan legislation. Not tomorrow or the weeks ahead but perhaps in the weeks to come ylan, thank so much for that. Up next, the bad blood between taylor swift and swooter brawn is getting worse after he just sold her master recordingso ive equity group next 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. But we are hoping things will pick up by q3. Yeah. Uh. Boss doug . Sorry about that. Umm. What. Its. Um. Boss you alright . [sigh] [ding] never settle with power e trade. It has powerful, easytouse tools to help you find opportunities, 24 7 support when you need answers plus some of the lowest options and futures Contract Prices around. Dont get mad. Get e trade and start trading today. Dont get mad. Its time you make the rules. 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If she rerecords the songs as she has indicated to her fans, how much did he buy . We dont know if people will stream the new versions or not, but the reported sale value was roughly when Scooter Braun paid for this portfolio of rights a few years back so it didnt appreciate even though her popularity didnt go down the fact she had the wherewithal to buy it back and there is personal animosity here makes it that much more of a layered story. As with the beatles catalog 300 million is what Scooter Brauns Company Bought it for and sold it for. But with that being similar prices, it seems like this transfer to shamrock was an intent to smooth over the differences without eitherone having to lose face or money, but that hasnt worked i have been trying to work out what the different sets are. Rerecording them will hurt the value but wont destroy it i just love how deep we are all going into this because we are all three taylor swift fans and not just to focus on the assets, but it is an interesting story and she is shaking up the Business Model and drawing attention to whether artists should own their own rights to these songs in an era when they are streaming and get paid for streaming. Streaming rights and spotify. Clearly she has more leverage than the typical artist who signs as a teenager to whatever label would have her a deal is a deal, a contract is a contract. Scooter braun is the vehicle that did own the catalog and sold it. Lots more to discuss but we are out of time. We ulcod go on all day. We could. We will have your look when we come back. D advisor, youll make a plan that can adjust as your life changes, with access to taxsmart investing strategies that help you keep more of what you earn. And with brokerage accounts, you see what youll pay before you trade. Personalized advice. Unmatched value. At fidelity, you can have both. More than this at fidelity, you can have both. Theyre first first to respond. First to put others lives before their own. And in an emergency, they need a network that puts them first. That connects them to technology, to each other, and to other agencies. Thats why firstnet was built by at t for First Responders and why were dedicated to keeping their lines of communication open. Firstnet. Because putting them first is our job. Than Rheumatoid Arthritis. When considering another treatment, ask about xeljanz. A pill for adults with moderate to severe Rheumatoid Arthritis when methotrexate has not helped enough. Xeljanz can help relieve joint pain and swelling, stiffness, and helps stop further joint damage, even without methotrexate. Xeljanz can lower your ability to fight infections. Before and during treatment, your doctor should check for infections, like tb and do blood tests. 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And color on how november has been cvs operates Stores Within stories with the amazon deal well off the session lows. Dow was off half a having been down double that we are out of time that does it for closing bell. Fast money starts now. I am in for melissa lee and this is the big show tonight on the show a tuesday timeout stocks pulling back from their alltime high and one Market Professional is sounding alarm on recent flyers plus, break out the candles, it has been a decade to the day since General Motors ipo what i