Transcripts For CNBC Worldwide Exchange 20240711

And the big week around retail rolls on, but are there any stocks out there still worth opening in the reopening trade we have some names for you on this wednesday, november 18, and this is Worldwide Exchange right here on cnbc the band subject of a little online debate that i was posting last night to my instagram good morning, good afternoon or good evening and welcome from wherever in the world that you may be watching. Im Brian Sullivan and good wednesday morning hopefully you wont need a remedy today here is how your money and the Global Markets are setting up their wednesday. Stock futures are now higher across the board small gains, yeah, but they are gains none the less. Dow futures up 64 right now. It was a mostly lower session yesterday, all the major indexes breaking two session win streaks. Hey, you cant blame the market maybe for pausing in what has been a huge surge in one of the best starts to a month in decades. In a note out on the market technicals from the spoke, they note that things are gotten pretty red hot and at the percentage of s p 500 stocks that have closed above their 200 Day Moving Average on monday was the highest level in more than six years. And even with yesterdays pullback, that trend is still in place. And in the 90th percentile of all readings since back in 1990. In other words, if we get a pullback, dont be surprised in fact we have a guest who says one may be coming. He is on a bit later in the show a few areas of the market however continue to outperform do we have to say it again small caps the russell 2000 coming off an alltime intra day high and yet another record close so too the dow transport, up now three days in a row and trading at their own record high and then, there is the hottest of the hot and that is bitcoin. One of the if not the best performing Asset Classes of the year surging before the 18,000 level, its highest level since all the way back in the heavy days of december of 2017 and not too far off its all time high and that number is 19,640. Will it get there . Mark yusco thinks that it will and he will be coming up meantime a check on trading around the world asia was mixed, most of china up, japan down, toek i donkyo wa surprising number of new covid cases there and european markets are opening up mostly lower to mixed. Germany and france up, uk lower. But again, not big moves either way. With all the focus on covid cases, Global Investors have also focused on health care. Not only for right now, but also in the coming postpandemic world. And the first guest this morning loves health care, but with what he calls a technology twist. Gerald lofton is joining us now to kick it off good to see you again. Listen, obviously health care around covid is in focus, but there will be i promise a postcovid world and your playoff and part of your investing strategy, unfortunately, well still have a great need for health care for other things in the years and decades to come and that is how you are investing around it. Thats correct, brian good morning thanks for having me once again. Im a big i would say advocate of the health care sector. I love health care i specifically love health care when there is the integration of technology in that particular sector when i look at i would say the integration, four sectors that im big on, particularly to health care, nanotechnology, biotech robotics and vels Information Technology i think that it is a great sector certainly the future is bright when we look at i would say global population, the demand for health care continues to expand beyond i would say what we can imagine at this particular time. Yeah, and maybe the biggest and certainly one of the most globally expansive problems that we had with personal health care precovid and one that unfortunately is in some ways related to covid is the global fight and really the u. S. Fight against obesity, diabetes is a terrib terrible crisis. Millions who suffer through obesity, diabetes and related disorders. You note the average Health Care Spending per capita is 316,000 now per american it is a tough battle how do we sort of invest around making sure that we can get a handle on and treat this diabetes and obesity epidemic . We open pandoras box and talk about it, and i would say treating it. I truly feel that there needs to be some legislation. Again, we live in america. And it is likely that legislation probably will not come at least in my generation whereby were able to curb i would say these lifestyle related i would say illnesses. That being said, we understand that some of thieves iof these e hereditary, yet a vast portion of it tends to actually i would say trigger because of lifestyle choices that individuals tend to make yeah, it is a tough conversation to have but when we look to invest around it, the companies that maybe helping to treat it, like a Thermo Fisher scientific or intuitive. Why . I like Thermo Fisher scientific because they are in the nanotechnology space again, were talking about i would say the use of matter for i would say Health Care Related i would say purposes and in solving i would say Major Health Care problems. I also like intuitive because they are in the robotics space, again integration of technology and health care, whereby they are actually moving forward i would say with trying to i would say treat these various illnesses that we speak of today. Yeah, other names you like include invidia which i would not think of invidia as a health care play, but i imagine all this technology you speak of will need certain semi conduct tors that will power that. How is invidia kind of a sideways health care play . Condu tors that will power that. How is invidia kind of a sideways health care play . Invidia has done extremely well this year wa based 00 on i would say their Stock Movement not necessarily i would Say Something that i would anticipate i would say year after year, but it is definitely i would say one of those thoughts that fall within i would say the robotics space so when we think about i would say a semi conduct tore and its integration in the health care i would say community, invidia is certainly one of those plays that i like to hold the portfolios gerald, liking health care with a technology twist, laying out some names we always appreciate it. Thanks for joining us nice and early on a wednesday have a great day have a great day. Let us step outside of stocks for now, but stay focused on what we were just talking about. And that is health specifically the health of senator chuck glassily wrassley tested positive for coronavirus. All as the Coronavirus Task force lays out a tough assess mt of the trajectory in the United States tracie potts is joining us now with more. Reporter good morning. So the biden team still having trouble connecting with the Trump Administration on coronavirus and there is a new dire warning from the White House Task force on that but we begin this morning with a move by President Trump on twitter that surprised a number of people but perhaps not the person central to it the top u. S. Election security official has been fired. The Trump Administration official who called this the most secure election in American History found out on twitter that he has been fired top u. S. Election security official chris krebs started the rumor control blog debunking President Trumps baseless claims of fraud. I do have confidence that the count is secure and the results will be secure reporter the president called him highly inaccurate krebs tweeted honored to serve, we did it right. The biden team says he should be commended for his service in protecting our elections, not fired for telling the truth. Krebs firing comes as the Trump Administration continues to deny president elect joe biden classified briefings there is no reason not to be giving former Vice President biden and senator harris the Intelligence Briefings im unable to get the briefings that ordinarily would have come by now reporter the president s chief ally on chill reapitol hi reassuring the public. Well have an orderly transfer from this traiks to the next one what we all say about it is frankly irrelevant reporter biden also shut out of coronavirus planning. The latest report in the White House Task force warns of aggressive unrelenting expanding Broad Community spread noting holiday gatherings could make things worse. Tracie potts, nbc news now, president elect biden is meeting with Frontline Health care workers while were leaving from leaders of top medical groups urging the Trump Administration to share the covid data with the biden team but it is knot happnot happenin. And talk to us about the situation in michigan, late last night one county refusing to certify Election Results giving praise for the president , but then backtracked and certified the results. What exactly happened . Reporter yeah, it was a long night for the commissioners in wayne county, the biggest county in michigan. The county where detroit is located. Initially the two democrats and two republicans who were in charge of certifying these Election Results deadlocked. So they were 22 and could not get the Election Results certified. It was a long night, they heard from a lot of members of the pufb they eventually agreed to certify and move the results on to the state to review today as long as the secretary of state agreed to review some of the areas where they believe the count was off. And so now the secretary of state will review that, that allowed the two republicans to go ahead and certify those results. Philadelphia going through the same thing they have now finalized their total and they are waiting to get that final certified president elect biden winning over 80 of the vote there tracie potts will d. C. , good to see you have a great day than thank you sgla and wh. And when we come back, as governors impose new lockdown, life in china pretty much completely back to normal. Well show you sthoking n inshog new data and plus as new york readies itself to likely close back up for the winter, thousands of restaurants wonder what happens to them. Well speak with one owner about just that next and then mark yusko lays out what he calls the perfect storm for bitcoin, but the storm of the best kind. A very busy hour dow futures up 86. 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. I feel like were forglet me check. Ing. Xfinity home gives you peace of mind from anywhere with professionally monitored Home Security built around you. No, i think were good. Good. So when youre away, you dont have to worry. The tent. We forgot. The tent. Except about that. Xfinity home. Simple. Easy. Awesome. Hey look, i found the tent get xfinity home with no Term Contract required. Click or call today. Welcome back as caseloads, hospitalizations and new lockdown measures continue to grow here in the United States, in china, once the global epicenter of the virus, life has seemingly returned to prepandemic levels. Check out this data on traffic levels in beijing from tom tom it shows that this weeks traffic patterns and congestion are pretty much exactly the same as they were a year ago. In some cases, maybe even higher in other words, traffic is 100 back to precovid levels hat it was a the year ago for some on the ground insight, we send to eunice yoon in beijing which provides us amazing reporting and just a window into life, literally a window behind you, we can see traffic. Mine, i mean i remember nobody on the road, now we see over your shoulder it is full. When you live your life every day, does it feel like with, you know, certain things, masks or whatever it might be, that life is sort of back to normal . Yeah, definitely it is back to normal in terms of the level of activity. Traffic jams are back, today we went out and shot the traffic just so that you get a sense of what it looked like today. Even though it is raining, there are a lot of cars. And then also the restaurants, if you go into the restaurant, a lot of people are more relarela. People still wear mask, they are social distancing, but the restaurants are packed we have to wait for tables here once again so you get a sense of a level of activity, people are shopping, still mainly shopping online or at least there is a lot of online shopping, but there are definitely a lot more people in the shops. And so travel also recovering, were looking at some of the numbers for air china and china eastern, those are recovering. But the authorities here are very quick to jump on any cases. They will shut a whole bunch of flights down if they think that there is an outbreak and that is really where the cost has come in there has been a lot of personal sacrifices that people have made, you know, and the authorities come in with greater surveillance, even for, you know, in a chinese context where there already is a lot of surveillance all of us have personal health codes which you have to consistently register so that you know that you are constantly being tracked here, which is something that im not sure an American Public would really want to accept and there are other costs as well, which is mask covid testing for example which is sometimes under duress so there is a lot of cost to being able to walk around. It is not the velvet glove, it is the iron fist in some respects and of course times square, plea pandemic, it is pretty hopping at 5 15. And there is still very little traffic around here. For you it sounds like life has gotten largely back to normal. But go more into the contact tracing. Jane wells put out a tweet that she has been on like 20 flights in the last few months and never once contact traced. And ive flown five or sick times, driven around the country, have also the not been called about anythinstrictabout. How strict is the tracking and tracing where you are . It is really, really strict for example, when there was a cluster outbreak in beijing around one of the markets, there have been several reports of people saying that they just got a call, even if they were even close to the market, because everything is being tracked on your phone, so people were getting calls in the middle of the night saying that you have to make sure that you go to this covid center tomorrow. And, you know, here, you mentioned the iron fist, people are nervous if they dont actually Pay Attention to what the authorities say. And so that is how you get this mass forced covid testing going on can i ask, no doubt this will be the dumbest question that youve ever gotten, but ill ask it anyway. Why not. Can you exist without a phone in china . Like if you just want the to have a flip phone that was different, maybe less traceable or trackable given some of the tactics you are talking about, is that even possible . You can, but then there are a lot of things that you cant do. So for example, even for me, im constantly glued to my phone, not there have been a couple times when ive forgotten it and wanted to go to the park, you cant get in so you can exist, but it is just that your life is much, much more difficult certain things that you have to now do with the phone, it activates everything but enables you to be traced and tracked we love these on the ground reports. Keep them coming have a great night, well see you tomorrow all right. Still on deck, beyond meat goes beyond the beef in one key global market, full details when Worldwide Exchange comes back. Dow futures up 90. Up at 2 00am again . Tonight, try pure zzzs all night. Unlike other sleep aids, our extended release melatonin helps you sleep longer. And longer. Zzzquil pure zzzs all night. Fall asleep. Stay asleep. Dow futures up 93 points will today be the day we hit 30,000 is this stay tuned to find out but right now, lets get our focus back to main street. Because tens of thousands of restaurants and their workers all across america are at risk Colder Weather sets in, Outdoor Dining has been keeping many afloat, but just barely. Certainly a very scary time for Important Industries amanda cohen is joining us, chef and owner of dirt candy in manhattan and leader of the Restaurant Coalition a wish i had you on in better times, but we appreciate you joining us who doubt congressional leaders who watch from washington, d. C. And they watch cnbc all day long if you have to send a message to them as they negotiate a potential stimulus package and relief, what would be your message to them right now . It is getting really dire winter is coming and we need to get the strauchbt act passed we have a lot of support for it in the house and senate, it is a grant that will help keep restaurants afloat and we need it desperately as time is running out. I dont think a lot of restaurants can hold on for much longer yeah, the weather is getting colder, the prospect of freezing rain and snow makes Outdoor Dining if not impossible certainly darn difficult how are you and your team and the restaurants that you lead and the Restaurant Coalition, what are they saying about what they are going to do the next couple months . Well, you know, everybody is trying to pivot as much as possible most restaurants are still trying to Outdoor Dining, but getting customers to eat outside when it is freezing cold is a tough one no matter how nice you make your patio. It is just an impossible task. And you know, weve all tried to store as much money as we could and save up, but our savings are dwindling and the mental toll, the financial toll, it is just getting overwhelming and at this point, you know, if we start to close, it is not just one restaurant or two restaurants closing, were talking about thousands and thousand of restaurants closing which means that well end up putting so many people back on unemployment and the Ripple Effect i think is a disaster for this country and when things get back to normal, your place is fantastic and were rooting for everybody to come out. But what people dont realize, you have people that come out on the internet, they are like just change your model to takeout it doesnt work that way your landlord probably doesnt care how you pay the rent, that you pay the rent con ed, they dont bear whcare o are burning, and with all the heaters, your bill is probably soaring. Your fixed costs are so high, for most restaurant, they cant just become takeout shops, can they no. I mean, it brings in a little bit, but it doesnt bring in the same amount. I went from making 12,000 a night to 3,000 a night. And youre right, my rent hasnt changed at all con edison, my bill is skyrocketing my insurance is still the same i have so many bills that havent changed at all and we havent gotten you know, we got some relief at the beginning of this, but we havent gotten any since and, you know, i think that were all basically throwing upper or arms in the air and saying what can we do, how much hormone mor more homoney do we have no thro at this. And is it best to shut down and come back in april or may . If i could, i would my bills dont disappear whether or not im open or closed. And my landlords have mortgages to pay and i owe them money so closing up isnt necessarily the best option either hopefully we got some attention to this much needed issue. Amanda cohen, you have dirt candy on the lower east side, and we look forward to seeing you during better times. Hopefully congress will help folks like you that are the job creators in america. Best to you and your team. On deck, the bitcoin boom. Mark yusko is here why all the crypto haters have got it all wrong and why were likely to hit a new record high. Bitcoin up 440 todays ways of working may work differently tomorrow. But you can work out anything with comcast business. Get fast, reliable, and secure internet on the nations largest gig speed network. Flexible tools like wifi you control. Voice solutions that connect you from anywhere. And expert advice here, here, or even here. Be fast. Be flexible. Bounce forward with comcast business. Get started with a powerful internet and voice solution for just 64. 90 a month. Plus, for a limited time, ask how to get a 500 prepaid card when you upgrade. Switch today. Is it time to get bearish on stocks eric johnson says you may want to take profits as we head into the new year the bitcoin brooom, crypto craze, call it what you want, but yusko on why it is here to stay and yes, there still will be a christmas, so what retailers may be the big winners well name some names on this wednesday, november 18 and this is Worldwide Exchange right here on cnbc. Good wednesday morning or good evening depending on where you might be thanks for joining us. Could today be the day the dow hits 30 k . It might futures, they are higher right now, by about 100 points after the market paused in this huge rally pattern in november. So many stocks hitting new highs. But one big stock that we like to highlight is our Parent Company comcast. Were not playing the homer here, there is a reason were showing to you comcast stock surging lately, now back to its all time highs all the way back to our ipo in 1972 you go, comcast, we like to see that all right. Speaking of record highs, it is not just stocks, bitcoin, it has been on fire the highest level in three years. And within striking distance of its alltime high of 19,640. 51. If you are being specific. Joining us now for a look more at the rise and where it may go, is mark yusko from Morgan Creek Capital Management ill say good morning, i know it is dark outside, it could be good evening, who knows what time it is you know what, the market doesnt care bitcoin has been rallying day and night. Why do you think there has been such this i dont want to say resurgence, but surge in interest this year, is it just money printing and deflation and global currencies . Yeah, bitcoin never stlooele. That is the easy sound bite. It is a global phenomenon. We have the perfect storm for why bitcoin is doing so women and why it will continue to do so well. We have aging demographics in the western world, we have massive debt, mass 1ive personal debt, government debt, and getting worse with all the impact of covid and some of the things that you were talking about before and then the response from Central Banks is to print money. And when you print more of something, what happens to its value . It goes down so bitcoin is one of the only sound monies on the planet you have silver and now you have digital gold, bitcoin. And so when a scarce asset is compared to a not scarce asset, we have what we call the fee at f fiat fiasco. It has been going on since the 70s and if you look at the value of money, it has continued to be destroyed by the creation of it. And bitcoin does the opposite, right . We know how much bitcoin will be created every day for the next 140 years. And it is controlled by math, not by individuals. Ill push back a bit because and i have not you know, my colleagues with all due respect to them, they call it a cryptocurrency i dont like that term maybe it is a commodity. Is it money . Because you can knock the dollar or euro or yuan, is it a currency or an asset class that is a fantastic point and think about what it is it is programmable money and when money is young, money is very volatile think about when the dollar was first used it had wild swings because really people didnt know what it was the has only been around since the 1700s. It is really a very young currency and currencies over time have been spectacularly followed as you said, be think about things like zimbabwe or venezuela just the last two years so what happens with money, it becomes accepted based on custom, but you are absolutely right, where we started with bitcoin is as a commodity. Just like gold, gold has commodity characteristics, but it has monetary characteristics. Peel think of people think of it as the commodity that comes out of the ground, but one ounce has bought a fine mans suit like the one you are wearing today for 5,000 years. So bitcoin is just the digital form of that and so in these early day, when people think of it as a commodity, and people think of it as a scarce asset, it will have more volatility but over time, well see that it becomes digital money. And part of bitcoin is that and listen, a lot of people know it, a lot of people dont, so i will speak level, that there is about 21 million that will ultimately exist i think about 18. 5 or just under 19 million currently mined or found, whatever parlance you want to use. What happens when all 21 million are mined . Does it become like the art market in a way in some respects if there is no more that you can do and mine, does it then become like a porsche or bordeaux you see where im going . Yeah. You bring up a really important point. The best performing as set over the last decade is not stock, not even bitcoin, it is actually collectsable porsches. Because only three guys in the world that buy them. Jerry seinfeld, jay leno and john sherno. And so when there is limited supply, you cant make more, and rising demand, prices rise and so the price will continue to rise for bitcoin forever. Now, what will happen over time is well split into units of measure, eight decembimal place. And so if you think about any scarce asset, it has to do with what is called the stock to flow ratio, the new flow of an asset relative to its stock, look at the u. S. Dollar, we have massive new flow compared to the stock, so it is depreciating, devaluing. And it will only get worse if you look at gold or silver, not a lot of new flow to stock bitcoin actually is the scarcest asset in the world based on the stock to flow measure. Well, certainly acted like it and big time Traditional Fund managers have come out and said maybe they missed it it has been a heck of a run. Mark yusko, ill let you watch the sunrise down there i think in north carolina. Appreciate you coming on and important topic, well see you again soon thank, buy. Mad respect for what you do every morning. Appreciate that and i wont show you the lower half of the suit now to the latest on the on going covid outbreak senator Chuck Grassley revealing that he has tested positive for the coronavirus. The 87yearold announcing the diagnosis yesterday saying that he feels fine and will be working from home. In the meantime, the White House Task force on the virus painting a rather bleak picture on the outbreaks near term outlook. The most recent report warns that there is, quote, aggressive and unrelenting spread across the country without evidence of improvement. And on the vaccine front, new data from sinovac shows that the drug triggered a quick immune response but the level of antibodies was lower than those who have already recovered and the fda has granted emergency approval to a self testing virus kit for the first time it does not require a prescription and will run about 50 and can offer results to users in 3 minu0 minutes or les. Quick cheap testing the key to getting back for a semblance of normal coming up, all the mornings stocks to watch including one of the most important stocks in america. That is boeing new news on the 737 max has that stock on the move this morning well show you boeings big move, dow futures up 88. For skin that never holds you back dont settle for silver 1 for diabetic dry skin 1 for psoriasis symptom relief and 1 for eczema symptom relief gold bond champion your skin the trends in your stocks to watch. First up is boeing, the faa expected to approve the return of the 737 max as soon as today. That is a big story and big move and that stock up 4 the max of course xwrougroundedr fatal crashes. And boeing though still faces challenges, including a big backlog planes built but not delivered. But still the stock up 4 right now. And shares of polaris are down sharply new that the ceo is leaving the company at the end of the year he left the company for 12 years but leaving to become the ceo of cnh industrial and i spoke with scott on the phone after the announcement, and he said it was simply a bigger challenge, loves polaris, cnh four times bigger in revenue and he wants to see what he can do with e Chinese Market fake pork. Well have to check it out now to the earnings story and a busy week for retail continuing with names like target, tjx and more on deck today, target is higher coming off a record breaking quarter topping every analyst estimates for the fiscal second quarter. Record same store sale, year over year Profit Growth of 80 , online sales growth also surging to record levels when you are one of the few stores allowed to be open in america, you height get a big share of that spend. But as we saw with home depot and walmart yesterday, according to jim cramer, the party for certain retailers may not last much longer. Listen these were some of the best numbers that i have ever seen. Home depot put up a 24 same store sales growth numb. Ive never seen anything like that that is incredible meanwhile walmarts u. S. Ecommerce business shot up 79 and bostocks got annihilated because the crack seen vaccine wind for them. Only way that they can keep putting up Great Results is if were still stuck inside next year but thanks to pfizer and moderna, that is not where were headed you take away the stayathome economy and these two stories become a lot lesr allowed to be open while everybody was locked in. Do you agree with this call it a vaccine top like thesis on some of the big names yeah, good morning, brian i absolutely understand and to a certain extent agree with jims point. Were seeing very strong numbers from essential retailer, but undoubtedly they are losing steam within the market as the recovery trade is full blown and under way as invevestors really focus on the names that can bounce back over the next few months, particularly with a vaccine in sight we have seen a number of essential retailers really hit a pause, if you will, in terms of their stock momentum where we do maybe have a little bit of a different opinion however is that we do think that there are certain names within the essential retail group that can sustain momentum target is reporting today and that is a name in which they do have consumables, but obviously they areal taking market share Great Holiday with toys. They Just Announced a Beauty Partnership with ulta. So that is a retailer that we continue to recommend going forward. I got to say, i think the ceo of target is on with the squawk gang after the results come out, and i was talking to my wife with should we bag on amazon and try the new 99 ship thing from target next to me though, where i live in new jersey, t. J. Maxx just opened up a giant new store. I mean, literally i think it was an old walmart that went empty ivenever seen a bigger tjx. That is one of your favorite stocks howe will they benefit in the post pandemic world . Absolutely. As you can manage for an off priced retailer with basically little to know ecommerce, trends have been weak they have certainly been quite negative, negative double digits over the past few months but ultimately what we have seen is as these off priced retata rs get their inventory back in stock, consumers come. And while the trips are less frequent, the basket is much higher and weve seen that within tjs banners already with home good s. They have put up Great Results and this is a name again as we get in to 2021, well be black to positive comps and this will be very much a winner along with raw stores in burlington as well yeah, and paul, well let you get on with your day, but yeah, kind of the Treasure Hunt mentality, shopping should be fun. And it will be fun again great to have you on, have a good day on deck, your morning rbi. And how cheap gas might be fueling some of your desires to hit the road this holiday even as many others look to stay home todays rbi has to do with travel over thanks giving or maybe no travel. Gas buddy releasing their expectations and i guess the good new, the roads will be empty and gas will be cheap only 35 of those surveyed said they plan to travel this thanks giving, that is down almost half from last year and gas prices nationally averaging just 2. 17 a gallon, the lowest in years. About three out of every four families surveyed said that they would just stay home of course mostly out of concern for safety and quarantine rules by the way for out of state travel dont make it easy anyway. But dont ever count out the desire of americans to safe money. Here is what a random but interesting. Of those who said that they will travel on thamnksgiving, 15 sai that they will pretty much only do it because gas is cheap but dont fred frt, nearly evere going anywhere is only driving about an hour away because who wants to quarantine in their became for a week after gobbling up the gobbler next year we promise will be better and call that random but hopeful. The next guest says there is still up side in the coming months, but that is not stopping him from highlighting a number of red flags in the eric, i got your report and saw bearish in the headline and i thought no way, who can be bearish right now . Take us through. Yeah, weve been bearish sorry, bullish for about the last 6 to 8 months, but we think that there is a tactical opportunity where we think that we will move lower in the market so everyone is aware that covid cases and hospitalizations are rising sharply right now where were differentiating, we think that it will be more difficult to bend the curve this time and that the economic implications over the next three to four months could be challenging. And this is in combination with the other factors that were seeing which is very important, which is number one, that sentiment and bullishness right now in the market is at extreme levels if you look at Hedge Fund Net exposure, 100th percentile if you look at short interests in the market, it is as a six month low. And if you look at the bull bear entex, it is at a three year high so those are all lining up and give of us significant concern and then when you add on top of that technical factors and also the fact that the vaccine data has been on the radar scene of this market for month, weve been talking about it, the market talking about it, looking forward, that catalyst is now behind us now that we have the very good data out so we think that it will be a pause and we think that it will be a small selloff here over the course of the next few weeks how long might it last, eric . Were thinking that in the next four weeks, were really going to see the outcome because were really going to see things, you know, really explode to the up side in terms of the cases and hospitalizations and well see the High Frequency Economic Data continue to come out that will be i think quite negative and well see how does the market reacts and i think based on those sentiment and thinpositioning indicators, i think that will cause a selloff. And around the holiday, volume tends to be lighter and you have more of an abilities for ty for market to get one of the sharp quick selloffs based on how people are positioned. So we always try to be actionable here on Worldwide Exchange. So the action able idea on thesis, if you are thinking into the macro market, maybe hold off a bit, we could get the short term pullback for all the reasons you laid out, but toward the end of the year, early next year, there might be a very Good Opportunity to step back in, make yourself some money because you are buying cheaper thats right. Were extremely bullish on 2021. We think the backdrop is still there, but we think that you will be able to buy stocks cheaper. And we think that it will happen in pretty short order. So i think that we look from here until sort of early to middecember is where well see it and if we gnts sif dont see it time, then i think the market has absorbed the information but we do think that it will happen. Eric johnston, a bit of a different call and you have been bullish and right for a long time we appreciate you coming on, thanks very much i know a lot of people like to save money and buy cheaper have a great day thanks very much. And breaking news on tesla, all you tesla bulls will love this, moments ago Morgan Stanleys adam jonas, upgrading tesla to an overweight with a price target of 540, about 20 up side to teslas current price. The idea, and im reading the note, he says tesla is on the verge of a profound model shift from selling cars to generating high margin recurring software and Services Revenue he thinks that will be the primary driver of the bull case. Morgan stanley upgrading tesla moments ago. Youre welcome thanks for watching us seyoe u tomorrow squawk box is next i feel like were forgetting something. Let me check. Xfinity home gives you peace of mind from anywhere with professionally monitored Home Security built around you. No, i think were good. Good. So when youre away, you dont have to worry. The tent. We forgot. The tent. Except about that. Xfinity home. Simple. Easy. Awesome. Hey look, i found the tent get xfinity home with no Term Contract required. Click or call today. Morning. Futures up again this morning, the dow now past 30,000 in striking distance. Well show you what is moving straight ahead in the backdrop again, dire assessment from the Covid Task Force as individual states are issuing washings will b. Thanksgiving travel. And target will report, well bring you an interview with the ceo brian cornell, it is wednesday, november 18, and squawk box begins right now. Good morning, everybody. Welcome to squawk box here on cnbc im becky quick along with joe kernen and mike santoli. Andrew is off today. Been watch offing the u. S. Equity futures and after a down day yesterday, where both the dow and s p were down by about half a percent and the nasdaq down by about 0. 2 , you will see green arrows this morning. Dow indicated up by about