Transcripts For CNBC Closing Bell 20240711

To president elect biden Energy Continues a monster move higher the oil and gas etf up 13 in the last two days. Despite the steady increase in covid cases vaccine developments are continuing to help the likes of the airlines, cruise stocks, retail all surging higher today as we cross that 30,000 level once again, to check it we are still above it will we say that 59 minutes left to trade. 29 points above it. On todays show, two voices to help explain the dows record rise in just a few minutes Jeremy Siegel will join us and later Liz Ann Saunders plus former testry secretary jack lew will discuss president elect biden pick of janet yellen to lead his treasury administration. Lets get the latest from wall street mike santoli is tracking the action to led us to dow 30k. Certainly the story today because of that big round number i am going to keep it consistent, though, and take a fwlims at the s p 500. Similar look in every respect in terms of getting back up pretty much to an alltime high here after some sideways action you have us here at 3632 it would be a closing high if we stayed here. We touched on that a couple of weeks ago on november 9th. It is difficult to fault this pattern that you see here, this two or three month sideways consolidation. If you brk out above that usually it is somewhat meaningful the issue i think i have is it is not exactly been resting in here because so much of the market has been using up energy in the rotational move the violent move from the large caps to the equal stocks. You see the violent vertical spike. Basically the average stock has made a rouge hundred relative to the mega caps. This also happened in june this is about a twoyear champlt it shows you it has been a slow trend in favor of mega caps. Then you have this burst higher. What is building is, over the course of the day the nasdaq was doing nothing in the morning it got dragged up with everything els as people had this get me in moment and there was a chase in there and a mad grab for equity exposure, some cases burning he out this is month to day alternative energy, all the electric vehicle stocks were going crazy. This is the bitcoin trust, up 50 month to date. Psce is small cap energy, traditional energy, oil and gas, all of this up 40 relative to the nasdaq 100 the best companies in the world, the most profitable it shows you a lung for risk this monday. I think it shows you the position for the days and weeks to come have we gotten overheated in terms of sentiment, positioning and speculation in the market. Mike thanks lets continue the discussion on todays record market levels lets bring in Jeremy Siegel Wharton School of finance. Great to see you professor segal, as always my first question, i mean this sort of mixture of a transition to the president elect biden, the likely appointment of a marketfriendly treasury secretary in janet yellen, the possibility of stimulus and recent ongoing positive vaccine news does that justify this march higher how much further can it go in the shortterm absolutely. I was on the day the morning right after the election, and i said christmas is coming early for investors. And i think that the developments since then we are going get a transition i mean, i know janet yellen. And shes an excellent choice. Biden is a moderate with the senate likely to stay republican, with a tax cut in. These are the best things investors can hope for most important, that stimulus that was put in, and maybe another stimulus, has provided liquidity in the market that we have not seen for 75 years the burst on the scene next year as the vaccine becomes effective. That said, we have had an unbelievably strong run, whether we are talking from the march lows or just in the month of november from here, is it a zero sum game do you think its a question of rotation as opposed to all of the major averages rising significantly over the next, say, six months. I think this rotation will continue and again, i dont think we are going to see a selloff in the technology but reopening is going to happen in 2021. These are the stocks that were depressed. I mean a lot of banks, i dont think they are going to have as many writeoffs as they had feared we will see what is going on in the airlines, the hotels this is going to continue. I think the rotation is going to continue next year but i think the whole market will go up so i think this is not just a rotation i think this is a positive market trend. Mike, what do you make of the psychological impact of reaching thresholds like dow 30k . Does that help usually propel the market higher from there as you get momentum to rally around these key figures . The market has been going up. It has been marching higher. Sometimes there is some hesitation around these levels actually 20,000, which was short low after the 2016 election is when we were approaching there it kind of bumped around and sort of teased you with going above and beyond that threshold for a while. This is no standard rule as to how this goes. Even with dow 10,000, in retrospect when people think of it as having capped the 90s bull market. Et cetera not as if it is ringing the bell at the top. It remind people the market has been going up and people will forget exactly what the level is soon after that. Professor segal, is there a level of rates, tenyear, lets say that would worry you and suggest there might be a pullback in valuation multiples . I think rates are going to continue to rise i think the Strong Economy next year and rising inflation is going to cause those rates to go up but corporate profits are going to go up much faster and bonds are just not the place to be. Cash is going to be zero i mean, you know, we talk about a tino market. There is no alternative. It is going to really be that way. And thats going to drive people into stocks in 2021. Professor segal, why do you think it is that the market isnt reacting as it did in the february and march time fwram when we saw cases rise and greater restrictions why is it that this time is different . Is it because there is a vaccine on the horizon is it as simple as that . The vaks is so, so very important. The news could not be better it is at the very top of expectations and secondly, we do know how to treat it but hospitals are being pressed, but they are not as tasked we know how to treat it. Death rates have definitely gone down we have got to get through this wave this is the last wave, in my expectation and we are going to see steadily declining cases next year and dont forget stocks are the most forwardlooking assets they are looking forward to what the future is actually going to be. Mike, as to looking forward, ev stocks, tesla included, having an unbelievable run in the very shortterm. There is a little bit of a feel of late august about that for sure. I mean all of the kind of glamor stocks, the stuff that people feel very good about the longer term trends, and they feel there is no price to pay in the near term for them. All the china related ev is outperforming tesla not in market cap but in gains. There is a self feeding cycle going on right now where you have a lot of people reaching for risk it is getting rewarded and therefore you have more people reach for more risk. It is the way it goes all the time it doesnt mean it immediately comes to halt and people have to learn a hard lesson, but ultimately, the sentiment pendulum does tend to swing. And it overshoots in the shortterm. Professor segal, you know janet yellen, what is the Market Pricing in for her role in treasury shes a moderate. Shes a very intelligent person. I knew her as an academic as well as personally i mean shes a perfect person for the treasury its going to be very interesting the see whether biden keeps powell in a year and a half those two as a combination are going to be very market friendly for the future and i think that investors are very, very happy with who biden has selected so far. Professor segal thank you for joining us. Thank you. After the break, former treasury secretary jack lew joins us for a first on cnbc interview, his advice for janet yellen and thoughts for the biden economy, after the break you are watching closing bell, on cnbc. people greeting one another its being in his chair again. Not your kitchens. The buzz of the clippers. In his expert hands. How he remembers exactly how much to take off the top. And perfects a fade that had all but faded away. 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. Before money, people tools, cattle, grain, even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. Welcome back the dow topping 30,000 as the white house transition begins. Wall street also optimistic as president elect biden set to nominate former Federal Reserve chair janet yellen joining us now, jack lew, who worked closely with jaebl during that determine thank you for joining us mr. Secretary. Good to be with you. Do you think a yellen treasury secretary if it is indeed confirmed would mean a clear commitment to more stimulus if it is confirmed i think it is a terrific appointment. I think janet is someone who has enormous respect and trust in washington in congress in the business and economic worlds and i think she is long made the case that you need to have fiscal policy do its job during a crisis and that there is still a need for fiscal stimulus now so i think that would be one of the issues that shes already spoken to publicly before talk of her nomination. Do you think she would find approval in the senate easy . Look, i have seen janet in many settings. And she has great respect. I think she will have a lot of support in the senate. I certainly hope thats true for all of the nominees. But i think she has a background that is in ways without equal. I mean she has all of the different skills and parts of the background that a treasury secretary needs. And shes got a reputation in international and domestic economic and financial circles and shes an extraordinary teacher. I mean she helps people understand the decisions they have to make even when it is very complicated technical issues, she makes it very easy to understand what your choices are and how to make the right decision. Secretary lew you cant help but notice that the dow topped 30,000 today a remarkable rise since march. A tremendous bull run since then throughout 2020 people pointed out the disconnect between whats going on with the stock market and whats going on with regard to the economy on the ground what do you think the Treasury Department should be doing in order to bridge that gap i think the Treasury Department has to focus on the fundamentals and the economy and markets make their own decisions with each of the actors responding on their own for their own reasons. I would think, obviously, with the clarity now that the transition will go forward, and now that we see it will go forward more shomoothly with nas that are reassuring i think it gives better confidence that we are on a better path and that the flumt the also four years will be replaced by a clearminded policy. Thats good for confidence it is good for business. I think what treasury ought to have been doing and needs to continue to be doing is doing what it can to put the fiscal tools in place to deal with whats still a crisis. And i think that job is not yet complete. So mr. Secretary, if there are to be rebalancing effects coming out of treasury for the broader economy and for society as a whole is that something that doesnt come until the second half of a Biden Administration and which sort of taxes would go up in your eyes that you think would be the right ones . I certainly hope that step number one is more we have an economy that is heading into a bad few months because of the disease that is still not under control. With all the good news about the vaccine. The real relief wont come until spring, late spring or summer. That means that we have a long winter ahead and the time to act is now congress should act before the end of the year. It should act decisively i hope that this can be something of a confidence Building Measure where the two sides can start learning how to do business with each other again. And then move on to an Investment Program in a recovery package to deal with the long term tail of the economic pain that we are going to be coming out of even after the Health Crisis is over and the economy is starting to heal, its going to take a while and we are going to need to invest in the economy for that recovery to be strong. Whats at stake is they dont act, though . Obviously, it has been several months since we have seen any sort of real momentum on that front. Whats it going to take for them to act and what are some of the stakes if they sit done their hand and dont do anything . Look, i said for some time it is like playing with fire. The Third Quarter gdp numbers were good news but left the economy 3. 5 smaller than before the crisis thats before the second wave hits full force. What does it mean . Millions of families are going to face eviction if there is not action it means millions of families are going face hunger when they dont have enough money to put food on the table. It means state and local governments are going to run short on dealing with their regular responsibilities and the emergency requirements because they wont have gotten the assistance they need and it means that Small Businesses wont get the lifeline so that neighborhood businesses like restaurants can make to it the other side. These things wont wait. If congress doesnt act now, if they dont act before the end of the year, between now and february, a lot of damage will be done. And that damage can be avoided and must be avoided. Pivoting back to janet yellen, mr. Secretary, i mean getting confirmation for the appointment from the senate is one thing. What about dealing with the senate over the next few years it is something of course you have had great experience of goss janet yellen need to dole a couple of extra gears of her Political Tool box. Janet has a lot of gears already going. I have seen her in all kind of tough settings, whether they were domestic or international, working out differences amongst u. S. Regulators, dealing with foreign counterparts on how to prepare for potential Crisis Response shes very good. You know, what i said earlier about her ability to communicate . Members of Congress Want to understand what they are doing and having someone like janet yellen who has your trust and respect, who can help you to understand the choices that you have to make helps you get to the right place. I think you know if you look at what it takes to be persuasive in the senate, she has the whole package. And i think there are enough senators, including republicans, for whom that persuasion will be effective and i have high hopes that she will be very effective dealing with the senate. I just wanted to ask about the economy today, mr. Secretary. I heard what you said already about the sort of two different gears to it and the stock market versus the economy that said, latest estimates talking to jp morgan on the air earlier, is that the u. S. Economy from 2020 will see gdp 3 to 4 euro zone areas are looking at high Single Digits to dull digits does that mean the president and his team deserve some lawedettes relatively speaking . I think we knew when you shut the economy down there would be a sharp sudden drop and when you opened it back up a sharp sudden comeback and until the disease is under control it would be heavily damaged. I give the congress and Administration Credit for working together early in the pandemic to put the tools in place. What we have seen is the result of good policy in the united states, in europe, around the world. But then the policy here came to an en. Since spring, we needed to do more since spring, we have known that we needed to do more and we have gone back to business as usual in terms of politics this is not a time for business as usual politics. There needs to be another round of policy in order to avoid harm that we have the control to avoid. That doesnt mean it is going to be perfect with that response. Its still going to be a hard, long road back but i think if you look at the millions and millions of people who will avoid hardship that adds up to Macro Economic results as well. If all of those businesses close and all of those families are evicted, it is means that the economy is going to be hurt more you know, shame on us if we cant fine a way to deal with it. Secretary lew, speaking of pain, is there a risk that we could do too much stimulus pointing to the federal debt level is on track to surpass yule gdp for the first time wins world war ii and if nothing changes that number could reach almost 200 in 30 years. Should we we thinking as we talk about stimulus and thats filter into discussions in washington and with regard to the stock market should we also be talking about the potential for austerity down the road . This is not the moment. This is the moment to do what we need to do for the economy to have the best recovery that it can have i think until we are out of crisis period we need to use our fiscal capacity to heal the economy. When we get to the other side, when unemployment starts approaching normal levels, when Economic Growth is going to be sustained year on year, when we get to a place where we are out of the crisis, that conversation can begin. But we learned in 09, 10 and 11 the danger of throwing the brakes on too quickly is to slow down the recovery and slow down the economy. If we i hope we wont, but if we go back to the types of grid will be we saw when republicans in congress were threatening to shut down the government and force a default that put the recovery in further delay. This is a time to come together, move through the crisis and hopefully build enough confidence working together that we can take some small steps on the other side of it to get things back to a more sustainable place. The time to worry about the deficit was a few years ago when there was a tax cut that added 2 trillion to the debt when we were growing very strongly we are now in an economic crisis this is not the moment. All right thank you for joining us jack lew. We appreciate your commentary is this good to be with you, too. We have got about 25 minutes before the bell. The dow is still above this 30,000 mark, about 50 points above that key threshold, that historic threshold the s p is up 1. 6 the russel is the outperformer today with 2 gains. After the break, the dow hitting a record high today, but not all investors feeling that love. We will tell you about the latest wall street heavyweight to wind down his hedge fund amid lagging returns next individual Market Movers despite the rally on wall street shares of peloton under pressure after a wall street journal piece illustrates how the company is struggling to meet demands. Peloton shays delays are due to shipping log jams. Wells fargo getting an upgrade. Trading sharply higher by some 8 it has had a fabulous run in the month of november, up 32 this month. Benefitting from the upgrades and the pivot to value now a new york was the subject of a letter sent to investors today. The york is referring to York Capital Management run by jamie bindan who is spinning down the hedge fi hedge funds to focus on private equity investment. The firm currently managed about 8. 5 billion worth of longer duration strategies that will now be its focus it doesnt mean dinan is fully closing up shop but it is an aboutface for a veteran who cut his teeth on merger. He goes on to say while york has historically excelled during periods of significant dislocation we are not of course immune to the shifts occurring beneath our feet Credit Suisse will have to take a 450 million impairment charge from the stake they acquired in york a decade ago. Is this year broadly a good year for highprofile hedge funds . It depends on which hedge fund you ask certain funds are performing well amid the val tilt amid the certain outperformers in the market it depends what market you participate in as well on the other hand you are see strategies and certain funds doing horribly this year especially those in the risk parity space some that are quantitatively driven, those run by algorithms and computers have been unable to predict aspects related to the vaccine and covid as well as the election of course it depends on the strategy but this has been a year marked by a huge dispersion in returns. I was going to add, leslie, that there was this year because of the path, the violence in the decline from an alltime high and then the rapid rebound in way that happened so much faster and more dramatically than most people you had multiple ways to got it wrong, if the cadence were wrong risk exposures prospect there i also seen in this case a generational shift you have a lot of these people who started hedge funds in the 90s or even before that and they are getting to maybe toward the end of their own career asks there is not a lot of succession happening. It is not about passing it down to the next generation of management in some cases. There are exceptions to this but there is definitely a little bit of if not me, who . And maybe you your focus down to a core or a private Family Office. Thats an important question in the hen fund world, this idea that can you have a Succession Plan in a hedge fund, especially those run by kind of star candidates thats a something that a lot of Hedge Fund Managers have decided to close, become a Family Office rarely do you see people passing the baton in the hedge fund world. Interesting story that york capital and jamie dinan. Time now for a cnbc news update stereo heres whats happening at this hour youtube has temporarily suspended the account of one American News new york for promoting what was called a guaranteed cure for covid19 the suspension bans the posting of new videos for a week it also removes the networks ability to make money off the videos that it has posted. French president Emmanuel Macron saying the worst of the pandemics second wave is over he says he will start easing the National Lockdown this weekend and more restrictions could be lifted next month if infection numbers stay done. In florida, a woman is suing the publix Supermarket Chain where her father worked after he died of sustain. The suit alleges they did not allow him to wear a mask despite his request to do so pup litigation has yet to respond to the lawsuit. Some moments of bliss for the Worlds Largest road epstein. The cappy berras are enjoying a hot bath, a popular attraction a this zoo about 0 miles from tokyo. Very dense attendants there not much social distancing. Indeed. I dont know what the things are that are floating there with them i assume thats a treat. But they are noted to be the friendliest rodents in the world. There we go i dont know what they are either i have to go back in your crypt and look at the name again. Imworking on my next career at animal planet. We will see you again next time. We will have much more on todays record Market Action coming up. Also earnings from the tech and retail sector. Results from gap, dell, hp, vm ware, and more after the market close. Lets have a check as well on bonds as we go to break. Tenyear yieldrising once again,. 882 as we stand. Well be right back. The dow is above 20,000, about 52 points above it about 25 minutes to go the s p up 1. 6 . Russel up nearly 2 for a tremendous run of the small cap stocks Airline Stocks are surning along with the Broader Market. Up next an Airline Analyst breaks down the state of the skies and when he inthks the industry will return to normal dont go anywhere. 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. At morgan stanley, a global collective of thought leaders offers investors a broader view. We see companies protecting the bottom line by putting people first. We see a bright future, still hungry for the ingenuity of those ready for the next challenge. Today, we are translating decades of experience into strategies for the road ahead. We are morgan stanley. Airline stocks are taking off in todays rally the group has soared this month on positive vaccine news and despite warn prosecution the cdc against traveling for the holidays last weeks air travel hit a pandemic era record high however, the latest forecast from the International Air transport association now predicts a total of 157 billion in losses for airlines this year and next joining us now for more is jamie bake e senior Airlines Analyst at jp morgan thank you for being here what do you make of those loss systems . Is there any recourse for airlines at this point well, the eyata forecast is similar to ours for north america. If i was to forecast my 21 and 22 forecasts it want bad and then very good we assume that a vaccine will be achieved and 22 will be the primary year of profferry. Hopefully thats pulled forward is we see a little bit of recovery next year but in no ways have we had a probust forecast for 2021. It is going to be a challenging year for the industry. But thankfully here in north america everybody is flush with liquidity at the moment. By 2022 onwards you think the u. S. Airline grouping as a whole are kind of net beneficiaries of this period because they are in a stronger position than some global rivals . Yeah. It is important to note going into the downturn north america drove about 20 of global flight activity but almost two thirds of Global Airline profits. So we were better positioned going in after 9 11, there were you know, there was a cycle of failure, a cycle of bankruptcy a cycle of consolidation here in the u. S. We are not expecting to see that domestically but we are seeing that superficially. Failures, bankrupt, m a, thats going the make international profits more like low for delta, air canada, american and united once we get out of the dourn turn. Ipt i would suspect that school indication at this point this the u. S. Would be restricted by regulators how important is Holiday Travel for these airlines and what are your channel checks telling you about pricing this year especially relative to previous years. It is a matter of perspective. This is going to be the worst thanksgiving on record coming after the worst Third Quarter on record which happened to follow the worst South Carolina on reco the worse Second Quarter on record i am not telling you anything you didnt already know. For those flying in early march there will be a normalcy to it all. You are going wait in line to check your bag you probably got a reasonable deal on your ticket. You are going the wait in line for security shake shake may not be open. You still cant get a diet coke on delta for reasons that are not entirely clear the me. I think for the traveler experience this year, today, wednesday, sunday, those are all going to be you know, million passenger counts, which is sort of the new normal for these depressed times. Jamie, what about that position that many people have that the airlines most exposed to premium Business Travel will suffer over a fiveyear view not just over a oneyear view . And which of those airlines in particular we have never been quite as pessimistic as some. We absolutely expect Corporate Travel to rebound a little less quickly. You know, this week is a good indicator of Consumer Health but we need to see businesses, you know, such as my own start to send road warriors back out on the road. We think that probably takes two or three years to get back to normal but we are not of the view that Business Travel is forever impaired because of the technology that you and i are using right now. Jamie, great to see you, as always thank you for joining us. Happy thanksgiving. Take care. Likewise to you. When we come back, home prices surge and gap is due to report earnings. The market zone is ahead as we y wl o a close on this record daonalstreet as a remind, he you can always watch or listen to us live on the go on the cnbc app closing bell back in a couple. 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 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. Just over 12 minutes left in the trading dame we are now in the closing bell market zone, commercialfree coverage of all the action head sbag the close w. The dow set to close above 30,000 for the First Time Ever we will leave the index on the right of your screen the next 12 minutes. It wont move. You can track where we are hopefully we will close above that level mike santoli here to break down these crucial moments of the trading day as always and we have lindsey bell allians chief investment strategist as well. Good afternoon to you. Mike, i will start with you and the Broader Markets. Clear, 30k is a massive number to have crossed the dow though only up 5 year to date. Yeah we were on the doorstep of 30,000 back in january and february obviously events intervened and it has been more of a catchup move this the dow. And also sclgcal stocks similar to what was going none the nasdaq the dow and the s p essentially on track to close at a new record here. Incremental phases of relaxation or kind of dispensing with some of the big looming issues that have been reoccupying investors. Thats whats been the story over the last few weeks right now on the political front as well as the vaccine. Now i guess the question is, seasonal momentum and peoples willingness to just let the market ride enough to keep things going here. It seems like we are a bit stretched in terms of the attitudes of investors at the moment. Lindsey, what do you make about the tilt toward value . There will be the less concentration, less crowding among Hedge Fund Investors they have been slowly getting more into the value names. Is that a helpful driver of todays moves . Do you expect that to continue yeah, i mean i think what you are seeing today and you saw it last week, each in a week when the market was down you saw the value oriented sectors lead. You saw even the small caps participating. Today you are seeing the small caps as well it is definitely a rotation that investors are embracing. I think it is coming on the back of the vaccine news, the potential for a reopening to accelerate within the economy into the into early 2021 and beyond i think investors are starting to get more comfortable with it. Obviously, value has been a losing trade for a very, very long time. There has been a couple points this year where value has tried to take the reins from growth but hasnt been successful this time might be different given given the background and the tone that we are seeing from the economy and corporations in earnings that we expect to improve going into 2021 currently 32 points above 30k, set to close above 30k as we stand mike, is it as simple as value leading the charge this week, this month i wouldnt call it value outright if you define value as statistically cheap stocks it has been less about that and more about laggards and about cyclecally geared stocks and beta, the stocks that are more volatile, the ones that move fastest to chains in the macro outlook and the overall market those have been the dynamics large into small, overowned into underowns arguably of the it has been very violent, though. I feel like there have been fault starts this. Has complete buy in in my view and i think investors feel thats the fastest way to participate in this next leg what have we are expecting for the economy. I think we will be tested on that premises here a little bit i mentioned that the nasdaq out of nowhere went from flattish to up 1. 25 thats growth. Thats former leadership thats momentum. We will see if you get a little bit of a wrinkle in that dynamic from here. Receipt now, as i said, everyone seems to be kind of on the same page with what is working. And they think that it should be and we will see if the market, you know, ratifies that. I think thats true, i think in speaking with prime brokerage desks there is a lot of to leverage. Strong covidinduced command from home buyers over the summer cause an exceptionally strong spike in home Prices National values jumped 7 pz year over year thats the largest annual gain in six years home prices are now nearly 23 higher than their last peak in 2006 the tencity composite was up 6. 2 annually. Up from 4. 9 in august the 20 city jumped 6. 6 up from 5. 3 in the previous monday this index is a three month running average it represent cents prices from july through september. It does not look like things are cooling off at any time soon back to you. Thats absolutely true, diana. Thank you very much. Lindsey, what do you make of this kind of frenzy over the Housing Market does that kinds of contribute to the confidence that we are seeing in the equity markets recently i defen. I definitely think there is some component of confidence that consumers gain from the housing mark being strong, given it is usually the largest asset that many individuals own. And you really cant underestimate the power of low Mortgage Rates in this environment. I think thats really playing a key component in the housing prices if you look at the existing home numbers that we saw last week, up 26 , 26. 6 year over year we get new home sales later this week and its just been a market thats been on fire, driven by low interest rates, low Mortgage Rates as well as demographic changes with millennials coming of age and starting families ask. The pandemic obviously boosting the desire for many individuals to move to suburban areas outside of many cities 30,031 is where we stand with six and a half minutes left. Lets get to bertha comes now who is having a look at the retail movers particularly today. Bertha yeah, not doing so well, best buy and kicks Sporting Goods both beating Third Quarter estimates after reporting more than 20 same store sales growth but both shares are down after 174 online sales growth in the quarter. Best bye executives say they dont expect those trends to continue in the Current Quarter citing higher display chain costs. Dicks says Curbside Pickup is resulting in stores driving 90 of total sales no guidance from the ceo ed stack but he was fairly upbeat about holiday and the momentum continuing into 2021 after the bell we will be hearing from gap which hit a new 19month high today. Thank you bertha. Mike is the Broader Market slugging off some soft consumer data this morning . A bit yeah it is not that focused necessarily on the real time you see some of the daily and weekly mobility and job posting numbers havent been going in the right direction. The overall market perfectly willing at this point to look through. Fast moving dynamics on the covid case situation as well getting commentary how it looks like positivity rates might be peaking in some of the hard hit areas. I think right now the market is fully on board with the 2021 revival story, trying to price that in as quickly as possible really what we have to sort out is how much of it has already been put in the books. We are up to 30,053 now with five minutes left on the dow with the likely nomination of janet yellen as treasury secretary we wanted to have a look at what the Biden Administration might mean for the bank stocks which are rallying hard today as they have been all of november the key reason being that the economy and rates matter more than politics. Here this chart over the last six months including the june spike and recent spike in bancshare prices cloetly correlated with yields rise asking falling an expectation that president elect biden and now yellen too would be willing to spend on covid and medium term things like infrastructure helps growth other key regulatory positions are not open for a while head of sec and fed chair supervisors are the only positions will be open next year lowering Regulatory Risk fears that may have been attached with a democratic nomination. One could argue that with biggest shortterm regulatory future for the banks is whether or not they can perform buy backs. Another small bonus there. Finally, banks have done better under the last two democrat president s than the last two republican president s. Is that because of those president s in particular or other factors . Probably other factors, but it at least implies that the change in occupant of the white house wasnt be the key determinant of bancshare Price Performance over the next few years mikings i guess over the last couple of months there have been fears as to whether a switch at the white house, and perhaps if it was a big wave of progressives, that that would be bad for banks. Certainly in the shortterm that hasnt been the case. No, certainly not i do think as best we can tell the list of policy priorities on the economic side under a Biden Administration will contain perhaps some cinching up of regulations on the bank. I dont think you can make a compelling case that one of the major issues facing this recent run in the economy has been poor behavior by banks or excessive risk taking by banks at this point it is around the ems and the Macro Economy has more to say about the position of banks. They have yet to appoint anyone with a big role in the wall street world. To minutes to go in the trading day. Mike has more on the internal. If you look at breadth the up and down volume on the New York Stock Exchange it was around four to one. More than 80 volume to the upside it has been an inclusive rally look at new highs versus new lows on the New York Stock Exchange s this is new 52week highs and lows i doesnt get a whole lot better than that. I think the question is not so much is it broad enough but is it getting a little bit too excessively frothy in there in terms of the stretched conditions underneath. Volatility index certainly has traded down. Toward 22. A little bit under 22 right now. Thats a pretty confirming move for the valley but it has been sticky largely because so much speculation in the call option market people playing upside has also supported the volatility index it is not so much about fear supporting the vix receipt now as it is the jumpiness of the market and the aggressive action in call options. Just under one minute left. We crossed 30 on the dow for the First Time Ever. We look set to close there 30,045 as we approach the claes. S p 500 up 1. 6 . Nasdaq up 1. 3 a broad rally today. All but one sectors in the s p just dipped in the red real estate. The rest massive byebye energy ible ifs the second best performing sector, up 3. 5 the banks up 5. 3 . Materials coming in third on the Sector Performance as the bell goes, the dow close be above 30,000 for the First Time Ever. 30,045 only up 5. 3 for the year. It has had a strong month of november, up 13 a strong week, up 2. 7 today up 1. 5 to 30,045. Welcome to closing bell. I am leslie pickert in for sara eisen along with wilfred frost and mike santoli, cnbc senior markets commentator. It is official now when we say dow 30, we can add a k, above 30,000. Closing at 30,045 today. The s p 500 and nasdaq and russel also up in todays trading. The biggest contributors to the dow 30k threshold, goldman sachs, boeing, disney and jp morgan also in todays session we saw oil higher for the six out of seven sessions the treasury quurve steepening as well. Coming up, mad moneys jim cramer on this market milestone and whether the market will keep gaining steam from here. Alley is here. And joins the conversation. Mike, what do you make of this historic day it is a continuation move of what weve seen all week the last four weeks in particular, essentially investors found reason to just sort of release a lot of tension that had built up through the election period and before we had a little bit of firm news on the vaccines so i see this as more of an upside momentum push for what has already been going on. Indicators, the rhythm of the market and the way it is behavior behaving are favorable. It has a broad broad cyclicals are leading. The credit markets have been firm all these things put together says it is difficult to find direct fault with how the market has been acting. On a shortterm basis it becomes a matter of how far it has come in a shirt expert and how investor positioning and sentiment is shaping up. That is where i think you are starting to see signs of it being a little bit excessive and frothy it can go on like this for a while but i think you have to have that on your radar. Aj do you think things are excessive and frothy in the shortterm i think thats correct. The positive news on the vaccine front added to this rally. If we look to the next months with all the restrictions that we are seeing and the payment deferrals expire at the end of the year a lot of people took advantage of that, thats going cause volatility in the market and we may see a little bit of a pullback i had advise investors to be aware of it but understand that we have light at the end of the tunnel with the vaccine news so just stay the course. Lindsey, do you agree for investors looking to hedge you saw gold trading lower, some of the safe havens not acting the way they normally would. How can investors broke their downside in anticipation of potential volatility right now i think the market is going to remain volatile through the end of the year probably into the beginning of next year there is still a level of uncertainty even though they are seeing this sigh of relief from investors as we get past the election, as we learn about vaccine, as appointees like janet yellen are announced that are much more friendly to the market so there is a sigh of relief i would say while you know the last couple days you know we teal like maybe it is getting frothy feeling a little more exuberant among investors if you look at the aaii survey, 40 bullishness, a little bit above the historically bullishness at 38 but not too extreme. When you look at valuations the one thing we havent talked about is how they have come in in the last several weeks with the Third Quarter earnings season because earnings for 2021 continue to rise and i would remind everybody that most likely the vaccine and economic benefits that come from that in the reopening story continuing into 2021 has not been reflected yet in the s p 500 consensus estimate grant it, the market obviously is forward pricing and pricing some of that in already. I still remain optimistic and dont think it is too frothy just yet. Mike, whatsthe option telling you. Rampant buying of calls people want cheap exposure to up side we saw this bag in august especially as well thats been pretty consistent. Multiyear lows in terms of the ratio of calls to puts thats one indication that you have this independent of energy out there from smaller investors largely that just want in and they want to play it in an accelerated way. Again it is a feature of a bull market it is not a situation that you have to say instantly is the kiss of death. What is fascinating the way that we are explaining whats going on in the market not we right here but in general as a reaction to the electoral result and the political setup and the treasury secretary appointment all of a sudden it translates into play for stocks that have a higher nominal growth almost exactly literally the same following the trump election where the market instantly said we are going to be positions for nom gnat growth. Thats interesting. History certainly repeats itself we will see if the gains can replicate what they have done since 2016 six minutes ago we crossed the 30,000 threshold for the dow lets get to dom chu for the stocks that powered the dow to that level. It is the big ones. The ones we know they are blue chip names and of course they got we cons aught toed earlier this summer lock at some of the ones that led the year to date gains if you look at salesphores. Com which you should put an asterisk buy because it was just added to the dow on august 31st look at the garngs 60 for salesphores, and apple and microsoft up there as well merck, Cisco Systems and microsoft. These are the stocks that analysts think could have the most upside potential into this next year. Merck has an implied gain before around 19 cisco, around 17 gain skrk microsoft around a 16 gain. Of course malaysia, a real leader here. One more subset i will show you here these three stocks are arguably the most important mathematically they are. United health, home depot, and salesphores. The reason why is in a price weighted index the stocks with the highest per share price have the most weighting united health, home depot and salesphores. Leslie, wilfred, those three stocks make up roughly 20 of the entire dow it sure seems like when you have those three names leading the way the dow jones could see 40,000 because of those stocks and others. Thats a good point thank you for remindsing the audience about the price weig weighted nature of the dow a. J. Do you think the dow is representative of the u. S. Economy as i stands right now. I wouldnt say it is completely representative of the economy. Unemployment is still at 6. 9 . Haas weeks new jobless claims numbers were fairly high as we go into more restrictions we will likely see the numbers increase as l. A. County shut down outdoor seating and new york city is putting in restrictions as well i wouldnt say it is representative right now of the economy but the market tends to look forward but we are hopeful with the positive vaccine news and hopeful as well that we can get stimulus to brimming us to the other side and eventually the two will meet up and the numbers will make more sense. Do people play dow etfs in the same way as qqq in the s p 500 . Not in the same way they have been out quite a long time it is not as much of a fixation. It is actually easy enough to do it on your own, 30 stocks price weighted no it is certainly a reasonably traded etf as the general etfsts being but nothing compared to those others. The hp earnings are out, josh lip ton. Hp reporting q 4 eps this year of 64 cents the street was looking for 52. Revenue also beating, 15. 3 billion. Analysts 14. 7. Q 1 eps they are looking for 64 and 70 cents, the street was looking for 54 cents personal systems, pcs, 10. 4 billion. Distributing at 10. 5 billion dollar printing was better than expected the supply, ink and toner, rather, thats this companys profit center, also better than expected at 3. 1 billion. I had the chance to catch up with hp executive talking about the quarter on the pc they mentioned mix in the quarter low priced chrome books, no surprises, kids were going back to school. What does the pc market look like next year hopefully as more people are going to return to the office the ceoing the me he is confident and saying the pc is essential, demand for 2021 pcs he says will continue to be very strong saying we are entering a new type of normal where people will have flexibility working from home and from the office. They think thats going to help the pc business. We talked about his printing business the Home Business is impacted positively by the remote work trend. The Office Business he says negatively impacted. As the pandemic eases he argues the commercial printing business will get better but timing of that recovery he says is hard to predict, we are still in fairly uncertain environment. Hp has an acting cfo in marie myers. I asked the ceo how the cfo search is going. He said hp is actively searching but the company has a high bar in that search. Hp up almost 10 on those results. Clearly some confidence mike going into 2021, especially as it pertains to pcs what do you make of that will people continue buying computers next year . You know, i dont know about the computer side in as high numbers but i dont think you have had too many quarters where hp has beat ten top line by half a million dollars. It has been flat to down trends overall. They obviously were reaping the rewards of this environment. Also raising the dichbd by 10 it has been a yield stock and they have been sharing that with investors thats probably not you are thing either 2370 is back to where this stock peeked in february. A. J. , any old tech names in the sweet spot as we look into the next couple of years unfortunately i cant talk a specific stock name but we do like the sector overall. I know today we are really talking about the dow 30, and you know, everybody we saw the market was very narrow back in march, and to move on through there. But we still overall do like the tech sector. Thats really what i can say about that at this point right now. Lindsey, how do you suggest investors look at kind of these forecasts for 2021 for so long in 2020 people have been talking about there is so much uncertainty out there a lot of companies have suspended guidance, suspended predicting what their business could look like from even a qualitative standpoint into 2021 how have you read the earnings thus far as far as their projections for next year . I mean, with regards to the outlook, its always the most important part of any earnings season not just what they did in the quarter that has already ended but what they are thinking about the Current Quarter and the future investors are always looking forward to hearing what companies have to say. Unfortunately, companies have been shy to reinstate guidance given the uncertainty that remains related to the pandemic and the future of Economic Growth for the country but i think whats interesting, what a sell tail sign of is where we are going with earnings is exactly what you saw from like an hp tonight dividend increases, buybacks being resumed at Companies Like retailers. Tees are all clues into where the future of Corporate Capital is going and they are pointing in a positive direction you have seen, like i said earlier, consensus eps estimates moving higher on the back of the Third Quarter earnings season which was much better than expected, with estimates by the way for the Third Quarter rising going into the beginning of the season, them surpassing those higher estimates, and 2021 also moving higher on the back of that so of course we are always going to keep our ear to the ground to listen diligently to what ceo and cfs have to say about the future. I think we can all rally around the prospect of a brighter 2021. Thank you for joining us on this historic day where the dow surpassed 30,000. Still ahead, mad moneys jim cramer on this historic day for the market and where he sees the biggest opportunities right now. We are back in 90 seconds. When i was in high school, 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. Heavy buy in by lots of different classes investors to this rally this is from Deutsche Bank it shows a positioning of Discretionary Fund managers. Not those following kind of a black box system this is before the last couple of days. You got up to this level of b 8. Doesnt matter what the units are. But if you look at it on this scale, it was rarely higher. This was this move into 2018, the peak in risk taking before this decade long something and not long after that that the bull market started, after low in 2010, 2011. It looks like it is getting stretched. Some of those have not quite as heavily into this market maybe there is room to go into that now nobody is short this market eat. Goldman sachs says the median is down here. This goes back to 2004 pretty much nobody is in this way single stock shorting fighting this uptrend for now. Fascinating thank you for that is this it was recordsetting day on wall street up 454 points on the dow to 30,046 up next wweill discuss that milestone and where next, with jim cramer grandparents we want to put money aside for them, so. Change in plans. Alright, lets see what we can adjust. Wed be closer to the twins. Change in plans. Okay. Mom, are you painting again . You could sell these. Lemme guess, change in plans . At fidelity, a change in plans is always part of the plan. Its time you make the rules. Lemme guess, change in plans . 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. A recordsetting day on wall street the dow closing above 30,000 for the First Time Ever. Lets bring in mad moneys jim kram for his take. Great the see you. You as well, great to see leslie. Hey, jim. Thank you for joining us. I was wondering whether you feel there is a little bit of a sense of overheating you look at the likes of tesla and the ev stocks this week. There is a feeling likeit is similar to late august when of course we had a pullback, not a collapse but a pullback. I think we are faced with the prospect there is a whole new group of investors who come in and seem to lying anything i have nikola on tonight a hydrogen based Truck Company they have belief, it tends to be younger generations who have faith. Yes it is overheated but the source is science. Science is triumph we dont speak on the network about how great science has done none of us thought this was possible i spoke with the head of one of the Major Companies doing this trial and he told me we were going to be able tobeat this 95 , three months ago. It seems fanciful. I think there is a feeling of happy days are here again because if we can get this under control it is going to be like the end of prohibition. And we will be going to bar san miguel quickly. I hope. One question is whether rates rise you are you are a bull on apple. Is there a level of rates that worries you about their multiples . I think we are so low look, if jay powell stays in and janet yellen is treasury secretary i think they will choose to raise wisely as did janet when she was fed chief i have no disrespect when she was fed chief yellen what i really like about this, wilf, it tremendous respect for senator warren she knows i feel that way but a lot of people felt she was going to get the treasury job. And thats bad news for wells fargo. We see them as the leader. I mean wells fargo they are the leader. And goldman, contributing the most to the dows gains today as well it is definitely part this whole trend where we have seen a return to value. We have been talking about it for weeks on this network. Jim, do you see this pivot continuing from here now that we have reached 30,000 . Look, we are in a we dont have any eps coming. You can dream dreams goldman says it is only a couple of bucks above its tangible book value what was scrubbed clean. Solomon is doing a good job. There is a problem with malaysia you can say listen what is it doing at nine times earnings james gorman morgan stanley, what is that stock doing down there thats how people feel i think there is an overall sense that that segment has been forgotten and now can be bought because the multiples are so lore. Morgan stanley is up 28 year to date. Whats it done lately in the last few years, wilf. I know only too well all the banks in general have been terrible. Hes done a lot, et cetera not the same morgan stanley. Hes done a lot to make sure it is a more democratic less ethereal, more down to earth bank, thats what i like and over 50 from sort of sticky Wealth Management these days you mentioned nikola is coming up what else is coming up on the show Hewlett Packard hp they have done these numbers with buybacks with good growth in printing with a dividend boost not necessarily in personal computers some people will say this story is not good enough i say look this is a huge Cash Generator that pays huge yield and is doing well. You can about in it if you want to be able to get a good return. Back to where i think things are overheated retailers have been overheated and we are going to revert back the walmart, to amazon, the target, costco and home depot . Why, because the number of case we get per day and how scary it is. I used to have 25 people at thanksgiving angling for four. It is easier to cook for four. I burned a turkey a couple of years ago. Put it in oil. Everything was fine. Then there was no bird i had to go to whole foods do you know what i mean . We are in a moment where we are thrilled about science but personally its foot race between the virus and the vaccine. The vaccine is going to win for most of us i hope. I want everybody the a great vaccine. And if things return to normal you have a list of stocks i do, i posted it last night. I promised to buy everybody a bottle of wine i am good for that. I am looking forward to that. Not the 40 year, i cant get enough bottles of that return to normalcy look at that norwegian cruise, leslie, get your family, my familying we are going to go to the haven sacks of the norwegian cruise and we are going to watch some wales. You have got disney on there, cruises, even tesla a return to normal stock. Tesla is a an everyday stock. Good stuff, jim we appreciate night i am loving your show. Rerks its science it is overheated in a lot of parts. There are too many stocks that are going up but science won. We know that we are going to get this vaccine we are going to get it in our arms and life is going to return to somewhat normal. I am very happy about that. Science has won for the last 500 yearser so whats different this time people forget that, people bet against science. The first amendment, gives everybody the right to be as stupid as they want to be. I guess thats true jim we will be tuning just about an hour and a half from now; is that right power house show. They say that about every show. Be sure to catch mad money tonight, 6 p. M. Eastern. Will speak with the ceos of hp and nikola. Logic tech has been a stayathome stock winner this year coming up we will ask the companys ceo whether sales will keep surging once people srtta returning to offices if they start returning to offices, hopefully soon stay tuned 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. Itthe north pole has to and be feeling the heat. Up, its okay santa. Lets workflow it. Workflow it. . With the now platform, we can catch problems, before customers even know theyre problems. Wait. A hose . What kid wants a hose . fireman . Says hose. It says horse not a hose cedric get over here now our people can collaborate across silos, from across the globe. So hows the new place . Its a 4 bed, 2. 5 bath igloo. Its great yeah, but you have to live in the south pole. Sir. Wait, are you sure . Yes, were that productive now. You hear that . the kids get twice the presents about time 2020 gave us some good news. Whatever your business is facing. Lets workflow it. Servicenow. Lexus has been celebrating driveway moments. Heres to one more, the lexus december to remember sales event. Lease the 2021 nx 300 for 349 a month for 36 months and well make your first months payment. Experience amazing at your lexus dealer. We have a news alert on gap and nordstrom. Thanks wilf a mixed quarter for gap. Missed analyst estimates of 32 season on the bottom line but on the top lines revenues were ahead at 3. 99 billion compared to 3. 82 estimate Digital Sales were the standout, up 61 thats a little slower than the boost we saw in the Second Quarter where they were up nearly 100 . Comparable sales were up 5 . Old navy among the standouts, up 17 . Ate letta with a record 37 increase in the quarter. The weak spots remain the flagships. Gap stores down 5 and Banana Republic down 30 they are not ri providing guidance they do see Fourth Quarter sales flat to slightly higher year over year. Analysts were looking for a drop and ceo sonja singal telling cnbc shes optimistic about the holiday quarter. She thinks the consumer seems strong and they added 3. 4 million new customers on line during the quarter gap had been up 70 over three months you can see taking a hit there after hitting a new 52week high this afternoon. Nordstroms earnings meantime not really comparable. They report a diluted share of 34 Cents Per Share that included an income tax benefit of 12 cents related to the c. A. R. E. S. Act not clear how that compares to the expectations on the top line, revenues just shy of on theatioexpectations a compared to 3. 10 billion such different pictures nordstrom up 8 . Gap down 8 based off of those earnings dell earnings also out out deirdre bosa has the results leslie, dell surprising on the upside an annual decline in revenue was expected instead we got growth of 3 and a large eps beat on demand forry remote work and learnings solutions. Eps coming in at 2. 03 versus 1. 40 expected. Revenue at 23. 5 billion versus 21. 85 billion expected. Client solution group, this is the unit that sells pcs and notebooks beating here as well, coming in at 12. 3 billion versus 10. 8 billion expected. The consumer business was helped by the continued demands for remote work learning and gaming solutions. Dull digit growth in not books triple edit growth in chromebooks. Guard der data suggested that dell was losing share to lenovo and hp investors are going to be listened to managements comment on the macro environment for enterprise going into next year as the reopening trade trends take hold and the possible rags from vm gear time now for a cnbc news update with sue herera. Quarantining after exposure to the coronavirus may soon take less time. The wall street journal reporting the cdc is looking at shortening the recommended duration to between seven and ten days this is is an effort to get more people to comply britain is easing coronavirus restrictions so families can gather over the holidays between december 23rd and the 27th, up to three households can form a christmas bubble. People are currently barred from visiting members of other households in much of the uk. Here in new jersey all Police Officers will be required to bear body cameras while on patrol new jersey becomes the sixth state with such a mandate. An update for you on this sbrep i had owl. He was discovered in the Christmas Tree after his arrival in new york city it has been recovering and is now well enough to go back into the skies. She is being released at sunset. Everybody thought it was a he. Nope, rocky is a she. Up next, liz ann sonrsde on the bisquest risk to the market now that the dow has hit 30k for the first time we are back in a couple of minutes. These days, we want sophisticated but simple. Cutting edge made user friendly. In other words, we want a hybrid. And so do retailers. Which is why theyre going hybrid, with ibm. A hybrid cloud approach with watson ai helps manage supply chains while predicting demands with ease. From retail to healthcare, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. Welcome back the dow hitting 30,000 for the First Time Ever and closing above that level as well lets bring in Liz Ann Sonders from Charles Schwab to discuss where next liz ann, do you think the market can continue what it has done of late, which is to folk outside2 medium term and the vaccine news and ignore the case spikes of covid . Probably different the momentum thats in place i am a bit worried about sentiment. I know you guys have been talking about sentiment in the last few segments. But what had been sort of a concentrated speculative fervor knowing that the day traders typically in the high momentum stocks in the single stock market has become more pervasive across the behavioral and attitudal cohorts. The good news is is that it has been in the midst of this kind of rotational market where it has moved into areas where they have not been the big momentum winners. I think sentiment sets up the possibility that you get a negative catalyst and that could be weaker than expected Economic Data in the near term it is the markets job to look through valleys to move forward especially giving the pull forward via recovery with the vaccine. Sentiment to me represents the most significant risk right now not the potential for weaker Economic Growth. To your point there has been a big divergence between two of the major indexes. The dow of course surpassing 30,000 today over the last two months, up 7. 8 the nasdaq up 41 over that same time period. Do you think that rotation that we are seeing now can actually close the gap between those two indexes . I think its going to take a little while youve got you know a little more of the traditional cyclicals embedded in the dow. When you look at this more recent phase of rotation the funny thing is you go back to the september 2nd initial surge this the s p and the nasdaq to alltime highs that was the massive spread between all the big five and the other 495 stocks with a 62 age points red is spread. The big five were up 65 and other stocks were only up about 3 fast forward since then today. The big five are actually down in correction territory and the other stocks are up about 3 now it has been very concentrated in energy and financials which are still down year to date i think the row take thats happening now is not so much a growth to value or defensives to cyclicals. I think it is more about where havent we really pressed the buying best yet . Where can we still find momentum in the lag ar. Case in point today. Energy and financials were up a ton. They are still the down sectors year to day. We are sort of checking the backs boxes by these investors saying okay what hasnt had its momentum surge yet lets by some of that. I worry that the sentiment of that trade could eventually exhaust itself and then you have to eventually get back to annizings stocks on fundamentals. I get that it is suggesting we are a bit overbrought this the shortterm on the flip side where are clients cash levels it depends on what types of investors you are looking at if you look overall at household equity exposure, household fixed income exposure, household cash exposure cash exposure Mutual Fund Cash levels is fairly low right now. There that deny mean there couldnt be rotation within portfolios say from the fixed income side which of course until recently had seen most of the inflows both in traditional mutual funds and etfs. But i think a continued move into equities is more likely the come to other Asset Classes as opposed to a cash cushion that doesnt really exist. With several weeks left until the end of the year the rebalancing could take shape really soon. Thank you for joining us today. My pleasure. Work from home winner logitech up 100 double from its march lows the ceo joins us next. Closing bell will be right back plans available to anyone with medicare. 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One stock that could benefit is logitech, the company has been a big work from home winner doubling since the march lows. Joining us now is logitechs ceo bracken darrell. Thank you for being here. It is not often that you see Quarterly Sales growth of 75 in a company thats four decades old. Thats what you managed to do in your most recent quarter i think the question among the analyst and Investor Community now is how do you sustain that moving forward those are tough comps. The exciting thing is we are driving behind long term secular trends the work from home trend is here to say it will be work from only and office which favors us the Video Conferencing favors us the growth in streaming favors individuals that are not on camera like you are in a big station or company favors us ask. The rise ofgaming as a sport, spectator and participant support favors us. We are on these trends that are going to keep going. How are you modelling the secular trend toward a hybrid work force Deutsche Bank said it was considering 40 permanent worm from home policy for example how are you looking at 2021 . What are your customers telling you with regard to their plans for maybe shifting to more of a hybrid model we are seeing yeah we are seeing a hybrid model for sure there will be two extremes and a big middle the one extreme will be a number of companies that will be Companies Working from home complete completely and the others are going to be totally working this the office. Those are going to be the extremes and the vast majority is going to be working from home and working this the office. They are going to need equipment in both places. We saw apples latest announcement the way they have upgrated their lap tops to have better cameras, better speakers, better micro phones inbuilt is that a threat to you . No. If you think about how many people are using something that exists out there that doesnt have a great camera or a great microphone, all of those are opportunities for us and having a separate product in addition to that is a benefit. We dont view that as a threat we view this as an opportunity for us, part of a long term opportunity thats going to keep going. What about your supply chain. What flexibility to have to react to a surge or tick down in demand with various elements arise with regard to the virus. We have had a long history of ramping up and ramping down manufacturing inside our own factory, in partner companifact. We have been doing this for 75 years. We also managed to move manufacturing out of china into other places in a. It is part of our flexible model . How are customers purchasing your products right now . Have you witnessed them doing so more in stores are you seeing a rampup in kind of direct to consumer ecommerce plays here. It is on line so there is some instore buying but the vast majority is on line and either through on line retailers or omnichannel retailers and our own direct sales have also gone up dramatically. We have the leave it there. Thank you for joining us bracken, appreciate night thank you. Up next, free money. There is a very clear reason why so many wellknown investors are getting into spaces this year. We will dive into that and some fthrsarngou enis movers 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. Dont get mad. Get e trade 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 to closing bell one area of the market that has brought together a former nba star speaker of the house and investor these are vehicles that collect cash from investors for a to be determined acquisition in the future they are burst to the scene with a wellknown lineup. On average spac sponsors have brought in 72 million each based on the 23 spac that were listed in announced acquisitions this year. It can exceed nine figures they roughly acquire 20 of the spac and also invest a few million to cover fees and expenses while they research a target some managers are lowering or waving their promote just to entice targets to be acquired. When do they get the payday they are locked up in the spac until about a year after that deal closes that is the typical conditionality they stay usually that is on paper until they sell. Its better to be on paper wealthy than not on paper wealthy. Thats true money that has gone into spac, do we know what percentage is yet to be deployed that would indicate whether things are overheating and money is raised out of thin air. Only about 23 companies have announced or closed transactions that have also ipod their spac this year. I think there are about 150 that have launched. Only a small portion have found their targets which is part of toms piece. The dry powder chasing deals what that means for valuations and what it means for traditional dealmakers like venture capital. Very nice indeed. We will look forward to the spac series tomorrow. Dow closing above 30,000 and what we are watching tomorrow we will be back in a couple. Congratulations welcome to the aflac program. Aflac now tell me, what does aflac do . Aflac pays you money directly to help with unexpected medical bills. And is Aflac Health Insurance . No, but it can help with expenses Health Insurance doesnt cover thats right. Are there any questions . Coach yes . Can i get one of those cool blue blazers . You know i cant play favorites. Alright lets talk coverage. Its go time get help with expenses Health Insurance doesnt cover. Mmm hmm get to know us at aflac. Com 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. Before we talk about taxsmart investing, whats new . Audreys expecting. Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. At morgan stanley, a global collective of thought leaders offers investors a broader view. We see companies protecting the bottom line by putting people first. We see a bright future, still hungry for the ingenuity of those ready for the next challenge. Today, we are translating decades of experience into strategies for the road ahead. We are morgan stanley. Welcome back how we finished the day on wall street surpassing 30,000. You can see the gains for the dow to finish the 30,046 today russell was up nearly 2 a look at some after hours movers as well gap down sharply on earnings nothing short of a momentous day here for the dow since dow 20,000 was hit back in january of 2017. Microsoft the best performer since that period. It took less than four years to get to dow 30,000. It has done about 10. 5 what was interesting on this one. It didnt flirt with the level much sometimes that happens it happened with 20,000. When i started this whole deal i think it was at 3300 sometimes you get to these thousand marks and they dont know if they want to go through. I know they can use some catchup, but Energy Sector is up 39 morgan stanley, wells fargo up more than 30 . Part of that is a reflection of exactly how much underperformance had been built up years and years in those sectors, but also shows you people are grabbing at stocks to show they can have a strong finish and maybe do some catchup everybody is on board that we can look through the numbers tomorrow we have a lot of economic numbers three days worth because of the holiday. Keep an open eye on what the market does in response to some of those numbers some of that data this morning wasnt that strong the dow closing the 30046, up 1 thanks for watching. Fast money starts now. Im melissa lee. This is fast money. Tonight we are charting the rallies. Dow hitting a major milestone. And breaking down the next level to watch plus the big fight over ford we will find out who is in the driver he is seat. Drivers seat and the bitcoin buzz as it crashes through