Transcripts For CNBC Closing Bell 20240711

When it begins lets elook at what is driving the numbers today. Millions of americans remain out of work. Could that weakness pressure lawmakers to reach a stimulus deal we will see. Negotiations are under way as we speak. The dow up some 200 points or so two thirds of a percentage with 59 minutes left in the trading week kayla. Wilf, it is great to see you on this friday afternoon coming up on the show, door dash and airbnb ipos to come next week and a big test for appetite of some names in growth tech speaking of high growth, scott cutler, we will get his take on the e competition in apparel and sneakers mike santoli has the market covered. Ylan moi is tracking the latest movements on a stimulus deal and we will dig about sboo the jobs report with Dana Peterson. Mike first to you. What are you seeing behind the charts. Almost all news translated to good news for the market in this current mood that investors are in if you look at a fiveyear chart. Decided to broaden it out here more like a three year chart of the s p 500 it is kinds of an up and away move yes, wos than forecast jobs numbers but better than feared and nothing getting in the way of this idea we are positioning for a better 2021. Leaders are good semiconductors and brokerage stocks everything you want to see in a bull market let me point thing out i am taking liberties drawing this trend line here but a lot of folks are saying how much more are you going to be able to get . It is getting stretched i keep saying that but markets can stay overbought. In the past two post election cycles, 2012, margaret had a little bit of turbulence right after the election as you see right there. But then this was one of the calmest and strongest markets we have seen in 2013. Very low volatility and everything worked. 2017, a similar story. Higher metabolism type stocks working also a similar angle turbulence around the election and then very steady didnt have anything more unanimous a 3. 5 pullback this entire year. The difference between then and now, the market was much cheaper then, 13 and 17 times earnings, we are now at 21 times forward earnings we still have to remind ourselves that sometimes when we have a belief phase of a rally it doesnt necessarily stop just because everybody is on board with the bullish case. B of a is saying there was a record 115 billion in flows into Global Equities just in the last month does that mean that a lot of this is front loaded . Is there any steam left to take us into the first part of the year i could see the argument that it is getting overheated, investors grabbing equity expezzure. I think the market is ahead of itself on a not of technical elements and sentiment looks overdone again, you can take care of that just by calming down, having a slower pace of the rally, going sideways, pulling back it doesnt mean it is a game over story but definitely means it is no longer a hated rally, no longer a contrarian to be a bull right now. 13 times to 17 times earning. 13 at the beginning of 2013 and, it went up to 14. 5 or something. Then at the beginning of 2017, you were around 17 times it went up to 18. 5 my point, each of those years you got a point and a half of pe expansion. And the rates are low. That helps to substantiate why we are at these valuations but what gets you to an ever higher valuation if rates are already low and corporate bod veds are already very tight. It is difficult the find the case for really further multiple expansion. Never say never. We have been higher n the late 90s. S p is up. 7 negotiations continue behind the skeps on a possible stimulus bill it feels like we say that every single day ylan moi is watch forth any progress wilfred, democrats are now using that disappointing jobs number to argue that the economy needs more help, and fast. President elect biden called the number grim while House Speaker nancy pelosi said that the report underscores the urgency of action. We had some not so good news on the jobs front that further necessitates our taking action to crush the virus, to open up the economy, to end up our schools. In order to do so, we must do know safely. Science based in our approach. Now b 12 Million People are set to see their Unemployment Benefits expire at the end of the Year Unless Congress does something about it republicans and democrats do agree they need to be extended, but there is debate over whether to add a 300 boost in the size of weekly payments now, pelosi did say there is new momentum toward getting a deal thanks in part to that 900 billion bipartisan framework and she called the pending approval of a vaccine as well as the election of biden as Game Changers that helped to break the log jam on capitol hill. Guys. We will see if Mitch Mcconnell likes it any more than he let on in recent daisy land ylan moi, very close by to me. Thank you. For more, Dana Peterson joins us we knew job growth was going to moderate in the month of november to what extent did it surprise you in how much it did so . Do you think that 900 billion is enough of a bandaid . Sure. We werent impactly surprised there was going to be slowing. Certainly you see the number of cases rising governments are starting local governments, state and local governments are putting forth new restrictions on mobility it is not surprising we saw a slowing in the number of pay rolls gained indeed when you look at the details you kind of see some of the trends that are going on there. Retail was down. Certainly that reflects the challenges of brick and Mortar Stores meanwhile, transportation and warehousing, lots of jobs growth there. Certainly reflecting the increase in online spending. So the key thing is, well, what happens toward the end of the year december, when we see these fiscal flips and households losing access to Unemployment Benefits as well as forbearances on paying rents and mortgages and Student Loans . I think any amount i am not in the position the say how much, but any amount should be will be beneficial to supporting businesses households, certainly as governments are keeping tabs on mobility you raised the trend of strong job growth in transportation and warehousing, some of the strength in ecommerce for instance. I wonder if you think that that is a secular shift in the hiring economy or if you think some of those trends when we look back several months from now will have been seasonal as Companies Just try to react to this unprecedented surge in demand based on where we really are but they really dont need those people when the economy starts to recover. Certainly you have Seasonal Hiring around the holidays thats not unusual in terms of the trends in retail that we are seeing, these are around even before the pandemic. If anything, the pandemic has accelerated these trends towards ecommerce, streaming, experiences that are virtual, over actually physically going to a mall or store to buy goods. But, certainly, services are still suffering. We saw that in the labor Market Report today i would say there is still quite a bit of upside in terms of manufacturing. In construction, we saw job gains in those areas, pmis, and Housing Starts and sales data portended those things happening. If anything, those are kind of the new trends in construction and manufacturing. But certainly not in retail. And i think that there is definitely going to be stickiness in terms of these trends even beyond the pandemic. With that in mind, dana, even when the vaccine is effectively rolled out, is there a risk that unemployment didnt rebound as quickly as everybody is hoping even if overalleconomic activity gets a boost from the vaccine might some of the changes in employment be permanent . Indeed first of all we have seen significant declines to the Unemployment Rate it is only in the recent months that we have seen a slowing in the pace we still expect the Unemployment Rate is going to fall over time, and certainly as the vaccine becomes widely available to most people however, you are going to have some trends that are just going to be permanent. Indeed, we had a lot of people who retired early amid the pandemic they are not going to jump back into work once it is over. They are retired certainly we have negative trends among women and also people are lower skills and also people with less education for many of those people they are falling out of the labor market and it may be more difficult for them to reenter once the pandemic is over. We anticipate some disand labor market scarring is going to happen but we are optimistic that certainly once there are a number of vaccines that the millions of people in the u. S. Can get their hands on that we will see a return to activity and that Services Consumption and activities will pick up again and we will see that followed by improvement in the labor market Dana Peterson, chief economist at the conference board, dana, we appreciate your perspective today. Coming up on closing bell, more on next weeks ipo crush. Airbnb, door dash, now a pet focused offering we will slain. Everything is bigger in texas, including potentially elon musks fortune if he carries through with his current plans. Thats next. You are watching closing bell on cnbc. 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. The teams been working around the clock. Wire, weve had to rethink our whole approach. Were going to give togetherness. Logistically, its been a nightmare. Im not sure its going to work. Itll work. I didnt know you were listening. Payment giant stripe is teaming up with three of the biggest Financial Companies on wall street to launch a new banking product. Kate rooney has the details. Hi wilf stripe is teaming up with goalman, citi, barclays and evolve to offer Bank Accounts to customers. This is a shift for wall street as these banks move behind the scenes and the latest in a string of big marriages. We had google and citi a few weeks ago and apple and goldman sachs, of course, with the apple card n. These deals, banks are becoming the service providers, they rely on the tech platforms for distribution as arc invest analyst Max Frederick put it they are quote becoming detached from customer interaction. They also command less leverage and a smaller slice of the economics. But it could end up meaning more deposits shopify will be the first to roll out this Banking Service to more than 6,000 merchants next year stripes cofounder and president calls it a win win he says stripes intent is to be shockingly effective at helping those banks acquire customers. Back to you. Kate, interesting i was reed reading into this, obviously, and the point he makes about it helping Customer Acquisition for the partner banks is probably where it starts but well see writ pivots to down the line. I think the banks evening those that are part of this partnership will be wary of that the other part is that it is just for merchants at the moment, for businesses, not for consumers that shopify for example, has many contacts with. Again, we will see where that pivots for now, this is really a threat to Business Banking units of the big banks, particularly if they dont have good tech integration for their existing customers with platforms like stripe which might not be many banks. Most of them are well integrated with Companies Like stripe but i am sure a lot of the banks will be watching this closely with a little bit of nerves. Absolutely. We have seen it with the regional banks a lot of them have gone to partner with fin techs pretty early evolved. This stripe announcement has been known as a partner for fin tech and they leaned on Companies Like square which works with the bank of utah and some of the Smaller Banks have made it part of their core business it is interesting seeing the more wellknown wall street names going in this direction. You have to wonder to what extent a lot of these banks want affiliation with stripe each at a small cost of their merchant business to get a chance at their ipo. It is a 100 billion valuation perhaps they sense around the corner there is going to be a liquidity event and they want to be the lead book runner for that. Thats true they could be getting in line for the ipo. There is reports of as much as 100 billion valuation for stripe if they want to build some sort of relationship thats definitely true. We have seen it even with google and citi another recent example i spoke to the head of that Consumer Bank when they announced the debit card and Checking Account with google they said this is the future they expect more of his partnerships and it is a win win. And they get more deposits and younger deposits, gen z who are more mobile friendly and mobile first. We have 42 minutes left in the session. Nicely higher here at the end of the eek. Record highs hit today plus, california could be facing another highprofile departure. We will be discussing that coming up. Elon musk has battled with the state many times in 2020 wherheou be clde heading well its there on screen. Where he could be heading next you can guess which state we are talking about. Should auld acquaintance be forgot and never brought to mind should auld acquaintance be forgot and Auld Lang Syne well take a cup of kindness yet for Auld Lang Syne next customer please. Welcome back teslas ceo elon musk is reportedly telling Close Friends associates that he plans to move from california to texas. This comes on the heels of musk expanding his operations in the Lone Star State as well as going head to head with californias lawmakers over covid19 restrictions for more, lets bring in cnbcs senior tech reporter ari levy. Is this about taxes . Business considerations . Perhaps a mix of both . Indicate lark all of the above is the answer i think you were looking for yeah, i think elon has had operations in texas for a long time hes has been going there for years. Spacexs operating out of there since 2003 there is a launch site several hours south of austin. And he has been at lager heads with the state of california really for the better part of the covid crisis because of the restrictions you add all of that up, plus the tax issues, there is no state income tax in texas. Californias is the highest in the country. And it all adds up to a logical move. Ari, one wonders whether this is the sign of more to come and whether the work from home culture it doesnt really apply to tells la, whether the work from home culture will cause mar businesses to make switches like that purely for the tax reasons. We have been hearing this for the last several months. You need only follow a number of vcs on twitter, some wellknown tech investor or techie is leaving california often they will site mri political reasons and there is certainly the Tax Implications the ability to work from home, and the realization that you can work from anywhere is opening up a lot of peoples eyes to the reality that you dont have to be in the bay area nor in california to get the work down. Ari, how real are these discussions or is this just venting to friends he has children in california, spacex headquartered outside of los angeles. It is not just tesla and not the fact that he has a cyber truck factory in texas he will still have to spend an amount of time in california is he buying real estate there when will this happen . Thats an interesting question he said this year he is selling all of husband houses and put multiple properties in california up for sale he said that in the context of i dont want to own anything, material possessions weigh me down you would follow on that he wouldnt be paying property taxes and wouldnt be owning anything anywhere. He could be in california up with week, texas the next and anywhere else he wants to be the next week if he is living out of hotels or renting apartments for tax purposes you have to have an official residence that currently is still in california the question of what does it mean to live somewhere is an interesting one that we explored a little bit in the story. Yeah, well, well see if he follows through with it. Of course he famously was the first Major Business man to put states against each other to get them to compete for his business perhaps they will be competing for his income tax now ari levy, we appreciate you bringing us that story today. Up next on closing bell, the clock is ticking for states to submit their vaccine plans to the federal government and time is about to run out details on that straight ahead. As we head to break heres a check on where bonds are yields have been ticking higher throughout the day highest levels in a little bit over a month well be right back. I felt like. I was just fighting an uphill battle in my career. So when i heard about the applied Digital Skills courses, im thinking i can become more marketable. You dont need to be a computer expert to be great at this. These are skills lots of people can learn. I feel hopeful about the future now. Today is the deadline for states to submit their vaccine plans to operation warp speed. Meg tirrell has the details on how that will go meg . Today mark as very big day thats the start of a huge week for the potential vaccine rollout here in the United States so today, as you just said, is the day they are calling micro plans are due from the states to direct where the first shipments of the vaccine will go once it gets cleared heres a lock at what the clearance schedule might look like we are going to get the briefing documents on tuesday of next week ahead of fdas meeting of out advisers about the Pfizer Biontech vaccine then on the 10th they meet, talks about the data, likely votes at the ends of the day and after that, the fda makes its decision it could be that night, the next day, the next week we dont know exactly when, but the states have to get ready for the potential vaccine shipments. The first shipment after the fdas go ahead is going to be enough for 3. 2 Million People in total. Of course these are twodose vaccines for all of those folks it would be 6. 4 million doses by the ends of the year, operation warp speed forecasts there will be enough for 20 million between pfizer and modernas vaccines together. Over the last couple of days we have been hearing more from states about their allocation plans and some have gone into quite a bit of detail, kentucky is one example their governor laying out their plan for the initial shipments here you can see how much each state will get in kentucky they will have 38,000 doses at the beginning. Two third of those they say are going to go to Long Term Care facilities and the rest of them are going to 11 different hospitals. The governor outlining which hops they are here so states are getting ready for this and counties and local Health Departments are also starting to get ready for the vaccine with Nassau County today rolling out its first vaccine Public Service announce men. They are getting ready for the general public, to try to get those pokes ready in a few months to get vaccinated using a rosie the riveter imang here we can do it nassau. At first, Health Care Providers and Long Term Care facilities. And then everyone else. This program is like a battleship it is so massive i wonder how quickly it will be able to turn if the trends in the virus change obviously the first surge in the virus was in the northeast then the south and the sun belt now across the midwest if there is a spike somewhere unexpected a month from now, how quickly can operation warp speed divert supply to that location to get more there . Is that in the discussion . S that an interesting question right now they are allocating based on population of the states and the number of people they have over the age of 18 but governor evers in wisconsin actually is lobbying the Health Department to try to get more priority and more allocation for wisconsin given how bad the outbreak is in that state right now. There is obvious questions about that and talking about that, but right now they are just going on a per capita basis state by state. Meg, quickly, 20 million bows by the end of the year my apologies, meg we are going to join president elect biden, who is now taking questions what are the biggest one of the biggest tasks you will have when you enter office is distributing the vaccine your team has started to meet with the Trump Administration to learn of their plans as you are set to inherit this task are you satisfied with the current plans under way for distributing that vaccine . Do you feel that the federal government is doing enough at this point and what steps do you think need to be taken between now and when the first vaccines go out . Well, there is a lot more that has to be done. They clued us in on their planning, how they plan to distribute the actual vaccine to the various states but there is no detailed plan that we have seen anyway as to how you get the vaccine out of a container into an injection syringe, into somebodys arm and it is going to be very difficult for that to be done. It is a very expensive proposition. For example, you know, we agree with their priorities that they have laid out so far i do at least. And my team is looking at it of dealing with First Responders and those in Nursing Homes and in home care the first people on the list but we also have to realize that we are in a situation where there has to be some equity in the way this is distributed. And that requires for example, right now we are in a situation where we have, you know, the leading cause of death for all americans this week is covid19 of blacks and latinos, are three times as likely to die if they get covid19 so the communities of color, it is a mass casualty event so we have got to figure out how we make sure we get the vaccine to those communities delivering large amounts of the vaccine to the walmarts and other major drug chains doesnt get you into a lot of these neighbors and doesnt guarantee that it gets around. There is a lot of work to do the equity side this has to be an important part of distribution in addition to that, the cost of actually letting the serum into an injection, into a needle into somebodys arm cost as lot of money. It takes a lot of people it takes a lot of folks to be able to get that done. And we have to have a much better way than they have seen thus far as to how its distributed. In some states, like the governor in utah said, just deliver to it the capital, i can take care of it in our conversations. That could be tray but in large states bike california, texas, arizona, florida, et cetera, it is not that easy. There has to be an overall plan. Thats what we are working on right now. Thats why i asked dr. Fauci to stay on and to be my chief adviser on this issue. But also to be part of the covid team on your cabinet, you are facing a lot of pressure to add more diversity to your administration you have civil Rights Groups and lawmakers pushing you to do this, to make sure that you make good on your promise and you look at your cabinet announcements so far and they have included some diverse figures. I specifically want to hone in on the big for when it comes to secretary of state and treasury you have nominated a white man and a white woman. Looking at attorney general and the department of defense would you commit to nominating a person of color for those positions . Look, it is each one of these groups jobs to push their leaders to make sure there is greater diversity. I can promise you when this is all said and done you see everyone that i have announced and it is going to be in the next several weeks we will have it all out there you are going to see significant diversity. I am not going to tell you now exactly what i am doing in any department but i promise it will be the singest most diverse cabinet based on race, color, based on gender thats ever existed in the United States of america. So no commitment on those spots. A commitment of what i just said it will be the most diverse cabinet in the main spots in both the white house and cabinet positions. Thank you thank you mr. President elect. You just said a couple of minutes ago that there is no time to waste when itcomes to economic stimulus. But democrats and republicans have been in a stalemate for several months as they have been negotiating and trying to talk about what kind of stimulus to put together you were elected by more than 80 Million People to try to break that log jam can you talk about specifically what you have done over these past several weeks the actually work with democrats and republicans, speaking to congressional leaders to get them to agree on a stimulus package in a package. And what do you say to senator sanders on the left flank of yourparty who have come out against the Stimulus Program already, they have said that this 900 billion deal is not good enough. It would be stupid for me to tell what you i did. I wouldnt be able to do it again. I told you i was confident we will get a bipartisan agreement on this stuff. I think we will, not just on this package but i think beyond the last thing i am going to do is tell you strategically how i go about this. I remember i used to get asked the same thing when i was putting to the significant deals between democrats and republicans when i was a senator and again as Vice President. It is not a smart thing. It is like me asking you tell me how you got your sources and how did you get the sources you got in order to get that story it would be ridiculous for you to tell me or your colleagues how you did it all i can say is im confident there are a sufficient number of democrats and republicans in the United States senate, along with significant votes coming out of the house of representatives to put together a serious package that will keep us from going off the edge here, provide the kind of resources that are needed immediately. It is not going to satisfy everybody. But the option is that you insist on everything, we are likely to get nothing on both sides. I think they are on their way to being able to come up with a package that meets the basic immediate needs that we have but i made it real clear its just a down payment this is not the end of the deal. So i have been relatively good at negotiating over my career because i never, number one, reveal something somebody doesnt want me to in the deal and number two, because i always keep my word. There are a number of progressives, including senator sanders who have criticized this deal in part because it does not include the 1200 checks that were in the last deal. What do you say about that they say the American People who are hurting maybe not the Small Businesses but everyday families, they dont have anything in this deal, they are not getting any stimulus thats in this 900 billion. I am not going to comment on the specific details the whole purpose of this is, we have got the make sure people arent knothrown out of their apartments, lose their holes, they have Unemployment Insurance they can continue to feed their families on as we grow back the economy. Be in a position we provide help to localities so they are not laying off school teachers, firefighters, et cetera, First Responders and to make sure that we are in the position that we are able to generate the kind of growth that is a consequent of this by allowing it costs a lot of money to keep schools and businesses open on the covid side of the equation there are pieces on each ends of it if i was writing it. Frankly, the heroes act that the house passed, thats what i would support. You know, this is a democracy, and there are you have got find a sweet spot where you have enough people willing to move in a direction that gets us a long way down the road but suspect the whole answer. Thank you thank you thank you mr. President elect. You are describing this compromise bill as a down payment, that you will Push Congress to do more once you are in office. But this bill is already more than Republican Leaders want to spend. What if this isnt a down payment . What if this little is it . What are your options then to get americans additional relief . I never start off thinking that way i always starting believing we can get it done. We will get it done. But it has been more than sick months this fight has been going on Mitch Mcconnell still hasnt even signed off yet on this compromise bill. What makes you so confident that you will be able to get republicans to go big once you are in office . Well, because the country is going to be in dire, dire, dire straits if they dont. Have you reached out to leader mcconnell have the two of you spoken yet we will be in dire trouble if we dent get cooperation. I believe we will. Thank you thank you mr. President elect. You noted today that one in six renters are behind in their rent, millions of americans remain unemployed. You say the situation is urgent. When you come into office, you expect to pass executive orders dealing with those specific issues, and losalso, do you int to pass trillions of dollars in aid. Is that what you have in mind when you say we have to go big or are we looking at billions of dollars . We are looking at hundreds of billions of dollars. And look, again, i have learned after hanging around in this business for a while, the last thing you do before you begin a negotiation is lay down a drop dead marker. If it is not this, i am not going to talk to you i think theres a lot we can get done and i think people are going to see the overwhelming necessity, which is going to start to happen there is a lot of folks who represent republican districts are going to find their republican neighbors are in real trouble as things get worse. They are going the find that there is an overwhelming need as these numbers skyrocket. You remember my saying that i believe the experts we had had at least another 250 dead before the end of the year. And they went oh, no no guess what look what is happening its going to get much worse its going to get much worse and so i believe that there are enough republicans who will join enough democrats in the United States senate to get a majority along with the house to get it done but well see. Well see. This is a step at a time. And on executive orders i would issue executive orders that are totally within the purview of an executive. But one of the things i dont like is i like i dont like people saying that i can, by executive order do the following things, which there is no basis this the constitution to suggest it can be done. So there are certain things i can do i can issue executive orders pulling back some of the executive orders that trump put forward. But i cant issue an executive order saying we are going to spend x billion dollars on this issue without getting a congress proepts and is responsible for distributing that money. Quickly on the coronavirus vaccine, you talked about getting it into american and vulnerable populations you said yourself that you are willing to get the vaccine publicly to get people to feel safe but there are people already telling me, well, president elect biden has Good Health Care. If there is some complications he might have Better Health care than me. Africanamericans around the country. What more can you do to convince people that the vaccine is safe for them does that mean you will lean on existing members of the Coronavirus Task force i know you committed to keeping dr. Fauci. Dr. Birx or anyone else you are leaning on that you are looking to convince people. There are a lot of people i am leaning on to convince people in the task force. The task force will be expanded with the appropriate people. And actions of president s matter and i am going to Say Something that i think that Africanamerican Community and Latino Community have known. I have never misrepresented anything to them and that as, if you all keep pointing out, i am the oldest president ever elected, although im actually only 47 but all kidding aside, i think that my taking the vaccine and people seeing me take that vaccine is going to give some confidence and but, you know, i i said early on you may remember i think you may have asked me the question i may be mistaken, but i said early on that i think one of the things that bothered me the most is by the wild assertions the administration is making about how this was going to go away and inject bleach and all those kinds of things, it was diminishing confidence across the board. And the American People overall, but particularly this administration with the africanamerican and Latino Community. What i hear from my friends in the community, not but blocks from as we stand is that we are not going to be the guinea pigs. We are not going to be the guinea pigs. Well, the fact of the matter is that they wont be you are going to see tens of millions of americans taking the vaccine. And you are going to see the president of the United States and three of the four living former president s doing it publicly as well its all about and, look, its going to take some effort to rebuild confidence in science because it has been so diminished in this administration thus far. So but i will and by the way, in the meantime, i have got to make sure that the vaccine is both free and available and that any followup on the vaccine is free and available that relates to any Health Complications from it so there is ways we can deal with some of these issues. Biden has Good Health Care, therefore but i dont have Good Health Care thats another thing we are working on from day one. I have been working on it at this moment. So my hope is that we can instill reinstill some confidence and be able to believe the president of the United States when he or she speaks thank you thank you very much thank you, mr. President elect. A lot of people are wondering what your gnawingvation going to look like considering so am i. Considering we are still in the middle of the coronavirus pandemic i would like to hear what you envision for the inauguration. Do you expect a scaledown event . Are you expecting to take the oath on the west lawn of the capital . Will there be a parade will there be balls . What are you envisioning for your inauguration . First and foremost we are going to follow the recommendation of the science and the experts on keeping people safe. It is highly unlikely there will be a Million People on the mall going all the way down the memorial i think we will see we are in discussion with the house leadership and the Senate Leadership as to what they plan for the inauguration, particularly those 200,000 spots they control but i think you are going to see something thats closer to what the convention was like than typical inauguration first and foremost, my objective is to keep america safe but still allow people to celebrate, to celebrate and see one another celebrating. So we are in consultation my team is in consultation with folks who helped us put on the convention as well as with our colleagues, republican and democratic colleagues in charge of the inauguration. My guess is there probably will not be a gigantic inaugural parade down pennsylvania avenue. But my guess is you will see a lot of virtual activity in states all across america engaging even more people than before but thats in train now. And im not in a position to give you an example of exactly, you know, what it will look like i but i promise you, it will be available either virtually or in person for many and my guess is there will still be some will still be a platform ceremony but i dont know exactly know how it is going to work out. The key is keeping people safe i cant do a super version of the president s announcement in the rose garden nationwide it is going to have to be more imaginative. Like i said, i think the convention we put on really open up avenues that we never thought existed. And i doubt there will be another Democratic Convention thats straight like it has always been and that we will include more people. People want to celebrate people want to be able to say we have passed the baton, we are moving on, democracy functions i wish i could tell you more but as the decisions are being made they will be announced. I wanted to ask you about your relationship with senator mcconnell. You have a long relationship of obviously working together on various deals. Have you talked to him since the election and given the partisan nature of congress right now how do you convince him that it is in americas best interest to work with you Going Forward i dont think i have to convince him of that he knows me. He knows im as straight as an arrow when i negotiate he knows i keep commitments, and i never attempt to embarrass the opposition there are some things that i think are just ready for the kind of compromise that democrats and republicans are prepared to engage in absent the present president of the United Statess attitudes on some of these issues infrastructure dealing with Health Issues dealing with the fight against cancer dealing with education i think there is a number of things as i said before, weve got to take the vitriol out of politics. I know theres a lot of people on both sides who want to continue to go after and punish the opposition i get that i get the fact that an awful lot of americans are disappointed i was elected president. Fortunately, there is seven million more that were happy than disappointed. But i get that and there is a lot of democrats who are angry and want to strike back at republicans. But ive said from the beginning, and i think i have conducted myself this way throughout my career i learned that early lesson. Its always appropriate to question mother man or womans judgment but never their motive. Once you question their motive, then in fact, there is no way to get to go. You are in the pocket of the cement industry, lets do a deal on highways. No possibility so when i have dealt with Mitch Mcconnell in the past as the Vice President or as a senator, we have not engaged in that activity doesnt mean we can get to an agreement. I am not asking anything to abandon their principles but i do think it makes no sense to engage in vitriolein trying to get to a place where i cant believe a majority of the republicans dont understand we need a new infrastructure in america. If there was nothing to do with jobs or a great economy, there is too many bridges that are going to collapse, too many roads in disrepair, too Many Republican states that every time it floods, it floods out their water systems, they are polluted these are common problems. And i am confident it is going to be hard, but i am confident we can get to an agreement on a number of things. Thank you all very much. Is that it thank you. Appreciate it. Thank you. President elect joe biden speaking there, addressing that he wants the vaccine to be rolled out equitably, free and available to all, including any necessary fill ups as well saying once it is approved he will have it and hoit would instill confidence and he said stimulus, ifit was not passed, this would be dire, dire straits Kayla Tausche cohosting today not clear whether he spoke with Mitch Mcconnell yet and didnt give details on why he believed the stimulus bills would be passed in the short or medium term. One would think if he and mcconnell hadnt spoken he would say so in the days following the election calls were made what is astonishing to me, how many times the president elect was asked about his relationship with mcconnell multiple times biden says that he holds his cards close to the vest he does not attempt to embarrass the opposition he doesnt traffic in secrets about how he negotiates and says that mcconnell knows he is straight as an arrow when he negotiates and believes they will get a deal. Perhaps there is a gentlemans agreement behind the scenes he is not willing to share with us. Certainly the markets believed for days if not weeks that his election means there will be some sort of bipartisan agreement on this front. Nonetheless we are at session highs as we approach the close five minutes or so left in the session. Up. 8 on the s p. Mike santoli is now withis Kourtney Gibson from luke capital joins us as well good afternoon to you. Mike i will start with you. 8 or so higher on the s p rounding off a very strong week and i guess a strong start to a new month after a blowout november. It has been an incredibly strong five weeks, going back to october 30th just before the election of it is an everybody gets a trophy market almost all stocks participating. It is broad and inclusive. Every s p category subgroup is above its trend line it is hard to find fault with the behavior of the market except how far it has come in a short distance of time very, very low corporate borrowing rates are supporting this infrastructure of a cash rich corporate sector and pent up demandette both for equity and goods. The question is are people getting too happy as we stalk 2700 on the s p and 1 on the test reyields. Kourtney, is it surprising to you to see yields moving in an democrat a month ago as they were approaching the 1 on the tenyear there was the belief stocks wouldnt continue marching higher. What do you think the outlook is. It is good to see you again today. Thank you for having me on again, as always i think it is interesting when we are seeing here we are saying, as mike put it a breath in the market which is what you want to see. You are seeing yields rise, which means financials are going to do better should they run in tandem, thats a debate but ultimately thats what is happening yields going up means there is a glimmer of hope as relates to what is happening in the mikts, in the economy Going Forward thats a pull forward. I want to be very clear. Obviously we saw today what things look like but assuming we can get a stimulus deal done, assuming we can get a vaccine broadly distributed and get people back out and moving, our world will be a better place at this time. I think we just heard what focus and class looks like coming out of the white house and i am just incredibly encouraged as we move forward. Mike, small caps today, 2. 3 higher now, banks and oil plays into that at the top level but unbelievable run of late. Banks, oil, as well as just very, very generous credit markets. You know, it is generally more Leverage Bank financing on small caps really it is risk appetites. It is the dollar going down on the Global Market and all other kind of risk assets going up small caps multiyear laggards are on the whip end of that process. As i said earlier, semiconductors stretching higher, accelerating to the up side as well as things like brokerage stocks and all the things you look at to say are people getting more confident and aggressive yes, thats absolutely whats going on the line between confidence and overconfidence is one we will be debating probably for a while. All right we know what time it is. Two minutes to go in the trading day n the trading week for ma, mike, take us inside the market internals what do you see today . Absolutely kayla. At the breadth of the market advancing versus declining stats, it looks very, very strong 3. 5 billion to the upside against 1 billion to the downside it has been consistent, the majority of stocks rising with the everyall tide. In terms of the aggressive nature of the leadership, take a look at the high beta stocks in the s p. The more aiest guessive volatile cyclical stocks. Up 5 on the week. Low volatility the steadier staples and all of that this is a risk on tone the volatility index, you know we havent closed under 20 until rate before the covid crash began which was late february, february 21st i believe. We tickled the 20 area a couple of times in the last week or so. It has been stubborn in going down but it is also a sign of normalizing and refreshed liquidity in the capital markets. One minute left right at the session highs up. Of the . Dow up. 75 . Nasdaq up 1 russel up as well. Energy is the best performing sector up 5. 4 . Wow, very Strong Performance from energy, particularly in the last hour or show. Materials follows. But up only 2 relative to that move in Energy Utilities the worst performing sector, the only one thats meaningfully lower down 1 the dollar has been weak during the course of the last five trading days flat today down 1. 1 fundraise for the week. Oil is up today. Gold flat today but up nearly 3 yields have risen,. 97 on the tenyear as we close out the week at the bell, s p and dow up. 8, nasdaq up. 7 welcome to closing belling, i am Kayla Tausche in for sara eisen along with wilfred frost and mike santoli cnbc markets commentator the s p closing up 32. The nasdaq up 87 after a hat trick of intraday records for the markets, we are closing near session highs. We will see where they settled to see where we have ended the week the russell 2000 for its part fairing the best of all the averages up 2. 33 up 44 points on the day coming up on closing bell, the ceo of stock x on the hot global sneaker Retail Market and the potential timetable for an ipo Kourtney Gibson is still with us so is peter gook var from gleekly advisory who joins the conversation we will get our first comment from mike santoli after the close. Mike, what are the trends that stood out to you it seems like there has been a rotation from growth into value today. Wonder how long that can last . It has been multiple weeks on that kayla in terms of more cyclical and cheaper stocks working. You have a lot of things i think acting as tail winds obviously the seasonal strength in the Fourth Quarter into december is prevailing right now. People are riding that you also have a sense it was a disappointment on the headlines jobs number without a doubt relative to forecasts but it was better than feared. Every bit of Economic News is being taken as well. We know the worst likely we are going to see is november and december data from here on in and out. If thats as bad as it gets as we all hope it is then we dont have to worry about it because we have perceived certainty in an acceleration of the economy because the vaccine is only months away. At an unusual situation for the market to be in. It is a welling up of the confidence in the market and a willingness to look beyond the negative numbers peter, to what extent has the market played catchup in the last week or last month such that it is now priced in and that yields rising close to 1 on the tenyear have done enough for now. I think this is only the beginning of the pricing it in one of the interesting aspects of the week also to the point about inflation was the tenyear inflation break even was up 15 basis points this week thats higher than the rise in the nominal tenyear that means that the rise in the nominal tenyear was more in response to risingations rathere growth side. While i am optimistic on the growth side in 2021 with the vaccine. Whats going to come with it is further acceleration in inflation. We saw it this week, pmis in the u. S. And europe and asia a lot were talking about pricing pressures, a lot on supply side. Next year with the supply side next year with the vaccine we are going to see an up crease on the demand side. It is going to come together and present a challenge for the Central Banks and how they are going to face this. Peter, we know that the market is a forwardlooking mechanism. But it just it never ceases to amaze me that at a time like this when you have the director of the. Caller saying the next couple of months will be the most Difficult Public Health situation in the nations history. You have this cliff of economic programs expiring at the end of this month yes, the market is pricing in the certainty of a vaccine and some Economic Growth down the line but is there ever going to be a point in the next three to eight weeks where it gets some religion about where the virus is at this moment. While you are right that the next few months are going to be tough from a health perspective, the market is really looking to a brighter 2021, particularly the second half. And i think thats why also you have seen a rise in Inflation Expectations and rates and as difficult as it is to think about what we have right in front of us the market is really again looking at the vaccine and all the good that comes with that. Kourtney, are you fearful of rates rising further and what that might do to simple p valuations of certain stocks in the market next year not at all. I actually am not. I mean they are not going to get to levels that are disturbing. Candidly on the front end of the curve the fed already said they are going to keep rates low through 2023 we really, really should be focused on what are companies doing right now to continue to grow, to obviously stop the bleeding in areas unchuchtly like with leisure and travel, what are these companies doing right now to make sure they are staying healthy in order to be ready on the back half of next year to get back to it some level of normalcy once things come back around i think it is imperative obviously that we do get the stimulus, some level of a package done i am much more encouraged every day as we move forward that that does happen, even if it is smaller than what one might want, we have to stop kinds of right now what could be an incredibly dire situation and we have to continue to move as it relates to getting that vaccine more broadly distributed in order the make sure that these valuations on the back half of next year are warranted, right so i think it is worthwhile, there are going to be companies that are going to succeed. Those are the companies that have been making moves right now to prepare for what the future looks like. Plenty of of records for the markets. Bob pisani has a breakdown of it all for us the good news wilf is december is looking a lot like november terms of the breadth of the rally. Its pretty broad. There are mostly winners a few laggards but not in a dramatic way. Lets look at the sectors. Just like november, energy and bank, leadership groups, the cycle, slash, value, what you want to call that group. Technology is also continuing to do well. There is the growth story. Continuing to do well. And defensive groups like Consumer Staples and some of the general consumer names have generally been lagging but not in a dramatic way. They are just not moving up as much overall pretty good weeks overall here as far as the dow laggards i find it very interesting this week that consumer names are topping out a little bit, home depot and mcdonalds for example, they topped out a while ago. It has been a few months they really havent been doing much at all. Proctor and gamble, same story walmart had a very good november but this is sort of the first weakness we have seen in a while at walmart consumer names weakness bears some watching. In terms of the major trends as i mentioned december looking a lot like november. Generically small caps are continuing to outperform large cap stocks value is continuing to outperform growth and the qua weight s p is continuing to outperform the market cap weighting s p meaning the rally is fairly broad overall. It is a very strange situation wilf and kayla no one wants to sell any of the reopening stuff out there because nobody wants to miss the reopening story even though a lot of this already seems priced in nobody wants to Sell Technology stocks because everybody thinks the biggest growth in 2021 is going to come in the biggest growth area, Technology Stocks we are in a situation where things are overbought, 22 times 2021 earnings. But nobody wants to sell it is kind of goldilocks but it is also a little bit concerning with the valuation levels that we have got right now. Guys back to you. Bob pisani, thanks for that mike, we always debate whether stimulus is priced in and expected or not. Putting aside what it might do to the economy if it does come through, does it put more cash in peoples hands that might then find its way into stocks . What are cash levels like at the moment i dont know that the kind of stimulus we are talking about is likely to be the sort that we got back early this year where you had 1200 going across the people to people whether they needed it or not, whether they were unemployed or not had this spare money lying around and it did make its way into stocks probably thats not a big swing factor in general i think people have already become fully invested. If you look at the household factor of equities all of this looks high people are generally involved, even if they havent been for very long. At this point the appreciation of the market has made themselves if they have any holdings i dont think we are right now in a position of saying we are out of marginal buyers but i dont think stimulus is going to be the thing thats going to be the mover on that front. It is much more about the willingness to hold a market thats already looking stretched going into a new year and therefore kind of relieve any selling pressure you might otherwise see. Kourtney, do you think there is going to be an opportunity in the next few weeks where it would present a Good Opportunity to sell some of those names that bob mentioned that people have been too scared to sell so far because they dont want to miss some of those rallies that could be around the bend in the spring. We cover institutional investors, hedge funds, large Asset Managers we were better to buy today even two to one so even with the assumption or the conversation around kind of valuations being stretched, people are nervous about missing the rebound, if you will, or missing kind of the upside potential. And thats okay. I think this is where, though, a stock pickers market really does shine right . So you can say that valuations are stretched in one name or another. People talked about square, its valuations are stretch we are talking about the digitization of society at this point. You have to decide is a docusign something that is just a stayathome stock or is it something that has transformed the way business is going to be conducted Going Forward. It really is digging back into the fundamentals coupled with the macro backdrop and thats how you are going to pick the best stocks in your portfolio. Our clients are absolutely doing that their portfolios are seeing the benefits in the short run and clearly some of them are positioning for the long run as well. Peter, i wanted to ask you about your view on gold. It is a two part question. One is whether the fundamentals are there to support the case for gold in a sort of typical scenario and two, whether each if thats the case, that bitcoin has sort of picked up a lot of the wouldbe dpand for gold such that it wouldnt perform even if we see Inflation Expectations spike significantly. I am bullish on gold and silver and the entire commodity space. I think the debate of bitcoin or gold shouldnt be a debate they can both go up at the same time they both have limited supply. They both benefit from not being a fiat currency and not being printed by banks gold only goes up 1 to 2 a year thats not supply growth and bitcoin has a limited supply, up to 21 million coins i think they can both compliment each other i will say than eight an asset that has been around for they will both benefit from not just the rise in inflation and also the rise in rates and also the drop in the dollar, where the dollar index is at the lowest level in a few years into that will be the final word for now kourtney, peter, thank you both for joining us have a great weekend. You too. Thanks kayla you too. Coming up, jobs jolt we will discuss the latest economic warnings signs coming out of the economy and how esenelt n and his team are hoping to avoid more fallout. We are back in 90 seconds. I felt like. I was just fighting an uphill battle in my career. So when i heard about the applied Digital Skills courses, im thinking i can become more marketable. You dont need to be a computer expert to be great at this. These are skills lots of people can learn. I feel hopeful about the future now. I feel hopeful about the future now. Should auld acquaintance be forgot and never brought to mind should auld acquaintance be forgot and Auld Lang Syne well take a cup of kindness yet for Auld Lang Syne next customer please. Welcome back november jobs data coming in weaker than expected as u. S. Employment Growth Continues to slow and americans wait for progress on a new stimulus deal. President elect biden just addressing this last hour. This situation is urgent. If we dont act now, the future will be very bleak americans need help, and they need it now. And they need more to come early next year. But i must tell you, i am encouraged by the diplomat efforts in the senate around 900 billion package for relief. It is a bipartisan effort. Meanwhile, National Economic counsellor larry kudlow weighing in on economic efforts this morning on squawk on the street. A targeted assistance plan from congress would be very helpful. I know the parameters seem to be closing. I know matter in Mitch Mcconnell is talking to House Speaker pelosi senator mcconnell is more optimistic than he has been. There is no deal yet the numbers are getting closer there are some policy differences. Joining us now to discuss, andrew ohlman, and ben harris the former Economic Advisory to president elect. Gentlemen, we heard from each of our former bosses. Now we will hear from you. Ben, i will give you the first question because it seems that both sides of the aisle now agree there is an urgent need for stimulus perhaps interestingly from the president elect last hour he was extremely koi about his interactions with majority leader Mitch Mcconnell but repeatedly said he is encouraged do you read that to mean that perhaps they have spoken and hes gotten some sort of signal from mcconnell that he is willing to move forward. I cant comment on that i just i dont know i think when we look at the current economy and whats needed and the potential harm of the next two quarters. It is clear on both sides of the isles. The statements from larry kudlow and the president elect said it all, which is we are looking at an awful two quarters. 20 Million People on unemployment, 12 million to fall off by the end of the year if we dont get more stimulus. It is clear what the needs are and thats a bipartisan issue right now. The appetite for compromise is not limitless now president elect has said not only does he want to advocate for the diplomat stimulus package but they are going to need more after january 20th i am wondering how much that shortens the agenda and how much the republicans will be willing to advance more of his priorities here. I think this is a one step at a time lets work on this first and len look at next year. There appears to be a bipartisan deal coming together i said if you look at both sides and what they want out of the stimulus deal it is really an issue of degree and not of kind. Most of the key programs they both support as you have seen this group of moderates come together with the compromise package it shows there is not a lot of daylight now now that we get the numbers down to whats more practical. I think there is a real chance for the more targeted approach and passing it by the end of the year. Of course if Incoming Administration will also need support from republicans on nominations. We got the rollout of the bold faced names on the Economic Team this week. Andrew, i am curious how you read the members of the team, what you think it signals about what the Incoming Administration will do, or when it comes to what the Trump Administration did, what it will undo. Well, i think the nominees so far are certainly who are good, respected people who, you know, i think view the economy the same way, the Economic Policy the same way that joe biden does, which is appropriate the one piece i would note is the so far kind of look of real World Business experience. Historically president s as part of the economic cabinet have somebody who has actually had to make a payroll certainly it is important to have academics and former government experience as part of the team thats the piece i look for on future appointments, is whether or not they have real world experience as part of the Economic Team. We can nts understand why the need for stimulus is needed in the shortterm with the covid case count growing as it has been if gdp is 3 or 4 lower than 2019 should that be applauded if places like the uk will be down double digit or high Single Digits is it actually an impressive handling of the economy all Things Considered in 2020 . No, i dont think that 2020 could be declared a success by anyones metric. You know, i understand it was worse in other places, but it was also better in other countries. We saw caseloads that were lower. Many other countries experiencing much less economic disruption when we do a postmortem on 2020 i think we will find we werent prepared for the pandemic, we didnt get the leadership we need and the hardship was far worse than it had to be. So we are going learn a lot of lessons from having handled this. Andrew, whats your take on that question . And with it, how important was the stimulus bill that of course all parts of congress came together i think that historians will look back on this period, you know, as time goes by and partisan views subside and really look at the economic response here as a textbook example of how to do it. If you look at the c. A. R. E. S. Act that was passed literally within six to four weeks of the pandemic occurring, the actions by the federal reserve, which were prompt and swift. Theyened kept Financial Markets opening and the fact that the economy entered into this pandemic at a time when it was at kind of record performance. We had 3 Economic Growth, 3 unemployment, rising wages for all demographics you know, the economy entered into this fortunately as strong as it could be we would be in much dire straits had the economy been limping along at under 1 growth that we had in the three years prior to the pandemic, gotten the Economic Growth rate up. Historians i think will look back on this and say we were fortunate that we had good economic policies to get the Economic Growth rate up before the pams pandemic and that the response was swift and prompt and diesive once the pandemic hit on the economy side. Regardless of whose fault it is that the economy is where it is right now, ben, the time question goes to you it has become an increasingly tall order for president elect joe biden to restore unemployment. That would take 10 million additional jobs and return the economy not just back to growth but to get out of the shackels of the 2 growth cycle we have seen for the last couple years we have constantly heard from Corporate Executives that higher taxes, bigger social programs, increased regulations they dont believe are the way to get there. How do you respond to that we are really in a twostep solution right now the first is this 908 billion stimulus package that puts in place some of the critical strategy weiss need for getting out of this. Once we get past the first two quarters of next year and once the vaccine is distributed we need to get out of the shackels of the 2 annual growth. Thats bidens build back better plan that he laid out during the campaign you can look at the moodys analysis coming out of that. It said we will get to 4. Annual growth thats investment in infrastructure, training and public investments this we know will help the economy. We thank you both to be here to have this debate for us as we figure out where the economy will go from here. Andrew, ben, both of you have a great weekend. We appreciate it. Thank you. Thank you. Up next, mike santoli will head to the telestrator with a look at what history says could be in store for the market next year. And pirks pos next week, airbnb and going public next week and as a reminder, you can always watch us live and on the go on the cnbc app its down to the wire, the teams been working around the clock. Weve had to rethink our whole approach. Were going to give togetherness. Logistically, its been a nightmare. Im not sure its going to work. Itll work. I didnt know you were listening. Welcome back lets have a look at how we finished on wall street. As you can see a ramp up in the final half an hour of trade. Final five minutes of trade, up. 8 record close force the s p and nasdaq, too. 7 to. 9 the russel led the charge today, up 2. 4 . Kayla. All right lets send it over to mike santoli for his second dashboard of the day mike, what do you have now an hour and a half ago i pointed out the last two post election years for the markets were like stock nirvana. They were meltup years lets look at the broader historical tendencies. This is from Renaissance Macro it looks at the forward three month returns. What you can expect in the s p the next three months. We are right here. Before the election the green line is the election it looked like a decent time to add risks. The magnitudes are going to be way off. It is more about the cadence here looks like around the turn of the year nothing so great necessarily in terms of the First Quarter of next year thats not necessarily typically a great time for returns once you get into the spring around march 31st, it looks like you have more of a tail wind just purely on a seasonal basis in election and post election years. We can incorporate other cycles here ned davis does this cycle composite. It includes the one year seasonal pattern and the election cycle, post Election School and the years ending in one. Years ending in one havent been good going back multiple decades. And again it shows you nothing special going on at the beginning of that year it seems like things are setting up for a little bit of perhaps a giveback or a hangover or a treading water type phase if all of these patterns have anything to them which of course they are just context, not prediction guys all right, mike santoli with the highways forical check there. For more of micros Market Analysis go to cnbc pro. His commentary is post there had every day. Definitely check it out. Up next, sneakers street ware and the secondhand market stockx is hitting records this year even despite Covid Concerns we will speak with the ceo thats next. Did you know that geicos whole 15 minutes thing. That came from me. Really. My first idea was in one quarter of an hour, your savings will tower. Over you. Figuratively speaking. But thats not catchy, is it . Thats not going to swim about in your brain. So i thought, what about. 15 minutes. 15 percent. Serendipity. 15 minutes could save you 15 or more on car insurance. Oh yeah, you going to place it . Not until im sure. Why dont you call Td Ameritrade for a strategy gut check . Whats that . You run it by an expert, you talk about the risk and potential profit and loss. Couldve used that before i hired my interior decorator. Voila maybe a couple throw pillows would help. Get a strategy gut check from our trade desk. New projects means you need to hire. Gers. I need indeed. Indeed you do. The moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. Claim your seventy five dollar credit, when you post your first job at indeed. Com home. Welcome back time for a cnbc news update with leslie picker. Hey, wilf, heres your cnbc news update at this hour in california, six San Francisco bay area counties are implementing a stayathome order to prevent local hospitals from become overwhelmed. Officials say they cannot wait for stateimposed restrictions tied to icu bed viability. Officials are looking at mid january to start the nhl season. Thats weeks later than had been hoped for. Tsn also reporting the season will be shortened to 56 or 52 games. And a Texas High School Football Team has been thrown out of the playoffs after a player tackled a referee the player also has been charged with assault the player had been ejected from the game for a late hit and unsportsmanlike conduct. Back over to you, kayla. Embarcadero i will say unsportsman like thank you, leslie. Up next, record breaking sales unlike marketplace, stockx seeing mass iive numbers. Scott cutler will join us to discuss after thebreak closing bell will be right back this is decision tech. Find a stock based on your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. But before we sign i gotta ask. Sure, anything. We searched you online and maybe you can explain this . I cant believe that garbage is still coming in. That is so false frustrated with your Online Search results . Call reputation defender today to join tens of thousands whove improved their online reputation. Get your free reputation report card at reputationdefender. Com or call 18778668555. [whats this . ] oh, are we kicking karly out . We live with at t. It was a lapse in judgment. At t, we called this house meeting because you advertise gigspeed internet, but we cant sign up for that here. Yeah, but im just like warming up to those speeds. Youve lived here two years. The personal attacks arent helping, karly. Dont you have like a hot pilates class to get to or something . [ muffled scream ] stop living with at t. Xfinity can deliver gig to the most homes. On line sales reaching record levels this holiday season, despite or perhaps due to the pandemic according to adobe analytics. Billion was spent on black friday 21. 6 increase from 2019 while 10. 8 billion was spent on cyber monday a 15. 1 jump from last year one winner of this has been stockx the retale sale platform whose products include sneakers and street wear who saw record sales over the cyber week. Joining us, stockxs ceo scott cutler down to all the ecommerce growth from bricks and more darr growth versus the resale platform that you in particular have to offer . Taking a step back, we think its really driven by a necksgeneration consumer. If you look at gen z, gen z 18 to 23 is fuelling the remergence of the resale market largely because they are seeking exclusive collaborations with rare, hard to find items so they are turning not only to on line channels but resale markets like ours to drive this. It is the Gen Z Consumer driving the consumption and direction of a lot of brands and platforms today. I looked scott at the best sellers over the past week or two that your team sent us a lot of the items on the list are things that came out recently, released say in may and obviously resold fairly quickly after that is that the bulk of our business, people grabbing something thats in short supply and reselling it but not for a massive markup. A majority of items that transact on stockx would be outside of that release window these are products that are on the back catalog that could have been released years ago. Their this cyber weekend what we saw the best selling products were in electronics, in gaming consoles driven by both the sony and x box new consoles that came to the market. And in the core market in sneakers you had a couple of really interesting releases that came out from nike, the jordan 4 fire red that was the number one on the lest the number two was something called the jordan one, black metallic gold. The jordan brand and nike led the sneaker category for the day. And then of course in other categories such as street wear, in apparel it has been really interesting to see the rise of new brands this year was travis scott. And the hottest selling item actually was the Travis Scott Mcdonalds red tshirt that was released to mcdonalds employees and then found their way back on our platform to be a top seller in that category so a really dynamic weekend. Scott, whether it is gaming consoles on snookers or travis scott e shirts i am curious about the Business Model it does seem that it thrives on these Companies Like nike and adidas and mcdonalds that have these relatively limited releases and then people, costumers, really only have the best shot at getting them on a retail platform like yours at a significant premium. Do you think there is going to be a fatigue at some point where people say i am just i am not willing to pay that premium for these products anymore well if you look at the consumer, the consumer wants access to great product from great brands and we are bullish on brands we leasing product the Consumers Want thats their entire Business Model. What brands are increasingly using are collaborations and scarcity to drive value to their brand. Of course in the resale market it creates opportunity and potentially Economic Opportunity for those people that want to you know effectively buy that product directly from the brand and then resell it on a market so the entire market across multiple verticals is driven by the scarcity model that the brands are using effectively and the consumers are eating it up, they are inspired by what they see out there in the world. They are inspired by the great products from the great brands but went them authentically and wants to have a trusted transaction. Which is our model and what we are catering towards. Scott i am sure you saw the news this week that under armour are launching the curry brand. Given your knowledge of jordans yeezys, do you think it can be successful or is it a tall order to launch a personalized brand like that to some extent i think it is exciting. You have seen it in high luxury in Louis Vuitton you have seen it in other areas, where you are finding these athletes or influencers or artists in combination with the brand creating great products that those brands and those consumers had great affinity towards. And it is that model of dropping those products in collaboration that have been really successful for brands i am really excited about that particular one with steph curry. Again, i think emblematic what is happening across industry to create unique items that the next generation consumer could haveettes and in many ways finds their personalities and expresses themselves through these great brands and collaborations scott cutler thank you for joining us. Thank you. We have a news alert on ford check out shares of ford. The Company Announcing that it will be delaying the launch of the new brew bronco suv. It was scheduled to come out next spring because they are running into supplier and supply chain issues due to covid19, they are going to be pushing back the rollout of that bronco suv to the summer. Instead of coming out in the spring i will come out in the summer. Originally reservations were supposed to open up next week. They are going to push that back as well. Guys this is not a surprise given the pact we have seen a number of automakers talk about the fact that their supply chains are being stressed right now due to covid19 impacting suppliers who have had to shorten some of their shifts, in some cases cancel some shifts because their supply factories around the world are impacted due to covid19. You are saying not a huge surprise it is also therefore not a huge blow to ford i mean, people that have waited years for the bronco will probably wait another couple of months yeah. They will wait it is not going to be a huge blow to ford certainly you would rather have it come out on schedule in the spring as opposed to the summertime but this is not this is not the type of delay that would make people say you know what, i am going to scrap it, i am mott going to order this. It is highly anticipated and i doubt that they lose any reservations at all because of this whether it is cars or travel or movies, we are now getting used to things being delayed so perhaps not a surprise there. Phil, we appreciate it phil lebeau bringing us that news on ford. Up next we are getting a big test of investor appetite for ipos before the end of the year. It has been a red hot market so far in 2020. N e trend continue with airbnb and door dash next week thats up next on closing bell. Ompin the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. It has been a big day for the ipo market as door dash hikes its price range and another Company Announces its launch for a third time. Petco announcing its prospectus last night and door dash, it is an indication that the ipo market is not slowing down petco, the company has filed to go public four times in its 55year history. Most recently in 2015 but the put supplies retailer got acquired before it could debut in 2015. Petco benefitted from the pandemic as more americans are bringing pets into their home and spending billions on them. Then door dash is set to make its debut next week after the food Delivery Platform bumped its range that could surpass 3 billion in a fully diluted valuation of 36 billion. And six times what petcos valuation will be, i am curious, the proposition for door dash is clear in this stayathome economy. Petco, why go public now investors want to get paid back . The Company Wants to pay down debt a little bit of both. They wanted to pay down debt to be a while the big story surrounding petco is a lot of people have been adopting pets during the pandemic once you adopt a pet you have to take care of that pet. Who is benefiting . The pet retailers. When i heard the rumblings, i thought really, 2020 a retailer when you think about it all of this trend toward having a pet, taking care of a pet, spending money all that Discretionary Income that you are spending on that pet thats gone in to benefit this company they have seen sales rise by 9 . Slower grower than the door dashes and airbnbs of the world but for a 55yearold retailer it is nothing to complain about. As you both say it could not be a better moment for door dash think back to the uber ipo and everyone was writing off the idea of a food Delivery Business now is a better time petco lends itself to better chirons than door dash. The would have of wall street then i think we had offuring initial public offuring. I cant credit for that. The geniuses here at cnbc. The would have of wall street, respect, likewise on the exchange earlier leslie thank you up next, taking on testing demands. The growing need for testing swabs is kyrocketing and it is impacting the supply chain in a major way the details when we return sales are down from last quarter but we are hoping things will pick up by q3. Yeah. Uh. Boss doug . Sorry about that. Umm. What. Its. Um. Boss you alright . [sigh] [ding] never settle with power e trade. It has powerful, easytouse tools to help you find opportunities, 24 7 support when you need answers plus some of the lowest options and futures Contract Prices around. Dont get mad. Get e trade and start trading today. Dont get mad. To all the businesses make it through 2020. Thank you for going the extra mile. And for the extra pump of caramel. Thank you for the good food. And the good karma. Thank you for all the deliveries. Especially this one. Youve reminded us that no matter what, we can always find a way to bounce forward. So thank you, to our customers and to businesses everywhere, from all of us at comcast business. Testing swab demand is squie rocketing, so how is the supply Chain Holding up kate they are ramping up two types of nasal swabs needed for testing. They went from producing 20 million a month back in the spring to 150 million. They are set to reach 160 million by the end of next month. They are going to need 400 additional workers in maine, no ea easy feat. We are working tirelessly we will keep going until we can meet that requirement. We understand we are in the middle of a pandemic affecting so many. To be fortunate enough to be making such a big difference we are proud of that the company will have more than tripled its workforce in just a year until all three of the facilities are at full capacity next summer they say they will meet demand they are really rushing. Does it depends what type of test for what type of swab, which is the hardest to make they were making all different kinds of swabs the government called on them to make these two that are key in covid testing. The monthly figure they will hit next summer, those will all be used in covid testing, very important for the virus testing. Any incentive for any of those looking to move to rural maine. The pay is competitive. They have all kinds of jobs from entry level on up. Competitive wages. But the company admitted it is no easy feat, but they hope that drives people. Thanks for bringing us that story. Up next, the key tnghis every investor needs to watch as we head into a new closing week. We made usaa insurance for members like martin. An air force veteran made of doing whats right, not whats easy. So when a hailstorm hit, usaa reached out before he could even inspect the damage. Thats how you do it right. Usaa insurance is made just the way martins family needs it with hasslefree claims, he got paid before his neighbor even got started. Because doing right by our members, thats whats right. Usaa. What youre made of, were made for. Usaa welcome back this week we will get earnings from disney could be interesting with all of the moves from studios. Mike, in terms of what you are watching next week, some stremts on the front, but a strong start after a fly out november strong start. Rallies just keep levitating the seasonal strength, self reinforcing idea things are going to get better. I think next weeks ipo are relevant we have had a tremendously busy offering slate tesla rebalance of the s p coming up as well. Mechanical maneuvering we will see if there is enough fresh demand for what comes down the road for new supply of stocks you also next week will have that all day fda meeting where they will be considering the potential slate of vaccines. I know that will be Appointment Television for nerds like myself today is the deadline for the Treasury Department to sign off on a deal to divest ticktock. They are very silent and we have become accustomed to midnight. But i dont know if i can stay up that late because you can see its late here you are close to elon you go to the same forest to report it looks like you should started a ministering the vaccine next week and on brexit, will there be a deal, wont there . And mike . The list appetites are getting a lift you say are we at a good as it gets moment for wall street. Not what we can hope for as far as incremental good news have a great weekend. Fast money starts now. Im melissa lee and this is fast money. Tonight, grab your passport because we are taking a trip overseas where you can find the next big opportunity for your money and the historic vote in the house that sent cannabis soaring higher and who is taking the countrown this special day stocks hitting all time highs. The s