Transcripts For CNBC Squawk On The Street 20240711

Apple reports, by the way, apples plan for new faster chips behind that. And you see it there call it snowflake soar since its ceo raking it in every month jim cramer says hes worth every penny, carl. Thats a lot of pennies well talk about that, guys. We mentioned, jim, all the stuff thats coming at us in the coming weeks or the coming days, rather including some investing meetings, crm, adobe, disney and starbucks. A lot of companies that are doing incredibly well and we should also be thinking not just here but worldwide i think its kind of shocking to see that other than the banks in europe, almost everything is doing well all over the place, including these companies which are very international companies. But i think disney has a great story to tell when it comes to plus adobe has a great story to tell when it comes to all the things theyre doing and starbucks it looks like were getting comments saying, look, theyre doing better than we thought and thats also international. All these companies are doing quite well they all have good stories to tell and the analysts are still updating their notes, david, from when they thought that things were falling apart. Yeah. God what a year it has been in terms of the markets, as well as you say, jim there was that time when everybody thought things were falling apart although we are at this point in the economy, again, when people are looking at the stimulus and the vaccine. Shouldnt say stimulus, the relief package and the vaccine sort of as a stimulus. In a way right. Because if you get at least 900 billion, lets call it if that actually were to happen and then the vaccine, you heard him talking about the rollout which is coming very soon and you start to see that return to normal, that will boost a lot of activity, one would expect oh, my, it would be incredible but the short term as carl said, i follow one of our best guests and he was saying this weekend that we just finished is right at the heart of what was the thanksgiving exposure becausei you got, if you went on thanksgiving to a family to things and big gatherings, you should be contagious as of last wednesday or thursday which means, boom. This weekend there was a lot of damage done. So, i think that i listened to a lot of the people and commentators go back and forth and the main thing is that you cant avoid contact, carl. Theres just a lot of people in contact unless youre six feet away and its freezing outside you might be giving it to someone. Well, in arizona, jim, the legislature shut down because rudy giuliani, of course, who has now tested positive and was there reportedly now at a d. C. Hospital so, thats just one example of sort of the dynamic were looking at to you guys broader point about vaccine. Bernstein on southwest there may not be light at the end of the tunnel but vaccines tell you there is an end they go to overweight on love, jim and ubs upping boeing and doubling their price target. One thing that happened this weekend other than the fact that i was watching green bay and on comes an ad. David, listen up for a second. On comes an ad for norwegian cruise lines and its like, holy cow. The ubrobinhood people were rig. No one Wearing Masks and up watching the icebergs and im like, the robinhood is right well, you made the point that they have piled into the these shares and dont seem deswayed by the fact that they sell stock. Raise as much capital as you can right now. When is norwegian actually getting back on the water, jim they just postponed listen, were not going to sail in the first couple months of the year because he doesnt feel it is safe carl, i have to tell you one of the things it drives the older folks crazy is that youre not supposed to go up if youre Carnival Cruise and bonds and bonds and bonds your stock is supposed to go down, not up. But this Younger Generation says, wait a second. People are going to cruise again. Theyre going to get a vaccine theyre hopeful and were negative well, heres norwegian on the tape as we speak, jim. Installing coronavirus neutralizing air purification system across the fleet. So, im sure were going to hear sort of what the airlines did earlier in the year. Efforts to establish confidence in the safety of cruising in general. Well, look, theyre going to figure it out. And i think a lot of the younger people who are not schooled in the ways of the stock market got right is that theyre going to figure it out. I think a lot of people, frankly, who didnt think, david, you know most of the people who we dealt with felt no way they could get a vaccine this quickly in warp speed i think they felt it was kind of the donkey speed it could be, well, we know from other pandemics or other, not necessarily pandemics but other efforts towards vaccines it could take years. Mumps again, i was talking about this last week, jim. This is an extraordinary achievement as we come closer to the vaccine making its way to peoples arms perhaps the end of this week, early next week its an extraordinary achievement of science theres no doubt about it. Again, though, guys, back to the Current Crisis hospitalizations, cases, deaths, all way too high dmno doubt about it. I think that there are a lot of people who cant see through it and then there are other people, carl, who just say, look, this too must pass and when it passes like the southwest upgrade that you mentioned and southwest is going to make a lot of money and since we tend to look forward, the people who are making the bet now on companies that are going to be losing a lot of money seem to be making a lot of money. People are betting on all sorts of vaccines and making a lot of money. People are betting on Anything Electric vehicle and with biden making a lot of money. The hydrogen trade making a lot of money and the spac making a lot of money not to mention the ipos in general. Doordash and air bnb i mean, air bnb getting to levels it has never seen in terms of valuation and you talk about how businesses change. Remember early in the pandemic it appeared that air bnb was going to be debilitated and came out stronger than it ever was. We know staying at a house when you can clean it yourself with no elevators and no areas of where there are people that could congregate is a safer way. A big debate on our network about the notion of wherever its crowds versus inside versus no crowds and you know a lot of this is just kind of nonscience versus science. But ill tell you, jim, i dont know how many people are nonscience we were freezing outside at a restaurant this weekend. And it was getting really cold and im looking through the windows, very nice, looking through and theres all these people inside eating it was like maybe they all have it. Maybe they all got it because the restaurant was fairly crowded. My daughter went to a concert this weekend she went to a concert. Everybody was happy and we were shivering youre now starting to get, she goes to the concert and has the greatest time in her life and she has had covid. Herd immunity. Carl, you can be outside in minus ten around a barbecue and having all the scotch you want as long as youre six feet away and one of the greatest. I felt like i was in green bay excuse me, i felt like i was in minnesota, no, see the eagles lost im aware the giants won or sitting atop alone 57 quite a win against seattle. What do you think this is espn why dont you stick with what were talking about. Sorry, go ahead. I think that what david is talking about is what captivated the 69. Notion of getting sick versus not getting sick and places we do versus places we dont. Science has been twisted to the point that we now are happy to give bogus science our president has allowed that, david. Here to stay yeah. Why not first amendment. Alternative facts here to stay but not in our world because eventually it catches up with you, thankfully. You know, you actually do need to have real facts when it comes to making decisions about what to buy and what to sell and all the other things in the Financial Markets and not to mention just generally really better off living in a fantasy world. Yeah. I like that. But, you know what, carl, we are in a world where everything goes and i think that what you really want to do is take care of yourself because in a world where everything goes and the governments dont know what theyre doing, you have to try to figure out. Look at sweden sweden was, ive got sweden in front of my face for months and then what happened sweden totally shuts down because they didnt wear masks i mean, you know, theres right and wrong and right and wrong are things that we learned when we were growing up and they got thrown away. And i think they should be brought back yeah. Journal with the good piece with how the swedish experiment, jim, is over as they start putting in restrictions to all this point, jim, theres some commentary out this morning that things are playing out the way we thought, but much faster than we thought. Mike Wilson Morgan stanley today playing out much faster this time we suggest leaning in on pull backs. Be more selective within the groups rather than broadly chasing. You go along with that and the thing that struck me was there are five trillion on the sidelines. Now, if this were 1997 and theres 5 trillion on the sidelines, theyre making a ton of money on the sidelines. But, david, what is that 5 trillion doing on the sidelines . What is it doing its not making any money how do you retire on making no money its very difficult to do i mean, how about if you took some of that money and you picked individual stocks and im going to mention it. Isnt that why were at alltime highs to begin with isnt so much of it that very equation the constant piece. You guys are very good quite high multiples. Now, that said, many people to expect we have a resurgence in the economy once we get the vaccine and numbers are not going to meet but exceed expectations but to your point were discounting curretax flow current ones one thing people want to talk about some of our friends in the white house that i speak to all the time, david. That china is leading the world. China is back. The numbers out of china are incredible do i want that a Central Planning economy, lets put that on the table. But the fact is a lot of stuff from europe and notice europe is ahead of us. What really surprised people, we got a nice note today about pvh how good it is doing in china and how good it is doing in europe and david this new eco system europe and china worked much to the chagrin of lots of people in our Foreign Policy what are you looking at . I am looking at you well you know what im talking about. Im looking at you youre sort of off camera. See, thats how it works there everybody can see how we are the fascist, murdering policy is winning that way i dont get hit, carl i dont get hit by people who say i love china but they are crushing it you know what, theyre crushing it they remind me very much of Aaron Rodgers. Theyre getting the Aaron Rodgers rate jim, i think everybody understands where youre coming from on that one we will take a break a lot to get to, including some upgrades today of lyft we mentioned the boeing upgrade and some downgrades, too of mcdonalds, teledoc when we come back Close Friends and associates of elon musk told them he is planning to move from california to texas musk spends a lot of time there where his company has operations you couple that with hpe moving their headquarters to houston. Report that goldman is moving Asset Management to florida. A lot of relocation going on i think its long enough to recognize that the taxes are really high in some areas and really low in others and youre going to have taxes raised dramatically under President Biden and so why not just, why not make a move and raise your salary. And i cant blame anyone david, new york is no longer the center of finance because the new york firms are not telling you to go back to their office yeah. I mean, its still the center of finance, but to your point, the big take away from this period has been a lot of people can work remotely and that their employers are happy to let them do so. I dont want to make too much of the goldman jobs nobody from west street and the population at their headquarters of Goldman Sachs has not declined a little bit in jersey is to where they had that building for some time but you typically have been talking more about reductions in operations and engineering jobs. But, listen, south florida is certainly a place where there is a low tax regime and a lot of very wealthy people. As you build an Asset Management business certainly youre going to add jobs there and thats certainly something goldman is thinking about whether its dallas or others musk to me is more interesting california right now taking more hits than does new york. You did have the hp news that this really is true about tesla and some other big names and californiabased corporations that may be thinking about moving their headquarters whether its to texas or to colorado another place that has a quite low tax regime so, it is an issue but, yeah, i know, some guy here saying new york is no longer. Oh, yeah, kenny saying, hes one of those guys that moved to florida. Remember i still think new york is and it will continue to be although right now when you have 15 of the people coming to the office, no where is. But wheres the talent when it comes to moving is there enough talent in texas . I think that texas is fabulous, carl i think it has so many things going for it but historically neither florida nor texas has had the number of people that you need to hire and i think that were going to talk about frank soon but there is just, you want to find people who can write code mark has told me over and over again you have to find people to write code enough people per capita that can write so its economically feasible i dont know and then theres also an issue i heard, as well, guys about just schools and things of that nature. You tend to get a higher end clientele or people who make a lot of money who are moving in part because they want to reduce their tax bills and send their kids to private schools. I heard some questions about that, as well. Of course, over time those things build, carl, as you know. Yeah, jim i mean, overall the migration patterns will suggest that there will be people to hire in cities like austin and nashville and salt lake and naples given what is happening not only on the Corporate Tax front but on the property tax front, too. Im not going to disagree everything seems to be happening at lightning speed and the emptying out of new york, manhattan, is something to beholden a lot of emptying is to florida and west coast emptying to texas. David mentioned colorado if you go into colorado, david, you go university of colorado is youll recognize all the tech news just nodding david, its a podcast. Im nodding because carl is going to take us to break. It means you be quiet. Like you disagree with me like you left me hanging well let the university of colorado take you to break squawk on the street is back in a minute. Dont go away. Sometimes, you want speedy but reliable. Stateoftheart but dependable. In other words, you want a hybrid. So do telcos. Thats why theyre going hybrid with ibm. A hybrid cloud approach with watson ai helps them roll out new innovations anywhere without losing speed. From telco to transportation, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. Good work little buddy. All right. We have seven minutes before we get started with trading here this morning i was going to say here at new york stock exchange. Not there, but here in new jersey northern new jersey ourmarks whe headquarters where we have been for some time. Citi talked about how hbo max can scale to the max, so to speak. Box office receipts, obviously, are limited. But it was like what you talked about last week. David, what and what a goodlooking chart you know, possible break up here you like that david, what happened . What changed at the top to make it so that we suddenly hear about hbo max more than we hear about, you know, iphones the wireless business is still a cash engine for its company and we talked about warner and whether or not it would succeed. We know a number of the cable channels not cnn but others are having a tough time as are any broadly speaking entertainment related channels that are subject to cord cutting. Max is the key product for them, right . Direct to consumer is a key thing because investors are willing to pay a multiple for it the question has been the Conversion Rates of current hbo consumers who, by the way, arent paying any more to get max and theres a lot more on there. And adding new ones. Now that move last week was a seminole move by them to say were going to put all of our slate direct right there obviously, go see it in the movie theater, if you want do it for one year they say its covid related, jim. But it will be enough to soup up the subscriptions at hbo max and enough to move at t in the right direction . When i hear that, what that says is youre going to get people, newer investors saying, look at this this dividend thing. They have a dividend. They have a nice yield and then these people say, wait a second. Theyre like disney, which has a big meeting this week. Big meeting for disney. And theyre making a lot of smart moves. The theaters are going the way of whatever. Disney has 70 plus million subscribers and hbo max has sort of been this isnt an idea you put in these analysts heads. You have got to tell me who is the big think guy there . Someone is making big changes at at t this is not your fathers aat t. Urines oni bl anpengel fo mut away. Dont go away. A lot more squawk on the street coming up. Hey yeah . I switched to geico and got more more savings on Car Insurance . They helped with homeowners, too ok plus motorcycle, boat and rv insurance geicos got you covered like a blanket houston . You seeing this . Geico. Expect great savings and a whole lot more. Jim was mentioned the starbucks investor meeting later in the week, jim more skepticism creeping into names like mcdonalds and they go from 250 to 225 they say their case of a 30 multiple might not get hit and theres this increasing tension between corporate and the operators over how much costs are going to increase thisyear yeah, weve been, we remember that the last time we had that was preeasterbrook and it did really hurt the stock i remember that period because the numbers were going down. What i didnt like about this downgrade no sense that the numbers are going down matter of fact, we got the mcrib and mcrib is a winner. But the stock is not irk wiwork, carl working versus wendys and verse as lot of the companies that figured out how to turn their businesses like wingstop really terrific right now for coronavirus. So, this is the one that is really lagging that people dont want and i think it may be a mistake they hate it as much as they do. You know it better than anybody, carl very confident guys at the top now. Yeah, obviously trying to keep those digital tail winds going, jim, and find new ways to deliver because the habits we formed in covid likely not going away even after that vaccine is delivered. A look at the opening bell, guys speaking of which, jim it is likely that we get some vaccinations within 48 hours of this fda meeting which could issue a decision on thursday or friday gotly with another great piece. But a great piece this morning in wall street journal about who should get it and also some controversy about how that i have been hearing the nursing homes, how do they get it . The answers is the cvs of the world are taking the vaccine right to the longterm care. And the states are taking it right to the longterm care facilities i think the optimism will be rewarded i still think and i know, david, i got nailed on the fact that i thought pfizer was going to have an upside. Maybe moderna does its obviously a harder thing to make by the way, we stop about therapeutics entirely. What is going on there a period of time that i thought the therapeutics and the antiviral that merck is working on and the antibodies although that was a supply issue from the beginning for the likes of lilly or regeneron they would be out prior to it. But not this oral antiviral. Doesnt mean there is not going to be a market for it, jim unfortunately, people will continue to get covid even when the vaccine is around but it might not be like it was at one point which was approaching normal prior to the vaccine. Those vaccines came very quickly. I was getting quite hopeful that the presidedrug the presido would be in the hands of many. I dont know where it is maybe the federal government has it, carl, i dont know where the stockpile of regeneron pills are. Yes, its got to be, ill take the infusion so what. You take the infusion and you get better you need a hospital. Its hard to make not that many doses of it. Not that much of it available. Well, we need it. Carl, we need it because the numbers are going to be pretty staggering and i think its going to hurt, i think its going to hurt the sentiment for a little bit when we see thanksgiving the numbers that have come from thanksgiving. We dont know those yet. I have a solution for everything ready . Im ready a company visby i had them on air. Carl, theyve got the use protection of the fda. A handheld pcr onetime only gives you a reading in 15 minutes. The fda sanctions that it is the same as a regular pcr and what happens is, obviously, if you keep testing people, theres that window where youre infected but you cant infect and thats making it so that people go home who know, who have gotten it but havent given it visby. Visby. As they ramp up, this is the company to watch nobody is talking about it its private it can be the answer if they can ramp up for millions of handheld pcrs and its the size of a sofa think about the way we do testing. You feel like, you get your test on tuesday and you take this and get the results say on friday. During that period that you infect people. Visby. Visby. Get used to it this is the term youre going to be hearing that is huge, jim, for two reasons. The argument increasingly is, all right, maybe Something Like that is not as effective in terms of determining whether you are sick but if you can replace it with scale moretesting, even that sacrifice of efficiency of the test itself can be offset just by doing more tests at home and testing more americans eliminating that period where youre asymptommatic but spreading. I dont know what the nfl is using but theyre testing every day. They have, i know they have some covid outbreaks. Those guys should have had millions no, i think theyre pulling people away who have been near someone who has had covid. What we will be able to do is if we had visby everybody at the network had a visby, every day we would test takes 15 minutes to get results. Its visby trying to manufacturer as many as it can its used heavily out west we havent gotten any in the east but its the answer because its your own personal pcr. You throw it away after. It gives you the reading and then you get one the next day and as soon as you caught it, you go home. Before you can infect. Right now, david, you catch it, you send it into, i dont know, come back three days later and youre getting everybody sick and what did the test mean yeah, that is the problem given the time that goes by. Visby like frisbee without the r v i only hadthis but what matters is this is what people are using out west and using it furiously and it is ramping and im sure the chance had a chance to come public. I couldnt believe it. You cant get it right now from your doctor. Too much demand. Its really given to the Testing Companies but, oh, my, carl, what i am hearing out west about the Companies Using this and making sure everyone gets a test every day where you have 15 minutes and find out the answer. It may be a way to stop the spread and i think thats very important. You talk about thats huge, jim. Go ahead, carl. Sorry. All right no, i was just going to take him to intel, jim. Which is the drag on the dow on this report that apple is developing even more chips that would try to outperform even the highest intel chips. Yeah, look, i mean, this is arm. Apple affiliated with arm. Arm trying to be bought by invidia. Intel i think has become a somewhat of a pinata, david. Every day comes up amd head of intel and now we have arm. David, what happened to intel . They missed a cycle, right . Its hard to get, you cant even, the atomic level on these chips and then you have the rise of samsung you have the rise of taiwan semi and their ability to do this now, obviously, intel is an integrated device manufacturer theyre not just but they are now thinking about how they want to approach manufacturing for their 2023 line of chips and we talked about the companys ceo about this last week because its a very important decision for the company. Are you tossing to it i am going to toss to it. How much do you go with what might be a surer way to get your supply or how much do you continue to invest in terms of your own foundries which has been the way for the most part that intel has gone. Only 20 or so of their chips are made outside of their own production areas this is what he had to say we have a very strong product lineup for 2020 21 22 for our client and Server Market the magnitude of the decision of what is in and out and well make that determination over time but i would expect that an idm and primarily for us here in the u. S. Is going to be important consideration and important for us to continue to extend the capabilities of an idm model here in the u. S. Yeah, jim, i know youre not a believer no, not at all. Not one bit. I think the company has lost its edge i think that lisa sue correctly predicted this five years ago. She leapfrogged. I remember when intel cracked apple and was willing to do anything for apple and now apple is abandoning as if why not work with them to come up with something faster . No, because they like the arm chip why do you think hes trying to buy arm . Because its a better chip now, look, i sure wish that intel was able to deliver because its a Great American company. But the fact is, arm which is a Great British company is doing a better job thats going to be huge, jim, as we try to find some way for intel to get traction. I wondered while we got a minute, jim, i know its not binding. This cannabis bill in the house the moore act that will go no where in the senate and some of the cannabis analysts said to see a federal vote is historic in its own right no matter where it goes. I have been recommending because they have the best Balance Sheet if they are infused, by Constellation Brands and i think if you really believe, which i dont, but if you really believe its on the horizon right now, then you would do canopy, why because this is the pandemic so many different ripples of the pandemic but a lot of people who expected by this point cannabis bars maybe even all over the country. They will not be regular bars cannabis bars with the taste great, no filling cannabis drinks i tried to get, i was going to open, if it was legal. Not if its illegal. You cant even oep an bar at all. Bars are closed thats because theyre not as open as say a costco, oh, im sorry. Science intervening, again lets talk about spacs because you cant let a day go by without updating everybody on the latest spac news real news this morning one of the largest transactions weve seen to date in the latest lets call it spac frenzy. This morning foley trashmene an announcement of a deal to buy a business well, actually roll it because blackstone and cbc are the owners of this deal. It is a 9 billion deal when you add in the one point, roughly net debt the company will have 7. 915 equity value about 16 times right now but this is bill foley and you know well, jim, this guy has an incredible track record of creating value. Former ceo and now chairman of fidelity and the largest Title Insurance company. And privet and public and his Holding Company has done very well come up most recently in the core logic thing which i have been following. In this deal, blackstone are selling and also rolling theyre going to get, i think, what have we got 2. 23 billion is coming to them but at the same time, they will own 47. 5 . That is blackstone cbc and others they built it. But, jim, what they really are excited about here is the Gaming Market sort of giving this person a gaming wallet and the ability even if youre using different platforms to keep everything in one place, i guess i dont fully understand it. But its seen as a real Growth Opportunity on the growth in gaming, correct. So, heres the thing. All the different betting sites have different lines okay so, you want to arbitrage the lines and look at them and try to figure out, you know, one is plus six and it shouldnt be just differentials plus 6. 5. You want to see the mgm line and the draftkings line and you want to see the line and that would be a fantastic device, david fantastic for gambling gambling is legal in many states digital wallet consolidation and, again, theyre talking about, obviously, margin improvement under foley. Well be joined by bill foley, as well the ceo of paysafe later in the 10 00 hour of squawk on the street. How did you get that . Hes very interesting guy hes fantastic. Incredible a losing company and made a lot of money in no time. It was quick, youre right. Okay. Carl we did get a record high on the dow, nasdaq and russell at the open although we settled back a bit lets get to bob pisani. Morning, bob good morning, carl. Happy monday new highs on friday for all the major indices. Not happening today a little bit of a pause thats probably a good thing given how overbought we have been lets look at the sectors. Remember the trend we saw in november that has continued into december the trend has been value names like energy and banks and outperform and growth names Like Technology and technology continues to do well a little inversion of that story today but not much, kind of flattish and Consumer Staples have underperformed the overall market but still up. The fact that even underperformers are up and led to the goldilocks scenarios. Broad, broad advance in the last five or six weeks. One thing that hasnt changed is the relentless advance of Semi Conductor stocks a small group of new highs today and theyre all Semi Conductors. Qualcomm, broadcom, kla, analogue devices it doesnt matter. Semi conductors are the hardware that is leading the world, as well these are on the new high list today. As far as the narrative, not a lot of change to the narrative really over the weekend we all know what the main stories are essentially, weve got a very tough covid winter coming up and thats going to be hard. The headwinds from the lockdowns and restrictions dwr s grippinge economy. And they believe it will happen in the Second Quarter 2021 we will return to some normalcy and that may seem optimistic and thats what the markets and we had optimism for more stimulus for two months now and going on thin fumes at this point the valuations we said over and over again 22 times, 2021 earnings overbought indicators under normal historic patterns very tough to sustain the kind of rally that were seeing. The problem is, were not sure this is normal were in unchartered territory on the virus and how the virus might affect earnings and sentiment. Thats why everybody is a little unsure why these high valuations necessarily mean the rally is going to stop here very exciting week for ipos. Weve talked about this for a while. Air bnb upped their numbers here this morning were talking 56 to 60 potentially. 3. 1 billion raise 41 billion potential market cap when it was 18 billion during the lows back then its really remarkable turn around the reopening story and talk about a perfect time to go public thats certainly doordash well see what theyre doing rise on friday seems like a 2020 story. Doordash over air bnb. As for 2021 ipos a lot of potential excitement out there well talk with Kathleen Smith on half time report about that spacex maybe, stripe, instacart coming in 2021 well keep an eye on all of these. Just the obvious ones out there. David has done such a terrific job talking about the spac business including the big one today. How remarkable this battle, if you could call it that between ipos and spacs are they raised the same amount of money this year. This has never happened before right now 194 ipo deals that have raised 167 billion we have the same number. 200 spacs raised 64 billion its a dead heat two things remarkable. Number one, total amount raised between the two of them about 130 billion thats a remarkable amount of money raised for new companies coming into the markets. Thats a good sign overall and, remember something. Three years ago, spacs were a nothing business spacs did not have a good reputation overall, carl of course, the success of big names have really changed that perspective. Back to you. That is for sure, bob thanks, bob pisani. When we come back this morning Virginia Governor Ralph Northam and how hes responding to the pandemic. Take a look at how treasuries are moving and no real Economic Data out this morning. In europe, though, yields are falling ahead of this weeks meeting some worries about brexit talks also in the picture the pound did take a hit against the dollar after the eus chief negotiator warn that sticky points remain and cant guarantee a deal and did say that wednesday is not seen as a cutoff date to any deal. Were back in a minute ok, just keep coloring there. And sweetie can you just be. Gentle with the pens. Okey. Okey. I know. Gentle. Gentle new projects means new project managers. You need to hire. 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 so you can start hiring right away. Claim your seventy five dollar credit, when you post your first job at indeed. Com home. 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. Shares of snow flaik have gone up. A com package he received awards him a batch of options every month for four years worth more than 108 million each about 1. 8 billion annually. We said at the top, you thought he is worth it kind of a lebron situation. He was done. He was exhausted he didnt really want to go back to work. He was finished. They lured him back. How are you going to get a guy that doesnt want to work back you pay him a lot of money with a good package that is just a term terminator type of company. You had to get him back. He didnt feel like working. A very fast grower in the right sector in the center of investors but 108 million a month. Listen, we do see these pay packages they are largely made up of stock. These companies and where things stand and the value. Thats still pretty shocking listen, nobody is going to complain because everybody is benefitting. Slootman didnt want to work. He was completely burn out from service now. A billion here and a billion there. If you are that good you command the salary for football, if they are winning, ill write a check to him if hes winning. Your tweet this morning shows you the issues on the offensive line there we have to take a break. The dow is lower tesla is leading with a record high of its own. Back in a moment verizon 5g is next level. E 5g americas been waiting for. Unlimited plans fit everyone in your family starting at just 35, with 5g included at no extra cost. Plus, youll get the entertainment and gaming the whole family will love. 100 obsessed with the mandalorian. man i watch a lot of sports. woman it has all my favorite shows. Switch now and save 700 on galaxy s20 plus. Its like a gift on top of another gift. Gifts keep coming at you. Everywhere. This is 5g from americas most reliable network. 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. Got some sectors lower today. Nothing more than energy take a look at the laggards this morning. Occidental lower mkm cuts to neutral. We are back in a minute. Lets get to jim and stop trading. We didnt get to the exxon challenge. Just 250 under management. I regarded the esg just a drop in the bucket. If you get some big firms. Please dont confuse that guy with a big firm. Right exxon is not going to pay all that much attention and i dont blame them service now on tonight. Really important, one of the greatest companies around. Cant wait cant wait. Unless go to hear. Mad money 6 00 p. M. Eastern time welcome to sqwawk on the street. Dow taking a little dip after fridays record high we have a new high on the nasdaq this morning our road map began with stocks slipping record high covid cases. Watching the uk preparing to roll out the first vaccine doses to the public tomorrow later in the show, he is taking the pay safe public 9 million spak deal following to discuss that deal plus the great space race and a company in sierra, nevada. Speak with space, we begin with a special welcome back to our own Morgan Brennan who we have missed welcome back. It is exciting to be back i missed you guys as well. I could not come back and not bring some sort of commercial space offering with me i feel like being out the past four months i feel like everything has changed and nothing has changed. Im excited to get back to it and cover the money trail on a daily basis. I also want to point out that i did bring a picture of my kids because thats what ive been doing the next four months they are tuning in to watch us today and continuing their early access to Financial Literacy here on cnbc that is my daughter remi and my son nico it is great to be back but i miss being with them on a daytoday basis as well thanks for having me nice to have you back and nice to see christmas has already started. Big time. Had to get it done before returning here you know every minute you are away from them hurts but to our benefit to have you back great to have you. To the markets, it is going to be a busy week talking earnings and market coming our way. Unrolling health care and already fresh headlines from the airbnb front bob is talking about this earlier, we mention briefly close to 42 billion in terms of the valuation of the company we are keeping an eye on the ipo. Airbnb and the doordash. Continued endless progress of spak ipos as well. A lot coming into the market morgan, tesla has 587 billion market value that might have changed a little bit over the past four months. It is a new high powering with the nasdaq that will be interesting to see what it does with the volatility we have seen in tesla now as well the other thing, guys, im keeping my eyes on and will be another story. Weve seen this move in rates as of late. This is something peter at weekly had been pounding the table at the absolute is still low and has doubled off the august lows, you take that and the surge in industrial prices thanks in part to some of the china data we have seen. It brings this idea that inflation as we start to see these vaccine roll outs and Global Economy recovery in the coming months, still getting through a tough winter in covid and restrictions coming back into force it does really raise the question about not just what lawmakers in the near term would expect us in the u. S. To do but what fed policymakers would do in the coming months as well stocks at or near a report high, part has been the liquidity story. Part of that, well continue to rage across the country. Getting now to meg terrell vaccines are what we are focused on you update us on what we know and when we know it. It is a huge week for vaccines so much anticipation for the light at the end of the tunnel and in the worst period in the country we have seen yet in terms of the cases, we are approaching almost 200,000 cases a day. The number of americans currently in the hospital. The sevenday average now needing 2,000 as well. 2,171. Take a look at hospitalizations. You can get a sense of where the regions are. Check out the south. The number almost as high but not quite as high as the numbers of people over the summer. The midwest much higher than they have been the west has surpassed the previous peak as well. The trends are obviously bad icu is a very important metric to look at in terms of how well they are doing the dark metric there are the icus the most constrained. More than 85 of their icu beds full not a good situation as in europe, the first vaccines are starting to get rolled out in the uk. They are getting these vaccines in their hospitals today to start giving these shots in the uk tomorrow. This ahead of a huge week here as well. The fda is going to release a briefing document about pfizer we will get a lot of information. These are the documents advisors will be looking at well see a lot of that. They should hold answers to questions they have from different groups figuring out how best to give these the green light which could happen. Getting you the latest, having watched as a viewer over the last couple of months, youve done an incredible job bringing the latest numbers. So thank you this is where we are going to bring in bob sutton of vera health bob, thank you for being with us a lot to get to with headlines first, starting with the vaccine roll out if and when we get a regular torry approval with pfizer and moderna what that could look like for your company and the places that your Company Operates whether south dakota, iowa or dakota i appreciate it thank you for having me. It is a bit of an optimistic target or outlook for everyone i think people are pretty excited about it there are logistics people are dealing with and look forward to the opportunity to get that vaccine out and start using it as quickly as possible for us, what we will do is set our prioritization schedule. Well start with Front Line Health Care workers. These who are dealing with vaccinations directly will be the first dosages of the vaccine that go out. Well start from there on a scheduled and pretty regimented protocol as we go you through who will receive a vaccine it will be those frontline care givers this has been a debate whether it should be front line care givers, Health Care Workers versus those at risk above age of 65. How did you decide that Front Line Health Care workers should receive this first it just came down to as we look right now, we have seen in the last month or a little more significant increased rates of hospitalizations that is starting to go down now. We are seeing that in the last few days that that is starting to decline, that is positive for the region in the upper midwest. At least in our footprint. Certainly, the longterm care population and facilities are very vulnerable. In our formula and protocols, they will be the next group after we get through initial Health Care Workers that are caring for those patients, then well move on to those longterm care i dont think anybody would argue about them going first i wonder about teachers and he had indicators trying to keep and reopen schools do you think they also deserve priority yeah, one thing we are looking at in minnesota, nebraska and north and south dakota we have not seen large School Closures across the boards, schools remain open. Teachers are vital and essential. They are also in contact every day with a population that can be asymptomatic but they are still transmitting it to the teacher and they become vulnerable as well they are certainly within our protocol of people who will have access over the more healthy population School Closures have not been an issue in our footprint our team had a discussion this morning with former fda commissioner Scott Gottlieb who said we are going to go through a period where we dont have enough to meet demand and then well get to a place where we have more than enough and the issue will be getting people to come in and get it he said he would see this around march. We look at it like early spring where it will be in ample supply and we need to continue to education the public about the importance of vaccination. Remember, it is a twopart vaccination. You have to come in to get dose one and then several days later for dose two as we get to the essential workers, we are going to have to make sure to use that time period december, january, february. To educate people about the safety and efficacy of the vaccine. As we see that, we think we are going to use that to get people to say this is something i need to do. When it is available, i need to get this vaccine president elect biden Just Announced the majority of his health team, bacarra for hhs, rochelle walenske. Absolutely. We watch as different people were vetted. Especially for hhs secretary we think he will do well for health care across the United States we think it is going to become an even greater priority for this administration. Hhs knows what is at stake and understands what needs to be done we will be there to work closely with hhs and certainly our local departments of health. State departments of health who are doing a very, very good job with the resources we have in the states in which we operate bob sutton, thank you for bringing us the latest thank you for having me coming up, billionaires behind privately held Space Company nevada space flight and what makes them different from the more wellknown players in this pioneering industry what decision continue wishes us is we are looking at entire eco system and we have partnerships, infrastructure, transportation and resources we can connect together the International Global presence, other countries that want to work with us and partner, so it is more than just billionaires doing smk like go to mars. For skin as alive as you are. Dont settle for silver gold bond champion your skin gold bond 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. Welcome back call them the other space billionaires private defense and space contractor doing everything from development to supplying tech to grow vegetables on the international spaceation the husband and wife team in their First Television interview together, i spoke to them about the orbital dream chaser that will be able to land on runways. I feel like we were a little ahead of ourselves about 10 years ago seeing the space domain was becoming really important. I believe what is creating this incredible momentum is nasas decision to have the Public Private partnership we are one of the top three private companies starting to invest our own capital dream chaser is at the center of that it has been an incredible project. The reason nasa bet on that, there is nothing other like that that would offer that kind of capability we are very proud to be building a space plane and we see dream chaser being a space taxi to impact our small suppliers and businesses and those working from home and we are working very closely with nasa to make sure we can get to the finish line together. We are very optimistic our first flight is 2022 it is around the corner. We are celebrating elons successes. That momentum is helping the space economy. We are excited to be the next ones flying our dream chaser that is in reference to spacex who now sent two krocrew out to space they have their eye on human space flight and developing an inflatable space habitat made of kevlar the osmans own the company 100 having bought the company. They would now actually consider outside investment we are open minded because we see bring in capital is going to allow us to scale up significantly and scale up our growth we have this vision to do it without outside investment we started with nothing. American dream, like you said. Now we want to take it to the next level we may get there sooner than later. There is that excitement taking place one cannot ignore. Valuation is record levels in terms of the political landscape, politics aside, President Trump has brought more attention to space and connection to National Security be it in connection with space force. I asked what a Biden Administration will mean for all of that recent momentum. There is an amazing momentum built, Biden Administration is going to leverage that it started with Obama Administration to look at the private companies. Thats how the partnership with nasa started i think our Current Administration made so much progress that momentum right now is incredible i do believe we are going to get bipartisan support and things are going to move forward even faster certainly a lot of focus right now on this National Defense authorization act as it moves through congress now and the possibility of president ial veto hanging over it as those discussions continue whether fiscal 2021 and beyond, what is your fiscal outlook in defense spending the space part, there is bipartisan support, for the reasons we talked about. Those National Security threats in space the competitors in china are evolving in significant way. National security space part, you are going to see that same or growing the other parts, fiscal pressures, stimulus money, covid, eventually we have to pay those bills. We expect an eventual down turn on that expense side of it we always try in that environment that spending is coming down. I think overall, you will see some pressure on the defense spending that outlook which is largely shared with wall street is the exact reason they have specifically as one analysts put it to me as dead money they have made most revenue in defense work, commercial space is the big focus of the foe future for this company. We have seen push back in delays for milestones in Companies Due to covid overall, it has been a pretty groundbreaking year. That is set to continue into these final weeks of 2020. Whether spacex with crew flights and that commercial, just this weekend, commercial Cargo Resupply Mission whether jeff bezos, also just posting about blue origins rockets and development of those as part of the program to land the first woman and another man on the moon in the coming years or virgin which later this week is scheduled to do the third manned flight to the edge of space. The last one done from new mexico the space economy continues. Continues also with wall street looking at that Morgan Stanley space submit expect to see some headlines as the week unfolds here. You cant you cant go to the moon or mars anytime soon with those kids at home. I know that but maybe i could go to the edge of space. Edge of space thats just overnight maybe. Not even, just a couple of hours. Maybe well sign you up for that one morgan, great to have you back reporting on space, which i didnt feel like i had enough on im getting caught up. Looking at etf spotlight the ticker sipo. Door dash and ash bnb big names that will go coverage. Today, going public in a different way. Bill foley taking through one of the largest spaks out there. Sqwawk on the street will be right back before we talk about taxsmart investing, whats new . Well, audreys expecting. Twins 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. Coming up, the covid19 positivy rate rising to 10 . Well talk to the governor of virginia about the states response welcome back to sqwawk on the street. With coronavirus cases, hospitalizations and deaths continuing to rise nationwide, lets go to seema for the latest the latest update this hour, this morning, new york city students are back in classrooms. As cases increase, individual classrooms or schools may have to be shut down if a child or teacher tests positive in parts of california, around 33 Million People are under a stayathome order restaurants can only do take out or delivery, salons and gyms are closed report numbers over 200,000. This is not just the worst Public Health event. This is the worst event the country will face not just from a Public Health side with he know what behaviors spread the virus and we know how to change those to stop spreading the virus. Dr. Deborah birx. Ill send it back to you well talk more about that with the governor of virginia in a minute we have some breaking news, bank of america will settle allegations of fines we have more from scott. The bank of america subsidiary back in july called trading on trust none other than the governor of New Hampshire and massive churning by brokers. Tens of trillions on trades he never authorized filing a 100,000 claim filed earlier this year and reporting the state securities launched their own investigation into merrill. Now learning the Parent Company bank of america will pay to settle the matter once and for all. Calling the alleged churning abuse of trust by merrill and the primary broker involved named charles canahan. He was fired last year and barred from working in securities no comment from him or his attorneys. Nothing either from merrill lynch. They have agreed to unspecified reforms in terms of how it supervises its brokers remaining 24 million in restitution that will go to the governor who will drop his claim making it one of the largest finra settlements ever and in New Hampshires security history. Wow, scott. We appreciate it in the meantime, as we said a moment ago, virginia is outlining the states threephased vaccination distribution time line the governor joins us this morning. Governor, good to have you thank you for your time today. Good to be with you hope you are staying safe and healthy. Yes hopefully if this Panel Meeting goes well, we could talk about this plan being put to work as early as next monday, right . Yes, sir. We have been planning in virginia the next several months, we want to make sure it is safe and effective from the data that i have reviewed and done a lot of Clinical Trials as a neurologist in the past. In virginia, well reach out to our Frontline Health care providers and residents and employees of longterm health care we have those doses available. As we have a better supply, well get to the rest of the population in virginia a lot of stories in the past few days about states angeling supply and the statements of need i wonder how much attention we have done right now among the nations governors from the start, weve taken charge and are working close together we are not competing we recognize the needs and allotment of the first face. Speaking on behalf of the governors watching the numbers go up across the country seeing that we are watching the data every day. Our numbers going up under active discussion of how to mitigate the numbers and well take further measures if we need to this week. What do you do and what are the numbers that trigger you to take further measures. Thats a great question im data driven and we are following the data we are seeing where the outbreaks are. Mainly where people are gathering with larger groups in homes and we saw that over thanksgiving we are seeing that in places of worship. We are going to encourage our churches and places of worship to take this seriously and make sure our numbers are not high and that they are Wearing Masks and social distancing. There is a lot to look at but we are looking at cases to take taking the vaccine as i know you will a number of people will be averse to doing so is that a concern to you it is absolutely a concern. We learned a lot especially with testing. There was a trust issue. We scheduled a testing site they put a video together and showed the congregations we will work with our localities. We have looked at the data and determine it is safe i encourage everybody in virginia and across the country to take the vaccination. I and my family will be taking it it is our hope and the only way of putting this pandemic behind us and getting on with our normal lives the other key piece of this is the fiscal piece what are your expectations and package in terms of funding or not and what does that mean for essential services such as mass transit. It is imperative that the Congress Take action we have put 22 trillion in our budget this year i speak with them on a weekly basis and how important this is. Not only for the vaccination distribution and Small Businesses for evictions, Unemployment Insurance all of these are vital there are a lot in virginia and americans that are hurting and need our help. There has been a lot of discussion on our air about whether restaurants have been unfairly targeted. Theyve come under the harshest restrictions it is the one place you go and take off your mask and hang out a couple of hours and talk a lot. How do you balance that . Our restaurants have worked with us in virginia. Capacity is down this is another reason for congress to take action. We closed the sale of alcohol at 10 00. People get close to each other, they are disinhibited and talking more loudly. We took that and closed our restaurants at midnight. We tried to be fair but we know where these numbers are hitting. We watch the data every day. Ill make more announcements with measures tomitigate the numbers. Hopefully a week of good news happy holidays to you and morgan, congratulations on your first day back from maternity leave. Im here if you need advise. I appreciate that as we head to break, another big move from palantir that stock up 11, almost 12 trying to recover from last week in the last four weeks, up 90 well continue to keep an eye on that a mixed look at markets as the dow hit record highs stay with us with 2021 right around the corner, top researcher lays out his playbook for the year eaahd on trading nation. More sqwawk on the street coming up. Welcome back to sqwawk on the street. A mixed picture with the nasdaq notching a fresh record. The dow and s p are lagging with most sectors in negative territory. Two outperformers, financials and energy are among the worst performers today within financial, youve got insurance stocks that are big laggards principal financial, lincoln and meet life as well. Keep an eye on those financials, Insurance Companies and interest rates. Ill send it over to you guys. Okay coming up, bill foley announcing a deal ttao ke his company puck lick through a spak. Well have more about that after the break. 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. Can get very complicated but in all flash solution from Dell Technologies powers store can unify your storage. Orchestrated by the experts at cdw, it delivers optimized performance and efficiency while providing simplicity and flexibility. Getting a new economics with the round table. This is the last Quarterly Business round table survey of the year it shows normalizing Business Expectations among the ceos that they talk to take a look at results when is business going to improve for these ceos you see the percentage, 26 of those businesses will decline. 41 say they expect their business will recover in 2021. And 33 said they expect to recover in 2022 or later in terms of the plans for the future, take a look at what the ceo is saying in terms of hiring up 11. 5. Almost at average for hiring in this survey. Capital investment up to 84. 0. That is above average in the survey sales expectation also above average. The gdp growth for 2021 is up to 1. 9 expectation in 2021 so karl, some good news here but 83 said one thing that would really help is a new relief package from washington. Not clear whether theyll get that or not. Ill take it. Blank Check Company foley make plans to take paysafe public this morning valued at 9 billion making it one of the largest spac deals we have seen. Joining me now bill foley and steve, ceo of paysafe. You have feel is worth doing for you and for your spac investors . We looked at 325 and some actionable, some not actionable. We got the list down to 12 companies. Throughout that process, it took about 60 days. Theyve always been at the top of the list. Before our criteria and its a unique platform. Supports us with the most. There is payments and processing and we felt like we could work very well with the cdc and they were rolling a significant amount of equity and the continuing action. So it just fit one of our criteria that we look for. Were examining companies and making them a significant investment and to those who take pause at the fact that, understood, blackstone and cdc will be significant holders, but they are also selling in what would anticipate theyll sell down from the 45 or so that they own once the deal is done. To those who say, not so sure spac deal, you know, they look at multiplan which hasnt done thus far and theyre concerned about a private equity seller. In this case, blackstone sold half of the shares and they assured me theyre going to be long term holders. Initially, were all locked up for 270 days and they recognize the face that were still in the early innings. Pay safe is a transformation and integration and migration story. Theyre organically. And today, the market cap and its that mold that i look for and looking for companies that i think have real upside, long term upside. Right and mr. Mckew, one would expend you would run that effort to some extent, working with mr. Foley. What are you going to do that you havent been doing as ceo that is going to and you point this in and out your presentati presentati presentation increase margins. Weve been investing pretty aggressively very focuseded for the last few years. And as bill said, we started that trance formation in terms of platform consolidation, upgrading some of the team, driving real risks and analytics. We really connected with bill over the last few months and his track record there are several areas we can unlock and accelerate that journey. We have a healthier Balance Sheet. We have good currency we can use. So the opportunity for inorganic growth gets added on to our outlook. You know, ive been hearing a lot about i gaming were looking at it now in ermz terms of it being launched why is that . What exactly is the product or what is the opportunity that youre talking about hes been in it for last 20 years. And what we do is we do a few things that we think are hard to copy and when bill talks about a deep and wide mode, its not only acceptance products with the merchant, we also have 15 Million Consumers through our digital wallest and ecatch products we bring customers into that system along with technology, risk and regulatory management these are complex things to do weve done this in every market with success the u. S. Is growing. Were seeing states open up on a state by state basis today 75 of the operators have pay safe and we plan on being a Strong Partner there and really capture that growth. So its an exciting space to be in one of the areas where pay safe has a real strength. Mr. Foley youre zriblgd as an agent of change and trar transformation youre keeping him as ceo. What is going to change in terms of the executive ranks of the company that is going to reflect that agent of change and transformation well, with pay safe, were going to bring some of the same ideas and same structure we brought to bradstreet and the company we recently took private and just had had an ipo with and basically, were going to be consolidating facilities were going to be moving to the cloud on some large number of products there will be an assessment trance formation under way and im bringing people to be on the board and also help me accelerate that process. Were not running the business we have ytideas. With he can really accelerate the growth of pay safe its not like you dont have a fairly tough set of competitors here there are so many global processes out there. You know, how do you define pay safe from that competitive set absolutely. Payments is a great industry it is vie brand. It is a lot of Investment Capital going in and i know all those people are partners and people have worked with in the past pay safe is global we have incredible set of products again, very few of the players you mention have scale products on payment acceptance. They can bring those together to create a powerful two sided network. That puts us in a different category from the vast majority of players out there dwoent just go to generic ecommerce go deep into i gaming. There are several other vert calls weve been expanding successfully into where you need strong banking services, strong risk and regulatory manage men the. We look at those pieces and when we can say yes that we can be kpet tigs along those areas, we know we have a right to win. We started the i gaming space. Its just a hard formula to copy and to beat. We have material share in many, many markets. All right were going to be watching closely, of course one of the larger spac deals i hope you come back, bill maybe we can talk wine and hockey at some point in the future but unfortunately, were out of time today bill foley and philip, thank you both thank you. Take a look at sectors. Energy and tech is lower there is themes in aerospace as boeing and American Airlines lead the s p 500 down a couple points back in a mitenu turn on my tv and boom, its got all my favorite shows right there. I wish my Trading Platform worked like that. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. Nope how about offroad mode . Why . You know what . Ill be in chill mode. [sfx button click] propilot assist with navilink. Available on the allnew nissan rogue. Good morning it is 8 00 a. M. At tesla headquarters in california, for now. Its 11 00 a. M. On wall street and squawk alley is live