Surging as the u. S. Rounds the corner on a vaccine. But how exactly will a vaccine work well speak to stanford medical dean, dr. Lloyd minor. Power lunch starts right now thank you, ty. Welcome to power lunch, everybody. Im kelly evans. Tech is the best performing sector today, up 2. 5 as it regains some ground it lost over the past several sessions. Take a look at big cap tech name apple, microsoft, amazon and facebook all higher today. You can see amazon and microsoft up about 3 . Flipside of the coin, Energy Stocks are lower the Energy Sector etf, exl up 14 . Taking a breather today. And despite all the volatility, the s p is up a whopping 9 to kick off november. Wow. Dom chu has more. We have talked about this rotation, whether its a great rotation, whether its a microrotation into some value type sectors like energy, industrials. We have some massive moves on some of the most beaten up stocks in the s p. This righthand side, this move higher than been led by many of those deeply depressed names like an energy, like a materials, industrials, those types of stocks as well. Now, you take a look at this because there are 13 stocks in the s p 500 that have a Short Interest as a percentage of shares outstanding meaning massive bets by traders against the stock. There are 13 stocks that have Short Interest of 13 or higher according to data from fact sets lets talk about the one with the biggest bets against them. American airlines, 34 stock outstanding is held by short sellers betting on a decline look at american, norwegian, expedia. They have been hit so terribly hard over the course of 2020 because of the pandemic and its effects on travel. These are some of the biggest gains weve seen on the righthand side over here because of that Short Interest and those traders covering those short bets to take some profits. Now, watch that particular move. I bet a yeartodate chart there because it just shows you how far these things have fallen check out these two other charts as well. Were looking at other parts that have been beaten up, have very big bets against them one in retail. 5 decline for ralph lauren today. This move higher here, ralph lauren is one of those highly shorted stocks in retail in the s p 500. Well end on one more that rounds out this notion of the consumer economy being at the heart of all this. Sl green realty, look at the decline over the last yeartodate period. 40 of its shares lower here now. In this move over the last couple of days, a sharp move higher, it goes to show you, kelly, tyler, some of the most highly bet against names are the ones rallying. The question is, will it last . Thats a big one for investors back over to you guys. Jpmorgan and Goldman Sachs bullish on the market heading into 2021. Raising the year in 2021 s p price targets to 4,500 and 4,300 respectively where will the market find that 25 growth over the next year . Joining me now to discuss that is mike labella from franklin templeton. Gentlemen, welcome mike, earlier this week you were pointing to a massive rotation in the market to value today not so much. Is value the place to be over the next year or what . I think monday reminded us that the biggest stimulus is going to come from a vaccine or better Risk Strategy as it relates to covid more than any fiscal or Monetary Policy and its going to come very sudden when you think about the potential milestones over the next couple of months, there are potentially multiple instances where well see better news around potential news for a vaccine as well as potential limiting of vaccine area look at our value stock. The rubber band is stretched so even slight expectation can have a massive impact this can be sustained im going to move to Scott Clemons as we seem to have some audio trouble with mike labella. Scott, what is your take on the markets direction i take it you assume the market is reacting very nicely, oh, by the way, to the possibility of split government and a biden presidency on the one hand and to the prospect of a vaccine for this virus on the other . The prospect for clarity is the bigger point but the progress in dealing with the pandemic and progress towards economic recovery are two sides of the same coin and the linkage between those two things is consumer confidence, consumer spending, and thats 68 of gdp. I think what investors are looking for, and this will be interesting to play out over the course of 2021 and to what degree companies, both public and private, are able to incorporate into business as usual the Lessons Learned during the pandemic were looking for companies to better integrate technology, have more flexible workforces and better utilize assets. Real estate particularly the upside to corporate Profit Margins could be the big story in 2021. In other words, what you are looking at, if i could sort of translate it, is that some of the things businesses have learned this year, ie, working at home, using technology, maybe reducing the real estate footprint. Those savings are going to drop to the bottom line weve seen operating margins bounce back up almost to the prepeak levels. If those trends continue, we believe theres easily a percent or two of operating Margin Expansion to take place in 2022. That doesnt sound like hey lot but when you multiply that across the entirety of the markets, thats an extraordinary rebound in earnings and makes the equity market not appear as expensive as it does now priced on depressed earnings. If you look at it more on 2021 earnings, the valuations become much more reasonable, particularly in a monetary environment thats likely to remain very accommodating. It looks like its going to be very benign who knows about stimulus, it may become before the end of the year or more likely it looks like afterwards. Mike, let me turn back to you. What scott just outlined there, which was the idea that what weve learned this year about using technology and working more efficiently is going to kind of Margin Expansion and savings that will drop to the bottom line, that could power the market higher. Do you feel comfortable with the predictions we cited at the top of the segment from jpmorgan and Goldman Sachs for roughly a 25 gain from where we are today for the s p . Yeah, we think theres enormous room to the upside as it relates to the market considering the rebound were expecting later this year. And into 2021. Now, much of those kind of that relate to the acceleration of technology are going to continue to get to the bottom line and be very supportive to the Broader Market the key part here is that as the recovery starts to gain ground into 2021, theres an enormous amount of sectors that have not participated in this market rally. Much of that side Goldman Sachs and jpmorgan could likely be achieved by the broadening out of the s p 500 sectors all right mike, thank you very much. Glad we were able to fix the sound there and get you back in. Scott clemons, always good to see you. Kelly . Likewise. Tyler, we want to update everybody now on a story that was hot this summer. You may remember shares of Eastman Kodak spiking after announcing a huge loan with the Government Back in july. But then the deal was halted on questions about stock sales by Company Executives today new details are emerging the company admitting the execs sold shares they didnt even own. Lets go to leslie picker to sort this out for us thats right. The drama continues for this once american icon, as you mentioned, at the end of july kodak shares soared 1,000 over news they got a government loan to produce ingredients for drug manufacturing. That was halted and what followed was lawsuits. The company says its cooperating. Thats not where this story ends as you mentioned in an Earnings Call yesterday, the cfo revealed that five former Company Executives had exercised f forfeited stock options. The internal controls designed to control Something Like this were, quote, inadequate. Kodak said this didnt result in the misstatement of any Financial Disclosures but the 2 million options exercised in the first nine months of 2020, about 300,000 were exercised by exemployees of kodak that had previously been forfeited. Kodak recognized 5. 1 million compensation and is seeking to claw back the value of those options at the time of sale. Could they be in further trouble or consequences as a result of this, leslie thats the question im looking into whether these executives could be in for legal trouble, if it was one of those, oops, i didnt mean to type of things i think the question will really involve whether they actually do return the money that they were able to get from exercising those options they had forfeited and whether the company itself pursues legal action on that front. Im looking into that further speaking with lawyers and so forth to see if there are any legality issues surrounding this activity. Yeah. Appreciate you bringing that to us, leslie thank you very much. Coming up, as the second wave begins to take shape in the u. S. , third wave really, a vaccine cant come soon enough well speak with dr. Lloyd minor how a vaccine will work, when to expect it and what to do in the meantime. Chinese Big Tech Companies falling in hong kong sharply as china outlines its antitrust guidelines for their fst time. We have details on power lunch after a break. Flexshares may look like other etfs. But inside. Theres advanced research, modeling and refinement. Constructing funds that dont simply follow an index. But explore new terrain. Helping you fill portfolio gaps. Connect to client goals. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Find a stock basedtech. On your interests for a prospectus containing this information. Or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Its time you make the rules. So join the 2 Million People who have switched to xfinity mobile. You can choose from the latest phones or bring your own device and choose the amount of data thats right for you to save even more. And youll get 5g at no extra cost. All on the most reliable network. So choose a data option thats right for you. Get 5g included and save up to 400 dollars a year on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with xfinity mobile. Welcome back its a split market today. Shares of alibaba slightly higher in the u. S. As today is singles day, the end of it its a huge day for the company. In hong kong the shares are reflecting this increased concern about regulation its a nearly 10 decline. Deirdre bosa is joining us now to explain deirdre . Kelly, well, the good news is the Chinese Consumer is alive and well alibaba, over 70 billion in sales over that shopping event, nearly double what it notched last year. We should note the total this year was 11 days, not the typical 24hour period this year as the pandemic limits travel, alibaba put the emphasis on international brands. Some popular brands, nike and apple, but allbirds getting in on the action as well. All of that overshadowed by chinese antitrust scrutiny of the tech giants. Just as singles day was getting under way, 1111, chinas antitrust board put out practices. It took a collective 280 billion from the biggest names from ali alibaba and tencent they have largely been seen as National Champions and seen as operating largely independently from the Chinese Government. As we saw with fintech giant ant group, beijing is not afraid of pulling out the rug from under them kelly . Deirdre, lets get specific here what are people saying about what this regulation could look like, or do the specifics matter i mean, is the whole idea just that they could face pressure from the government . As we know, the Chinese Government, theyre not afraid to come in and, as we saw with the ant group, you know, if they dont like what theyre seeing, they can do anything they want exactly over the last decade or so, these tech companies, like alibaba and tencent, have been able to grow just enormous amounts, hundreds of millions to the billion of users for alibaba and tencent. But there is, perhaps, the thinking that perhaps theyve gotten too big we talked about this earlier, jack mas comments really seeming to criticize the Financial System ahead of those alibaba regulations. The Chinese Government wants to know that even if they dont have a stake in these companies, theyre going to fall in line and behave this is, perhaps, an indication that xi jinping, the Chinese Government, the regulators are looking and saying, hey, if we cant control them anymore, maybe we need to rein them in. That will have huge implications with alibaba and tencent, they are growing faster than our own cloud giants if brakes are put on the way they can grow that business, that could hurt the growth of these enormous companies yeah, fair enough deirdre, thank you very much deirdre bosa, we appreciate it. Speaking of regulating chinese tech companies, remember tiktok tomorrow is the sale of that company. President trump seems to have moved on to other matters. Lets bring in julia boorstin. Bytedance filed a petition with the u. S. Court of appeals to action for a review of the president ial order back in august that ordered bytedance to divest of its u. S. Business. But the deal that the president approved, which was to sell 20 to oracle and walmart, has not gotten clearance from the Chinese Government so its unclear what will happen when we get to that deadline tomorrow and whether the government will shut down the app. Tiktok saying, quote, for a year, tiktok has actively engaged with cfius in good faith to address its National Security concerns even as we disagree with its assessment. In the nearly two months since the president gave his preliminary approval to our proposal to satisfy those concerns, we have offered Detailed Solutions to finalize that agreement but have received no substantive feedback on our extensive data and privacy framework. We have gotten no comment from oracle on this position or no response from the Trump Administration were awaiting the incoming biden administrations perspective on tiktok. A biden adviser telling our alex sherman, its too early to say, tyler, what they think about this chineseowned app. Obviously the administration has been distracted by other things what are the what are the chances tomorrow the plug gets pulled on this app in the United States tyler, i would not want to speculate. This has been such a wild ride in terms of the story. Such an interesting code to have this filing requesting clarity here, but ive been talking to a lot of sources for the past several months and people on all sides of this deal say they dont know whats going to happen i think its probable, tyler, since weve seen the app continue operating in past similar situations that we could certainly see another delay. Also keeping in mind that bytedance asked for another 30day delay there. Julia, thank you very much. Julia boorstin reporting. Coming up, mortgage demand hitting a sixmonth low. But the ceo of the home builder d. R. Horton says this is the best market ever weve got those details. Plus, after a huge run, hot stocks taking a hit today. Aurora cannabis down about 20 well explain why when power nc rur aerhiquk break. Ree access to research. Yep, td ameritrades got that. Free access to every platform. Mhm, yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. Now offering zero commissions on online trades. We charge you less so you have more to invest. Welcome back to power lunch. Housing and real estate a key pillar of the u. S. Economy in focus after demand for Mortgage Applications fell to its lowest level in six months. The housing stocks fighting to stay in the green, helped by home builder d. R. Horton which was upgraded to a buy today after its ceo called this Housing Market the best hes ever seen. Matt and gina sanchez, good to see you both today gina, weve seen such a strong Housing Market in this pandemic, this pivot from cities to suburbs. But is all the good news priced into these Home Building stocks . It doesnt look like it, honestly, seema. The Housing Inventory has been so low for many years, since 2018 weve been talking about how tight this Housing Inventory is thats going to continue to help support housing prices and will help Home Builders matt, agree or disagree well, you know, its funny because i agree with everything gina is saying on a fundamental basis. Things still look great. One thing that concerns me, and ive been bullish on this group for two years now, but sometimes the stocks do a little differently than what they should do or