Take a hit. The covid consumer, walmart, home depot and kohls among retailers reporting earnings today. Walmart says ecommerce sales up 79 . And elon musks billions, tesla getting a spot in the s p 500. It is among the highest valued companies to ever enter the benchmark index and musk is on top to become number three, that is the third richest person in the world. Indeed, guys. Well start with the retail picture this morning, jim, youve been vocal as to the investor response on home depot and walmart. I guess thats related to the news out of amazon. Look, by the way, those stocks do tend to run up in the quarter and sell off thats nothing new a more aggressive amazon is always something we have to Pay Attention to i remember when amazon bought pill packs, the drug stores got killed i also point out that walmarts online david, thats not going to go away you can argue someone is going to argue thats the peak i would argue that amazon and walmart have taken so much share in this country, and that you cannot dismiss what walmarts done in terms of permanence. It is not just the pandemic. They have really changed the way people think and i think a lot of people in new york are snobs, dont understand how walmart has integrated itself into about 200 Million Peoples lives. There is lots of space that walmart could avail itself in new york city to change peoples minds. They could create a super store given how much space there is in terms of retail right now. You set a newly aggressive or more aggressive amazon, jim. Yeah. Amazons never anything but aggressive and i think that shows it today. Good point. I made this point before, put in relentless. Com and what do you get . What does it send you to really . I brought this up before. It sends you to amazon we have been waiting for this, youre right there is nothing that amazon they just continue to constantly be as aggressive as they possibly can be and this is an opportunity in terms of pharmaceuticals that has been one that people have been focused on for the company for some time. Certainly since the announcement of the deal to acquire pill pack, back in june of 2018, they announced that and the licenses we saw them take a lot of them were for medical devices over some period of time, people focused on that saying theyre not going to necessarily compete in pharmacy. But then the pill pack acquisition, then yquestions an then cbc. Com reporting that they trademarked amazon pharmacy in all sorts of places, international. Did goodrx beat the grim reaper by coming public . Are they decisive enough to go against cvs and walmart . Cvs and who else is going to get the walgreens, both going to get the vaccine the vaccine, right. Goodrx is a company you follow closely. We had doug hirsh on friday, down 19 , does it deserve to be . Lets get him on. I think that walmart seems to be offering a Similar Service to them, except for more prime members. We dont have to rethink everything or go to the drugstore. Look, i think that i think you look at amazon, david, the fact is were all going to evaluate whether we shouldnt be buying our pharmaceuticals there, we have to. Thats the way america is. I get so much food 80 of outpatient prescriptions, 400 billion market are available for mail order. 80 of outpatient prescriptions. Carl, youre talking about 84 Million People at least. We dont know the number, they never give it to us. Carl, i got to tell you, people think of amazon as lowest price, i dont think there is anybody who worries about their privacy with amazon. There was a time where i think people say, i dont want them to have my information. I think that the drugstores have done a disservice, i dont think that their pharmacies are neighborhood pharmacies for the most part. Carl, the linkage between the neighborhood pharmacy and the customer i think is broken and this is a good time for amazon. Well, as you point out, pill pack was a 2018 deal this has been in the ether out there for quite some time, jim depot is the other amazing story. Through q3, jim, about 100 billion in revenue, thats not far from the entire year last year of 110 billion and comps up 24, inventory up 2. Average ticket up 10 traffic up 13. It is an amazing set of metrics. It is not enough. The stock has run up there is also a definitive housing trade. The housing stocks peaked when pfizer came out with its vaccine. And, david, you know there is a there is the prepfizer world, and the post. And as soon as we got the possibility of nationwide vaccine, there are stocks that have been people have been running from like you wouldnt believe. And they were the stocks that people got excited about because we didnt think we would have a vaccine anytime soon ight. We saw that last week. And we saw it again yesterday and the response to the moderna news about 94. 5 effectiveness for their potential vaccine candidate. Both of which we could be seeing fairly soon at least, hopfully being actually put into peoples arms lets call it by early next year most vulnerable. But, jim, does it make sense, have we gone too far, one trade to the other or are we not taking account of the economic devastation that is going to be the case for a lot of Small Businesses over the next couple of months as coronavirus cases if i can buy walmart under 150 and nice turn from where it was at 154, because there is no stimulus so it is too far the general distribution of the vaccine, david, is too far versus the competition that must go under because the Balance Sheets of anybody this is, like, the restaurants, 40 are going under, the Balance Sheets cant be sustained against walmart. Even Grocery Stores will have to examine, whether Grocery Stores, more places like kings that go bankrupt it is really a remarkable time because i think that walmart is the darwinian winner of the brick and mortar and to get rid of that stock right now is to be very shortsighted. Very so landscape will simply be walmart, home depot, and virtual a costco and i think in contact with costco and then guys on the street delivering your amazon street . Yes i think thats so. Why not . Why not . Thats the way of the thats the way of the future. We cant fight it. Carl, costco last night gives 10 to their customers because to their owners because the Balance Sheet is so great. They dont have any problem. Yeah. A special dividend. Just put it in my pocket, please and as this is a great time for costco and no samples it is the it is the fourth special dividend in the past eight years, also the largest and, jim, we talk about it all the time costco investors basically live for two things, membership fee increases and special dividends. Yeah. Costco is a business where all you got to do is see how many people are signing up and you now how theyre doing, because they dont want to necessarily make a lot of money, when i was out in seattle, david, i dont no he if you ever drink wine, but it was well below what the distributor can get it at before they mark it up. Really . I like to drink what you buy at your parties i dont leave that area when theyre pouring it i have the special 40 year . Yes. It is a remarkable thing to see the prices, costco they want you as a member. Thats how they make their money. Theyre just they are just now going to storm china can you imagine . Theyre going to storm china storm it, really . Walmart tried to do it a number of eyre years back. They opened their first one and they had to close it midday because there were so many customers. That happens. That happened with walmart too, though well see. Wow wow, mr. Negative. Im not being negative. China is an incredibly important market we know companies, we have them on all the time that had success there. Such as apple and starbucks. Yeah. And biden, we havent even talked, carl, about the definitive nature of people who try to say that Vice President president elect biden is going to be similar to trump when it comes to china, thats nonsense. Biden is going to default to the old way, which is that tpp and lets get all the allies together and not do anything alone and i think people who think, you know, hes not a america firster, hes a one loner to quote wendell wilkie. I believe this is a different time were about to go into and theyre going to there was a president clinton is saying that there is that it is on xi i think that biden is going to be hes going to come in peace. Going to come in peace enough saber rallying hes not going to tweet i dont think hes going to tweet anything yeah. Hank paulson had thoughts on how biden is going to put china into a framework earlier in the week, interesti ing comments i d notice the journal has a story about Chinese Companies listed here, according to journal, and looking at s. E. C. Plan, need to have auditors overseen by u. S. Regulators, which is something you called for, for more than a year now. Thats why i like alibaba it looks like an american company. It does, even though you could necessarily argue that the communist parties sometimes doesnt like some of the things they got planned there. No. Thats always a continued question as to whether there is influence in the communist party, thats been the case with tikt tiktok, you hear it all the time, what could they have access to, could they get access to whatever they want. I dont think thats the case. It is a very well run company. Dont forget these are companies also that are developing we think of them perhaps in a different way. Theyre developing ai, for example, whether bytedance or alibaba or ten cent, theyre developing a level of Artificial Intelligence that rivals if not exceeds what we have got going on here. Thats a really Important Development as well as we talk about the competition between china and the United States. Yeah. Indeed, guys so much to get to this morning, including a lot of the 13 fs and berkshire getting back into equities in a big way. Tesla joining the s p. Dorsey and zuckerberg in front of Senate Judiciary later on today. And powell, what might he say about the feds efforts to supplement the lack of stimulus. Futures weak on the dow. Back in a minute you can go your own way its time you make the rules. So join the 2 Million People who have switched to xfinity mobile. You can choose from the latest phones or bring your own device and choose the amount of data thats right for you to save even more. And youll get 5g at no extra cost. All on the most reliable network. So choose a data option thats right for you. Get 5g included and save up to 400 dollars a year on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with xfinity mobile. Retail sales in the books, now Industrial Production. To Rick Santelli yes, were waiting on october read on Industrial Production. Of course, and were expecting a number around 1 were a little light on retail sales, were coming in as expected, arguably, a bit stronger here. Industrial production up 1. 1 . Expecting 1, we ended up with. 1 better ever since the april reads where we were highly negative, we had four positives in a row, except for last month, which was down. 6. So we regained that positive read on this series and if we look at what is going on with regard to utilization rates, they were better than expected 72. 8 this is subsequentially follows 71. 5 and also we had four ups in these rates and then we took a back step. 71. 5 last month was a bit in reverse, it didnt subsequentially follow higher, but this regains that. So both of these reads, Industrial Production, regain the offense with regard to better than expected numbers subsequentially stronger and giving us a better gauge of exactly what is going on with regard to mining and Industrial Production and some of those energy numbers, of course, that have such impact on these particular numbers carl, jim, david, back to you. All right, rick, yeah, plenty of fed speak to respond to woboh of those data sets later on today. Were watching tesla turnsurginn the premarket. This is among the highest value Companies Ever to enter the index and its market cap of 387 billion. Thats based on the close, makes it more valuable than 95 of the Companies Currently in the s p jim, if you take Current Trading into account, the market cap is a four handle. I think theyre baffled i dont think they know how to handle this. What do you do how do you kick you cant have the s p 500, only 497 companies. Though i heard people on air sometimes say there are 500 companies in the s p shocker. I dont know what they would do. They cant what do they knock out they cant knock out the smalls doesnt do anything. When they balance this, i think it is going to be they almost seem to have to take everything smaller how about that i guess well, we talked about the influence of these megacap companies on the index itself. For the longest time i always drew the extinction between the dow and the s p in part because one is price weighted, one is market weighted. But apple and alphabet and amazon and microsoft and down a little bit, facebook and then tesla, they have enormous impact on the movement of the index itself it is only six, seven companies. Thatsy think y why i think lot of younger investors say you pick the best of the best. It represents a piece about seven companies and i think the younger people are not fooled, not they do like etfs, but they like to buy individual stocks that they think are going to be right. And thats been their pattern, carl younger people are really in to certain stocks they love neo, for instance. You yawned at my analysis. I was not on television and it was something i couldnt help but you crushed me. Everybody, hes looking at me even though hes talking and im not on tv and, yes, i had a brief catching my breath i was listening to neo tell me about the young people in neo i want to hear about it. Ill get back to you. The younger people, the younger people are transfixed they love to buy Simon Properties when there is good news about retail sales. Anytime someone says i might cruise, if they offer a test from cvs and everyone has to be tested, test, test, test, and they come out in initial release, they will buy norwegian cruise lines they are king of the obvious thats what they like. They like the obvious. Tesla goes up, lets buy tesla hydrogen, lets buy hydrogen it is like they are herd animals. They are herd animals. Hey, you know what, the steelers are in first place, buy the steelers thats the way they think they do. It is working for them. It is thats my point. Thats my point, the s p 500 is oldfashioned to these people. It was a number of months back we all thought, well, well watch this new cohort drop off, but they havent theyre more involved than ever and theyre smart and, carl, theyre fun. They love it they love individual stocks. Even though we think they only love indices, they love stocks and i think it is fantastic. We hope it works out for them, guys well take a break more to get to with the opening bell in ten minutes. Dont go away. With this seal, this restaurant is committing to higher levels of cleanliness. The expertise that helps keep hospitals clean, is helping keep businesses clean too. Look for the ecolab science certified seal. Shall i put her in snow mode . Nope what about offroad mode . Nah. Sport mode it is. Lets see what this baby can do. Or. We could check out that Farmers Market . No you know what . Ill be in chill mode. button click if anyone needs me. Propilot assist with navilink. Available on the allnew nissan rogue. About 7 1 2 minutes before we get started with an opening bell lets get to a mad dash, cummins engine. One of the greatest fights playing out right now, this is including among young people, is Hydrogen Versus electric and cummins this morning, they have a proactive approach to a gradual transition, saying, listen, far out in time, but theyre investing right now. Why is hydrogen interesting . Because musk thinks it is a joke he does he does he laughs at it. No one thinks it is going to be now. The chinese are making hydrogen buses, hydrogen doesnt basically have im talking about green hydrogen, the best kind, the best kind. But this is saying that they have to commit now for the future but musk thinks there is no future to hydrogen. Are they putting real capital behind that . David, yes, thats exactly what theyre doing theyre putting real capital behind it. Okay. How did you you always know everything. But what i think is really important is that there is room for both see, thats there is room for ev there is room for hydrogen an you have to be thinking that steve jobs, right before he died, what did he want he wanted a car that ran on water. Well, a car that runs on hydrogen could be like that. And, remember, if youre ev, you plug into a coalbased system, 28 coal are we still 28 . I thought we were falling below that. Trying. Turbines that ge puts up, how do you pronounce turbine . Turbine. Right ill know larry culp is one of us and ge is a regular company when they start pronouncing it turbine. While on hydrogen, i hear the music, does this have any impact on nicola, which is oh, my, david, you got that so right that was tomorrow that was going to be tomorrows mad dash. By the way, i have lords town tonight. Lords town . Lords town. Oh, lords town, got it lords town. I know them okay. Look at that, steve burns, hes top work horse, top work horse guy. Thats a whole other world im involved with. It is so it is like kirbys fourth your worlds upon worlds upon worlds. Im all these things. T yr iisouworld, were just living in it opening bell coming up next. Tmobiles been building its 5g network for a moment like this. Introducing the iphone 12 pro with 5g. Now at tmobile, you can unleash the power of the epic iphone 12 pro in more places. Get 2 iphone 12 pro max 2 lines of unlimited 5g for just 100. Only at tmobile. Americas largest 5g network. Lexus has been celebrating driveway moments. Heres to one more, the lexus december to remember sales event. Lease the 2021 is 300 for 339 a month for 36 months and well make your first months payment. Experience amazing at your lexus dealer. We hit some of the retail numbers today out of walmart and home depot, jim. We didnt touch on kohl