Transcripts For CNBC Squawk On The Street 20240711

Consumer in this covid economy and a ventilator boost from medtronic, but sales for other medical devices remain lower medtronics ceo will join us exclusively later this hour. Carl, jims shaking his head already. I dont know speculative market ive ever seen i was going to say, jim, i mean, what a confluence of headlines and then to layer on what you were talking about with becky, this seemingly endless generational bid for stocks in general. You know, look at these plug power did a deal last week, 38 million shares of 22. 25, norwegian did a deal of 40 million shares at 20. 80, carnival did a huge deal at 17. 59, up huge on that, American Airlines did a deal, huge amount of stock, and about price that is a dollar below where this it is trading. Ive never seen anything like it where are the profit takers . Where are they i dont know. This is listen, we have been talking about this new cohort in the market, theyre for real, man. They are real it is not just ev stocks that are ev Companies Getting merged into spacs to go public or any spac you want to talk about or anything else, theyre in everything. They are in everything. It is just an amazing to behold thing. There are the numbers for airlines arent that great it doesnt matter. Theyre thrilled they buy them. If i were any one of those airlines, i would right now offer 50 million shares, right now, and they buy it how much money do they have . I dont know well, jim, to that point, where is the wisdom right now in zagging when the others are zigging . Im thinking of b of a last week talking about full bull. Peak profitability, are you willing to go there . I think what happened is that there is a sense that if pfizer, moderna, and astrazeneca can all make something, particularly astrazeneca, different style vaccine, then we have it beat. Now, of course, the odd thing is that the case number each day shows we dont have it beat at all. It doesnt matter. People are willing to look through this i find it unbelievable people are willing to look through the number of cases. There are a lot of people who genuinely believe, there is 70 Million People who genuinely believe it is either a hoax or not that bad dont get me dont get me down i was feeling a little better somehow. Why did i i think about 70 Million People who have a different set of what they consider to be facts than the rest of us, it is just it is disturbing. I concede nothing on this issue. I know you dont. And i agree with you in terms of those facts. And theyre bad. Again, it depends on what source youre looking to. Ive never been able to resolve that some have a bit higher case count than the one i watched does we have 80,000 new cases yesterday. Texas, california, both with significant numbers. Thankfully not as bad a day in terms of deaths. But, carl, we have said it many times, by the way, we have been having excellent coverage of various Hospital Systems around the country, it is a corps ohory add to every day, theyre filling up, at 85,000 or more hospitalizations right now and that has to continue to be a key question as we talk to these administrators who are very concerned. No doubt. I know i saw some pictures this morning, guys, of white tents in staten island, trying to build some extra capacity for hospitals, even here in new york city, jim. That said, i mean, if this transition is now in place, thats going to mean more seamless timeline for Vaccine Distribution, the take away on yellen has been someone who is not just with a deep understanding of unemployment, but obviously someone willing to go a little bit bigger in terms of fiscal stimulus i saw a piece this morning that argued that biden is unlikely to replace powell and give him a second material, which would extend clarity for markets if you agree with that point of view. I think powell would be unbelievable would be nice powell really is very much aligned with what biden is doing you can say even last week, when secretary mnuchin pulled some of these programs, and i didnt think the programs were significant, but i do know that you have chairman powell saying, listen, were not done. Nell we get a stimulus package, were going to stay on the side of of caution and so you have this kind of remarkable moment where you got the fed being loose, treasury secretary who is a very strong hand, we all know her, no surprise, and she was very well liked as fed chair and so then you start thinking maybe it is going to be smooth maybe it is going to be smooth maybe it will maybe it will. I know the robinhood traders, they love yellen theyre familiar with her work at the council of economic advisers and her earlier work, jim. They love her like they love the acoustic stuff. Yes, exactly. They love x pen. She was unplugged what . Yellen unplugged. Listen, she also, by the way, would be part of any decision when it came to a new fed chair. If that was going to be the case one everything i know indicates she had a good working relationship with powell, when she when he was on the board and she was the chair. And, generally, the markets as we know yesterday certainly quite happy with the prospect of a yellen at treasury some say, well, whatever happened about getting somebody from the business. Thats not going to happen i wonder, given the fact she didnt at one point like the way the small cap biotechs were trading, i wonder how she would think about li and x pen. You know it was a staff member. I love her. I happen to think jay powell is great. If you like stocks, you got two great people if you dont like stocks, youre, you know, youre fighting li, youre fighting nio. Youre fighting the red pill yeah. I dont know. Thats what a throwback, jim i had to look it up. I had to look it up. July, 2014, yellen said that valuations of small cap biotechs were, quote, substantially stretched. And, man, did we give her a hard time on that it was to be fair, wasnt it in some sort of fed paper. I dont believe she was actually quoted, specifically i remember us being on set at the nyse and talking a lot about it. What does she think of fuel cell energy. What does she think of plug power . Do any of these companies, if you add them all up, have any profits, dpw any of them . You and i have the same conversations, not with each other, but with people in the marketplace. Theyre talking about dpw, ciic i talked about yesterday, up again, not to mention long view, that one, all these spacs that are skyrocketing someone said, david we put up the list. The ciic, there were several articles that said i recommended them on squawk on the street. I know. Were skeptical and everybody thinks were being that were promoting, which we are not. Carl, we miss you, because commenting on what is go on here look at that it is there is two markets. There is the reddit robinhooding market and you cant lose in that market. Like a slot machine that comes up with three bars like youre dealt 21 youre dealt blackjack every time and the rest of us get a 6 and a 10 and we get a queen. Jim, i mean you got goldman titling their strategy reports, roaring 20s, and thats a doubleedged sword the picture youre painting sounds like both edges of that sword right now. I have never you got two markets. That market of whether youre worried about the apple 12 and then you have the market where youre looking at fuel cell and, you know, people, i dont know, david, how many of the fuel cell people know that it develops in commercial involved with commercialization . The answer is they google it dont laugh at them. Theyre laughing all the way to the bank now. Thats right. We all know those of us who lived through the late 90s, reported on it every day, remember how that ended in terms of speculation went on for a long time. Speculative in nature, very much unclear theyre ever going to be able to get to profitability, generate significant amounts of Free Cash Flow some will. There are some winners we used to laugh at amazon i get it funny. Almost as funny as netflix. We laughed at tesla along the way. Oh, man, tesla. Yeah it happens all the time it doesnt mean there arent plenty that fall by the way side. I said it would be prudent to take a little off the table on the nios and lis and on twitter, im telling you, i was a war criminal war criminal i said, take a little off. You can take out your basis today, for most of the stocks, and people said, cramer hates them i dont. I am thrilled when people make money. But, you know, wouldnt it be great to just take a little off, go buy a cashmere sweater. There is a larger overlay here, that there is, you know, we continue to move towards this in corporate america, in the carbon plans of so many corporations that are going to rely as you pointed out, jim, on having a fleet if they are in any sort of business that requires things being delivered or moved, that is going to pri th bring them to Carbon Neutral look at gm, no longer supporting the Trump Administration in california, so there are real things not to mention that long web page they gave us the other day, and all their efforts in the ev. This is a real effort. No doubt about that. Which brings us to the main point of this mornings discussion, i have nicola on tonight, mark russell. Youre stunned why dont you do a danny thomas spit takeover there. I have nicola. How did they get to you what did they do they, they found where i live this is most important booking of my career. Now you ruined it now you ruined it. It was really interesting, and now you oversold it. This is the ultimate ev company. They have a pending deal with gm, they had a truck that was rolled down a hill, looked like it was going fast and we know this is the Green Hydrogen play, which is what amazon needs, what fedex needs. Theyre using plug power, but, carl, this is the company to listen to. Because if mark russell tells a good story, maybe they can get past the guy with the two first names. Were going to hear from trevor one of these days you have shown a bright light on hydrogen. People were looking for gm to Say Something about that deal closing last week and they did not. No. And but i am obviously going to try to without the booking being canceled, i hope, try to find out a little more about the gm deal, because i have reason to believe that gm wants to back Hydrogen Power because Green Hydrogen is something that i expect President Biden with his new envoy senator that he is kerry that i think hell favor Green Hydrogen. And gm did include it at least in that writeup i was discussing they did mention nikola. We havent seen anything official in terms of actually closing that transaction as we take a look at the picks expected pick is yellen. That has not been announced. All the others were announced yesterday. And we do expect i think nbc did have a tweet this morning that there will be an event today in which all of those nominees and appointees may speak. So we might hear from them by the way, guys, you mentioned tesla, musk is now the second richest in the world, surpassing bill gates hey, you know, had a good year. Yeah, yeah. What has he done for world peace . Oh, david sorry. It worked out what standard you hold people to. Well take a break. A lot of retail to get to including best buy, dicks, hormel, smucker, downgrade of ene meacuble upgrade of ll wes wh wco bk. Students of color typically do not have access to high quality Computer Science and stem education. I joined amazon because i wanted to change education and i am impatient. Amazon gives me the resources to change the world at a pace that i want to change it. We provide students stem scholarships and teachers with support. Im a fighter and im fighting for all students. 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 earnings definitely in folk us as we approach black friday best buy, tiffany, dollar tree, each posting beats same for Dicks Sporting Goods which named Company President Lauren Hobart as the new ceo she will replace ed stack who becomes executive chair and chief merchant on best buy, appliances up 39. 3. Unbelievable. This is one of the things that has happened, people should be aware of, is that it is very hard to get appliances a lot of these are back ordered. When you speak to whirlpool, a lot of the stuff is just sold out. So people are going from place to place to find them. And yet what did best buy do they did something that has become the kiss of death, they didnt really give you a forecast and who the heck would think you can forecast anything in this environment. But it doesnt matter. They are really, i think, just a great, Great Company and if it does get hit, you have to buy it the inventory shortage and appliances will last for a long time it is an amazing thing this is just the house houses were up 6 , prices, and there is just tremendous inflation, anything that goes into a house, the appliance prices are insane how much more they are but they gave no outlook, carl, and because they gave no outlook, they poured water on the fire david, they ruined the narrative. They ruined it Everybody Loves to talk narrative. The narrative overall, though, is that unexpectedly retailers, even ones beyond home depot, lowes, walmart and target, obviously amazon, are doing pretty well, jim theyre doing pretty darn well there is no experiential economy. There is nothing to do and people have moved from the city to the suburbs or the country, because the office is viewed as too dangerous. What they do, this is from laura albert, Williams Sonoma, they turn their house into a school room, an entertainment room and an office. All these need to be decked out. Thats why Restoration Hardware is doing so well, way fair is doing so well, Williams Sonoma is doing so well, Herman Miller is doing so well this is happening in front of us people are trredoing their kitchens, remodeling and you cannot get a refrigerator. You have to try to find a refrigerator this is an incredible time the demand for anything that goes into a kitchen for remodeling, forget it, just wait you cant get the products that you want the jacked up prices are ridiculous there. Yeah, though ill tell you what, jim, you talk about there being no experiential economy and youre right. When it does come, though, it is going to be a massive it is going to be fascinating to watch. Im taking everybody out at cnbc everyone everyone save the tape save that tape you better have that good wine that good wine you pour at your parties. The caymis 40 on the house. Save the old tape dont cut it off early well get a mad dash after a break. Dont go anywhere. Labradoodles, cronuts, skorts. its a skirt. And shorts the world loves a hybrid. So do businesses. So, today theyre going hybrid with ibm. A hybrid cloud approach lets them use watson ai to modernize without rebuilding, and bring all their partners and customers together in one place. Thats why businesses from retail to banking are going with a smarter hybrid cloud using the tools, platform and expertise of ibm. Before money, people tools, cattle, grain, even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. Little more than seven minutes before we get to an opening bell lets get in the mad dash. We talk about ge a lot it is not the company it once was. But it has been on something of a roll in the stock market. Look at this. Larry culp, playing offense. An acquisition, in healthcare, which is one of the businesses doing well this may be a stock, wind power, renewables, gas turbines as a replacement for coal aerospace, boeing making a comeback, healthcare, cat scans, this sis a portfolio made for biden. It is a biden stock. Thats in addition to the upgrade today. The price target of 12, give me a break. That does represent 20 times what is their 60 cent interim normalized Free Cash Flow. Thats still right look, i think youll see big orders from oeing. For the 737. So aerospace comes back stronger, maybe benefits more. Youll be desperate it is going to be honeywell, it is going to be ge, raytheon, and they acquired everything so you have a moment where you can raytheon being United Technologies youre going to be in aerospace when boeing starts announcing the orders, and then if biden softens on china, and president xi wants to extend on olive branch, does he buy boeing planes this is what is called crafting a theseis. You mentioned rtx, the symbol for raytheon, not a good performer. You wanted to own oates and carrier out of the split, but not this one. No, isnt that something. And defense, by the way, the military coming back a bit. Coming back no plug power, david no nio no it is no ballard power with a big offering this morning. What sois our favorite one . Dpw. Ever since i met david, he insists on having the facts get in the way of the story. But the dpw people dont care. Were going to keep an eye on all of those names and the others involving ev, spacs, two of our initials that we like to use a lot here and theyre combined a lot we got an opening bell a few minutes away stay with us at fidelity, you get personalized Wealth Planning and unmatched overall value. Together with a dedicated advisor, youll make a plan that can adjust as your life changes, with access to taxsmart investing strategies that help you keep more of what you earn. And with brokerage accounts, you see what youll pay before you trade. Personalized advice. Unmatched value. At fidelity, you can have both. More than this 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. One thing we shouldnt be doing really is flying, right . Oh no, you should fly. I should fly . Absolutely. I have a quote here from celine gounder, a member of president elect bidens covid Advisory Board it is sort of like pouring gasoline on a fire. The problem is not being on the airplane the problem is what you do off the airplane the air cabin is very safe thats gary kelly of southwest trying to get felix salmon of axios to fly again, jim. As for the shares, it did get 4950 a few days ago. If it gets past that, it would take you back to march levels once again. Gary has the he has the data, the Empirical Data is very positive for flying. Much more positive than if youre in an Office Building that doesnt have windows. Thats because the air circulates in a plane many, many times and the air doesnt circulate in an office unless it has windows. Look, i think that were all struggling it is really interesting, were all struggling to figure out where all this new wave is coming from. And that itself is a little dangerous that we havent figured out where it is coming from it is not coming from the airlines it is just that people are remember when it was gary, i think, has been forceful all the Airline Execs have numbers. The people that follow this more than anyone is boeing and they know boeing is boeing planes are not big producers of covid restaurants produce more covid yeah. Inmeantime, journal did a piece about southwest trying to play offense when it comes to access in airports, jim, expanding to ohare, things that it probably would have never done or taken years to do in a noncovid environment. Well see about how that plays out down the road. To your larger point, jim, boeing will lead the dow at the open, up 3. 5 . How can you not feel good about boeing given the fact that theyre ready . And they have demand and you start getting a travel rally, and the next thing you know they have orders. You hear about the orders, people get very excited this stock hasnt really done anything there are a lot of companies that i think are related to travel that are just coming back because when you have three vaccines, and they do have warehouses and they can get it to you, pfizer can get to you, operation warp speed can get it to you, the vaccine is here. And it is going to go to the healthcare works, which is great, and the Nursing Homes which is terrific. Agree we get off travel, the one question i continue to have and we dont note answer is Business Travel. While volumewise is not that large, for many of the airlines, profitabilitiwise it is very important. And, you know, we all knowag kn anecdotally, i have spoken to people who travel heavily for their job, not traveling at all right now, they talk about it, they dont believe they will take anywhere near the same amount of trips, businessrelated trips i dont know if that will end up being true you may choose not to visit a client anymore a competitor does, you think i have to go too you wonder what that means when you start to look at a normalization for these airlines and then assume some sort of diminution of Business Travel of significance. I think youre very right a lot of the Companies Found out that their bottom line is enhanced by no more travel, no more big dinners, there is obviously the Restaurant Business thrives on the Business Customer who overorders and orders the caymis and charge it to the firm. I would say, no one wants to see if you run one of these companies, theyre thrilled youre on zoom why . They figure you give them covid and it is an ecosystem and until there is a vaccine, i think that there wont be a lot of Business Travel and once there is a vaccine, maybe someone like a mexican standoff, maybe someone goes and somebody else has to go to try to win business. You talk to workday, salesforce, theyre closing deals, hand over fist they are, amazing how many things have been able to transfer almost seamlessly you may be right, when it comes to clients, you may see that return to a certain extent, internally youre running one of the big investment banks and you have to go to tokyo to say hello to people, youre not doing that anymore. When zoom figures out how to do underneath and im sure theyre working webex, if they can do translations underneath, you do the docusign at the end, boom, why do we have to go anywhere you can end up buying a piece of real estate by mistake, thats how easy docusign is. Zoom in its infancy it is only going to get better and better as a service and are all the other ones i ones, i dot to leave them out, theyre only going to improve their the whole system for everybody who uses them. Yeah. But what do they want today they want the banks. Latency and i was going to get to wells wells is making its first trip above the 200 day not since march, not since february, since january 14th really . Maybe the 21st. Early part of the year above the 200 day as from sell to buy. This wells is up 1. 50 wells is driving the group we were concerned that wells is overcapitalized. Ray jay says 82 of book versus 135 for bank of america, 184 for jpmorgan, expense initiatives, charlie sharp doing it right if that stock is up 5 , you will take up the rest of the group. This is a rally based, i think, david, on the return of wells to the back to starting to get to where it could be back value soon, which is amazing this is wells. Yeah, look at that. 15 billion above 100 it is past par again a 90 billion market cap for a little while there, near its lows it is breaking out. My hats off to stephanie link like wells. Is this sustainable, though david, you know, youve got janet yellen and jay powell, theyre not going to stop it okay. I think theyre not hawks when it comes to the banks maybe you get somehow Elizabeth Warren in there. Thats not happening. No, it is not happening thats one of the it is a relief rally senator warren was not made treasury secretary i think yes you can move we dont have earnings so they can go up until we see a battle of the bad loans. But people are also playing catchup i like the she have reaschevron. Right now, dpw holdings, it has halted oh, my god it has halted for people trying to figure out what it is stop trading what is it at least ciig merger corp. , which is a rival, thats the nail name of the company, it has microfactories mini factories. Microfactories. Micro, really small. Nano. Yeah, they make tiny little ev cars. Come on remember wave ford. Talk about stocks coming back, here is an old favorite we havent mentioned in a long time let me do like jeopardy lets do it. Im not going to get it. Havent mentioned a long time. You were all over this. You did not like it. You, oh, boy, you had a lot of problems with it i give up. Viacom. Oh, i got that wrong. Yeah, you didnt say anything take a look. Look at the move that that stock had over the last three months put it up versus fox, because for quite some time, fox was hanging in there i think it may have suffered recently because of the concerns about what an outgoing Trump Administration will mean and whether or not there will be we already see this news max property doing well in the ratings, what will it mean for the fox network, which is the key for the key profitability generator for fox. Viacom has come back, i mentioned it today, also downgraded over at Deutsche Bank to a hold. They point out that, you know, it is still unclear in terms of more details regarding the companys streaming plans over the next couple of months and then the nfl, jim, which we talked about a lot, competition for which is going to be ierce going to be we would think at least some digital aspect to it that may include some of the huge names that are out there. Amazon is and well see we dont have details, i would expect they are negotiating now, i think thats true, and probably going to end up in a good place for the nfl, but how much is it going to cost viacom continues to be a question the positive is theyre in the process of selling simon and shuster and harper collins, which is news corp. , which is another murdoch company, and is in the running, but they may have an antitrust issue. 36 concentration given they are sorry, they wouldnt, bertelsmann would, which already owns which would have a roughly 36 concentration. Harper collins is after it as well talk about serious multiples in talking to the potential bidders there, north of 1. 5 billion, ten times, 155 million ebitda, that seems to have helped viacom. Youre talking about 10 overall market cap in terms of and hes selling other assets as well but i dont think the sale of black rock, that wont go very well anymore i dont think prime office space in midtown is quite what it once was. Not right now disney is giving the cover for a lot of entertainment i saw someone on twitter question the hulu. They could monetize. What do you mean . Im saying disney has a lot of things to sell if they want to. I like that stock very, very push. You do . Oh, yeah. I think we have to go to rick. Okay. Carl . Lets get to him. Tenyear, 87 basis points. To Rick Santelli hey, rick. Hi, carl. Were watching the markets creep up in yield, down in price if you remember, 82. 5 was the close we had friday. We have crept up and that close at 82. 5 was a twoweek low close, so we are building and thats very important. We all know that treasury secretary mnuchin basically taking the back stop money for the c. A. R. E. S. Programs away from the fed, the wall street journal today called it courageous that fits with my line of thinking many in the marketplace didnt like it. One thing we do know the markets didnt mind it whether you look at par claybar the Investment Grade spread chart, the hygtf, you cannot pick out a market response the markets are dealing with this, because the back stop is as essential as it may have been interpreted was never actually needed, more psychological than anything else. And finally if you look at what is going on with the euro currency, it is hovering at levels close to breaking out to the best levels since the spring of 2018, carl, jim, david, back to you. All right, rick, talk to you in a bit Rick Santelli. When we come back, the ceo of medtronics with us on the companys latest results and where covid19 fits into the picture. Dont go anywhere. 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. Medtronic out with its quarterly results. They did exceed what analysts had been expecting ventilator sales were strong but profits fell on weaker demand for medical devices elective surgeries and procedures continue to be delayed due to the pandemic. Joining us now on a first on cnbc interview is medtronics ceo jeff martha. Nice to have you, jeff and good morning to you. I want to start with the with the pandemic and where we stand right now, particularly its impact on elective procedures. You indicated on your Conference Call that weakly sales tracks are ahead of the same weeks in the Second Quarter there are pockets of more restrictions, this was your cfo and delayed procedures around the globe. Youre not seeing yet an impact from this uptick, significant uptick in covid in hospitals pulling back on elective procedures no, david, not yet. We have been really impressed with how the hospitals have really learned to safely care for Covid Patients and at the same time conduct elective procedures they learned a lot of lessons back in march and april and really innovated the way they conduct their business and care for patients and up to up so far in the last few weeks, we have not seen the recovery slow down yet and we know going forward, based on the feedback were getting from hospitals, we expect this more to continue we have built in some pockets where there might be some pullback on elective procedures, running out of space in the hospital, but we feel this is going to be limited. You do. Tell me more about that feedback we bring on a lot of hospital administrators here trying to focus on the significant the spread of the disease lately what are you getting in terms of feedba feedback, elective procedures have to be reserved . It is both. One, they believe that the severity of the Covid Patients they have been getting has been less, it trended to younger in the hospitalizations and the length of stay havent been as long and on to your point, they got to keep elective procedures going, both for the health of many patients who are suffering from, you know, cardiac issues or strokes, they really need to move forward on those, and for their own finances, elective procedures tend to fund a drive a lot of profitability for the hospital. Geoff, jim, good to see you. You too. Diabetes, thats a division i used on that market, dex com made a lot of big moves. Can you take the glucose monitor back, it could be a medtronic we can take it back were the one stop shop. We have the insulin delivery capabilities, the pump, we just bought a Company Called companion medical, a smart pen, which is a cheaper less invasive way to deliver insulin we have the continuous glucose monitoring, and we have got the world class algorithms that will give you the best outcomes and on top of all that, we have got the best service and it creates a total solution what happened to medtronic is we fell behind in sensors and we have two products that were submitting, we have one and another were submitting to the fda in the next month or so, and these two will get us back to competitive nature here and we combine it with everything else, i believe well give back to that best solution for patients and back to shared gaming mode. And one thing im really counting on medtronic to do, pain stimulation, the idea that we dont have to use drugs that we know have not worked, and have caused tremendous problem in our country with opiates, you can be the answer. Where are you . Look, the whole neuromodulation space, which talks about stimulating the brain and spinal cord to do various things like treat parkinsons disease, alleviate back and leg pain, even help with overactive bladder, this space is really taking off medtronic founded it 20, 30 years ago, created the space, others come in, the market is growing as we learn more and more about the Central Nervous system and how to, like i said, in the case of pain, that you talked about, we just published some 12 month data on a new pain stimulation algorithm that is the best data out there for back pain and just published 12 month data, we published threemonth data and the same benefits held up for 12 months and patients are excited about this, physicians are excited and were seeing a lot of growth come out of that segment. I would say overall over the next decade, youre going to see a lot of growth in neuromodulation, what you said, it can replace farm Logical Solutions and in many cases without the same side effect profiles you get with the pharma buy. Your company has benefitted from the need for ventilators over last year but given the change in profile in terms of how doctors treat the disease, not as often as with ventilators as they learn more about covid, not to mention, of course, the prospect of vaccines that hopefully as soon as possible are going to stop people from going to the hospital at all, what is your expectation for ventilators, when do they return to a more normalized pattern of sales . I think over the next year, a more normalized pattern. For us, lets keep it in perspective, it was before the pandemic, 1 of medtronics revenue, has gone up from there, but not not all that material from a medtronics our focus on ventilators was never about the economics that it is going to drive for the company shortterm thing, and really for us, it was about doing our part, just like the pharma company, worked on the vaccine, it was an all hands on deck from everybody at medtronic, in partner with a number of organizations outside of medtronic to increase our number of ventilators and increase the functionality of them as well, to do our part in contributing to this pandemic. Thats what it is all about for medtronic. I want to talk as we wrap upo your drug stents there, winner in a Chinese National tenner it. How important is china overall to our strategy . Chinas a very important part of our strategy. As the Chinese Government is really driving access to care, more advanced care like the kind of care we provide across the country, through greater segments of their population into more rural cities a huge Growth Opportunity for us weve really got to increase our investment profile there, because theres strong local competition. The government tends to favor that local competition with their reimbursement schemes and the like, but theres real innovation coming out of china as well, so it is an opportunity for us weve excelled in china over the last 20 years. Over the last 40 quarters weve had strong doubledigit growth every quarter, up until covid and we expect that to continue postcovid, but very strategic market for us, and a big growth driver for the company even with this you indicated it not being a level playing field. You still are not just want to play but are able to make returns, generate returns that youre happy with . Yes, we are, and yes, so there are some policies that favor local companies but weve got our cards, World Class Technology platforms that as we have a technological lead here and we have, you know, successfully been able to navigate ip concerns and things like that, as well as some reimbursement advantages maybe local companies have to continue to grow our business, which is now over 2 billion to grow that at double digits and were actually starting to partner with the chinese physicians themselves to innovate new products that we think will right now we import a lot of products there but starting to innovate locally with chinese physicians and i think well accelerate more growth in china. Always appreciate your stopping by. Thanks for having me, guys. Carl . In the meantime, we have the dow up a full percent, not quite enough for a fresh closing high. S p is trying to push past 3,600. Nasdaq briefly went red. Were back in a minute it is a reopening trade day. Got a lot of retail and travel leading the s p. Dollar tree up 10 plus. Russell 2000 alltime high, transports alltime closing high and the dow needs about 30 points for one of its own. rba ia ment lets get to jim and top trading. One of the stocks that hasnt worked for a long time is dollar tree today they got it all together, talking about omni channel, theyre talking about how they dont have enough inventory to meet the demand, theyre talking about a Great Holiday season, still people chasing covid products it is coming together and given the fact it has fallen so far behind dollar general, it may have more to run and i think this is an exceptional story my dollar trees are packed and i love them. David probably doesnt know dollar tree as well as i do but its good. Jim, markets definitely looking past the comp. Miss at Family Dollar. Yeah. I think whats happened, new management, talking about whenever you talk about you cant catch up with demand and you give a good forecast, thats terrific now best buy talked about no forecast and look what they did to themselves. Look what they did they had a great story to tell you about a they refused to beat their chest and here we go no q4 hurting bby all right, any knikola trying to come back from the old days, when people questioned its legitimacy they have a tremendous deal in germany, bosch, board member bosch but we have to find out maybe we can find out a little bit more about some of the deals it has with other companies who are working on it. The hide gene fuel stations a key part of their strategy as well its a great story. Close to announcing that before the short thing apparently yes, maybe bp that could be. All right skepticism . Well find out at 6 00 when were watching you, mad money, 6 00 p. M. Eastern time thank you guys. Jim, sue he later good tuesday morning, welcome to squawk on the street. Im Carl Quintanilla with david faber and sara eisen a reopening trade day. Consumer confidence on deck. Lets get to Rick Santelli yes, carl, unlike s p, the Housing Price index making alltime forever highs going back to 1987 this one is a big miss 96. 1 is our november read from the Conference Board on Consumer Confidence, much lower than the 98 expected sequentially, follows 100. 9, so we lose ground there. It is the weakest since august when we were at 86. 3 and really shows thaw the covid headlines and the way many states are dealing with new shutdowns and how its publicized is certainly taking its toll on confidence, and if we look at present situation, it actually is better than our last look from 104. 6 to 105. 9, where we really seem to drop here is expectations, moves from 98. 2 to 89. 5, so we could see and now its revisions coming in on present situation, thats also a drop. That moves from 104. 6 which i just referenced to 106. 2 so sequentially now everything is lower than we were expecting and when it comes to richmond fed for our november read, it came in at 15 and also a miss, looking for 20 and sequentially it follows 29, and that 20 on Richmond Fed Manufacturing is the lowest level also just like the Conference Board since august, when it was at 18. Carl, back to you. All right, rick, thank you. Market doesnt seem too unnerved by it dow needs ten more points for an jowel time closing high. Markets reacting not just to the process of the transition, which is officially in place but also the reports that janet yellen will be headed to treasury, under a biden white house, something that sara eisen knows well because she joined us back in april and talked a lot about the question, sara yes, it was one of the few times that shes actually spoken publicly during the pandemic and the crisis, and i think its important to go back and listen, because one of janet yellen, if she is nominated and confirmed to be the next treasury secretary, first items of business and most challenging ones is going to be the stimulus question, whether our economy needs more of it and how much more to get us through this pandemic until we get to a vaccine. Heres what yellen said on the prospect of fiscal stimulus back in april i think that needs to keep going, if this lasts a long time, they wirell need to be additional need support for Unemployment Insurance, possibly further checks to support other needs that households have i think state and local governments need more support than the c. A. R. E. S. Act provided, perhaps Health Insurance, particularly for workers who got Health Insurance through their jobs and thats been severed, those would be things on my list. Now that was back in april, when things were much more dire, as far as the economic consequences and we were in lockdown mode in this economy. Given some of the challenges we face, carl, especially on unemployment, which is her area of expertise, i think you can expect her to be an advocate for more fiscal stimulus the challenge is of course on the politics and selling it to a potentially republican senate. At the end of august, she coauthored a piece in the New York Times with jared bernstein, another biden adviser, about calling on congress to do more and specifically mentioned aid for states, she in that sound bite mentioned more Unemployment Insurance so i think thats going to be at the top of the list and potentially one reason, carl, investors are excited about it we know they like the prospect of more stimulus yes, indeed steve liesman, talking more about the implications for a treasury secretary yellen. Steve, not just about stimulus, but also the relationship between treasury and the fed, which came into pretty sharp relief last week yes, for sure, carl you know, by picking yellen to be the treasury secretary, president elect joe biden is signaling a broad repudiation, not just of the policy of the Trump Administration, but in how he went about making policy, an important overlooked part of yellens impressive resume that includes fed vice chair, cea chair, yellen was passed over by trump in 2018 to continue as fed chair. As a preeminent economist yellen is treasury secretary would also have a seat on the cabinet that follows an administration that ousted the chair of the council of economic advisers from the cabinet and also been criticized for chaotic policymaking. The acting cea chair by the way is the only member of the council of economic advisers, and yellen at the fed was a strong advocate of working with International Allies on economic issues, signaling that the biden administrations repudiation of the go it alone strategy of president trump. Yellen would be tougher on the banks than the Trump Administration likely but that doesnt concern banking analyst mike mayo. Bank stocks under the last administration have had their worst performance versus the stock market as a whole in modern history, so this idea that republican president s are good for Bank Stockholders and democratic president s are bad is just not the case over the last, you know, at least 40 years. As sara said, yellen could be expected to advocate for strong government stimulus, while the economy struggles to recover from the virus, advocate for Economic Solutions to things like climate change, including a carbon tax the question for yellen and biden, after four years of the Trump Administration, to what extent is it possible to go back to the way things used to run . Carl, i guess well get a sense of that, well go back to david here and get a sense of whether or not they can go back. Ill come back with a question, steve. Yellen might still very well have been fed chair had trump not chosen to go with powell what is your sense given they need to work together, the current state between powell and yellen i would assume its good but go to you to get a real feel. I think its probably an excellent relationship i believe that powell worked for yellen being underneath her as the Federal Reserve governor while yellen was chair, and vice chair, so i think they have an excellent working relationship i think that powell may be a little bit more centrist to the right of yellen, but fundamentally i think they both agree right now that what the fed ought to be doing is helping the economy as much as possible. I dont think theres any bad blood between them, even though powell was chosen over yellen. Powell made some very kind remarks about yellen when she left and i dont see any issues there. The question, david, becomes what happens if inflax ticks up, what happens if the economy starts to do well on its own, when it becomes thei issue of separating the treasury and the fed from where we are right now and go their separate ways thats when you get more of an issue there. Guys, i want to mention one other point not discussed as much but i dont think should be lost is the historic symbolism of this move, for the first time in 232 years, to have a woman running the treasury in this country, and i think its important right now, steve, because of whats going on in this country, which is women have been disproportionately hit by the pandemic, and especially in the labor market, which she knows very well. I think more than 2 million women are no longer in the labor market, have left, since february, and we need policies in place right now to make sure especially working moms are going to be able to have opportunities to come back into the labor market and get paid higher wages and i think its important that someone like that, who has written and spoken about it, she gave a famous speech at brown in 2017, about this very issue, is in this place right now. Yes just wanted to make that point. I agree completely, sara, and it was yellen i think at the fed who really brought employment and employment metrics to be central to what the fed should be doing on Monetary Policy. She let it run for a very long time, letting unemployment come down she began to raise rates as she got more conservative but sara, let me ask you a question. Look at yellens resume. Fed chair, fed vice chair, San Francisco Vice President , cea chair. Any two of those would be enough to qualify her to be the treasury secretary whats it take for a woman these day fs to get the job a lot more work and preparation and line items on a resume shes broken another glass ceiling, first female fed chair and potentially first female treasury secretary thats what happens in the crisis, the women come to swoop in and fix t steve, thank you lets hope theyre successful absolutely. Guys, bring in alan blinder, former vice chair of the Federal Reserve, professor of economic and Public Affairs at princeton. Alan, its great to have you back good morning good to be here good morning to you. You had nice things to say in some of the news reports about her nomination to treasury weve talked about her credibility, her rolodex, her knowledge of International Policy but there has to be an early crucible what do you think that first crucible is going to be . The first unless it gets resolved before she takes office assuming its her, which everybody does, is this crazy thing that secretary mnuchin did, canceling the Fire Insurance policy while there are fires in the neighborhood, even though it hasnt hit your house yet. Why anyone in their right mind would want to do that is beyond me i know its beyond jay powell, he almost said so sean beyond janet yellen if that hasnt been straightened out before she gets in the office, that will be job number one for her. I read some interpretations last week that the move by treasury might allow congress to put forward a fiscal stimulus bill that exceeds mcconnells half trilliondollar target, effectively, because of the giveback. Is there any Silver Lining to what mnuchin did last week i dont think so. I mean, if you think that of mcconnell, you know, more power to you i dont. I dont see this as a giveback whatsoever its quite a different thing, and just on budget technicalities, that backstop from the treasury is scored by the cvo is costing basically zero, so in temples of the way they do the budget numbers, it doesnt give you any more room the cbo looked at that and said treasury is not going to have to pay up front in this, and didnt score it as an expenditure alan, a lot of people are saying yeah, but treasury, this is so much more of a political job than being a Monetary Policy leader, and economist for a large part of her career what kind of relationships do you have as the fed chair on capitol hill what kind of interactions will she have with Senate Republicans and Mitch Mcconnell if he maintains his leadership they vary a lot from fed chair to fed chair, and from Senate Composition to Senate Composition. I dont know how much in detail contact she had with Mitch Mcconnell while she was running the fed. It wouldnt have been zero but i dont think it was extensive youre absolutely right, sara, a treasury secretary is a vastly more political job the job as chairman of the fed is trying to be as much out of politics as humanly possible, and janet yellen succeeded in that, jay powell is mostly succeeding in that, though with donald trump in the white house, we cant be 100 successful. Treasury secretary is not like that whatsoever. Youre in the middle of one political maelstrom after another and thats assuming shell be the new secretary of the secretary, thats Janet Yellens new life. Alan, its david. Back to the actual idea of relief, a stimulus, whatever you want to call it. Whats your take on the state of the u. S. Economy as we sit here right now with the pandemic spreading, unfortunately, and how much really you think would be the right number in terms of aid to obviously businesses and potentially states and municipalities so the state of the economy right now is pretty good, but teetering. You know, there are data lags but if you look at some of the nearterm indicators, including google mobility and many other things and i just heard from your broadcast about the richmond fed and there are lots of little tea leaves the tea leaves are looking a little piqued right now and its not a shock. The shock to me is how well the economy was hanging in there, despite the upsurge in covid it may be giving up the ghost a little bit we dont know for sure, or maybe a lot. So on the subject of insurance, this is a time when taking out another insurance policy would be extremely well timed, even if the c. A. R. E. S. Act wasnt running out, which it is so the c. A. R. E. S. Act is almost run out and will be finished by late next month. Youve got this Eviction Moratorium from the cdc that ends december 31st, and you got an economy that looks like its probably weakening, so to your question about numbers, if i had my druthers which is a ridiculous thought, id be thinking 2 trillionish i dont. I think a reasonable compromise should be doable if there was some goodwill on both sides between 1 trillion and 2 trillion thats a 1 trillion range, i realize. Thats the kind of thing that gets hashed out in the political arena. But i dont yeah. I dont think a number under 1 trillion that Mitch Mcconnells been talking about half that when he talks about it is enough, is nearly enough. This is a 20 trillion economy so assuming you had your druthers and got the 1 to 2, how quickly afterwards would the conversation pivot to deficit spending and debt . I think its going to pivot on january 21st. As the number of people have observed, the Republican Party has developed a seasonal allergy to deficits, and the season starts when a democrat sits in the white house and it ends when the democrat doesnt sit in the white house. So we havent heard any peeps really about deficits under the Trump Administration just as we didnt under the george w. Bush administration for eight years, while he blew up the deficit, but when obama came in, after that first stimulus, all we heard for years was deficit, deficit, deficit, and so i dont doubt that the screams about how horrible it is to run big deficits are going to be heard from the republicans starting on i guess its is it wednesday, january 21st, right, or takes over on tuesday whichever it is, the 21st. I think thats right. Shes testifily going to have her hands full, alan im sure well talk with you more about her tenure once shes confirmed. Thanks as always good to see you alan blinder. A lot more fed watchers that were going to be able to talk to coming up on the show, jm smucker beating on the top and bottom line benefitting from consumers continuing to eat and cook at home well talk to ceo mark smucker after the break. The stock is up a little more than 2 . At fidelity, youll work with an advisor to help you build a flexible wealth plan. Youll have access to taxsmart investing strategies, and with brokerage accounts online trades are commission free. Personalized advice. Unmatched value. At fidelity, you can have both. Unmatched value. 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. Best buys Third Quarter earnings are ahead of what analysts were saying Frank Holland spoke to the ceo and the guidance seems to be hurting the stock this morning a few factors here, guidance is one of them shares down nearly 6 , falling sharply during the Earnings Call guidance one factor as you mentioned but some of that fall coming after best buys cfo said supply chain issues and shipping surcharges would be a major headwind for the company as it looks to emphasize ecommerce shipping from traditional carriers from its own stores and instore pickup. The ceo said the supply chain issue specifically related to inventory that would be a headwind this poll day season. The biggest constrained areas that weve seen and talked about are appliances and computers and the kind of peripheral things around computers we felt like there was some dampingen our sales, it happened across a wide mix of products but we thought there was some level of impact to our sales. Now back to the quarter she was talking about, eps, 35 cents above estimates, 23 comps well above estimates. Digital sales, 174 higher so a blowout quarter. The drivers of the growth ironically were the same areas they expect to have inventory issues going forward, computers and appliances, along with home theater. Investors and analystshad some ongoing concerns that sales of all those items only a frx of wh fraction of what they are now because theres so much buying during the pandemic. Berry believes the pandemic is creating ail new cycle for Home Electronics in part this is more people who will want to upgrade and get the latest and greatest its amazing the penetration of smart home devices only 33 of households and so there is still this amazing amount of opportunity for people to use technology to make their life better and i dont see that just going away at the end of the pandemic. As we mentioned, best boy shares down today but up 30 yeartodate and more than doubling from their march lows sara, over to you. Frank holland, good commentary, thank you. J. M. Smucker reporting a beat on the top and bottom lines thanks to more consumers cooking at home during the covid pandemic, raising outlook. Joining us is j. M. Smucker company ceo mark smucker mark, good to see you again. Thanks for joining thanks for having me, sara. So what gave you the confidence on guidance that youre going to continue to see these strong sales gains continue well, sara, overall our business continues to be very strong if you look at all of our core categories, whether its coffee, our consumer foods, which is Peanut Butter and jelly and uncrustable sandwiches and pet business in cat and pet snacks was strong in the category, we grew 80 of our portfolio and well over half of it gained shares, so that obviously gave us the confidence. We know a little bit more about the future obviously and so feeling that we can continue to deliver. The stock is up 1. 3 . Its done pretty well this year, up 13 or so, but nothing extraordinary like some of the other stayathome winners seeing sales gains because of the pandemic mark, wall street doesnt seem convinced that this can continue once we get a vaccine, once people are out of their homes. What are you telling them . Well, quite frankly, as weve seen, weve gained millions of new households, even just in this quarter alone our Coffee Business including folgers gained net 1. 5 million more households than last quarter, and as weve seen increased repeat purchase and now our return to investment marketing spend, we have more confidence that these consumer also stay in the franchise, and we will keep our brands sticky, so to speak. Coffee is an interesting one, because the comeback of folgers and dun kin, are millenials going to change their habits for so long craft coffee, going out to local Coffee Stores do you really think that wont continue, once the economy reopens and people have more confidence to go out and go back to work . Well, what weve seen is consumers have actually started new habits sure, they will go and consume coffee out of the home theres no question, but given the fact that consumers have become comfortable brewing at home, whether thats through k cups, our k cup business is actually tracking two times faster than the growth of that segment and its a fact that bustello is consumed in large part not only by its largely latino base but its growth is coming in large part from nonlatino millenials, and so there are a lot of new consumers across all demographics that are consuming our coffee brands, g including dunkin and folgers sorry for harping on coffee more but do you envision the product category at your Company Getting broader, having to go more premium, anything to keep it what are you going to do to keep it sticky, as you say and how much of that, how much is that going to cost . Sure, first of all, we play in every segment so were in k cups, premium, which is the bagged coffee and mainstream which is largely in canisters. The entire portfolio grew in the quarter, and we have continued to ensure that our portfolio matches the trends, and so clearly were benefiting from our k cup business keurig continued to increase brewer penetration and our brands exist across the entire k cup spectrum, so we believe were very well positioned to continue to grow our Coffee Business mark, what are you seeing right now at the grocery in terms of stockups, as covid cases continue to reach record heights in this country, and we are seeing the new imposition of restrictions, what does that look like versus where we were in march and april, and how confident are you that youre going to have the inventory and the groceries are going to have the inventory so we dont see empty store shelves . First of all i answer that in a couple of ways number one, the industry is better prepared in this wave in terms of making sure that all of the pieces of the supply chain are working well together. Weve had fantastic collaboration with our customers, our trading partners to ensure that we can maintain continuity across that supply chain, and quite frankly, even in the last couple weeks, at the beginning of now what is our Third Quarter, we have seen increased orders, so just preparedness, ensuring that the supply chain and our supply of food to the nations consumers is secure and safe, and consistent finally, on pet food, mark, why is the cat business growing so strongly, and how do you forecast the entire business now that the pet picture has changed with so many people adopting more and taking care of their loved ones at home well, first of all, the success of our pet business really rests firmly on three segments, so you have cat, pet snacks, and dog food, and clearly, we have overperformed in cat food, were doing very well in pet snacks as well, and those have really driven the performance on pet, and you are right, we have seen now there have been increased adoptions. At the beginning of the pandemic we saw pets going into shelters and now seeing more coming out cat specifically weve invested, were on air, were obviously marketing our meow mix brand and a lot of new advertising there and connecting with our target consumers. Very hot cat snacks business. Mark, thank you. Mark smucker, good to talk to you on earnings day. We appreciate it thank you so much and happy thanksgiving happy thanksgiving. David . All the things we learn here at cnbc. Who knew about those cats. Lets get to our etf spotlight, the s p retail etf, the ticker is xrt, up over 30 this year. Of course its getting a boost today. Weve seen dollar tree which reported higher than expected Third Quarter profits adding to the index. Total comps above estimates while sales at the Family Dollar brand of stores actually disappointed shares of dltr you can see it there up double digits over 10 . Squawk on the street back after this sales are down from last quarter but we are hoping things will pick up by q3. Yeah. Uh. Boss doug . Sorry about that. Umm. What. Its. Um. Boss you alright . [sigh] [ding] never settle with power e trade. It has powerful, easytouse tools to help you find opportunities, 24 7 support when you need answers plus some of the lowest options and futures Contract Prices around. Dont get mad. Get e trade and start trading today. 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. The men have been taken over yonder. Wheres guy . I think im his new pet. [ whimpering ] we have to save them. Thunder sisters. Thunder sisters thunder sisters [ gibberish ] [ gasps ] [ suspenseful music playing ] [ screaming ] welcome back, everybody im sue we. Here is your cnbc justice up in date Los Angeles County supervisors are expected to discuss a stayathome order at their meeting today, this in response to a surge in covid19 infect n infectio infections in malaysia, the Worlds Largest maker of rubber gloves deliveries may be delayed for more than four weeks after 2,000 of its workers tested pass tifd for the covid. Frances sbeer orminister ordered an investigation of its police after officers were caught on camera tossing migrants out of tents while evacuating a protest camp. The move comes as Lawmakers Debate a law that would expand police powers. And new yorks first and only black mayor has died. David dinkins took office in 1990 at the time the only black mayor of a major u. S. City he worked to heal the citys racial unrest and lower the crime rate David Dinkins was 93 years old you are up to date thats the news update this hour carl, ill send it back to you all right, sue, thank you very much. We are obviously on dow 30k watch. We got to 29,996. 17, and have settled back just a touch. Well let you know if we get there. Were back in a moment hats new . Audreys expecting. Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. To help you build a flexible wealth plan. Youll have access to taxsmart investing strategies, and with brokerage accounts online trades are commission free. Personalized advice. Unmatched value. At fidelity, you can have both. Just about hour into todays trading session. The markets continue to digest the news of bidens cabinet appointees, the expected announcement of janet yellen as treasury secretary we are seeing record intraday high for the dow, stepped off that level about four points away from dow 30,000, all sectors are higher in the s p 500 energy is up another 4. 2 in todays session. Lets bring in krishna and keith lerner, chief Market Strategist for more on the markets and the d economy. Keith, the cyclical groups have lagged the market for most of the year until recently, energy, financials, industrials. Who is not rallying, apple, microsoft, some of the usual suspects is that Economic Optimism justified in the sector performances yes, we think it is even though the short term is somewhat uncertain with the covid numbers going higher, we may see somewhat of a slowdown maybe over the next month or two. I think the markets got this right. We are going to be looking forward 12, 18 months higher and the economy should continue to recover and the other thing thats important is we think were in a very early innings of a multiyear economic expansion and typically stocks rise during an expansion about 85 of the time stocks rise when the economy is in expansion and weve been saying for several months now we are in a multiyear bull market and getting past some uncertainties as far as the vaccine, the election, youre seeing this release of tension and thats helping the markets. That describes the action today, krishna what is your assessment of the Economic Situation in the near term and in the longterm . We just got a Consumer Confidence number, showed a few points of a dip in terms of confidence right now right, so the general expectation is that the next few months could be quite tricky now, the u. S. Economy still shows surprising resilience. Youve had recently good set of pmis for instance, coming in, and so we do have some Forward Momentum going through that said, were running into this, you know, the drag from this resurgence of the virus, were also exhausting the fiscal support from the c. A. R. E. S. Act so we should expect to see some swelling ov slowing over this period ahead when you look beyond that i think the market is gathering additional confidence that with the vaccines coming through, were going to look at a much more vigorous and sustained cyclical expansion taking hold by the middle of next year, if not before keith, i wonder, im seeing a lot of modeling right now on Vaccine Distribution, bull case, q2, bear case past 4q really i just wonder how important is that going to be in the coming weeks and if were counting on an explosion in consumption by summer, whats, what do you think the maximum drawdown we could see in the next couple of months might be . I think theres certainly going to be bumps along the way. Its not just a smooth process we have sentiment that got hot short term so i expect to see some bumps i dont expect any setbacks will likely be no more than the 5 to 10 range because there is so much money taken out ahead of the elections. People are getting back on and if you think about it, does it matter if it second or Third Quarter . Stocks are businesses based on multiyears of cash generation so i think yes the market will be disappointed short term but well get to theres light at the end of the tunnel, and we think that equities still look really good relative to other assets and if we see some of the setbacks well use that to move into some of the cyclical areas and positive on small caps i know small caps have had a big run the past month but a small turn thats still underperforming by about 30 in the last three years and thats a better way in our view to play a cyclical reflations rate but we want to have the growth names to offset things when we have some periods of unevenness, as you just mentioned lets hit two sectors, keith, working very well today, best performers, energy and financials, and for the month of november, i hadnt realized this, energy up 37 , banks are the second best performers, up almost 20 those were the two sectors that were at least conventional wisdom most scared of a Democratic Administration coming in, energy and financials. Theyve also been among the hardest hit over the last few years. Are those the right picks . We prefer the industrials and materials side we did add to regional banks a few months ago, sorry, a few weeks ago so thats relatively attractive as a whole. I think the banks in order for them to outperform you have to see rates rise much more from here and were skeptical how far theyll rise short term. We prefer to play through the industrials, materials and small caps on the cyclical side. Finally can i jump in on that one as well janet yellen yeah, please, do just want to get your thoughts on yellen as well. I think yellen coming in just gives people confidence that this is going to be an administration of sober, professional experts, not an administration of idealogues yellen isnt the person out there to bash the banks or anybody else in the private sector, although i think shell be looking at lessons from the stress in the markets in the spring and regulatory things that need to be tightened up at the margins here to make the system safer i think when we look at rates, i would very much concur with what was just said. If the world continues to move in a positive direction, yields are ultimately going to move higher, the curve is ultimately going to steepen but i dont think the fed wants that to happen too much any time soon. We still have this difficult patch to get through, and i think the fed wants to make damned sure we can bridge to the other side of this before we see a really big further move higher in those yields, so Bank Investors will need to be patient, i think got it. Krishna guha, great to have you here, thank you, keith lerner, good to have you as well thank you thank you and a happy thanksgiving to you. Have a good holiday happy thanksgiving to you fwoet. Well continue the discussion over bidens pick potentially here of janet yell nl as treasury secretary later today former treasury secretary jack lew on a cnbc interview, the right person to talk to about news like this squawk on the street will be right back were on dow 30,000 watch, about 29,970 at the moment looking at intraday record highs. Well be right back. Taxsmart investing strategies, and with brokerage accounts online trades are commission free. Personalized advice. Unmatched value. At fidelity, you can have both. On tradingnation. Cnbc. Com, we look at the weaker dollar and what it means for emerging markets in 2021. Quk t seenle. Sawonhetrt will be right back welcome back to squawk on the street. I am and dominic chu stocks are extending yelleds gains with the dow at a record high and s p 500 at session highs right now. The Technology Sector is lagging a bit but every sector is in green, positive territory and energy you can see here by far the best performing sector again today. Now up more than 10 in just the last two days on track for its best month ever. Now the move higher comes as crude prices reach highest levels since august, helping to boost many of the large and badly battered Oil Companies like apache, like occidental petroleum, marathon oil. Well watch that rally in energy and oil price, still very much a laggard on the year, town 35 as a sector david, back over to you guys at squawk on the street. Thank you, dom. Sure. After the break, the challenge of the Vaccine Distribution pipeline. Our seema modi is live out in the cold and has the details before we talk about taxsmart investing, whats new . Audreys expecting. Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. Tget an iphone 12 with 5g on us on every single plan. Switch now and save 20 on your bill vs. The other guys. Thats right. Iphone 12 on us. Its time to holiday on with t mobile. As a potential vaccine comes to market, storing it at subfreezing temperatures will be a critical part of the supply chain. Seemo modi is at a thermo king truck facility with more reporter part of the challenge is storing vaccines at ultra low temperatures this truck can house around 208,000 doses inside, it can get down to negative 30 degrees celsius and with dry ice can meet the vaccine temperature requirements thermoking is a brand of train technology, a 34 billion Company Along with other industrial Companies Like carrier o long with other industrial carries are in operation with pharmaceutical joints and Third Party Logistic players like fedex to finetune the cold Storage Options including a super freezer which was originally designed to transport tuna from china to the u. S. And now is seen as a viable option for hospitals and mobile clinics. But this specific stand alone container needs to be managed effectively to ensure that the vaccine does not spoil if you have 1,000, 5,000 vials out, you know, deep freeze or out of refrigeration to room temperature, you have to have the demand right there of that number of people so you can imagine in a rural setting, you might not have that density of people at one point in time. So you have to be very careful about being able to pull these out in smaller doses, let them thaw out and administer them in the time alotted which we think is about six hours the super freezers become even more critical in markets like latin america, parts of asia you have a combination of Tropical Temperatures and poor infrastructure which will underscore the need for the cold Storage Facilities to extend the period of time that vaccine can be held at a stable temperature. Cold storage in general, guys, about a 7 billion market. And its actually growing pretty fast because of not just this requirement for vaccines but because more consumers are buying groceries online. Therefore, the need for the trucks to hold food for that last Mile Delivery back to you. Thank you interesting. Well see how Health Systems are preparing the vaccines and, of course, dealing with this cold storage requirement. Joining us is northwell ceo. Cold storage say key consideration here you are getting guidance on all the things, susan, you need to know in terms of being able to effectively distribute the vaccine to your ownpersonnel and to people as well in the communities communities in which you operate . Not getting the guidance we need yet from the federal and state governments. And there are problems in addition to cold chain there are problems of prioritization, whos going to get the vaccine when and in what priority there are problems of documentation once you get first dose, how do you make sure the patient gets the right vaccine and the second dose in the right amount of time there are logistical challenges. You talked about the trucks bringing the vaccine but there are a lot of challenges in Health Systems they need more freezers. Theyre buying dry ice theyre buying Subscription Services for dry ice so lots and lots of challenges this will be, you know, the most monumental supply chain channel. Im getting a little worried listening you to obviously, as you say, this is a unique situation in which we find ourselves but would you expect somehow that youd be getting more communication . And where should it be coming from the state and local authorities or directly from the federal government well, i think people are waiting on the eua, the authorization. Once they get that, i think the prioritization pathway will start to rollout we just have 50 states, lots of local jurs ductiisdictions, lot providers like michaels northwell and were working with our 4,000 hospitals and Health Systems to help them plan. And i think its all going to be rolling out here over the next few weeks and months i think youre the largest Hospital System in new york with operations across the northeast. How have you been preparing . Do you feel that the guidance and communication youre getting from federal and state authorities is lacking like susan . I agree with susan that this is going to be complicated and we do not have all the guidance yet that we need but we do need we do know certain things we know were going to get a vaccine in the next month, next couple of months we know were going to have multiple potential vaccines. We know that we have to have the Freezer Capacity and we know we have to have the distribution network. So, for example, inside northwell at the moment, i have 37 freezers. I have 19 freezers that can manage the vaccine at minus 70 degrees. And i have 17 freezers that can manage the vaccines at other various temperatures and all of those freezers that i have right now inside northwell have the capacity to hold 7. 7 million doses of the vaccine, almost 8 million doses of the vaccine and we have these freezers distributed across our Health System geographically in the region and i no he that tknow that thes working and im working with the state as well as all other Health Systems in the region to develop a met wonew york state e have distribution. The other problem here, of course, i know susan will agree with this is that this vaccine at least the first one is coming out has to be mixed. It comes in a solution and it just doesnt come like you get the flu vaccine where its in a syringe and can you automatically give it. You have to have the staff that can mix this vaccine properly, put it in a syringe properly and then administer it properly and after its administered, the person that gets the vaccine has to stay around for about 30 minutes because there can be some reactions to it and also, its a two dose vaccine. So it doesnt really work until you get the second dose. And that is three to four weeks between the first dose and second dose. And that is the Data Management issue that susan referenced. It is going to be very complicated. This is going to be complicated but were going to get it done because we have no choice. You have no choice. The susan, let me come back to you. You have no choice im trying to understand though, would you expect there to be more dialogue right now or is this kind of where you think i mean, obviously, the vaccine not yet available. But it will be in number of weeks. Is the communication effort lagging or is it sort of where youd expect it to be . I think it follows science. So i think they have to get the emergency authorization in place. I think people like michael and all of the premier Health Systems are planning theyre buying freezers and dry ice and debting tgetting technoy systems in place i think this is natural. If you really think about the mature regular flu, the regular flu every year takes three months to get into distribution. So i think we are going to have to be patient. We are going to have a lot of moving parts and i think that Health Systems are going to be the Central Place where the technology, the distribution, the nursing staff, one of the things that not a lot of people are talking about is the shortage of gloves we are doing a lot of forward buying and trying to find additional suppliers because we believe there will be a shortage of exam gloves which are not coming in the kit with the vaccines you actually need special gloves for these ultra cold freezers. And so there are a lot of moving parts. But i think it is following the science and i think that when you have different jurisdictions, you have a lot of plans of attack. Well rely on both of you to come back and give us updates on how its going have to end it there thanks to michael and susan. Squawk alley srtrit teth baktas gh we did it crowd cheering [narrator] wherever you start, snhu is where you can finish. crowd clapping crowd cheering here we go. [narrator] and its it. [group] yay [narrator] you did it, high five Southern New Hampshire university. [man] that gets a hug. laughing look at that masters degree, i did it i did this for my children. I am very proud of myself. [narrator] finish your degree at snhu. Edu. This was the theater i came to quite often. The support weve had over the last few months has been amazing. Its not just a work environment. Everyone here is family. If you are ready to open your heart and your home, check us out. We thought for sure that we were done. And this town said not today. Before we talk about taxsaudreys expecting. New . Twins and this town said not today. Wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan