Welcome to closing bell, everyone im wilfred frost along leslie picket in for sara isen today. Nasdaq holding on to some gains ahead of the holiday tomorrow. Pain in the labor market as new Employment Data underlines how tenuous the economy is nasdaq higher, growth out performed value. Energy under some pressure for a change after a huge surge in november and weve seen strong numbers from Corporate America mastercard said spending remains steady gap the counterpoint that stock is down 20 today alone. 59 minutes and oneday holiday coming up, of course, tomorrow the dow is down 0. 6 . Coming up on todays show, Website SecurityCompany Cloud flair shares are up. Well speak to the ceo plus, riding with unicorns well talk to Founders Fund keith rabois Steve Liesman has a look at todays economic data. Mike santoli is tracking the market action. Deir deirdre bowsa has details. Steve, start us off with the economy. A busy day today. Yeah. The Federal Reserve earlier this month at its meeting discussed asset purchase but saw no immediate need to adjust i think a bit of a disappointment to markets that might have been expecting news at the upcoming december meeting. It could warrant a change to asset purchases and did see downside Economic Risks from the virus surge, as well as a lack of fiscal policy it said emergency facilities, the ones that secretary mnuchin said he was not continuing, were serving as an important backstop to the economy and some of those wanted to see those extended beyond year end. I imagine one of those was fed chair powell a slue of data showing progress and pain in the economy. Here is what weve got rising jobless claims, which might have been an early sign of a virus surge taking a toll. Business investment was rising, although at a slower pace. Consumer income declined thats because government benefits rolled off. Salaries, on the other hand, were up. Spending was up overall. Savings were higher. Were watching that, but declining. Could be a sign of caution on the consumer, but they had the means for spending on the holiday housing. No other way to put it, through the roof on those numbers here on this thanksgiving eve day, lets remember, Dow Jones Industrial at an alltime high, latest data showed 21. 5 million americans receiving some form of jobless claims it rose since september. Remember the neediest on this holiday. The early read here of all this data is commerce to be sticking for their call of strong growth here, expecting the worst of the economic pain from the surge to show up in the First Quarter of next year before give way to better vaccine injected rebound in the next quarter. Steve, in the minutes, was there anything with regard to tonality from fed officials about the fire power that they have left, if there is no movement on fiscal stimulus in washington so thats a great question. I think that explains, without saying so, its imputed or you could infer it from the reading. Theyre doing a lot, 120 billion a month. Thats nothing to shake a stick at theyre not making a change at all to this. And i think they want to see how things shake out Downside Risk from the virus surge and, as you say, lack of fiscal policy. The fed, by the way, those emergency lending programs, have gone way at least for now. I think its holding back. I think that is the major source of its firepower right now. Steve, thanks so much for that pivoting now to the markets, the dow pulling back after yesterdays recordsetting rally. Mike santoli tracking the action as always. Hey, mike. Yeah, wilf. Modest giveback of those gains markets have been pretty hot going into today cooling off somewhat the dow did slip back below 30,000 s p, year to date, 3620. Spent the entire day today above 3600, the first time thats happened slipping from record highs but still staying right near those records. You could argue that maybe you havent decisively created a new range outside of this existing trading range. Its getting a little bit soft, kind of ground under foot in the market at the moment well have to see if it works off these overbought conditions, go in sideways or if we get another push higher because we have that seasonal strength. A couple of ways of looking at exactly how the market is looking to work through this weakness to better times ahead take a look at the stock chart of walt disney first, take a look right here, both telling you the same story. Xli, industrial sector of the s p, this goes back ten years. You see this massive jump. Earnings went away were now maintaining it forward 12month earnings includes the Current Quarter and first three of next year, getting you to that Recovery Period some of this is boeing boeings earnings have gone away some of it is stocks like ge but Standard Industrial stock like caterpillar, theyre above 25 times forward earnings, arguably already pricing in earnings snapback last year. I want to take a look at disney, too. Its made a round trip back to its record high. A little over 150, giving some of that back yesterday thats a remarkable looking chart when you consider no box office earnings, very little in the theme park earnings. Theyre losing money in the theme parks and the market says its okay, disney plus is giving some back. It shows the markets willingness and eagerness really to look toward better times. This pullback today is very modest, given the run weve had for the dow and the s p. What are the bond market movements telling us, when we have slightly worse than expected data as we have had over the last couple of days the bond mark is showing that the market of rule is not too concerned about the outlook for economic growth. No. Really, the bond market has not been rattled by that, i mean theres not been a flight into treasuries yields are holding up okay similar story being told by equities perhaps in a somewhat milder form. Bonds are willing to say we think its going to get a little bit better even the fed minutes arguably. People are expecting a lot more buying on the long end that could be affecting it slightly here, too pretty much that trend is intact. Good stuff. Mike, thank you. Now to the big deal news of the day. Perhaps of the quarter salesforce in talks to by slack. Slack Share Holders loving this. Salesforce not so much deirdre bosa has those details. Exactly adding salesforce is in talks to acquire slack, according to a source familiar. Keep in mind salesforce also reports earnings tuesday slack shares have soared on the headlines until today, though. It has been a relative underperformer among the workfromhome names as it faces very fierce competition from Microsoft Teams. Salesforce, for its part, has been very active on the m a front. Tableau, mule soft just under 17 billion before that surge it would represent a major move into the collaboration phase and maybe a combined offensive against Microsoft Teams. Potential tieup, not seen as a home run to everyone, particularly salesforce investors. Evercore says convincing investors of the merit of this deal will be challenging, concluding this is not the right time, not the right target back over to you guys. Dee, if this deal were to go through from the slack perspective, would it be from a position of strength and selling at a massive premium or perhaps slightly from a position of weakness, needing the help of a big donor. Theyve been struggling against the Microsoft Teams offensive. They just went public last year. We dont have details around the price. This morning, that company was worth 17 billion. It is worth considerably more after that nearly 30 surge today, wilf. Deirdre bosa, thank you for that well talk about that after the break. Shares of cloud flare up 300 this year as the company gets a boost from the workfromhome tre trend. Well discuss the rapid rise with their ceo next. Youre watching closing bell on cnbc. 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. A livcustomizeperd value. Iquickbooks for me. Okay, youre all set up. Thanks that was my business gi, this ones casual. Get set up right with a live bookkeeper with intuit quickbooks. 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. Youre choosing whento get connected and thto xfinity mobile,today. To the most Reliable Network nationwide, now with 5g included. Discover how to save up to 400 a year with shared data starting at 15 a month, or get the lowest price for one line of unlimited. Come into your local xfinity store to make the most of your mobile experience. You can shop the latest phones, bring your own device, or trade in for extra savings. Thats simple, easy, awesome. Visit your local xfinity store today to ask, shop, discover the latest on xfinity mobile. Welcome back cloud flare on a tear this year, up more than 300 . One of the beneficiaries of the workfromhome trend with more than 3 million customers worldwide. Joining us now, cloud flare cofounder and ceo matthew prince youve seen revenue jump clearly from this workfromhome trend can you explain to our viewers exactly how youve been benefiting during this time . Cloud flare has built the next generation network. Our customers, which range from individual developers to some of the largest corporations in the world, use us protecting their online presence, an app, website, or protecting their mobile workforces, increasingly working from home. Our network ensures that they are secure, available, reliable and fast, wherever they are in the world. In terms of cash burn, youre still cash flow negative, not profitable capex as a percentage of revenue still pretty high, especially relative to other cash peers. Weve shown very strong leverage in all areas of our business and we are building our own network, literally building a cloud, running on top of somebody elses cloud. Its a more capitalintensive business than some others. We believe that gives us a longterm, sustainable, durable advantage against others that again are running on top of someone elses network we think weve been able to show that we are on a path toward profitability and we continue to invest in order to generate the returns that weve had. To what extent, matthew, do you think that overall intent traffic and with it, as well, spend on Cyber Security has brought forward demand such that for the next two, three, four years maybe we see a plateauing of the levels spent compared to growth we think that the growth weve had is not driven by onetime usage event we do think that theres been a dramatic shift where the world has gone away from buying the Traditional Hardware thats used more to provide security in the past to turning to Services Like cloud flare in order to make sure that they can be secure this is a dramatic shift in the way that the world secures its networks, and were proud to be part of that shift. Way before the break, matthew, we were talking about the potential tieup between salesforce and slack do you expect more consolidation in the Software Space tirksly y particularly as it pertains to Cyber Security companies that were legacy Cyber Security providers that were selling box software that struggle in an increasing services market. We designed cloud flare to be a standalone businessthat can thrive over the long term and we think we have a differentiated product that can compete for that long term so, you know, i hope that stewart and mark, if that deal comes through, can be a formidible force at creating one of the future giants of the Software Industry, but we think were an independent company for the foreseeable future. Earlier this week, matthew, we saw cable company, cnbcs parent company, comcast, start to charge people based on the usage as opposed to just all you can eat type deals do you think the cable companies, teleco companies will start to take more of the profit pool in the next few years their share price gains have been positive but minute compared to Companies Like yours. No. I think what we largely partner with those companyies rather than competing with them. I do think that nobody likes to be surprised by their bills, and the usage based pricing is something that causes people to grimace whenever they see that and in the Cyber Security space, the real problem is, if you get attacked and all of a sudden your provider sends you a larger bill, that feels almost as bad as the attack itself we, from the beginning, have had a fixed base pricing that our customers love thats something that we think is one of the real differentiators of our business in the space. And subscription models have also attracted investors we had a board up a little bit ago that showed all the plays that have done tremendously well this year and have some investors calling that space a bubble, given the valuations relative to forward revenue at this stage would you agree with that statement . Are you a little bit concerned about the multiples youre seeing among peers in the Software Industry . You know, were building a business for the long term and dont spend a ton of time speculating on what our share price is at any given moment but we believe we have a durable, sustained advantage in the market that we are continuing to win customers, continuing to deliver solid Revenue Growth so were excited for the future and excited for cloud flares business. 2020 has been good for cloud flare. Thank you again, matthew prince, for joining us. Thank you. With about 40 minutes before the bell, dow is down. 5 , s p down about. 1 still ahead, well speak with venture capitalist keith rabois, his take on airbnb and why hes leaving San Francisco, ahead its been a tough year. And now with q4 wrapping up, the north pole has to be feeling the heat. Its okay santa. Lets workflow it. Workflow it. . With the now platform, we can catch problems, before customers even know theyre problems. Wait. A hose . What kid wants a hose . fireman . Says hose. It says horse not a hose cedric get over here now our people can collaborate across silos, from across the globe. So hows the new place . Its a 4 bed, 2. 5 bath igloo. Its great yeah, but you have to live in the south pole. Sir. Wait, are you sure . Yes, were that productive now. You hear that . the kids get twice the presents about time 2020 gave us some good news. Whatever your business is facing. Lets workflow it. Servicenow. Under 40 minutes left in the session. Lets have a look at International Market movers, canada goose getting a downgrade from btig from sell to buy company to warmer temperatures, that stock down 7. 6 another retailer on the move, nordstrom, reporting 1. 6 billion in online sales for the quarter, which accounts for. Coronavirus pandemic, americans are hoarding their reward points. Kate rooney has the details. Kate, i have been hoarding my reward points. I cannot wait to hear more about this story. Youre one of many people, apparently American Express has added perks this year to let members spend those points on things like amazon or groceries. People, for the most part, are not taking them up on that at a conference recently, am ex cfo says theyre not redeeming points for retail and stocking up on them instead its a sign that people are just waiting to be able to travel again. A travel boom after covid would be a muchneeded boost for those major Card Companies travel and entertainment spending was down 70 year over year for amex. It tends to be unique for amex customers who may be more affluent and dont need points to spend on those daily items. Devaluation, with airlines in a crunch for cash, theres nothing stopping them from trading how much those points are worth. If there is this pentup demand to use points in the future on things like travel when the world, hopefully one day, goes back to normal, what would that mean for Companies Like amex . Could they take a hit as people all kind of cash in their points at once . The ideal outcome for amex, mastercard and all these guys is that people are able to travel and go abroad, for example, crossborder payments is one of the most highly profitable forms of payment for these Card Companies. If they say theres people going abroad and using some of those travel points but they go to europe and start spending more, all of that is good for the Card Companies. Youre right if they have all of these points stacked up, it might not mean that actual spending directly on the flights. Well see. They are just desperate for people to start traveling again. You said that the other credit Card Companies arent having the same issue with people hoarding their points what are people spending things on right now its interesting. Its a little more split chase sapphire is another really popular rewards card people are spending it on things like pelo it on theyve done a ton of marketing in those areas, too. Groceries, athome fitness and things like streaming, for example. Kate rooney, thanks so much for that. Still to come, black friday right around the corner. And its bound to look a lot different this year. Well head to new jerseys multibillion dollar American Dream mall to ask how theyre planning to keep shoppers and workers safe. Check in on bonds. Mixed picture of treasuries today, tenyear yield around. 088 back in