along with kelly evans, i'm tyler mathisen and here is what is on tap for a busy wednesday stocks are under pressure yet again today. the dow down more than 100 points as treasury secretary steven mnuchin and speaker pelosi are at an impasse on additional stimulus. we will have the latest details on where those talks stand plus, it is a bank boom and bust goldman sachs beating earnings expectations the stock up about 1%. but bank of america and wells fargo, they are both sharply lower after their reports and we will tell you what it all means

for an earnings season that is beginning to unfold. later, the rush is on as apple unveils its new 5g enabled iphone are the stars now aligned for a super cycle that wall street has been waiting for for apple "power lunch" starts right now stimulus negotiations hitting a wall once again as the two sides are stuck on whether to do one big bill or several smaller ones elon has the latest for us >> there will be no relief before the election. we knew this in our guts, we knew it by looking at the calendar and today treasury secretary steven mnuchin acknowledged it publicly during a speech for the milken institute. >> getting something done before the election and executing on that would be difficult just given where we are in the level of details

we're going to try to continue to work through these issues >> reporter: now, this is dispute the fact that the senate will still go through the exercise of voting on a $500 billion package of targeted relief next week that's much less than what democrats are asking for mnuchin said there are not just money issues, there are also policy issues. the white house has been adamant about liability protections, which democrats don't like and mnuchin said that house speaker nancy pelosi rejected an offer for helping just the airlines the treasury secretary and the speaker of the house did talk over the phone again this morning for about an hour. her office called the conversation productive, and we're going to talk again tomorrow but guys, mnuchin also acknowledged today that the politics have taken over back over to you >> appreciate it the latest on the talks in washington stocks have been sliding throughout the day in part of the stimulus news and the earnings from banks aren't

helping. let's get to bob pisani for more >> let me show you the s&p 500 we were flat-ish until about 11:30, 11:40 eastern time. that's when secretary mnuchin made his comments that it will be difficult to get a stimulus bill done before the election. you see them drifting into negative territory there were some problems even before that. not surprisingly, stimulus sensitive stocks, auto stocks like ford and gm, some of your retailers, for example, moved down they were mostly trading to the upside but interestingly, even other sectors like work-from-home beneficiaries that are a little less sensitive to the stimulus talk, all dropped as well. so lowe's, target, ebay, they all moved into negative territory. not much, but they were positive on the day and then also even the big momentum names, the mega cap momentum names, apple, facebook, microsoft, alphabet all moved into negative territory quickly.

in other words, the overall market moved down, not just stimulus sensitive stocks. as for the earnings, the good news is this, going into earning season we had two dozen companies, including fedex, have terrific numbers, beats way above expectations, with the exception of wells fargo, all the banks have had good numbers, above expectations wells fargo was the one disappointment the only one up on the week is goldman sachs which had a blow-out number overall. we've got good numbers from the banks and yet nothing is really happening. my sense is we're going to need stimulus and a lot better guidance from companies going forward to really get stocks to continue to move forward back to you. >> bob, thank you very much. both of our next guests expect a strong earnings season, but if that's the case, will it be enough to lift stocks if there is still no stimulus coming out of washington david l we've the senior portfolio manager at river front investment group

david, let me begin with you and just sort of pose the question that was in our introduction there. how deeply might the lack of a fresh stimulus package hurt the market, if at all? or has the market already priced in the idea that it ain't coming before the election, it may come afterwards or it may come in december or anuary >> yeah, tyler, i think at this point the market understands that getting a stimulus package before the election is pretty unlikely so, you know, that being said, there could be a little bit of downside related to that, but i think the important point is that the market pretty much knows that a stimulus package will be coming, so any downside related to this is likely to be fairly limited and the size of the stimulus package, the other issue, the size and timing of the stimulus package, is going to be somewhat contingent on the election outcome. so i do think they're going to be in a choppy environment, playing the odds around

different election outcomes, and that's really going to be one of the main market dynamics over the next several weeks. >> let me turn to kevin and ask a similar question if we fundamentally take the idea of a rescue package or stimulus package off the table for now, what is left, then, are earnings and the earnings, this earn season look like they're going to be pretty dog gone good but those are backward looking, as the market looks forward what does it see? how is it discounting future earnings and the future of the election outcome >> well, when you look at the market right now, it's been uber focused on stimulus, obviously and the earning season thus far has gotten off to a relatively good start going into or looking forward into 2021, you're going to see earnings go up, but they're only going to be up about roughly

4.5% from where we finished 2019 and i think that that is where the market is focused, that they know that you're going to see earnings go up, but they're not going to be substantial. it's basically getting us back to where we started 2020 so with that in mind, the market has really been priced for stimulus it is all about stimulus it has the support of low interest rates as the fed has clearly stated to us, and it has the support of the monetary stimulus that the fed has given. and now the market is really looking for the fiscal stimulus. >> let me just pause and ask a question did i hear you say that year over year 2020 corporate earnings will be up 4% from what they were in 2019? >> no, we look into where the estimates are for 2021 right now, they're calling for roughly $164 and so that is really only up

about 4.5% higher than the s&p operating earnings were in 2019. >> so you've got basically into next year, sort of flat earnings growth, and, oh, by the way, a lot of that earnings growth, am i wrong, kevin, is concentrated in relatively few stocks >> yes, that's true. >> so david, let's talk about that how worried should we be that this has been a market that has treated certain stocks brilliantly, if you didn't have them in your portfolio you've got nothing like the returns of the s&p and the dow? if you did have them and you were weighted heavily, you're looking pretty good this year. what does that tell you about the underlying health of corporations in this country, the underlying health of the economy, if so much of the power of this rally resides in six, ten, a dozen stocks? >> i think the picture -- i

think that's true, tyler, for what we're seeing this year, but the picture really changes as we go into next year. all of the sectors and companies that have really been hurt by the pandemic are going to see a pretty substantial increase in earnings growth as we go into next year. for instance, financial sector earnings will probably be up 25% at least as we go into next year energy coming off an extremely low base, but it's going to surge, same with industrials and materials. so, yeah, i think it's true if you look from '19 to '21, there's not a lot of growth. but where you will see the growth in '21 is those really beaten up areas of the market. and i think as we get through the election, as we get a vaccine, as we get further clarity on stimulus, it makes sense to start looking at some of those depressed areas of the market. >> so let me get a real quick final question, kind of a yes or no everybody goes in and in terms of their portfolio management they have a baseline that's 60%

equities and 40% fixed income. maybe it's 65%/35%, something like that. in this environment would you be at the upper bound of your equity allocation, david, or somewhere lower? and the same question for you, kevin. yes or no. >> tyler, we're at the -- we have a preference for stocks versus bonds at this point we have a little bit more stocks than bonds >> and kevin, the same for you >> same here we're overweight equities relative to fixed income right now. >> and i see you went to randolph macon college, right? >> yes >> congratulations i'm a uva guy. see you, man the virginia guys got to stick together coming up, airline stocks -- kelly went to washington airline stocks are in the green dispute the stimulus spat over a stand-alone bill what is the flight path without

a deal a top analyst will weigh in. plus, apple could be about to enter the iphone super cycle that wall street has been waiting for. but what exactly is a super cycle? what does it mean for the stock? ntueluh"plain when "power nc coins. so you only pay for what you need. wow. that will save me lots of money. this game's boring. only pay for what you need. liberty. liberty. liberty. liberty.

♪ you can go your own way ♪ go your own way your wireless. your rules. only xfinity mobile lets you choose shared data, unlimited or a mix of each. and switch anytime so you only pay for the data you need. switch and save up to $400 a year on your wireless bill. with the carrier rated #1 in customer satisfaction. call, click, or visit your local xfinity store today. apple debuting its newest iphones yesterday, revealing four new models all equipped with 5g capability and the first

redesigned look since the iphone 10 dispute its continued popularity, apple's revenue really peaked three years ago. analysts are hoping for a super cycle with the iphone 12 that apple hasn't been able to pull off since 2014, with an estimated 30% of consumers using an iphone that's at least three years old and 24 million eligible upgrade phones projected for 2021 could the iphone 12 bring the bulls their next super cycle here is tech reporter steve co vac. do you think it's possible >> the onlyisanalysts believe i possible they believe the puzzle pieces are in place, given that there's people waiting for the upgrade and the fact that the new phone has 5g and they believe that's going to be an attractive thing to get people to upgrade this year i've hung onto my iphone for three years. a lot of people are holding onto their iphones longer and longer and we seem to have hit the inflection point where people are thinking it's time for an

upgrade. that's where the bullish call is >> you know, you look at apple's shares and you think does the company -- either it doesn't need a super cycle or it's counting on one because the shares are up 60% or 70% this year this is a $2 trillion market cap. does it have to be a super cycle or doesn't it? >> exactly, and that's the genius of tim cook here. years ago he saw the writing on the wall and knew iphone sales are not going to be able to grow at these levels forever and they started pushing the services narrative and saying we're going to grow this business, this will be our new engine of growth and they delivered on it and that is what investors have been rewarding the stock on more than iphone sales. you might remember iphone sales tanked a yu years ago 15% and the stock went to the moon if you had told me that the stock would go up and iphone sales would fall that

dramatically, i would have thought you were crazy so that's what people are really evaluating the company on, it's this whole idea that we have this huge install base of iphone users and we have different ways to squeeze more revenue out of them, whether it's through the services packages we're seeing or these great accessories, whether it's air pods or the apple watch. and there's plenty of room for those to grow, too >> steve, now that it's been 24 hours since the launch event, tell me how you would describe the buzz around these phones compared with the launch of past phones with big -- features that were big break-throughs. >> it's not a brand new form factor so if you look back to 2017, we had the iphone 10, got rid of the home button, the full screen design. if you look back to the last super cycle six years ago, that was when they made that jump to big screens. so consumers really like to go after these brand new form factors. they like to feel like they have

a brand new phone. technically this iphone 12 series is a new design, but it's similar to the current design. it won't feel as new as the iphone 10 and 6 did. we've been talking all week about the skepticism around 5g and the lack of coverage they talked a lot about 5g yesterday. they mentioned 5g before we even showed us the iphone 12. they have yet to come up with a compelling real world use case, other than saying you're going to be able to download things faster what does that actually mean we haven't experienced that yet. >> meanwhile, a friend of mine is all excited because he has the iphone from 2010 that still had the old design that's now new again. he's like everyone is going to think i have the new phone >> oh, my gosh. >> yeah. >> that's going to feel like an upgrade. >> yeah, exactly even if it's not. >> they're hearkening back to

the old design. >> exactly and i think that the question remains for apple investors, what are the expectations priced into the stock the price to earnings multiple has risen dramatically, the shares are up in year in anticipation of some of the delay in people buying phones this year being pushed into next year and them having this monster 2021 whether that's because of super cycle or just a little bit of pent-up demand, i guess the key for apple is going to be clearing that bar and justifying the multiple, which like you said earlier, is predicated on its service business continuing to grow. >> right, and they've proven already that iphone sales can be down or a little flat and they can still grow their revenue, they can still grow profit and be successful that way again, they get rewarded with their share price and they hit that $2 trillion mark the other month. so, yeah, that's exactly right as long as the iphone sales stay

somewhat consistent and they can keep that user base and keep people from switching to an alternative platform like android, then they're going to be okay because they keep layering these services and new accessories. we just got a new home pod yesterday, for example they keep layering things on to get you to buy more stuff on top of the iphone, people are keeping longer than normal >> exactly now we've got the watch and i guess we're going to have to buy a bunch of new accessories to go with the new phone. >> and the chargers. don't forget the charger thing. >> that's what i'm saying. they might think it's eco-friendly not to put it in the box. you've still got to go get one cnbc's tech reporter for more on the launch, you can visit us on the web at cnbc.com. >> thank you a big part of apple's announcement, verizon turning on its nationwide 5g network. we've been hearing a lot about 5g for years now

verizon's ceo hans vestberg told us yesterday the moment is finally here >> i think we are having a long-term stat g long-term strategy that we have been working on for years with our partners apple an important partner for doing that all the infrastructure players this is really an important moment for us. 5g just got real >> verizon stock popped on that announcement yesterday, but it has been sliding today, down about 1.5% let's take a look at the other wireless carriers, at&t and t-mobile and also chip stocks that could benefit from 5g, they might include -- there is at&t and t-mobile you look at t-mobile moving up, at&t down. chip stocks are all up nicely year to date kelly. >> that is an amazing spread between at&t and t-mobile. still ahead, united health group is the worst performing stock in the dow and that could

be a bad sign for another reporting earnings tomorrow. plus the major airlines are burning through about $13 billion a month as they struggle to stay afloat during the pandemic how long can they hold on without stimulus there's more "power lunch" after this quick break we ng on homeowners insurance with geico's help was pretty fun too. ahhhh, it's a tiny dancer. they left a ton of stuff up here. welp, enjoy your house. nope. no thank you. geico could help you save on homeowners and renters insurance.

lunch. united health, the largest u.s. insurance company, lower even after reporting growth in its drug benefit business. what could this mean for walgreens, the second largest pharmacy chain, reporting earnings tomorrow? a report from jpmorgan showing a surge in consumer depending on household cleaners, soaps and vitamins, products you can buy at a pharmacy but the stock is one of the worst performing this year, falling 40%. could earnings mark a turning point? let's bring in the trading nation team. john, you say that the stock is on your radar, but you are waiting a strategy shift in order to be a buyer of the stock. tell us what that looks like. >> walgreens is cheap from an evaluation standpoint and they generate a lot of free cash flow, but they have not solved

the riddle on the front end of the store. we all know the pharmacy side of the business is strong, but the front end of the store has been declining comps for what seems like an eternity their direct comp, cvs, who a couple years ago bought aetna,tn and they fight the fight on the front of the store i want to see from a fundamental standpoint what is the plan to stop the bleeding in the front of the store before getting interested in the stock. >> matt, a big under performing this year but it has been growing dividend, an average yield of 5.2%. >> like john says, it's a very cheap stock and with that yield, that's fabulous. not only that, it has raised its dividend 44 years in a row it's a very solid one. the problem, and i agree with john, on a longer-term basis when you look at the chart the stock has been making a series of lower highs and lower lows

for five years the last five years the stock is down 60% while the market has been up 70%. having said that, i don't love it right here. but on a short-term basis traders could see a pop. if these earnings take the stock above $37.25, that will take it above its trend lined from the beginning of the year and above a mini double top from september and october. that should give the stock a nice little boost. back in may the stock rallied 20%. traders can keep an eye on that, but longer-term it's got a long more to prove. >> we'll be watching the report tomorrow morning matt and john, thanks for your analysis for more, head to our website or follow us on twitter tyler and kelly, back to you. >> thank you, seema. ahead, airlines facing massive turbulence amid the pandemic, with lower demand and no sign of government support, is there any hope? plus, the rich kid windfall, how wealthy families are preparing

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welcome back, everybody. i'm sue herera here is your cnbc news update at this hour. we start with georgia's secretary of state, saying another 111,000 people voted across the state yesterday with monday's early voting and absentee ballots, over 700,000 votes have been cast that's more than 10% of all registered voters. youtube announcing it will remove videos containing misinformation about covid-19 vaccines the platform saying it will ban

any content that contradicts consensus from local health authorities or the world health organization france is restoring its public health state of emergency due to a surge in coronavirus cases. it will go into effect on saturday and include nightly curfews in paris and several other cities president macron says a new national lockdown is not necessary. and in barcelona, protests over new restrictions meant to curb the latest surge in infections, this as spain becomes the first european union country with more than 900,000 confirmed cases of covid-19. kelly, you're up to date i'll send it back to you >> so tough. no one wants to go that route. no one wants it to keep spreading. no good options. >> yeah, europe is in the midst of a second wave that is growing on a daily basis it is not a good situation there. >> sue, we appreciate it sue herera is our news update. let's look at the markets, which have been fine-tuned to

any updates on the coronavirus relief front today mostly the news has been negative that's when the dow was down more than 200 points now we're down 152, a half a percent decline. the nasdaq remains the worst performer. the oil market is closing up for the day. let's go to dom chu over at the commodity desk. >> oil prices catching up today, dispute the lingering worries about the faltering demand in the coming months, given the spikes sue mentioned in covid cases around the world west texas intermediate, right now $41.02, up 2%. brent crude future $31, a 2% game as well for both measures, they're continuing to trade around their 50-day average price, the key level that some traders watch. earlier this afternoon we got headlines involving global oil car tell opecthat said compliance with oil supply cuts was seen at 102% in september.

opec cut its forecast for global oil demand in 2021 from the same estimate last month. inventory data is expected later on this afternoon and then again tomorrow morning from the american petroleum institute both reports delayed by a day because of the columbus day holiday on monday. tyler, i'll send things back over to you. >> thank you very much treasury secretary mnuchin saying speaker pelosi will not make a deal on a standalone airline rescue bill. airlines, remarkably, remain in the green, but with no relief coming the companies have digging deep into cash reserves to get by. it's estimated that airlines will burn through $77 billion in cash during the second half of 2020 let's spring in cfra airline analyst. the cash burn is really staggering delta reported a loss of -- i

think it's like $13 million a day or something like that >> tyler, thanks for having me on today yeah, in this past quarter the overall adjusted pretax loss for delta was $2.7 billion so still unprecedented, revenue downfalls here >> how do these companies in the face of reduced passenger and carriage, how do they slow their cash burn? what would you suggest they do to the extent that they haven't already done it? >> well, one of the most helpful things they can do is stop buying new planes. you saw delta bring its capex on new planes down to almost zero in this quarter. so that's a big help but the thing i would caution about extrapolating that into future years is they're not actually canceling those plane orders they're just pushing them out

into late next year or 2022. >> do they have a lot of planes that they're obligated to buy? do they have a lot of planes that they're obligated to buy in 2021 >> yeah, they don't fully disclose what the restructured delivery schedules are, but if you look at airbus, airbus's order book, it looks like delta and united have the same order book now as they had back in january before the pandemic started. so it looks like they're still going to have to take those planes eventually. what's helping them now is they bring down the spending on new planes, eventually that's going to hurt them when that comes back and deliveries ramp up because i think the deliveries are going to start ramping up again much sooner than demand comes back from passengers >> the other thing that you point to -- you point to a couple of things one is the debt levels for some of these carriers. for example, delta's debt is now

$42.5 billion, up from $18 billion in december 2019 that's an item that they have to pay. they have to pay the interest on that dent. did they borrow to get through the pandemic is that why they took on so much more debt, more than doubling? >> yeah, absolutely. when you're bleeding cash like they are, close to, my estimate is $29 million a day in the third quarter, the way you get through that is you borrow money because you're depleting your cash reserves through this pandemic so that's obviously really tough just to have higher debt in itself, but keep in mind that the interest rates for their new loans are generally double what they were before the pandemic, going from like 3% to 8% on unsecured debt. >> so they've got more of it and it's costing them more your only pick in this space right now, as i understand it, is southwest i guess that's because of their financial picture, and also

because they cater to leisure travelers as opposed to business travelers, whom you expect will come back more slowly, the business travelers have i got that right? >> yeah, absolutely. i think the business travel demand picture is a lot more uncertain to me than leisure travel i think when the vaccines start rolling out and people are comfortable that they can go to restaurants and tourist attractions on the other side of their flight, the leisure travel will come back pretty quickly. but i think the business picture is much more clouded because you don't know how many companies are going to say, hey, we don't really need to spend on business trips like they used to. so that could be a much -- i think that's going to be a much slower recovery, probably at least three years. >> it certainly seems that way, and more and more of the executives we talk to who used to spend, you know, days a month on airplanes are not expecting to do that for a long time

thank you very much. kelly. it's not just the airlines every aspect of u.s. travel system has suffered because of the pandemic that. includes the airports a new cnbc documentary looks at the toll the pandemic has taken on the rebuild of new york city's laguardia airport >> on june 13th, with the terminal 80% complete, the gleaming departures and arrivals hall open to the public, but the timing couldn't have been worse. >> covid-19 has been a disaster, a catastrophe. we need a one-time $3 billion rescue package so we can maintain our capital plan and build 21st century facilities. >> rick cotton is the executive director of the port authority of new york and new jersey it operates the region's major transportation hubs. >> we were opening this magnificent new facility with triple the capacity, check-ins,

security, iconic concessions, and there's virtually nobody here. >> in june alone the number of flights in and out of laguardia plunged from more than 1,000 a day in 2019, to less than 150 in 2020 and for the grand opening, passenger travel had all but disappeared. >> shepard smith reports "air travel in turmoil" that premieres tonight at 8:00 p.m. on kr cnbc tyler, back to you. >> thanks, kelly we've got a market flash on a move from the state department, regarding the china giant ant group. let's get to deirdre with the details. >> this headline just crossing that the u.s. state department has submitted an application to the trump administration to put china's ant group on a trade black list this is according to reuters

sources. al baba and other companies listed, and they've moved lower on the headline and this is part of broader tensions between the u.s. and china, where tech is increasingly being caught in the middle it follows restrictions on tiktok and tencent's wechat. they are planning an ipo and i'm told it could happen as soon as the end of the month, october. the concern is that ant's dominance, as well as tencent's dominance could give china access to personal and banking data however, we should note that ant group has filed a prospectus in hong kong and in it, it outlines very little business in the united states. international revenue accounts for less than 5% of its total, yet it is still certainly becoming somewhat of a football here in the tensions between china and the u.s. back over to you. >> you would have to say that a company whose business is in the payments area would pose maybe more -- a greater intuitive

security threat than one that's posting dance videos >> yeah, that is the fear, is that it gives access to that sensitive data but remember that ant group gets most of its business in china, pretty much most of the business it gets in the u.s. is from chinese tourists who want to use the financial payment system to buy things over here and of course amid the pandemic, there are not very many tourists from china in the u.s. however, yes, they are becoming very dominant in terms of mobile payments, so the fear could be that as they grow bigger, as ant group heads toward an ipo the business could expand around the globe. >> thank you very much coming up in today's power movers, news papers, christmas trees and electric cars. disney announced a strategic shift to focus even more on streaming, but then senator elizabeth warren blasted the company. we'll dig deeper into all things disn cinupeyomg

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but before we sign i gotta ask... sure, anything. we searched you online and maybe you can explain this? i can't believe that garbage is still coming in. that is so false! frustrated with your online search results? call reputation defender today to join tens of thousands who've improved their online reputation. get your free reputation report card at reputationdefender.com or call 1-877-866-8555. let's give you some power movers, starting with "the new york times." morgan stanley initiating coverage with an overweight

rating, saying the times has an opportunity to grow its paid subscriber base. bed bath & beyond is selling the christmas tree shops brand for about $250 million the stock is up 600% you heard me right, from its march lows and nio hitting a record high jpmorgan upgraded from neutral and jacked up the price target to 14, which is the highest target on the street the stock is already up 1800% from its low this year, kelly. meanwhile, the bond market has been flat. let's check in on the action today with rick santelli hi, rick >> yes, you're right it pretty much ignored a hot ppi. if you look at a two-day, you can see the drift. and, yes, we are slowly melting. it's very important to pay close attention to how we compare with

the rest of the world. let's look at boon yields, basically closing at the lowest since the end of april, as you see on this chart at minus 58 basis points the currency, the euro has made a high on friday that went back about three weeks. this chart starts on friday. you can see the way it's been drifting as the interest rates drift lower, and it isn't just against the green back look at the euro against the chinese yuan it is at the weakest levels going all the way back to may of this year. the reason it's important, it seems as though the economy of china is getting the thumbs up on maybe being the most active aggressive economy post covid in the world and we really need to keep an eye on exactly how the arrangements are with that trade with and back and forth from china. tyler, back to you. >> thank you very much coming up, why some rich kids might be getting a whole lot richer how the wealthy are preparing for a biden esenpridcy possible.

that's next on "power lunch.

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now these multi-billion-dollar companies wrote deceptive prop 22 to buy themselves a new law. to deny drivers the rights they deserve. no sick leave. no workers' comp. no unemployment benefits. vote no on the deceptive uber, lyft, doordash prop 22. one ride california doesn't want to take. welcome back, everybody. less than three weeks from an

election that could have major tax consequences and very wealthy people are preparing to make some big moves with their money. robert frank joins us now with more hi, robert >> reporter: tyler, wealthy americans transferring nearly half a trillion dollars to their children and relatives every year, but now many wealthy manye racing to pass down even more in advance of a possible blue wave. now, biden's tax plan calls for a big jump in the estate and gift tax under current rules, couples can pass down up to $23 million to their kids without paying any tax. biden would cut that limit to $7 million and boost the estate tax rate from 40 to 45%. if a family is going to leave $20 million to their kids, they would face zero tax right now. under biden, they would pay $6 million in taxes if that plan goes through now, trust and estates attorneys saying they've never been busier

as clients fast forward their gift plans to create trusts, they can be funded if they need to in december and they just won't fund them in we get a trump victory. experts say you could see hundreds of billions, if not a trillion in wealth transferred just in the fourth quarter and, tyler, that could boost everything from real estate to stocks and also another benefit here, you could see a big boost in giving to philanthropy and charity. people want to reduce the value of that taxable estate before the first of the year. back to you. >> very interesting here i thought there were limits on the amounts of money you could pass on tax free to children, but maybe this isn't a gift, this is a transfer into a trust, which takes the money out of the estate, but puts it under another entity is that what these folks are doing? >> you're absolutely right, tyler. there is that $14,000 a year limit with which you can give each person during the course of

the year, but this is a lifetime gifting. and because it's a trust that, is under the lifetime exemption, which is $23 million a couple, going down to $7 million so, that would be a big change. >> robert frank, thank you kelly, over to you the dominance of streaming was coming no matter what, but the pandemic that forced us into our homes and out of movie theaters has made it grow even faster one analyst's top picks in streaming and it's not netflix you can always watch and listen to us. stream us live othn e go, on the cnbc app we're back in a couple you can't predict the future. but a resilient business can be ready for it. a digital foundation from vmware helps you redefine what's possible... now.

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kelly, as earning season gets under way, you can see that the dow industrials are, once again today, as yesterday, moving a little bit lower by about half a percent the other markets going along a pace there the s&p 500 down 23 or about two-thirds of 1% and the nasdaq is off about .8%. kelly? >> yeah. tough session for bank of america, wells fargo in particular elizabeth warren slamming disney over the company's recent layoffs. her letter to the ceo saying, quote, your company prioritized the enrichment of executives and stockholders through hefty compensation packages and billions of dollars worth of

dividend payments and stock buy backs, all of which weakened disney's financial cushion and ability to retain and pay its front line workers amid the pandemic again, that was from senator elizabeth warren let's bring in bernie mcternan we twoont talk to you about streaming and netflix is not your top pick. who is >> right now if we think about covid beneficiary plays, it's peloton, who is using a similar disruption method that netflix used to disrupt the system by leveraging the structural tailwind and changing going on in the fitness industry right now. we prefer peloton with a million subscribers versus netflix has almost 200 million globally, different parts of their growth

curve. within media, we prefer disney we think this reorganization is a positive, better aligning the organizational structure with goals for the company rather than the legs a infrastructure we're excited by investor day. we should get updated disney plus targets and star targets. we're looking for a road map for the next 100 million subscribers, which will narrow that gap with net fliks. >> let me stay on this disney point you're making, saying it is your preference in the media landscape. there's a note today that said there's higher potential churn coming for disney and apple plus than you would have expected specifically 18% of users at disney plus said they didn't plan to renew after their free trial ended. are you concerned about churn? >> yeah. one of the things that certainly will be helping churn is more content hitting the surface. we recently had "mulan." "soul" will be coming out

christmas. all the marvel tv series will be hitting next year, too i should mention the band warren hitting later this month it certainly should help churn but everything we've seen is that netflix is a leader in low churn, but netflix is already at 60 million subscribers in the u.s. we're wondering if you don't have netflix now, when are you going to get it? and reed hastings outlined a decade ago getting to 60 to 90 million subscribers in the u.s why that's significant is if we end up at the 60 million mark versus the 90, it has significant implications as to what your churn will reach in other regions. >> sure. it's fascinating i want to make sure that your preference in streaming, in general, is peloton. it's not mentioned as a streaming player but obviously these workout videos are a big part of its success and appeal

let's go back to netflix and why that doesn't rank higher for you. is it because of penetration is it because of growth stalling out? do you see a landscape where people sign up for other content offerings now that they're prolivpr prolichlt ferating >> yes i look at a stock that's trading at a five-year high and look at a next 12-month growth outlook of mid to high teens, the lowest i've been in quite some time i think the market is already pricing in a large successful price increase, which caused u.s. subscribers to go backwards last year, it could be a lot harder this year, given the macroeconomic backdrop and lower price streaming with disney plus now. it wasn't the case last year. >> that's a really interesting point. you think it could be the price hikes that slow the momentum bernie, as always, thanks for your focus, your time today.

appreciate it. bernie mcternan of rosenblatt. >> two cheers for disney and three cheers for peloton i'll go back and do a little working out today. the dow down as well. >> i want to know when you close in on that 200 we'll throw a little party. >> getting close getting close. "closing bell" starts right now. >> it certainly does thank you very much, kelly and tyler. i'm wilfred frost along with sara ei sechltsen major averagel leers lower, as we head into the final hour of trade. steve mnuchin said it would be difficult to get a stimulus deal done before the election bank of america and wells fargo see sizeable