if your doctor is in our network, to find out if you can save on your prescriptions, and to get our free decision guide. humana - a more human way to healthcare. good afternoon welcome, everybody, to "power lunch. along with kelly evans, i'm tyler mathisen it's a rally, stocks snapping a two-day losing streak and on track for their third week in a row on gains and thanks to surprisingly stronger retail sales, jumping sales in the

month of september, strong consumer sentiment numbers to go along with them. and later, gilead pushing back after the world health organization says the drug remdesivir does not prevent death in coronavirus patients. we've got the latest details as power lunch starts right now thank you, ty. the markets are marching back after a few down days. dom chu has more on what's moving >> decent sized gains but off the high of the session. we are up 243 points with the dow at the highs of the session, up roughly 348 points. you can see there, yes, still strong gains but not nearly where we were earlier in the day. the s&p has reclaimed that 3,500 mark, the nasdaq only up about

one third of 1%. the leadership in terms of the s&p 500 has been in one week industrials and technology, both up nearly about 1.5% meanwhile, the biggest laggard off nearly 2% is the real estate sector some of the stocks to watch with regard to covid vaccines and everything else, pfizer shares, possible vaccine for emergency use authorization by later on this fall. boeing catches a bit on some headline, incrementally positive for its 737 max jet, at least on the european side of things and cat pilllerpillar gets an upgra wells fargo. because of those consumer sentiment and retail sales number, best buy is off. it did hit a record high

target hit a record high today and so some mixed trading intra day but still best buy target lows, d.r. horton, tyler and kelly speaks to that consumer trend. we'll see if those continue their positive trend back over to you guys. >> if we did mention, it is a consumer powering those gains today. a big retail sales jump. could it be the item that pushes this market higher into the end of the year. let bring in brian jacobsen and our cnbc senior analyst. ron, you are so senior, i can't stand it, man. that is really something >> i just crossed 59 1/2 >> oh, did you you can now start to withdraw from the iras without tax

penalty. congratulations, my friend >> yeah. >> wait till you get your medicare card. it an ambiguous feeling. >> getting there >> brian, i want to drill down on something that dom just mentioned and that is the outperformance in the past week of industrials do you believe given where they are priced and what they've been doing that that's a sustainable move when we're talking about industrials, what companies are in that group. >> thank you so much for having me join. congratulations, ron, for crossing that unfortunate milestone. i get all those aarp offers in the mail and i'm like it's a little early i think but maybe not. my team has been overweight industrials because we do like the pro cyclicality of it and we like prices relative to fundamentals across the board, granted

valuations, knowing that and having a nick el really won't buy you even a cup of coffee, especially in the short term. we are optimistic about the economic outlook and like the valuation in that space so that is an area that we are overweight it is a grab bag of different exposures now. i'm not allowed to talk about individual stocks. i'm sure ron is probably in a better position to do that, a the least from a compliance perspective. but we are optimistic about it but it is really a grab bag. we like domestic exposure. you know, going into the election we think that no matter who wins, whatever the composition of congress is, that u.s. economy itself has a decent amount of momentum and is likely to continue, not just for the balance of the year but even for the next few years >> i guess what i was driving at there in asking brian about what

is an industrial is that there's some ambiguity in my mind. for example, is apple an industry stock or a text stock where would it be categorized? is pfizer, a manufacturing stocks, which it most certainly is or is it a health care stock? explain. >> listen, i would go with respect to the first, i would suggest it's a consumer stock with a platform that involves a great deal of advanced manufacturing. in many ways, pfizer could be characterized the same way when you're talking about core cyclicals or industrials that would benefit from a large infrastructure bill, you're talking about the ingersoll rands, the caterpillars and i think most of the stuff is a relative value trade you've just seen the outperformance in big cap tech i think a lot of us look at the underlof underloved and underowned, there's a lot of stay at home

versus recovery trades i think that trade is on have i more concerns about the economy going forward. i think we're in a w and a k, as we've discussed. i worry more about main street than anything else i've traveled and we've seen store closings and stores get hurt and without relief in stimulus, it doesn't necessarily show up in the stock market but it's going to show up elsewhere. >> i couldn't agree with you more, ron, on that point as you go around to various towns here in new jersey where i live and where you live as well, you do see an awful lot of for rent signs you do see an awful lot of places that have been stall war -- stalwarts of their communities it seems we're in a environment that has set the election aside

but remains very vulnerable to headlines, both on the up side or down side today pfizer saying we might have a sacksine r a vaccine fors available by mid november. that's a positive for pfizer and a lift for the stocks. what do you say we're vulnerable to headlines both sell off and buy-in >> yeah and i think when you look at this algorithmic trading, what can't be determined is whether or not the headlines are good for the long run. and i think relative to my experience, more movement headline to headline than i've ever seen on an intra day basis over 30 years. no one, you know, no computer is sitting back and saying, hey, is that credible, is that long term it pops the market for a period of time. so i think that is an issue with respect to the way the game is currently being played and particular with the addition of

day traders, who set prices at the margin, you're getting that with whip saw effect the one comment i would make about the election, if you look at the polling data, joe biden is ahead by double digits. and i think what the market is betting on is not necessarily a specific result but clarity. i think the market will be satisfied regardless of who wins because it takes out that kinktkin kink in the vix. the prize would surprise would an early call and no vol >> i'm going to work on the kink in my

it's a pretty bad recession. it's written it's difficult to

draw a firm conclusion the state of california announced a pause of initial claims to reduce fraud of technology they are working with investigators to root out fraud. but the extent of the problem is unknown either in california or also indeed in other states while the total numbers are certainly bad, they simply may not be as bad as the weekly data sugges suggests >> it's such a tricky issue because we used to look at jobless claims as one of the best indicators for a turn in the economy. are there any better indicators you would look to right now? >> i think we're looking at some of the high frequency datdata, home base data

unfortunate but all of it is telling us a story along with what's happening in the economy right now. being in the middle of a pretty bad recession is not as bad as suggested by some of those terrible, terrible claims numbers. >> we hope we appreciate it steve liesman for us >> all right, kel, coming up, we will have more on the market rally. right now utilities and health care are leading the way energy sitting out today's price movement as you see there. the only red pile on the board right now. plus pfizer says its coronavirus vaccine could be ready as soon as november. meanwhile, the effectiveness of gilead's treatment remdesivir is being put into question. a top analyst will weigh in when "power lunch" returns next ♪ ♪

♪ ♪ ♪ "hmm's and ahh's" heard in-call. ♪

welcome back, everybody. shares of pfizer are higher on vaccine opens while gilead is lower on questions about remdesivir hi, meg. >> hey, tyler. feis a pfizer putting out news today outlining its potential timeline for filing for emergency use

authorization for use of its covid-19 vaccine safety they won't have they think until the third week of november and manufacturing data, which they expect to get before they get those safety results. so if all of this goes well, they say they will quickly file for emergency use authorization after that safety data at the end of november. that is based on fda guidelines requiring two months of safety follow up after half the people in the trial have received their second shot. both pfizer and moderna have reached that in late september so they're potentially both on track. getting news on remdesivir, that was the first drug showing benefit of treat, covid-19 but that now being questioned by the world health organization in a trial it ran on multiple drugs,

find, little to no data, and gilead saying the emerging data appear inconsistent with more robust evidence from multiple randomized controlled study published in peer-reviewed journals validating the clinical benefit of remdesivir. >> joining us is the analyst behind this note, raymond james. >> i think one question that we

need to be asking still is does remdesivir work. and it's a question that based on the emergency use authorization and the prior studies at gilead conducted, gilead would argue yes and i would argue at a minimum we don't know and the solidarity authors from this new study, which is the largest study to date, pretty forcefully argue that the answer is, no, it not effective for hospitalized patients with covid. so we should be asking that question and the more and more data that accrue, the more and more it looks like the answer is no >> so, is it possible that this treatment works better for people before they're hospitalized than it works for people once they are hospitalized >> it's certainly possible one of the things lacking is data that drug accelerates clearing of the virus. that may be because it's difficult to measure that in patients in the hospital, but

that is an important mechanism of this drug we have data that says you can measure that in outpatients. the mechanism lines up with it potentially working as an earlier treatment. you appear to be able to measure that more readily when used as an early treatment and the last thing i would say, though, however, is that we don't have any data in that setting from remdesivir so it's simply way too premature to expect it to work in those cases. >> steve, i want to make sure i'm understanding what is the back and forth between the world health organization and gilead on the other the world health organization has come out with data that it says calls into question the effectiveness of remdesivir for hospitalized patients. on the other hand, gilead criticizes that finding by saying, as i understand it in effect, we have other data that are peer reviewed and thoroughly

vetted as opposed to the w.h.o. data that indicates that it does work am i understanding the fundamental conflict correctly and that it is over whether the w.h.o.'s data is as thorough and peer reviewed as that which gilead says it has >> in part i think you are i agree peer reviewed data is better than data not peer reviewed i will say a couple things here. first the early data on remdesivir came in waves of uncontrolled studies and clinical case reports in studies that in some cases were open label, not blinded and we should be treating all data with the same rigor here, including solidarity with is three quarters of the data of remdesivir now stated by the authors, not me.

i think we should take this new data hydroxychloroquine, early on it was as mentioned as remdesivir, turns out it doesn't work. i don't think gilead or others would dispute those findings the study pretty conclusively says there's limited to no effect of remdesivir we need to go back and reassess all the other studies in the context of this new finding. >> steve, you conclude your note by suggesting not only that gilead reconsider what it called its knee-jerk dismissal of the try but reassess the clinical value of rels vmdesivir we're seeing that the price should be lowered by remdesivir

or that it should be revoked based on this data >> revoking emergency use is a precedent we had seen with hydroxychloroquine it wouldn't be nonsenonsennonse. i think we should wait for peer-reviewed data i think the outcome of that conversation will certainly put remdesivir in a light where it is viewed less effectively than it has been. >> steve, thank you for making something that is immensely complicated very simple to understand we appreciate it

meg, thank you as well and still ahead, retail sales in september coming in well above expectations so is this a sign that the holiday shopping season may be stronger than we expect? plus this mystery chart is the best per fortunateforming secto past month and the group is about to do something that could point to more gains ahead. see if you guess the mystery chart. did have if you're on medicare, remember, the annual enrollment period is here. the time to choose your coverage... ends december 7th. so talk to unitedhealthcare and take advantage of a wide choice of plans... including an aarp medicare advantage plan from unitedhealthcare. it can combine your hospital and doctor coverage with prescription drug coverage, and more, all for a low monthly premium or in some areas, no plan premium at all.

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. welcome back time for trading nation. one underdog sector has been leading the market over the past month, on the cusp of an even bigger comeback, so the charts may say. the utility sector, one of 2020's worst performers, is nearing what's called a goldish cross, where the 50-day moving average crosses over the 200-day moving average and that tend to forecast more up side. there you see it we'll get one of our guests to explain exactly what you're seeing mark newton, nancy tangler of

your trading nation team let me begin by having you go back to that chart and point to which line is which, where is the 200 day moving and which is the 50-day moving and what does that typically foretell about a stock or a stock group >> well, tyler, historically it's better to look at this more of a gauge of strength or weakness more than using as a trading signal per se. but it just important to recognize when you start to see this rotation towards defenses, it's normally very important to pay attention to this kind of thing. it happens near market peaks and stimulus uncertainty and possibility of a contentious election the rotation into utilities has been something that's happened in last month. we've seen the xlu move up to the highest level we've seen since march. it's set to be up more than 1% just for the week itself this week so in general this is something to pay attention to at a time

when many people are simply only paying attention to technology and thinking that q4 could be very robust. norm no >> so you would argue that on relative strength, utilities would be a target of opportunity right now if i'm understanding you correctly, but the thing that alarms me a little bit is that you seem to be saying that when utilities do this and start to lead, it often signals that the market is peaking. do i have you right? >> there's more to happen that be that. it's been prevalent in a lot of the market peaks we've seen over the last 10, 20 years. even though rates have risen also we've seen almost a 20 basis point move up in the ten-year since august from 50 to about 7

basis point and utilities have outperform until this time we've seen movement into staples this week, outperformed discretionary and now utilities seeing that good boost i do like this sector. i think it's a place to position >> let's go to nancy utilities to buy or not to buy >> i love mark's analysis, tyler, but that's the question as a fundamental investor, i'm going to take a pass i'm willing to miss out on the short-term trade if you look back historically, this is a group of stocks or a sector that has grown dividends and earnings well below many other parts of the market and the two examples i would use as an alternative are stocks like texas instruments or broadcom that have about the same level of yield or higher they've been growing dividends

in the 20 and 50% space respectively and they've outperformed the market dramatically whereas utilities over the last five years have underperformed almost by half. i stand the sector rotation story, invest in the long term for my clients i would be interested in finding safety and yield in other parts of the market. >> all right, nancy. thank you very mark, thank you as well. have a good weekend to both of you. thank you for your time. for more "trading nation," head to our web site or on twitter. retail sales posting a huge gain and the pandemic creating a logistic nightmare for teams around the country and cheap stocks

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to be drained from our public schools and local communities. no more. i'm proud to support prop 15." vote yes. schools and communities first is responsible for the content of this ad. let's take a look at where the market stand right now a little bit of a rally for the dow. not as high as it was earlier today. the s&p 500 up by about two-thirds of 1% the nasdaq composite trailing up about one-third of 1%. kelly? retail sales raising well ahead of expectations, raising hopes for a strong holiday shopping season, even without more covid relief.

>> what are you kind of baking into the cake at this point in terms of holiday spending growth >> i think what we're saying is that people that feel secure in their jobs right now are looking for something to spend on. and i think that this idea that there's no one making trips, there's no one going out at the end of the day you have to find some other kind of escapism. and interestingly the last five years it's been on people spending on experience oaf things this is the year where things become your experience >> tell me who in your coverage universe could cover the moment from this and whether those benefits are already priced in >> it's a great question i think at the end of the day, we're bar belling the large players, the companies that are going to feel some disruption and take a lot of market disruption on the long term and

getting interested in finding the undervalue, the idea that you have to carry large brands to have the opportunity to set themselves right so ultimately i think if you're a brand with something, with product that people want to buy, i think we're going to find this is a holiday where demand outstrips supply we haven't been able to say that for a very long time >> what you're saying has deeper implications for the economy it would suggest that could help manufacturing kick in a gear and maybe give us a second leg here, especially since it was down this morning i'm curious about the shopping experience how are people shopping? are they going to the shopping mall or not? we don't expect mall traffic to be what it was black friday doesn't look like the event that it was. no one's going to see santa, i doubt, except maybe here and there. how is that going to affect how and when people spend their

dollars? >> i'm going to say it going to be sad if you and i won't be in the mall at the same time on saturday >> i know. >> it's a very interesting point in terms of where we're going to go and the reality is we keep hearing about this curbside pick up people are still willing to travel they're just changing that dynamic. i think it's creating this element where stores are going to have to decide is the shopping experience supposed to be a fun, experiential outing or is it to shop and get something done and i think it's a hybrid and it's the store becoming mini warehouses and ultimately it's this fusion. any retailer who sticks to one path is probably not going to survive or do well in this verne. it the brands and retailers able to pivot and make their way in there. i think that's the experience question what i do think and i stick to

this idea that you and i talked about for a while, i don't think there's going to be amazing deals out there. i don't know that we should be expecting any type of promotions because there's this pandemic out there. all the manufacturing that you brought up, all the factories, all the vendors, they all took a pause, too that just means there's not as much product as they might want. it might be the first time in a while where there's sales left on the table at least for right now i think what we're looking at is this shift in power from the consumer demanding promotion to the retailer able to actually set price. that's actually really encouraging. >> i certainly wouldn't have thought that would be an outcome from this. it's a big part of why you think gap and l brands could have a turn around here it's good to check in with you over to you.

>> all righty. to the bond market we go with santelli tracking the action as always from the cme. hi, rick >> hi, tyler we had a big date of mourning. retail sales superstrong industrial production and u utilization, those were not strong you see that the ten-year here is down on the week about four basis points but still in better shape than bund with respect to yield. if you look at that three-month chart, you can really see how everything is keying off the equities once the equities righted

themselves, those spreads came back in. finally, here's the dollar index one week, up about 2/3 a percent on the week and really still mostly in a range. tyler, back to you >> rick, thank you very much rick santelli in chicago coming up in "power movers," a banking deal, an oil slick and a beaten down stock bouncing back. and justin bieber. stay with us

oh, it is time for power movers there are no power mowers today because it's pouring rain. first a buy of cit group slumb schlumberger is down 60% this year and we end with ge up 6% today and halfway through october, it

is up 17% this month but general electric is still just a $7 stock. kelly? >> we have a bonus mover today, tyler. it's cr o ocs and thanks to the biebers. it's already sold out and in some cases being resold on at a 20% markup wow. >> are you a bieber believer look at that i don't want to put plastic on my feet but my wife tells me there were lines out of the croc store in times square the past couple of days i guess croc still has their fans and certainly bieber does the rise of the retail

trader has made some under $10 stocks very popular. ford has become adorned on robin hood plus the patriots have cancelled stactice after another positive te can the nfl get through the season "power lunch" will be right back and discuss that one could both agree on was getting geico to help with our renters insurance. yeah, switching and saving was really easy! drink it all up. good! could have used a little salt. visit geico.com and see how easy saving on renters insurance can be.

basketball and hockey finished their season in the bubble baseball had its hiccups but made it throug football teams are facing covid shutdowns and rescheduling eric chummy joins us now with the latest coronavirus chaos. >> another week, more covid chaos is happening across the sports landscape the latest, the new england patriots cancelling practice today after another positive covid results. they are still awaiting results from other tests the indianapolis colts closed their facility this morning after four positive tested but reopened today after the retests came back negative the colts game for this sunday, that's still set to go on. another reopening, this time in atlanta as the falcons returning to practice today after no new cases. they had been closed yesterday overin new orleans, the saints,

they are getting frustrated with the mayor's office preventing them from having fans at the super dome they are now considering moving 80 miles up the road to lsu where 25,000 fans could attend this idea of venue hopping is going to be a trend to watch teams might move across city or state lines to find more business friendly rules. speaking of college, several marquee games tomorrow postponed because of the virus, of course, affecting major programs including lsu, florida, oklahoma stit and baylor. alabama will play tomorrow despite head coach nick saban sitting out because he tested positive we have a lot of things in flux. one positive, major league baseball had zero new cases in their latest results out today. >> eric i'm curious how this affects all the money. you know, in the one hand, the nfl and its tv ratings the venue hopping idea is interesting as well, if they are going to lsu maybe they can collect a few re extra stadium

dollars. college football, too, what happens with all of the games moving around? how does that affect tv revenue? >> so far the nfl hasn't missed any games. they have been able to add thing to tuesdays or having a trouble monday game. college football, if you look at the southeastern conference, the sec, they have a couple of idle weeks to put things in the they need to. remember, football has many more players on a team. it is much more likely that one person will get the virus, as opposed to a basketball team, which only has 12 people if you are going to shut everything down if only one person gets it >> it could be difficult to get through the season >> amazing what has been going on there the georgia/alabama game's going to be a big thing. if you have a few extra bucks hanging out in your robin hood account, we will look at

some of the under $10 fames that are in the bargain bin they have become popular on robinhood. and the inaugural financial summit is on tuesday, october 20th i will be hosting. a great number of guests go to cnbc.com/fa summit to register hope to see you there, tuesday, october 20th we'll be right back. hey, son! no dad, it's a video call. you got to move the phone in front of you like... like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most plus $0 commissions for online u.s. listed stocks. don't get mad. get e*trade and start trading today.

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the retail trader is fuelling a boom in cheap stocks under $10. that's what a new report in the "wall street journal" explains today. total trading volume for stocks below $5 peaked at a record 28% in june of 2020. as jmp securities estimates a new 10 million brokerage accounts were created just this year is it safe to bet on these cheapies joining us, the cio of see more asset management he of course is a cnbc trader. i used to understand the allure of under $10 a share but in this day of having the ability to buy fractional shares on robinhood's platform and some others, i thought it would have lost its luster, but seemingly

not. >> yeah, that's the thing. the misperception that cheaper shares offer morrelltive value in dollar prices is crazy. but the concept that more shares at a proportionate lower price also added intrinsic valley. we saw that with tesla we saw it with apple the retail investor has been a major player in 2020 the robin hood numbers tell what they tell. the fact that sports were closed that stimulus czechs turned into possibly gambling checks ask the dynamics for the market here for the retail investor have certainly made it such that you have been seeing all kinds of speculation in some cases these single dollar price stocks. >> yeah. i don't know whether it is because somebody feels richer if they have 100 shares of a $5 stock as opposed to a third of a share of bark shire hathaway anyway, be that as it may you have identified some companies that are in this bargain bin or

the remainder bin that you kind of like, including macy's? >> yeah. and again, bargain bin -- not necessarily. because stocks trade where they do for a reason. macy's ford, u.s. steel these are big iconic companies that at one point macy's was a $40 stock, u.s. steel, 45. macys it is about restructuring through the worst of the crisis and some of their retail locations have been restructured the dynamic thing is, i think it is a balance sheet question for macy's a sum of the parts question but their reports from were good they showed better than ebitda, and their outlook is not totally bad. >> how much is macy's a real estate story >> it certainly has been we know the herald square story. there is an argument that that alone has been up to 0% of the

market cap i think if you look at the company, though, the balance sheet, they did a very good job of bolstering their profile. they have about $1.4 billion in cash as of their last statement in august. they have a $3 billion credit facility that's part of the story but part of the story is this is a company that's invested in inventory, and invested in digital. and they are starting to see some of it pay of to it is not off to the races but a 40% short interest is part of the reason people get excited and frankly where i think you see a lot of this retail interest. >> we have go 35 seconds, tim, for you to cover both ford and u.s. steel. >> simply, ford is also better expense control in europe and a new product line the fact they are going to earn a buck a share next year, that's interesting with an ev portfolio maybe a year and a half away and the 150, the best truck in the world arguably u.s. steel, a balance sheet improvement. the infrastructure trade i think

for a lot of the resource names arc weakening dollar, and you have a dynamic were new corp. and steel dynamics guided higher 20% short interest i think x is headed higher >> tim, have a great weekend great to see you. >> thank you, tyler. you too. >> andcaly, the same to you. have a great weekend >> you too tim fit it all in. so did we. thank you for watching "power lunch," "closing bell" starts right now. >> i'm wilfred frost along with sara eisen stocks looking to finish out a volatile week on a high note as we head into the final hour of trade. let's look at what is driving the action retail sales climbing 1.9% in september versus simts of .7% did estimates of.7%. consumer isn'tment exceeding expectations pfizer saying it would apply for emergency use authorization as