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tv   Mad Money  CNBC  October 16, 2020 6:00pm-7:00pm EDT

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♪ ♪ ♪ welcome "madmoney" fans, jim is off tonight we are calling it the "fast five." we are counting down the top stories of the week. with us tonight, tim seymour and brian kelly. coming up at number 5, did amazon rewrite the count down until christmas. that's right 69 shopping days until christ s christmas. amazon hosted its prime day in october for the first time ever. the move sending other retailers scrambling to launch competing
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sales way ahead of the season which would be black friday. seismic shift here to this calendar here. >> does this surprise you? melody, you start to talk about it since june and every year it is further back. it is making me crazy. i admit that is maybe i am old school, everything you just mentioned until after thanksgiving that to me is the official holiday season >> bahumbug >> amazon is rewriting the script i guess in some way is good for them >> we have sales, walmart and target during the week and especially in light of this weird environment we are in which is an expectation of
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stimulus but no actual stimulus here >> well, we may be the line of misfit tonight there is no question amazon and walmart are the leaders. an acceleration of all these trends we spent so much time talking about "fast money" of the trends being pushed forward but already in place 49% measured through last month. as you go into the holiday season is bigger amazon about 32.5% it goes to 38% they continue to take market share and some of this is because of investment they make months or years ago. if you look at the holiday season, you can make an argument that best buy already had a holiday season apple already at a holiday season back-to-school, learning from home to the extent there is a lot of money spent in the home and that may have an impact in the holiday season, who knows? and who cares?
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did it start yesterday it absolutely did. >> i do think there is this shift here the catalyst here is covid it is shifting to something already happening. reminds me so much when we had cyber monday, broad band, everybody goes on black friday and all of a sudden is cyber monday why on monday? people would go to work and have a better connection and they would buy everything online. i think this could be the point we look back and say hey, covid accelerated this trend towards things happening earlier in the year, mui don't think it is an amazon development either. walmart and target is doing it i find myself during this period of time, i used to order from amazon all the time. i find myself looking at other websites i think there is an opportunity
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for a lot of companies that have that real good ecommerce platform to take market share from amazon. >> is there hope for the likes of macy's, the apparel >> no. >> this holiday season may be different. you may be tired of buying pots and pans and should i dare to say dutch ovens and buying scarves and sweaters and soft goods if you will. >> unless macy's can recreate the miracle at 34th street and natalie wood would come back and reenact her role and all the things we saw at the cane and the magic of christmas unless any of that happens which my sense is it won't i don't think macy's is all that viable when i buy something online
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next, it would be my first time. after the show i was going to wait online at the application store to hopefully pick up one of these amazon things because all the cool kids are doing it with all that said, the days o the big box retailer in my opinion is dwindling the under pending is retail sales number we saw for the month of september th is that hopeful or do we just see the peak >> well, retail sales have been inconsistent numbers over the last couple of figures i think some of this had been tied into tracking and some of this is looking for optimism around renewed benefits. look at apparel numbers and jobless claim numbers. it is hard to get excited about where there is fundamental top down support for consumers i would argue that the consumer is reallocating the household
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wallet and many households is not the same and many households is the same. a lot of expenses have been cut and reallocated. i go back to macy's. jeff and jeanette have done a great job. the sense is it is not going to happen over night and they are going to compete guys waiting in line still love the experience inside of macy's but more importantly digital sales are up 53% they got cash and 3 billion on the balance sheet in terms of accessible credit. look at any business that had to restructure and was fundamentally broken before covid and this is again has accelerated restructuring ideas and concepts that made macy's a stronger company coming out of this even if their best days back with natalie wood, i don't know, love natalie wood. guy had his hand up, i should
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call on guy. >> i would say there is a caveat here, mel. i think big k will come with me as well. >> tim has his hand up >> sorry, really quick because dom has every job in the book, i just wonder if he's ever been santa guy, have you dressed up in the red outfit >> typically not during the holiday season but i don't think it is appropriate right now. >> other kind of show. >> all right, we'll leave it at that >> i think we just proven the land of misfit toys is here on
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"fast money," we found it. >> we absolutely have. all right, one story down. we got four more to go including the one tech company feeling the need for speed and some major flight day "stiv iels,fa fe"s back after this. this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.
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welcome back, we are counting down the big stories. coming up, if you build it, will they come? 5g cover in the u.s. is still spotty carriers could say they have a nationwide network but it is not filled in as they want guy, would you buy a phone whose feature is speed when you can't harness that speed
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>> you know -- rhetorical question is flying you know the answer to that. >> it is kind of ironic in itself >> the ceo of at&t communications, on monday he came out and said hey folks just attempt of the 5g expectations she here it ain't coming any time soon. apple can roll it out any time they want. you can watch the dodgers game in 4-g or something on this channel and i hit the yes button, you use your isp does not provide the service so what's the point you have all this high end stuff and it does not work it is like if you have a ferrari and you don't know how to drive it what's the point they make a great phone but they
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don't have the juice behind it >> it is all about the long run even though 5g is not entirely here right now >> yeah, let's separate the stock price which i would argue a lot of the hype coming into this phone is already in the stock price. if you are out there as an investor and you are discussing 5g is going to be a thing, you are not tending and you are not the first person that walked this ground. if that's why you are investing in apple, you probably should get a job at a car wash. with that being said, apple had a lot of potential two or three years down the road. 5g is going to be a thing. people are going to upgrade their phones if i am looking at apple, i am a profit taker going into year end and i look to build by position over the next year at opportunistic time
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>> tim >> the story about apple is about services 5g is a game changer, listening to guy talk about the technical problems he has at home while he's turning on his black and white tv as deep as it is wide does not make me feel we are getting a technology update on the front. when you think of apple, you got a story here, 5g, limited coverage 75 and 80 million phones will go through a cycle. the real argument by analysts, this is an extended two or three years replacement on an installed based of 600 billion phones or more bk was being more of a trader than an investor there are plechbt of people that's going to hold through it. i think there will be some
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difficulty with apple. i think they pull forward a lot of holiday sales and they have back-to-school to ipads. wearables and services are the dynamics that's going to have apple continue to hold this market cap i don't think you will get a huge opportunity i will be it in the absence of a major mark pull back to get apple a lot cheaper. >> that's an interesting dynamic that tim mentioned, guy, all these people spending money on new macs and ipads to be prepared and working from home and how much money do they have to spend on a fancy new phone that runs on a 5g network that's nonexistence here in the united states >> yeah, we learned over the years and i have learned doing this show the last 37 years, never under estimate the u.s. consumers wants to spend they always want to spend. if there is a new flashy object
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out there and they feel like they need to have it because their buddies have it. i took my xbr out of the house and it probably weighed close to 300 pounds one of the most tedious cumberso cumbersome, awkward thing i have ever done but i managed to get it to the sidewalk in one piece. >> thank you >> the only question i have for you, i don't believe you carry it by yourself because we are taking your entire family. how do you use your sony laser disk and what are you doing with that i am worried about you and out dated technology still in your legislati living room. >> i appreciate your concern, i was able to upgrade the nano chip micro processer is able to use my new flat screen that i purchased. thank you for your concern, tim. >> bravo
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>> yeah, so, guys, zoom is notwithstanding. wrapping this up is strategic here you are talking about year end and taxes could go up, capital gains taxes could go up next year strategically there is an opportunity. if you like apple, take your profit and pay your capital gains. up next, the count down continues. we knocked down amazon and apple's big story of the week. what else do we have on tab? yes, that was a clue stick around and find out, fast five back in two
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swelling of the arms and legs and confusion. we spoke up and it made all the difference. ask your parkinson's specialist about nuplazid. ask your parkinson's specialist keeping your oysters growing while keeping your business growing has you swamped. (♪ ) you need to hire i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base so you can start hiring right away. claim your seventy-five-dollar credit when you post your first job at indeed.com/promo welcome back to our "fast 5. first, it is time for "fast break," say good-bye to tab. coca-cola is trimming its
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beverage portfolio it has been around since 1963. guy, what are you going to drink now? >> mel, do you know what happened on april 23rd, 1985 i lived through it that was the day that coca-cola announced they were changing the formula of coke and by july, they're changing it back to classic coke if you call the genius of that whether they stumble upon it or not, everybody was talking about coca-cola. this is what i would tell ou, it is a genius marketing plan >> this is a fake tab, marketing stunt, they'll bring it back even though it has 0.1% of
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global diet coca-cola sales. >> shepard smith is going to come on. we probably have not thought of tab and they'll be talking about tab on his show. i guarantee it everybody is talking about tab now. >> satim, do you drink tab? >> of course, i drink tab, i am a tab-aholic >> i have been drinking it on a friday night watching tv it is a bygone era tab kept us trimmed or doing whatever we can. sad to say tab is on its way out the door along with fanta and fresca and pop soda and cream soda >> don't say it about fresca
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i love fresca. saccharin ace sweeter for tab. this was marketed for the beautiful people, brian kelly, this is day of yore. >> yes, thank you for coming to me when you say the beautiful people i totally understand it is bittersweet. a little known fact of bk, earlier in his career he was a flight attendant and he lived on tab. >> oh my god >> i think guy's point is interesting. we spent 10 minutes talking about tab. >> coca-cola is getting rid of these zombie brands and zico, the coconut water as well.
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>> let's talk about a proper transition for coca-cola vitamin water and different type of sports drinks and wellness. coke is going on on the right side of that trade i love owning coke, they made some structural changes. i think coke will be gearing up and prepared for the next tab. i will be drinking it. >> the disaster you have to kill decades later, guy >> i am telling you now when they come back in november, i want you to pay omash to me. >> we'll play this tape. >> if i said to you how about a fresca, what would you say where does that come from in. >> i don't know. >> classic mel
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>> i know you don't know >> my first reaction was yes, i will have a fresca, can i have it over ice but you are referring to a movie line. >> of course, i am >> i digress >> can you tell us where it is from >> the great ted night, watch a movie, have the twins watch it, it will be fantastic >> it is appropriate >> we can go line for line for that movie we can do another show up next is back to our count down, we got our head in the clouds for this one. that was another clue "fast five" is back after this break we're excited to do business with you
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welcome back to the special edition of "fast money," coming in at number three, expect some major flight delays. the sea of united airlines offering a somber outlook for the airlines "i think demand sort of starts to recover earnest end of next year beginning 2022 and business demand getting back to normal in, i would guess, 2024. tim, we have been talking about getting on the other side of this panpandemic if the other side is 2024, what does it mean >> well, it means maybe brian kelly will retire from being a bit coin dominant player to being a stewardess again
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worse case we are talking about 2022 the trade with the airlines is staying with the best balance sheet and the folks having flexibility on cost cutting. those are going to separate. there are winners and losers going into this. there are smart people that come on our air all the time and some really smart things to say about in the group you will see relative value and the minute you start to see separation instead of them all trading with the correlation. that's a good time buying airlines because they will be out performanced delta and southwest are the ones you can own. you can own them until brian kelly goes back putting on a stewardess outfit. some of them i have own all the way through and i have traded around a bit i think those charts actually kind of interesting. they held up through some bad news >> the guy is from the ual, ceo,
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do you think he's being conservative do you think people are going to h hold off that long when it comes the flying if the deal is to b mae made and the deal requires you to go to omaha or nebraska, i bet you would hop on that plane and go >> it is a cultural shift where it is socially acceptable to just do it visa zoom while i do think people will hop on a plane and more importantly for leisure travel, people will certainly be out there i think the business travel shifted. that's not to say there won't be business travelers but the person, i used to hop on a plane and do a day trip to san francisco. those days are over. this is going to be done via video conference and you will still have business travel, it will just be at a much lower level. even if there is a recovery in 2024, i don't think it will look
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anything like it did in 2017 >> i feel like bk is in my head because he mentioned the zoom. you know what made at an all time high? zoom the market cap is $160 billion which is more than all the airlines combined. boeing is less than $160 billion zoom is telling you the airlines have zero clarity. business travel has been fundamentally changed in this country. we have learned that you don't have to go to san francisco for lunch unless you like the peaking duck one of the restaurants are serving. >> sourdough bread >> all of those things you can get in the fine city of san francisco. but tim, in terms of the airlines asking congress for more money when so many airline
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analysts we have talked to, these airlines do not need this money. is that just for the prospect that things will be worse or longer what are we seeing here when we see these ceos go asking for more money >> there is a lot of different issues here. there is a lot of, you can call it playful political issues as well especially for airlines that are buying back stocks and on sop level they're easy to attack and this was a black swan event. you can look back and have them coming it is part of that definition. for airlines, the fact they are looking for more money on some level, the politics around where they, that money is going in one wallet and straight into that employee and on some level, that's government stimulus to the extent that's something and i think the congressional constituents want to get booieh.
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i think there are airlines and g delta is one of them hey, i don't need any money at any price. now i think you can't have it both ways and not all airlines are in a position to say that. invest with the airlines that have the ability to say no and if hand outs come from the government, they're coming from the government because they are political favors, political hand outs, i should say >> it is kind of interesting that tim brings that up. i mean it is really fascinating how easy this money is out there is flowing into the air. they're very important to congress people that actually have to fly back to their constituents every weekend without the airlines they would not be able to do their job. i think there is a little bit of self-reenforcing activity going on there if i look at what the airline
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ceos telling us, four years from now i don't know what the clarity is going to be if i am an ambassador, i want to stay far away from the airlines. >> there are tens of thousands of people that work in the industry that are losing their job. it is heartbreaking. i think that's something we can all agree upon what i would push back and say there are other ways for the airlines to raise money to keep people employed other than going with hat and hand to capitol hill and taking it from the t taxpayers from this country. we can't privatize gains and social losses. people will say there is no way they see it coming, i adprgree you have to prepare for rain nyy
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days >> i mean at the risk of being added on twitter, i mean some call this corporate welfare, keeping the airline afloat at a certain point. there is that sort of moral question, should you allow certain companies to go bankrupt that's happening across our economy and not every industry is getting sort of a bail out with strings attached or not why the airlines and why again, tim? >> well, they're too big to fail there will be consolidations the government is going to need to protect some of that infrastructure and let's face it relating to air travel and tsa and security and safety issues, the government is very involved in the industry and the government is employing a lot of people there, too.
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i think there is some balance here we had different industries and different prices and setting the table and we can talk about what 12 years ago the case for airlines here, some of the airlines have tried to do what think need to do to be aggressive on job cuts we are seeing that businesses are going to come back slower and that cash burns the most important point now. >> coming up, we are getting closer to the big finale of this count down e nd out which stories madthe top two when the special edition of "fast money" returns. ready to take your immune support to the next level? nature's bounty is here for you. the number one herbal supplement brand
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welcome back, we are coming up to the top of the hour and the news with shepard smith, shep, what's on tab >> i know "fast money" is all about trading and numbers. we have our three big numbers, 18, 22, and 8. 18 as in the number of days we get to the election, 22 million and counting, the record amount of people already cast their votes. 8 million, the sad milestone we crossed with covid-19 cases, all of that and breaking news as it happens at the top of the hour here on cnbc >> there is an uptake in certain states in covid cases, what more can you tell us? >> we are in utah tonight. it is one of our focuses they're having a horrible time a record of icus so many hospitals are getting
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full and a hundred people admitted the last 24 hours or so melissa, this is the kind of thing we are seeing at hot spots around the country it is established of a second wave or a surge or whatever you want to call it. the question is how bad does it get? we'll talk to doctors tonight of what it is doing for their concerns and first responders. we'll see you then >> shepard smith cases continue to rise across this nation, that leads us to story number two in our count down we are tracking the treatment, let's get straight to meg tirrell. >> we got the latest from pfizer today where he laid out what the fda is laid out for.
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they need efficacy but they need to have two months of safety data in order to file for emergency use authorization and they anticipate of getting that by the end of november. maderna is on a similar time frame. those two months of data is when half of the people in trial have received both shots of the vaccine. that's why we are talking about the end of november. the first vaccine into phase 3 trial, astrazeneca started their trial in august and j&j had paused their enrollment because of an unexplained illness from a participant. we learned antibody therapy,
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that's a treatment for covid-19, that was put on pause as well in hospitalized patients. they look that as an in balance between the people who got the drug or placebo. it is not exactly clear what happened on that one >> we are waiting for more details. >> what's the status of w.h.o. study shedding some doubt of remdesivir treatment >> remdesivir was the first drug that we learned about to have a potential benefit for treating covid-19 this big study that came out of the world health organization done as the solidarity trial is casting some doubts on that. it is looking at remdesivir and three other drugs and found no benefits, at least in terms of saving people's lives. gilead dispute these findings and call into question how the trial is run there are certainly a lot of
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debates going on now about the utility of remdesivir as patients are so sick they're in the hospital could it be helpful earlier? that's something people want to find out about >> meg, it is guy, this is more of a reporter's question historically the ceos, all the people you talked to never had to discuss trials this early on and some of the ins and outs of these trials and now because of what we are dealing with, they're forced to do it on a daily basis, do you find it they're struggling and trying t explain what'sgoing on has there been a learning curve to all the people you have been talking to >> that's an interesting question all the letters we have been seeing, gilead, they have been publishing a lot of those back in the spring when they were the first company out of the gate with remdesivir and with something that could help. there is a message to the company that people want information and want transparency and the public as a
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whole is really learning of this process in a way that we just never had before because there was never so much interest in the clinical trials process. now we are figuring out what does it mean to get two months of safety data, we'll get safety efficacy details first i hope the message is more information is better and transparency is better, too. >> meg tirrell who has been doing a great job keeping track of all of this for us. this is the first time we had a front row seat to the ups and downs of clinical trials we learn of these results and it affects whether it is consumer sentiment or market sentiment. >> yeah. it certainly does.
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when we had the tarp and all that, you are seeing how drugs come into the market as a consumer, you have to look at it and understand this process is a little messy. it is not as normal as we think it is. i think there is a lot of space for optimism here. we got the entire world focused on this one particular disease not only that we are getting closer to a vaccine but therapeutics are getting better. some therapeutics may work for some and may not work for others now we have a whole cast of drugs that potentially could be better there is going to be some kind of thierapeutic and some kind of vaccines we'll get some kind of stimulus. that's a lot of room for optimism when it comes to the
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bulk and the health of the u.s. and the economy. >> that's glass half full. the impact on this is huge that's a long road even if the vaccine looks good initially >> it is true. i do think the ceos of these drug companies have been cautious and balance and rational with their statements about how you cannot rush science. this was a disappointing week. we understand there is a process and the most sophisticated phar pharmaceutical company in the
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world. no one is going to bend the rules or process to get to a place where we need to go. with this week glass half empty toldyou though those trends an trades from the market from covid 19 continues we are not moving quickly to a reopening trade. you can make an argument and i don't know if this is a second wave or third wave, we may be in the first wave in a lot part os of the country to the drug companies, gilead, they are dam if they do and they are dam if they don't. this company was given one or two days traded upside but not rewarded by that i think you have to be careful of selling this and i am bullish on gilead, what they're doing in oncology and in hep and hiv are
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fallen because of their success are still a foundation in which to own it. >> coming up, the big reveal, find out which story topped our list this week it had everything to do with the virus, we'll bring it to you when we come back.
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americans need some help we heard from jaime dimon, he told investorinvestors, a good well-design package will increase the outcome welcome back to the show, kim, great to see you >> i don't think you could be disputed that the economy, that americans need this help why can anything be done until march? >> the two sides are locked in battle of negotiations between plans. the urgency to get something done has been pulled the last
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three months right now both sides decided electoral politics are too close to try to hammer out a deal for fear of being a winner or loser, i don't think it is more complicated than that. >> how is there early voting now, how does that factor into this whole notion that there is electoral politics going on if americans may have casted their vote already >> well, upwards of 20 or 30 million casted their votes that means there are more left to cast their votes. both parties have elements that believed doing a deal on the terms of the other party right now is worst than waiting to find out what happens in the
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election and waiting to find out when you can pass legislation, that may be the lame duck. i think you have to have a lot go in one direction to have lame duck legislation for example, if the senate were to flip to five or six seats, meaning alabama's seat stays in democrats' hands then republicans may be willing to move something out if the economic fundamentals advised it >> kim, it is brian kelly, you mentioned the academic fundamentals, it seems as though these bills tepnd to pass when either the stock market fell apart or a real bad economic outcome. where is the pain point as po politicians. i find it troubling they're
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haggling when americans are hurting. what is it going to get it closer on the economic front and our stock market front >> if we are going to have a collapse in the third quarter, more than likely we would know it by now and that would be motivational interestingly the last segment you mentioned -- third quarter, congress came together passing not only the tarp program but the emergency program, two large bills. they did that during the september time frame the lame duck session was not that impressive. unless you see a catastrophic event into the third quarter going into the fourth quarter. it seems unlikely that the two sides are going to be put together to get a deal
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>> kim, it is tim seymour, thank you for joining us when you consider the swiftness of the first stimulus package and how the fed is thrown on the kitchen zi kitchen sink at things, is it possible an indictment on a failure of the first stimulus package and to some extent there were a lot of in efficiency there and a lot of people gaming the system is there any sense there is a fear that they don't have the right plan in place? >> tim, that got to be part of it in the minds of some people more importantly the size of the package that came through in the summer probably started to get some members of congress worried that they were throwing so much money around too soon without accountability that had a lingering effect. what's stifling the negotiatio ,
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are calculation around politics. when ever washington out lays a very large sum of money in a quick period of time, we are going to have in efficiency at best some of that is uncovered and i am sure it is making some people full back from another bill and at least temporary >> kim, always great to speak with you thank you for your time. thank you, melissa >> kim wallace, knw. >>, we started talking about the blow out retail sales numbers we got this morning what does it tell you? the economy may be fairing okay? and no stimulus or are we in for a shock? >> listen, i know we said it all the time let's not confuse the stock market with the economy. a lot of people are hurting and they look to see the record for the stock market, how can it be given what we are doing right
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now. it is heartbroken. doug mcmilan, i guess what's going on here, that's bk's concerns all along, probably the market is under estimating that. >> is there any thought that march may be optimistic since you are skeptical the whole time yeah, listen, i think march is a big problem for the market. in terms of the stock market it has not priced in a march or later delay in the stimulus. >> yeah, the concern here is the real problem for the economy may happen just around christmas as we head into the holiday season, tim. >> look, we heard from banks also this week and the trends that these gens are talking about in terms of main street,
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banks are reflective of main streets. very disappointing lending and it was not just commercial lending. it is certainly on the individual basis >> that was fun, guys. thanks >> i think i will have a fresca now. >> hour. the news with shepard smith starts right now. >> i'm shepard smith on cnbc, and this is the news >> our covid economy stimulus stalled, but americans not giving in. retail optimism rising holiday hiring up. how far can our resiliency carry us. >> early voting seems like it makes a lot of sense. >> the vote getting stronger, historic early voting. new registration numbers what it all means in the race for the white house. more covid chaos on the gridiron the patriots cancel practice r

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