you're in a position where you can think about those things it is nice to be -- with your g-650, which i love. barry, thank you great to see you today it has been -- i laughed, i cried, it has been like war and peace today. but here we are, four hours, we'll see what happens, please tune in to jim and the gang for "squawk on the street. join us tomorrow good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber we wait for the count. election results in flux amid the highest turnout in 120 years. all eyes on michigan, wisconsin, pennsylvania we may know a little bit more today. futures yields, currencies, wild overnight, aexpect as expected the blue wave trade, that reflation trade is unwound. >> i'm glad you mentioned that i'm focused on the senate. what the senate is saying, look, there is comfort for the markets. don't worry about a big tax

increase you don't have to sell your stocks to beat some kind of capital gains rate that is quo going to be punitive for rich people i'm not saying it is solely business as usual. but i am saying that if you own tech stocks, which a lot of people do, there is nothing to keep the stocks from going higher remarkable night, pollsters seem to think there would be this blue wave that got avoided if anything, there is, i think, a recognition that whatever the heck we had before election day seems to be the same after so, david, you know, i feel kind of business as usual for us. >> well, it is, carl, not business as usual this morning as you say as the votes continue to be counted in important battleground states. three you mentioned. want to add georgia in there, potentially north carolina, still those early votes, carl, being counted and tabulated and we're paying close attention >> we are, guys. in fact, front and center this

hour, the presidential election remains unsettled as voting continues as david said in those key swing states the race appears to hinge as david said on a familiar set of places, wisconsin, michigan, pennsylvania, but, of course, north carolina, georgia, even arizona and nevada remain too close to call. the results may not be known until later in the day, maybe later in the week. here is where things stand in the electoral college. biden 224, trump 213 does take 270 to win the white house eighth both stiand both sh to do so, jim. you can't say this wasn't in the playbook the notion that the president would outperform polling expectations on election night and then it would turn into a contest of mail-in and we'll see to the degree to which it becomes a court issue. >> yeah. i think the pennsylvania kind of epitomizes the suboptimal way that america is handling it, where there was challenge to be able to say, so all votes had to

be counted yesterday, and suddenly the keystone state, keystone for this election, has until friday so we're all held because of them, some of the other states i think they'll resolve it sooner, maybe today. idea that somehow pennsylvania has decided that it determines the election. >> well, it may not determine the election you point out because you can go down a number of maps that say, without pennsylvania, if biden were to win michigan and wisconsin and nevada, he would still win. >> right that's true. >> pennsylvania may not actually be crucial, where president trump does have a significant lead right now, but to your point, there is still a lot of counting going on of mail-in and absentee ballots all of which were either received prior to or on election day. >> they had to make it there why does it take this many days. why does it take until friday? >> some states don't begin counting until the morning of the election florida begins counting sooner i'm not sure some states don't begin counting

until late and that is part of it you have an enormous amount of these mail-in ballots, of course, because people are being encouraged to do so. because of the virus and concern if they had any about going to a polling place i will say yesterday i went to vote, the easiest thing i've done ever, five minutes, only people in there were people directing me to where to go, carl obviously in new york, you vote red or blue, doesn't really matter, you know which way the state is going but kudos to the new york city election board because they did a very good job. >> yeah. i think maybe, jim, one of the untold stories or undertold stories is the cleanliness of the process, right the mechanics of the voting. we're in the midst of mail now, which is to some a different issue, but david's wait was short. lots of minimal reports of delays, maybe in north carolina, but it worked. and with the numbers that they had to handle, you have to hand it to some of the boards of

elections. >> well, look, let's face it, where was the violence where was it where did people clash >> thankfully nowhere, jim but there is a concern as we get into this period, which some had forecast might come, obviously there are plenty of polls that indicated this would be a much wider margin of victory for vice president biden th that is not the case if he's able to get a lead here and get to 270 as the votes get counted or recounted as there are challenges and as carl mentioned, potentially by the president, and the courts, there is the possibility for unrest. >> i think that the real difficulty would have been if there was a landslide or a big -- really huge vote for biden in the senate, and the president was just intransgent and troez and chose to ignore it and said he's still the president

look, what time of the middle of the night did he declare himself the winner >> let's take a quick listen for those who may have gone to bed early. the president and the former vice president did speak overnight. this is trump early this morning. >> this is an embarrassment to our country. we were getting ready to win this election. frankly, we did win this election so our goal now is to ensure the integrity. >> we can know the results as early as tomorrow morning. but it may take a little longer. as i said all along, it is not my place or donald trump's place to declare who has won this election that's the decision of the american people. but i'm optimistic about this outcome. >> jim, how would you characterize the market's

ability to absorb the president's false claim that he won? >> astonishing this market is so bulletproof, that it is amazing look, we're a i did individualed nati divided nation and somehow, remember, the futures do reflect far more than people realize, they reflect what is going on in tech the tech just loves the idea there is a -- that there is not going to be endless hearings in the senate, endless hearings like the '30s, we have to find out why there are rich people and if we should expropriate their wealth that's off the table you have tech running. i cannot, i cannot stress the importance of the california initiative that allows the third way of doing things. a referendum on the gig economy, the gig economy, whether you like it or not, the gig economy is the way to be able to make it so tech make more money than if they had to hire everybody and give them benefits. >> we'll talk more about that.

it is very important to the likes of uber and lifyft and companies like door dash it is private now. you messengntioned it earlier, senate, again, many of the polls had a real strong possibility that the democrats would wind up controlling the senate that is not going to happen. >> no, if that happened, yo wow actu you would have a chance for drug prices to come down. >> that has a lot of implications if joe biden prevails here, you got divided government to your point, you made it at the top of the show, unlikely to be as significant a relief package if you get one at all. infrastructure spending, carl, i think you can probably say, i don't know that could be a heck of a challenge to try and get something like that through. and so many other things that might have been on the legislative agenda of a biden administration if they had in fact -- if they come to power, and had the senate on their side that's not going to happen as jim points out, the market may actually appreciate and like divided government, it does seem

as though that is typically the case. >> carl, last night, i gave you a list of healthcare stocks that i said win because unless there is just some sort of incredible wave these companies get their way. i think the direct impact for people who are not watching for the portfolio, but thinking about their pocketbook, big loser last night, for the people who are in the middle class. because what it says is you will see no change. united health won again. humana won again as someone who, david, one day you find this out, i hope, someone who is in medicare, it is such a lousy plan, it is better than nothing, but you got to go to humana, which had an amazing number last night. carl, there is one notch for the victory of capitalism and the way we run health care new and those stocks with all be bought >> jim, on the calculus on stimulus, is it -- what is the narrative now? maybe less generous package than

pelosi wanted, but there is more discussion today that the speaker may need to compromise given the fact that while they hold the house, probably a net loss. >> the senate, the republicans in the senate believe in a v-shaped economy there are ill advised nature of what is causing that because of the belief that they have -- they seem to think that there is no new wave of covid, and they're not going to be any job losses the same year is the secretary mnuchin is more aware of the 14 million people who are about to lose their jobs because of covid in the hospitality industry that i think a deal can be done remember, the president did say he was going to do a huge stimulus if he won we don't know. he's not won, whatever there is covid i keep coming back to, okay, with election is almost over, now we got to face covid, and covid is going to require a gigantic amount of money thrown at this economy, since we don't have it under control. david, the restaurants are gone. >> right. >> they're gone. >> i know. >> 13 million, 14 million people

they have some food on their plate. unless people in washington are totally oblivious to the nation of playing for dinner, which would be horrendous, that is when is on the agenda. covid did not -- covid was not -- covid was another big winner last night. >> right, you may be right, and there are those who are looking at the results in places like florida, and i think we had some people on -- on the show last night, from st. petersburg, indicating they were worried about lockdowns under a potential biden administration not this biden said there would be, jim, but he has talked about being much more aggressive in trying to take control of the virus. now -- >> he believes -- he said over and over again, this is a -- david, when we look at the vote totals, 50/50, we have to understand that there are a lot of people in this country who do not believe in the scientists and think the scientists got it wrong and thinks that sure a hoax and this was a victory for the hoax group. >> they're listening to what the president has been saying for many months now. >> this is not a victory for

masks. a victory for the people who say masks don't work and what really matters is get tough get tough contingent. >> jim, obviously the network news desks are taking their time calling these races and rightfully so. if you're looking for tells in the very short-term, are you looking at prediction markets, futures, and which futures, and yields, dollar or something else >> what i think people are just saying is it is all the senate, carl it is weird. it is almost as if, hey, listen, the white house, doesn't matter, as long as the senate is different from the house, we're okay nobody gets anything done. this is a nobody gets anything done referendum, i think ultimately that's good for three days something -- >> well, you know, it is not like there are any challenges facing our nation that actually might require legislative response

i mean -- >> like the government funding. >> that or dealing with, you know, i could go long down a very long list as you guys both know but there is a need, potentially, for finding some common ground and i think had you listen to everybody this morning and listening to barry diller who i thought was so eloquent this morning on "squawk box," and heart felt, we're a divided nation more than we have ever been and regardless of who takes control of the white house, that's not going to change and it becomes re difficult to imagine there is enough common ground in this country to agree on anything that will keep us moving forward. >> you don't think there -- whoever loses is just going to have to say, okay. we have now -- let's say trump wins >> let's say trump loses, could you imagine him saying, okay, now i'm going to stand aside >> no. no what i was most worried about was a big defeat by trump, and a suggestion by trump that was a

complete fraud and he's not going to leave the white house no matter what there is a bit of a legitimacy here, he challenged it because it is cloese i don't blame him. we could be in a situation where it would be like the military. who would the military side with it would be -- it is a soft j, a junta. >> that's not going to happen. >> the junta is off the table. >> we'll see what happens. and i know you're looking at the same things i am in terms of the ap, i believe biden has taken the lead in michigan according to the ap. >> are you allowed to say that yet? >> i don't know. i guess i just did the ap is a pretty good source but we'll -- that's just vote totals that's not saying who won. >> it is important. >> right right. >> yeah. and in fact, we may actually get some numbers out of wisconsin before we get michigan today speaking of which, phil lebeau has been in milwaukee for the past 48 hours and joins us this

morning as well. hi, phil. >> let me bring you up to speed in terms of where things stand with the vote total in wisconsin so far at this point, nbc news is saying that wisconsin is still too close to call. but if you look at the vote totals, and we will talk about why the big change happened early this morning, joe biden appears to be up by just over 20,000 votes with almost all of the votes counted. we say almost because we don't know for sure how many absentee or early ballots may be out there in different locations around the state that have not yet been tabulated here is what happened early this morning. call it joe biden's early morning surge. that's when the city of milwaukee finalized its early and absentee ballot count, remember, we were in the room counting the ballots yesterday, delivered it over to the county and you saw the big surge. milwaukee and green bay, most notably, those flipped wisconsin from president trump leading early this morning to joe biden now currently holding a 20,000

vote lead. so could we see a recall it is not automatic here in wisconsin, according to the election commission, the deadline for requesting a recount is three business days after the elections commission receives the last statement from a county board of canvassers what will happen now, guys, each county board, will go through their votes one more time, that's not a recount, they'll just go through their totals and say to the state elections commission, here you go, here's milwaukee county, here's dane county, whatever county it is. then the state will say, here is our tabulation if at that point president trump and his team believe, look, we're going to call for a recount, that's when you would see it happen. they have three days from when that happens and one other note, guys, unlike what we're seeing with pennsylvania, and other states, where they still may be opening up ballots, several days after election day, that's not the case here in wisconsin it was designated by the u.s. supreme court, a week ago,

remember that case, where people said or the democrats said, look, we would like to see them open up ballots as long as they're postmarked by election day. and the u.s. supreme court said no in the wisconsin case, you have to open up and you can only count what is received by election day so this is not a case where they can see some mail come in today or tomorrow and then try to count those votes. at least that was the ruling by the state -- the u.s. supreme court. so, again, guys, that's the latest from here in wisconsin. >> phil, good information, and by the way, former governor scott walker this morning tweeted the election recount procedures for the state of wisconsin, maybe one indication of where we're going we'll watch the results of that state later on today we'll take a break here. a lot to get to, a lot we don't yet know by the way, there is a fed decision, we have adp ahead of jobs number on friday. "squawk on the street" continues after a break.

sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... boss: doug? sorry about that. umm...what...its...um... boss: you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.

♪ 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 hundreds on your wireless bill.

plus, get $300 off when you buy the samsung galaxy note20 ultra 5g. learn more at your local xfinity store today. shares of uber and lyft are both up dramatically in the premarket. this after california voters approved proposition 22, which allows both companies and other so-called gig economy firms to classify workers as independent contractors rather than employees. it is a big victory, jim, you

mentioned it earlier but we can spend a little more time on it now it is a victory for the driver, many would say, who are able to maintain the schedules they potentially like and it is obviously a very important moment for the companies themselves in terms of their compensation structure. >> i don't think they could have thrived if it weren't for this some would think they would have to go out of business. you know that not only is this a tremendous win for uber and lyft, but also a win for the way the people will work in the future and i think it is going to spread this is very big news. >> yeah, you said it, jim, before the break i know there is an email to his staff, the future of independent work is more secure because so many drivers like you spoke up and made your voice heard. i wonder if you think it is a net draw to california for various types of businesses that

rely on gig? >> i think it is look, this is the third way. there is the third way of working. and it accommodates the people choosing to work the way they want i'm sure the people say will you give me a break, jim i was a member of a union and the union never did a thing for me you have to carve away your own thing. that's not all unions are like that my union was particularly corrupt. this is one of the things where i think the folks -- people are saying the gig companies bought the election and i think that's a real insult i think it was a fair and square, very big margin they won, and i think it is a change. i think it is ratification of the way people work. i think it is a victory for the way that i see people who want to work in their 20s and 30s this is their way. this is their way. >> generational shift to be

sure, jim. by the way, coming up, the president's chief economic adviser larry kudlow will join us talk about prop 22, pretty clean sweep for adult use marijuana and more, not to mention the election results still in flux. don't go anywhere. ♪ we made usaa insurance for veterans like martin. when a hailstorm hit, he needed his insurance to get it done right, right away. usaa. what you're made of, we're made for. usaa

if you're concerned about the environment and climate change, how do you find companies that are driving the right outcomes? if you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities? for nearly 40 years, calvert has delivered competitive returns by investing in companies making a difference because we see value in doing good. talk to your financial advisor about investing responsibly with calvert.

with the caveat that a lot can change on the flip of a coin here, look at the s&p gainers, very much centered on healthcare as jim was saying earlier. unh anthem, sticigna, humana, ad facebook up too.

time for a mad dash. legalize it, no need to

criticize it, jim. >> i love that okay, now, you'll see a lot of the big pot stocks, including canopy, i have on tonight on "mad money," down today. why? there was a belief that a blue wave would immediately mean that everybody can start smoking. and recreationally, and drinking because, remember, i was telling david yesterday, there are cannabis drinks that taste great and less filling but you're not going to be able to have those we have changes in arizona, montana, south dakota, new jersey, and there you're going to be able to go get some green thumb industries, gdbif all american cannabis. they're probably the winner and i think people got very excited that biden would win and immediately say, we have to make this a legitimate industry and the house and the senate would agree. that, david, is not appening >> i don't know. really it is not happening? why? do you think the senate doesn't have republicans who conceivably would -- republican states are

saying yes >> they like hemp. >> i don't know. i think there are republican -- >> trump suddenly comes out and says i think -- >> i'm saying if biden were to win the presidency. >> biden is a possibility. but right now people are saying -- >> overall, about legalization nationwide, i'm saying -- >> for now, carl, it is a growing number of states that you can go to, you want to get some pot >> new jersey. >> no kidding, guys. jersey, south dakota, montana, mississippi, yeah, they're calling it a clean sweep in terms of -- we'll see what happens with the cannabis etf. let's look at the election vote counting continues in some key swing states we're watching wisconsin, michigan, pennsylvania, north carolina, georgia, arizona, and nevada all still uncalled at this hour. look -- results may not be known until later in the day or later in the week. spskly michigan, guys, for

example, biden is now holding a narrow lead at this hour but still too early to call for nbc. in terms of electoral college, biden, 224, biden 213. it takes 270 you're looking at 136 million votes so far, percentage of the electorate, back to 1900 to see percentages like this. >> it is incredible. democracy in action, everybody felt like they had to do something. it is very interesting here is one that is the conundrum. so caterpillar in the dow is down 6 is it down 6 because biden may not win? and so therefore china doesn't love us? remember reversion policy to china because biden is part of the old hands of china, or people don't feel the big inf infrastructure bill or both? you see a stock down that much, i think it is both i can't believe caterpillar -- was caterpillar somehow a biden stock? wouldn't that be something

>> well, i can see your point. infrastructure, right? got to assume, again, let's -- even if biden wins the presidency, with the senate staying republican, the likelihood of a big infrastructure bill, you never know how these things are going to turn out. you never know if biden is iffy as elected is going to be able to turn some people to his point of view. but it seems unlikely. >> 20 republican senators who feel like many people who come on air, carl, which is that -- it is a v economy, what are we worried about and covid is going to be under control by the first quarter. that is by the way a totally legitimate view if you're listening to some of major drug companies. if we get a vaccine and we reopen america, we don't need to do infrastructure. we are going to be on fire and travel will happen again look, it is not -- there are some beliefs that -- i had a

company on last night, thermofisher, they make machines, they're testing 100 million people a week now. they make machines that can test 8,000 people a day and they got -- they're pumping the machines out i have now figured out why i'm going to the super bowl with or without the eagles, of course. eagles have to have a winning record to be in the super bowl but they will be able to have a covid free super bowl because the pcr tests, they'll be able to make them in a small window, 15 minutes, and produce enough to have it so 80,000 people are processed in a morning, my prediction, the super bowl will be covid free, just like the way it used to be because of thermofisher's machines and the science that they have done. david, i know you want therapeutics i think that thermofisher being able to test, test, test is remarkable and is not appreciated nearly enough by the public >> you had marc casper on,

right? >> yes you like marc casper he's a very inquisitive fellow. >> they do deals, but we pointed out yesterday, there it is, thank you, guys, they know in the control room, i love that chart, that's just -- go back even further the numbers are even -- you pointed out ten times the return on the s&p. >> 1500% versus 130% and that's without the dividends. carl, what they are doing with the pcr test is not known by people they were really breaking the story on my show and this is -- they're ready to make it so that if you want to test a college, boom, you test the college that day and if it turns out there are a few people who need it, they can isolate. they are going to figure out how to make it so we can go back to work and they're too expensive. i buy pcr for my restaurants if it didn't wipe out my profits for the next three years >> once those lockdowns expire,

hopefully soon, they're going to do testing en masse in ways we have not yet seen and you've been all over that i would add, if you go to the super bowl and see david stteppr pray he only has good news this time. >> we both read lancet i ran back and said, this is it, it is coming i was -- my partner david faber thought it was something that i had just read way too much stev stephen king, "it" and "pet cem thierry ar cemetary" and he called me a giant scaredy cut and i had no guts and there was glory. >> you were right. i was wrong. >> and david tepper -- david tepper wednesday on thursday >> i think a few of us may have anticipated we would be back at the highs in terms of new cases. let's not forget that. we're looking at a market up, potentially up strongly again

after yesterday's move in part because of the idea we will have continued divided government, the senate will stay in control of the republican party, and that is certainly behind some of this move. i don't know, we talked covid in the background every show. you talk about it in the restaurants and the jobs, it doesn't seem to penetrate the concern of many investors at this point. >> because the vaccine is around the corner >> mm-hmm. use of that vaccine is not around the corner. i thought we would have data from pfizer, moderna, possibly even -- >> around the corner is the wrong phrase there will be a vaccine that works. how about we say that? >> right but, we're still most likely many, many months from a sizable portion of the population getting vaccinated. >> we need people to go to wisconsin, to florida, and texas, and i think, carl, part of the problem is you may be armed with the placebo

and if you're armed with the placebo, you're pretty dumb to go to a bar in wisconsin why this you be the human tester how do you any which arm in t the right arm, the left arm? i don't want to be the placebo the placebo is not -- that's bad luck, placebo. >> jim, last night i asked you, you were talking healthcare stocks on our special and i asked you whether or not it was poised to benefit from gop senate more than tech. facebook up 7%, back to 282. got to go back to early september, labor day, basically, to see that. do you think it is similar dynamic at work? >> that could be the senator -- the senator warren show trial. you're not going to break up facebook there is not going to be a move to separate instagram from facebook, which would be bad for facebook without a doubt. taking away whatsapp would be bad.

the only one that would be worth more is alphabet and we're getting some views on the different line-items and youtube turned out to be the most important property that i didn't know about youtube. >> tell me what you're referring to, though, you talk about different views, are we getting more data than we got previously. >> the justice department broke up alphabet, it would bey gantic >> people say they're still undermonetizing on youtube. >> i think the justice department could figure out a way to get more money into youtube. this just department is very commercial the -- they could get way more -- you're skeptical >> i'm listening >> healthcare. >> talking about the justice department, like that are a money management firm. >> the justice department? >> or investment bank. >> no. we got spacs there i am being facetious, but -- >> we may have a change at the justice department, not necessarily the staff.

>> who's leaving >> i mean, if you get a new president, you typically get new doj. >> oh, yeah. >> some of them. >> you're not thinking this is one of those situations like dr. strangelove, fighting in the war room. >> there is no fighting in the war room, jim. >> carl, i wanted to say that for eight years. >> that was perfectly set up art cashin, we love to quote art in the morning, echoing and paying you some respect here, while there is still doubt who the president might be, i think the action is consistent with a sigh of relief that certainly in the case of the senate neither side will dominate and therefore from a market's perspective, nothing terribly destructive is likely to occur. >> well, look, there are a lot of people who have gigantic capital gains in faang and they want to take them. and now you don't want -- the futures are coming off, because i think that kind of euphoria that everything is great is dying down we realize it is going to --

we're not done >> we're a deeply divided nation. >> deeply divided nation, not divided on capital gains the rate is not going higher. >> right well, clearly if trump stays in office, not happening. you think if biden takes over, it is not happening either. >> the senate is for lack of a better term very -- the republicans very much represent the old -- what wall street used to be. which is that we want people to do well and make a lot of money and don't tax them that much. >> yeah. no, listen, biden becomes president, he'll have plenty of legislative battles that may not go his way tech, as we noted, very strong, facebook, carl, as you said. alibaba not as strong. unclear how the china plays are going to fare here. >> they're down so badly, david. >> with a biden administration, versus what we already know from trump. will they be easier on them, will they not? one area where they seem to be -- seems to be some consistency in terms of approach at another time we would talk

more about the ant, the largest financial ipo of all time. as we reported yesterday, not happening, suspended by the shanghai exchange. the regulators there starting to move towards imposing new minimums, let's call it, even though there are more of a middle man, they're microloans at ant financial, because they eventually give them to a bank, they want them to have more skin in the game, that can impact the economics of that business not to mention, guys, reminding people how the chinese government can get into your business very, very quickly. and so this ant ipo could be -- we don't know. but it could be six months, a year >> didn't you find that in terms of the -- look, not a democracy there, but far from it, but it just seemed like they called him in what do they call him into >> they called him to talk to him about his -- about regulatory framework, but he made some comments that clearly angered people. >> we have a very good podcast,

right? we have great cnbc -- we're all great with those things, right david had quote marks on -- that wasn't really a call in. i think that was -- i don't want to say a dressing down i will say that his -- has he been seen since it >> no. >> no, hasn't been >> i don't know where jack is. i'm sure he's around. >> really? >> i'm sure he's around. >> okay. good didn't know that >> carl, as we come off our highs a bit, carl, of course, and we're still watching closely all of those battleground states >> yeah. for the time being, guys, unh is roughly half of the dow's gain to bob pisani this morning hey, bob >> 3 to 2 declining to advancing stocks, and while we don't know who the president is, the market is making a very interesting assumption that the senate will remain in the gop. so that means healthcare up, tech up, banks down. industrials also generally on the downside

look at this assumption, i think the key assumption for the market today is the fact, or the assumption that the gop will retain control of the senate that means no big tax increases, less regulatory pressure, it means less chance of a breakup of big tech. and big issue now becomes for the markets what will the size and scope of stimulus be the scenario planning is easier, if you assume gop control of the senate the question is trump or biden in the white house, do you get a bigger stimulus or smaller stimulus here and that obviously is that we don't know right now. if you look at big tech here, all the big tech plays are on the upside here, two, three, four percent, nvidia, docusign, paypal, facebook all up here the pharmaceuticals, anything healthcare, less regulatory pressure there under that assumption that the gop -- this is the key point here, gop controls the senate. the assumption being so pfizer and lilly, pharmaceuticals on the upside

too including some of the healthcare providers in general on the upside as you heard earlier. infrastructure is the big loser here, potentially. because a massive infrastructure bill is less likely. martin marietta all over the place. 240 yesterday. now 280 yesterday. now 240 something as you can see. these are down rather significantly. these are big infrastructure plays. industrials, again, all over the place, caterpillar 170 in the last few days. there you see in the high 50s now. honeywell, 3m to the downside. clean energy, another big potential loser at this point here so if you look at things like bloom energy, plug power, there is the invesco solar etf there, that's a huge mover in the last few weeks. all of that trading to the downside lower stimulus, also potentially means lower bond yields.

and that is weighing on the bank stocks today they're all trading to the downside even the regional banks like pnc. so the right bet, carl, seems to be for the market as a modest stimulus, 1 trillion to 2 trillion value is not playing as well in this environment the only growth we have essentially is in tech stocks. and that makes sector rotation a lot harder, big outlook, not great for some sectors of the market carl, back to you. >> yeah, there is some tactical challenges going on today, bob, that's for sure. to rick santelli >> these are big beats the market, markit, the services, 56.9 we're expecting 56, now, my data goes back to early 2018. we just used the high there at 56.8 a little stingy with their history on this series of data points

56.3 on the composite. also a nice beat subsequentially both are higher, 56 on the services, now 56.9, 55.5 on the composite 56.3 now to the charts. we know we have double digit drops on all maturities on the long end of the treasury curve let's not forget we had a somewhat soft adp, we, of course, have a fed meeting tomorrow, one day later on the decision all this is playing into the uncertainty of the treasury complex. if you look at a chart starting two weeks ago, you can see we haven't really taken the pattern and blown it out, but we certainly are doing the extremes, went from 90 down to 76 midpoint is 85 i caution we should pay close attention whether we can touch that midpoint at all today or not. if you look at 10s minus 2s, it reflect the same thing we hit a high at 73 and then boom, the bottom fell out.

look at the chart there, you see it really is a breaking out what it really is doing is covering a lot of ground in one session funl finally bunds, bunds at 7 plus low month yields nothing has changed other than volatility the dollar index continues to improve after its initial surge when it looked like the administration was doing better. and pressure on the chinese currency, but it is still improving, which really means there is a lot of mean reversion going on and a lot of dynamics between the fed and the jobs numbers. carl, jim, david, back to you. >> all right, rick, thanks we'll talk to you later. rick santelli. markets holding on to gains. s&p 3414, the first peak back above 3400 since october 27th.

election results for north carolina still too close to call scott with more this morning

>> good morning, david this may not be getting some of the attention as say, pennsylvania or michigan but with 15 electoral votes, north carolina looms larger and larger all the precincts have reported even though our graphic there are saying 95% are in. all of the early votes and same-day election votes have been counted but here is the issue as you see the president up 76,000 votes over vice president biden. the issue is 117,000 absentee ballots that have yet to be counted and not yet returned those loom large as well as provisional ballots cast yesterday that have not been counted. that 117,000 number will change

as more of the ballots come in certainly some people are not going to return those at all what happens next is those ballots go to thecounties. the counties will decide to count them some of that will not happen until next week. they have until the 12th to get votes in we also have a senate race, the most expensive in u.s. history, also holding a margin of victory there over the challenger that too, larger than the presidential margin is still within the margin of those absentee ballots, yesterday did declare a victory and the opposing has yet to concede.

>> and typer telling everyone to let the process take its toll. buts that easy for him to say in the only race here that's been decided. best three-day gain for the s&p since may. aine ckke a break and bba in mute. ♪ ♪ ♪ ♪

joining a a little later this morning, larry kudlow will be with us in the meantime, s&p hanging on to 3,400 volatility has collapsed vix almost back to 31. don't go away. new projects means new project managers.

you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home.

let's get to jim >> goldman folded. they from buy to amd where you been looks like they got finally involved they just wept to buy. you think it is too late, no i want to know what is the situation with marijuana and in

new jersey the less filling drinks instead of this white claw my kids bring home gambling, marijuana. and what states did what i thought gambling would have done better. marijuana did okay the big winner was lyft and uber >> we'll see you tonight mad money, 6:00 p.m. good wednesday morning welcome to "sqwawk on the street." dow up almost 400 here best three-day gain. health care a big part of the rally. be alert, the trump campaign apparently going to be hosting a call here with the press imminently we'll be watching that let's get to rick.

>> yes looking for october read on ism services this is a miss looking for a number of 57.5, 57.6 in that area. 56.6 this is the weakest number since may and then started to move up. we start to move back and follows 57.back to february of last year, so this really is not the number we are expecting and continuing to monitor interest rates as they remain on a soft side not so much out of the range from a two-week perspective. cal, back to you >> thank you so many cross currents here and information we don't know yet. >> so much one thing i think we do know and the market is focused on is that

the senates are very likely to say in control -- the republicans are very likely to stay in control of the senate. anything this morning we can sort of bank on is that and markets seem to be taking their queue from that. the nasdaq up with gains of 2.7% technology doing very well the prospect of a biden presidency, you have to say at this point is rising but the prospect for divided government certainly seems to be even more so >> if there is a potential swing in the senate, although chances are looking slimmer, it would be a fairly slim divide there leading to even more gridlock and something we'll be debating. let's get a bigger election update the race for president remains unsettled. vote counting continues across the country. here is how things stand in the race to 270 electoral votes.

joe biden currently with 224 votes, president trump with 213 there are still nine states yet to be called the critical rust belt that trump flipped in 2016 by razor thin margins, still too early and too chose to call. states are working as closely as possible but they are prepared and legally protected for it to take days. in pennsylvania, they have allowed for votes to be counted up until friday. take a look where things stand 76% reporting. you see president trump with an edge over the former vice president at 54.7 for trump and 43.9 for biden but quite a few votes to count still many of those mail-in or

absentee ballots in wisconsin, too close to call with 97% of votes in, still 103,000 votes to count vice president biden has an edge by a fraction of that. you can see the margin between the two is less than 1% at this hour so certainly a lot of updates expected from battleground wisconsin which happens to be one of the nation's hottest covid hot spots. we are getting an update out of the biden campaign about how it is feeling an expectation we could hear from the former vice president at some point this morning >> that's right. so far, the word has been patience they are giving the following guidance saying things are moving to a conclusion and moving to a conclusion in our

favor. in wisconsin, we feel confident and we have won. michigan, we will be able to start claiming an insurmountable vote pennsylvania, we feel confident and expect philly vote to drop today or tomorrow. georgia, looking for a lead by friday afternoon nevada, expect a call in their favor tomorrow the campaign is holding a supress briefing biden is expected to come here to speak sometime this afternoon. running mate kamala harris is still in wilmington and not traveling to d.c. yet. the biden came pain striking a tone of bide ens and patient yerns. the trump campaign was that neither he nor biden will decide the outcome of the election, the voeers will. >> we'll be back to you. in michigan, one of the other battleground states to be called a nail biter once again there.

we go to brian sullivan. president trump won this state by an extremely slim margin in 2016 the biden campaign as you heard, feeling confident there. >> trump won by 10,704 votes and right now, joe biden by 9,300, 9,400 we thought the road to the white house would go through pennsylvania we knew michigan would be a key state but is it going to be the key state. this is where we are in grand rapids, kent county. votes still being counted here all being counted really to the east we are expecting an update perhaps on timing from the secretary of this state at 11:00 eastern time monitor that and bring you any news michigan has never done this before, guys they have never had this level

of an absentee or mail-in ballots. the state saying, hey, we need patience they have highlighted friday as a possible date. however, it is likely we could know before because you can see 90% of the votes are in. the majority in wayne county biden has to be feeling pretty good about what's going on in michigan with a slide lead the majority of ballots are coming from the wayne area, which is tradition nalgly a democratic area. if the percentages remain, that would pad the biden lead that is based on history anything can happen. this is 2020 biden taking a short lead right

now. we'll get an update in under an hour i have just established the cnbc grand rapids bureau. carl, i know you are from michigan if you want to come visit. they don't like the term rust belt very nice town lovely people here >> we look forward to bringing you home, brian. what amazing work all last couple of weeks, brian, in grand rapids today by the way, the president tweets, last night, i was leading often solidly in many key states one by one, they started to magically disappear as surprise ballot dumps counted very strange and polsters got it greatly and historically wrong >> bringing in jeremy, vix below

29 now almost. doesn't seem like the market is buying any drama about a drawn out contested result >> first of all, i think biden is going to win this and that the senate is going to stay republican truthfully, that kplcombinations excellent for the economy and the markets. i actually think president biden, president elect biden will work better with mcconnell than mcconnell worked with trump. the strength of biden -- he mentioned this early in the primaries is actually working across the aisle he's going to have to work with a republican senate to get something done in the meantime, the republican senate is going to block any tax

plan that comes from the house what more do you want? >> let's be careful calling anyone president-elect >> not an official cnbc call i'm telling you what i think has happened predict it.org was smarter than the polsters by a huge margin. look what they are saying now. >> they came in with more skepticism -- >> i could be wrong but you have to envision this happening i'm envisioning and telling you what that means for the markets,

for economy and legislation. it won't be as big we'll get a stimulus package, an infrastructure package biden is going to go over and talk with the republicans. they are going to do it and get legislation done the markets is really looking at it saying this ain't so bad. honestly >> jeremy, historically, in periods where there is a blue wave, red wave or gridlock, correct me if i'm wrong, generationally, markets have done better in the latter where there is gridlock? >> yes what it is is, yeah, a republican senate, you can say that that is gridlock but it doesn't mean that nothing is going to be done we've been gridlocked for a long time

as i said, if you want -- if there is any democrat. the democrats missed biden's claims of i can work with the republicans because they thought they'd take the senate now they know they have to compromise biden is the man to compromise he's been doing it so that means i think a few things are going to move through that america does need we will need that legislation. that is positive for the next four years >> i want to come back to you on that very subject. getting the idea of an infrastructure even with biden in the white house, it seems less likely. you seem to be putting a lot of faith in his ability as a moderate >> but with infrastructure

both parties putting forward infrastructure trump was just so combative, we are just not going to get to a bill they both agree on infrastructure, so -- i mean that wasn't the point of contention they both agreed on 80 percent of the stimulus bill but then they were at laggard heads with the bailout of the cities and all that. they just needed a compromise. we won't get a bigger bill but we need a bill >> caterpillar stocks not agreeing give me your overall assessment of the markets if you are right the house actually loses some democrats. still maintaining control but losing some of the majority. what does that mean overall? >> this is good. the tax increase was a big

potential negative that is off the table. there will be some regulatory reversals. honestly, i think that will be a much saner condition on the tariffs. there will be a more positive thing on the markets it won't happen under biden. that's another positive for the markets. you can go down the list far more positive than negative for 24out come >> i'm curious, last night, we had austin on who said if trump wins, the market goes up because you essentially have the stimulus package albeit smaller and you have the tax situation and remain

essentially where it is. if biden were to win, you would have larger government spending. later in the term, you would have taxes become more onerous for americans. how do you think the market actually squares those two out >> that's why i'm not sure austin was factoring in the senate he's talking the sweep in the senate that blocks the tax increase there won't be a tax increase. so that blocks that negative a lot of people i have talked to said, you know what -- i could really tolerate a biden presidency as long as the senate remains republican your wish has come true,

christmas is early this is good >> still a lot the day is young thank you for helping us visualize what could happen. we have a lot more for you we'll speak with every core founder and later national economic director rrlay kudlow will join us don't go anywhere. at calvert, we know responsible investing is hard. if you're concerned about the environment and climate change, how do you find companies that are driving the right outcomes? if you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities? for nearly 40 years,

calvert has delivered competitive returns by investing in companies making a difference because we see value in doing good. talk to your financial advisor about investing responsibly with calvert.

t♪ you can go your own way sor about investing responsibly ♪ 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 hundreds on your wireless bill. plus, get $300 off when you buy the samsung galaxy note20 ultra 5g. learn more at your local xfinity store today.

with continue to discuss the market implications. with us to discuss a biden victory or a trump reelection. roger, the biden camp, certainly saying they believe there on track to win the election. we shall see regardless of the out come, it would seem this nation is as divided as it has ever been. deeply desided what does this mean for the future economy and ability to deal with what we have in front of us. >> first of all, i'm rather amaze with the markets the last couple of days they were rallying. a lot of people thought that was

based on a biden win on the prospect of a biden government and likelihood there won't be tax increases that seems contradictory to me nobody ever asked me to be an investment manager for good reason there are far fetched scenarios where democrats take hold of the senate in a far fetched but more likely the republicans keep control of the snachlt thoughts of a very expansive biden a agenda are questioned or unlikely there may be some areas there can be some agreement like

infrastructure the prospects of the biden agenda are limited by the divided government i don't care what your political agenda is, that doesn't good for the country. you have to take your hat off to president trump. he's a great campaigner. he really is but it does look as though biden will end up with the white house because he's ahead in michigan and wisconsin. if he wins those two states and holds nevgs he will win. he can win if he holds those two states without nevada with the

two congregational districts it looks like he will end up in the white house and the republicans won a few house seats but the democrats still have majority there. it will be a contentious next couple of years. that's what you get when you have a country as polarized as this one is. >> let's talk tax policy one of the cornerstones has been raising taxes on those who earn more than $400,000 a year. to raise revenue and lower taxes on lower incox americans any chance that gets through >> that is questionable. i would be surprised with any

increase raising the top or equating the capital gains i could be wrong as we are still reading the results. there are some uncertainties in terms of the senate situation like georgia if the republicans holed senate, you would doubt there would be republican votes for those. >> with the ther're pr president-elect biden, they did say early on about staffing. given strategy, who should we start to think about if you believe biden is going to win? >> carl, i really don't know the answer to that

we all know the names that have been speculated about. a lot of that speculation is pretty thin. roger ferguson and so on i really don't know but i think if you are in the biden white house, that best judgement and the republican senate leadership will take the view these should remain empty you'll have to put forward nominees that will secure republican votes that is the result of the discussions between president-elect biden if he achieves that and leader mcconnell. that just remains to be seen

i would be very surprised if people in the biden camp really know the answer to that. i doubt that they do one of the things that i worry about is protracted period of challenge here i notice the trump manager said we should recount in wisconsin and the same in nevada with the same amount there too. i just hope we don't have a period of complete uncertainty as to how this gets resolved i do think biden will ultimately be the president as we all can see, wisconsin and michigan and i worry about a long and drawn outset of challenges i can't imagine that would be good for markets

>> like so many things, we don't know we'll have to wait and watch thank you for taking some time >> always a pleasure, david. >> in the meantime, the dow is up 600 points. now with the best three-day gain since april. coming up, do not miss larry kudlow as "sqwawk on the street" continues. ♪ ♪ ♪ witenergyng, and change came to every part of our universe. seismic or small, it continues. change is all around us. shaped by technology and human ingenuity,

we can make it work for you and your business.

see yourself. welcome back to the mirror. and know you're not alone. because this... come on jesse, one more! ...is a reflection of an unstoppable community. in the mirror.

check out shares of uber and lyft california voters approving option 22 allowing the companies to classify workers as independent contractors rather than employees both stocks are up first, larry kudlow will join us after this break to discuss the election we are back in two minutes

♪ ♪ ♪

heart monitors that let your doctor watch over you, just like you watch over your best friend. another life-changing technology from abbott, so you don't wait for life. you live it.

>> welcome back. i'm sue herera in the your money, your vote in nevada, counting of ballots has been suspended until tomorrow at noon eastern time. the state has six electoral votes of as of now, joe biden has a small edge over president trump. in seattle last night, eight arrests as demonstrators marched through downtown officials say it was not over the election results but because protesters say they do not trust either biden or trump. in kamala harris's an seft ral village in india, residents hopeful she will be part of the winning ticket part of the your money, your vote update. >> thank you so much

the trump campaign in a briefing call expressing optimism about their position as vote counting continues. the campaign believes it will win arizona, nevada, georgia, north carolina and michigan. they added that teams are in place to make sure all legal votes are counted and that el legal votes are not counted. with us now, larry kudlow with us good to see you. >> good to see you >> could use a little more sleep. i think we all could the campaign in the white house has been prepared for the idea that there could be a legal challenge to the immediate challenge. chris tifty said overnight, the president's decision to make comments against the process was a bad strategic decision do you agree >> no.

i don't agree. chris chiristie is a great fried of mine. president trump was annoyed because at one point, the counting just stopped. he had a lead and none of the networks declared that we'll take precautions with the finest lawyers just to make sure. are ebb this, there is a big difference between counting votes, right -- and mailing in ballots. there are issues about timing. i'm not concerned so much it takes a couple more days to count legal ballots. as long as they get them in on time that's been an issue in pennsylvania whether it goes to the court system, we'll see.

we'll look the president is in good shape he needs to pick up one or two of some key states looks very good. great in pennsylvania and michigan and wisconsin, they are very close in arizona, here is another thought -- >> larry, i just want to -- >> not all of the mail-in ballots are going to go to mr. biden. the president who finished very strong with a great economic message, he is going to get a very large fraction of these mail-in votes. the fact that there is all of these ask hundred thousand mail-in votes and they are all going to biden >> and certainly, we'll make those calls when we have those numbers. you raise the suspicion of

fraud. suspicion is not evidence. in many states, federal judges have allowed the counting of ballots there because of the paean and if they are dropped off by a certain point on election day the supreme court has upheld these. how can the president say they are not legal? >> look, i'm not declaring fraud. we'll let the lawyers determine legal ality. it will work once again, i will say, the president is in very good shape on the remaining swing states. another point. there was no blue wave yesterday. republicans did very well in the senate they may lose one seat maybe not. they'll maintain the majority in the senate that says, guess what, no socialism, no major tax hikes to destroy the economy.

also, no blue wave in the house. so far, gop has picked up at least four seats in the house. this is a very strong day for the republican party and its principals of free enterprise, low taxes and regulations. maintain energy and independence president trump's agenda did very well yesterday. >> you are absolutely correct. no blue wave one thing we can agree is apparent right now if the counting were to stop right now, your candidate would lose biden would get to 270 and win the presidency i wonder if that prospect does come to fruition what do you see the next two months like for you, for the administration as it potentially exists what is it you would like to

accomplish >> on that first point, david. look, this is not unusual. counting is not going to stop. they are going to go through as long as they are legal ballots, we are fine >> that's true it is the president who seems to say he wants to stop counting. >> i don't want to waste time. you are a bit nit picky here, david. the president was mading the fact like there was no counting going on the election night frame just stopped. we'll work through that today and things will be much more cope settic. next two months, we will be meeting today and remaining days of the week among senior policy staff and so forth we'll be meeting with the president for the agenda we have the lame duck congress and a lot of work to do.

still a couple of very crucial asks we would like with respect to small business's assistance i do want to say this, the economic numbers are rolling in becauses this clearly a strong recovery i just you sa a survey from an economist. his trucking survey is booming off the charts housing, autoables, small business confidence. the saving rate is high. that is your spending. the interest rates are as more jobs, more constructioning as the tremendous housing as the

momentum is terrific >> i was going to say, it doesn't sound like you've been unnerved relatively weak reserve. you still believe the momentum you saw in q 3 is building to q 4. do you still think that q 4 will be positive? >> i do. things were gang busters a few days ago as you know including new orders and the rebuilding is just beginning i also see on the street -- i don't follow like i used to. the profit estimates, earnings estimates being revised up

profit estimates being revised up the market and the economy household health is strong let's not forget it may be underrated the money supply is up i think 20 percent e year on year. that is a very powerful stimulus with an interest rate. you'll be plus in q 4. i reckon it could come in at 5%. i think this will carry right through into 2021. hopefully, we have pro growth policies >> larry, there are two dates we have on the calander december 14 which is when president trump has been campaigning for his administration until and then december 11 when the funding runs out what happens between now and the middle of december

>> look, we'll probably negotiate another continuing resolution i don't want to commit the president right now. last night was a very late night. i was 4:00 a.m i don't know if he got any sleep at all i am certain we'll have success in the ongoing administration. >> do you attach a resolution to that plan now? is. >> i don't say that now. we'll resume and i'll be talking to second mnuchin after a while. you are my first stop of the day. it was a very long night i'll be in better shape to answer those questions later on. look, we will look at some of our key targets for the assistance package ppp is one and unemployment assist ans is others

electoral college will go about its business i think by that time we'll know. ballots will have been counted we've been here before not that unusual our system is geared to do this. i'm still confident. i think the president will be reelected. i think he's in great shape in some of these remaining key states in pennsylvania, we are you will 700,000 votes. i know there is a lot of mail-in ballots but a large fraction is going to go to president trump okay let's not forget that. >> we should know both campaigns have held press calls and both expressed confidence in pennsylvania yesterday, both said their internal polling was winning pennsylvania we are not going to make that call until we get those numbers. part of the argument was that if there was a biden presidency,

people's 401 ks would crash, the market and the economy would go to depression. looking at the stock market discussing the government and it is taking it in stride how do you react to that >> first of all, with the results as we know them in the senate and the house, even while the president remains to be counted. what you've got here is a kplin senate came through last night very strong and a republican pick up in the house so that tells me you you are not going to get some of these crazy left wing proposals and across the board tax hikes. the natural gas fraking or the end of low-cost electricity. these are all positives for the stock market i believe president trump will stim win and his leadership will

continue and we'll work on the same groej principals from before that delivered a strong economy. you are right. we are not going to make any calls this morning i get that the senate an house elections were extremely favorable for the go pv. that means a lot of the far left stuff is not going to happen that has to be good for the stock market i'm not surprised it is up on that basis alone >> we appreciate you being our first stop this morning. we'd love to have you back >> any time. thank you so much. >> director of the national economic council >> thank you we are coming off the initial opening highs. ssp up 34.54 seion high was 34.72 we are back after a break. - [narrator] at southern new hampshire university,

we're committed to making college more accessible by making it more affordable, that's why we're keeping our tuition the same through the year 2021. - i knew snhu was the place for me when i saw how affordable it was. i ran to my husband with my computer and i said, "look, we can do this." - [narrator] take advantage of some of the lowest online tuition rates in the nation. find your degree at snhu.edu.

top strategist looking ahead to a strong 2021 find out how he's pling aythe market more "sqwawk on the street" coming up. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow.

let's check in director of floor operations for ubs. art, great to talk to you. >> thank you i'm honored to be here you mince no words today, you think it is a sigh of relief in your words, in the case of the senate, neither side will dominate how long lasting do you see that >> actually, i think it will be quite a while. what we are seeing today is a little bit of the unwinding of the blue wave trade. assuming that there might be a

move in both the senate and further expansion in the house as well as the white house by the democrats. now that doesn't look to be the case so you are seeing things like the energy stocks. oil stocks beginning to move up as the green new deal doesn't look to be a logical proposal. solar stocks are moving down an fact that nobody is going to run any kind of large or radical program through because of the disposition of the senate, i think, will give the market a sense of relief. that's what we're having is a sense of relief rally. >> so how much protection is that against a protracted, contested result, various recounts, lawyers, basically

florida 2000 on steroids >> well, florida 2000 on steroids is well said. i think the litigation will be extensive and it will drag on. it will have a slight negative drag on the market, but, again, the question is will it result in anything concrete one way or another. and that's highly unlikely what will happen is that we will -- as i say, we'll have extensive litigation that will put whoever the winner is under some suspicion. if you remember bush versus gore and bush ultimately won, and for the rest of his term the democrats said he was not properly elected and therefore was not legit. we had the same thing with trump in 2016 and the supposed russian

influence. so i think, whether it's biden or a resumption of trump, although biden looks slightly more likely, there will be questioning as to the legitimacy of who is in power and so i think we've talked a great deal on your program over the past several weeks about divided government and how beneficial. this is basically going to be frozen government for now. now, there is a possibility that given his history in the senate, you could have biden maybe seek some compromises with mcconnell. but no big program appears to be ready to go through anywhere >> right and speaking of compromises, if in fact gop does a net add in the house, but keeps the minority, i mean, how much incentive is there for the house to compromise on things like further infrastructure or stimulus spending?

>> well, that's going to be difficult because it has strengthened mitch mcconnell now and pelosi, possibly even more formidable than she was before so it really becomes a question of whether she's willing to make some moves or not. you have some of the senate, for example, even the democrats are more moderate than liberal so the possibility is there. it will be difficult, i think, for trump to get any kind of -- assuming that biden remains in the lead and looks to be the successor, for trump to get anything done in the lame duck session. so what the difficulty may be is can we get a stimulus package and when does it seem likely, if there is a negative for the market or economy, it is that

that looks somewhat less likely. >> art, hope we get to check in with you more frequently in the coming days. dow is up 600 once again thanks talk soon. art cashin. >> thank you >> we've gotten some important news this morning involving biogen and a drug for alzheimer's that is very, very important. fill us in on what we've heard this morning >> yeah, david so as everybody is hitting refresh on the election results, biotech investors have been hitting refresh on the fda's website trying to wait for the briefing documents to come out they just came out and they're overwhelmingly positive. biogen's stock has been up more than 25% this morning, now it's up 38% and essentially the fda weighing in on this controversial alzheimer's drug that had mixed data, but saying of one main study that the efficacy looks

robust and persuasive. that's what they're saying about one of the studies in the briefing documents this morning. another study was not as persuasive, according to the fda, and that's what this outside panel of advisers will be talking about on friday now, safety, of course, is also a question or drugs. on that note, the fda saying if efficacy is demonstrated, essentially appropriate labeling language will address that question that just means if the drug is approved, there will be guidance to doctors about how to deal with potential safety concerns check out the history of biogen stock to see why this was such anticipated moment you can see back in march of last year biogen discontinued these phase three trials thinking they didn't work. then later in the year they got more information from the studies and said, wait a minute, it looks like it does work the stock bolted back up and it's essentially been a waiting

game to see how the fda would weigh in so the outside panel of advisers votes friday the fda is set to decide by march. if the fda approves this drug, it would be the first approved to slow the course of alzheimer's disease. we're going to have to wait until friday to see what the outside panel says, but the fda weighing in more positively than the market was expecting, carl. >> meg, just one of the reasons that health care is up 5% as a sector this morning. we see most sectors in the green. in fact, even banks trying to make a run at getting back to the flat line. dow is up 600 plus best three days for the major indices since may. "squawk alley" is going to start in a couple of minutes ♪

♪ ♪ we use 11. eleven. why do an expense report from your phone when you can do it from a machine that jams? i just emailed my wife's social security number to the entire company instead of hr, so... please come back. how hard is your business software working for you? with paycom, employees enter and manage their own hr data in one easy-to-use software. visit paycom.com for a free demo. hon? first off, we love each other...

welcome to "squawk alley." i'm caro quintanilla with jon fortt and julia boorstin the dow is up about 600 points, one of the best days in several months, as wall street continues to look for answers and more clarity in the results of the presidential elections as volatility comes in a bit, where do things stand? >> carl, we begin with the race for president. crucial votes still being counted at this hour the outcome remains far from

certain and the electoral vote count stands at 224 for biden and 213 for trump. trump's team is saying they feel confident about georgia, pennsylvania and believe arizona will, quote, come the president's way. the biden campaign believes they have already won arizona and wisconsin, and expect to win nevada pennsylvania also closely watched, where vote counting continues, and pennsylvania is where we find frank holland on the ground in that battleground where officials just wrapped up a press conference frank. >> the press conference just did wrap up. i want to update you on the situation. all 67 of pennsylvania counties are now counting mail-in ballots. in bucks county they've been counting ballots overnight and will continue to do so that is the case of the majority of the state's counties. president donald trump has 54% of the vot