amazon details ahead. and a rough morning for beyond meat, that stock falling 18%, we'll tell you why it is tuesday, november 10, 2020 "squawk box" begins right now. ♪ >> good morning. i'm becky quick along with joe kernen and andrew ross sorkin. and the u.s. equity futures are higher for the dow for now we saw the dow up by about 200 points earlier this morning, right now up by just 74 points and there is big pressure coming on the nasdaq, it is down by 260 points joe mentioned the dow up 830

points yesterday, but the nasdaq was down yesterday it closed down by about 1.5% and thin this morning you see additional pressure down by about 255. s&p was up you yesterday by about 1.1% this morning indicated down by about 21 and then if you want to take a look at the treasury market, you will see that the ten year is sitting at this point right around 0.942%. so yields have picked up pretty significantly, you are getting up towards dare i say 1% in the ten year and that is somewhere we haven't seen in a very, very long time. yesterday big gains but it was a little disappointing great news about the pfizer vaccine. we saw futures take off, the stock market take off. and then give back some toward

the end of the session >> so interesting to me, the vix remained high to me makes no sense. if you really believe that the vaccine was coming and coming quickly, the idea of the vix -- i think there is a debate going on about whether a vaccine is actually going to change the dynamic around stimulus which could also be part of the conversation but i was surprised -- >> you could also say that it was trading out of stocks. there were pretty incredible moves just in the stay at home oig stocks getting crushed and the travel stocks taking off and soaring. so i can see how that could add to some of the instability as people are moving in and out of the trades >> the momentum in the nasdaq, which you would think started with the stay-at-home names, all that excitement just bled into the nasdaq itself it seems like in terms of momentum not every nasdaq stock is a stay-at-home stock and that is what they were acting like and

everything guest was getting bid up anything digital that was soaring almost every day. and it is weird that pandemic would -- that potential vaccine to the pandemic would actually start to take the wind out of the sails of the overall average, but that is really what it looks like is happening these are pretty big moves i saw dom yesterday comparing like different foods you had the restaurant chains, the sit down and eat over the last year, and their stocks versus the ones that you go in and, you know, you have grubhub deliver to you the gains on every stay-at-home story was stratospheric >> and then it argued that that didn't make sense to begin with, those stocks should have gotten hit.

but what makes no sense to me and hopeful as the science is, we talked to dr. gottlieb, the time line doesn't change at all. if you welistening to him, he so get it to the second or third quarter. >> but that is us. you can have high risk people about getting it before the end of the year. you are talking about us and the herd and everything else but -- >> sure. but that is -- >> by the end of the month possibly >> sure, but this won't change the trajectory of the economy which is to say -- >> stock market is nine months ahead. so all of this talking about it, this is all within the -- >> but that is the point that is the exact point. the point is what is going on today ordinary in a month- -- >> we're talking stocks. >> but high risk folks getting

the drug shouldn't change what is happening nine months from now. that is the point. >> no, the point is by nine months, a lot of us will have -- by the spring, we could be going to broadway shows again. >> i don't know about that >> why >> what i'm saying is that trajectory i think i don't think it is any different than where we were to be honest but, i think that was the expectation >> i think you're right, andrew, but one thing that i think is the difference, the idea that it is 90% effective, i mean that shocked me we were hoping that wedding who get something 50% or 60% effective before if it is 90% effective, that means even if everybody doesn't take this, you will get much better and broader coverage >> sure. i'm not -- i'm just saying that we still have a time line that the drug unto itself represents

10% of the globe, 30% of the developed world. there will still be a lot of wood to chop to get to the other side of this and i'm surprised that things moved the way that it did not that it is not great news, but interesting how the world has turned >> 8% is -- or what is 800 points we had already moved up since last week, up 500 every day, so 1800 points last week. yesterday we were up 16 points yesterday. and then that moderated to close up only 800 points and we're up this morning but i've seen it below 100 while we're talking here so with the nasdaq trading up, i just think that it is interesting that everybody got the digital benefit. it was oh, it is a digital stock, a cloud stock, you know, what was going to take three years to happen is now happening immediately because of the pandemic and all of a sudden wait a minute, we may not be in our basement forever not all of us obviously.

>> on the other side of it, on the way up, all the stay-at-home stocks were saying it doesn't matter even if the pandemic is over, they will keep using us and there is probably still some truth to that like in a docusign or amazon, but you think people wouldn't be only on their peloton if they can get out to a gym, or only be on netflix if they can get back out. sure, you will have older people who never used online banking using that, people who will stick to a lot of those things just not in the mass amounts >> i guess some people will be sad that there isn't quite as many zoom meetings i don't know >> let's turn our attention to jeff bezos this morning because he is now in the firing line across the pond, shares of amazon taking a little bit of a tumble this morning, a little over 2%.

here is what is happening. financial times reporting that the european commission is planning to announce formal antitrust charges against amazon and planning to do it today. the case focuses on the online retailer's dual role both as marketplace for third party vendors and a competitor that sells its own goods. the eu is looking into how amazon uses data that it gathers on merchants to com the pete against them and this has been one of the themes and complaints that we've heard for such a long time about this idea of third party sellers using the platform amazon leveraging the fact that it has all this data, sees what products are selling and then in certain cases creates the equivalent of its own white label version and then arguably advantages that. at the same time, i would say to you, joe, i don't know how you feel about it i think amazon has done a spectacular job not only for itself, but in terms of creating this platform and helping frankly small businesses around the united states and

around the globe so i think that it will be a bit of a food fight on this one but we'll watch it >> so many things to think about. you think about even who is disrupted with walmart or any of those. which sur there is a reason they are not paying any taxes because they are providing so many jobs, shareholder wealth so so many pluses and minuses to all these companies. >> look, you know my view on it. the taxes i think actual li we should come up with a better way to deal with it. but to me, the alternative for amazon is to say, okay, we're not going to allow our platform to be used by third part merchants. okay, then where arewe then what happens to all of the small businesses that have been developed on the back of amazon actually >> this is like your apple app

story where a huge distribution, they are complaining that they have to pay something for it >> i try to be consistent. >> both sides have some merit i guess in the argument. i want to know about this mcdonald's thing beyond meat is not like a veggie burger it kind of it, but it is not what is this mcdonald's is launching its own line of mcplant vegetarian items. the offerings could include imitation burgers, chicken -- imitation chicken, and breakfast food mcdonald's didn't say which companies would supply the new items or what agreements they would include. although beyond meat said that it worked with mcdonald's on the new line and speaking of beyond meat, the shares plunged after the company said it had a loss in the third quarter, 19.3 mltd $19.3 millios

slowed to a crawl in restaurants. and just this morning pizza hut announced that it will add the beyond meat meatless sausage to its toppings menu. that stock right now -- well, there is beyond meat and speak to jim cramer tonight on "mad money. and i just thought about it, when she said 90%, we shouldn't glass over that. because you remember about two months ago the second trial of a vaccine hit a bump in the road and had to be halted and you made the point that that is two out of four in the united states where there was a haflt on the vaccine and that wassomorrisome and then conjecture whether the immunity would be longlessing a lasting. and so where they are this

close, phase three is almost over, they got all this data, it is a huge trial and it came out to 90%, so you add and i will that in, and i think that was different than the worst case scenario or the fear that we might never get a vaccine. so i think that is part of it too. anyway, and it was developed so quickly, although it was a part of warp speed or not, it was but didn't take money from warp speed. but moderna, if that happens -- and we don't know. it is very similar mechanism, right? that was definitely part of -- someone wrote in ray crook is tu croc oirg is turning over in his grave. >> whether funded or not, they purchased close to $2 billion of the stuff. probably would have been a private market for it, but nonetheless, a lot of good

things in terms of the vaccine work that have been done and i think a lot of people critical of the president who have given him and the administration credit for it. >> i'm ready becky is ready you're ready right? i'd do it. you're not ready >> for the vaccine >> yeah, if it came in today, i'd take it. >> it is a little like going to space. i don't necessarily want to be first, but i do definitely want to be on board >> you want the arm shot or the butt cheek shot? which would you prefer what is your -- >> i like the arm. >> left arm. i'm a righty, that's why just in case the next day, you know, a little bit fatiguey. >> i was going to make a joerks but you know what, in this environment, what is the up side >> there isn't >> there isn't i was going to go back to zoom -- never mind we'll talk about the progress on a vaccine next and later we'll

swe spe speak to the ceo of eli lilly. their antibody treatment just received emergency use authorization to treat mild to moderate cases that interview coming up at 7:00 a.m. eastern ♪ you can go your own way

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news of pfizer's vaccine returned hope, but scientists say this is just the first step in a long process. joining us now, dr. kedel rio fm the emery school of medicine and also investigator for moderna's trials doctor, we understand that moderna, implicit in that name and the stock symbol is mrna, so we understand that it is similar to the pfizer mechanism for trying to deliver immunity to a patient. is it similar enough to pfizer to where we can extrapolate that moderna could be seeing similar data in its phase three trials >> yes, it is very similar and it really gives hope that because it is also an mrna

vaccine, we may see similar results. what we heard yesterday from pfizer was big news. we were expecting the fda was expecting about 60% efficacy with this vaccine, which means that this is really shooting it out of the park. >> what does it actually mean that -- why would we be expecting 60 instead of 90 let's say that every patient does have an immune response to the vaccine. would that not get you to 90, do you need a t-cell responsibility to get you to 90 would y. would you think only 60 if everybody does make antibodies to the vaccine? >> well, this is a platform that has never been used. there is no vaccine that has been approved or in clinical use today which uses mrna platform so we're looking at a new technology and everybody saying,

well, is this the technology that will be giving us the results that others are. number two, creating vaccines against a respiratory virus is notoriously hard think about influenza. the vaccine we normally take has maybe 40%, 60% efficacy. so people said 60% is similar to influenza, so if we get there, that is a reasonable vaccine >> why is that because it mutates or -- >> because it mutates, but it is also because getting the level of antibodies you need to the respiratory, to the nodes, to the throat, it is really hard to get the immune response there you need to prevent the infection. so what a lot of the vaccines do and the pfizer vaccine does the same thing, if you notice the results, they prevented clinical illness, clinical events we don't know the data we don't know if they prevented

infection or not so it could be that you still get infected but you don't develop clinical disease >> that is weird so we have such a -- i guess it is a healthy fear of covid because it is such aninsidious type virus but in this case, that is good news that the disease covid, not the coronavirus itself, but the disease is something that maybe we can handle with a good antibody response. and we didn't know that. >> i think that if we have a good vaccine that prevents illness, it will be fantastic. and again, the results from yesterday, 94 clinical events of which 85 had the pla see bplacee you 94% efficacy and that is outstanding. again, we need to see more of the data but they may also be protected from infection

we don't know that >> and the other delivery systems, there is a couple companies working on that as one of the vector, adeno vector, do you think that these will be just as effective? but it seems more cleaner and elegant to just are put a little messenger rna in there to make the spike protein, but do you think that they will all be equally effective in. >> that is why we do research. but as dr. fauci has said, we are in this game, covid is such a major problem, that not only we need to do -- you know, we need several shots at goal, we need several of those shots to being goals. in other words, having just one vaccine won't cut it, we'll probably need 2 on 3 different vaccines in order to vaccinate the billions of people around the world that need to be vaccinated so in a way i want all the

vaccines the issue will be if one is 0% and the other is 70%, what do we do >> is it easier to make the messenger rna vaccine than the adeno vaccine? what is the easiest to make, the quickest >> i think the mrna vaccine is a pretty well developed technology the issue with this is not going to be so much doing the vaccine as it is the distribution. for example the pfizer vaccine needs to be at minus 80 degrees. that is really very, very cold so transportation knows move it around and the fact that you will need two doses. so two doses, cold chain, ideally i'd like a dose and doe the refrigeration. that is the j and j vaccine. >> so what do you need for herd

immunity to snuff this virus out, what percentage of the population really has to take the vaccine and/or actually gotten the virus >> we'll need to have about -- if the vaccine is truly 90% efficacious, we'll probably need about 60% of the population vaccinated in order to get to a level of immunity enough to begin to talk about herd immunity >> and then the second question, there are reports out of denmark around a new strain of covid with theseminx how concerned are you about a new strain and what that does to the possibility of having to create new vaccines? >> well, i think that this will be a little bit like influenza in which we may need to be modifying the vaccines a years evolve but so far the strains that we see, mutations that we see in covid are not sufficient to make

us change the vaccine. they are simply -- as i tell people, imagine that are you change going the painting on your front door but the lock is the same as longsg as the lock remains t same, and a that is where the antibody is working against the vaccine, it should not have to change the vaccine thocat much. >> and yesterday it was said that one of the advantages to the new technology, it is not that difficult to change a couple of base pairs in there. if there is a mutation, it is easily modifiable to the next strain you have to make them again, but you could have it ready to go fairly quickly since we know the entire sequence, right >> correct and that is why -- let's not forget that we have ours identified in january and we were able to get a first vaccine into humans in march and start a face three trial in july

so it was easy to make influenza vaccines for example during 2009, we were still making the vaccine in chicken eggs and that takes a long time. >> right doctor, thank you. god's speed. we look forward to the moderna results obviously and hope that it similarly is efficacious as pfizer thank you. >> thank you very much coming up, the money moves that you should be considering between now and the end of the year we'll talk about that. we'll also talk about taxes. take a look at futures, the dow looking like it would open up 151 points higher. nasdaq though down about 232 points s&p 500 down about 14 points and take a look at shares of o

occidental petroleum, revenue did beat expectations.

the stock market is rally may give a boost to your 401(k) balance, but it is not is silver bullet so whsteps should you take? sharon epperson has more on that front. >> when there are big moves in the markets or uncertainty about the economy or politics, that is when many average investors wake up and start to make changes to their portfolios

money mostly flowed from equities into fixed income and the 401(k) investors missed the rally in the past week it is hard to time the markets, so here is what you should be doing with your 401(k) right now. review youg as is tr asset allon stick with a rebalance and increase your contribution if you dialled it back, take full advantage of your company's matching contribution and add more if you can right now. your automated 401(k) savings plan may also have an auto escalation feature where you commit to increasing the percentage of your pay that goes in to your 401(k), you want to check that box and automate your savings for sanity too some call it a rainy day fund or emergency fund, but this is not just for a worst case scenario

this is money you save for nothing in particular, your financial cushion just to keep you sane and also rein in your spending sick session i success in retirement depends much more on how you spend than how you invest your money. >> sharon, it is not just reining in the spending, but also dealing with the spending that you have done in the past a lot of people are facing a lot of debt oo what should they be doing about managing some of that debt >> that is really interesting. when i was talking to the head of research at morning star, he said that this is actually the time to focus on your liabilities, on your loans, on whether the credit card debt, student loans, your mortgage debt anything that you have a loan on with interest rates so low you want to make sure that you have the best rate possible so shop around, consider refinancing if you can where your mortgage, consider looking at negotiating for a lower credit card rate or doing a

balance transfer and keep your debt level at a more manageable level if you have a lower rate so that is something that people should focus on right now as well >> sharon, thanks so much. good to see you. >> good to see you too by the way, for more, you can go to cnbc.com/invest in you. we should note that nbc universal and comcast ventures are both investors in acorns and coming up, major index hitting new highs. we should talk about what you should buy perhaps if you missed the post-leak relection rally and stock futures right you noud, dow nouw, dow up 180 and here is a look at the yesterday's winners and losers at calvert, we know responsible investing is hard.

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welcome back take a look at equity futures, powering high again on back of the good news we heard yesterday. dow looks like that it would open up about 215, but nasdaq down 210

we'll talk about why that may be joe. >> and the dow had its biggest rally in five months yesterday on the positive covid vaccine news from pfizer and here to tell us investors should take the latest moves, greg branch at 1847 financial and paul hickey of bespoke investment group greg, you have some definitive feelings about yesterday's move and even though it looked like some of the nagging problems were being addressed yesterday, there are still quite a few uncertainties. so you think that it was maybe a head fake that may not necessarily just keep extending higher and hire. higher >> yeah, i think that's right. as i have articulated before, four things that i was looking for resolution on to gain greatered confidence the election, the stimulus

covid numbers and a vaccine. with the election, we're not out of the woods yet and that affects the stimulus. to the extent that we have two parties well entrenched on each side that we haven't unanimously acknowledged a winner and allowed a transition to take place, that obviously is going to put unrest into the market eventually but more importantly, this is absorbing all of the political band width, and while this is going on, i doubt we hear anything about the stimulus our economy needs. in terms of the vaccine, you've heard me argue before that whe we have the announcements that provide mini rallies, i expect that to bes case when we hear from moderna and lilly and the like albeit decreasing magnitude. but while we have a million cases being diagnosed almost every week, the equivalent

of 9/11 every week, we can't pinpoint a bottom yet. so what we need is either to get a better grip on the spread and/or have a commercial viability announcement, have approval and this will start production next week. that is when we can say the worst is behind us >> i'm xwogs going to go to pau come back to you, greg now we understand how you feel, i want to know whether that means that you will tell clients do something or you know, a mat goes from 10,000 to 30,000, you might once in a while get more liquid to buy next time it goes down a little, but you can ask yourself should we take profits every point. obviously it is going higher the next 20 years, there are times

that you want to enter it, but i don't know whether that is a good way to think about it, when you should en masse take profits because then you are talking about maybe you think there is a bear market. paul, what do you think? >> i think that we've been focusing on the outcome of the election, what will happen and i think when we focus so much on it that we sort of, you know, lose sight of the bigger picture of things. if you look back -- now you see if he can, communication services, health care and consumer discretionary outperform since election day. and by most people think that biden will be the next president of the united states most people can agree on that. i think people are thinking are these sectors going to outperform going forward in the next four years. but you only have to look back four years ago gwhen you saw financials, industrials and materials and health care outperform everybody thought those would be

the big winners under the trump administration, but all four underperformed the market in the following four years and only two who outperformed were technology and consumer dids kre discretionary. so i think first impressions we make a little bit too much of them and the longer term impact is that who is in the white house isn't necessarily as important on the market as to the secular trends in place. >> so tell me what to do then, paulg. would you ever see a market level where you are like i'm selling all my stock or selling 50% of it or do you just -- ultimate only do that if you thought a 20% or 30% bear market was coming, right? what rough telling people do right now? >> right now we're pretty much fully invested in the market since the summer we've been

rotating out of the bigger tech cap stocks but i think transitioning going forward, i think that we'll see some of the beaten down start to outperform and whether that happens yesterday or it takes another month, i think that those stocks are going to see some reversion to the mean here. >> so you say stay long. greg, how about you, would you be telling people sell 10%, 20%, 50%, all their stock in what are you telling them >> no, no, i don't think that i'm a massive stiller here a seller here. and i fully believe in the rotation as well and i think that it will look like 2010 to 2012 where we saw the value rebound and i think a lot of the names i've talked about has already started to talk about when i talk about the casinos like wynn or las vegas sands, many of that started to pop yesterday. the reservation i have is that

the fourth quarter will be spectacular particularly if we have a retrenchment in some of the names that we're well positioned for the stay-at-home environment. all the share capture will play out in a significant way in this fourth quarter and so if you are going to take profits, i would parse those that are going to have a continued tail wind from those where you think the party is coming to an end >> do you take profits to redeploy it somewhere else or just to have dry powder for the next pullback? because you if you are a took market investor, over time it goes higher, right don't you want to be long eventually >> agreed. so one in the same we are taking profits in things where the tail wind is coming to an end to reinvest that in things that will bounce off of a cyclical bottom next year. now, the entry point for that we'll have to wait and see i'll be patient on that. because at the end of the day, again, if we are forced to

retrench in terms of less economic activity and more stay-at-home, more closures, that will bear down on everything so i'm going to be patient with my entry points, but i'm absolutely going to take profit from things where we're reaching the last innings of the tail wind to redeploy to things that i think will show strong earnings growth and have a vault price tag next year. >> okay, greg, thank you paul, i think we gleaned similar things from you. stay long, just depends on what you are long anyway, time's up. got to run paul, greg, thanks and when we come back, tesla giving a refund to some owners we'll tell you why and later, imax benefiting big from yesterday's rally we'll talk to the ceo about how the cinema business could rebound when a vaccine is widely available. ok, just keep coloring there...

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it is that time again for the executive edge tesla is providing refunds to some model s and model x owners to cover a memory device fail ire that led to touch screen blackouts. and the affected models were made from late 2012 to late -- sorry, early 2018. andrew, i mean, it is strange. there is this screen that you don't see the normal dash. it is very weird you have to get used to it, don't you? >> but it is cool. it is cool as my kids say, it has like a massive ipad in the middle but it is pretty cool. >> the technology is the barrier to entry for everyone else >> and it depends which model

you are in some models do have at least some of the other i don't know what -- you know, dials and everything else. digitally. but nonetheless -- it is the model 3 that just has the ipad in the middle if you will. we'll talk more about that and other things when we come back on the other side of this, but diz any a did a disney and netflix had very different mondays and we'll try to understand what is next for the media sector right after the break. as business moves forward, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers... and deliver our products.

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welcome back to "squawk box," this morning, theme park

operators like disney and comcast saw serious games while stay-at-home plays like netflix and snapchat took a hit. joining us to figure out which way they're headed, cofounder at life shed partners, it's great to see you, rich i mean, i understand why the stocks move the way they did in a sort of very conventional way. but the question is did they move in the right way. >> the market tends to overreact in news. we have seen multiple vaccine excitement days over the last six months, similar trends look what happened to whether it was roku or peloton or netflix, you saw what happened obviously disney and the theaters. there's excitement for a vaccine. i think the reality, though, is andrew, as i'm sure you have been talking about on air. things have been getting a lot worse. trends are getting worse things are closing disneyland paris reclosed a few

weeks ago until february there is no sort of early -- nothing's happening soon you know, i think we can get excited that hopefully there's a light at the end of the tunnel as we move through 2021. maybe by summer, things start to get better and we can start booking vacations and start going to indoor movie theater the. it's going to be a while and a long cold winter at least in new york for the two of us, where you're not going to be going to movie theaters, flying, and you're going to be spending a lot of time playing video games. watching netflix et cetera. >> rich, i absolutely agree with you, but the market is, as you know, forward looking. think out 12 months from now, and the question becomes if in fact there is a vaccine that would allow you to book the trip and do those things, let's not talk about what happened to comcast and the disneys, it's obvious if you believe the vaccine allows that to happen and you believe that the economy is in good shape to support that the question i would ask is

about actually the stay-at-home stocks which is to say, is the growth that we have seen in those stocks, the multiples appropriate, and is the growth sustainable. >> one of the things i would look at as a signal of how behavior is fundamentally changing is sports sports came back, and we saw kind of a torrent of sports, you know, more than we have ever seen between sort of late summer and early fall, and when you look at ratings, they didn't come back. the world series ratings were 30% below the all time lowest world series, nba finals were down 40 to 50%, same with nhl. i think part of what's happening, though. >> is that a function of a changing -- is that a trend, is that a function of a changing ecosystem, or was that a function of all the sports came at the same time, they were all competing against each other, and by the way, there is conversations about social

issues in america that some polls suggested were keeping certain people from watching i mean, is this something new that you think is forever, or you think that was a moment in time >> what i was getting at is i think a lot of kind of casual entertainment viewers have moved away from linear tv. there isn't a whole lot on production has been delayed substantially, and i think cord cutting obviously accelerated overall viewership keeps falling dramatically, and i think the reason is, look what's happening now, peacock is number 5 in the streaming apps there has been a surge of new ways to watch consent. whether it's netflix or hbo max or peacock there's so much to do outside of watching linear television i think it's pulling away the casual sports fan is not sitting on linear tv i think that's a big element i think a younger generation, brandon ross, my partner has

written about a fundamental change in behavior younger viewers are watching entertainment or sports different l differently, they care more about highlights and the long way of saying it is i think people are reallocating entertainment time spent there's a fundamental shift to streaming. this isn't just netflix. this is all of the streaming companies. everybody doing streaming is going to shift away. that's why nbc has launched peacock, hbo has transformed into hbo max everyone has seen the fundamental change disney is doing an analyst day, talking about how their strategy is changing to meet streaming. >> rich, we have to run. if you own one stock, which one do you own >> right now, if i had to pick one stock that i think has been overly abused that's going to benefit. >> twitter, i would step into twitter right now. >> twitter twitter is the call. rich greenfield. >> big events all throughout

2021 >> okay. we'll talk to you soon thanks, becky? andrew, thanks, when we come back, eli lilly crowe daveo davs will join us we'll talk more about that and much more. "squawk box" back after a quick break.

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more news on the battle against covid-19 eli lilly's antibody drug getting fast track approval. david ricks joins us about the breaking news. well, the news from big pharma changed the time line for stimulus in washington we'll speak to the cochair of the problem solvers caucus and stocks coming off one of their best days and months as the dow surges 800 points. investors turning the attention to the return to normal stocks while the stay-at-home plays get hit. we've got the latest on what you need to watch. that's straight ahead. second hour of "squawk box" is right ahead. >> good morning, welcome back to "squawk box" right here on cnbc, i'm andrew ross sorkin, along

with becky quick and joe kernen. take a look at u.s. equity futures at this hour things up on the dow, virtually unchanged, you saw it flip around here on the s&p 500 dow looking like it would go higher by 218 points, nasdaq looking to fall this morning about 162 points at the moment we can talk all about it in just a minute joe. >> thanks, andrew, the fda giving eli lilly the green light, for eli lilly's antibody treatment for covid-19 good morning meg >> good morning, joe, that special guest is eli lilly david ricks, thanks for being here, getting this emergency use authorization for the fda, the first in its class for covid-19 for people who were recently diagnosed with the disease tell us about how you see this drug fitting into the paradigm and helping us through this pandemic >> yeah, thanks, meg, this is an important piece of news. an important step forward in the

fight against covid-19 last night we received emergency use authorization for the first drug ever to be designed for beating back covid-19. it's indicated in early diseases you're saying, so within the first ten days of symptoms and we really want it targeted to those with high risk factors. we know those over 65 with underlying health conditions the fda has labeled this for leaving that discretion for the doctor, and i think that's appropriate given the variety of patients that are facing challenges with covid-19 this will help reduce hospitalizatio hospitalizations in our study, 70% reduction in hospitalizations for patients with high risk who receive this drug >> so it's not an easy drug to administer, it's given as a single iv infusion and so a lot of folks in the health world are saying, how is this going to work, you know, you have just been diagnosed with covid-19. where did you go to get the confusion. do you have the space to

administer this to thousands of covid-19 patients safely how do you see this working. >> we have been working for weeks on a plan to manage this, as you're pointing out, it's an infused therapy, so a nurse or doctor will need to give the patient via iv it's a relatively short infusion, and patients will need to be monitored for about an hour after the infusion. we're working with the government to make as broad a footprint, as broad a set of choices to get this iv infusion as possible. including in nursing homes, outpatient centers or pop up facilities that could happen as we did with testing, so that people can come in without having to go outside a hospital where if you have newly diagnosed covid-19, mostly the signs on the door say don't come in we are working on that solution now. expect news from the government today, outlining reimbursement for this, also the means by which providers can provide the

new lilly, neutralizing antibody. >> of course another question is the supply of these medicines. we did some reporting last week about regeneron's antibody drug. in the same class, not the same drug why they only have 50,000 doses available now. it's an incredibly complicated manufacturing process. you said you'll have a million doses, enough for a million people by the end of year. how many do you have now >> we're shipping today or last night, 88,000 doses. they're on trucks now. we could have a patient treated today even in our local area this is real it's happening we have another 80 plus thousand packaging and ready to ship over the next few days. and then we'll have several -- 10,000 more or so every couple of days coming out until december, and then in december, because of decisions we made back in june, we have quite a bit more coming. so about 800,000 doses across the month of december.

the u.s. government has agreed to purchase 300,000, but there's an option to extend that, and those million doses are for the world, and so there may be other countries interested in buying them, and we're exitcommitted to move the product where it's needed most. in the u.s. we have plenty of need we'll be happy to discuss more volume as well next year that number goes up again, as more capacity comes online you have reported on our alliance with amgen, proud to work with them on neutralizing antibodies as well as fugi film, which will help get the product to the poorest countries. >> it's a great piece of news for people that might be in the more vulnerable group. but as you have highlighted, it just comes with a lot of catch 22, like, issues, and i guess it's manageable. the pop ups sound good you need a positive covid test it can't be just symptoms.

you don't want these really sick people going anywhere near other people not really sick. but you don't want the vulnerable people going into a hospital setting necessarily unless they definitely have the covid. so you need to test, you got to have a positive test then they have to go before really that sick which puts them in a place where they could give it to. it just seems like there are quite a few problems with logistically how to administer it it would be good for people that really aren't that sick yet to prevent them from getting to that point is it all manageable for you to do it? >> look, it is not simple tvmts n -- it's not a pill. a technology used to treat cancer and autoimmune diseases, but it's achievable that we can get the drug procured in the u.s. to patients quickly we need broad reimbursement.

we're working on a plan with the government and the availability of sites that are convenient as you're pointing out. i'm confident we'll be able to solve that over the coming week or two it will take some time in some areas to get that set up but it's coming, and the actual infusion itself is not complicated for nurses or doctors to give. they do this kind of thing pretty frequently. what patients should do is have a positive pcr test confirmed and be exhibiting symptoms, not past ten days of the first symptom. if you're in the high risk group, this can help you we know patients with the risk factors were worried when they get the positive pcr test back. they should call their doctor and ask if this lily antibody could be useful for them >> hey, david, i read the fda authorization, and i realize it's targeted at older people, higher risk people it has been tested and is available for people as young as 12 years old i'll ask you the same question that we asked pfizer's ceo yesterday, when is this going to

be tested on children. i realize children are not generally a higher risk population, but there are special needs kids who are at higher risk and none of these medications are being tested to get them to the point where they can get back in life at thpoint. that's a big loss. >> we're conducting studies now, any day or they may be getting started. you're identifying a key thing, and that's why the fda labeled this down to the age of 12, which as you can imagine, a patient with autoimmune conditions being treated with immune suppressants or a cancer condition, who are young, down to 12 and over 88 points they're eligible to receive this, if their doctor deems that as appropriate so there is a solution for people in that circumstance today and more data will be coming for this mono therapy, the combo we're working on as well. >> when you model out the use case for this drug come 12

months out from now, this is a time line question effectively in here, given the development that you're seeing in vaccines and the like what do you think the quote unquote market is going to be for this drug. i think in some cases we're all hoping there will be no market, i'm worried you're going to say actually there will be a meaningful market and maybe even a bigger one. >> first of all, we didn't get into this to make a big product. we did it because we could and of course we certainly need it right now. there will be two phases as you're pointing out, andrew, the first phase is during the pandemic vaccine, obviously we need to reduce the hospitalization in this country. where i am in the midwest, we're filling up hospitals now we're almost in a critical juncture, reducing the rate of hospitalization, what this drug does is a critical need, and that will persist, until we get something like herd immunity, i'm so pleased to hear about

pfizer's news yesterday, and i hope this makes it obsolete, even in well controlled rip illness like rsv and others, we have vaccination, and antibody therapy. some patients escape the vaccine and still get the condition, and they need to be managed with a therapy, and this will be useful in the long-term, hopefully at much lower volumes, the other thing i say, as i have partnered with the gates foundation, and others, the biontech, pfizer, and moderna are complicated to get around, and in countries like india and developing countries around the world, it will take some time to both make and deploy something like that, if that's what we have they need a bridge that's much longer perhaps than the developed world and that's why we're committed to get this antibody to patients no matter where they are in the world. and that could fgo on for years

until we have everyone vaccin e vaccinated. >> that's what i was going to ask. when you talk to your team about the manufacturing and distribution about this drug let's talk about it first in the developed world and the developing world what does that look like to you if terms of time line? >> just that we have planned in the developed world and what i have said to my employees is, if everything goes as well as it can, the second half of next year will be looking a lot better, more like normal still, we'll probably have an endemic coronavirus to deal with, but the rates will be dramatically lower, and reserved probably for those that don't have appropriate vaccine response we don't know the data about demographics of who responded better, but we'll learn that soon, and we'll understand how to taylor this therapy to those needs. vaccination globally, 7 billion people will take some time, and a therapy will be useful to bridge us to that point and in the long-term be a useful

therapy for doctors, patient that is still get sick even though they may have been vaccinated that will happen it happens with other diseases this is a useful tool then that ultimate period is probably several years, andrew. >> dave, i think we should put into context, a lot of people will have seen the headlines that this drug failed in an nih trial in hospitalized parttient you have the data supporting use for patients not yet hospitalized very important, prevention, you're doing nursing home trial, trying to prevent disease in areas where they have outbreaks in nursing homes when will we see these data? >> hopefully very soon thank you for raising that that's a very important effort we have where we're studying almost a thousand patients who have been exposed but not infected in a nursing home setting and they get treated with bamnivlov or a placebo.

passive immunization, so you're not mounting your own immune response like a vaccine but we give you an immune response with this medicine and it prevents infection spread in nursing homes which as you know is a crisis, still, going on with 40% of the u.s. deaths due to nursing homes. we hope to have that study soon. it's event driven. i can't give you an exact date but we're getting close to that. and then we could -- that's a real bridge because before we have broad vaccination in the elderly, you could really use this to prevent spread if there's one staff member or resident infected, give this to everyone else in the facility, and protect them from covid-19 that's an urgent use case as well, and we're getting close to an answer there, hopefully in the coming weeks, meg. >> i look forward to hearing about it, dave thank you so much for being with us. >> of course yeah >> becky. >> meg, thank you for bringing this to us once again today. this is the all meg hour every

day. thank you, meg, and we will see you again very soon. when we come back, we're going to get reaction to our interview with eli lilly ceo david ricks from dr. scott gottlieb. will news of pfizer's vaccine and eli lilly antibody drug change the stimulus plan we're going to hear from tom reid, the cochairs of the bipartisan problem solvers caucus, it's supposed to be a much more powerful caucus now that you have seen the mix in the house change we'll talk about that. before we head to a break, let's check on the markets this morning, once again, you're looking at the dow up incredibly, 211 points for the futures after a better than 800 point gain yesterday the nasdaq falls under pressure. it's indicated down by about 190 points after losing 180 points yesterday. s&p indicated down by about 4 1/2. "squawk box" will be right back.

. this is an important piece of news, an important step forward in the fight against covid-19 last night we received emergency use authorization for the first drug ever to be designed for beating back covid-19. it's indicated in early diseases you're saying, so within the first ten days of symptoms, and we really want it targeted to those with high risk factors. >> that was eli lilly ceo david

ricks joining us minutes ago, and joining us to discuss the latest is dr. scott gottlieb, serves on the boards of fpfizer andillumina. this is great news for eli lilly. we heard great news as you know very well, a company you're on the board of around pfizer yesterday. i would, though, want to talk to you about going back to the issue of time lines because you're watching the market move on this news they're looking 12 months out about what the world looks like and i think we would love to get your perspective on what you think that world really does look like. what kinds of levels of usage of these vaccines and other therapeutic drugs you're going to need to get to quote unquote herd immunity. i would just add on the pfizer news, is looks to me like the amount that they're going to be able to produce next year would cover either 10% of the globe or 30% of developed countries and add on top of that hopefully

some of the other vaccines, can you snuff this thing out >> i think you can certainly control it i think this is part of the technological counter attack against this virus that we always envishioned. we're going to have a broad tool box, not just safe and effective vaccines, hopefully multiple manufacturers and i think what the pfizer news has demonstrated, you can develop a vaccine that is very protective against this virus based on early results, if those results hold up. we're also going to have these therapeutic antibodies lilly has a cocktail antibody. i don't think it's unreasonable to say that on the early data we have seen. albeit, it is early data it looked very effective they're going to have a lot going into next year the antibody that they approved. the authorization for their mono therapy, they will have a duel therapy that hits the virus with two targets. that looks exceeding effective

they shipped 88,000 doses in the first day. that's quite an achievement. >> do you imagine that people will be wearing masks in august or september of 2021 >> look, i think it's possible i think next year we're going to be a little bit more cautious than we have been certainly in 2018 certainly heading into the spring and summer, i think we're going to be coming off a dense e epidemic in the winter i think we're going to catch a break. then the question is what does it look like when the summer is ending heading back to work and school in the fall of 2021 i think by then, we might have a vaccine broadly available to mass inoculate the population. we're going to have the antibodies available by regeneron and lilly. they're small molecule drugs,

pills in development, also effective against covid. we're going to have enough therapeutics and effective vaccines as we head back to work and school in the fall, i think they're going to feel reasonably protected. if you're a high risk individual, will some people feel more comfortable taking precautions, wearing masks will we be mindful of the spread of pathogens in the workplace? i think we will. i think a lot of fear i envision ld i envisioned a more cautious approach heading into the fall and winter of 2021, but if you have vaccines that are potentially 90% effective or more, that can snuff out transmission to a level where i think people are going to feel more comfortable living life something closer to normal than what they might have done otherwise. 90% or greater effectiveness of a vaccine with the backstop of the therapeutic antibodies for people at high risk or breakthrough, and they get sick even though they got vaccinated or didn't get vaccinated that's a pretty good therapeutic counter attack against this

virus. >> scott, i thought of kind of a sticky issue, i wish i would have asked the ceo david ricks about it there are high risk individuals obviously that would go to the hospital the minute they get some symptoms and the positive pcr test but we have heard the anecdotes of healthy individuals that get really sick from covid. it would be nice if everyone could take that. if you got it, wouldn't you want to take that just to make sure won wouldn't you want to take that eli lilly antibody and i'm wondering, there's a scarcity issue there are people going to be bidding up can someone say, hey, i got this much money, i want this thing, give it to me when i go in the hospital or can lilly, realize everyone's high risk. shouldn't everybody get this, even if you're not in the high risk, wouldn't you like to have the lilly antibody, especially the double antibody you're

talking about in the future? >> and governor chris christie got that double antibody this is a product i suspect is going to show greater benefits when used prof lactically. in an ideal world, we would have enough supply not just to treat people early in the infection but give the drug to people at high risk of contracting covid that's what we saw in the trials of the antibody. it worked well when it was delivered early. it doesn't work so well delivered late in the infection. the reality is we're dose limited now. it's going to be allocated by the federal government >> are we confident enough in a young person or a healthy person's ability to be in that 99% survival rate to not just give it to everyone or would you give it to everyone if you could in a hospital setting after they got covid? >> i think in an ideal world if we have enough supply, you would

give it much more broadly, and give it as a p, look, lilly did extraordinary things to ramp up their supply what needed to happen is the federal government could have taken steps to provide for more manufacturing but the country itself entered into the agreement with amgen to free up facilities, and also moved some of the products they manufacture in the u.s. out of the u.s. to free up their own manufacturing plants, so lilly has freed up a lot of manufacturing space in their new jersey facilities. they made an extraordinary effort to ramp up manufacturing of the drug. the reality is we're limited in the united states with domestic manufacturing capacity for antibodies you can't build it fast is to stop making certain drugs. >> hey, scott, i had a different question for you, just a follow up on joe's line of questioning with this. i mean, you're already seeing

cases where people are getting this who don't conform to the guidelines the fda issued. chris christie is 58, he's not 85 he's high risk because of comorbidities. you're going to find important people and wealthy people find ways of getting this. >> you probably will you're not going to be able to guard against that entirely but the reality isn't -- i'm not defending the system reality is that this is being very carefully allocated by the federal government my concern has been that the control that the government's exerting over the distribution is going to make it harder for people to get access to the drug i think people who are disadvantaged, don't have good access to medical care to begin with, might have a hard time getting this drug because they're going to have to go to an outpatient facility or hospital they might not have someone to drive them there that's part of the allocation system to guard against what you're talking about, a bunch of

drug doesn't fall off the back of a truck somewhere. >> that's a fair point my original question was back to how difficult it is to actually get this and get it done, since it's an iv, since you have to be in a hospital setting or at least a setting where you have a doctor or a nurse who can give this to you over the course of getting it, and then watching you for an hour afterwards that seems pretty tricky too the new drug you're talking about, the double one, is that the same thing, is that also iv? >> it's the same thing think about it this way, you're a 70-year-old patient, newly diagnosed with coid havid. now you've got to convince the patient to go into the emergency room for a 45 minute infusion, 2 hour follow up someone has to drive them there. and you and i both know a two hour infusion with a follow up is a five-hour trip to the emergency room, a bunch of patients who say you know what,

i don't feel very sick, let me wait a day or two. i would have preferred to see this delivered through home infusion the government didn't provide for that allocation system to allow nurses and trained technicians to go into the home to deliver this. they wanted to exert tighter control over it. they thought it was safer to infuse in the sort of hospital based setting. some people will have obstacles getting this drug who are eligible and could benefit >> doctor, i wanted to ask you another question about a conversation that seems to be under the surface. we talked about it briefly in the 6:00 hour. i heard from investors yesterday. this report out of denmark about minks getting a different version of covid, mutated version that could potentially be shared with humans. what do you know about what's really happening abowith that, d how concerned should we be >> i don't think we should be that concerned right now there's lot of mutations in covid. the question is are there

mutations that make it more pathogenic, more serious of an illness, more likely to spread we haven't seen that we have seen certain mutations become the predominant form. we haven't seen any evidence that those mutations change the physical characteristics of the virus or change it in ways that our vaccines and drugs wouldn't target it. the early research suggests the vaccine should be presotective against a broad range of mutations. the answer is yes, but the good news is that the platforms that we're using allow us to reformulate the constructs easily based on sequence alone, the whole idea of synthetically derived vaccines, which you can basically manufacture off the gene sequence. >> we got to run final question, just wanted you to react i don't know if you saw president trump's tweet yesterday. he said as i have long said, pfizer and the others would only announce a vaccine after the election they didn't have the courage to do it before like wise, the fda should have announced it earlier, not for political purposes but saving

lives. can you just react to that. >> there's a lot of great people who worked on these efforts inside pfizer and the other companies as well as the fda and the noblist of public health intentions and i don't understand the tweet >> we will leave it there. dr. scott gottlieb appreciate it very very much. >> thanks a lot. >> let's check on the futures, which as we can see are up 224 points on the pre-market session. the nasdaq continues to diverge and head south, down 174, and the s&p down 3 one area of the market left out of the big rally as we have been noting the nasdaq, tech falling late in the day to end the session lower, and it's off again this morning. many of the so-called stay-at-home stocks were hit after the vaccine announcement we'll see what happens today drag the whole nasdaq down even stocks that won sy me'ttaat we'll be right back. the company who invented

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pfizer's news of its covid-19 vaccine efficacy of greater than 90% has brought hope back to the u.s., and stock market, too. stocks and confidence rise for a full economic recovery, the question of what is needed in a stimulus package still remains joining us right now is congressman josh gotheimer, and congressman tom reid, they serve as a cochair that works on both the right and the left and the center center, democrats and republicans working together to get things done. welcome to both of you good to see you. congressman reid, i'll start with you, what do you think this means with this new congress coming in? there's been a lot of conjecture that the problem solvers and bipartisanship is really going

to be back in vogue. do you think that's the case >> i think there's an opportunity to get things done for the american people, and it's all about votes and with the tighter majority in the u.s. house of representatives, the 50 of us can influence the agenda to get to 218 votes in the house, and working with guys like josh leading on the democratic side, we have already demonstrated, we vote as a block. you got to remember that, and as a group of members that are committed to pragmatic governing, this is an opportunity for us to get things done like we've never seen before in my tenure in congress for the last ten years. >> so congressman, what's at top of your priorities list, i'm guessing stimulus, what does that stimulus look like. >> as you know, we have been working for months now to get folks back to the table and get a deal done. it seems like that the president and center and mcconnell have said they want to get back to the table during lame duck, which is right now, and we

really believe it's time to get back and get something done. we need help obviously with unemployment we've got help with families really hurting right now going to the winter. small businesses are in deep trouble all over the country with case loads going up and with the flu season coming and i know new jersey here, we did another shut down for early curfew for our restaurants, who are in real trouble. you've got schools that need help, and obviously the food insecure need help with wic and snap there's so many places with state and local governments that need support too there's so many places that need help right now for us to get through this and get to the vaccine, which obviously is very good news yesterday. >> congressman reed, does the stimulus look like the $2.8 trillion, $500 billion stimulus, these are different plans that were out there. what does the plan have to have in order for you to get your caucus behind it

>> we are dealing with the same dynamics prior to the election i think you're looking at a smaller deal that is going to be very targeted on areas like the airline industry, like the restaurant industry, like small businesses those areas that are really hurting right now, if it has any chance to get through, because you've got to get 60 votes in the senate, 218 votes in the house and have a president, and president trump has to sign this i think that's kind of the contours of a deal that's realistic in lame duck session, and if these guys want more, i think you're going to be looking after the new administration coming in as to any additional relief down the road right now, the good news is you've got a vaccine coming and right now we should be targeting what can we agree upon, and newscast more along the lines of the mini deal, if you would, more targeted relief package, in my humble opinion. it's all about 218, and you're all about numbers in your world. our numbers are 60 votes in the senate, 218 in the house, and now in the problem solvers caucus, we're going to have a great amount of influence over the 218 votes in the house.

>> congressman gottheimer, as a proud new jersey type, always enjoy talking to you, and i'm just wondering, are you kind of like swaggering around the capitol now that it seems like a lot of the house has come around to sort of your, i would say, level of progressivism, if you would. just what we have seen, lost some seats. there was some cantankerous conference calls representative representative o casino -- did you see manchin yesterday, he said basically i'm not going for panging the cou backing the court. i will not vote for getting rid of the filibuster, almost making some of the stuff in georgia moot, congressman. i mean, what kind of -- do you think we can put some of that to rest, defunding the police, some

of these really radical ideas that maybe hurt the democratic party? are those going to be not talked about nearly as much >> as you know, i'm for pragmatic solutions. we have talked a lot about those, and i think right now, as tom reed was just saying who does an incredible job as cochair, you know, there's so much we can get done if we're willing to talk to each other and work together. now with the slim majorities, there's no choice but to focus on bipartisanship, and obviously the president-elect, as you know, has made it clear that he wants to unite the country and that's going to mean the democrats and republicans are going to have to work together if we want to get anything done and that's covid, that's infrastructure, there's a real opportunity now to come together the question is will we squander it or do something about it. the problem solvers caucus believes it's time to do something about it the only swagger we should all focus on is getting something done >> you haven't got nearly enough, don't you think pr wise

the house should de-emphasize the squad. all i hear about is the squad, squad squad. >> if you keep talking about it, that's what's going to happen. i think we should be talking about problem solving and working together >> you won't play. all right. i wanted you to play along i mean, you don't have to sit there with some of these insane ideas, and say, oh, well, you know, it seems reasonable, we should talk about it anyway, go ahead. >> no, i don't believe in those insane ideas, as you know. and actually getting something done reasonable, so let's get something done. >> neither does manchin, he's from west virginia west virginia was 90% trump or something like that. >> i guess what comes next, after stimulus, what are the next couple of items on the agenda that you think you want tackled and you think likely are to get tackled and representative reed, i'll start with you >> i think there's a huge opportunity to josh's point, and

to others, with president-elect biden coming in, it appears, and i have issued my congratulations to president-elect biden, i will tell you, infrastructure, we're going to need fiscal stimulus for this economy as we pull through covid, and if we can't do a full blown stimulus package, we should use that extra runway to invest in a trillion dollar infrastructure package. and i tell you, that would unite the country, and i'll tell you, our door is open to my doors and the others in the infrastructure package, and i would encourage the president-elect to really look at that as an opportunity to unite the country that brings people together, and our door will be wide open to working with him and his administration to achieve that success. >> i agree i think that, you know, this is a real opportunity now to get infrastructure package done. it's good for jobs you can borrow low interest rates. we obviously have punted for way too long on this, and clearly we saw everything from broad band

to getting our roads fixed we desperately need it as a proud capitalist to joe's point, as somebody who believes we should work together, and make sure and let small businesses and others thrive, i think this is a key part of it >> hey, gentleman, you have your work cut out for you we are rooting for you, we hope you make your voices loud and herd come back and tell us about your plans. >> we have been doing this for four years, we have the muscle memory of the hurricane force of disrupting the force josh gottheimer is a true leader we're going to get it done for the american people. >> all right gentlemen, we'll have you both back thank you! thank you. >> andrew, coming up on the other side of this break, i marks ceo richard geondlgfo is going to join us about the beat up movie theater sector. "squawk box" returns right after this

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they measurably get more than i ever got. and i get to do that. i get to provide that for them. millennials, taking profits from their bets on battered down travel and leisure names and loading up on opportunities elsewhere. our very own kate rooney joins us she has more on this story kate, good morning. >> good morning, becky, good to see you. younger traders had been loading up on airlines and cruise stocks during the pandemic. as the trade turns into a winner this week, they're moving on to other sectors. delta, american airlines, carnival and norwegian cruise lines have been among the top 50 widely held stocks among millennial investors trading volume for those travel names was up 900% yesterday.

that's compared to your average monday but younger traders took that positive vaccine news as time to take some profits. selling for apex clients outnumbered buys by almost two to one millennials have been big on those stay-at-home stocks this year, zoom, netflix, teladoc and peloton, have been massed winners this year. as they got crushed yesterday, though, trading volume for the names was up 450% versus your average day. but it was mostly buying people took that dip in prices as a chance to add to their positions with buys outpacing sales five to one. joe, back to you >> all right kate, thanks well, what can we glean from this, do you think i'm ready to go back out into the world. >> what can we glean from this so these investors, younger investors bet big, and a lot of folks are saying they're betting on the sectors getting crushed,

and now it seems like they're finally win skpeners and stocks doing well they are following the conventional wisdom. we'll see how the stay-at-home trade plays out. same thing at the end if those turn around. the robinhood younger traders have gotten heat it's good to see them taking profits and finally becoming sort of winners here >> we had a long discussion about that earlier, when market goes from 800 to 30,000. good to stay long. i guess you can take some profits reinvest if things go back down, redeploy into different sectors, maybe unless you have a crystal ball about a bear market, 20, 30, 40%. i don't know, i just think you might lighten up to get dry p powder, the whole idea of getting out, profit taking, i'm not sure that makes a lot of sense for anybody. who knows. >> we'll see how it turns out.

>> from 69 to 82, the dow hit a thousand, and didn't hit it again until '82. we haven't had a period like that in quite a while, and hopefully we won't anyway, thanks. the great, we should just say, the great kate rooney, once one of the great "squawk" producers, now one of the great cnbc reporters we should all be proud when we come back, a lot more on the other side of this break, what a biden presidency means for the economy. we're going to talk to pimco's head of public policy for what to expect next and then later, health and human services secretary alex azar is going to join us for the government's time line on rolling out a vaccine once it is approved so much ttoalk with him about "squawk" returns right after this

good morning, more divergence for stocks, the dow looking at a higher open while the nasdaq drops further into the red. we're going to dig into the stay-at-home trade straight ahead. and this hour, we're going to ask health and human services secretary alex azar to detail the trump administration's vaccine rollout plans, and we're going to get you up to speed on a just approved antibody treatment even as u.s. daily covid cases surge to more than 130,000. the final hour of "squawk box" begins right now

good morning, and welcome to "squawk box" here on cnbc. we wanted to get an early start here on the 8:00 hour. i think we should do this and get ahead of everybody else, right. i mean, if we start now, i'mjo kernen, along with becky quick and andrew ross sorkin u.s. equity futures at this hour indicated up 189 points. that comes after an 800 plus gain yesterday the dow is the best for the index in early june. it hit its first all time intraday high since february, and you can see that by the end of the session, it had given back quite a bit that looks like, reminds me of disney or universal or s something. it looks like a roller coaster down, back up, and you have

heard. you can't scream on roller coasters anymore >> you're not supposed to. difference between can't -- can and should. >> put me on a roller coaster, i'm screaming even if i'm not supposed to. >> nobody can hear you screaming in outer space, you remember that, right, from alien. >> i do remember that. treasury yields as you can see, as becky pointed out, could be shattering some records, get back to almost 11% at some point, and that will be -- that will actually be, we'll notice that, won't we >> it's a big deal i mean, i noticed this all the way back to 0.942% that's a big move. >> i'm ready for 1%. so that we can actually see an actual number instead of basis points every day it's like something to talk about. when green span said watch the ten year, he didn't know that it was going to be like watching.

>> like watching paint dry. >> like watching grass dry, paint grow anyway >> yes well tell you something we can get behind, and something that's easy to watch, and that's some of the big tech and retail news this morning first up, let's tell you about european union regulators, charging amazon today with distorting competition in online retail of particular interest, the fact that amazon serves as a marketplace for business and also competes against them as a seller of products regulators also open a second investigation centering on possible preferential treatment of amazon offers and offers for sellers, using amazon logistics service. amazon says it disagrees with the allegations against it this was the other big shoe to drop, guys we knew that the u.s. was looking at all of these companies. we knew the europeans were out there, and there was this huge rally of relief on the idea that maybe with this divided government and a biden administration, you wouldn't see as much u.s. focus on them that doesn't change what's happening in europe, and that

can be significant as well >> very very true. becky, meantime, yesterday morning, we got word that pfizer's coronavirus vaccine candidate was more than 90% effective in clinical trials u.s. regulators authorized emergency use of an experimental elily litt eli lilly, are at risk of contracting serious illness. the company's ceo david ricks joined us last hour and talked about the all important issue of production and distribution. >> we're shipping today or last night 88,000 doses they're on trucks now. we could have a patient treated today even in our local area so this is real. it's happening and then in december because of decisions we made back in june, we have quite a bit more coming. so about 800,000 doses across the month of december.

>> and lilly's news coming as the u.s. hits another record for new coronavirus cases. nearly 134,000 yesterday, that according to nbc news. it is now the 6th day in a row that new cases have topped 100,000. >> guys, there is some news that's just out from target this morning. and this is interesting. they are announcing a long-term strategic partnership with ulta beauty you know it pretty well. it's a big box that's in some of the same sort of strip centers that focuses deeply on some of the premiere beauty brands, these are going to be store within a store, the same level as you can see with a cvs in the target or starbucks in a target or disney store in a store and this is probably good news for both companies ulta shares up sharply, 8.8% target shares up by 1.1% it's significant, and what target gettings out of the deal

is the ability to have some of these name brand beauty products in its stores, names like mac, benefits, that's a big deal because shoppers go to target, and shop beauty but if they want any of the high end names, they can't get them those traditionally you could get at ulta or a department store. if you can conveniently pick that up in a target, it naematt for target to get that name in there. it is important for ulta, too. it definitely gives them access to convenience shoppers going in and trying to get one quick thing or trying to buy make up while doing other things, and not willing to go to another stop for this. if you look back at ulta, they got hit hard when we saw the pandemic break out in march, if you were looking at a one year chart for what happened with ulta, stocks fell significantly because it wasn't deemed an essential retailers. both sides get something out of this check this out now ulta up by more than 10% on this

news for ulta, it does open the brand at different shopping experiences like quick trip and convenience, and boosts the loyalty factor ulta is going to be doing things like training the target workers who work in the store so they know more about all of these beauty brands. that's something ulta offers you, it's a younger shopper for the most part, versus target maybe that's a way to keep some of those around. it's an interesting partnership between the two companies, and you can see both of the stocks are higher with ulta getting the big benefit. it's up by 12 1/4% >> i know of it. i've heard of it i always thought it was missing a letter. >> i can't imagine you being a big ulta shopper. >> no, i'm a sephora type. what's the difference between ulta and sephora we do wear makeup, andrew, right? we've never bought makeup. right? >> i've had to because i haven't

had the makeup with me, but by the way, you know what i'm a man of, mary dillon who runs ulta has done a remarkable job with that company it really is actually, if you look at it, a longer term chart, she has done an extraordinary thing. you mentioned sephora, and they have so many now exclusives at sephora and ulta and they are battling it out. this is very very interesting. the only thing i'm curious about is the ulta beauty, i don't know if you think it has a higher end sort of patina, and target is considered so very cool, too, so hard to know >> i don't know. >> i think what's sprinterestins getting the brands and having them available there, and worth looking at right now are department store brands, like a macy's or others, those could potentially see pressure, these

are some of the things a store like target could get. doesn't look like a big impact right now, but longer term, that's another thing that erodes the mote that these department stores have tried to put up. >> i need to hear more about your shopping experience did you go to the counter? i mean, do you know what you need i wouldn't know my color or any of that stuff. did they look at you and suggest things and bring things out for you? >> here it is, mac c 5, that's my color. >> you knew that from what you had run out of >> i could do that but i just, mac, don't i ask you for i'm out of this, i'm out of that, and mac does everything for me he really does and it shows up here becky, i kind of blame you for

this let's get to -- because you told us everything anyone in the world ad-libbing could possibly want to know about ulta, and i was in rapt attention, but thank you. >> i see you're welcome. >> i was going to act like, oh, i have no idea what she's talking about, but that would be a lie. anyway, if you can believe this, election day was just one week ago. i got to go get some powder right now as liesman talks. >> sweating. >> we found out the winner less than 72 hours ago. wall street is already feverishly trying to game out what a joe biden economy will look like. steve, we still have a lot of people that want us to say presumptive winner i meant to say that, but i didn't i mean, i guess it's not certified. everybody he's called it, but anyway, it didn't say that in the prompter, so we'll go with it, president-elect biden. go for it. >> yes, joe, president-elect joe biden, he inherits an economy

recovering from the pandemic and with a promising vaccine on the horizon, but it's still in a deep hole facing serious charges from a resurgent pandemic. biden could urge more lock downs to keep the virus under control. that would trade short-term pain for long-term gain consumers could also decide to avoid high contact activities while the virus rages putting pressure on the economy. on the immediate policy front, a lame duck relief bill looks highly uncertain, the size of a bill after that, depends on the make up of congress. michael gapen writes if republicans retain control of the senate, we suspect it would emphasize physical restrain. the progressive parts of the democratic agenda seem far more likely tax policy, he needs congress for major changes. the executive can interpret some tax regulations. on regulation overall, congress is needed for major changes but executive can indeed interpret things like enforcement and

again, biden has said he'll reenter the paris climate accord trade policy, we all learned from president trump how much authority a president has when it comes to issues like tariffs. david and steve wieting, the u.s. foreign policy will enter a more predictable phase without escalating tariff threats and in contrast, fat of regulation for large tech firms remains wide open there are questions about what happens to several fed emergency programs that expire after december it's a good bet. the biden administration will benefit from easy fed policy for at least the first couple of years, joe i don't know if you're back from getting your makeup. >> no, i didn't leave. >> oh, you're back. >> andrew, who knows, you know, we had that discussion it just is the way it is in the tv business. anyway, andrew, you got a question for steve >> i had a related question, but

not, i think, the question, joe, you were originally going to ask him. i don't know if you want to ask him first. >> yeah, sure. steve, what could happen to our billions of dollars earmarked for the fed that hasn't been used and/or, what's a vaccine mean for fed policy? i had those prepared, ready to go for you, steve. go ahead >> no one mocks what's in the prompter the way you do. you're historic for that. >> i do it with the best of them i think you really invented it >> i don't have questions written. >> you invented mocking the prompter >> anyway. >> but let me try to give a real answer to that mock question first of all, there are hundreds of billions of dollars over at the fed. there's discussions going on right now about whether that money should be picked up to back up fed programs or moved over into additional policies or

it could just expire if nothing happens before december 31st the programs go away, and the money becomes nonexistent. as for a vaccine policy, it's a more interesting question, how vaccine affects fed policy you can see on the one hand, it brings back supply and demand at the same time. there could be a neutral effect on inflation i think the fed remains on hold for quite some time even with a vaccine and a restoration of somewhat more normal economic activity because we remain below where we ought to have been given the trajectory that the economy was on previously. >> very very quick, and i don't know if you consider this a reliable journalistic outfit the american prospect this morning reporting that biden, they say, poised to name janet yellen to be the treasury secretary of the united states you're a fed watcher what do you think of that? >> i don't think that's necessarily going to happen.

it could happen. i think that janet yellen is a very smart economist, was a pretty good chair of the federal reserve. i'm not sure treasury secretary is the optimal job for her given her -- how should i put this, unwillingness to engage in sort of normal political activities you know, powell has proven himself to be very adept at the politics of the fed, yellen less so, whether or not she could have done better remains to be seen i think there are other candidates that fit that bill. i think brainard is among those who i understand that they're looking at, though i don't know that any decision has been made. >> steve, thank you. we'll check in with you again soon >> pleasure, becky. in the meantime, joining us to talk about what the business world can expect from a joe biden administration is libby cantrill, the u.s. head of public policy at pimco, and you

know, conventional wisdom at this point is that this is going to be a more middle of the road administration than what people might have anticipated if there was a blue wave. do you think that's true >> yeah, good morning, becky i mean, i think there are some things for the market very much to like about divided government, and by the prospect of divided government. no tax increases, for instance very unlikely that you get some personnel in place that are from the more progressive left because they would have to go through senate confirmation and a republican held senate, and you probably could get some, you know, some fiscal stimulus, albeit, it will be quite a bit smaller than if we had seen a blue wave. now, with all of that said, we can't necessarily completely discount the prospect of these two georgia senate seats that are going to run off on january 5th, going to democrats. democrats as we know, under performed on the down ballot races last week.

and the odds are against them for sure, but it does look like georgia will probably go for biden and stacey abrams has built a formidable voting structure there. clearly, we would be looking at a very different set of policies if those two senate races were to go democratic, but again, this is kind of divided government, which i think the market is pricing in right now. there's a lot that the market obviously likes about it. >> what do you think we'll see i mean, we had two congressmen on earlier today members of the problem solvers caucus, the head of that they talked about stimulus first, and then infrastructure as a second potential. is that how you see things lining up or are there other issues that you think would come to the forefront >> and i would agree with steve's prognosis here for stimulus in the lame duck. i think there are a lot of obstacles obviously in retrospect, you know, probably better to have taken the deal

that was on the table as of just a few weeks ago. now it looks like there's some political obstacles to get something done before year end, and as a result, a covid relief bill will be kind of priority number one of a biden administration from a legislative perspective. and then yeah, could your focus turn to something like infrastructure as we all know, it's been infrastructure week on capitol hill, you know, for years, and sort of like the unicorn that never appears. did you actually see, you know, traction on this, at this point, and back in, you know, 2021, potentially, but there obviously have been obstacles to getting something done, at least historically, so again, our expectations here are you get some fiscal stimulus, you get some covid relief bill albeit, much smaller than what would have been on the table just a few weeks ago and then maybe you get something on infrastructure, much smaller than what you would have gotten under a democratic sweep.

>> what items come to the forefront. obviously the biden harris ticket is very focused on things like tax reform, and trying to make sure they could get room around that. also health care, do you think either of those are issues that the senate would progress if the senate stays red. >> i think no, on taxes, this is one of our questions a client's number one question, i think there will be no tax changes or very few if, you know, mcconnell is the majority leader in the senate in 2021 administratively, they can do very little on tax policies. again, that is in some ways, a risk that has been taken off the table from a markets perspective. health care, could we see something get done on say drug pricing reform in some ways, the architecture of a deal over the last four years that you could see get traction could see you mcconnell and biden coming together and hammering out a deal, this is

something we're going to emphasize with clients, not to overstate it necessarily but these two gentlemen really do have a foundational relationship they worked in the senate together for 25 years. they negotiated big things before and i think that they are both oriented towards deal making you could see on some of these areas where there is some compromise, drug prices potentially being one of them, actually something getting done. they're obviously both going to have their own partisan pressures as well that could be an obstacle. >> libby, thank you, good to see you. >> thank you so much >> andrew. >> coming up, fresh off that pfizer block buster vaccine news yesterday. we're going it ask health and human services secretary alex azar about the trump administration's immunization rollout plans. a conversation you do not want to mis stay tuned, you're watching "squawk" on cnbc

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the trump administration is applauding pfizer's news of a coronavirus vaccine that could prove to be more than 90% effective. here to talk about the government's time line for distribution, health and human

services secretary alex azar secretary, it's good to see you. we had ceo albert bourla on yesterday. and i asked when he first heard about it, and i don't know what heard about means. i guess the final results. he said sunday, i don't know whether some interim results leaked to ceos of major pharmaceutical companies or not, but when can you tell me definitively you heard or the trump administration was made aware of these results >> well i'm not going to get into internal deliberations but one thing the american people should be reassured by, this is exactly what i told you would happen, an independent data and safety monitor board that would evaluate data and only then would the company and fda hear about or see that data that's what happened, and now pfizer is an independent company that determines that data meets their ethical standards to submit, it will go to fda, have a public advisory committee process, and consider against

their eua guidance for vaccines. a public transparent process, exactly what i reassured everyone would happen. >> i could have asked you any question, and you could have given me that answer didn't matter what i asked you, whatsoever, on that question, and you gave that answer i understand how things work, but can you give us any idea when it became clear to you, there was an election last week, as you know, this could have made a huge difference in terms of the outcome of the election do you know whether the data was known beforehand and should have been released or could have been released or when did the administration find out about it, can you give me any idea on that >> all i know about timing of data is what pfizer has said publicly is they have said, i have to take it at vase faface they learned the data on sunday and within 24 hours made their public announcement of that data >> okay. let's talk about this distribution if things go really well,

there's a difference between helping people that are at high risk, and that would be wonderful to do that at the end of this month or december, but in terms of tamping down the pandemic in this very disturbing second wave we're seeing, when do you think that, the vaccine could actually be used to make a difference there seems like much later, sometime next year or mid next year am i wrong on that time line >> i think you're a bit off on that time line so obviously it's all dependent on the fda review process, and it's going to be as it has been throughout, by the book. but we have contracted with pfizer for 100 million doses and that will start rolling to us 20 million a month starting the end of this month. pfizer is projected approximately 40 million doses by the end of this year. we will have to look at the data, and look at those core target groups. be thinking the most vulnerable, elderly and nursing homes, assisted living and then be thinking your health care workers and your first responders as those core initial groups that we have received

recommendations to focus on. try to get them vaccinated, whatever the data provides on pfizer if we get moderna to come in the next couple of weeks, we would have that in our tool kit also we said we would have enough by the end of the year to vaccinate all of the most vulnerable, by the end of january to vaccinate senior citizens and health care wo workers, enough for every american who would like to be vaccinated that's the time line we're working from, the particulars are going to depend onseeing that data, and just seeing where does it look most effective, which population is it most effective and safe in. >> it's great news attribute it to the private sector and our scientists and to the trump administration in terms of operation warp speed, faster than it has been done before it's phenomenal, but pfizer seems to be taking great pains to say, while they signed on to operation warp speed, but never took any money have you seen that

i don't know why it's important to them that they distinguish not being part of it maybe they're worried about being tainted with political, you know, that it was rushed or whatever the controversy surrounding the vaccines are, but they didn't take any money, but were they part of operation warp speed, mr. secretary. >> yeah, so they actually kre t corrected that statement during the day. i don't know why they made that originally a $2 billion contract that says they're very much part of operation warp speed we assisted with ingredients, distribution, syringes, needles, dry ice for shipment, distribution planning. they're very much part of operation warp speed >> andrew? >> mr. secretary, i don't know if you saw governor cuomo's comments yesterday i want to read a line, there's good news here clearly with the development on the vaccine but then he says the bad news is it's about two months before joe biden takes over and that means this administration will be

implementing the vaccine plan. they're going to take this vaccine and go through the private mechanisms, through hospitals, drug market chains. that's going to be slow. and they're going to be bypassing communities we call health care deserts. if you don't have a rite aid or a cvs, you're in trouble what's your reaction to that >> first, his statements are unconscionable in terms of suggesting that politics should be a reason for delaying americans access to vaccine. second, the governors are actually in charge of the distribution of this vaccine under our plans. they will determine where it's distributed to, and the mechanisms that they want to use to vaccinate people. that is what we have been working with all of our governors on we have the plan from new york, which howard zucker, who i worked with in the bush administration is his health commissioner they have a fine plan. we've got an excellent relationship with them the governor is in charge of distribution this his state. it would be helpful if he would read his plan and speak with dr. zucker to learn what it is

>> mr. secretary, we also heard about from eli lilly, emergency use authorization for their antibody product, and just some sticky issues came up, and we're trying to figure out exactly, i wouldn't want to be in the shoes of the government on how to distribute this. it's initially going to be for high risk people that don't have real serious symptoms yet, but they need to go to the hospital to get the infusion. theoretically, anybody that gets covid could benefit from this. we're wondering whether there's going to be, for lack of a better term, people jumping the line with money, with their status, whatever to get access to this and conversely, were people that typically have trouble getting any type of health care, they don't have a chance in hell of getting this if they could use it how do you make sure it's

rationed fairly and to have the greatest effect? >> we had exactly the same concerns with gilead's remdesivir when it came out originally and was in limited supply we're going to follow the exact same mechanism in terms of distribution we want to make sure that this product is available, especially for underserved hospitals, under served individuals, what we're doing is we'll allocate this based on hospitalization and disease burden around the country and the governors will tell us where they would like product to be shipped to, to ensure equitable distribution. now, initially, the initial shipments will go to hospitals because they have the infusion capabilities to set this up for outpatient individuals who have tested positive, but we're going to be launching and exploring with lilly, other types of infusion capabilities, outpatient infusion centers, other forms of administration, and of course lilly, and regeneron are also studying the use of a product, through a subcutaneo

subcutaneous ji subcutaneo subcutaneous injection we'll follow that process, and work tightly with governors as we did with remdesivir. >> disturbing news out of milan in terms of hospitalizations, again, in this case, italy being really stretched to the limit. some people think a couple of weeks a month ahead of what could happen again here. given that we could be in a transition between administrations, is there a federal response plan to some of the places in the united states where hospitalizations could be, you know, being stretched where we could use some of these hospitals being set up or whatever we did last time. obviously can't get a ship to the middle of the country. you can certainly set up field hospitals in places where we might need it. is that an ongoing effort? >> absolutely. just in the task force, we're work ongoing our health care resilience, which is providing

both hospital system support, and health care professionals. right now, what we're seeing are requests for some health care professionals from the most impacted areas, and we're working to send federal officials, as well as the contracts that we have to provide temporary health care workers, as we did in june and july we have temporary medical shellers and other facilities like we used in new york, chicago, last time around that we will work to stand up if needed we are concerned about rising hospitalizations, because as you get more cases, you get more hospitalizations it's just simple math. that's where this lilly antibody that we have approved. this is a historic day we have a 90 plus percent effective vaccine and a mon col colonal antibody

wo we're going to back up our states and health care systems with capacity. we don't have the concerns yet but we are focused on that as we see increased hospitalizations here and in europe. >> mr. secretary, i also wanted to ask you about the transition itself, which is to ask is there a policy right now for the task force to communicate with the biden transition team. is that taking place right now and if not, when would it. >> if there's a transition and that will be determined by the gsa under statute, we are prepared for any transition. and we'll ensure it's a professional cooperative one our first and foremost mission is protecting the american people's health and welfare. we'll make sure that's done well we have the plans for that it's done under statue, every four-year cycle. we're ready for that, if there's a determination that there's a transition >> mr. secretary, back to what we heard from this antibody from

eli lilly today, we had scott gottlieb on earlier today, the former head of the fda under president trump. he said that he was hoping to see that there might be some sort of prescription from the government to have that be done in home, have the iv be done in home by a nurse who comes and visits you because it's so complicated to get out is that something you have discussed with the fda, is that something that's up for consideration still? it would make it easier to reach a lot of people. >> dr. gottlieb is absolutely right, and we in the emergency use authorization, this is for outpatient, and it's an infusion, be it's not limited in terms of site of administration, and so we are working on the reimbursement processes there to allow for home infusion. as i mentioned, initially, it's going to go to hospitals because that's where the infrastructure is set up. i do see expanding to other infusion sites to make this a convenient and good patient experience because again, you want to get to patients quite soon after they have been

diagnosed if they are those high risk or people at risk of severe consequences you want to get to them early in the disease course that's when the antibody is going to be most effective. >> thanks. appreciate your time been a pretty good day watching everything play out. >> great day. >> it was. and we're all gratified. it got a little emotional at times thinking maybe someday, maybe we will see a broadway show again someday mr. secretary, we appreciate it. thanks. >> andrew? >> coming up, could pfizer's promising vaccine candidate actually change the calculus around federal economic stimulus that's a question. we have a debate coming up that you do not wt anto miss. stay tuned, you're watching "squawk box" right here on cnbc. one of the greatest game shows in history. during that time, we handed out millions of dollars to thousands of contestants. i thought, what if we paid the contestants their winnings in gold instead of cash and prizes.

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an in-depth conversation on what small businesses need to survive this critical period where we're getting closer to a coronavirus vaccine but we don't have this just yet stay tuned "squawk box" will be back after a quick break. at calvert, we know responsible investing is hard.

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vaccine news from pfizer causing a stock market surge, it also created doubts about what washington's next stimulus package may or may not look like, especially for small businesses, joining us is john hope bryant, operation hopes founder, chairman and ceo. and kevin o'leary, shark tank cohost and cnbc contributor.

gentlemen, it's great to see you. we do have hopeful news, john hope bryant, about a vaccine the question is whether it should change the dynamic around more stimulus. we have a light at the end of the tunnel does it change for you >> it should change in washington, but the question is whether we are about me or about we if it's a conversation about me, then the debate and the arguments that are really locking up washington, keeping them from seeing that this is necessary for our business plan will continue, and confidence will erode if it's about we, ire, after the great depression, new deal, world war ii, the marshal plan, folks will come together and see that we need to stop the bickering and get on with a business plan because a vaccine for my small businesses actually looks like cash flow, looks like short-term stimulus. they need to pay rent and mortgages right now. so yes, i'm hopeful, but it

depends on what happens in the next few weeks in my opinion >> kevin, i know that you have been against more stimulus, but i would argue to you before it might have looked like a bridge to nowhere, now, it might be a bridge to somewhere. is your view different >> no, it isn't. at this point, given that we now have a firm timetable between therapeutics and a combination of vaccines, you have to make the assumption as an investor that probably 50% of the population will be inoculated by the end of december next year, and you have to prepare as an investor towards that. what i would like to see is zero ppp, no more for businesses and let me clarify that. that's different than providing unemployment insurance to the massive shift, because i believe 20% of small businesses are going to fail in the next year not because of the pandemic. it's because consumer preferences have changed in many many sectors and we can't guess who the winners and losers are, so to

cushion the blow to the employees, i don't care what sector you want to pick. the airline industry, the cruise industry, the movie theater chains, who cares, the point is those employees that are being displaced, yes, let's provide unemployment insurance for them. but $0 to the shareholders of those businesses $0 they took the risk in the first place. the market is providing all kinds of liquidity in lenders and debt, and equity you saw the airlines go up 20% yesterday. let them issue shares if they wish but we're done providing free money from the sky. we don't need to we have to let the market determine the efficiencies now by letting some assets go bankrupt, and others being managed by good managers acquiring those assets the ppp should be over, zero, done. >> john, if 20% of the small businesses in america go out of business, what happens to the overall economy, add in kevin's plan to give them unemployment

insurance. >> no, the whole thing tanks people like kevin who i really like need to understand this, in order for my rich friends to do better, in order for my rich friends to stay rich, my poor friends need to do better because 70% of this economy is consumer spending. consumer spending and half of this economy are small businesses with 100 employees of less 70% of this economy are employees with 500 employees or less kevin, on the last show said that, well, you know, we need to stop supporting small businesses with $500 million. what planet is he living on. i'm talking about people with one to four employees. i love him he's brilliant, but i don't know what planet we're living on here this is about confidence this is about hope we did a survey last night at operation hope, and we found 67% of our small business clients

had more confidence after the election than before that's good. they did not have confidence that just the vaccine was going to give them a plan or a pathway forward, and the vast majority of them, said over 50%, they can't survive six months i don't know what -- i mean, maybe they should get -- maybe kevin will give them his line of credit then we solve the whole problem, but you're talking about the investor economy, and those are two different things they are connected because the investor economy relies on the real economy states can't print money cities can't print money >> kevin, speak to what john is saying, the other piece is, you love small businesses, you love competition. if the biggest companies get bigger and the small guys go out of business, it makes it that much harder to compete as a small business in the future >> that's simply not happening 80% of small businesses are

thriving doing way better because they figured out the digital pivot. they have higher margin businesses selling direct to consumers using tools, you know, like zoom, and like shopify, and dock y docusign, and technologies that empower them and i love john, and i have given him kudos for the initiatives he put in place to serve underserved communities, particularly the shopify deal which is a big buzz in my community, everybody is talking about that good for that. what he's proposing and what i' against is he wants to add inefficiency, unproductive dollars going into businesses that are basically going to die whether the government funds them for another 12 months or not. i really object to that. our economy is so vibrant. you saw that in the recent numbers, the earnings, let it be leave it alone let the winners grow including small businesses if i have a company that makes a hundred million dollars, that's a real case study and with the

technologies i've got, i can reduce travel by 20% next year and reduce office space by 15%, and make 3% more now i'm making 17% pretax. that's a 20% increase in productivity that's happening all across the s&p 500 too. leave it alone let it go. stop messaging with it get the government out of this the economy is just fine >> gentlemen, it's a longer debate and i hope we'll come back and do it again with you i'm sure we will very very soon. john and kevin thank you, both, for joining us this morning, and debating these important topics as you always do becky. >> thanks, andrew. when we come back, how investors should go about navigating three big forces a new administration in d.c., a surge in covid cases and the rollout of a vaccine, we're all e ping is just a short tim awwe'll see. that's next when "squawk box" returns.

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something pretty unusual happened in the markets yesterday. you saw after pfizer's news of a coronavirus vaccine with more than 90% efficacy that the dow actually gained nearly 3% while the nasdaq actually lost ground. that hasn't happened since the spring of 2000 when the dot com bubble began to burst. joining us to talk about the markets is peter kraus, looking at this, does this have the signs of a market that is starting to unravel and unwind. >> i wouldn't necessarily call it unraveling and unwinding. i think what investors are starting to realize is for many years now, investors have paid up for free cash flow growth in technology oriented companies. with low interest rates and high multiples, and on the back of covid where those companies are the only ones that were growing.

investors now see an end to that they see a vaccine, they say reality coming back to the markets and investors are looking at valuation differences and saying these differences are just too large, and you can't -- >> that's what i mean, though. >> i agree with you! it's really powered things, right? >> yeah, but what i was pushing back on and unraveling, because i don't think these companies, the technology companies growing fast are going to stop growing i think they're going to continue to grow this is a multiple shift at the end of the day, do i think that traditional manufacturers are going to grow faster than the tech company no, but i do think the valuation differences are going to be adjusted and that's what we're seeing right now >> that's all that matters when you're an investor, it's what the market is willing to pay for things you think that this is all of a sudden game on for value stocks again across the board. >> yeah, i think, yeah, there's no reason to think otherwise now, how long is that going to

persist? that's an interesting question, and that gets into, you know, what does the next administration do, what does europe do, do we see infrastructure spending, do we see stimulus, do we see inflation? all of those things have to happen in order to create a dri longer period of time. right now we have a shift that may not last that long but if we have follow through, in capex, and in fiscal spending, and some inflation, and interest rate rises, you're going to see a long-term capital expenditure cycle that will drive value type stocks. >> so what would you be doing right now? is it something you look to the u.s. and think this is a big deal or do you look beyond we had guests this week who told us they think multinationals will do very well, and companies that are overseas, versus here in the united states >> i think the traditional thinking is that in these kinds

of environments, those economies that have been lagging will speed up and the economies that have been lagging have been europe and the emerging markets the u.s. economy has been very strong through all this, and likely it is not going to get that much stronger as part of the u.s. economy of valuation, multiples come down, other multiples will rise, but the net of that may not be as powerful as what we'll see in europe and emerging markets. so, people are looking at allocating capital to global investors or to european investors, allocating capital to emerging markets because that's where you see the effectiveness. >> what is your biggest concern, just in terms of the u.s. value stocks and what you see being a change in the theory of the markets now? what could trip that up most quickly? >> well, i think, you know, more data on the efficacy of the vaccine, if it turns out that the vaccine is not 90%

efficacious. maybe for some part of the population, but not the entire population the delivery mechanism for the vaccine continued spiking in covid cases, we don't get control, of the continued spike that is actually happening right now in front of us, in europe and the united states, that could bode poorly for the next six months to nine months of activity and that could slow down the shift. but i think there is a change here where we will see some inflation, we'll see a capex expenditure and we'll see a shift to those companies whose values have been depressed over the last four to five years. and, look, we can't be surprised at that. it has been 17 years where value stocks have underperformed so it is not surprising that, you know, we'll see some shift here >> peter, thank you. always good to talk to you we'll check in again soon. >> thank you, becky. >> coming up, jim cramer's first

take on what looked like another big trading day ahead. stay tuned "squawk box" will be right back.

to cnbc headquarters, jim cramer joins us now. what is the moral of this story that everything goes up with the stay at home names in the nasdaq and when maybe that story gets a little long in the tooth, everybody comes down whether they should or not

it is just -- it is traders and sentiment and everything sometimes it doesn't make sense. >> it is so pad, i was talking to a bank trader yesterday, when bank of america was at 23, what a buy with the ten-year going -- interest rates going higher. at end of the day, bank of america sale didn't get to 1.25 on the ten-year. you can't have what happened yesterday and believe in the markets. you have to recognize you can't have one-day moves and believe they're for real i think there is a lot of value in growth. i think there is a lot more growth than people think in value if china and united states have some sort of -- i thought yesterday was a day where people said i thought it was going to be 50% and i thought it was going to be owl throut three mo make a move quickly and then we'll reassess, there are a lot of stocks that are pretty cheap, based on what the prospects are now. then the other stocks went

crazy. i'm not so sure i want to be in them >> yeah. is the long-term case in tact? there is -- it is a market of stocks, not a stock market, i understand that. but -- >> yeah, i think it is, i don't know whether people can continue to flee to the suburbs and have that but i looked at horton's numbers today, i like housing, i like automobiles, i like aerospace because of yesterday but i suddenly don't hate let's say companies in the internet. i don't hate them. they're not just worthless but is pay pal -- is pay pal 20% overvalued yeah, maybe. i would rather be in that than any of the banks after the move. i'm looking at toyota, that's interesting stock. look at pay pal. do i want pay pal over, say, pnc? i don't even know.

i think there are a lot of moves yesterday, highly exaggerated and really have to bear close scrutiny i don't think they were real. >> okay. all right, jim, thanks, see you in a couple of minutes andrew >> meantime, let's swing over to our good friend dom chu, a quick look at the big stocks on the move in this wild premarket. dom? >> we're going to hit on something that jim talked about with regard to autos and some win in dr horton as well we're going to start with dr horton, the shares are higher by 3%, 100,000 shares of volume premarket. the home builder reported better than expected profits and revenues increase in the number of homes it sold and orders for new homes as well. they gave an off tptimistic forecast then shares of auto parts, down 4%, 6,000 shares of volume

this company posted better than expected profits in sales. people are fixing their cars during the pandemic. that stock is more than doubled since the pandemic lows in march. perhaps some profit taking there off nearly 4%. we're going to end on shares of cyberark, this is the israeli-based cybersecurity company, mixed results, profits topped consensus estimates, revenues fell short of expectations cyberark gave a current quarter revenue forecast that fell shy of some estimates as well. so, andrew, those shares down 7% premarket. back over to you >> okay, dom, thank you, for that want to take a quick final check on the markets, show you where things stand half an hour away from the open, dow looks like it would continue higher this morning, 144 points higher as we have been discussing throughout the program, the nasdaq looking to open lower, 153 points lower right about now. the s&p would open about ten points lower

we'll show you where oil stands now. you can buy a barrel of wti crude if you want to do it that way at $40.70. make sure you join us tomorrow "squawk on the street" begins right now. good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber the vaccine row satation contins this morning we're on watch for some signs of reversals. dough futu dow futures up, nasdaq lower record numbers in the hospital our road map begins with covid volatility for stocks. stocks are set to start the day mixed as that move out of tech continues. >> the fda green lights eli lilly's antibody therapy for emergency covid use for treatment there, of course, as