we'll showis moving. and multiple states hitting new records for coronavirus infections as well as hospitalizations. we'll tiell you about new lockdo lockdown measures. and there is new antitrust regulation proposed by china, stocks plunging. we'll take you live to beijing it is wednesday, november 11th, 2020 and "squawk box" begins right now. ♪ our heros prove in liberating stride ♪ >> welcome to "squawk box" on

veterans day as we thank those who served us in the past and continue to serve us today i'm becky quick along with joe kernen along with andrew ross sorkin things are in the green once again. looks like the dow is indicated up by about 181 points and if we were to open at these levels and hold it through the session, you would be looking at the dow closing at a record high it has been up six out of the last seven sessions. up another 626 points yesterday. dow futures are up, s&p futures up by about 26 and then the nasdaq, which has been the weaker part over the last several sessions, down more 1%, actually indicated higher today as well. up by about 130. the bond market today the is closed in ob sservance of veters day. we'll talk with david petraeus

later this morning andrew >> thanks. and an important day in the united states of course. but there is also a holiday going on in china, very different kind of holiday, made up of a shopping -- a made up shopping holiday i should say called singles day and much like amazon prime day, singles day started november 1 and culminates today on 11-11. and we want to get over to eunice yoon who has some eye popping sales numbers. antitrust moves are raising eyebrows >> and you're right, this day which used to be a 24 hour shopping period has now been extended to 11 days for ali baba so the numbers are looking pretty good for them they said so far the number of transactions and orders that crossed their site has reached

$56 billion. so that is a record for them jd also recorded good numbers saying that their transaction volume reached about $28 billion. so some very good numbers. and companies are really doing everything they can to try to reach out to consumers for example, right now instant noodle company is live streaming its products on ali baba's site, a popular way to try to be engaged about yowith your consu. and some of the trends that we were seeing are really pandemic-specific in that the chinese are very famous for traveling out and buying a whole lot of stuff so far this year, we are seeing that imported goods are doing very well. for example, ali baba specifically said that apple, nike, estee lauder, those products are selling well.

and luxury brands also this time around when they haven't in the past as much been a little reluctant to go on line but this year prada and among others are selling quite nicely. and a lot of people excited about buying anything to do with skin care and wellness and while this whole festivity is going on, and a lot of excitement, there is a another event that he alluded to that is overshadowing this festivities and that is that the chinese government speakers to be t app targeting big tech they unveiled anti-monopoly regulations. just a draft proposal, they are seeking public comment until november 30, but it appears that they are trying to define what monopolistic practices are and that got a lot of people nervous in the market because

some of the concerns are for example price discrimination based on data. so offering different prices to different consumers based on their data bundling sales, redistricting sellers to one platform. so these types of concerns of the regulators are something that we see quite commonly in ecommerce as well as food delivery and that is why for example morgan stanley said that they were a bit concerned about what this could all mean for ali baba or the food delivery app, for the as much about jd, but still a lot of nervous investors as well as people in the tech community here because of those regulatio regulations. >> so just in terms of what we've seen, you didn't hear

about the chinese governments talking about monopolies in the past any other crackdowns on industries >> in the past when we would hear about monopolistic concerns, it is usually anti-monopoly investigations for foreign companies. this is what is quite striking what is striking this time, it is going after chinese companies. there has always been a push and pull between the government and private industry but this time around, it looks as though the authorities here are really trying to make sure that private industry doesn't necessarily get too big. >> pretty interesting, eunice, like open position the hoingpos for what a lot of this works and what is possible when you have that type of market clout in the digital world. and this one quote that i like, the government wants to make

sure that chinese consumers are not prisoners to algorithms. which i mean that is such an interesting way to say it. because i don't want that to happen either. it reminds me of like when the machines take over or something. to be a prisoner of an algorithm. but rich people pay more, you know, depending on quid proce qo with sellers and we're finally coming to grips with the double digit 258 age and watching it happen in a country where they want kil cone all hear about going to a consumer society so you want consumers to do well, but once again, you don't want to hurt your big great tech companies either >> rate.

i thi right i think the chinese government would say that they always want to protect consumers and they would also note that the consumer is becoming increasingly important and they would want to make sure that consumers have their rights, at the same time i think ultimately the chinese government likes to be the one in charge here. they have not really been happy with the idea of foreign companies for example or private companies gets a lot more influence than, you know, than the communist party. is that is kind of the underlying i think narrative even though, you know, there is a lot of other language that -- and references to algorithms that might be put out there as the main reason for these new regulations. >> interestingly the narrative in the united states as you know, being especially among silicon valley, is to go to washington and said to the trump

administration and others, look, please don't regulate, don't break us up because look over there, you know, in china these companies are five times the size and they have national champions and if we're going to compete against them, we can't be broken un how much of that conversation do you think is reversed now in china? i'll be very curious if they go through with these measures what that does to the discussion here about big tech >> well, i think here there is always an assumption that the communist party will want to maintain control especially under the xi jinping administration xi jinping has shown that he and his administration likes to make sure that they have a firm grip on what is going on here and when companies here operate, they do assume that at some point they could potentially run to the government if they get too big. so in that way that the

assumptions here are really quite different i think than in the u.s. where, you know, there can be more of a discussion about whether or not it makes sense for a big tech to be broken upp or not. >> and such interesting stuff. you think back to xi jinping and the moves he's made in the past to cut down on corruption and that may play into part of this. but probably the biggest part has to do with just capitalism and people getting too big or companies getting too big. i don't know what the solution is unless the chinese government were to take a stake in some of these or to really break it down so that no one gets to be that important. i mean, this is going to be pretty telling about where china heads in terms of capitalism too. >> yeah, that's right. and actually, you know, i can relate that to ant as you well know, we were

expecting to see this massive ipo for ant but because of the regulate to haves aors and theis about ant and the micro lending, now that that ipo has bin put off. and one of the potential solutions that has been put on there that they would have to accept state capital in order to make it more acceptable to the government, but from the government eve explanation, it would be that we are mitigating risks because part of the government is in that company. so you know, i think that it is kind of exactly what you were saying, like is this the way forward in order to try to find the fine line. but then not necessarily capitalism the way you and i would know it, but maybe the way the chinese know it, which is always capitalism with chinese

characteristics. >> yeah. mitigating risk to their own survival in the future eunice, thank you. and when we come back, breaking early this morning from russia, we'll tell you about new data from the first phase three vaccine trial. that's next. plus much more on the rotation out of technology and into the value stocks we'll talk strategy straight ahead. u.s. equity futures this morning up being a cross the board, dow futures up by almost 200 points. just 132 points to a record high from here. this is decision tech.

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. breaking news out of russia, early this morning the country's national research center for epidemiology says that its "sputnik" covid vaccine had an efficacy rate of 92% says that figure is based on interim data from a double blind placebo controlled trial involving 40,000 volunteers. pfizer did 90%, so russia is 92 administers. and not to say that that number is not real, but i can just tell you that -- >> i thought the same thing when he i heard that.

>> there was a piece in "nature" that highlighted an open letter from 40 of the board scientists about some data that russia presented back in september where there were these strange repeats of patterns in the data, almost as if it was just duplicated to show that -- i mean, i like that they call it "sputnik." >> me too. >> last time that they beat us at something for like a month, they were ahead of us in the space race so they are like what can we name to show our domination over the westerners so geez. >> i thought the same thing. every single thing you just said, i thought the same thing watching this roll out and by the way, pfizer by the way, and i also -- pfizer said greater than 90% so we still might be better. >> so 92% then would actually be 93%. >> right >> we're gist, you know, just

conjecturing making it an interesting time. >> based 00 whon what we've seee last 40 years. >> sgaexactly. >> let's talk about where we are with covid nearly 62,000 people are hospitalized in the united states right now with covid-19 it is nearly 2,000 more than the peak back in april and the number ofs expected to climb hospitals in oklahoma, minnesota and texas now grappling with crowded sbrebs receiin sbrenints and case continue to surge in new jersey as they had the single day total since april officials in newark says the average positivity rate for covid tests reached 19% and the city instituting an 8:00 p.m. curfew that goes beyond the new state measures and this is across europe as

well, italy reporting its highest daily toll since april, 580 deaths and 36,000 new cases in a 24 hour period. and despite the current rotation in the market, our next guest says that value in tech stocks can co-exist and both do well joining us is gene todd from fiduciary trust company. and i understand the logic that the tech companies can pin to put up big numbers in earnings and show growth, but it seems that if value is going to start doing better, it will come at the expense of the value stocks. what is happening? >> yeah, thank you for having me good morning to everyone yeah, look, first of all, they both can co-exist. and while growth and tech in particular has taken it on the chin the last couple days and we've seen a bit of a rotation, is that rotation sustainable

ie rngs is it a big "r" rotation or small "r" rotation. big "r" means that it will last for weeks, months and quarters, small "r" temporary a few weeks. and so it is a reopening story the positive news about the vaccine, you know, people will go back to life as we know it and when that happens, that means that some of the stay-at-home stocks will be under pressure and so that makes sense. the other thing that we're seeing is look what is going on with bond yields and as bond yields go up, the value agtations in tech come un pressure so that explains a lot of the recent movement, but we don't think that yields will stay at the current levels we think that they will drop back down. and the virus has a couple more months to go so we wouldn't give up on tech,

there is a place for tech especially the faangs who have just dominant market positions great revenue growth, great margins, great leadership. those will continue to do fine but over time, as the economy reopens, cyclicals value, a place for them as well >> fair point on the bond mar t market the ten year c bond market is closed [']for the holiday, but watching the bond prices tick up back towar1%, th a fair point and is it a good idea you think to distinguish between some of the stay-at-home plays that are purely pandemic plays and then some of the bringing tef of thb will see massive growth no matter what happens in terms of stay at home or go back to work?

>> we do and i think some of the stay-at-home plays maybe got a little bit ahead of themselves when you look at some of the companies that have seen their stock price increase 100, 2 oor00, 300%, and if you look at the forward pe multiples, some of the companies are at 100 to even well over 200. it is hard to make a case that that is sustainable at those levels they are great company, they are doing well, but as the economy slowly starts to reopen, it is a big difference in how those things will continue to perform versus these big large cap well established brands that also have such diversified revenue streams. >> so what are you telling clichblt clients to do, to move money out of those names or back into the technology names

>> one thing that they have to remember is to rebalance as we saw a lot of the tech names move up, we took a lot of money off the table. everybody talks about buying low and selling high, but rebalancing forces you to do that and so our clients have had the discipline to do that. so they are not overly exposed if you see a large dip in some of the well-known brands, it is a buying opportunity we think. >> thanlgs thanks for your time >> good to be with you thank you. want to see what kind of method the russia vaccine was, and it is like the others, not the pfizer i actually at one point worked with some guys from the

university of moscow and the scientists are top notch russia. so it doesn't mean that it is like vladimir putin is there, you know, in the lab or anything that is one thing that we can count on hopefully around the world. >> yeah, but the way they presented it and with "sputnik," they said that they were the first ones with the vaccine but they aren't done phase three and we had similar stuff, we were just waiting on it, not declaring a vaccine until fda approval and so that was the concern, this was the government authorities, not the scientists, who were taking the short cuts so that they could claim that they caould come up with it first. >> yeah, thank god that would never happen here. and so revlon is on the brink.

and leslie picker will have that and here is a look at the pre-market gainers everyone wakes up every morning to a world that must keep turning. the world can't stop, so neither can we. because the things we make,

help make the world go round. they make it cleaner, healthier, and more connected. it's what we build that keeps things moving forward. so with every turn, we'll keep building a world that works.

welcome back an update now on a story that we told you about way back in early onkts, th onkts october, that is when it

revlon said take a haircut or risk more. >> yeah, a critical deadline just passed for revlon the company had been coaxing bond holders to trade in notes for about a third of their principal in cash. they have need to reach a certain threshold to stave$1 bi. and while we have yet to see an official declaration from the company that the exchange was successful, the market does have high hopes revlon shares soaring yesterday up 47% although taking it down this morning. and some investigators have been betting that ron perelman will bail them out. but we know that he has been selling everything not nailed down from real estate to yachts. and so the debt exchange also

requires carl icahn who also cut his teeth in the '80s. "wall street journal" noting icahn didn't think that the exchange provided enough return. >> so stay tuned i can't believe you said anything not nailed down that does describe -- tough to nail that big yacht down >> you'd need a really big nail. >> dry dock or something you got a question, beck >> yeah, leslie, just in terms of carl icahn thinking it is not a fair exchange but we don't know if he ever tendered it, is in any chance that he could get a premium for what he was offering up or is that not allowed? >> so this is what is really interesting about this whole exchange, there is a small fraction of bond holders yet to be identified, about $90 million worth of bond holders who they

have not been able to reach out to so there is this kind of discontent among bond holders that are known that say, well, if they can't reach out to these bond holders and they decide not to tender, the exchange could still go through and the bond holders who does decide to tender have to take the haircut and whereas those who don't can get their repayment in full. so there is a debate going on. almost like a prisoner's dilemma. where if you don't tender your notes, the company could go under and you'd be repaid 10 cents on the dollar or something. but if you do tender your bond, you'd get about 33 crept cents e board. so a lot of weird psychology going on here. i don't know if they can pay a premium to icahn to encourage him to tender his shares

they have sweetened the deal for everybody but unclear whether it is good enough for him to actually tender. >> leslie, thank you good to see you. been a while andrew when we return, a lot more, a closer look at president-elect biden's tax plan and what it could mean for your money. and a look at yesterday's s&p 500 winners and losers 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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. good morning on this wednesday. take a quick look at equity futures at this hour they are higher once again look at the dow up with 217 points nasdaq looking to open higher as well

and the s&p looking to open about 32 points higher and meantime i want to take a closer look at america's tax code and how it could potentially change under president-elect biden, what it could mean for your money. a man who knows all about money, wealth and taxes, robert frank, joining us this morning. robe robert, what you got >> the markets may not be expecting higher tax, by the biden campaign telling me that he remains committed as he says to revamp the tax code so it rewards the work of ordinary americans, not wealth. and he looks forward to working with congress to deliver that. the big question of course is the senate and if the gop retains control. tax hikes are probably not likely but even if you get a 50/50 split, tax experts say the sweeping tax reform that he has proposed during the campaign has very little chance but you could see some pieces make it through in a smaller

form his doubling of the kapts gains tax rate to 43.4% is very unlikely his payroll tax on more than 400,000, that will be tough because you can't change social security without 60 votes. what you could see a is slight increase in the corporate tax rate to maybe 25% rather than the 25% that biden is proposing. maybe top marginal rates go back to 39.6. and he also proposed middle class tax cuts and credits, those could be packaged with slight increases at the top of and i know we all care about salt, but unlikely to get a compromise there because there are divisions even within the democratic party about that benefit that mainly goes to the wealthy. >> robert, it all depends on obviously georgia ayou really d need to look deeply into it as you have to see what is available under reconciliation

some things that the president-elect wants to do could be done there, which is still dependents on what happened in the senate there to do even any kind of reconciliation but you could get rid of the filibuster, but even joe manchin says -- went on record and said i don't care how hardy get whipped by schumer, i'm not going to fold on that.get whipped by schumer, i'm not going to fold on that. so you are not ending the fil r filibuster >> and a lot of people are missing the point that even if you get both georgia senate seats, there are moderate democrats that during a pandemic and a weak economy won't vote no higher taxes even if it is just on the wealthy and so we should lz remember however that in 2012, republicans voted for an increase in the capital gains rate from 15 to 20 and increases the top rate from 35 to 39.6 that was an 89-8 vote for those

tax increases. you now, it came with a lot of other issues he sequestration, budget cut, the fiscal cliff but if it is part of a much bigger package that includes tax cuts for the middle class, you could get a compromise and that was put together by joe biden and mitch mcconnell. so everyone is writing off any big tax increases, but we did see it before. so whether with we can get back to that less partisan timing is unclear of course. >> yeah, supposedly buddies mcconnell and biden. thanks and for more on president-elect biden's tax plan, let's bring in our guests co-leader of pwc national tax office and also served as leader mitch mcconnell's domestic policy director. and also with the seth halen, from the american progress action fund and served as special assistant to president obama for economic policy.

so a wish list probably that you and maybe others in your party want but it is up in the air. it does depend on georgia in the is th senate in best case scenario, what do you see biden being able to do >> well, so obviously i totally yes with the agree with the analysis that it depends on georgia and the senate best case is that the democrats win the senate i mean, no president gets every item on their agenda, but i think that there is a lot of momentum -- a lot of desire in the democratic caucus having been left out of the 2017 tax bill to roll back some of the more xhexcessive elements like h corporate rate and top wrat rats well of course first order of business is stimulus and recovery and then i wouldn't expect that

to be financed i expect that that would be probably deficit finance but i think that with the democratic senate, you know, a lot of biden's tax agenda is possible >> but unfortunately, you know, i've got my own feelings on what georgia is eventually going to do but we can't say anything definitively but just like election night, the paths -- the paths for a president like biden do a lot of the such are very difficult at this point what do you think they'oreticaly is really possible of all the wish lists that he had >> well, i mean, you're right. first of all, it hangs on georgia. if republican he keep even one of those two seats, i think most of the tax proposals are off the table. if the democrats sweep georgia and end up with a 51-50 senate, i'm not sure that i agree that

lot of the biden tax proposal is on the table i do think that some of it might be on the table. but even a corporate rate increase of 25% would completely erase the net tax cut from the tc ghchlt a and would put the u.s. at second highest in the developed world. second only to portugal. so i think that there will be some concern even amongst moderate democrats and remember, in a world where democrats have 50 seats, that mean that you have a senator from georgia and a lot of corporate america, so an interesting question to see where a hype threat ossoff is doting ie inine ining voting iin xwi. >> to yo . >> do you see any possibility thatrepublicans would go for 25% on the corporate tax rate?

>> no, i don't think so. and if you are mitch mcconnell, that bill never sees the senate floor. so if democrats have the senate, in theory they could do it and they wouldn't need republicans to vote for it anyway. >> seth, you probably looked, you know, yesterday the biden team put out its list of advisers for all sorts of the various departments that they will be looking at and it was a fascinating list. but most fascinating to me that there were so very few people in industry on the list it really was a number of people from the obama administration before, people with government experience, it was a very diverse list of people in some regard but what do you think that says about the way the administration will be approaching business in

the larger realm >> i mean, i think that there definitely was representatives of business as well as labor, you know, progressive groups so i think that they are trying to find, you know, a group that is representative of america as a whole. but i think that it will be a very sharp break with the trump administration where they put, you know, corporate lobbyists in top positions, more lobbyists than before. so i think that biden adminisatration is certainly going to listen and involve people in business and hear those views, but they won't be -- he won't stack his administration with corporate r lobbyist lobbyists. >> and so what is your take though, if you think that when you win you got -- you got some kind of honeymoon period to get one or two things through.

we saw it with the trump administration taxes was the issue. with the obama administration, health care was the issue. i know there is a lot of conversations about whether we ever get to infrastructure but where do you think taxes lie on that priority list between health care and infrastructure and taxes? and anything else you'd put on that list? >> yeah, so i think that if taxes have a role to play in that sort of first 100 days win window, it probably shows up in some context of a covid stimulus bill so as hopefully a vaccine fwetss rolled out and we get more comfortable with people moving about and engaging in activities, traveling, going to indoor sven suvenues and the lia tax relief that provides stimulus to the country, kind of old school finance now, there will be an upper limit in terms of deficit

spending, but i think that tax relief is probably where they play and then there are some automatic tax increases that kick in at the end of 2021 that on a bipartisan basis i think members of congress want to avoid, tightening of the interest limitation rules, and then just standard expiring provisions and so i think maybe bipartisanship to extend the provisions >> and so we have to go, but i just wonder whether you agree whether the degree graphic center of the house or democratic party is not -- not a great time to be way less progressive. i guess president-elect biden about says maybe he feels that he owes them something, but the writing seems to be on the wall. do you agree with that >> i mean, look, there will be a senate that is split 50/50 at

best so i think, you know, in some ways you need to temper your hopes a little bit but this was a sweeping win for joe biden and i think that progressives can't forget that we did win this election and we did win it convincingly >> but elections have consequences sweeping, decisive, what do you think, are you feeling sweeping decisive doesn't seem to -- about five states separated by a couple hundred thousand votes which no one thought >> yeah, and congressional republicans are feeling pretty good about their performance >> yeah, sweeping the other way. anyway, thank you both seth, you were already in the middle i've told you that before, you don't need to worry about currying favor with the crazies way out the. we already established that. at calvert, we know responsible investing is hard.

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welcome back too "squawk bo box" mond monday's vaccine news raised

stocks good morning to you, brenda. we are looking at some of these stocks that have been beaten up, but if we do get a vaccine, things may get better. before we get into the stocks that you like because it's a question i ask all the time, what is your time line for when you think some semblance of normal returns because i think we'll have a big impact interms of how people think about the stocks you're about to talk about? >> i think a time line is still somewhat uncertain, right? we got great news about a vaccine that's 90% effective so we know that it's coming we don't know exactly when it's going to be widely available, but if we look out a year from now, when we buy stocks we're buying them for the longer term. we're saying what's going to work in 2021 and 2022. what's the earnings growth going

n some cases beaten up for a variety of reasons but for many of them it's simply a matter of the environment that's caused them to be where they're at today. >> brenda, let's play through those stocks then. >> sure. >> your top idea >> so boeing is one idea that we recently bought a couple weeks ago. this is a name obviously that's had a lot of troubles but we feel like the news is becoming incrementally positive there's green chutes here. the 737 max is safe. we have a scenario where the backlog isn't nearly as bad as everybody thought and we have certain parts of the world, especially areas like china where domestic air travel is back to pre-covid levels we think that travel will return we especially think that leisure travel will return when we're able to reopen more meaningfully, whether that's six

months from now or nine months from now we think there will be pent-up demand. >> brenda, you look at 2022 earnings boeing, what do they look like to you do they look like 2019 earnings? look like 2018 earnings? 2017 earnings? what would be your comp? >> i don't think we get a full recovery here. it's not so much about the level of earnings but i think for a story like boeing, you have a duopoly here you have a company incredibly important for a variety of reasons. the news, we've been watching for a long time, we're waiting for it to bottom out here. we think the news is becoming incrementally more positive. i think that's all that we need to really get the stock continuing to move higher from here whether we get -- i think it's going to be a while before we get back to 2019 earnings levels certainly, but we think that things are becoming more positive. >> fair enough we have to leave the

conversation there for the same reasons you like boeing, i imagine you like t.j. max and it's a conversation we'll have with you soon. great to see you once again. joe? >> thanks. coming up, stock futures pointi gnsngai for the dow, s&p and nasdaq this morning. "squawk box" coming right back

futures cling to more gains for the dow after another set of rotation out of technology this morning green arrows across the board. we'll show you what's moving. apple no longer has to rely on intel for chips the tech giant ready to release new macs with their own in house processor. we'll find out what that move could mean. it is veterans day we want to thank all of those who served our country and all those who continue to do so. we'll speak to general david petraeus about his ongoing effort to hire veterans. the second hour of "squawk box" begins right now good morning welcome back to "squawk box" right here on cnbc as we honor our veterans i'm andrew ross sorkin along with becky quick and joe kernen

take a look at u.s. equity futures this hour on a wednesday morning. you're looking at a higher market pretty much across the board. we'll show you the dow right now. it's up about 182 points s&p 500 looking to open up 27 points higher. then you have the nasdaq looking to open about 108 points higher. joe? >> breaking news on the mortgage front. diana olick joins us with the mortgage numbers hey, diana. >> reporter: hey, joe. another record low interest rate did very little for home buyers. mortgage applications to purchase a home fell 3%. they were 16% higher than the same week one year ago that annual comparison is now shrinking steadily demand from buyers has been dropping you would think rates would help rates dropped from 2.8 from 3.01 that rate was more than a full percentage point higher one year ago. now home prices are just skyrocketing

you can see that again in the average loan amount which just keeps rising low rates did, however, help demand for refinances with growth 1% for the week and we're 67% higher annually. that's the highest level since august that was last week and this week is a whole new world mortgage rates have bounced decidedly higher since news organizations called the presidential election for joe biden on saturday. the average on a 30 year fixed is up 12 basis points since last friday that according to "mortgage news daily" which monitors those rates daily becky. >> diana, thanks we've been watching those numbers closely in the bond market, too. in the meantime, futures are higher in the equities market and that includes the nasdaq yesterday was a good day for most non-tech stocks dow's been up 6 out of 7 days. to close at a record it needs to close above 29,551 that's 132 points from where we closed yesterday mike santoli joins us now. he has more on all of this

mike, it's been pretty fascinating to watch the change in terms of how people are valuing value over growth. >> yeah. another one of these shifts that we've seen made periodically every few months, becky. we'll see if this one sticks the overall market has absorbed the pull back in the large cap growth stocks and the nasdaq relatively well. here's the s&p 500 a couple of relevant things to keep in mind the september and october lows that we saw in the index, if that turns out to be kind of a floor for this range, breaks above at some point, that's usually a pretty powerful signal when you have that kind of a base 3645 is worth keeping an eye on. that's monday morning's high in the s&p. we had the huge burst high and gave much of it up and 3588 was already the high for september 2nd. we're bumping around the upper end of that range. it's been a broad rally. qqq is the nasdaq 100 etf.

that has been the source of a lot of the recent weaknesses that is a little bit different type formation lower highs happening. maybe some questions as to whether, in fact, they got so over owned and over crowded, people feel like they need to lighten up in that area. here's how the rotations happened, the broadening of the market it's an etf called rvrs. it owns the s&p 500 but in reverse weighting to the market cap weighting. look at that huge vertical move that we saw there. it's taken it out of the winners, into the big stuff, into the laggards, the small stuff. we also did see it back in june. you can't necessarily assume this is going to be a trend change even though it is moving in that direction right now, becky. >> hey, mike, what else do we need to watch? you mentioned that 3645 monday morning high that we saw for the s&p 500. i mean, watching just the ups and downs this week trying to figure out if this one's going

to stick how long do you think before you can say, okay, this is a longer, bigger rotation than what we've seen in the past several months? >> it will probably be a little while trying to sort this out. the bond market has been at the center of a lot of what we're watching, right? yields going higher. yesterday treasury yields we had a high on the 10-year on .79%. bond marked closed it's not going to give you that signal on a one-day basis. that's taking the pressure off the bond market. bonds and big growth stocks have traded in tandem i think the bond market will tell you if, in fact, we're starting to get concerned about more restrictions, a slowdown before we get to something like a post covid or vaccine aided economy as everybody hopes we do >> mike, thanks. we'll check in with you later. coming up, what would a delayed transition in the white house mean for national security we're going to ask former cia

general secretary david petraeus and talk about his efforts at kkr to hire veterans. allibaba setting a new sale record for the annual singles day shopping event shares of chinese tech giants under heavy pressure under new regulatory concerns coming from beijing. a live report when "squawk box" comes right back everyone wakes up every morning to a world that must keep turning. the world can't stop, so neither can we. because the things we make, help make the world go round. they make it cleaner, healthier, and more connected. it's what we build that keeps things moving forward. so with every turn, we'll keep building a world that works.

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♪ ♪ today is veterans day and our next guest knows firsthand the value of hiring a veteran. let's welcome david petraeus, retired four star army general former cia director and now kkr's global director. it's hired nearly 90,000 veterans and their spouses since the program's launch back in 2011 thanks for being with us today great to see you. >> great to be back, becky wonderful veterans day tradition. >> yes you join us every year to talk about this, but what's really important is this is not a one-day event for you all. this is something you are focused on all year. i think just since last year

you've hired something like 10,500 veterans or their spouses to put to work through kkr and that's really amazing. why don't we talk about what you're getting when you hire a veteran and why a lot of these veterans have had much tougher times coming back into the work force. >> what our portfolio companies have learned is that hiring a veteran is not just the right thing to do, it's really the smart thing to do from a business perspective once they've had experience with veterans and with their spouses, by the way, who have also sacrificed and served in many respects as well, once they've hired them, they realize how attractive the values, the attributes, the qualities, the experiences, exerr p tease, leadership skills and above all frankly the team work that individuals learn while in the service and often quite diverse teams as you would expect. so veterans have become very attractive in the workplace. it was not surprising in the last couple of years the unemployment rate for former active duty veterans was a good

bit lower in the very low unemployment rate that we had in the country at the time. >> what kind of roles do these veterans go to work into what's an example or two >> well, it really varies. we have numerous commission officers who have gone into financial work often after doing a business degree and then there are others foremen on assembly lines, working in some of our industrial companies again, it's the entire gamut needles to say, it depends on what the individual did in the service. we own the largest medical evacuation helicopter company in the world, certainly in the united states, and i went to inspect the maintenance facility and other facilities and what i saw were plenty of my old friends from the days when we invaded iraq with 101st airborne division with 254 helicopters. there you had the pilots, crews,

medivac experienced pilots and crews as well. so, again, it very much depends on what their background was, what additional education or training they may have received because there's an awful lot of great programs out there now that are adding i.t. skills to the resumes of the veterans that are in the job market. >> you know, you mentioned that the unemployment rate for veterans has dropped significantly over the last several years. kkr has a huge number of businesses that it oversees and that it owns at least a stake in what did it used to be when you went to the head of a business when this first started out why a veteran would make a good job candidate and what's it like now when you talk to heads of businesses >> well, there's no convincing that needs to be done anymore. maybe a decade or a bit more ago there were some questions about veterans, whether they could adapt to the civilian workplace, all of these kinds of issues, which have turned out by and large to be untrue again, veterans are used to

seeing a task through. they get up early in the morning. they've been on battle fields. they have faced far greater challenges than you're going to see in most businesses in the united states, and over time the ceos and the leaders of the businesses that we own and by the way the other private equity firms have similar records and large ones, these leaders have come to realize you really can't get enough veterans. they want them more and more because as i noted, it's the smart thing to do. >> yeah, it is general, while we have you here, i'd like to ask you about what's happening now. president-elect biden said yesterday that he's not worried about the transition, that they're able to do things just fine, but our own eamon javers has done some reporting that suggests there is a problem if you get to the point where you can't do background checks at some point, where you can't put

people in positions and that back in 2000 there were some issues with the transition team going over to president bush at that time, that they weren't able to get a lot of people put into the national intelligence positions that they had hoped for. that could have caused some problems with 9/11 coming up not long after that. are you worried about the transition at this point or what happens with the challenges that are coming on this is our national security prepared >> well, you know, i had a great mentor over the years, general jack keane worked for him several different times including in the great 101st airborne division and i was his ops officer. he used to them them if you really love your unit, if you really care for it, you will suppress your ego, you'll let your successor into the organization before you even leave, before the change of command, get out of your house so that your successor can move in and even move out of the office so that your successor can move in there say a day before the change of command ceremonies so that everything

from thereon out goes smoothly because you deeply care about your unit. so my hope would be whatever legal challenges that are raised will be completed expeditiously. it's completely ahistoric to imagine 6 or 7,000 votes will change this, but let it play through. i don't understand in the meantime why actually you can't still get on with a transition in terms of the time consuming tasks, you identified several of those, background checks for those who will require the top clearances so that, again, on the inauguration day at noon on january 20th the new administration can step right in, you can have a seamless transition as is possible. >> general, it's andrew sorkin here we had talked to alex azar yesterday, secretary of health and human services, and asked him about whether his transition

team relating to covid given that we have this raging pandemic would speak with the other side, if you will, the biden transition team, and the answer clearly was no. are you suggesting that these folks do this without the blessing of the white ouse >> well, obviously they're not going to do it without the blessing of the white house. that has been clearly indicated so one would hope that, again, if you really care for the country, at the very least exhaust these legal challenges as quickly as is absolutely possible you know, ideally by early next week so that you can then get on with this. the biden team announced their various transition teams just yesterday i believe it was all of the different departments and agencies and so forth. they are ready to go by the way, i'm non-partisan don't favor either party so -- but i do favor the country and i do believe that we should enable the incoming team to have as

smooth a transition as is absolutely possible for the good of the country >> biden's campaign promised to end what he called endless wars. what's your reaction to that what do you just think about the troops at this point, where things stand, how their morale is >> morale is always an individual event as the great command sargeant marvin hill used to say who did four combat tours with me, but by and large our young men and women on the battlefield preparing to conduct operations out there deterring would-be aggressors and so forth, they're doing just fine again, the military will be solid throughout all of this it's an institution. it will largely be unphased. it's ready whenever the time comes, but what we have done on the battlefield is really quite remarkable we have, because of the constellation of drones that we

can put up and a variety of other enablers, been able to support our host nation partners and countries like iraq, syria, afghanistan, so forth with very, very small numbers of forces and i don't completely understand the imperative for removing every single one of those noting that i used to hear very senior policy makers say that we have ended the war in iraq i would want to raise my hand and say, excuse me, we haven't ended the war in iraq. we have ended our involvement. we may find that we have to go back in. again, we went to afghanistan for a reason that's where the 9/11 attacks were planned al qaeda had a sanctuary in afghanistan during taliban rule. i don't know why they wouldn't try to re-establish that you also have the islamic state there trying to do the same thing. so if you can sustain a very

small commitment that is sustainable in terms of the expenditure of blood and treasure, i think what you can do then is manage endless wars because ending endless wars is a great campaign slogan but it doesn't always work out the way you intended when you withdraw your forces. >> the number of forces and troops we have on the ground right now, are they sufficient >> i would like to see a few more, frankly, still in afghanistan. we appear to be able to support our syrian and iraqi partners on the ground keep in mind, an awful lot o what we are providing isn't boots on the ground at this point, it's something in the air. it's the intelligence fusion it's the advice and assistance it's not the fighting on the front lines, and that's really quite a dramatic breakthrough. if you think of the 165,000 great american men and women in uniform that i was privileged to

command during the surge in iraq and that we then subsequently were able to help the iraqi security forces defeat the islamic state with less than 5500 troops on the ground, that's really quite a significant change and, again, if you can have a sustainable commitment measured in blood and treasure, i don't know why you can't sustain it, as we have, frank bely, much greater numbers in places like korea, europe, japan and a variety of other spots around the world where we've had troops for many, many decades. >> general, the world is always such a complex place i know you've been watching the way we've handled things over the years. you saw that the trump administration's approach to a lot of things, maybe not the greatest moment according to some with what happened to our allies, the kerdurds, erdogan,

whatever the obama administration, the red line, going back to the surge. i think vice president biden didn't want to do the surge, wanted to split iraq into three. who has a great record on navigating these great issues and what do you expect our foreign policy to look like with president-elect biden in charge where there's no one, you know, discussing things with him >> well, there are clearly areas in which there will be significant change one of those will be that we will return to some of the international organizations from which we have withdrawn. that will be the paris climate accord, the world health organization, et cetera, and try to achieve influence in these organizations rather than just leaving them and i generally support that i would also submit that the most important effort in the world, the most important relationship in the world between the u.s. and china will be one that is hopefully

coherent, comprehensive so it employs all of the capabilities that you have in the government whole of governments with an s on the end so it would include all of our allies and partners in that apparently the president-elect is already reaching out to leaders around the world and trying to revitalize, if you will, some of those relationships that have been hurt a bit noting that there are others, by the way, which were sustained at very high levels. again, there were achievements in this past administration, some considerable. there were achievements in the previous one, but as you pointed out there were shortcomings and missteps i would hope that those who come into office with then president biden and vice president harris will have learned from the experiences of the eight years of the obama administration and

among others will recognize that the appropriate approach to irregular warfare, again, these endless wars, is to manage them rather than trying to end our involvement in them because you can't end that and then also certainly as the understandable shift in focus to the asia pacific, the indoe pacific takes place, that there is a -- an effort that is firm, not provocative to engage china and also to, if possible, influence china on some of the issues where the competition is the fiercest while of course building on other areas where there are opportunities for working together >> general petraeus, want to thank you for your time with us this morning and for shining a light on veterans -- on this veterans day we want to thank them and thank you too for your service. >> always a pleasure to be with you again, becky service is a privilege thanks

>> thank you andrew >> okay. coming up when we return, china tech stocks, they're under some pressure this morning. those losses being felt here at home as well in u.s. listing adrs jd.com down 2% alibaba down more than 3 this coming on a special day coming up on all of it "squawk" returns right after this time now for today's aflac trivia question. veterans day originated as this on the first anniversary at the d world war i the answer when cnbc "squawk box" continues aflac. these are all the cab rides to my physical therapy. and aflac paid me directly to help. aflac. what he said. and this unexpected bill is from... the two-thousand-dollar specialist. thanks. aflac.

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♪ ♪ ♪ now the answer to today's aflac trivia question. veterans day originated as this on the first anniversary of the end of world war i the answer, armistice day. congress passed a resolution in 1926 for an annual observance,

and november 11th became a national holiday in 1938 thank you to all our veterans, we salute you. >> referred to it as that a few times. a couple of stocks to watch. lyft lost more than $280 million during the third quarter more than double the loss in the same quarter last year better than expected revenue also said it was working on developing a new food delivery service. lyft co-founder john zimmer is going to join us to discuss the results and business see that there at&t's warner media unit meanwhile is expected to layoff up to 1750 workers that's about 7% of its staff warner media plans to hold an all-hands meeting today to give more information about cuts to

employees. and we'll definitely bring you the news for that. when we return, an update from beijing on singles day possib "squawk box" coming right back

all right. china's shopping holiday called singles day ends today i guess it's more than a day, i'm told, although eunice yoon is here. we're going to talk to her the amazon of china, alibaba, said it exceeded $65 million tech stocks under pressure i felt excluded, eunice, not being single but it has nothing to do with that. it's 11/11 single, single singles day. that's it, right >> that's right. >> i don't have to feel bad. >> the original day. >> no, don't feel bad. it includes everybody. it includes everybody. the origins of it was singles day was supposed to be for lonely hearts, people that were single that's why it's 11/11, four people who are individuals, but

now it's just exploded into this big shopping extravaganza which of course would not only include for people who are single but anybody who wants to buy anything and that would include you. so for this event i wanted to kind of show you what's happening behind me because if you were an american company and you want to reach chinese consumers, what's happening behind me, which is live streaming, is one way that alibaba suggests that you do it. so i'm an instant noodle company and they are live streaming their products later today alibaba is going to be holding an event specifically targeted at u.s. businesses to try to help them better understand why chinese companies feel that live streaming is a must-have in retail. in terms of numbers, they look good so far for this day as joe had pointed out, the day is not a 24 hour madness as it usually is it's being stretched out over 11

days from november 1st to the 11th alibaba so far said the value of the orders that have crossed sites is $56 billion and jd says that their transaction volume has surpassed 28 billion so looking pretty good in terms of the over arching trends, they tend to be pandemic related. chinese consumers normally travel over seas they can't because of the pandemic so imported goods, luxury handbags, for example, as well, and then health and wellness products. over shadowing all of this excitement is the fact that the chinese government has come in with new regulations still draft rules being discussed until november 30th over what the chinese government believes could be monopolies stick practices. it looks as though it's a way to tame china's big tech players. for example, becky, one of the items is to make sure that there aren't unfair subsidies, for

example, or that the companies aren't restricting vendors to choose one platform over the other. so there's a lot of stuff there that's making investors very nervous when it comes to chinese tech >> and of course a potential solution that the chinese government take a stake in these compani companies. well, that could be a potential solution hasn't been put out there just yet but that is something that has been discussed, at least when it came to ant group by some investors here. >> eunice, thank you we will check in with you just a little bit later this morning on this important and developing story. in the meantime, apple unveiling new computers that use processors that the company created itself ending its reliance on intel. josh lipton joins us he has more on this front. this is a critical inflection

point, right, josh >> absolutely, becky the mac is enjoying strong growth tim cook is introducing new mac computers. the big news is they are powered by a main processor designed by apple. instead of intel it's a brand-new chip that apple calls the m1 >> the m1 chip is by far the most powerful chip that we have ever created it makes these macs dramatically faster, provides all new capabilities with extraordinary battery life and enables the mac to run more software than ever this is exactly why we are transitioning the mac to apple silicon. >> this will go into a new macbook air at 999 mack mini at 699 and new 13 inch macbook pro starting at 1299

bottom line, apple said thanks to the m1 they will boast faster performance, better battery life and stronger security. they could even boost profit margins on the machines. mac is a bright spot for apple thanks to the work from home trend. revenue jumped 30% to a record $9 billion in apple's fiscal fourth quarter new macs will be available starting next tuesday. back to you. >> thanks. before you go, you know, you mentioned the issue of margins, josh i imagine over time you'd like to think they'd get a better margin since they're manufacturing it themselves. there's got to have been a huge capital investment in building out a unit or division inside apple to both create and then ultimately make these chips so when do you think the margin gets seen by the investor? >> we'll see what kind of volume

they move here, but i do think you're right there's basically two big reasons apple's tim cook decided to do this cost reduction that should over time boost profit margins for the machine the other big reason is to use your experience. apple thinks ultimately it's going to deliver a better user experience if it controls more of the device like it does now with this mac. the hardware, software and operating systems, guys. >> josh, great to see you. appreciate it. we're going to take a quick check on this morning's movers in the tech sector we want to bring in sarat sethi, cnbc contributor good morning, sarat. how are you feeling about apple these days >> look, i think it's a great company, but what i am concerned about is that you have a multiple that went from 12 to almost 30. phenomenal company, great cash

flows but it's a classic stay at home story i wonder at times this multiple can contract doesn't mean that the earnings can't expand it's just a question of how far can you go with that multiple? >> so that's the question for all of these stay at home stocks what is a fair multiple to put on these companies on a long-term arguably sustainable basis in a somewhat described post pandemic world. we're not there yet. you have to hope 12 months from now that we're closer. >> right andrew, i would look at some of these companies, take apple, for example. it will have recurring revenues and most trade for 18 to 25 times earnings today that is based on kind of what we've seen historically. what also we would expect is post pandemic reopening. money is going to flow to areas where there's going to be greater growth not to say apple doesn't have greater growth but you'll have

higher growth and capital will necessarily flow there question i have is how much do you want exposure to companies like apple it's a portfolio management question great company, you want to hold it, but you want to make sure the apples, googles, facebooks of the world are not too big in your portfolio because that will hurt you long term even though they're growth revenues. >> how much of that thesis has anything to do with the idea that sales -- some sales potentially, and we can debate it, have been pulled forward meaning in a work from home environment people are buying new laptops, they're buying new phones, they're buying new equipment to make it work today and maybe that means they wouldn't upgrade a year or two from now >> i think quite a bit of that is built in already. you've seen the demand for all of these stay-at-home products really increase if we didn't have a pandemic. i think you have to build that into your financial models and going forward say, okay, when

the consumer comes back, when businesses come back, where is that incremental dollar going to be spent if we are open, the consumer's going to do travel, they're going to do leisure, they're going to spend money on themselves are they going to replace their next iphone. same thing with businesses so many updated the systems, software, cloud stocks these are great companies. what you're going to look at is the second derivative of growth. that will be really important because there are other areas that we have just taken to go negative and describe zero value. opportunities are elsewhere but you can stay with these, just do it in a prudent fashion. >> right do you think we're being too optimistic about a vaccine and what the world looks like in a post vaccine world in a weird way it seems to have been a massive switch in the market, almost terminal -- not terminal value but as if the world really is back to normal

next -- at least a year from now. obviously we're all hoecping and praying that's the case. you think about all of the challenges of distributing the vaccine, especially this pfizer vaccine at these lower super cold temperatures. how efficacious it really will be over time what the side effects really are. there are reports obviously that people do get fevers and think that it feels like a hangover. do people end up taking -- there's lots of things that could happen between now and then and how do you think about that >> so i think that's a really good question. one of the ways we're looking at it to say you want to be bar belled, you want to be diversified. if all of what you just described works out, then you will get a lot of capital pulling out of all of the growth stocks but in the meantime it's kind of like a hedge on your portfolio. these are the bond types of investments that you want to have you still want to look i do believe if it's not pfizer

it will be moderna and somebody else they are still working on this and you do have the fed behind this as well we're going to have more money in the fed fiscal stimulus at some point will come and that will provide a bridge if it's not 6 months to 9 months, maybe it's a year. i do think you want to be looking out long term. again, if i was an investor today, i'm fully allocated, over my at location, pull back. take the money off the table this is looking three to five years out, this is not for the next six months. it can be pretty volatile. you've seen that over the last six months. >> sarat sethi, always great to see you. appreciate it. >> thank you. when we come back, a lot on "squawk box. stocks seeing an up swing and jay snowden is going to join us to talk about the sector and what he sees at his casino once the vaccine is distributed

some hopeful news there. we'll talk about it. check out the futures dow up 183.

welcome back to "squawk box," everybody. we've been watching the futures on this veterans day you're going to see green arrows dow is up by 183 point in the futures. if it were to close by 132 points, that would set the dow at a new closing record. take a look at the big winners that are pushing the dow higher. some is gaining backtrackion from some of the stocks under pressure apple and microsoft. apple was on the top leaders list you can see salesforce is up by 1.7% chevron up by 1.4 and microsoft and cisco up by better than 1% take a look a at the nasdaq winners. nasdaq is indicated up 1% as well and zoom video which is such a big decliner. lost 25% of the market cap is indicated up by 3.3%

paypal holdings which have come under pressure up by 2% this morning, too in the next hour we'll talk about a big new call from goldman sachs. you won't believe how high they ne yr. it to go xtea "squawk box" will be right back.

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jay snowden national gaming. joining us on stocks in your re-open casino properties have things been improving >> actually, joe, good morning >> let me start by saying that >> from a visitation and length of the positive things that are happening. younger generation, increased. the 55-year-old, when you get

over 65 years old our visitation and trends, really this opportunity lays out for pen national gaming. there's a team that likes concerts and casinos i think what you're going to see. net net we're optimistic >> trying to figure out, i saw that, 21 to 40 demo segments there's a bigger customer.

>> doing a risk more are they more concerned. what's the difference. >> both is the answer, that's exactly right. as you would imagine it's been overturned in 20 stat states they're going to endpaj in the devices and offer the products through our bar stool offering 55 plus you've seen more propensity and a slot machine. they're enjoying the decade and the type of offering and age gem mow. we offer whatever you're looking for whether it's brick and mortar

across the portfolio are >> the eastern three way parlay. it's $15 but -- >> i'm interested in all three games. >> so i'm in it. i love the sports betting. >> the matches >> you have the three way. 20% profit boost on draft kings. clean sweep on election day for states considering it, wasn't it >> it was. yeah it was actually -- there were six ballot measures in different states across the u.s. three were forex panned forms of brick and mortar three for legalization of sports betting and a clean sweep is what happened.

what was really interesting, joe, not just that it was a clean sweep but you look at the voting differential of those that voted in favor of versus against the legalization of sports betting as an example like in maryland, over 65% of the vote came out to be yes. i think what you're going to find is many states across the country that have not already legalized or considered legalization of sports betting and online casino, you're going to see this differential in terms of the votes that happened in november and other states are going to take a look at that and say, wow, maybe something that we thought to go wasn't widely accepted, it is widely accepted. >> right. >> it's a very acceptable form of entertainment people love doing it and it's a big tax opportunity you might not have. >> if we're legalizing shrooms, we should do gaming, don't you think? mack disagrees you couldn't believe it. how psyched were you i feel like johnny carson with

doc. hey, barstool, that's a whole new area for you you have that application and you're opening it up in some brick and mortar places too. that's just -- i don't know what that adds to your multiple, but that's going great >> yeah. we're in the first inning, joe we've launched our barstool sportsbook app in the state of pennsylvania with our partners, dave portnoy, big cat, dan kats and the rest of the team we're off to a great start in pennsylvania as you mentioned, last week we also opened our first retail barstool sportsbook at our property outside of denver, colorado, we have three more retail barstool sportsbooks open between now and january and another four in 2021 you should see the barstool sports app across 2021 we have a lot going. >> jay, thanks can you confirm this

parlays don't build bank rolls, they build sportsbooks i can confirm that >> sounds like you've got a winner going, parlay. >> i saw adam sandler win a huge one, then he got shot. thank you, jay appreciate it. we'll be back. >> thanks, joe ok, just keep coloring there...

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welcome back to "squawk box. stock futures pointing to the gains at the open. today that finally includes the nasdaq we'll bring you details of a huge market call this morning from goldman sachs a bitter sweet day for chinese tech giants. over shadowed by fears of harsh new regulations. and a rare interview with lyft co-founder john zimmer. the final hour of "squawk box" begins right now.

good morning and welcome back welcome back to "squawk box" here on cnbc i'm joe kernen and andrew quison and becky quick. the dow is up 192, the nasdaq up nicely today unlike maybe some other days where the dow was doing better than the nasdaq nasdaq up 140 points the s&p is indicated up 29 as we've been saying all day long the bond market is closed in observance, rightly so, of veterans day becky? >> thanks, joe let's get you caught up on some of the stories that investors are going to be talking about today. first up, apple is introducing new macbook laptops. sources say that airbnb is delaying its filing for its

initial public offering. the company wants to avoid the event being over shadowed by fallout from the u.s. presidential election. that filing could come next week and more coronavirus vaccine news russia's national research center for epidemiology says that its sputnik vaccine had an efficacy rate of 92% that figure is based on interim data from a double blind placebo phase 3 trial involving 40,000 volunteers andrew. two big stories that we are watching very closely this morning. julia boorstin is standing by with a new warning in beijing to tell us why shares of some of the best new asia tech share companies eunice >> reporter: thanks so much, andrew singles day is wrapping up in three hours' time. live streamers here are encouraging chinese consumers to get their orders in now, but

with all this excitement it's really being over shadowed by what appears to be the chinese government's attempt to try to tame china's big tech firms. yesterday the antitrust regulators had announced a new draft proposal which appears to be aimed at trying to define monopolies stick practices in the internet industry. these practices, some of them, are frankly what tactics that tech companies do quite often. for example, forcing vendors to choose to have exclusive arrangements with them as opposed to their rivals. so all of that is making investors quite nervous and there's another interesting provision that has been unnerving people in the tech industry as well as investors about the regulations and that is they also cover the vie or variable interest entity structure. this is a structure that was

pioneered by cena.com years and years ago. it's a way for chinese firms to be able to create an off shore entity so that international investors and u.s. investors can be able to get a piece of this chinese company. so it looks as though the government is saying that there might need to be extra approvals or licenses for these structures so all of that is casting a lot of uncertainty over the whole industry in fact, jpmorgan said that they believe that this is going to be -- to further dampen the online economy and morgan stanley had put out a research note saying they believe this is going to be a negative for some of the major internet companies. they did say there is still some competition that has naturally been growing in the industry so it might not have as big an effect they see it with ecommerce as well as food delivery. >> eunice, what do you think is

driving this clearly we saw the chinese government get involved with this financial situation before that ipo becoming much more aggressive i should tell you a number of silicon valley executives even during the last hour have been emailing me about it in large part because as we've discussed silicon valley tech giants have said to regulators in washington, look over there at how big these guys are we need to be able to compete. if the chinese government goes after them, it actually makes it more likely, frankly, that washington could become more aggressive with u.s. tech companies. >> yeah. you know, it's really unclear at this point there's been tons of speculation that maybe save for in the case of ant that the government really was concerned about some of these -- what they perceive as shadowy loans or where there could be a systemic failure and that's something the government would not want to see. on the other hand, just based on

the way that the xi jinping administration operates, even though there's been a lot of lip service to the importance of markets and the markets playing a big role in the economy, clearly over the past several years his administration has inserted the state in a lot of these industries so there's been a lot of questions and because it's just so vague it makes investors as well as people in the tech community very nervous >> all right, eunice thanks let's get over to julia boorstin now for another subject here, movie theater stocks they bounced on monday's positive vaccine news, coronavirus vaccine news still looks like the film industry has a rough winter ahead of it, julia are you going to update us on the next bond film in light of sean connery and everything else let us know what you find out. >> well, that bond film has already been delayed until next

year, joe. that vaccine news is not going to really take impact for a while. it will be a long, empty winter for movie theaters and a tough one for studios' bottom lines with no major wide releases until christmas when warner brothers is set to release wonder woman 1984 and eric campbler warns that could be delayed if they don't open before then. they're all down dramatically down between 50 and 80%. this week the national association of theater owners calling on congress to pass relief legislation saying, quote, movie theaters simply will not survive the economic impact of the pandemic now the movie studios are also reckoning with the fact that nine months of movies have been delayed from this year to next dampening demand for production and as more are sold direct to consumer, we are seeing layoffs

acro across the industry. warner media is laying off 1,000 employees. lionsgate is laying off 60 and mgm and disney, each of those laying off 50 employees. on the flip side of those theatrical struggles, streaming revenue should be a bright spot and that's coming up tomorrow afternoon. guys >> thanks, julia by the way, you expect movie theaters will close in the meantime, some permanently >> i think some of the smaller mom and pop theaters, the stand alone theaters, those could certainly close. i think there is a very good chance that we'll see some restructurings among those chains there certainly going to be a tough time for those companies we'll see if they get that help from congress that they're asking for >> i mean, the megaplexes, it's depressing they have 40 theaters and the

parking lot the size of a couple of football fields you drive by and it looks like the apocalypse it's depressing. >> go ahead. >> thanks, joe >> no, go ahead. what were you going to say >> some of them are using those big, giant parking lots, you mentioned, as drive-ins because everyone is trying to adapt. they do need the movie releases. that's what they're waiting on, new films to come out. >> you know what we have, julia, we have outdoor spinning classes set up in all thesso close people head to butt. it's gross it's gross gross. anyway -- but we -- it's gross, becky! it's gross >> you wouldn't make a very good sled dog. >> no, better outside at least inside i can't even imagine. >> yes >> anyway. see you, julia. >> deodorant. >> deodorant >> let's get a check --

>> oh, sure, they hopefully do. >> rocket companies, the mortgage and financial services company beat wall street's expectations on the top and bottom lines for the latest quarter. this is a big number revenue came in with a net income of $4.6 billion they've been helped out by the low interest rates that have really pushed a lot of people to refinance. quicken loans also announced a $1 billion share repurchase plan check out that stock right now down by almost 2%. when we come back, a rare interview with the co-founder of lyft on what a working coronavirus vaccine would mean for the hard-hit ride hailing business plus, a huge market call you won't believe how high the s&p 500 is going next year we'll talk about that. as we head to a break, we want to draw your attention to the small cap russell 2000 index it's had six positive trading sessions and it's up 13% over

that period. that is a big move for a major average. it's up another 1.9% this morning.

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welcome back we went to some effort to bring you a shot of this because it's so cool. happening right now as you can see it live. that's right outside where we are in times square. dozens of lost corvettes are being raffled. why? to raise money to benefit stand for the troops classic cars, believe it or not, this is bizarre, part of a private collection they were discovered collecting dust in parking garages across new york city. i don't know what happened to the owner, whether it was a single owner or others they were carefully restored raffl tickets cost $3. stand for the troops is an organization that is a very worthy organization. funds treatment for veterans traumatic brain injuries and post traumatic stress disorder becky -- >> how much are we bidding, joe? >> andrew, are we going to bid >> vets. >> get it, corvettes

>> veterans day. >> how much do you think we should be bidding? we should get involved in this >> how do we do it though? what do you get for the $3 it's a raffel, a bidding contest. >> it's not a bidding contest. >> that would be a better way of doing it >> let's buy a lot of tickets then. >> buy a lot of tickets for the whole squawk team? can we do that after the show we'll do that. >> we mean you. >> no electric -- >> i'll do it. i'll put up the dough. >> not hybrids or electrics, andrew all that gas v-8s. >> to support the veterans, i'll take it. >> really? >> okay. for that reason. all right. they are cool though, aren't they the chevy vette. the new ones, every year, every couple of years they seem to be able to stay current in terms of their style. anyway, beck. >> i want more on the backstory

of whose cars they were? was it multiple owners >> forgot about them >> yeah, right that's a story in itself anyway, it took till saturday for the 2020 election to be called for former vice president joe biden but investors of course are still paying close attention to two senate races in the state of georgia they're both heading for runoffs. joining us right now to talk about these races and a whole lot more is frank lutz he's pollster and political strategist frank, first off, let's just think very closely about this race you've had a lot of predictions on different things. you've been very right on some of the predictions you've made since election day what do you think happens in georgia in the runoff? what are the odds that either of these seats go to the democrats? >> you have to give it a 50-50 because georgia's now a genuine swing state that donald trump is going to lose in georgia the two republicans ran ahead of

their democratic opponents, but there's a little bit of chaos. the republican candidates actually called the secretary of state, another republican, to resign because they felt that there wasn't enough activity in challenging the votes, in challenging the voters the accuracy of the results. and you don't ever, ever want chaos in your political party two months before what i believe is the most important senate elections in modern times. make no mistake, the consequences of this on whether they roll back trump's tax cuts, on whether they have a green new deal, on whether they get rid of the filibuster, whether they add two states to the union, on whether they -- on everything. if the democrats can win both of these seats back, then they will be in control of the senate and the president will have an agenda that won't be able to be challenged by congress but if the republicans win even one of these seats, then they control the majority and they

will determine exactly what of the president's agenda goes forward. >> frank, you already heard. did you watch joe manchin? you don't believe him? >> i do believe him. i do believe he's an independent force. i do believe he is a reasonable senator right dead center in america and he represents west virginia very well. >> he won't go for certain things that you just described off the board. you're telling me you believe the ossoff purdue race is 50-50? i would take issue with that we'll see what happens i wouldn't be doing any polling and giving me the results. >> joe, it was before that joe, hold on two weeks before the election you had me on the show and i did an entire prognostication two weeks before the election of what was going to happen and i know you've got that tape and i'm begging you guys in the control room to roll it because joe is challenging my

credibility here come on guys in the control room, roll that tape. >> i'm not challenging your credibility. i'm challenging most pollsters -- we saw what happened with pollsters, my only point, we don't need to roll your tape, frank, all i'm saying -- what are you saying right now that the purdue ossoff race is tracking as? once georgia realizes that they're the -- sort of the focal point for all of this stuff that you just described, you don't think that maybe it could be a different result without the independent running? i don't know about kelly loeffler, but you don't think it could be a different result for purdue and ossoff? you know everybody is going to pull out all the stops, republicans and democrats down there? >> there will be more money spent than any other senate race in modern history, number one. number two, there is a bit of chaos within the republican machine. you have the two senate candidates challenging the efficacy of the secretary of state.

number three, we don't know what role donald trump is going to play in that election. we don't know if he's going to take his marbles and go home or whether he's going to be active. number four, we do know the role that joe biden and his allies are going to play in that campaign and they will do everything they absolutely can they're going to flood the state. number five, there will be disappointments and election withdrawal from republicans because they were unsuccessful in the presidential election and number six, runoffs like this have very different turnouts than the actual vote on election day -- on the original election day. for these six reasons we cannot predict right now what's going to happen so you have to call it 50-50. >> hey, frank, just to kind of put it in a finer point, even if you didn't see manchin going along with it, it depends who runs each of these different committees in the senate, which is pretty important, too who's going to run banking

who's going to run finance which depends what's going to happen "the wall street journal" has an opinion piece ron weiden would be running finance if the democrats take control he's not only in favor of the $4 trillion tax plan but in favor of things like taxing unrealized gains or capital gains taxes on things that have come through and there's some pretty complex ideas depending on who's running it and who's -- who's running what bills actually make it to the floor. >> and elizabeth warren becomes a committee chairman and bernie sanders becomes a committee chairman. >> or treasury secretary. >> republican governor in massachusetts and i don't think that the democrats want to give up that seat to put her in as treasury secretary i actually think that that's prognosticating -- you can play it back again. i don't think that's going to happen with governor baker, a republican in massachusetts. that said, you're correct. these committee chair men are

not mainstream a lot of these committee chair men are on the progressive wing of the party and they would be more than happy further what joe biden has said about any of these policies don't forget the impact on treasury policy, energy policy, department of labor. we could have a significant rise in unionization and union efforts in these various companies. you've got amazon, you've got walmart, you've got some big corporations out there that are watching what happens in the senate and you've got small business owners that are afraid that under a democratic senate you get more regulations, you get more taxation, you get more litigation the stakes have never been so high and everybody watching is going to be impacted by what happens on january 5th >> hey, frank, the market's been up almost every day, but i think that's in large part because of this conventional wisdom that it will be divided government, that you will see republicans maintain control of the senate it gets a little interesting as

you run back through some of those things there's also this line of thinking that joe biden is really more of a moderate who would like to cut deals and use the republicans as a reason you wouldn't do some of the things that progressives have been pushing him to do at this point but the progressives do have a very large part in that party. they worked hard to get biden elected. what do you really think happens in terms of what he will owe that part of the party >> well, the amazing thing about this is that joe biden has to choose his cabinet, most of it before the 5th of january. so we're going to know whether he has picked people around him who are centrists or picked people around him who come from the progressive wing and the cabinet he has said is going to be a reflection not just of america but a reflection of what he wants to do so this puts him in a bind because georgia is going to be able to either validate or challenge what joe biden has done in terms of the people surrounding him. and that's going to have a

significant play i also want to remind viewers that when you talk about the money that's gone into this race, the democrats outspent the republicans on virtually every single senate race and yet republicans managed to keep the majority that out spend was not by 5, 10, 20%, in many races it was 50%, even 100% more than what the republicans spent. this is significant, that there will be more cash from more donors in the corporate community for the democrats as well as the republicans. you have to pay close attention to who's giving and what they're trying to get for that gift. >> hey, frank. when you think about georgia, i wanted to read you a tweet from nate silver, someone -- i don't know if you consider him a competitor, peer, colleague in your industry. this goes to how the gop is reacting to president trump's claims about election rigging at

the moment it's hard to tell whether the gop leaders are being strategic or cynical or just wholly disconnected from reality. in some ways i'm wondering if it's possible to distinguish between the two. can you distinguish between the two? what do you think is driving it? especially when you consider georgia in the mix >> that -- that's -- the president does not want to give up he does not want to give in and 70% of his supporters back him on this. on election day 85% of trump voters thought that donald trump was going to win 70% today think that the election was in some way unfair. we know that the votes have been counted. we know that there may be some examples of fraud, but not enough not nearly enough to overturn this how the president behaves, how the republicans in congress behaves, how the democrats behave in all of this is going to determine something that is equally as important joe biden can change the

regulatory environment through a congressional order but only the senate and the house can actually change legislation. with kevin mccarthy -- >> how does that -- how does that play though in the runoff in georgia meaning republican voters support what trump's doing and, therefore, want their candidates from georgia to be supporting what trump's doing or not? >> the grassroots republicans support what donald trump is doing. by the 5th of january it's going to be a very different environment. we have to put ourselves in what's going to happen seven weeks from now they're going to be preparing for biden's inauguration and i'd say republicans are nervous today that their own grassroots support will be disappointed, feeling rejected and so less likely to participate in that election the biden supporters are going to be more energized because they know with this vote they can make a significant difference on what happens in the long term. by the way, andrew, whatever you

spend on behalf of cnbc, i will match it i just -- just make sure i get my tickets for what you're doing for the veterans maybe joe doesn't. he's not making enough money at cnbc -- >> how many conservative suburban types in georgia and around the country voted against donald trump and he won't be on the ballot conservative republicans that voted against donald trump for whatever reason? that's a long, long list he's not on the ballot this time, it's purdue. maybe purdue's tied or loeffler. maybe they're tied but i think -- we'll see this one i'd almost bet on with you, frank you wanted me to bet on the presidential election, which we would never do, but this one i think you're -- we'll see. we'll see. but georgia -- georgia, four years ago someone went down to georgia because they thought it was a swing state. it was not

we'll see this time. it was, obviously. we'll see. >> my job is to point out what could happen my job is to look at this analytically and this is my warning to wall street to pay very close attention to the turnout. >> all pollsters would say that. maybe they need to go back and rethink what their job is. anyway, thanks, frank. coming up. what's coming? co-founder of lyft is going to join us live lots to talk about the company's latest results monday's share surge thanks to pfizer's vaccine news and ride hailing victory at the ballot box. stay tuned, you're watching "squawk box" on cnbc

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coming up when we return, we're going to tell you about a massive market callout from goldman sachs this morning next, a rare interview with lyft president and co-founder john zimmer don't go anywhere, we've got all of it when "squawk" returns after this for over 30 years,

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welcome back to "squawk box" this morning the coronavirus pandemic taking a big toll on the ride sharing industry in its third quarter report lyft saying it had 12.5 million riders big improvement from the second quarter but still much lower than last year's total of 22 million. shares popping as much as 6% by news that lyft is looking at food delivery following monday's 26% gain that was the day we heard pfizer's vaccine candidate could be more than 90% effective joining us is lyft's co-founder and president john zimmer. john, it's great to see you. the last time we saw each other in person was ipo day. it feels like a million years

ago at this point. let's talk about where things are right now with the business. clearly the market is giving you credit or hoping to give you credit for what the world may look like 12 months from now, but there's a lot of wood to chop between now and then in terms of getting more riders in the vehicles and also trying to figure out how potentially to diversify this i know you've been talking about food delivery. your biggest competitor, uber has had that advantage during this period, but you want to approach it differently. >> yeah. absolutely we had a great quarter 47% revenue growth quarter over quarter, so we're proud of that. ride to recovery is happening. the company is a great recovery stock because it's tied to mobility and transportation and economic activity. and on delivery, it's a broader concept than food. food was just an example the basic premise is there's a

large b2b opportunity to use the platform we have, technology we have and partner with the drivers we have to help retailers and all sorts of businesses deliver all types of packages on a last-mile basis. >> can we talk about that last-mile basis? i know people have talked about this idea before but without the quote, unquote, front end, and your competitor has ubereats it's a front end commission oriented business you go to one place, buy different things you're talking about effectively providing the last mile service but it means all the other retailers effectively have to have their own front end what do you think the difference is in distinction in how successful that can be >> it's still early stages just started talking about it. basically retailers want the organic traffic. they want to build the customer loyalty on their platform and they don't want to pay a commission to another party to

create the marketplace and that's where we fit in and i think that's where our approach would be quite differentiated. >> but -- so you don't believe though that ultimately people want to go to one shopping mall and hunt around and effectively find the store within the store? they want to go independent as a consumer choice? >> i think when companies, retailers start offering the best prices on their own site, that will drive traffic organically. look, there's going to be these marketplaces, these platforms. the world does not need another one, another consumer platform for delivery we are focused on personal transportation that said, since we have the technology, we have a phenomenal driver base that is looking for earning opportunities, it's something else that we will look at and stay tuned for more >> john, speak to us about path to profitability at this point what has to happen >> sure.

yeah we reiterated that we are on track and we plan to hit that on an adjusted ebitda basis by the end of next year even with slower ride growth than expected we've pulled out $300 million on an annual run rate by the end of this year we'll have pulled out $300 million of ongoing expenses which allows us to hit that target, again, with much lower ride volume >> when you think about a potential vaccine and your drivers, what's that time line look like for you? and also do you imagine potentially trying to help drivers financially or otherwise in terms of getting access to that vaccine >> you know, it's anyone's prediction on exactly when the vaccine will be distributed in volume, but we're optimistic for the first half of next year at some point to have that

availability we would love to help the driver community get access to that but we'll just have to wait for more details about a vaccine. >> what do you imagine pricing is going to look like in the future i ask just because i have to imagine that during this period there's going to be a bit of a consolidation in terms of market share that both you and uber may ultimately gain in the mobility space. you keep hearing about small businesses including local taxi firms, car services and the like, dispatch operations really struggling during this period. >> i mean, we've -- different than uber, we've taken a portfolio approach to transportation we have bikes, ride shares as you mentioned. ride share's been hit, as everyone knows, but seeing that quarter-over-quarter recovery. we like that portfolio approach. citi bike is a program we own and operate. that has been up year over year. i think by having a broader portfolio of transportation

options we can weather this tough situation. >> again though in terms of -- long term in terms of pricing, obviously there's been a price war that's been happening in a lot of different cities over the years. do you imagine prices ultimately go up? that's where the margin is to make this all happen >> there's been significant rationalization over the last one to two years from the price wars that existed previously i think that rationalization will continue. you know, not going to predict exactly where prices go if they move from here, but we're going to have a differentiated set of products even within ride share. we've added something called wait and save. if you're more patient, you can wait a few extra minutes, it allows us to better optimize the marketplace we can offer savings to customers. >> your biggest competitor, uber, announced a service just yesterday, i believe, that effectively puts them in direct competition with the old dispatch model, the idea that you can book out a car up to 30

days in advance at a specific time you need to go make an appointment, go to the airport, whatever do you think that's going to have -- by the way, for our corporate audience of business communities that have historically used -- continued to use in certain cases sort of the dispatch services, local black car services, what do you think ultimately happens to them do you plan to come up with a similar product? >> yeah. i mean, i believe we were the first of the two companies to have scheduled rides so i think this is just a repackaging of something that already existed so we have scheduled rides you can do it in the app today across the country in all of the modes. that's nothing new for us. that's a great feature going to the airport, planning for business ultimately i do think it is an opportunity for us to work with existing fleets to bring them more work if that's something that's interesting to them

>> before we let you go, wanted to talk about prop 22 and what you think that ultimately says about where the country is we've been talking about politics, as you know, since the election and trying to understand what's happened one of the very interesting things is california, of course, a relatively liberal and progressive state deciding against the idea of turning these contractors into employees, something that the unions and so many others in the democratic party have been pushing. what's the lesson, the take away in your mind >> i think both parties are looking at their base and trying to make sure they understand who they are and what they want and to get past kind of rhetoric and what we did here was we put forward a common sense proposal that was favored by drivers. drivers favor 6 to 1 to be independent contractors that employees have the flexibility that they want but to add benefits for us it's a big turning point. the vote total is still

increasing and is getting close to 59%, closer to 60% support in, as you mention, the progressive state. so you can have new solutions that are compromises and i think that the result demonstrates that >> okay. john zimmer, great to see you. hope we can do it in person. we can go film -- remember, we filmed out of the back of the car without masks on unbelievable >> look forward to it. >> nice to see you, you bet. >> you too. >> becky thanks, andrew when we come back, that massive market call from goldman sachs that we've been telling you about this morning, we'll bring you all the details right tethafr is break stay tuned "squawk box" will be right back.

welcome back to "squawk box. we are learning more about a stock sale by pfizer ceo albert borleau on monday. the same day they announced the early vaccine trial results. we've seen certain circumstances like this before meg tirrell joins us on the "squawk" news line meg? >> reporter: good morning, andrew pfizer reported the 90 pers percent he ha% efficacy number. we're learning the ceo sold $5.6 million worth of stock, 132,500 shares on november 9th that was pursuant to one of the

pendy 5 plans, a preplanned sale that was adopted august 19th, 2020 now i reached out to pfizer on this and they did confirm that this was part of that plan they note that under sec rules major shareholders and insiders, these plans allow them to trade a predetermined number of shares at a predetermined time. through that stock plan administrator he authorized a sale of these on august 19th provided the stock was at least at a certain price he still owns 81,812 shares. this was a large chunk 61.8% sold and so, you know, we've seen this with companies like moderna as well top executives there under these preplanned sales these things raise eyebrows and lead to a debate about these

plans. it's not insider trading these plans were put in place and this was sold after the news about the vaccine based on the stock being at a certain price of course, folks always pay close attention to these things, guys >> hey, meg, did the company know on august 19th when this stock sale was put in place that this would be -- that monday would be the day that they'd be releasing the results? >> reporter: no. so they started their phase 3 trial at the end of july so the plan was put in place after they started the phase 3 trial knowing that they would have results in the fall. the plan actually was the end of october. that was when pfizer's ceo was expecting to have data on whether the vaccine would work they did know it was going to come in the fall they didn't know which day. >> meg, i think of moderna and how that happened and moderna was, i don't know, multiples higher than it had been in the last year or ever historically

that was a great time. this is a good price to get for pfizer at 38, but it's the highest it's been in a year. it was almost 50 back in 2018. so we're talking about 38. so it is an advantageous price given where it's been in the last six months, as you can see, or the last year but certainly not -- it's not like a moderna where you go from 5 bucks to 80 and dump all your stock at 80. so i'm not -- i don't know i don't know what goes -- these -- as jim has pointed out, cramer's pointed out, you can ask for a lapse in these plans if you are worried about the way it's going to look, you can say, no, i don't want to do it and, you know, obviously i think an option to mr. borla and the other executive at pfizer. you can do that. but is it a predetermined amount and date going all the way back

to when the other executive was actually a 2019 is whether she set is up. i'm not sure you can tie that -- that was before the pandemic, is that actually on that monday, it is going to be sold if it is at a certain price, is that the way it works >> i'm not sure that there is even a date involved in the -- in the plan for selling this it does say to trade a predetermined number of shares, predetermined time triggered by the stock hitting a certain price. because the stock moved so much monday, that could have triggered the sale we should also point out, guys, of course, pfizer's ceo did not know that the vaccine was going to work this well or even necessarily work at all. he put the plan in place, after they started the phase three trial, he believed in the vaccine, but if the vaccine had not worked, the stock would have gone down. so, you know, the other argument about, you know, putting the plans in place and deciding not to exercise the plans, moderna has argued that in itself is a

form of controlling the shares, you know, people could argue that, you know, they're keeping their stock. and so it is complicated >> right right. borla didn't know, i think the russians knew before it would be 92%. that's not -- i actually earlier said that the science and -- great scientists that come out of russia. anyway, thank you, meg we'll move on to a very big call from goldman sachs this morning, david costin, the firm's chief u.s. equity strategist, predi predicting the s&p 500 will hit 4300 by the end of next year it starts with this, right at the top is a summary from david costin, a vaccine is a more important development for the economy and the markets than the prospective policies of a biden presidency the much awaited results of the pfizer vaccine is a positive event that will allow society to

gradually normalize during 2021. so then he goes into talking about the election, and those policies, but the first thing he says is that was even more important. do you view it that way, the news from earlier this week? >> i do. i think the vaccine for the virus and control of the pandemic is most important thing. the stock performance. not just over the next year, the next two years from the report, they did talk a lot about this being over a two-year time period i think that timing is a little bit elusive, though, when we will get the vaccine, two of the major assumptions that i would beg to differ is the vaccine will be available and distributed to the u.s. in first half of 2021 i think it is going to take really all the way into the first half of 2022 and that's going to have a big impact and i also think they did not talk very much about whether or not we would get any contribution of fiscal stimulus and i think that's going to be a major determinant in whether -- how quickly we normalize back to

economic activity prepandemic. >> there is some big assumptions here, like i said, there is the assumption that first line will allow society to gradually normalize during 2021, and then costin goes into the elections, we just had elections, have consequences and he says a divide government means little scope for any major legislative changes. he notes that there is a runoff in both senate elections in georgia, but still seems to come down on the side that divided government is more likely than a unified government for lack of a better term. what do you think of that? >> i think that's probably -- that's probably correct. i think the most important thing to market performance will be the january 5th runoff, on everybody's mind, because if in fact the democrats win both seats, there will be ability to create a much larger stimulus package and if it is a split

senate, mitch mcconnell is already sayi ining basically hes not sure fiscal stimulus is necessary in a large fashion, in a federal reserve, still says that's a very important factor and my concern really is even with a large infrastructure package, it takes a while for that to trickle down to the most needed participants. and you do still have counties and local jurisdictions beginning to tighten up restrictions because covid habs increa has been increasing and all of that will tamp down economic activity i think goldman's call say good one, but a little over a two-year time period than the first half of 2020. >> on a price is right, like 4300, like 4299 or 4301, what do you think? >> i tell you what, joe, i'm much more stock specific >> okay. that's a good idea

never say both never say where it is going and when it is going, that's the thing. anyway, thank you, don't give both give one or the other. thank you, eugene, we'll see you. >> thank you >> thank you, jim. over to cnbc headquarters, jim cramer standing by right now jim, what do you think there are so many interesting stories i want to talk to you about today, maybe the goldman call, the pfizer news, and the news out of kwlin china is one of the potential stories we'll be dealing with for some time. it is a significant move and i think it shows the communist party there getting a little uncomfortable with capitalism. >> i'm thinking the same thing what a curious time to be able to do this and what a statement to do it right at the time of an important communist meets capitalism holiday canceling that ipo as david faber has been talking about is rather remarkable. it is almost as if they're

saying we have got to back away from capitalism, just at the time when there may be a peaceful transition at the white house to something that is more diplomat diplomatic unless angry tweeted. i don't get what the communist party is thinking here other than the fact that they just decided capitalism had a big run and now maybe it is time to stop because the capitalists are too powerful so i think there is a lot here, a lot that i do not think is known. but, boy, what an odd time, just when you think that they would say, you know what, we got some representatives of capitalism within our government, and they should meet with biden and work this thing out so really curious, don't get it, versus the cost and roaring '20s piece, david, just -- i know you watch the show, david, the roaring '20s ended badly so i'm not so sure that we should definitely -- i love you, i love costin. i say this say brilliant piece, but i wish they hadn't called it

the roaring '20s it is a positive moment to have a vaccine. >> i agree jim, we'll hear more from you on this story and a whole lot more in a few minutes great to see you by the way, everybody, join us tomorrow, right now, it is time quk t see aertrt"ft a ick break. good wednesday g

welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures are building across the

board here at the open we'll see at the dow, but it may be on pace for the best monthly gain since 1987. goldman with a bullish call on stocks next year in the wake of that recent vaccine news bond markets closed than veterans day road map begins with the covid vaccine optimism fuelling this market rally into a third day. but with u.s. cases continuing to hit records, the fed's eric rosengren says we may be in for a very choppy six months ahead >> plus, china's technology giants the