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 they lost more than $280

billion in market value, just over the last couple of trading days as regulatory concerns mount. and this all comes while e-commerce giant alibaba notches more than 56 billion in its singles day orders and hurry up and wait a little bit longer airbnb looking to delay its ipo until at least next week carl >> jim, let's start with that goldman note that we referenced, that you were talking about with becky a moment ago looking for solid gains into year end and the year after that, the year after that. but it collides with the darkening picture that we're seeing on covid in the u.s. >> well, look, i think that one of the things that david costin is doing and david is an optimist, which served him well during this period, is really identifying the principle weakness we had, if you go back to friday. there was a belief that the only companies that could really do well were the faang and faang derivatives because we were not going to see any end to the

pandemic the idea that we got a vaccine, it really was a november surprise and 90% efficacy vaccine was not in the cards so i think that david's piece is very right with the exception of the titles, i don't like the roaring '20s redux because the roaring '20s ended so badly. what i do like about it is while the election is certainly important, what he's saying is we got a rebounding in profits, we have a falling risk premium in equities, all which i agree, suggests using a barbell, but i just think he's dead right, that you -- with a covid-19 virus, you can get away from just big tech and i see a lot of industrials, david, where people are just frantically raising numbers and that has to do with the fact that maybe in 2021 we will have this under control >> well, we have gotten some optimistic commentary about it alex azar yesterday, i believe, fauci also saying some things that indicate perhaps to the point you were making earlier in

the week that it could be as soon as the spring that we really start to see wide vaccinations, which would be the great thing to think that if you were heading into the summer, and you could get back to normalcy then, because many people still believed it would be probably not until next fall. >> right >> so that's all a good thing. we continue to see the sort of dichotomy in the market, some of the stay at home plays losing some ground. as you point out, the industrials, we also talked about the equal weighted s&p and how that's outperformed of late. but, i come back to this question, do you really see growth being abandoned for the longer term here, is value as it is often been just a very brief play that will be sold when, don't know, when the market changes its mind, which it seems to do every time. >> growth doesn't go out of style, the growth companies are the ones that adapt very quickly. when you have a company, let's say you have alphabet, okay, alphabet -- is it static no, it is an advertising derived

site that needs travel advertising, the biggest and the best suddenly you get that, does fact get hurt here? no, they're having a tremendous number of ads that are direct and inexpensive to be able to promote businesses i find these companies just keep coming up with new ideas, but, david, of all things we have to watch data dog >> data dog. >> data dog. >> okay. not underdog data dog >> no. not underdog >> i used to like that show. >> true, true. huckleberry hound too. >> i did. >> data dog is a group where revenue grew, but, david, it sells at 40 times sales. okay >> okay. >> now you have to watch that kind of stock, that's what's front and center of what is being sold and, carl, i think people are sick and tired of paying a huge amount of -- on sales when they have the opportunity to pay a

not great amount on earnings watch data dog as being the tell of this tape >> yeah, jim, it goes back to what we were seeing a couple of weeks ago, earnings not multiples that gets us higher. i want to ask you about what you tell investors who heard the vaccine news, figured the coast was clear, and now they're looking at chase card spending beginning to roll over we have a graphic of that. merkel on the tape saying the second wave may be more severe than the first, like it was in 1918 rosengren, which we mentioned a moment ago, talking about the next six months, take a quick listen to that >> while it certainly is good news, and my own forecast for the second half of the year would assume that it would be widely enough distributed at that point, that we should have very robust growth given the fiscal and monetary policy we have right now, i think the next six months are going to continue to be pretty choppy.

>> so is it possible people who bought or rotated figuring things were okay now get slapped in the face. >> i think if you bought the banks you do, you need 1 1/4 on the 20 the 20, 1 1/2. you need 2 on the -- let me get these down 2 on the 20-year, okay, in order to make it so they make a little money. david, you know they can't make any money at 1 1/2. >> net interest margins pressured. they make money, but they're not going to be -- >> 20% move. i think that move gets repealed. and, carl, what i think we really have to watch is that every time that you start getting nervous here, we get hit by something positive. for instance, we have not heard from merck yet we haven't heard from merck. maybe merck has something that makes it so we can have a decline in cases. >> well, i've talked about it a lot. i know that one particular

antiviral small molecule fairly well, having watched it since the early days of the pandemic in terms of its development, we'll see, they're in phase three. but to -- listen, when it comes to covid now, the vaccine news is great but the trends are horrible. you want good news, good news is even though hospitalizations are going like this, the people are not dying at the rate thankfully they were when they go into the hospital >> what it says, carl, is that we're going to go back and simon properties didn't give me any comfort here we go back to the essential stores that do incredibly well, that are prepared to handle this next wave, while we wait for good news from j & j and merck when you get too defensive, alex gorsky says not only is ours 9 0%, but we're more readily available. >> and don't forget about moderna. we can assume we'll hopefully have a similar kind of effectiveness to the pfizer vaccine. >> they're out today, guys

they're out today saying they expect first interim data sometime this month and maybe some of those other alternative candidates, jim, don't have the logistical distribution challenges that pfizer has. >> i had a conversation yesterday with darius adamchek from honeywell, they have a certain kind of plastic they created that makes it so the vials don't break. he gave an -- he intimated there could be tremendous success in terms of the number of vials, billions of vials, that maybe make it so the fall prediction is a little even maybe too pessimistic. >> that would be amazing thing >> how about the fact that no one -- >> congregate by may or june of this year in large quantities. >> david, here is something, why isn't there more of a flight to quality in bonds, given the fact that -- in one talked about this, the president's intransigence would seem to

indicate that at what point does he feel without anyone in his party breaking the news to him that he has to leave the white house. >> carl, you want to take a guess at that. january 19th i don't know january 20th, 11:59? >> well, jim, jim, you did tweet this morning about an email you got from a wise person who has seen a lot who was raising the idea that this -- this friction in the transition, you know, could turn into something more nefarious. market, though, they listen to pompeo yesterday and decided that was a quip. >> i think that -- i'm not seeing any sign that the president is paying attention to anything that is going on. we had the vice president -- >> seems to be paying attention to the department of defense and doesn't like -- >> he's the head of the department of defense. >> and doing other appointments as well and firing, other people being fired. >> who goes in and tells them --

>> eamon javers discussed it as well, the cia, the fbi, we'll see if that happens. it is highly unusual -- >> how many divisions does justice roberts have to get him out? >> i don't know. >> that's the thing i think no one is paying any attention to how about the idea that the president just says, you know what, the election was illegitimate, i'm not going anywhere are we prepared as a democracy to be able to handle a president who says i'm not going anywhere? just raise the question because it was raised to me by a billionaire this morning who said, why aren't you focused on the fact that he may not go anywhere. >> by certainly much sooner than the 20th of january we're going to have the official outcomes and all of the states, which clearly indicate that president elect biden won. all the court challenges will have conceivably played out by then >> what if everything is illegitimate in the president's eyes. >> then he's removed.

>> by who? marshal sam girouard. >> the secret service, theoretically, to david's point, jim, if he tries to get some state legislatures to reappoint electors who favor him, we should be knowing that really by the time certifications roll in before thanksgiving. >> exactly and i think that's going to be a way to be able to say the election was illegitimate. >> do you really think that could happen >> i just read the president's tweets, i don't get any sense at all that he thinks the election was legitimate do you think -- does senator mitch mcconnell, he said the election -- >> he's not weighed in on one way or the other at this point he said that all legal challenges should be able to follow through and he has a right to those, which is true, he has not yet said the president has lost >> why isn't there more of a -- is anyone seeing anything that indicates the president has any thoughts of leaving the white

house? honestly, guys, i mean -- >> is your point -- >> does he seem to be ready? to me, i'm waiting for a december surprise for anybody who stands up to the president >> is your point, jim that the fact that yields and markets in general have not reacted violently to these tweets mean that his tweets are increasingly irrelevant >> that's -- yeah, i mean, they either are irrelevant or we're all just fools >> well, the process continues to move forward. we heard from president elect biden yesterday, continuing with his transition, he's not getting a look at daily intelligence briefings, he doesn't seem particularly bothered by that. he's not even bothered by the fact that the gsa has not released the funds yet they have money to do what they need to do, they continue to move forward with the transition, regardless of whether the president is interested in transitioning. >> the president is a student of entertainment, he's watched the house of cards, how about the fourth estate. he's got a net worth that backs

him up in a junta like style i'm just saying i would -- i think interest rates are -- need to be reflect a little more flight to quality, given the fact that -- i read the president's tweets to me, he's not tweeting as if he's going anywhere. >> no, but business groups and ceos and foreign leaders and even a small but rising number of gop senators are saying exactly. >> that's what you need to hear in order to be able to make it is that i think there is less fear in the markets. i'm not talking about sota vocce fear. >> understood. >> i'm not kidding you're making fun of me? who believed in the pandemic when you were busy -- >> here we go again with that. i always believed in it. unfortunately it was worse than i thought it would be. >> oh, really? >> take us to commercial, carl just go. go to the darn commercial. >> futures are up as wmae ke

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on the network rated #1 in customer satisfaction. it's your wireless. your rules. only with xfinity mobile. we're keeping a close eye on shares of giant chinese internet companies alibaba, the one best known to our viewers it had been a beneficiary of this period, in part because of the strength of the chinese consumer, the fact that they actually came out of the covid

pandemic at least, much more quickly than we have, and certainly other western nations. and just because of the growth of the company but the stock has been getting hit lately, we're keeping an eye on it today, got hit badly yesterday as well, jim, as you know, about 10:30 i mentioned -- 10:50 i mentioned about chinese regulations. there was an opportunity then and during the course of the day for it to be sold and it has been we're watching tencent and jd. we're trying to learn about what the new opinions on antitrust regulations being sought by s samer will mean for the likes of these companies. there is some of the draft antitrust rules. price discrimination based on data, bundling of sales, restricting sellers to one platform and they will seek public comment until november 30th. if you needed any evidence of the influence of the chinese government on so many companies and particularly alibaba, you've

gotten it over the last week the ant financial ipo postponed indefinitely, we'll see if that comes back, would have been the largest ipo of all time, a change in potential regulations over parts of their business, had them shelf it, after jack ma, of course, the company's founder, said some things that perhaps may have run -- put him in a bad place with regulators, jim. and then this comes out yesterday morning, our time, and we're watching these stocks get hit again. >> alibaba is up dramatically from where it was at 4:00 a.m. i would say this, this reminds me of the capitalist rotors in the prc, they were slapped down. there was an opening of china and go back. is it possible that jack ma is perceived to be more powerful than the government wants any one person to be >> he is incredibly wealthy, he does have an incredible following. that's -- i don't know they won't allow it. they won't allow it. and, you know, but -- they have

to maintain control, they do, they slapped him down, they showed what they can do. >> but let's -- >> what europe is saying about amazon, it is like they borrowed the copy of bill of particular in china against their own people >> they're worried about monopolistic practices of some giants and the same way we are. >> but the difference is that they're communists if they wanted to, they could put jack ma in prison, i guess >> and they don't necessarily need to rely on a court of law to agree with them and make the argument that gets that agreement. that's true. they can move more swiftly. >> don't they have kangaroo courts over there? >> you know better than i would what the state of play is in terms of the state of the law and administration of that law, jim, but, yeah, they can -- listen, they got to the end of the month to get comments. you can see something pretty quickly. we'll see, carl, how much of an impact it will have on the business. >> carl, we got to watch this.

chinese communists don't act like this. they have been steady hands. >> yeah, we don't want to see volatility out of that region too much, guys certainly overshadowed singles day. a moment ofsilence here in a moment at the new york stock exchange in honor of veterans day to honor the men and women who have served in the nation's armed forces hey, dad!

hey, son! no dad, it's a video call. you got to move the phone in front of you like... like it's a mirror, dad. you know? alright, okay. how's that?

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welcome back to "squawk on the street." we're going to take you right to

the opening bell, a few minutes from now let's squeeze in a mad dash. service now. >> yeah, david, this is bill mcdermott's company. this is a company that does some of the absolute best internet service management why do i mention it? i mentioned earlier data dog, i know base of that name people think small cap, $28 billion company. service now is $93 billion company and they are very highly valued barclays bumps the price target from 640 to 650 and just saying, look, even though there is a rebalancing toward value away from growth, service now should be able to buck that now, what that says to me this is the line in the sand. if you see service now be able to stabilize, you can imagine that all the cloud stocks will stabilize. so that is something to watch as the cloud stocks have been under tremendous pressure during the last five days, service now can hold it, then crowd strike will hold it. you'll see salesforce hold it.

workday, that will hold it and even snowflake could hold it i don't know about zoom video, because that's when a lot of people feel is a dave kostin stock, if there is a vaccine, we won't need zoom as much as we do >> that's true although we still -- it is going to be a part of the future in a way that we could not have foreseen eight months ago. >> i read dr. scott gottlieb and i want to zoom my family i don't want -- scott gottlieb is portraying a world between now and when we get the vaccine of you better go -- lockdown >> listen, joe biden says it is go to be a dark winter so far unfortunately there is nothing that indicates otherwise, given the case count. it is staggering >> are we going to go about our lives and say if we get sick, we get sick >> do you take -- everybody has a different perception of risk, you know that, within families

everybody has a different perception of risk we don't all have the same data that we're drawing from to try to make decisions as to how we act. and different states are doing different things so your guess is as good as mine, i don't know >> i just think that dr. gottlieb's guess is better than mine, it is not a guess, he's making me feel like that we all ought to rethink our holiday plans. we should rethink our -- someone talked about going to the movies, to me it sounds like that's a fool's errand to go to the movies. >> yeah, well, carl, there is no doubt that it is going to be a hard period here before we get to a wide vaccinations and we're all trying to figure out what that means lockdowns don't seem to be a part of anybody's prescription at this point in terms of what is going to happen mask wearing perhaps, mandating it in some fashion maybe >> yeah, there is some -- there are some city wide mask mandates now in north dakota where

hospitals are at 100% and allowing some nurses who are positive but asymptomatic to continue to work, believe it or not, because they need the staffing so much guys, let's get to the opening bell at the nyse on this veterans day it is the united states marine corps, the coast guard, the air force, the navy, and the army, honoring veterans day, veterans have our thanks and we hope they have yours brigadier general thomas tickner ringing the bell jim, interesting, we were talking about vaccine logistics, gma's chief of global support was -- sorry, fedex's chief of global support was on "gma" this morning and talked about the nature of moving things around the country quickly and in a controlled environment, in his words, is literally that fedex was created to do in 1973. we do have that. >> well, carol tomei, the ceo of

united parcel, sees him and then raises him by saying they are ready with freezer farms and they are ready for even the biggest of holiday seasons, so all i can tell you is these are two great companies duking it out. i salute u.p.s. for deciding that it is okay to have what is now -- what is no longer considered to be unorthodox look, expressive look. i like these companies that just say, you know what, we are no longer going to hold people to a particular look of what we thought was the norm because that's part and parcel of what we're trying to do in this country right now united parcel. >> yeah. moving united parcel and fedex has been extraordinary. >> as it should be >> you think it will continue? >> yes, because i think that a lot of the businesses from china and china is boomtown. they all have been sitting on the tarmac, no longer on the tarmac, and obviously -- let's

put it this way if dr. gottlieb is right, if we have this dark winter, we're not going to the mall, we're going back to amazon and amazon spending $4 billion on safety, but if you -- look at where the boxes are, when -- i'm sorry, carl, when you shot, look where the boxes are from, they tend to be from these providers. i get a lot of u.p.s. things every day because my wife is trying to build some sort of thing outside, which is a temple to outdoor barbecuing until december 23rd or something i find it is united parcel, and by the way, look at westrop, mad i think that's a buy, my travel trust owns it, fedex is terrific they're ready and they also raised prices so therefore if you want to use them, carl, you're going to have to pay up >> yeah. i wonder, i was thinking about carol who came from home depot, jim and i was trying to think if you've seen a better graduation

of an executive in the c suite from one company to another. >> no, when i had her on -- i'm always incredibly conscious that carol tomei on the conference calls at home depot was probably the most important economist out there. she's a very exacting individual and i think that united parcel needed was someone from the outside who was ready to be able to say here's how it is going to be done and we're going to make money. that was one of the things she emphasized, i thought that was interesting, ceo says, you know what, we are now going to make money. radical. radical approach to this. >> what in the world were they thinking >> before they had a lot of business lines that frankly were done in order to be able to make it so that they were -- >> a company you've been talk about in that way and that company is -- >> what, the company that decided to make money? >> yes, you talked about it many times of late, it has become a favorite of yours with a new ceo. >> ford? >> yes ford >> the family is determined to

have the same record with the company as they have with the football team they own but now they're breaking apart and i'm getting the feeling that the ceo of ford -- we have to ask, maybe a kansas city chiefs fan? right, because this idea of losing for the sake of losing in every country in the world is over with jimmy car car. that's what they call him, jimmy car car. i'm not kidding. there is a fabulous interview with jimmy car car on a video for salesforce, where he admits he literally took a mustang, he built, when he was 14 years old and crossed country with it. that's a car guy the last guy, did he build a steel case and take it across country? was that his job how do they pick a goodsteel - a good cabinet man to run a car company. >> soar rsorry i mentioned ford the cabinet guy, he'll never get over that cabinet guy. >> you see the company itself

may not get over it. that's why they brought a car guy in farley likes cars. >> he's not even a car guy he's a car car guy >> you talk to carl, he doesn't start out by saying i'm worried about the quarter. he says what do you think about the 150? what do you think? he goes, have you looked at it, kicked the tires of the 150? that's my kind of guy. >> all right >> he wants to sell cars and trucks and he wants to sell ones that make money. the bronco has two rows of seats. that's why i'm against it. >> all right there are any number of companies we could also talk about this morning, jim. i think maybe we want to >> i got a couple. >> okay, go for it. >> oh, man. >> give them to us. >> jim, just look at the banks, hanging on to the week's gains jpm, bac, wells is out today saying it is time to get aggressive and i know wapner had a long discussion yesterday about

whether or not the fed allow buybacks, rates go above 1, whether or not we find out later they overallotted for loss provisions that's a pretty powerful trio if you're trying to build a bull case. >> i think that, again, the dark winter scenario does not make me feel like i want to buy the stock of a bank where they have loans and there is no -- remember this stimulus, like, we were thinking you had to have stimulus to make the banks remember the -- >> remember how we were talking about that every day, the prospect of whether or not there would be relief bill. >> what happened to stimulus >> we're a little more focused on the -- on to your point earlier, when the current president is -- if he's going to actually leave office. so -- >> did you say if? >> you said it i don't want to get into this conversation. >> all right i think the idea that -- >> we're not going to have stimulus until we have a new president. >> there is a electoral college issues, give me a break. >> we're not going to talk about the possibility of a -- bill coming out of congress that it

would seem until president elect biden actually takes office. >> i think a lot of people are looking at the charts of the banks and thinking there is a bottom i say if you think there is a bottom, look at morgan stanley, james gorman, very little risk, making a lot of money, and heretical downgrade yesterday because of selling -- the multiple expansion of 8 to 9 is that expensive? i don't think so >> how about this piece in the ft, guys, about bill ackman refreshing a bet against corporate credit, saying that in the near term, we're going to have some issues on highly levered companies. he does add -- i hope we lose money on this edge >> that's positive >> yeah. >> he's got to come on air and screen that one. >> we don't want to allow that >> no. >> no. >> why >> we had a lot written about this. >> how about spacs what happened to talking about spacs? >> you can talk about spacs all

you want they're continuing there was a little bit of a perhaps just too much hitting the market at one time, number of them have not performed as well after they announced the deal but you got, you know, churchill 2 today brought in 400 million bucks for a deal that is under way for its churchill 2 spac but a little bit of pushback on spacs. >> churchill and the man who stood up to the germans and amazing speeches. >> yes >> splendid versus the vile and churchill 2. >> there is churchill 1 through 5, so i don't know which one i like the original churchill. the one whose name is winston. i like that guy, yes these it is unclear what the future holds for multiplan or skill soft and, yeah >> i think it is amazing that he we were talking about spacs and stimulus and now -- >> and talking about tiktok. remember how much time we spent on tiktok. >> every day >> every day

tiktok we got some tiktok news, guys, that actually remember bytedance, the owner of tiktok, never seen the definitive agreement on the whole oracle walmart thing. where do things stand now, you ask, because, hey, we were talking about it every day and then didn't talk about it at all. in the nearly two months since the president gave his preliminary approval to our proposal to satisfy the concerns of he had about the national security concerns, they said they offered detailed solutions to finalize the agreement, but received no substantive feedback on their extensive data privacy and security framework and so with this november 12th deadline imminent and without an extension in hand, they have no choice but to file a petition in court and defend their right ris remember, it was august 14th that trump issued the executive order acquiring bytedance to divest tiktok's u.s. operations, became very much unclear whether that really was going to be the case under the deal that they at least had seemed to reach in

some way, but never have been signed or oracle was buying 12.5%, a big hosting deal for oracle and walmart was going to own 7.5% and have a u.s. comprised board. we'll see. maybe they waited it out like you, though it is unclear, i guess, wait out the trump administration, see what goes on with a biden administration. >> i thought this was such a good deal for walmart when it was announced and walmart, walmart plus is doing very well. a lot of good things happening at walmart and i -- plus the fact if you have a dark winter, walmart will not go dark. but oracle, talk about -- where did oracle go in the discussion? they want the -- >> we haven't really gotten any updates since it has been quite some time, since september 19th. so almost two months from there. carl, i'm keeping an eye on shares of qualcomm, very strong, they did announce a deal, i'm watching closely, dish and their development of a 5g nationwide

network. they do announce this morning dish and qualcomm, both up rather nicely. collaborating on the development of the first oran compliant network. dish keeps coming out with the announcements, they keep plugging along we'll see where they are when they start to actually commercialize service. >> that's a remarkable move and i know that when you're -- if you're on the sky works solutions call, which came out during that terrible week for tech, all you heard were just amazing things from liam griffin about the demand for 5g. extraordinary demand we spent way too much time talking about the mac and not nearly as much time i think talking about what could be happening with apple and 5g. particularly if vice president biden is elected, is moved to the white house. >> he was elected. >> well, you know, there is a lot of problems between here and -- and the actual move out >> got it. >> but i do think that we are not talking nearly enough about 5g and qualcomm is speaking

loudly, corvo is speaking loudly these companies are just -- they can't not meet -- they cannot meet demand. that's a high quality problem, carl, and we have a bunch that cannot meet demand marvel technologies, i know they're buying a company, people don't like it, they can't meet demand, and i just think that this is not a stay at homework at home issue. this is a worldwide demand for phones that are just on fire except for that much -- not that -- except for tmo see the note about temo? >> no. i missed it. >> temo is going to put up some incredible numbers, talking about morgan stanley talking about 5g to drive 3 million to 4 million in postpaid net ads. where are the people coming from >> i don't know. >> what are they doing what are they using now? >> i know. given the lack of turn at all the companies, the ability to add new customers, it is

interesting. >> why do you not talk about t-mo as much as you used to. >> when there is something to talk about, i'm happy to talk about it. >> dish is trying to do something. >> i talk about dish a lot but we don't have great insight into it and reported earnings last week, charlie ergen giving us bits and pieces whether he's bring in a huge capital infusion to help as well continues to be a key question >> gotcha. >> we have to get to you and bob, so i'll send it over to you. >> yeah, yeah, to your point on chips, jim, all those names you mention ready helping to lead the s&p, up 3% plus. on restaurant news, we got chipotle opening their first digital only restaurant. and, of course, on food in general, jim did have beyond meat last night talking about their business, the quarter, the surprise mcplant, takea listen >> i want to be very respectful of what mcdonald's is trying to do i believe in the mcplant platform and what chris is

trying to do there only reason we issued some clarification is because of the misunderstanding that people had around the fact that they maybe developed their own burger, which is not the case. as i said before, we have to be patient on this, i believe our relationship with mcdonald's is very strong, we're involved with mcdonald's on a number of different fronts, we're doing things now to prepare for things in the future that involve mcdonald's i just can't go out and speak for the company which supplier they have chosen or who they will be working with >> wow >> fascinating, jim. >> yeah. there is also other companies like nestle's, world's largest food company, tyson, they want a piece of that business mcdonald's is not really that interested in having the signage say beyond meat in their stores, carl that's just not what they want and i think that -- i think that both sides are playing hard ball i don't know how this one is resolved i really don't >> yeah. historically mcdonald's when

dealing with suppliers has the leverage but we'll see if this time is different. clearly there is some things we don't yet understand about that relationship we did get a new high on the russell 2,000. to bob pisani. bob? >> great week for small caps there. the vaccine rally, let's call it that, continues, 4 to 1 advancing to declining stocks. the new wrinkle is tech is playing a little bit here some of that damage being repaired, look at sectors here, tech o the upside, energy was in the beginning, now it is flat, consumer discretionary a little bit, banks generally are not continuing the rally here. that's a little bit of a disappointment there china stocks you see there, mchi on the downside. megacap tech, okay, fractionally on the upside today. a lot of damage done this week so you see them up here. but, remember amazon is down 7% this week, microsoft still down close to 4% on the week. a lot of damage here so, remember, the trend here, the overall trend with the rally that we have been seeing around

the vaccine, which is small cap generally are outperforming large cap. value is generally outperforming growth and you can see this -- this is not quite as obvious today, but you can see this on the work of the rsp, the equal weight s&p 500, i like to watch that one, and it indicates more advancing than declining stocks overall, the outperformance of cyclical and value, and you can see that as well here as for china tech, strange situation, if you look at hong kong, awful close there, hong kong big cap tech names, but here in the united states, alibaba's basically on the flat side, interesting arbitrage that is going to happen here, but i think what is important here is what the regulators are trying to do here we have got a very small number of dominant companies out there. you sell alibaba, don't sell on

jd.com, can't use wechat and ali pay, maybe the regulators say you should have rules, and you shouldn't be forced to choose. so maybe here they're going to open up more and encourage competition. i'm trying to look at the bright side on this and not simply say this is another effort by the chinese communist party to control everything finally, spend a good part of the day talking to people about what might happen under a democrat administration. with the financial services industry and the s.e.c. gary gensler is in charge of the review group for the biden team. spoke it to a lot of people about this, under biden administration you get aggressive enforcement of regulations and interesting, i said what do you think would be really dominant? i heard a lot about expansion, and standardization of esg, environmental, social and government principles and we're talking about, you know, corporate governance, talking about climate change, we're talking about worker pay, worker

treatment, diversity, healthcare, all of these are social issues that can be sort of pushed into the financial services space, you can hear a lot more about esg, i think, should a biden administration come into power. back to you. >> all right, bob, thank you very much. we'll keep an eye on the sector breakdown here, a little bit of a mixed picture here. materials lower, but energy, consumer discretionary, definitely information technology leading the charge. dow is off the opening high, but up 100 don't go away. ♪ ♪ ♪ ♪ -well, audrey's expecting... -twins! grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust.

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jim mentioned honeywell and in the wake of the pandemic with home delivery booming, the company's seen strong growth in automated warehousing. this is what the ceo told jim yesterday. >> the business is booming right now. and it's not a surprise. obviously the covid era really drove to home delivery, warehouse automation and so on and we have been expanding that business very, very quickly in the u.s., but also, we're growing internationally and we are trying to move it even more

towards the use of robotics. we call it dark warehouse which is minimizing labor in the warehouse and we are making great progress and been a great bookings year for integrated but it is only the againing. i don't think that sort of home delivery, personal delivery, sure, covid accelerated that trend but it is going to continue and our business is leading to charge to enable customers to make that leap. >> jim, it's a long way from avionics and thermostats. >> it is the new honeywell is basically a software and hardware company, also a software as a service company to hire them to figure out software solutions for you this is a very good business and i don't know if they can handle the business they have given

what do we know? it's a warehouse economy and yet warehouses are still run the way they used to be. zebra is other company that's making a fortune on this so i do think both zebra and honeywell are terrific to own. just great, great companies. >> fascinating, jim. the summit yesterday was fantastic. >> zebra >> dow's up 74. >> sorry. >> session high up 175 is the session high we are back in a moment.

take a look at tech today, especially in the chip space skyworks, servicenow, definitely helping the s&p gainers as a lot of the real estate trusts are the losers this morning. "squawk on the street" continues in a moment.

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talk to your financial advisor about investing responsibly with calvert. let's get to jim and stop trading. >> the oils have been strong as of late. one i'd not liked is occidental. it's time to sell they say they do not have the coverage necessarily that they need with oil at these prices and also be able to do any sort of drilling or growth. i think you are getting another chance, carl another chance to be able to sell occi. i go with jpmorgan

you don't have to do it today. people want to recommend oils all the time the only reason to be there right now is because president-elect biden would favor less drilling which would then raise the price of oil. >> yeah. we did get above 43 first time since september 3rd. >> right. >> your point is -- making your point consistently xaes what's on tonight? >> rocket and lemonade and then ulta i can't wait for tonight's show. >> great show. >> thank you. >> that's a show. >> thank you, guys. >> very nice >> all right. >> jim, we'll see you tonight. >> absolutely. >> "mad money" at 6:00 p.m. eastern time welcome to "squawk on the street." i'm carl with david. leslie is with us for the hour off the opening highs here but some generally calm trading. the vix below 24 which is

interesting, david art cashin makes the point because it's veterans day you have bond markets, insurers that are closed and we'll see what happens. >> we will markets are in the green as we get started with the road map. goldman sachs lifting the s&p target on hopes for a vaccine and future stimulus. we got all the major indices less than 5% from the 52-week highs and the dow on the pace for best month since 1984, leslie. >> wow v.f. corp. goes luxury the ceo joins "squawk on the street" later this hour. and finally, chinese giant alibaba notching a single day sales record as concerns mount we'll talk to david coston tomorrow out this time 10:00 a.m. eastern about the report

they call the roaring 20s redix but year end 4200 and he doesn't think that the market as dependent on mega cap as investors perceive. >> it's been the story of course through the last almost year and it is interesting to note, carl, many of the big companies are up today, even amazon rebounding after a couple of bad days in part because of the stay-at-home trade coming off given the vaccine news but apple, facebook, alphabet, amazon all up sharply, nicely today, leslie. a bit of a rebound for them and they represent, microsoft, 25% of the s&p 500. >> it's exemplified of the divergence of the nasdaq and the dow over the last week and rotation to value names favoring

the dow. today that story is different. the dow is the laggard of the major indices and it will be an interesting theme to pay attention to, something to definitely get into with the next guest, the ko-chief investment offer of bridgewater. bridgewater's bob prince joins us now thank you for being here i want to start there. do you see any potential headwinds from the election? i know a lot of people, investors expected some significant volatility following the results. it's been the opinion sit. the vix has come down significantly. is there anything that could be in store especially as the headlines continue to trickle out in the weeks and probably for the months to come >> yeah. well, i think that what you're referring to is a report that we came out with suggesting that kind of what doesn't change

after the election will be a lot more than what does change some things will change but more things really won't change and that really comes back to assessing what matters most and when you think about what matters most of course spending matters but what drives spending is financial resources and the financial resources come in three shapes you have got money, credit and income and when you look at those there's lots of money out there. there's lots of credit, mostly coming from the government and that government borrowing has more than replaced the lost incomes that people have had at the same time as savings rates have gone up and produced an accumulation of cash on balance sheets that unprecedented. if you look at the rate of accumulation of cash on balance sheets around the whole developed world it is about five times normal

so there's a huge pile of money sitting out there as the inertia of the prior policies and so if you could just -- there's really no soon of tightening on the horizon. we won't get a monetary or fiscal tightening. there will be stimulation that continues, even the biden plan has long-term spending program and so the kind of the big river is an overflowing river. it is not a drying up river but an overflowing river of liquidity and then the effect of a shift in politics is a somewhat rerouting of that river but it's a big river that's overflowing at the banks. >> given that liquidity, the fact you don't expect much to change from the results of the election should investors continue doing what they're doing? should people be rebalancing the portfolio to favor other trends that might be in place whether it be a potential vaccine, whether it be an end to this

pandemic an enthat rotation we were talking about a little bit ago? >> i think we are in a much more nuanced environment than we are used to. the averages are almost not representative of anything when you look at the equity markets, let's say if i take the u.s. and the uk stock market, there have been 90% correlated on a weekly basis and the difference on the returns this year is 30%. if you look at the u.s. sectors the sector moves are 80% correlated but the difference of let's say tech and energy is 70% this year. the difference between tech and banks is substantial it's actually which asset you hold really matters a lot more than that aggregate and we think that will continue because the forces that are really driving that have not gone away. the virus is obviously kind of a starting point but the way that

that's manifest is that the virus is the starting point affecting essentially spending patterns but then the response to those spending patterns is a government fiscal policy to produce this liquidity and you have the economic impacts, the adverse economic impacts of the virus are impacting some sectors and some countries a lot more than others and the abundance of liquidity is benefiting some assets and not others and you have store holds of wealth that benefit from the liquidity effects and other types of asets that are hurt by the contraction in incomes and so until the virus affect on spending goes away that will just a persistent pressure and the only thing that matters from that point is what's priced in and looking at what's priced in for the most part the markets are discounting across all elements of the

economy, a return to normalcy within 12 months and then within that -- when we look at the bubble type indicators there are some indications of a bubble in some of the tech sectors but not by and large, not across the board right now, but the persistent pressures, as long as the virus remains a persistent pressure on spending it will also remain a persistent pressure on policy and perpetuate the downward pressure of a low level of spending we are used to thinking of growth rates but it is the level of spending that matters and then the abundant levels. >> the crisis of the pandemic magnified winners and losers in the economy. you said indications of bubbles

in the tech sector where do you see those bubbles arising? >> i won't go individual stocks but it is obvious ones, basically where naive investors putting lots of money and the valuations look very, very optimistic so -- >> all right activist investor bill ak man edged the equity exposure with insurance against corp. ralt defaults and netted $2.6 billion in the spring with the shutdowns and the economy started going lower with those shutdowns i know you don't make big bets like bill ackman but do you agrow that the market is underestimating the impact of a potential second wave of this pandemic >> probably. it's really hard to say. it is hard to generalize so much, though

what's probably -- let's just say this it is very likely we have a substantial increase in impact from the virus in the next let's call it four to six months the question is, what is the behavior of people in response to that? when we look at the mobility data, we find that's a good metric as human behavior and sometimes people respond to all different things but at the end of the day have they changed the spending pat earns or not? i would say it's very difficult to forecast what they will do because this is all new to us and that's hard to predict but what we can look at is what's actually happening and what is actually happening is that obviously there was a huge change in spending patterns in the first and second quarter, kind of a normalization of that. halfway back in june, july and

really been a flat lining since then and so, for example, and actually now recently a deterioration, an increase in the social distancing which pretty much relates to a reduction in spending in particular products and particularly in europe, for example. it started to hit in the united states, as well. to the extent that the conditions get worse you are likely to see that continue. it is important to recognize we tend to talk about the u.s. and europe and forget about asia and china. in our office in china, people are sitting next to each other without masks. that's a completely different world over there the bond yield is not zero and investors need to be broadening the horizon and really almost thinking in terms of balancing east and west with china at the driving driving engine of the east these divergences in sectors we

see is also manifest in massive divergences in hemispheres and regions in terms of the impact on asset prices and policies and so on and so forth and that will continue to widen and continue over a decade to be a gradual substantial impact on asset markets. >> all right bob, thank you so much for joining us today bob prince. >> thanks. well, as we keep a close eye on all the different potential vaccines out there for covid russia is out with claims this morning that its coronavirus vaccine called sputnik-v is 92% effective at preventing people from getting covid-19, early results from the late stage clinical trial and, again , it's russia, land of putin.

we'll break down the developments after this break.

would you take a coronavirus vaccine? meg tirrell looks at the different approaches they take and how they give us protection against the covid-19 virus. >> reporter: when your body fights off a virus it makes abo antibodies that learn what the enemy looks like to fight it

again scuffleuccessfully. >> the goal of a vaccine to induce the immune response that's a consequence of natural infection without macking people pay the price of natural infection. >> reporter: the vaccine does the work this week the first evidence the one from pfizer and its partner the workinging it's within of three different approaches scientists take in the u.s. dr. paul offitt said they have the same goal. show part of the coronavirus so before you get sick your body makes the antibodies. >> we know the protine of the virus. it is that spike protein, the protein on the surface of the virus to allow it to attach to cells. if you can prevent it from attaching to cells then you can prevent the virus from infecting cells and you. >> reporter: vaccines do this by delivering a piece of genetic material called messenger rna telling the cells to make the

spike protein and we develop antibodies other vaccines also employ a new approach, using a different harmless virus to deliver the gene telling our cells to make that protein. >> again, you make the coronavirus spike protein and then you make antibodies to the coronavirus spike protein. >> reporter: the third is a familiar technology used by others and in this approach the spike protein itself is delivered skipping the step requiring ourselves to make it. >> it is the way we make the humanpapilloma virus, a flu vaccine. >> reporter: he says each may have benefits or draw backs. one might work better or high risk or older people and we don't know. >> the proof is in the pudding, the pudding is phase three trials which is the best last vaccine we'll find out.

>> reporter: meg tirrell, cnbc business news. >> that's a great explainer. our thanks to meg and dr. fauci said the consistent approach from all of these candidates means that the good news from pfizer bodes well for all of them former aetna chairman and ceo mark bertalini welcome back good to see you. >> good to see you. >> i'd love to get your 30,000-foot view of the new this is week and how you think of pipelines at this point whether it's the bottlenecks, whether you expect news on the prix front, the distribution front or the back front on the acceptance front. >> the news on the virus is -- on the vaccine is great. i think that proves the power of what we inthis country can do to address major problems. i wish that would carry over to other things but this is a great set of progress.

what we can't do and what we have been doing all along with antibody tests, with things like the diagnostic test is we view each as a separate magic bullet about it has to be part of an overall frame work because we don't know how long will people be immune when they get immune does it tamp down the symptoms neutralize the virus in all of those instances what we continue to need and we'll always have to have is some sort of diagnostic test, an antibody test, therapeutics and then vaccines in serial order in a way to create an overall fra framework to strat if i the population, who can be immune, who is at risk what we can do to treat as we understand where people are astrong that spectrum to keep our economy open, keep people at work while we protect -- keep america at work while we protect

americans that are at risk. >> when you talk about the fire power, the cooperation, the speed with which this development is happening at the vaccine level, why -- i guess i'd ask you first, do you think it's not as powerful on the diagnostic testing mitigate front and a lesson to areas of health care that change that picture? >> this is where we need a national effort and always been the issue. it's great to create new technologies, to create new ideas in addressing problems but unless you execute against they will with the logistical platform of how do you track, trace? we have to do that with the vaccines people get two doses on the pfizer vaccine they need them a certain part apart. we don't know how long they'll be immune. so we need a whole logistical platform that gets the drug safely to or vaccine safely to where it needs to go and gets it

administered to the american population in two doses, tracks how well it's doing and how people are doing and when immunity stops how do we know to warn those people and to put them on a list to get signed up for the next vaccine again and then where we have fallen apart across the country is we have not been able to build for this pandemic a complete logistical program that does those sorts of things around therapeutics and vaccines and tests, but also, on how we think about creating the capacity in the system to treat people ppe, the hospital beds, ventilators, icu and personnel. >> mark, it is david when you talk about distribution, cvs would seem to be an important part of that people get the flu vaccine from that do you think they're up to it and the other big chains are up to actually being part of this

how will it differ from flu vaccine or be very similar >> having gotten a flu vaccine recently in one of those locations i would say we have work to do particularly when you have to handle these vaccines at very low temperatures, you have to store them and you have to follow up with people and connect so you have to have connected systems from the supply chain all the way through to appointments and administration and i think there's a lot of work yet to do to make that happen. >> mark, yesterday we had arguments in front of the supreme court about the aca. you ran aetna. familiar with the exchanges and everything else. curious if you have thoughts in terms of where things stand and what your hope would be as a regular old citizen. >> soon to be retiree. i think the aca can be fixed i think we need to look at the option of reducing age

eligibility by means testing for medicare for people that are older and aren't eligible for medicaid and i think if we had done that in the beginning instead of the aca we could have gotten as much done cheaper because the systems in both medicare and medicaid work very well and extendsed medicaid with the aca. i think taking the bill down now would be a huge mistake. i think we can fix it by getting the risk mechanisms aligned to medicaid and medicare, changing the eligibility requirements on medicare to give us medicare for more versus medicare for all and solve this problem but to tear this very important program out now in the midst of this pandemic and huge unemployment is a huge mistake. >> that's certainly why the

arguments yesterday got so much attention. thank you. >> take care be safe! >> we'll try we're taking a look at the shares of amplify online retail etf up more than 90% this year this is online retailers such an important component of this. here's the company of amazon you may have heard of and one group is lyft and beating analyst expectations it was looking to enter the food delivery business but for restaurants rather than a consumer facing apicioplatn. "squawk on the street's" back right after this ♪ ♪

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we'd be closer to the twins. change in plans. at fidelity, a change in plans is always part of the plan. for skin as alive as you are... don't settle for silver ♪ gold bond champion your skin cnbc's annual evolve summit yesterday talked about embracing change and innovation. i caught up with visa's al kelly

and talked about the impact of covid on payments and consumer behavior. >> the virus has been very interesting for payments on one hand it's suppressing cash usage as people are worried about germs spread via currency and more people even from small ticket items where they might have used cash in the past are looking to use a debit card or a credit card. e-commerce exploded as people are sitting home and working on the tablets or the mobile devices and wanting to continue to be able to shop and we have seen an incredible increase in the number of people for the first time shopping in an e-commerce situation. >> for more on evolve you can watch the full interview at cnbc.com/evolve. with a bang,

energy and change came to every part of our universe. seismic or small, it continues. change is all around us. shaped by technology and human ingenuity, we can make it work for you and your business. find a stock basedtech. on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

welcome back, everybody. i'm sue herera nbc news projects donald trump has won the state of alaska and republican incumbent senator dan sullivan has won re-election and gives the republicans 50 seats in the senate and the democrats must win both georgia runoff elections to capture control. texas is the first state for million covid-19 cases in el paso, six portable morgue trucks have been brought in to handle the rise in deaths there. storm eta is a hurricane once again at a stalled off the western end of cuba dropping

nearly two feet of rain. that sorm is on track to hit florida tomorrow somewhere north of tampa and in hong kong, the rehmaning 15 pro democracy legislators are reseening after 4 leagues were disqualified by the central government and one said it could sound the death knell for democracy in hong kong you are up to date that's the news update david, back to you. >> thank you. vans, north face and timberlake parent reporting a deal to buy the popular street brand supreme. the deal expanded the company's direct to consumer business and potentially positioning vf for a significant growth in asia still the stock's a had somewhat rough year and joining us to discuss the deal and more is ceo steve rundle nice to have you in the reading of supreme, the street brand, put the name on a

$10 t-shirt and sell it for $200 does it hurt the business when you're own ds by the company that sells timberlands or north face jackets. >> absolutely not. we could not be more excited to have supreme joining the family of brands. we have been reshaping the port folio to see where we see the consumer around active, outdoor, work work lifestyle and thises a suspect of the street wear and supreme is just a great fine point on that move and it's very complimentary to the other brands within the portfolio. the way we manage our brands allowing them, insisting to remain authentic and committed to their consumers and leveraging the skills of vf to

really support the growth because it's great confidence that that model applied to supreme to leave them very much alone. their strategy is very clear the operating principles led them to be extremely successful. we are here to support that long term growth. >> it's interesting to read the history of this brand that began in april of '94 manhattan, the home of skate culture in new york and you say you'll leave it alone. is there help it needs are you just going to leave it alone and putt up the profit margins they can from selling bags and t-shirts with the supreme name on it >> one thing to really know about supreme and it goes to the core of james started the business in 1994 in that single star on lafayette is their deep

understanding of that core consumer which really is that east coast skate consumer, linked very closely to art and music and street culture but this is a company that's very focused on creating quality products, products at a fair price and really allowing that consumer to deeply engage. it can sell a very widespread of price points but at its core are t-shirts, hoodies, those basic essentials for that lifestyle anchored in the east coast skate culture. >> steve, how does this brand perform in a variety of various economic environments? i ask that question because typically luxury can do well even when there's a recession. however, when you look at something like a $300 t-shirt, do people still tend to spend money on that when you could

maybe go to walmart and buy a t-shirt for $5 >> i think the key here is while supreme really spans that street wear to lux sector set of price points at its core it is an east coast skate brand and it sells on average unit sales price of around $40 so yes there are $300 tees based on a co-lab at that point in time but in general very accessible price points for that core consumer and to your point on just how does it navigate times like this, this business has shown to be extremely resilient year to date up 9% with strong profit margins and if you look over the history of this business that is very consistent with how it's performed and really a key reason we are so excited to have

it join the vf portfolio of brands. >> this is a follow-up but courts said for supreme the move could hardly seem more opposed to the ethos whether it can endure or lose the elements that made it desirable in the first place. what can you do as vf corp. to keep the cool with supreme especially as consumer tastes tend to ebb and flow over what's cool at a variety of different times. >> what we'll do and done over history is reallien able this brand to stay very true to the brand ethos, the strategy and to continue to engage deeply with their consumer we dealt with this over time, when vf acquired the north face in 2000 this was a key question from the outdoor consumer. in 2004 when we acquired vans it was the exact same question.

and people were afraid the world was going to end in these brands to lose that authentic connection to the consumer the brands were $200 million, $300 million now growing their share in their respective parts of the market and driving stronger and stronger consumer connection so our approach to allowing our brands to remain authentic, connect with the consumer and tap boo the leveraged platforms to enable growth has proven to be successful over time and we have every expectation that will be true here with supreme. >> hard to imagine opening stores but i think 12 stores today and digital is of course a very important component of the strategy in direct to consumer but could you open more stores with supreme >> we absolutely believe so and why we believe so is in working

with management. they have belief is there's still opportunity across the globe. there's 12 stores today. primarily here in the united states and japan. and two stores in europe the unique thing about supreme and how they look to open stores is they follow where their consumers are and they spend a number of months, quite a bit of time developing the community first in the core markets where they see opportunities for stores, developing connections with consumers and hiring the talent that really brings the brand to life and when they open stores extremely successful. 40% of the revenue made up in the brick and mortar, 60% from the e-commerce business but we see store expansion opportunities in all three regions. over time but it will be done in

the supreme way, looking at the -- where the consumer's at done in a very authentic way and in a long-term, sustainable point of view. >> very interesting, steve appreciate your taking time. thank you. >> great, thank you. speaking of selling a lot of stuff direct to consumer, alibaba's single day event is coming to close with the chinese giant notching more than $56 billion in orders as of this morning. it is going on since the beginning of the month and changed it to 12 days long instead of just 1 day. you can see shares of alibaba and other chinese tech companies off the lows of trading. yesterday we were talking about this introduction of potentially tighter regulations of big technology by the chinese government and the regulations could cover pricing, payment methods, use of data to tar get

shoppers very important potential change. seeking opinions on the new regulations until the end of this month but, leslie, a big impact on the shares yesterday and we are keeping a close eye of ten cent and jd and alibaba and alibaba hit on the postponement of that financial ipo of a company which they own 33%. >> big news out of china and something to definitely keep an eye on thank you, david. solar stocks are on the move this morning including first solar and solar edge an etf that tracks the names trading higher as well as it aims to shake off yesterday's losses there's more "squawk on the street" in just a moment stay with us

a wild week for markets with tech underperforming what should investors take away from that? we speak to a top investor who

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take a look at cannabis stocks many are getting smoked. following of course double digit gains after the election when we had a number of states red and blue both say yes to legalizing marijuana. where do we go from here "squawk on the street" will have that for you right after this break. so we can spend a bit today, knowing we're prepared for tomorrow. wow dad, do you think you overdid it maybe? i don't think so...what do you think, peanut? nope. honey, do you think we overdid it? overdid what? see? we don't think so, son. technically, grandparents can't overdo it. it's impossible. well planned, well invested, well protected. voya. be confident to and through retirement. it's a thirteen-hour flight, tfifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets?

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as david mentioned a moment ago, the cannabis names are down despite recent efforts by the states to legalize adult and recreational use let's talk about this with emily poxi, managing partner at poseidon management. great do see you again. >> thank you for having me today. >> the general concern among some on the street is that these companies still have a lot of need for cash, underappreciated liabilities, despite the wave that we saw on election day. what's going on do you think >> we should be very specific here talking about the canadian names, that story benefitted on a federal market opening early, capital flowing in to the

companies and the balance sheets rich and going after the very aggressive business plans without having really tested the strength of the market so we have seen some real challenges in terms of operational efficiency and the earnings out of a ltd. of these companies have just been really disappointing for invest or thes across the board and we are however thinking much more positively about what we see in the u.s. so right now the way that the sector moves is based on catalysts and consider the election with joe biden and kamala harris winning drove interest into the sector maybe moving towards progress here but we have to be nuanced in thinking about what that means for how the companies perform. >> when you say nuanced, what do you mean do you mean trying to excise canada from the portfolio or something else >> you have to pick the operators carefully. what we are looking at today is gti announcing, a u.s. mso

announcing the earnings after the close and very excited to see what companies are doing in the sector because they really are the ones who stand to benefit from what's going on in this shift in sentiment. some are getting their feet seem to be getting their feet under them a little bit more and driving towards execution. we're really excited about what we're seeing in the u.s. something investors should contemplate is what's coming behind these existing u.s. operators that are publicly listed i'm anticipating that some of these private operators will be looking at a public listing within 2021 and i think we're going to see very strong operations out of those companies. >> emily, what is the chance for nationalized legalization in the u.s. under a biden administration >> you know, we tend to be much more cautious and long view in terms of how we think about when these things will happen

when we first launched our fund in 2014, we thought maybe 2021 we would see some shifts at the federal level. but the way things have moved in the u.s. government these days with what's happening in the senate, with what's happening in congress, we think that this could be slowed down further we know that biden and harris have committed to decriminalizing cannabis i talk about nuance a lot because it does matter in terms of how these markets are implemented and how regulation is implemented so it is critical for us to think about the fine points of these things for us, the most important thing that can happen at the federal level is shifts in banking and that's not just for access to bank accounts and lines of credit and all of the things that these businesses deserve to have, it's really access to the uplifting to the nasdaq, the new york stock exchange, so that we can get more institutional investors access into these names like gti, true leave, all of these wonderful names that are really driving growth in our industry

the industry is growing 40% year over year in the u.s so if we can capture that growth with these operators, and i believe that we can, we can create jobs and we can create lasting businesses. >> you mentioned access to capital as being a big problem one of the big disappointments investors continue to have is the negative cash flow continues to disappoint investors. is there anything these companies can and should be doing as they await some sort of federal approval that would give them more access to banks and the markets as you mentioned >> yeah, well, i think we did see a lot of that reigning in way back in q1 of last year where the msos dialed into the fact that was not resonating with investors that was really starting to fall flat and we're starting to see these things happening and we're seeing the operators moving towards free cash flowing and

that is really resonating with investors because they are seeing that the business case for cannabis is being demonstrated in canada it's been harder i think there was a lot of reaching for the stars, we're going to export into europe. they didn't have the logistics worked out for how that was going to work. we're talking about u.n. treaties that mirror what we've got in the u.s. that are hard to work around. not to mention that you're anticipating that markets like germany are just going to open their doors and allow for importing of product you know there's fine points to that as well in terms of how germany approaches their economy. >> right we did talk to an analyst last week with the caveat that the georgia runoff, the prediction markets don't see that taking the democrats to 50 in the senate but if it did happen, this analyst believed that would be transformational would you have to actually see

it to believe it >> i think a see it to believe it thing is absolutely in order for 2020 and for our industry alone, our industry, we make great strides and then get a little bit of a stepback a person once told me it's all about getting the pendulum to swing further in one direction and not having it swing back to the starting point i think we're making progress and we saw five states legalize cannabis it was a landslide passing of an issue in the u.s. and those states are traditionally quite conservative so i'm thinking we're seeing a little bit more support for this issue across the board and there's this excellent article out from the gallop identifying 68% of americans are in support of legalizing cannabis so if we can get some form of banking reform through the senate -- and i do think we can do that in 2021. i think we have the support there. >> it's a long way from where we

were even five or ten years ago, that's for sure. emily, thanks. fascinating market action today. by the way, during the pandemic, many americans, millions of americans have lost access to their employer-based health insurance, and that includes members of the broadway community. some of the top talent losing their coverage in droves as the shutdown lingers on. leslie is a fellow broadway lover, along with myself and she has more on this. >> a passion project, indeed it was just last year that kaitlin was performing on broadway a year later, the 29-year-old is living with her parents. the coronavirus pandemic forcing all broadway theatres to close, leaving thousands out of work. now she faces a new threat, losing her health insurance. >> i'm out of work as an actor, i don't have that kind of money. so insurance is very important.

>> if you are on broadway, you are part of a union that guarantees health insurance only if you work a certain number of weeks each year. that's practically impossible with the shutdown that's enduring until the middle of next year. the head of the union says up to 300 members are losing coverage every month. she has built up enough weeks to keep her insurance until april at that time she says she'll lose coverage. >> if i didn't have insurance, my health care costs would be insurmountable it's not like i'm just spending money on things that make my life easier, i'm spending money on things that truly keep me alive. >> she's a type 1 diabetic and when she loses insurance she'll pursue a marketplace plan through the affordable care act. the supreme court is looking to overturn the law switching insurance is not always easy and the aca isn't necessarily cheap. that's why the union is pushing

for a cobra subsidy with the stimulus that would allow people like here to stay on the plans without the premiums but the covid talks haven't gone much of anywhere for months, guys >> leslie, that's a lot of big ifs for a lot of people. fascinating look at one part of the labor market we do have some news out a few moments ago from the secretary of state in georgia, where he says there will be a full recount by hand, a development that the trump campaign had been pushing for. we're going to monitor that development. by the way, it's worth noting that the latest nbc data shows that president-elect biden has a lead in georgia of more than 14,000 votes "squawk alley" starts in a couple of minutes. are driving ? if you care about economic equality and social justice, which firms are addressing it in their workplaces

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