firsmot nth's payment. experience amazing at your lexus dealer. lunch. the nasdaq is leading the way this day technology up 2% as it regains its position of power in this rip-roaring market the averages still short of the record highs hit on monday plus, shares of alibaba falling in hong kong as regulation looms over big tech in china as it wraps up its big singles day sales. covid cases, as you've heard,

surging as the u.s. rounds the corner on a vaccine. but how exactly will a vaccine work we'll speak to stanford medical dean, dr. lloyd minor. "power lunch" starts right now thank you, ty. welcome to "power lunch," everybody. i'm kelly evans. tech is the best performing sector today, up 2.5% as it regains some ground it lost over the past several sessions. take a look at big cap tech name apple, microsoft, amazon and facebook all higher today. you can see amazon and microsoft up about 3%. flipside of the coin, energy stocks are lower the energy sector etf, exl up 14%. taking a breather today. and despite all the volatility, the s&p is up a whopping 9% to kick off november. wow. dom chu has more. >> we have talked about this

rotation, whether it's a great rotation, whether it's a microrotation into some value type sectors like energy, industrials. we have some massive moves on some of the most beaten up stocks in the s&p. this right-hand side, this move higher than been led by many of those deeply depressed names like an energy, like a materials, industrials, those types of stocks as well. now, you take a look at this because there are 13 stocks in the s&p 500 that have a short interest as a percentage of shares outstanding meaning massive bets by traders against the stock. there are 13 stocks that have short interest of 13% or higher according to data from fact sets let's talk about the one with the biggest bets against them. american airlines, 34% stock outstanding is held by short sellers betting on a decline look at american, norwegian,

expedia. they have been hit so terribly hard over the course of 2020 because of the pandemic and its effects on travel. these are some of the biggest gains we've seen on the right-hand side over here because of that short interest and those traders covering those short bets to take some profits. now, watch that particular move. i bet a year-to-date chart there because it just shows you how far these things have fallen check out these two other charts as well. we're looking at other parts that have been beaten up, have very big bets against them one in retail. 5% decline for ralph lauren today. this move higher here, ralph lauren is one of those highly shorted stocks in retail in the s&p 500. we'll end on one more that rounds out this notion of the consumer economy being at the heart of all this. sl green realty, look at the decline over the last year-to-date period. 40% of its shares lower here now. in this move over the last couple of days, a sharp move higher, it goes to show you, kelly, tyler, some of the most

highly bet against names are the ones rallying. the question is, will it last? that's a big one for investors back over to you guys. jpmorgan and goldman sachs bullish on the market heading into 2021. raising the year in 2021 s&p price targets to 4,500 and 4,300 respectively where will the market find that 25% growth over the next year? joining me now to discuss that is mike labella from franklin templeton. gentlemen, welcome mike, earlier this week you were pointing to a massive rotation in the market to value today not so much. is value the place to be over the next year or what? >> i think monday reminded us that the biggest stimulus is going to come from a vaccine or

better risk strategy as it relates to covid more than any fiscal or monetary policy and it's going to come very sudden when you think about the potential milestones over the next couple of months, there are potentially multiple instances where we'll see better news around potential news for a vaccine as well as potential limiting of vaccine area look at our value stock. the rubber band is stretched -- so even slight expectation can have a massive impact -- this can be sustained >> i'm going to move to scott clemons as we seem to have some audio trouble with mike labella. scott, what is your take on the market's direction i take it you assume the market is reacting very nicely, oh, by the way, to the possibility of split government and a biden presidency on the one hand and to the prospect of a vaccine for this virus on the other?

>> the prospect for clarity is the bigger point but the progress in dealing with the pandemic and progress towards economic recovery are two sides of the same coin and the linkage between those two things is consumer confidence, consumer spending, and that's 68% of gdp. i think what investors are looking for, and this will be interesting to play out over the course of 2021 and to what degree companies, both public and private, are able to incorporate into business as usual the lessons learned during the pandemic we're looking for companies to better integrate technology, have more flexible workforces and better utilize assets. real estate particularly the upside to corporate profit margins could be the big story in 2021. >> in other words, what you are looking at, if i could sort of translate it, is that some of the things businesses have learned this year, ie, working

at home, using technology, maybe reducing the real estate footprint. those savings are going to drop to the bottom line >> we've seen operating margins bounce back up almost to the pre-peak levels. if those trends continue, we believe there's easily a percent or two of operating margin expansion to take place in 2022. that doesn't sound like hey lot but when you multiply that across the entirety of the markets, that's an extraordinary rebound in earnings and makes the equity market not appear as expensive as it does now priced on depressed earnings. if you look at it more on 2021 earnings, the valuations become much more reasonable, particularly in a monetary environment that's likely to remain very accommodating. >> it looks like it's going to be very benign who knows about stimulus, it may become before the end of the

year or more likely it looks like afterwards. mike, let me turn back to you. what scott just outlined there, which was the idea that what we've learned this year about using technology and working more efficiently is going to kind of margin expansion and savings that will drop to the bottom line, that could power the market higher. do you feel comfortable with the predictions we cited at the top of the segment from jpmorgan and goldman sachs for roughly a 25% gain from where we are today for the s&p? >> yeah, we think there's enormous room to the upside as it relates to the market considering the rebound we're expecting later this year. and into 2021. now, much of those kind of -- that relate to the acceleration of technology are going to continue to get to the bottom line and be very supportive to the broader market the key part here is that as the

recovery starts to gain ground into 2021, there's an enormous amount of sectors that have not participated in this market rally. much of that side -- goldman sachs and jpmorgan could likely be achieved by the broadening out of the s&p 500 sectors >> all right mike, thank you very much. glad we were able to fix the sound there and get you back in. scott clemons, always good to see you. kelly? >> likewise. >> tyler, we want to update everybody now on a story that was hot this summer. you may remember shares of eastman kodak spiking after announcing a huge loan with the government back in july. but then the deal was halted on questions about stock sales by company executives today new details are emerging the company admitting the execs sold shares they didn't even own. let's go to leslie picker to sort this out for us >> that's right. the drama continues for this once american icon, as you mentioned, at the end of july kodak shares soared 1,000% over

news they got a government loan to produce ingredients for drug manufacturing. that was halted and what followed was lawsuits. the company says it's cooperating. that's not where this story ends as you mentioned in an earnings call yesterday, the cfo revealed that five former company executives had exercised f forfeited stock options. the internal controls designed to control something like this were, quote, inadequate. kodak said this didn't result in the misstatement of any financial disclosures but the 2 million options exercised in the first nine months of 2020, about 300,000 were exercised by ex-employees of kodak that had previously been forfeited. kodak recognized $5.1 million

compensation and is seeking to claw back the value of those options at the time of sale. >> could they be in further trouble or consequences as a result of this, leslie >> that's the question i'm looking into whether these executives could be in for legal trouble, if it was one of those, oops, i didn't mean to type of things i think the question will really involve whether they actually do return the money that they were able to get from exercising those options they had forfeited and whether the company itself pursues legal action on that front. i'm looking into that further speaking with lawyers and so forth to see if there are any legality issues surrounding this activity. >> yeah. appreciate you bringing that to us, leslie thank you very much. coming up, as the second wave begins to take shape in the u.s., third wave really, a vaccine can't come soon enough we'll speak with dr. lloyd minor how a vaccine will work, when to expect it and what to do in the meantime. chinese big tech companies falling in hong kong sharply as china outlines its anti-trust

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on the network rated #1 in customer satisfaction. it's your wireless. your rules. only with xfinity mobile. welcome back it's a split market today. shares of alibaba slightly higher in the u.s. as today is singles day, the end of it it's a huge day for the company. in hong kong the shares are reflecting this increased concern about regulation

it's a nearly 10% decline. deirdre bosa is joining us now to explain deirdre? >> kelly, well, the good news is the chinese consumer is alive and well alibaba, over $70 billion in sales over that shopping event, nearly double what it notched last year. we should note the total this year was 11 days, not the typical 24-hour period this year as the pandemic limits travel, alibaba put the emphasis on international brands. some popular brands, nike and apple, but allbirds getting in on the action as well. all of that overshadowed by chinese anti-trust scrutiny of the tech giants. just as singles day was getting under way, 11-11, china's anti-trust board put out practices. it took a collective $280 billion from the biggest names

from ali alibaba and tencent they have largely been seen as national champions and seen as operating largely independently from the chinese government. as we saw with fintech giant ant group, beijing is not afraid of pulling out the rug from under them kelly? >> deirdre, let's get specific here what are people saying about what this regulation could look like, or do the specifics matter i mean, is the whole idea just that they could face pressure from the government? as we know, the chinese government, they're not afraid to come in and, as we saw with the ant group, you know, if they don't like what they're seeing, they can do anything they want >> exactly over the last decade or so, these tech companies, like alibaba and tencent, have been able to grow just enormous amounts, hundreds of millions to the billion of users for alibaba

and tencent. but there is, perhaps, the thinking that perhaps they've gotten too big we talked about this earlier, jack ma's comments really seeming to criticize the financial system ahead of those alibaba regulations. the chinese government wants to know that even if they don't have a stake in these companies, they're going to fall in line and behave this is, perhaps, an indication that xi jinping, the chinese government, the regulators are looking and saying, hey, if we can't control them anymore, maybe we need to rein them in. that will have huge implications with alibaba and tencent, they are growing faster than our own cloud giants if brakes are put on the way they can grow that business, that could hurt the growth of these enormous companies >> yeah, fair enough deirdre, thank you very much deirdre bosa, we appreciate it. speaking of regulating chinese tech companies, remember

tiktok tomorrow is the sale of that company. president trump seems to have moved on to other matters. let's bring in julia boorstin. >> bytedance filed a petition with the u.s. court of appeals to action for a review of the presidential order back in august that ordered bytedance to divest of its u.s. business. but the deal that the president approved, which was to sell 20% to oracle and walmart, has not gotten clearance from the chinese government so it's unclear what will happen when we get to that deadline tomorrow and whether the government will shut down the app. tiktok saying, quote, for a year, tiktok has actively engaged with cfius in good faith to address its national security concerns even as we disagree with its assessment. in the nearly two months since the president gave his preliminary approval to our proposal to satisfy those concerns, we have offered detailed solutions to finalize that agreement but have received no substantive feedback on our

extensive data and privacy framework. we have gotten no comment from oracle on this position or no response from the trump administration we're awaiting the incoming biden administration's perspective on tiktok. a biden adviser telling our alex sherman, it's too early to say, tyler, what they think about this chinese-owned app. >> obviously the administration has been distracted by other things what are the -- what are the chances tomorrow the plug gets pulled on this app in the united states >> tyler, i would not want to speculate. this has been such a wild ride in terms of the story. such an interesting code to have this filing requesting clarity here, but i've been talking to a lot of sources for the past several months and people on all sides of this deal say they don't know what's going to happen i think it's probable, tyler, since we've seen the app continue operating in past

similar situations that we could certainly see another delay. also keeping in mind that bytedance asked for another 30-day delay there. >> julia, thank you very much. julia boorstin reporting. coming up, mortgage demand hitting a six-month low. but the ceo of the home builder d.r. horton says this is the best market ever we've got those details. plus, after a huge run, hot stocks taking a hit today. aurora cannabis down about 20% we'll explain why when "power nc rur aerhiquk break. ree access to research. yep, td ameritrade's got that. free access to every platform. mhm, yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. now offering zero commissions on online trades. we charge you less so you have more to invest. ♪

welcome back to "power lunch. housing and real estate a key pillar of the u.s. economy in focus after demand for mortgage applications fell to its lowest level in six months. the housing stocks fighting to stay in the green, helped by home builder d.r. horton which was upgraded to a buy today after its ceo called this housing market the best he's ever seen. matt and gina sanchez, good to see you both today gina, we've seen such a strong housing market in this pandemic, this pivot from cities to suburbs. but is all the good news priced into these home building stocks?

>> it doesn't look like it, honestly, seema. the housing inventory has been so low for many years, since 2018 we've been talking about how tight this housing inventory is that's going to continue to help support housing prices and will help home builders >> matt, agree or disagree >> well, you know, it's funny because i agree with everything gina is saying on a fundamental basis. things still look great. one thing that concerns me, and i've been bullish on this group for two years now, but sometimes the stocks do a little differently than what they should do or the underlying fundamentals tell us to do right now we're looking at cracks in the chart. you look at construction etf, it's broken below its trend march going back to march, so that's negative. and now getting ready to test the key support level, the neckline of a head and shoulders pattern. in other words if it makes another lower low after dropping below that trend line t will be a signal for the

group and raise a red flag fundamentally it sure looks good but there are some cracks showing up i don't think it would clobber the groout but could give us surprising. >> for more trading analysis on trading nation, head to our websi website. we're on twitter, kelly. i don't know if you knew that, but we're there. back to you. >> it's a great follow i encourage everyone, pile on. ahead on "power lunch," texas hitting 1 million covid cases as the outbreak surges across the u.s we'll speak to the dean of stanford medical next. the mystery chart, this name soaring 300% and up 900% from the 52-week low. we're back in two. arns and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> some people refer to the vix as the market's fear gauge i like to refer to the vix as a gauge of uncertainty because

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welcome back, everybody. i'm sue herera here's your cnbc news update in pennsylvania with 98% of the estimated votes counted, president-elect joe biden's lead has grown to 52,000 votes. that's more than the margin needed to trigger a recount. in michigan the trump campaign filed a lawsuit saying voters were blocked from viewing. they call it baseless. the minnesota vikings will not sell tickets for any of their remaining home games the team had been working with state and local officials on a plan to try and safely allow fans into the stadium. in oregon, a veteran getting a special honor. jim weinbrenner turned 98 and the local police brought a parade right to his house. he was in world war ii defending

aircraft against enemy attacks you're up to date. that's the news update at this hour back to you. >> sue, thank you very much. let's get a check on the markets where the nasdaq is back in the leadership position the dow was up more than 200 points at the highs today but it's gone negative, down 45. the s&p is still up two-thirds of a percent the nasdaq hanging on to a 2%. oil markets closing up -- no, i've been told the oil markets closing down i get the impression it's closing up >> it is still up on the day but well off the best levels of the session. now et cetera just about flat. brent crude futures, world benchmark up one-third of 1% the highs of the day, wti u.s. crude is up 3% it's positivity around that covid vaccine still part of the story. fueled further by inventory data

from the american petroleum institute, the api yesterday that trade group says the u.s. oil stockpiles last week fell by 5.1 million barrels. a much bigger draw down in supply than expected tomorrow we get official energy department inventory data. it was delayed because of the veterans holiday today back over to you. another record for coronavirus cases here in the united states, 131,000 new cases yesterday. but there is one positive in that grim number it is actually helping the vaccine studies as more people are exposed to the virus it's not just the pfizer biontech trial but several other vaccine candidates in the works. here's meg tirrell here to explain how the vaccines work. >> reporter: when your body fights off a virus, they make antibodies that act like

soldiers they learn what the enemy looks like so they can fight it again successfully in the future vaccines help us do that, training our immune soldiers to be ready in the war against covid. >> the goal of the vaccine is to induce the immune response that's the consequence of natural infection without making people pay the price of natural infections. >> reporter: the vaccine does the work this week the first evidence the one from pfizer and partner biontech is working. it's one of three different approaches scientists are taking in the u.s the doctor says they all have the same goal, show the immune system part of the coronavirus so before you get sick, your body can make the protective antibodies. >> we know the protein of the virus we're interested in. it's that spike protein. the protein that sits on the surface of the virus that allows the virus to attach to cells if you can prevent the virus from attaching to cells, you can prevent the virus from attacking to cells and infecting you. >> reporter: vaccines do this by delivering a piece of genetic

material called messenger rna. it tells our cells to make that spike protein to which we develop antibodies other vaccines from astrazeneca and johnson & johnson using a different, harmless virus to deliver the gene telling our cells to make that protein. >> again, you make the coronavirus spike protein. then you make antibodies to the coronavirus spike protein. that's the way those systems work. >> reporter: the third is a familiar technology being used by sanofi, glass sew smi glaxose skipping the step requiring our cells to make the spike protein. >> it's the way we make the human papillomavirus, hepatitis b, one of the flu vaccines he says each may have benefits and drawbacks. one might work better for older or high-risk people, but we won't know until the third phase trials is complete for all of them. >> the proof is in the pudding the pudding is the phase three

trials which of the vaccines will be the best in we'll find out >> guys, we learned this week the pfizer vaccine looks to be very effective folks like dr. fauci tell us because all of these vaccines have a similar approach, that spike protein, the pfizer news is good news for everything coming behind it so, we are hopeful and we should see the moderna data pretty soon kel kelly? >> that was a great explainer, meg. stay right there for more on how these vaccines work and also what we can expect in terms of the challenge of getting people to take one for covid when it's approved, let's also bring in dr. lloyd minor, dean of stanford school of medicine it's great to have you here, doctor on a day like today with all of the concern that we have about the spread of covid with new york just announcing new restrictions, it almost feels like we have to worry about what happens between now and then as good as this news is i guess just to kick things off,

can you share your thoughts on what kind of measures you think are going to be necessary to get us through the next few months as we await widespread distribution of this vaccine >> yes, thank you. it's good to be with you i think we're going to continue to need to observe masking and social distancing. you're exactly correct the news from the pfizer/biontech vaccine is good news greater than 95% prevention from the study participants but it's going to take a while to get the vaccine distributed. of course, it still has to go through that critically important period of fda review >> right so, i mean, we can kind of hope and assume that will all pan out. we've seen scott gottlieb tweeting today about his concern about hospitalizations and kind of implying that further measures might be needed to control this you know, what have we learned since march?

obviously, we saw what happened to the economy when we shut everything down. how do we take a more tactical approach this time around that preserves the health care system and the economy at the same time, doctor >> well, here where i live in the bay area, for example, in the city of san francisco, there had been an allowance for some indoor dining that is now being reversed there are measures that can be and should be taken where indicated that encourage social distancing, that prevent the spread of infection in environments where we know there's going to be a higher risk spread of infection, such as indoor dining, large gatherings those restrictions, i think, will need to be reimplemented in areas where we're seeing increase cases but it doesn't mean we have to go to a complete shutdown. certainly in health care delivery, we don't want to go to the situation we had before where we were canceling elective surgeries and delaying very

necessary medical care i don't think we'll get to that, at least not in most areas of the country, but we'll need to take the prudent measures short of shutting down the economy that we know are going to lower the risk of infection. we for sure need to be wearing masks and observing social distancing. >> dr. minor, a lot of people in the united states are suspicious of vaccines across the board they may be particularly suspicious of this one would you take this vaccine yourself would you recommend your family members to take it and what would you tell people who are resistant to taking it >> i would take vaccine approved by the fda i believe in the fda review processes. they are very thorough they have been honed with years of experience. the fda has arguably the best scientists and regulators anywhere in the world looking very carefully at the data yes, an appropriately approved virus, i would definitely sign up to take and recommend to others i think with regard to increasing confidence, being

transparent about the data is absolutely paramount and the pharmaceutical companies have been and i think the fda will be as well when the data are reviewed we know that in the same survey, up to 50% of people might not take the vaccine, and those same surveys, 20% to 25% had said, yes, they would. i hope early adopters will then encourage others to participate as well. >> dr. minor, it's meg tirrell i'm wondering what you might say to folks who might be feeling this intense sense of pandemic fatigue. we look at the number of new cases right now. we're above 130,000 just reported today we've had 100,000 new daily cases back to november 4th, every day in this country. it almost seems as if there's a feeling that we've been doing this for long enough we just can't live like this anymore. we're just going to live our lives. what are the risks to doing that to people? even if governments don't impose any lockdown measures, people

can take responsibility and try to be more careful i mean, how do you try to convince people they still need to take precautions? >> well, i certainly feel the effects of pandemic fatigue. i think all of us are feeling them we have to each individually devise ways to stay resilient. for me it involves working with an amazing group of colleagues in stanford medicine and stanford university and around the country, around the world, as well as having time with my family, probably more time than i had before the pandemic because i'm not traveling anywhere i think we have to stay the course observing social distancing, masking, being prudent to avoid situations where we know there's an increased risk of transmission we have to stay the course or else we're going to wind up in some situations that will be very dangerous we're seeing that in some parts of the country right now >> what is your expectation for what -- oh, sorry, go ahead,

kelly. >> nope, go ahead, meg >> i was going to ask what the future looks like as we start to get these vaccines hopefully more than justifieser's will turn out to work and work well how long until we getback to normal how long will we be wearing masks and social distancing? >> meg, your report did a great job of giving an overview of vaccines the pfizer is the furthest along and pfizer said it would submit its data to fda later this month and i expect a very prompt and thorough fda review. the others are a bit further behind moderna is probably the next one and then the others. as has been said, the fact we're seeing data very encouraging for one vaccine is also encouraging for others i think, frankly, it's going to be the spring to the summer before we can get widespread distribution and that's going to be necessary in order to get the type of immunity needed to control the spread of the virus.

>> yeah. dr. lloyd minor, we'll leave it there. thanks for joining us and sharing your thoughts today. appreciate it. >> thank you let me turn back to you, meg, for a quick question. there's a pfizer story circulating about an automatic sale of a large chunk of the ceo's stock that coincided roughly with the announcement of the vaccine. can you tell us more >> yeah. we just saw in a filing that pfizer ceo sold about $6.5 million worth of stock -- sorry, $5.6 million i switched the six and the five. on monday. triggered probably by that stock move because of the vaccine data from this filing we know it was about 132,508 shares at average price of $41.94. it's clear this is under one of those 10b5-1 trading plans

adopted august 202 pfizer tells us the ceo still owns 5 million in pfizer shares. he's been there for 25 years at the company and through that time he owns a substantial amount of pfizer stock, they say, under our qualified and nonqualified savings plans they say he owns nine times of pfizer stock after the sale. that's how we get to the $15 million number any time you see these stock sales from executives around news, particularly on covid vaccines and drugs, eyebrows are raised we've seen that with moderna swle this one is capturing attention even though it was preplanned. >> the bottom line is that stock sale was going to take place on that day whether or not there was a vaccine, right >> i don't know if it was that day, but triggered by the price. so, if the shares reached a certain price, a certain number of shares would be sold at that price. they didn't know when they were going to get the vaccine data. they diplomat know if the vaccine data would be good but

that sale plan was placed in august based on what price the stock reached. >> meg, thank you very much. you've always got the answers. i appreciate it. kelly? it's another split day for the market but today it's the nasdaq leading the way it's up more than 1.5% the dow has gone negative. we're going to look at some of the day's big movers ilungncdi a pot stock plummets dow is down 69 going to tell you about exciting plans available to anyone with medicare. many plans provide broad coverage and still may save you money on monthly premiums and prescription drugs. with original medicare you're covered for hospital stays and doctor office visits, but you have to meet a deductible for each and then, you're still responsible for 20 percent of the cost. next, let's look at a medicare supplement plan. as you can see they cover the same things as original medicare, and they also cover your medicare deductibles and co-insurance, but they often have higher

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welcome back it's time for today's power movers first up is aurora cannabis. it was down as much as 20%, now down just 2% the company making plans for a secondary share offering and stiefel downgraded the stock all the big pot names are trading in the red but off their worst levels data dog is down 10% investors worried about growing competition in the cloud in terms of the cloud monitoring space. datadog shares are down about 10%. finally, five prime therapeutics is soaring more than 200% today. this is the small cap ticker they released positive results for stomach cancer treatments.

shares have more than tripled, up $12 to just about $18 and change over to you. you one last look at our mystery chart. the stock has been given a huge covid winner, up 370% this year. will it hang onto those gains in the vaccine era? we'll ask the ceo right after this do you have a life insurance policy you no longer need? now you can sell your policy, even a term policy, for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized that we needed a way to supplement our income. if you have one hundred thousand dollars or more of life insurance you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit conventrydirect.com to find out if you policy qualifies. or call the number on your screen. coventry direct,

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we want to show you an intraday of the dow. after starting the day lower and rising midday period, right now it is moving lower, off by about 121 points, about .4%. it's taken a step down, hit the brakes here in the next few minutes. meantime the nasdaq continues to move up. though its gain here after 2:00 p.m. has moderated quite a bit it's down a little bit off its highs. but still up more than 1.5%. time to reveal today's mystery chart. it is carparts.com, up 350% so far this year, the stock getting a huge boost from the growing shift to e-commerce amid the pandemic, reporting a 105%

increase in online sales this last quarter joining us now is carparts.com ceo lev peaker good to have you with us. >> thanks so much for having me. >> so the business is great. the stock is down a little bit over the past few days i don't know why your report was fantastic. margins are good gross profit more than doubling. net sales up 70% net income improving significantly. what is the stock market not understanding here >> so we don't really look at the stock price. we try to build a business we'll be proud to own decades from now and we're focused on convenience and value for the consumer we have a unique distribution model where we go directly from the factory to the customer and we're able to pass on those savings to the customer and, on top of that, we're able to deliver parts quickly to them, usually within one or two days, which is what the customer expects. we're focused on building a

great business and the stock market can be irrational at times, and we don't really pay attention to that too much. >> that's probably a healthy attitude to take towards the stock market because, as you say, it can sometimes throw a lot of head fakes in there. >> yeah. >> is it your ambition to be the amazon of car parts? >> who wouldn't want to be the amazon of anything, right? so again, you know, we're really focused on building a fantastic business and we have a unique, proprietary catalog that we've invested 2 million man hours into building that allows us to essentially provide the right parts for the customer, for the customer's vehicle on top of that, we're getting closer and closer to the customer, because they expect to receive their parts quickly. amazon has actually trained them to expect their parts in two days and now it's same day shipping so, we're going to continue building out our distribution so

that we get closer and closer to the customer to solve their problem of them not being able to get back on their own. >> two questions who is your customer are they individuals, people who want to repair their own cars, or are they professionals who are in the business of a body shop, a mechanic shop? and, second, where do you source your parts >> yeah. so the first question is our primary customer is a do it yourself individual consumer actually, there are two segments in our market, a do-it-yourself customer and then do it for me, a customer showing up at the shop what we've seen historically is that the shops wouldn't actually install the parts that the customer would bring in, but now the customer can source their own parts and then bring them in to the shop, to do the repair. so we've seen that trend kind of accelerate the fastest growing segment of the market is a do it for me, where a customer sources their own parts.

and then we don't really do a lot of sales the focus is individual consumer. >> as a consumer i might show up with a new transmission for my mazda and ask a shop to install it >> yes. >> and they will, or they might? >> yes, absolutely i think the shops don't have enough occupancy of their base and so the average shop is busy only 40% of the time and so we've seen the trend kind of accelerate where the shop will forego the profit that they make on the part and make it up in labor. >> right. >> but they're keeping the bay occupied and so similar to what happened in tires, where tire rack went to firestone and got a deal done where they ship the tires to a firestone location, firestone sells tires themselves but the

occupancy, we're seeing the same trend play out in auto parts as well. >> i would guess you've been helped a little bit by the pandemic, and people having more time at home and being wary of going to a repair shop once the pandemic is back under contr control, do you believe the trend toward this do it yourself or do it for me buyer will be an enduring one, or would you expect that some people will go back to old habits and go to a shop instead of patronizing your business >> that's a great question the pandemic accelerated three trends in our industry first a shift from do it for me to do it yourself. we usually see that as people try to save money. and as it gets demystified by youtube and other sources you can go to, to look up how to fix a car, we see that trend to diy really accelerates the second is a shift from offline to online and

historically our industry is underpenetrated in terms of online sales once people discover value and convenience of shopping online, they don't usually go back to the old way of shopping. we've seen this in numerous other industries, and the last trend is going away from public transportation and more into personal mobility. >> right. >> if you look at the reporting from major dealerships, they already reported huge improvement and sales of used cars, great for our business going forward. >> lev peker, thank you so much. continued good luck to you kelly? >> the nasdaq is leading the way higher today after lagging so far this week. chip stocks are the best performers, qualcomm, skyworks and nvidia we'll have more on the markets in a moment. don't forget, you can watch or listen to us live on the go on the cnbc app we'll be right back. for over 30 years,

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those shares are plummet in off a short seller report by muddy waters which says it is short shares and credit of multi-plan over what they say is an impending which could cost 35% of revenue within two years. they're talking about the customer of united health care they say united has formed a competitor that offers lower

prices and fewer conflicts of interest they say this is a grievous oversight in diligence this was an $11 billion deal which closed october 8th we've reached out to multiplan and will circle back when we hand it back over to them. tyler? >> as we hand it off to wilf and sarah, the dow has taken a bit of a swoon down 84 points as we turn it over to the closing bell. >> thank you, kelly and tyler. welcome, everyone, to closing bell i'm sara eisen fang stocks helping to lead the rally for the nasdaq money flowing back into those work-from-home like zoom, salesforce, etsy energy stocks and financials were among the top