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 performers

following pfizer's vaccine news. and coronavirus remains top of mind cases surging in america and abroad the u.s. logging its highest number of hospitalizations ever, surpassing the previous high in april. dow is down negative, 71 points. >> intra-day slide there in the last hour or so. coming up on today's show, aaron levie, box ceo, weighs in on the election and what it means for the sector we'll discuss with strauss zel nichlt zelnick. and angel merkel says she expects the second wave to be more severe than the first as that country has a surge in cases, we'll speak to the german federal minister of health about

that let's focus, first of all, on the big stories we're watching today. mike santoli is tracking market action, meg tirrell has information on johns johnson & johnson's vaccine candidate. mike, let's start with you and the bond market. >> kind of mild moves in the broad markets. lot of divergence once again a partial reversal of the rotation trade we've had for a while right now. a bounce in the big growth stocks is helping the nasdaq the rest of the market has been very hot it's cooling off net effect again, half a percent gain in the s&p, more like .8 or .9%, bumping up against the closing high levels from september 2nd, which is 35.80. don't forget on monday, 3645 or so that initial pop high we're working underneath that area right now and it's actually a little bit unstable even though the moves are very modest. we have that style and factor

pinball going on, on a day-to-day basis the high beta etf, psychicalal, very sensitive to headlines and macroexpectations. that's the white line right here you see this huge vertical move, up 10% in two days, down a little bit today, very reminiscent of what we saw back in june where you had everybody rushing to that side of the boat saying we have to play the reopening. what happened after that it definitely came off the boil and you had the low volatility stocks pick up these two things can work in tandem it's not an either/or necessarily. when it starts to move that dramatically, you have to have some sort of adjustment and settling down typically after that not really necessarily a clear prediction of what happens to the s&p 500 itself but it shows you there's a lot of tumult underneath the indexes a single stock pair that illustrates this, too. year to date, tesla against gm no contest absolutely nothingcompared to 400% gain for tesla.

look at the last month and it looks like a completely erratically different story. gm in the last month up 25%. tesla on a down side, 30% spread it looks like nothing. it shows you how wide it is. if we'll have a value in cyclically led market, what's the ceiling? gm, up to a seven or eight times forward pe multiple, that's around the ten-year average. it's not clear that the market will want to pay a ton more for those types of stocks. value and cyclical led is harder to move the value, guys. >> the first chart as well that showed even if the s&p 500 has not broke into new highs, any type of value type measure, you could look at banks, s&p 500 value did sort of pull ahead of that june high the other area that i'm looking on that has done that and seemingly the winner this week and hasn't even pulled back today's training session is europe, which has a lot of the value characteristics. >> sure. >> significantly outperformed

the u.s. this week. >> it's true and again, there was a little bit -- you know i wouldn't say a catch-up move but essentially it did not have as high of a high yes, it has held the bid right there. by the way, the japanese market also is pushing up multi-decade highs. there is this global liquidity push not too much of the wiggles. but without a doubt there's a general thrust of a relief and a feeling we could look toward a better environment for next year it's just what comes in the way in terms of covid news and potential slowdowns. that's global as well as a u.s. story. >> today the story is short-term growth concerns. >> yeah. >> technology. it's consumer staples leading the charge. >> by the way, bond market is closed today we don't have the bond market's verdict on that. >> true, for veterans day. u.s. meantime setting a grim record for coronavirus hospitalizations cases continue to surge in this country. even after pfizer's encouraging

news on monday, other companies are working on getting out vaccines meg tirrell has that for us. >> hopefully we see further positive news from these vaccines johnson & johnson, of course, among the companies in phase three trials in the united states ceo alex gorsky was talking to the new york club, and he called pfizer's study very encouraging. he said early signs in the studies they've already done showed encouraging signs, and here is what he said about where they are now. >> now we're in the midst of a very large phase three trial that will eventually include up to 60,000 patients, and that should help give us much more information about the efficacy, about the safety and applicability of this for covid-19 so we're cautiously optimistic we're hopeful, but we still have a lot more information we need to gar nechltner.

>> we're going to need as many vaccines that show they work and are safe so many people need to get vaccinated in order to attain herd immunity. gorsky saying he's gaining increasing confidence, based on publicly available he has seen that will see hundreds of millions of doses available in early 2021, getting to a run rate of billion business late 2021, guys this is not going to be a light switch when we get a vaccine it will take time for everyone to get vaccinated and help to slow this pandemic down. with the news this week certainly a glimmer of hope. guys >> good to see the ceos hopeful. we've been focused on the hospitalization numbers rising at a very steady pace, now record levels, higher than back in april and so widespread across this country. is there any discussion at any federal level or even at state level as to what's going to happen, how they'll be able to control health care systems and what to do if these icus and hospital beds do fill up to

capacity >> yeah. you're not seeing that from the administration folks like former cdc director tom friedman did say we need to start talking about lockdowns. others suggest, like scott gottlieb, it doesn't need to be binary, either you're closed or you're open but try to encourage folks to wear masks and social distancing that needs to be done on the state level, of course, you hear local governments talking about implementing more restrictions but these numbers, sara, they're really scary 100,000 cases per day, every day since november 4th more than that, that we're seeing it's everywhere across the country. we won't be able to see the things like doctors from california coming to new york to help out because both places in the country could be getting hit hard at the same time. >> i do wonder as well meg, thank you so much, sara, about those tweets from andrew cuomo, more semi restrictions

coming into play on friday when the markets started to slide a little bit. >> they're putting occur fuse on restaurants, closing restaurants in new york at 10:00 p.m. and bars and gyms and restricting in-person gatherings to ten people, which is nowhere near as strict as it was during the height of this pandemic but new york's positivity rate is over 2% they're starting to make moves here. >> i don't think closures at 10:00 p.m. are going to drastically hit restaurant bookings. >> hurts business. >> it's the of whether we're headed for further restrictions if that doesn't work, maybe spooking investors anyway at this stage of this session. alibaba is holding its annual singles day event it's raked in billions of dollars in sales, the stock has taken a big hit this week. deirdre bosa explains why. hey, dee. >> raking in over $74 billion in sales during the pandemic but

that size and scope may not longer be able to throat china's anti-trust watchdog put the country's tech giants on noted, rooting out anti-trust practices. that took some $280 billion in market value out of the biggest names yesterday. big tech in america, of course, guys, have been hit by anti-trust scrutiny, but you've never seen their shares decline the way that alibaba, jd.com and others did in hong kong. that may be because regulators over there have more power to act without necessarily proving monopoly practices for now, beijing has only issued draft rules, but the concern is that the process through which they may become regulations may not be as transparent as they might be here. and that's exactly what alibaba president michael evans called for this morning when i asked him about ant group's delayed ipo. he asked for transparency to understand the rules by which the game will be played. that old playbook, guys,

including the huge numbers associated with singles day may not be working quite as well anymore. back to you. >> fascinating, dee. thanks for that. after the break, more tech box ceo aaron levie celebrating joe biden's victory on twitter this past week what will a biden administration really mean? we'll discuss with him coming up next you're watching closing bell on cnbc what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪

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welcome back tech is the best performing sector with qualcomm, paypal and nvidia it's soared under the trump presidency, out performing the broader markets by 155% compared to 57% by the s&p 500. joining us for more in a cnbc exclusive, box ceo aaron levie always good to see you, aaron. >> thanks for having me. >> as i mentioned in the tease before the break, we've been following twitter closely as we always do. it seems like you've been welcoming the election result.

do you think it will really be a big boost for your broader sector and for the economy next year >> yeah. well, first of all, it's probably a bad idea to follow me on twitter, especially during election season. but i do think that, you know, irrespective of stock market and some of the economic indicators that's tied to, when you look at america's long-term competitiveness, whether it's the global partnerships that we have with important nations that we trade with and we depend on, whether it's immigration reforms to make sure we have the best talent in america, whether it's stem education or making sure we have decisions that are made on the foundation of science, i think the direction that this country is moving in is a very positive one that's what i'm most excited about, is how the biden administration will be able to go and drive really long-term competitiveness in the foundation of our business environment. >> i just wonder whether there is a little bit of

overconfidence in terms of what might be coming from a biden administration, talking about silicon valley in a "new york times" article in january this year he said there's an arrogance about it, silicon valley, overwhelming arrogance they are the ones we can do what we want to in the same article he said section 230 can be revoked he was very critical of facebook do you not think there could be a wave of regulation coming toward big tech? >> i think that regulation was coming, or at least the risk of that regulation was coming under any administration so, in terms of how do you regulate tech, whether it's social media or large marketplaces, i think these are important topics, no matter what party it is that is in the white house. i think the broader issue that i think businesses of all size, tech and nontech, depend on is about having stable global marketplace where companies can compete for talent, where we can compete for customers and where

you have a longer term set of thinking around where the market is going i think that's the kind of stability that business leaders are really looking for and certainly are optimistic about under a biden administration. >> first of all, aaron, we appreciate you coming on and talking politics, because not many ceos will necessarily come do that. you've obviously been a supporter, a fan of biden, and outspoken of that. as far as disruption, though, are you worried that president trump has refuted -- refused, now more than a week out from the election, to concede some top members of the republican party, it looks like, are backing him. there's talk it could not be a smooth transition of power do you see that as potentially disruptive for our economy and our society? >> yeah. i think i'm a massive believer in our democracy and the power of our democracy i think it's very much a core part of our democracy to have a smooth transition of whoever is

taking in that leadership position i think that's incredibly important. i think my views would be very similar to, i think, the broader business community you saw the statement the business round table put out a couple of days ago, which is we want to be able to move forward now as a country and have very, i think, clear partnerships all around the world we want businesses to be able to understand, you know, where the country is going it's certainly much easier to operate and run a business when you have stability in the broader kind of macro environment, especially geopolitically i think that's what business leaders are look forward to and certainly we would love to get past this phase as quickly as possible. >> tying in the election and the pandemic and where we are going into the second wave, aaron, what are you generally -- i know you're in a quiet period but generally what are you seeing from your clients? what's the level of enterprise tech spending and confidence right now? >> yeah. i think, you know, certainly what, unfortunately for, you

know, the health care crisis, what this pandemic has done is really accelerated digital transformation and it's caused businesses to look at how they're operating, how they serve their customers, how they're running their teams, workforces and workplaces and really moving toward a more digital first approach so even -- and we hope this happens as quickly as possible, but even when a vaccine comes out and even when it's healthy to go back into the office, i don't think that we're going to all of a sudden just go back to working in the way that we did maybe a year ago or farther, which is to say that, you know, i think we're moving to a world where you're in the office or you're remote, we have a digital first way of working, we'll rely more on cloud-based technologies and digital technologies to do our work and companies will want to choose how they want their culture to adopt to that do they want a remote culture, flexible culture no matter what, we'll have a digital first workplace in the

future. >> let's talk about the impact of 5g on various parts of the tech industry. do you think the impact is as significant as the impact of covid in driving more digital adoption >> i think 5g is -- covid certainly is driving the very immediate near-term transformation to our digital and cloud-based technologies 5g is much more one of these foundational technologies that it will be more over you look over a ten-year period and see with faster internet speeds, what types of experiences that we could go deliver to consumers and businesses it's a much more broader transformation happening in technology i wouldn't put much stock in it in the near term anything that continues to impr improve our global infrastructure, the network, the speed of the network and data transfer is going to be very powerful for the future. >> aaron levie, thank you for joining us. >> thanks for having me. >> ceo of box.

after the break, luxury goes electric how bmw plans to compete with the likes of tesla and other re red-hot v names next and later strauss zelnick will join us, and whethener w consoles from x-box and playstation will provide a big boost into the holidays. i have an idea for a trade. oh yeah, you going to place it? not until i'm sure. why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator. voila! maybe a couple throw pillows would help. get a strategy gut check from our trade desk. ♪

36 minutes left of the trade. dow is down about 100 points

phil lebeau has the details. better late than never >> well, you know, they've been doing electric vehicles for some time at bmw. it's not been a strong start a couple of years ago, people said what, that's a bmw? a very dowdy looking vehicle they're hoping to change that with this vehicle. it's scheduled to come out in the united states in early 2022 with a range topping 300 miles this vehicle will be built in germany, imported from germany over here to the u.s it's one of 12 vehicles that the german ougautomaker will be introducing over the next two years. why is bmw making more of a concerted effort when it comes to electric vehicles they've got to catch up to the competition. when you look at bmw versus tesla, and we're talking about global sales here, no comparison at all by the way, those bmw electric sales also includes electrified

hybrids not pure electrified vehicles only. keep this in mind. in california, which is by far one of the largest ev markets in the world, the tesla brand now outsells the bmw brand not just for evs, for all vehicles this is at the heart that bmw needs to change. it needs to become a true competitor to tesla. >> i imagine in europe the regulators would want them to take on tesla. >> sure. >> since it's a european company. >> absolutely. >> and speed up electric vehicles over there. what's the demand look like? >> it's improving in europe, because so many governments are saying we're getting rid of diesel we're changing the requirements for emissions. there's a push for evs in europe and bmw wants to be part of that. >> the question, i guess, phil, will be whether people describe the ix as dowdy, like they obviously described the i3. >> that i3, when it first came

out, the first time i saw it and first time we drove it, i was like this is a bmw bmw would probably argue it's done well, it's had decent sales around the world it's not a comparison to tesla it just is not and, you know, for the first time out of the box, they could do better. so we'll see how they do this next time around when it comes to the ix and fewer electric vehicle. >> thanks so much for that. >> s&p is up about .5% still ahead blackrock's rick rieder will join us. pfizer vaccine use will give the market a long-term boost we're back in a couple of minutes.

dow down 125 time now for daily coronavirus tracker. in the u.s., the rate of infections is accelerating today. seven-day average of covid cases is up more than 30% from just one week ago infections are rising in 49 out of 50 states, according to johns hopkins. georgia is the exception texas has officially become the first state to exceed 1 million total coronavirus cases. new york is also seeing infections on the rise again, reporting the highest number of cases since may.

governor cuomo announcing a new curfew to try to curb the spread all bars, gyms and in-person dining must close at 10:00 p.m that begins friday north dakota's governor announced covid positive nurses are allowed to keep working amid a deadly surge of the virus in that state, north dakota has become a hot spot and both the hospitalization and mortality rates hit record highs there this week. both the dakotas are getting slammed right now, wilfa so many others are around this country. >> it's really picking up, but it hasn't derailed the markets really yet of course, we hope it doesn't need to do so. but something will keep coming up, we'll talk about the global pandemic with jens spahn in the next hour, about 410:00 p.m. cases have been picking up in germany as well, and they went into an elevated form of lockdown themselves on the 2nd of november, a week or so ago. under 30 minutes left.

time for a cnbc news update with sue herera hi, sue. >> hi, wilf. hi, everyone president-elect joe biden now leads president trump by more than 5 million votes 77 million votes is the highest count in u.s. election history trump's 72 million is the second highest. in georgia, the senate run-off races are already under way. florida's senator marco rubio attending a rally for his republican colleagues and being blunt about the importance of the georgia senate seats. >> this is literally, you know, the showdown of all showdowns in terms of politics and what it means. we don't want to win one of them we want to win both of them. we need to win both of them. and take a look at that. only in new york a swan on the subway it apparently did not raise any eyebrows a woman found the injured bird and took it on a train to get to a wildlife clinic. the swan is now named bay

because she was in the jamaican bay and is being treated for lead poisoning hopefully she will be well very soon what you see on an ordinary wednesday in new york. that's the update for this hour. sara, back to you. >> at least there's action on the subway. >> exactly. >> sue, thank you. under 30 minutes before the closing bell dow is down about 100 points it's the tech stocks, nasdaq that's out performing today, still down on the week versus the broader market s&p is up .5% thanks to strength in those tech groups ceo of cowen and the role private capital plays in drug discovery. that and much more when we come back

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fda gave emergency use authorization to eli lilly's vaccine candidate. welcome back. >> good to be here nice to see you. >> so are these kind of game changing innovations that we're seeing on the covid front from some of the big companies leading to more activity in the private markets, whether it's going into venture capital or private equity or even ipos around the other biotech names >> i certainly think it's a validation of what's happened over the past decade for sure. if you've seen the amount of money that's been raised for biotech companies in the private and public markets it's probably close to $300 billion over the last eight years 200 billion of that probably in the public markets, and access to that kind of capital from, you know, pension funds and from mutual funds and hedge funds is really what's fueled the ability for the industry to grow up significantly. when you look at what pfizer has

done, they're beneficiaries of that capital formation we talk a lot about having the importance of biotech companies getting access to capital. that's the lifeblood for them to do drug discovery. when you think about how quickly they have mapped this virus from a genomic standpoint, having targeted therapies as well as vaccines that the one that p fichlt zer has announced, that's what they've given to biotech companies in general to develop this technology. it's really remarkable. >> how much more room to run is there in your view for the whole biotech trade? >> yeah. so we think we're still actually in the early innings it's hard to say that, because we now have 500 traded biotech out of the 600 companies listed in the united states it feels like it's been going on for a while. with the that 200 million that's been raised in public money, about 700 billion has been taken

out by mergers, by big pharma, big biotech that's bought smaller biotech companies. there's been no fund formation, which there has been, you have about $500 billion of incremental capital that's looking to make investments. i actually feel like the challenge for the industry is finding high-quality management teams. you can only take so many companies public a year, because the science is hard to understand and it's not like taking, you know, consumer companies public. it's much more difficult for people to get their heads around these drug therapies and so when you look at it, the dynamic sets off in the next decade, particularly tools and diagnostics, genomics and all these things are going to make drug discovery much more robust over the next decade. >> jeff, pivoting away from biotech, i wanted to ask you more broadly what you expect as we head into 2021 on both the ipo and m & a front? there was quite a rush of it ahead of the election. do you think that's brought forward a lot of action and that

we'll have a bit of lul at the start of next year >> well, actually, we're not seeing a lull coming it's hard to say that with all the financing that's gone on in 2020 that it will be the same in 2021, but we're certainly not seeing a slowdown in the number of companies that really want the access to capital. the lasting effect for corporate america is you have access to capital in 2020, you're a winner may not be apparent today with your stock price, but it's just a matter of survivability. and those that have access to the public markets will fair better than those who didn't so i think you'll continue to see companies now relook at the public markets as a viable way to grow their businesses as it relates to m & a, we're starting to see that tick up again, particularly where we tend to focus more there's more mandates being one. and we think that as people figure out how to do m & a virtually, and i think travel picking up probably toward the middle of next year, you know, there are a lot of people who, again, came through this period

of time where maybe they thought they were going to sell, you know they had a scare now they're going to be anxious to print a ticket, and we think we're seeing that in our pipeline, 2021 should be a good year for m & a. >> jeff, in the short term, what about the election ceos that you're speaking to in any way nervous that we haven't had the president declare that he is the loser? >> eh, i mean, he's not going to do that and i think everybody knew that going in it's just not in his nature. none of what's happening is a surprise to the ceos that i speak to they may have their own feelings about it, but it is what it is and the public has spoken. there will be a new president in the white house, most likely, on january 20th, just according to plan and the markets reflect that and so the ceos that i know were worried about things happening in a super tight election. we waited an extra four or five days in the larger scheme of

life, it's not that big. so, people are moving on, under the presumption that joe biden and kamala harris take office on january 20th. >> jeff, thanks so much for joining us. >> good to be here and it's good to see both of you. >> much appreciated, likewise. >> thanks, jeff. we've got a market flash it's on multiplan corporation. >> in response to a short report issued by muddy waters multiplan says they categorically reject the inaccurate assumptions in the muddy water report, premarket tomorrow and will respond in full to that report. now, that is actually a shift. they were initially scheduled to release their earnings after the close of market tomorrow now it's before. you see the shares down 21% on this report where muddy water says it's short the shares and credit miltplan. multiplan was required by a spac, banker michael klein,

which was the largest spac transaction at the time ever, $11 billion. this says it's going to lose united health care, that they've formed a competitor to multiplan that offers lower prices, fewer conflicts of interests and expect that to have an impact on revenue the next two years, amounting to about 35% you can see there, shares are coming back somewhat, ever since that report was first published, but still down about 20% sa sara >> muddy waters has had big hits with chinese companies this one should be interesting to follow. leslie, thank you. leslie picker. up next, chipotle goes digital. and wells fargo says it's time to get aggreivonsse banks those stories and more when we take you inside the market zone, up next. policy you no longer need? now you can sell your policy, even a term policy, for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized that we needed a way to

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cnbc's market commentator mike santoli to break down the trading day. and josh brown as well look at the camera, josh major markets are converging yet again. this time the nasdaq is outperforming while the dow is trading in the red we're flipping the script on yesterday and the day before tech leads, value lags whichever it is, it does feel like the path of least resistance for this market is higher and that there's a

underpinning with vaccine hope and election clarity how much good news is priced in? we'll ask it to josh i think there's an issue, mike, with your mic josh, how much good news is already in the market? >> well, i mean, even with today's reversion, you still have a really nice move for a lot of stocks. and, you know, dow stocks and russell 1000 value stocks. they may be down my colleague was jokingly referring to this as a mean reversion to the mean reversion, but they're okay they're hanging in there maybe not too much right now you look at the internals. i'll do santoli's part for him 85% of s&p 500 parts are still above their 200-day moving average. maybe we're a little too ebulant, buoyant 50% of stocks are above their

ten-day high, or above a ten-day moving average and close to highs. so we're not too hot short term. so it's a little bit of a push and pull look at the mean reversion, and going back to the primary trend, crowdstrike, etsy having a huge day, inexplicably, docusign, and the malls, the travel. it seems okay. most people aren't all the way to one side of the boat. most people, a day like today, it's a bit of a push. >> mike, obviously, the last month or the start of this month, sorry, has been driven by cyclicals in terms of the move higher do you think that can be derailed fairly easily if we see a few more states have to impose semi lockdown measures or even more severe lockdown measures or is the market willing to look forward to a presidency that will embrace stimulus and a vaccine? >> certainly will be tested by that dynamic where in the short term presumably we will see more

restrictions applied we're not going to see, necessary lirks an acceleration of a lot of the macro numbers. i don't think this is about stimulus right now it's hey, that would be nice if we got there. with the vaccine news, maybe more to come, do we have the patience to look across this period and feel as if the cycl c cycliccycli cyclicals have a light at the end of the tunnel and the tunnel isn't that long? it's not necessarily like everyone is going to be patient to wait to get better. the big growth stocks carry us again or not do we have to settle back in the overall market in order to reset? >> wells fargo says now is the time to get bullish on banks historically low valuations and unloved and uncrowded status presented an opportunity for investors, says mike mayo. it points to two potential upcoming catalysts, potential covid-19 solution in the vaccine

and reflation trade not dependent on stimulus from washington the sector has fallen behind in recent years on top of that. kbw bank index is up already, mike, 11.5% or so this week. so, i guess a little part that have move has already played out. the bond market is closed today, but a lot of the jump of late has been just tracking the move higher and the yields the question when you read this note is whether even if yields now stabilize or, dare i say, pull back, can the banks continue to rise without that? >> yeah. they're benefiting from not yes the yield move but the fact that laggard stocks, underowned stocks, cheap stuff. that's all been picked up in the la last, you know, few weeks or especially the last couple of days it's been carried a certain distance on those trends, very much unclear what happens beyond that you have to believe if there was

a renewed slowdown fear that they would not be immune to something like that. i don't think it's -- you know, i don't think there's necessarily a whole lot of edge in terms of name by name fundamentals we're talking about here they have had a great move they're well off the bottom. relative trend has improved and maybe you can get some comfort with those things. >> josh, don't think you've been tuckly enthusiastic about the bank stocks when we've asked you in the past. has anything changed for you are you looking at them now with higher yields and potentially better economy down the road >> well, asking mike mayo if he likes the banks is like asking spike lee if he likes the knicks i love mike mayo but come on already. >> hold on he has been bearish at some key times like ahead of the crisis but i get your point. >> can you remember any of them? >> no. i was still at school, but a lot of bank analysts, i agree, the last two years have been calling

for now is the time. and i completely get your point. >> all right, all right. listen, i hope so. i'm not like rooting against bank stocks, but what are we saying is their competitive edge once upon a time in the last cycle, the banks did something really great that most companies could not do to compete with them, which is build out physical branches in every town in america and, as a result, become gigantic mortgage originators, which led to a whole virtual cycle of all this other activity we're now having another mortgage upcycle and these bank stocks are not reflecting that. they're not benefiting from that there are many reasons why one of the key reasons is nobody starts their search for a mortgage with the bank on main street in their town anymore that advantage has gone away it's now a google search, which sends them to rocket mortgage and then when they need to move cash, they're using paypal and

square, and then when they need insuran insurance, they're using lemonade or root, and it's on and on, just this endless, endless disruption to these advantages that they used to have so now you look at wells fargo you say what do they do that anyone else can't do i don't really know. they have a marble lobby they have a pen on a chain i hope these stocks can recover. it will be good for the market i own jp morgan. this is not just about rates but companies that sat along too long and allowed start-up competitors to come along. and when you talk to somebody who is 30 years old they don't care if the bank is near their house. it's no longer a competitive advantage. so what is do they have the best tech not really not really do they have the best reputation nope everybody hates them what are they buying here? there's not even great dividend yields in this space

other than that, i like them a lot. >> sounds like your answer is no nothing's changed there. by the way, you're both run this call didn't come from mike mayo but the equity strategy team from wells fargo led by christopher harvey. >> somebody said mike mayo in the intro. >> i have to say, josh i do love your drive saying pens on chains you're right, that does highlight -- >> pens on chains for 2021 big pivot. >> and marble. let's talk about the restaurant business, rising coronavirus cases, falling temperatures, proving to be a double dose of bad news for restaurants around this country kate rogers has new details for us kate >> hey, sara coming off the worst week since mid-september, sales and traffic dipped again for the week ending november 1st according to black box intelligence sales fell by 10.5% year by year back into double digit traffic territory, sliding as well down 16.5% year on year

big players in the space, mcdonald's said it would test a new design without any indoor dining, digital and drive-through orders and chipotle announced a digital kitchen concept all for orders place placed online and via third-party delivery service also no indoor dining in that space either. >> kate rogers kate, thank you. chipotle ceo brian nickel will be joining us tomorrow to discuss the first digital-only restaurant we'll talk to him about what he's expecting in this second or third wave, whatever you want to call it? mike, how are the stocks holding up whenever we talk about the restaurant woes of these public companies it makes you think about all the mom and pop businesses and the small businesses out there and the restaurants and how they're able to keep up where they can't do things like this. >> that explains the amazing performance of the chipotles of the world.

even starbucs, to a degree they've held on to the gains it's up a lot in the last couple of years, of course. mostly because, by default, they'll be marketshare winners out of this. i think it's a sad story that the big competitors that are well capitalized will be able to dominate more than they otherwise would, probably because of the way the small business landscape looks. >> rebound in china is helping many u.s. companies deliver strong sales growth this earnings season. seema mody has the details for us. >> that's right, wilf. chien camera did impose one of the strictest lockdowns earlier this year and now with a low covid rate, activity is starting to rise. keep in mind, travel restrictions are still in place. that's why companies that have built their footprint inside china have a leg up. can dew goose on the call said adding physical retail stores helped its capture local chinese tourist demand within the mainland you are starting to see more chinese take trips around the

country, helping u.s. hotels, marriott's occupation rate up from 9% in february, and even if you look at marriott and hilton, both of those hotels very aggressive in building more hotels during the pandemic, versus the other chains out there. >> seema, thank you for that josh brown, quickly, can this boost u.s. exporters or names like apple, or do you think equally offset by more lockdowns in europe? >> yeah. i think the latter is probably going to be the case like i don't -- i don't see anyone materially moving their earnings estimates based on any of the positives there and, to your point, like the renewed lockdowns, that probably puts pressure on sentiment, which affects the multiples we're paying for these stocks. i wouldn't use that as a reason to buy or sell right now. >> we've got over two minutes left in the session, mike. what's been jumping out to you in the internals today >> really, some weakness, wilf seems like we have one or the

other formula on a day-by-day basis. either the indexes don't do much and under the surface things are much better or the opposite. obviously today say day you have almost twice as much volume to the downside in the new york stock exchange as you have to the upside that's been sagging all day even though the s&p is up it's a narrow group of very large stocks that's having a bounce today and is flattering the index, at least the s&p right now. another way of viewing this, the equal weighted version of the s&p is like having a great week. however today the s&p itself catching up right there. so it seems like on a day-to-day basis either the markets puts its chips on red and black that won't be that way forever but right now that is what we have going for us. volatility index gave way, into the low 20s earlier. so down in the 22s for a while now. it continues to erode. of course, keep in mind, s&p itself is within a very short distance of its all-time closing

high it's within a few points you would expect this to have some downside. die aye do think the erratic action underneath the surface might be able to keep it above 20 for a while, which used to be the line between normal and not normal markets, sara. >> how much did these tech stocks get beat up apple is leading the dow today lot of stay-at-home winners are back how much damage was done over the previous few days? >> what's interesting is the overall damage that's been down has been significant they're all down 10, 15-ish percent from their highs which go back to early september or late august. what's interesting is they haven't yet really upended their longer term off trends they were so overbought and stretched to the upside that they're still kind of down a fair bit in three months and yet not yet in a downturn. it seems like you can play it either way. >> we're under a minute to go into the close we are seeing the dow recover off the lows, down only 20 29

pointers so. it has underperformed all day. s&p 500 remains positive and you can thank the technology stocks. technology is the best performer today. consumer discretionary consumer staples also catching a bid. materials, energy and industrials are the losing group. it's really a flip of what we've seen over the past few days. the nasdaq breaking its two-day losing streak, still down about 1% on the week with the s&p and the russell outperforming in the dow for the week so far. just not what happened today, wilfred. >> absolutely a reversal of the theme in a week. welcome to "the closing bell." i'm wilfred frost along with sara eisen and mike santoli. dow remains up 4% for the noo week the nasdaq led the charge today, up 2%, but is still down close to 1% so far this week

tech, consumer discretionary, the best performing sectors, as you might expect, based on the flip of themes so far this week. materials, energy, banks toward the bottom of performance today. again, speaking to that rotation from the first two days of this week coming up, blackrock's rick rieder will weigh in on how the coronavirus vaccine will have impact on the economy. and mark smith from ubs joins the conversation very good afternoon to you, mark josh brown, i thought i would come to you first of all on a couple of individual names if people wanted to get exposure to the stay-at-home winners, 2020 winners, are there any that have pulled back significantly that jump out to you as being attractive entry points? >> i wish i was on with you like a few hours ago, because they were all lower but, yeah i think like this notion that just because there's a vaccine we're going to go back to handing each other bricks of

filthy dollar bills is kind of silly. i think long-term winner is paypal and when they hit that stock, because it's like a risk-on day or whatever, it's a vaccine day, that's -- you want to look for buying opportunities there you had a big one over the last two days crowdstrike, too the idea that we'll ever have a lessening need for cyber security is laughable. it doesn't matter if there's a vaccine. you could have five vaccines you still are going to need protection and crowdstrike is rapidly taking over this entire market with their threat graph those are two stocks that any time we have those days where all of a sudden people get really excited about buying malls, look how red those names are and look for opportunities to get long. zoom, they hit the stock 30% it's ludicrous we're not going back to casual business trips every 15 minutes. zoom is here to stay it's now part of the vernacular.

we zoom each other, left and right. that won't change, vaccine or n not. that's what i would say. look at those types of names. >> not the company that makes chains for pens then got it. >> mike, what happened today why did technology take the lead once again was there a catalyst or just the absence of new vaccine news that's back to focusing on rising hospitalizations, cases and some of the damage that we could see as a result of some of these lockdowns economically. >> i'm sure that was part of the psychology of it, sara although i do think it was just a matter, in the very short term, these things went opposite directions far and fast over the past couple of days. it's been a constant whipsaw back and forth this hasn't just been about today and this week and since we got the vaccine news on monday morning. it's been since the election, it went all the way into the growth trade. in the days before that, it went all the way against the growth trade because it was supposed to be all about stimulus.

i think the market in general is swinging widely, thinking about what is its best position for the news flow over the next couple of months it's not necessarily about picking the longer versions. today was the mean reversion the bond market being open, source of pressure have been yields going up. they probably wouldn't have been up today but definitely relieved the presence of higher yields as a pressure point on the big growth stocks. >> mark, is optimism related to the vaccine news come too soon in the market? >> well, yeah. if you look at the company that just released the great number, they didn't do too hot today there's a reason for that. we don't have fda approval most folks are saying they don't even want to try the virus -- the vaccine. that's a major problem, if you look at all the polls of people who say they don't want to try it there might be too much optimism around it. i think josh said it best that,

you know, tech is here and it's here to stay because we don't know when we'll get back to, quote, unquote, normal and so the stay-at-home stocks are the ones that benefit the most from that uncertainty. >> but at what valuation are you willing to pay for that? and which ones look best to you? >> well, listen, the robinhooders are really showing they're in it for the long run they're ready to take their checks and all these tech stocks as long as we're all still on zoom and we're not in the office, then you've got to go with the tech stocks because that's where people will think the growth is going to be. it's not going to be coming from the travel, the airlines, hotels and hospitality. people aren't traveling. >> mike, in terms of the performance that we've seen sector wise this week, do we think that yields have been a key factor what are we expecting on the yield outlook? >> for sure.

it's interesting you would think the newsflow of the last couple of hours even would be muting for yields yields would probably have a hard time making headway if it's all about an accelerating economy and after a clear vaccine gets in there. who knows how we handicap those. it's been consistent with the move into cyclicals and away from the big long-term growth plays. i don't know that that's necessarily going to be forever. there's no magic number of yields that matters. it's how the trend is driving floes back and forth headlines on moderna is going to follow up maybe with more vaccine news we'll have to see if it's taken as incremental good news or whether we're working under the premise that we'll have these coming to market relatively soon. >> moderna, more than 8% right now. thank you, josh brown and mark smith, for weighing in on the market today we appreciate it >> boston fed president eric

rosengran talking with cnbc europe earlier today about the positive vaccine data from pf pfizer despite the positive news he gave a broader view on the economy. >> it's certainly good news. my own forecast for the second half of the year would assume it would be widely enough distributed at that point we should have robust growth given the fiscal monetary policy we have right now i think the next six months will continue to be pretty choppy. >> for more, let's bring in rick rieder, ceo of global fixed income and global allocation investment team. glo good to have you. welcome back. >> thanks, sara. thanks for having me >> it's hard to know how cautious to be right now, given the short term, the long term, the vaccine timing and the stimulus question. this market has run, look at the s&p, 63% off the lows. we're 2% away from a record

high do you guys at blackrock think it can continue to climb >> yeah. i think equities are going higher it's going to be choppy. you've talked about it the covid news is going to be -- my guess is, you'll see continued acceleration that will make people nervous, but the economy is going to operate pretty well. i think the comments earlier about how the economy has operated virtually, when you get down to it, when the fed puts this much stimulus in and hearing eric's comments i think we're right, the fed is going to stay in this accommodative mode. when you put that much in and you add fiscal stimulus, and we'll get more fiscal stimulus, or we need to. look at the datea retail sales, housing, employment data there will be some concern about the chopiness, but i think at the end of the day the economy will be in pretty good shape. >> so, you just articulated the view for why yields have been moving higher. so now that we're around 1%, how

high do you think they will get, or the fed will allow them to get? >> yeah. the second part is, you know, people seem to know the answer by the way, i don't think the fed sits around the table and says 1%, that's the exact number listen, i think yields can go up a bit higher than they are today. the vaccine news, no matter how we talk about implementation, distribution, implementation, et cetera, it is good news. we are moving down a path that is going to be ultimately better so is the fed going to get in the way of yields moving moderately higher? i don't think so i think we've seen a decent size move so, you know, i think yields can move a little higher can they move another 15, 20 basis points i think so i don't think they're going much higher than that i think the fed will promote that for a long time. >> rick, do you think markets will get a little bit spooked in the next month if president trump still maintains that the election is not over

>> you know, markets hate uncertainty, wilfred they do not like uncertainty at all. i'm blown away by how well the markets have taken to, a, the covid news, b, the fact that you still do have some uncertainty in terms of the election dynamic. you have uncertainty in terms of the senate for sure. that will play out for another couple of months markets, any time you eliminate uncertainty -- by the way, we have we certainly have gotten a number of results out of the election we certainly got a number of results in terms of what's happening with a vaccine volatility will stay reasonably high for a couple of months. that said, when you finally take the tabilation out of the market, the market will be higher but i think it will be uneven along the way. >> what's your five-year view, rick, on rates for u.s. bonds? i get your point that in the short term we had a leg up and maybe that means in the short term we don't have another big move

if the economy does recover and covid is behind us in a year or two, where will rates be by then >> wilfred, i'm trying to get through the end of the year. if you take a step back and think what is happening, we do have an improving economy. resilience you see in the u.s. and in china that are on the right part of -- >> we'll see if we can get rick back. >> oh, no, we lost rick rieder. >> key point. >> too bad bummer for us. i was waiting for that answer. rick rieder from blackrock we'll work on that connection. moderna, we have breaking news on a vaccine meg tirrell with the details meg? >> moderna has just reported it has reached the point where it can take an interim look at its vaccine trial. they don't yet have the results. those will probably come within days but essentially they're

saying they have accrued enough cases to take that first interim look they've seen an increase in the rate of case identification over the last week. as a result, they expect to have more cases to look at, to evaluate whether this vaccine works than they expected they were going to take this look when they had 53 cases of covid-19 in the trial. now they say they're expecting to see more. the data is being prepared to be submitted to their safety monitoring board for analysis and recommendation moderna is still blinded to whoever received placebo and vaccines they don't know yet how well their vaccine works. we'll hear from them potentially very soon. this is the first sign that this data is coming soon about whether their vaccine works very well the stock was up so much today after comments from dr. anthony fauci at a financial times event where he essentially said this vaccine is so similar to pfizers, he would expect to see similar results. 90% efficacy now we're told today to respect

these results imminently guys >> we'll stay tuned for that, meg. yeah, a lot of people were looking at moderna because it shares the same sort of mrna technology here. what does it mean for a j & j, who we heard from the ceo today, and others if you get a 90% efficacy rate for the pfizer vaccine won't people referer prefer to get that one than some of the others if they don't reach that high bar? >> certainly depends on what we see from the phase three trials for the next vaccines to come. another point dr. fauci has been making this week is that the vaccines have different technologies but all focus on the spike protein of the coronavirus. that shows that we're on the right track and the vaccine is targeting that work very well. we don't know if they'll all hit a 90% efficacy bar j & j's vaccine is one dose. that's a benefit these vaccines may work

differently for different groups of people and there's not going to be enough vaccines at the beginning. we may not be able to get to choose you may get what's available and you'll be lucky. >> meg, thank you for that we look forward to getting the data whenever it does exactly arrive just want to pivot back to rick who is still with us or back with us. your medium turn or long-term outlook on rates and i'll add to that whether you think that's for the highest price stocks in the year or two ahead. >> yeah. i think the connection broke because i was predicting five years out was too hard i think rates can go out two to three years, we'll go out to a two or three percentage rate environment. but it's going to be more of a hockey stick dynamic from there. i don't think that is going to -- if you take the discount rate on equities the next couple of years and think about the alternative that you have with fixed income, where treasuries are, where agency mortgages are,

interest rates will stay low for a while and i think it will promote equities higher because there's no alternative cash yield in equities is still pretty attractive. >> thanks for being here good to see you. >> thank you. >> up next, germany's health minister will join us to talk about the impact before money, people traded goods. tools, cattle, grain, even shells represented value. then currency came along. they made it out of copper, gold, silver, wampum. soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. that's why it's time for digital currency

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germany reporting 61 covid-19 deaths today, it's highest spike since april. total cases topping 705,000. despite being one of the better performers during the first wave, german chancellor angela merkel warned that this wave is slightly stronger than the first. new partial lockdown measures earlier this month to curb the spread of the virus, including closing bars, cinemas, swimming pools, gyms and canceling large events i spoke with the general minister of health jens spahn. >> all countries around us had very high incidents in the past week and it was expectable that sooner or later it will somehow move into germany, but what we saw actually is a virus that

never was gone it always was there. it kind of hibernated in summer. now that we are back in autumn and winter, when it's colder outside and now we're actually more socializing in the past weeks over the summer. more events taking place we see the virus sitting back and that needs measures again, restrictions that we have in place here now in germany. >> as you said you put the restrictions in place on the 2nd of november. the intention was for just one month. but the statistics today, 18,400 new infections, 261 new deaths, does it make you think these restrictions will have to be in place for quite a lot longer than intended? >> actually it's too early to say. the dynamic is slowing down. what we see, we still have an increase, yes, but a very lower one. very much lower one than we've seen the past days, last week, for example, and what we have to see.

we need patience, actually, because with the numbers of today actually are the infections that have taken place one week or more days ago. so, it will be the end of this week that we might see the results of the new lockdown we have to put in place now in november very harsh one for many of our fellow citizens. that is why we really want to wait until the end of this week, till we see any results and then to debate how to move on. >> jens, many people have now suggested a double-dip recession for the eurozone do you think that applies to germany? >> well, actually, again, it's too early to say because what we see with our neighboring countries is that if you wait too long till you lock down, then you really have very high numbers, and the lockdown even needs to be harder. compared to all the measures in place in our neighboring countries, the measures we have taken here in germany, focusing on the private and the ledger

activities more or less, kindergartens and schools still open, a high priority for us that they remain open. the earlier you take measures, the better you might prevent the economy for even harder lockdowns. and actually i would say it's still too early to say we do see that the industry is still doing very well, that exporters back again but for domestic demand, this is a hard time now. >> i'm sure you saw, of course, the vaccine news here in the u.s. earlier in the week the ceo of pfizer said oncnbc it was a game changer. do you agree is it a game changer >> well, once it is there, the vaccine is definitely a game changer. it makes me kind of proud that a german company, corporation partner of pfizer actually developed it here in the city of

meins. of course, it's very encouraging to see the data they've just published, to see that the vaccine they are developing is making a difference, but that is not yet the official approval. of course, we need to see more data and then we need to have an official approval, but you see, wilfred, what it gives is hope and confidence in a very, very for the whole of europe, the u.s. and many countries in the world that now we still need to take care, that we still need to restrict our social life but at the same time, there is a kind of civil strife on the horizon that next year, the next autumn, the next winter might be better that is very important and encouraging for people, i think. >> i know, jens, that you had the virus yourself i wonder whether that experience changed your perspective at all on everything and, of course, as you know, the president here had the virus after he recovered he said,

quote, don't be afraid of covid. do you agree with that sentiment? >> well, first of all, it's a difference to deal politically and kind of organizationally with the virus or to really get it and within just minutes, i had to get back and end all my business, and that is what many hundreds of thousands of germans are experiencing every week, actually right now so actually i just had to experience it the same way, which is helpful for all political decisions i have to take at the same time it makes kind of humble. because i'm 40 years old, i'm quite healthy, but at the same time, you really don't know how this virus in your body is developing there are other diseases, unknown diseases where we really don't have an idea where it might go with this one i had no idea at all for myself and so that makes you humble and

grateful that we have a health care system that takes care. >> i wanted to ask very quickly as we wind up, jens, i'm sure you've seen the results of the u.s. election here i know chancellor merkel has spoken to president-elect biden and congratulated him. are there hopes in germany that dialogue will be smoother in the four years ahead between the two countries? i guess specifically as it relates to your department are there hopes that the world health organization will have a smoother relationship with the united states? >> first of all, of course, we all followed with high excitement the election in the u.s. it's the most important free election in the world. and, of course, for us, was the most important ally outside of europe that is the u.s it is very important that there is a good relationship and for me, it is a clear responsibility for us as the government of germany, for me as

a minister here in germany that i have a good relationship, try to partner with the ally in the transatlantic partnership and that we need to work together with any elected government in the u.s. that's our job that's what we did in the past four years and that is what we will do in the upcoming four years. and there are yeissues that remain the trade issue, how we deal with china, the question of defense spending in germany and europe i'm very sure these issues will remain, but my change is the way of how we communicate and the way we do it especially on w.h.o. and the world health organization, i really do hope that the u.s. will stay in they are one of the biggest supporters financially, technically, politically after w.h.o. so far. it's really good to work together with the u.s. within the w.h.o. and i really would wish that together we do the reform needed for the w.h.o.

it needs reforms, no doubt but you should do them from with within. >> broadly speaking, jens, within government in germany, is there an optimism that partnership will be stronger, whether it's w.h.o., the eu, nato, with the u.s. in the next four years, than it was in the last four years? >> well, there is -- first of all, there is just the knowledge that issues will remain the same more or less there are issues that need to be tendered but the way we communicate on the issues might change we want to work very closely with the new government, the new administration, with president joe biden and kamala harris. at the same time we are aware that within the past years, actually, it began earlier than just four years ago. we see a political divide. by the way, not just in the u.s. and other western countries as

well and that this election was very much about this divide once you start to separate between parties as a kind of the good and evil, and it really becomes a kind of ideological debate, it's very hard to reunite afterwards that is really what we all can just wish for. the past days were very hard to be for anyone who really likes or loves the u.s. from the outside, and that is what we definitely do. there's hard work that needs to be done, i would say from the outside if i dare so, for the u.s. government and the new u.s. president joe biden to bring back to a kind of reunification the society that has split so much. >> yeah. german health minister jens spahn there. sara, got a bit more in the end in terms of the sense of optimism and the sense of hope for better cooperation moving forward following the result of the u.s. election than perhaps i

expected to get. but very interesting on that front. and i think also very interesting in light of those extra slight measures we saw announced by new york today, for example, on his comments about taking steps earlier with less restrictions on lockdowns and hoping that that in the medium to long term hurts the economy less because it prevents the need for tighter lockdowns germany and other countries in europe have done that sooner than here in the u.s we have to observe and we hope, of course, that there are no recessions anywhere, but interesting his comments on that front. >> well, germany got a lot of praise in the beginning of all of this especially german chancellor ainge la merkel for putting in place measures early, getting citizens to wear masks and that sort of stuff how is it doing on a per capita basis versus some of the other european countries and the u.s. and everyone else right now? does it matter the question i am getting at is

does it matter, the leadership and what is implemented? >> we'll only be able to fully judge that next year perhaps when we look back on it. per capita within europe, they are at a peak for their deaths compared to the highs which came in april, but relative to the rest of the continent of europe, they're still doing, relatively speaking, better it's just relative to their own performance in phase one they're seeing it pick up. there's lots of implications we don't know the hard answers to yet. is that because of cross-border flows of people, germany specific issues, is it because of the colder weather or following the high socializing that took place in the summer months as mr. spahn mentioned? we don't know for sure yet their second wave stands out relative to their strong performance in the first wave but is still better than some of their neighbors in europe at the moment. >> yeah. another important conversation with someone who is leading the charge on that front in germany.

>> up next on the show, mike santoli is back to look at the comeback in cyclicals and whether they will remain strong into next year they didn't have a particularly good day today take two interactive ceo will be here to discuss whether a coronavirus vaccine could actually end up hurting sales and the whole stay-at-home trade. we'll be right back.

u.s. video game spending hitting record highs according to npd group topping more than $11 billion in the third quarter alo alone, up 24% from last year while gaming stocks have benefited from the so-called stay-at-home trade, so far shares of take two and activision are stronger. joining us for an exclusive interview, take twos ceo stra s strauss. >> thanks for having me. >> is it right or wrong to assume that if we do get a vaccine, fewer people out there will be spending money and time playing video games?

>> well, first, before we take any victory laps, you know, this has been a terribly tragic time. and the notion perhaps there's a solution on hotterizen is great news, no matter how you look at it that's certainly how we look at t we're very optimistic and hopeful that a vaccine will be brought to most everyone within the coming months. in terms of how it would affect us, selfishly, i'm not at all concerned. i think we've seen a systemic shift toward interactive entertainment. i think that that systemic shift will continue to create benefits for our company and our stray industry on an ongoing basis i think the trend of moving from linear to interactive entertainment has only accelerated. >> why what gives you hope that this is a more permanent or secular trend as you call it >> well, media consultancy did

some research and felt early in the pandemic there was a 30% increase in entertainment consumption and roughly the same increase, perhaps a bit more, in interactive entertainment consumption. they projected postpandemic versus prepandemic levels, we would still see about a 14% uptick in consumption. of course, take two has done a whole lot better than the 30 or 40%, and we expect to do better than the 14% what do i think drives that most importantly? i think what drives that is people's awareness, the interactive entertainment now delivers not just great characters, great stories, great graphics, great game play, but also gives you an opportunity to play with or against your friends no matter where they are, no matter what time it is and to build new communities of friends all around the world you can talk to people you can see your friends while you're playing video games and that zing with wishes our business from any other entertainment business and i think it's just the beginning. so i think the awareness that

you can consume interactive entertainment in this remarkable way is now dawning on everyone that will continue to benefit us. >> strauss, are you agnostic as to what hardware people are playing your games on? and in five years time, whether it's because of 5g, whether it's because of the better laptops, better ipads, better tvs coming out, will we only have one device or two device rather than five devices in our home because you'll be able to do work and converse on one single device >> that's already technically possible pcs are a great video game device they're already directly competitive with consoles. they will be directly competitive with new consoles. however, people like -- some people like to play on dedicated devices. i say the word agnostic but, of course, we care about the technical developments technological steps forward give

our developers new canvases on which to paint, new opportunities to increase the quality of what we do and to make better and better experiences. so, we're not at all unaware of or unconcerned about technological movement and we're incredibly excited about the new consoles launching this week, for example that said, yes, in five years, i think it is likely that people will be less focused on what the box looks like, or what brand brings it to you and more focused on what the content is. >> while we're on the subject of those consoles that are being released this week, what are your expectations there? and how much of it -- of a catalyst is that for you, for your business? >> well, it's no longer a catalyst it's also no longer a detriment when consoles mature this used to be a sign for a business as platforms were launched you would see a big spike in software sales as they matured

that would flatten and pretty quickly thereafter, you would see software sales begin to decline that. created a lot of uncertainty for video game companies that didn't happen the last time around for us. it didn't happen the time before that because of the quality of the products we put out. now for us and the entire industry, technological shifts forward are really only a good thing and i think that will continue for us, we're very optimistic. i think these are great new platforms. we have two releases, actually, at launch, borderlands three and bk 21 will be the only sports title in market for about a month for new generation platforms. that's exciting. it's all good news. >> and you recently did an acquisition. it sounds like a lot of the analysts are optimistic about what you did and upbeat about code masters f1, formula one racing is a big play there what else aattracted you to this why now after that stock had already had such a giant run-up, as so many in the industry have? >> well, look, it's about a

million dollar deal, a material deal for us. we've said we're willing to pursue inorganic growth when we believe the transaction will be in the first full year of operations we expect it to be eps secretive on an adjusted basis which is really important to us code masters is the leader in all racing games we think combining that incredible development expertise with our publishing organization should yield a great result. of course, the board of directors of code masters recommended the deal it isn't yet close if all things go according to plan the deal should close in the first quarter of calendar '21. >> strauss, thanks so much for joining us much appreciated. >> thanks for having me. >> up next, mike santoli heads etr e ceharts and has a look at whhethrent rally in cyclic cyclicals. stock slices.

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another mixed session. mike santoli has been looking at the cyclical stocks in particular mike >> yes, sara look at that, massive 65% snapback in profitability. this is from credit suisse who sliced it up this way. it's interesting overall s&p expected to gain 20%

after a big decline this year. tech, still good growth but nothing compared to the cyclicals. noncyclicals here, not necessarily impressive however, look at it over two years. in other words, this year, plus next year, and you'll see why there's a bit of hesitancy about betting on those cyclicals the hole is so deep this year, they're going to be down something like 50% from 2019 levels so if you go up 65% from down 50, it doesn't get you back to even that's the annualized decline in the cyclical sectors over two years. tech is still looking pretty good on an annualized basis over 2020 and 2021. and this is the push/pull here for a lot of investors, figuring out whether you want to just jump on that snap back trade or rely on just the secular growth companies, guys. >> massive differences in the multiples on the relative sectors as well, mike. >> yep. >> linked to all of that mike, thank you. the clock ticking on

tomorrow's tiktok ban and tiktok's chinese parent company says it still hasn't gten ota response from the government about its extension request. the latest on that showdown, coming up next 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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time for a cnbc update with sue herera hi, sue. >> tropical storm eta remains on course to come ashore in florida tomorrow around ft. myers, rain and very heavy winds have already arrived. the football game between ohio state and maryland has been canceled after a coronavirus outbreak within the terrapin football program the game will not be made up the news comes on the heels of four s.e.c. games being postponed this weekend due to covid-19 issues. the university of connecticut has put five of its residence halls under quarantine after an uptick in coronavirus infections right now more than 540 students are affected and listen up, the cdc is out with his thanksgiving safety guidelines, which may frustrate pandemic weary people looking forward to seeing their families the cdc says the safest option is to celebrate only with the people in your household if you do join others, the cdc recommends having the meal

outside and for each group, listen to this, bring your own food, bring your own plates and bring your own utensils. you are up-to-date that's the news update, sara back to you. >> it's going to be different this year. sue, thank you. >> absolutely. >> sue herera. >> up next, no shows, no insurance. out of work until at least next year broadway actors are facing the suncpect of losing their health we'll take you inside one actor's story, next. at calvert, we know responsible investing is hard. if you're concerned about the environment and climate change, how do you find companies that are driving the right outcomes? if you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities? for nearly 40 years, calvert has delivered competitive returns by investing in companies making a difference because we see value in doing good. talk to your financial advisor about investing responsibly

with calvert.

broadway has been dark since march. now actors are losing their health car sarah, it was just last year that caitlin was performing on broadway in a play that landed her an emmy nomination she is living at home. the shutdown leaving thousands out of work. now she faces a new work, losing health insurance >> i am out of work as an actor. i don't have that kind of money. 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 per year they are losing money every month. she has built up enough time to keep her insurance only until april. >> if i didn't have insurance, my health care costs would be insurmountable it is not like i am spending money on things that make my life easier. i am spending money on things that keep me alive >> to make things worse she is a type one diabetic. when she loses her insurance she will look at affordable care act. but switching insurance is not always easy and aca isn't always cheap for unemployed if they change things around she could stay on the same insurance

with less costs. but as you know, talk on covid has been going on for months >> disney earnings tomorrow. we will preview. change in plans. at fidelity, a change in plans is always part of the plan. as business moves forward, we're all changing the way things get done. like how we redefine collaboration...

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coming up disney and tiktok. what you should watch for from those two companies tomorrow we will be right back.

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

we are focusing on two key events tomorrow, earnings from disney and tiktok. julia? >> disney's earnings comes on the one-year launch of disney plus that app will be in focus. the question is how much did that digital growth make up for lack of theatrical losses. tomorrow is also the deadline the president set for tiktok should be sold the chinese government hasn't approved the 20% sale to oracle. it has appealed to review the actions. we have no comment from oracle, no comment from walmart and no

comment from the trump administration back over to you >> in the meantime, julia, if it is a national security threat as president trump says, it continues to operate fully here in the u.s >> it does continue to operate no sense whether they will get a 30-day delay beyond tomorrow or whether or not trump will decide to shut it down. >> julia, thank you. we will look forward to both of those things as we round out the day we come back to this question. is it growth or value. it has been cyclical value, small cap over big cap, stay at home plays much it is a push-pull every single day today was the growth winners what will you be looking for tomorrow >> the thing is it has netted out to the overall market.

i wonder if the high from monday morning, about 2% from where we close right now, will haunt things, whether we get there with growth or cyclical revival? i think at some point we get out of this tug-of-war, but not in the near term. >> we are out of time here on closing bell "fast money" starts now. >> i'm melissa lee and this is "fast money. tonight, pfizer under fire the company's ceo unloading 60% of his stock the same day he announced huge news on a covid vaccine. and alibaba, the real risk of investing in china tech. and chipotle just unveiled something that is a true