hi, everyone welcome to "power lunch. i'm kelly evans. here's what's on tap stocks were lower across the board. the dow down about 300 points, leading declines today a 1% drop. nasdaq holding on to gains most of the morning but lower about 0.4% as well as the u.s. reports 140,000 new coronavirus cases in a single day, another day little record and as hospitalizations and deaths climb as well biden's task force calling for more lockdowns we've got those details. later, nike up more than 20% in the past three months and rbc says the stock has more room to run. the analyst behind this bold call will join us. "power lunch" starts right now

>> good afternoon. >> welcome once again to "power lunch. i'm john for tte, energy up 13% this week and financials also down about 2%. it's the regional banks seeing the most pain, first republic, pnc, truest financial leading that sector lower. and airline stocks all lower as we get a clearer picture of what holiday travel will look like in this persistent pandemic first, let's get to bob pisani for more on the market action today. bob. >> hello, john what happened to our value rally? banks and things like that moving to the up side, energy stocks it got smacked by covid concerns and by the lack of stimulus. that's a problem what do we do? hey, let's go back and buy

work-from-home stocks again. the docusigns, zoom videos, activision, some of the other tech names are barely clinging on to gains. service, which is a big what we call a high beta mover on the day is on the up side. so are some of the semiconductor stocks but the rest of the technical area is pretty much split to the down side. another group doing well is health care. all of the big health care nails, the anthems of the world, humana, united health, all having a very good day overall johns john mentioned the banks rates have been moving back down again. a lot of people are getting excited as ten years started breaking through at close to 1%. the minute we started getting headlines in mcconnell not interested in more stimulus around 12, 12:15 or so in the

afternoon eastern time, the market drooped and still hasn't recovered. a sure sign that stimulus still matters, even if it would be after we get january 20th and we get a president in for the next term guys, back to you. >> yeah, probably matters more now given what's going on with covid. thank you, bob pisani. those covid concerns are hurting the value trade but our next guest says there's still value in growth if you know where to look the black rock allocation fund is five-star rated by morning star explain what you mean by where you would find value versus growth >> thanks, kelly when people talk about this trade, they lump value and si sickcyclicals together they score high on value metrics, but the reality is there are a lot of cyclical companies that are high quality

but are not deep value whether you're looking at the rails, manufacturing, specialty chemicals, even some of. tech space like semiconductors that we think look very good right now. the earnings are improving they'll benefit from an improving economy and you're not really bottom fishing in some of the more challenged parts of the market we like the cyclical trade but with a quality bias. >> fair enough listen, i take your point. we're lumping a lot of things together here but we're really kind of talking about this pivot from pandemic plays to reopening ones which side of that would you fall on? it a tri it's a tricky one. just as everyone is getting excited about the reopening, we saw this huge outperformance by the reopening trade. now you get this week, a lot worse news on the covid front and we're back to the olden days >> you're exactly right. i think bob nailed it. this market is like we've never seen bob highlighted the fact that

the day after the election, the regional banks had one of the worst days on record you fast forward three trading days till monday, they had their best day on record as bob pointed out, they're struggling again partly it's been rates but really it's about this question of are we going to have a better economy in 2021 than we have today? i think the answer is yes. we're constructive on the amount of stimulus that's already in the system we're constructive that there will be another package in 2021. the size is somewhat dependent upon the political configuration but we'll get more stimulus and reconstruction on the vaccine. there's nothing wrong with adding to cyclicals on weakness. and there are parts of the cyclical space that were challenged before enercovid hit,

energy, a energy, and they're not going away >> if there are shutdowns, arguably that could lead to better outcomes sooner but if there are shutdowns, that could be a negative because in the near term, it's going to cause some pain for business how should investors read that and plan for that? >> john, it's a great question obviously the shutdowns have a large impact psychologically and i'm not going to diminish them even from a public health perspective. from an investment perspective, i'd awatch tsay watch the key m over the virus versus the shutdown investors adjust their behavior. when you look at credit card and restaurant data, travel data,

mo mobility, long before a city decides to shut down, people go out and spend money and more of their money on goods i any we'll see a pullback in the mobility stocks. even if we do get a vaccine, which we're hopeful late this year, early 2021, given the surge in cases and hospitalizations, there's little doubt households are going to i a just their behavior. i think and hope in is a temporary phenomenon. >> last question, russ, are you changing your mind on the dollar you guys were overweight there we've heard a lot of dollar bearishness lately, especially from sam druckenmiller this week where is your mind now and how important is the dollar for everything else we've been talking about? >> i think it's important for its secondary effects. it was very important, for example, are you overweight or

underweight emerging markets the dollar itself we are trimming, we have been trimming it, we have a very small dollar overweight, it's not a big part of our budget. the dollar is probably more rang-bounran range bound. when you think of a lot of the asset classes or trade that people used to hedge, they're talking about long duration, the dollar and gold, in general those hedges have not been as effective in the last few months as they've been in the last few years. that's important as peep think about how to position their portfolio and manage risk. >> all right russ, thank you. good checking in with you. john >> yeah, kelly, we turn to the latest coronavirus case count. those numbers showing 144,000 new cases in the u.s. yesterday. that's another single-day record as the warnings from doctors are

getting more dire. let's get to meg tirrell >> we crossed the 144,000 and we've been there for eight days and that sets a new record in the past week, one in every 378 americans was diagnosed with covid-19 that is just a staggering number and unfortunately experts are warning us that we are accelerating the spread of covid right now, warning we might see 200,000 case as week in the very near future. hospitalizations are on the rise at a record level. 65,000 in the hospital and over 1,500 deaths reported yesterday and the seven-day average is more than 1,000 of deaths again in this country. this is really spread across the country now. you're hearing alaska on high

alert. colorado warning 84% of icu beds are in use wisconsin having to add a new critical high alert part of its tracking of cases in that state. in the midwest they're being hit the worst in terms of a per capita basis if you look across states right now, but every state is really starting to get hit priddy haetty hard. new york talking about new restrictions being put in across the state tomorrow night as cases reach a level we haven't seen since april governor cuomo tying some of the recent spread to halloween parties he's seen and saying a major part of cluster activity across the state has been from the indoor gatherings he said if you look at where cases are coming from, it's three main areas, establishments where alcohol is served, gyms and indoor gatherings at private homes. you're starting to hear more about those locations and then

dr. osterholm talked yesterday about how we knee a four-to-six week lockdown but businesses would be supported during that period so that you wouldn't be crushing the finances but would you be crushing the virus. >> for those out there saying there's too much talk about cases, what's really important is hospitalizations and deaths, look at those curves that is concerning meg, i wonder, unless there is a shift in the government's attention to this in particular, the current administration, the current congress as it now looks is going to be in place through the holiday season, well into january before anything else can happen what are the experts saying policy-wise beyond the potential

shutdowns and stimulus, what needs to happen near term so that we can perhaps get a handle on this? >> yeah. actually just had a conversation with this with dr. scott gottlieb or at workplace economic council with h.r. leaders who are thinking about how to keep people safe how to go through this. he is warning that we're going to start seeing people take action both on a personal level and with these kind of restrictions being put in place, he does not think widespread lockdowns are coming like we saw back in the spring, but he said, you know, those are coming in the future i asked, wait, we're already at these orange points, what more do we start to see it's when you see morgues being set up outside places that scarce people into changing their behavior it doesn't sound like there's talk of much federal changes coming with the current administration as we go into the difficult

months, it will be on the personal and more local government basis we're seeing these actions. >> pandemic fatigue potentially a take rouse thidangerous thing. chicago issuing a stay-at-home order. we can only hope they look at the data and take these things seriously. kelly? >> oh, my gosh i think that's a pretty big deal it's interesting to see if the market would respond more to that but we remain off session lows being on shutdown and lockdown, whatever you want to call it is probably the next significant thing for the next few months here for the market, which is taking this in stride, at least for the moment, this chicago order. we just got troubling new numbers on the federal deficit let's go to ylan mui for that. the deficit for the month of october more than doubled from a year ago and now stands at $284

billion. that is a record high for the first month of a fiscal year, and it is 111% above the level in october 2019 when the deficit was $134 billion of course these numbers are being driven by the pandemic and the governor's response to it. revenues from social security taxes were down by 23% due to lower employment and deferral of payroll taxes. overall revenues declined by 3% while federal spending was up by 37% compared to a year ago that does leave the deficit for the month of october at $284 billion. back to you. >> huge amount of treasuries issued to fund that obviously. the fed buying i think the majority of them so far. thank you. >> coming up, a look at shares of nike. they have doubled from their march lows, up more than 100% since then the stock is down more than 1%

today. plus as covid cases climb, cities and states are putting more mitigation measures in place. the ceo of retro fitness says gims are pa gyms are part of the solution, not the problem. he'll join us to make his case next we love the new apartment. the natural light is amazing. hardwood floors. there is a bit of a clogging problem. (clog dancing) at least geico makes it easy to bundle our renters and car insurance. yeah, helping us save us even more... for bundling made easy, go to geico.com and unmatched overall value. together with a dedicated advisor, you'll make a plan that can adjust as your life changes, with access to tax-smart investing strategies

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welcome back to "power lunch. shares of nike slightly lower

today but still at more than 40% in the past six months as the company pushes its direct-to-consumer strategy. even though the stock is trading just below all-time highs, rbc out with a new outperform rating, saying it has more room to run, ha, ha kate fitz simmons joins us now i wonder what it is about nike that's allowing it to perform this way during the pandemic i think of coke and retailers and disney, stocks that have up side and down side from a pab d -- pandemic why is nike continuing to be so strong >> first, thank you for having me on today. what i would say from a consumer perspective in covering the soft line space, we've seen certain categories more resilient through covid and atlet iks la

benefiting from that people are being more comfortable at home. and while athletic has been a beneficiary through covid, it's going to remain a strong category, a beneficiary on the other side of covidbecause i d think the side effect coming out of this pandemic is you are going to see a greater emphasis on health, on wellness, on fitness, as well as casualization. >> that nike ceo john donahoe is a tech ceo, ebay, service now, et cetera. does that mean coming out of the pandemic you think they're doing the right thing now in that direct strategy in technology infrastructure that they're going to be able to continue to run further after this and take advantage of this time they've had? >> well,right. i think it's important that

they've made a lot of those investments already. in 2017 the company came out with a 30% digital penetration target that includes owned and partnered whole sale but what we've seen through covid in the last few years, a real acceleration in their digital business and really the backbone of that is their suite of apps they have nearly 250 members on their apps, which really drive engagement and in doing so encourages brand loyalty, it allows the company to learn more and more about their consumers in terms of their product preferences, their sport preferences. so they've done a lot of that work already and looking out for the next few years, the company has spoken to a 50% digital penetration target over time and they've made a lot of those investments already there will be more to come we're seeing them talk right now on the omni channel, et cetera, but they've done a lot of that

heavy lifting already which certainly positions them welcoming out of covid >> if investors are looking a the their portfolios, how do you categorize nike? is it a stay-at-home play or is it a stock that could benefit either way and provide some stability? >> i would say the latter, right. it's been a covid beneficiary certainly but it's the dominant brand in the global attractive category it's going to benefit on the other side of this as well >> so talk to me about down sides for nike here. what are the potential branches in the road that could trip nike up maybe i'm extending this pun and metaphor too far >> well, you know, certainly hearing conversations about more lockdowns, obviously nobody wants to go back into where we were, you know, six months ago, but definitely if we see that

happen again, you know, that certainly is a risk. we've seen greater restrictions coming out of europe so that could be a risk. but i do think fundamentally the brand is very strong, the category is very strong. so beyond what's going on in the medium term, longer term we view nike as certainly a buy here >> all right looks good thank you, kate fitzsimmons of rbc. >> still ahead, shares of cisco down nearly 19% in the past three months we're going to tell you what the traders are expecting ahead a their report >> plus southwest holiday bookings could be a warning sign for the rest of the industry we'll bring you those nuermbs. that and much more coming up on "power lunch." turn on my tv and boom,

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welcome back to "power lunch. cisco earnings are out after the bell the stock is down as much as 20% sense it reported in mid august. analysts expecting another decline in revenue, which would

mark its fourth quarterly sales drop in a row. the company challenged in the cloud arena from amazon and microsoft and new video teleconferencing options from the likes of zoom. with the work-from-home trade, what should investors be looking for from cisco quint, you would think in this type of environment cisco's web-ex platform would thrive the way zoom has what do you want to hear from cisco when it reports earnings after the bell >> i want to hear those segments are growing. you're slightly right, seema i think investors that are looking for this rotation, i think they not only can look at the rotation into value, they cannot only look at industrials and mork cyclical but i think they can look at stodgy technical. this is a stock that's been beat up it's not a real sexy play. it's a slow grower but they have a stellar balance sheet. they're yielding now almost 4%

i think the whispers is 11.9 billion, i think if they come anywhere in that ballpark and have any positive comments whatsoever, i think this stock can see a pretty significant uptick >> on the valuation front, cisco is trading at around 12.5 times earnings would you be a buyer of the stock ahead of earning >> i'm not enthusiastic about the stock. as you pointed out to webex, pe is more in line with financial sectors. if you're looking for value in tech, this is it on a charting basis there is support to believe in there at $30 or $35, a little bit of a trend line, a floor from july of 2 2017 i'm not enthusiastic about it. i'll see how it is after

earnings but there is value here if you're trying to search for it >> bill and quint, thank you for joining me today for more "trading nation" head to our web site and you can follow us on twitter >> thank you, seema. >> chicago just issued an advisory for people not to celebrate thanksgiving will people fly? what are airlines expecting? businesses are facing more uncertainty as cases spike nationwide and the console wars are heating you again, sony and microsoft releasing hot, new consoles in a battle to dominate the market. who will come out on top that's coming up stay with us >> and now a word from our sponsor. in determining your entry

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welcome back, everybody. i'm sue herera here's your cnbc news update at this hour. punish being rains from tropical storm eta are flooding north carolina and at least 200 people have had to be rescued so far. the catholic church is asking the u.s. supreme court for exception to limits on church services in the new york state. a diocese in brooklyn say the restrictions single out houses of worship with rules far tighter than secular institutions and it's been found that alex accoosta exercised poor judgmen in investigating charges by ep seen but did not break any laws. >> and three-time grammy winner

of the weekend will be performing at the super bowl halftime show. the game is set to be played on february 7th you are up to date that's the news update, kel. back to you. >> but presumably, is he even going to be in a stadium >> they're working out the details. >> it must be different this year >> everything's different this year, right? they're working out the details. he may be at the stadium i don't think at this point they want to make it a virtual event. but depending on how i virus goes, i'm sure they're going to adjust accordingly we'll see. >> they should have it be a zoom >> right who knows. we never know. >> we appreciate it. if he can make it, great, anybody can. let's check on the market right now. we've been watching the dow closely after getting word chicago issuing a stay-at-home advisory, advisory, that would begin on monday and go on a month. the mayor put it out advising

citizens to cancel thanksgiving celebrations, avoid travel and not leave home unless they're going to work or school or to essential needs. it's not an order yet it appe s appears -- for many people thanksgiving is not going to be the same. they're going to stick close to home but many others are flying. phil lebeau is looking at what the airlines are doing in the midst of all this. >> jon, a little bit of news here and it comes from southwest airlines, which earlier today gave an update on what they're seeing with booking trends they're noticing over the lacouple of weelast couple of weeks, bookings have

slowed down. they're not saying its due to covid-19 but do the math as the cases are going up, likely more people are saying, hmm, maybe we won't take that trip that said, you are seeing a number of people who have decided, look, when it comes to thanksgiving, we are going to take a pass on the usual plans, at least when it comes to taking a flight triple a estimates the number of people flying for thanksgiving will be down 47.5% still it's the busiest week that the airline industry will see since the beginning of the pandemic even if it does pull back a little bit and where are a lot of people going to florida. look at the number of airline seats that have been added by the airlines leading up to thanksgiving that's the turkey that you have see there. dips a little bit in the beginning of december. basically it doubles the people crunched the numbers for us and say it's up 92%

why? people want to get away to warm weather. other airlines are adding flights and seats to florida, united adding 29 nonstop flights. people will say they got covid in florida, too. when you talk to people, they all say the same thing, look, if i'm going to be somewhere, independent going i'm going to go somewhere where it's warm and not as shut down where i am right now so i'm going to take it to a warm destination and that's for many. >> perhaps it's safer to gather outside in place like florida. are the airlines cognizant of these? >> absolutely. they don't add these seats in their flight unless they do enough advanced research where they say, look, there is demand. it's not overwhelming demand as you would see if there was no pandemic going on, but there is

demand people will want to be in a warm-weather location. you can sit outside and eat at restaurants and you can get away i think that's at the heart of this there's a little bit of covid-19 fatigue factoring in saying i got to take a trip somewhere i'm going away to a warm weather location for thanksgiving or christmas. >> phil, you're sitting in chicago where we just got the stay-at-home advisory beginning monday what does that mean to you practically speaking, do people say it's just an advisory, it's not an order so to your point about covid fatigue, they ignore it or do they act as if it's an order? i'm trying to think through how big the economic effect will be >> the big effect will be with restaurants and locations shut down here in shug, you can still find places leading up to the last coull of weeks you could eat

indoors. you can't do that now. with the new restrictions put in place, it's an advisory, you can still go to work, you can still go to school, but you will see fewer people going out that's natural that's going to happen is it a complete shutdown? no but it's not a surprise to the people here in chicago >> phil, we appreciate it. our phil lebeau. we've got some breaking news out of d.c. on the federal reserve ylan miu has more. >> republican senators are saying shelton's final confirmation could come as early as next week as lisa murkowski of alaska now tells reporters she will support shelton's nomination her nomination today moving forward on the senate floor with a vote possibly coming as early as next week guys >> ylan, thank you very.

forgot about that personnel shuffle going on >> shutdown fears growing as covid cases spike in the u.s chicago issuing a new stay-at-home advisory. and fitness clubs across the country are struggling to stay open with limited capacity and shotened hours andrew alfano says gyms aren't part of the problem but should be part of the solution. it's good to you have, sir how could they be a part of the covid solution >> thank you very much for having me. i really meesappreciate you invn me we operate 120 clubs in 12 different states so we havedata we have almost 400,000 check-ins. health clubs are an extension of

health care. if you look at the country, we are 71.6% of the country is overweight or obese. we know being overweight or obese is a leading indicator to preexisting conditions if we want to keep people off ventilators and out of the hospitals, we actually have to help people get healthy. so that has been a big focus of ours we actually are very honored and humbled to have good relationship with a number of state governments. senate, just this morni as a matter of fact, with the announcements out of new york, i was on the phone with teams from the governor's office in new jersey earlier this morning i spoke with florida, as well as a little while ago i hung up from the governor's office in new york so we weren't caught off guard because of the partnership that we have with them. we were a little disappointed with the earlier closure one of the things that we shared while we have and probably we should have started with this,

we are in the health business. so we have tremendous respect for the seriousness of the virus. it is very real. but we do think that while being fit and healthy will not prevent you from getting the virus, if in fact you are unfortunately to get that, if you were fit and healthy, they'd probably send you home so we think that we are not part of the problem we think that the industry can be part of the solution. and what we shared with the governor's office a little while ago was, again, we will follow any mandate. but closing early at 10 p.m., the only people that work out at our clubs between 10 p.m. and 5 a.m. are policemen, firemen and health care workers they're shift workers. it's just the consideration that we ask of the state, as well as as governor cuomo and i have every confidence that the governor wants every new yorker to live their healthiest life. these are not mandates to make

people feel uncomfortable or stay home, but we do ask that we get separated from restaurants and bars i'm originally from the restaurant industry so i have a ton of respect as much as a love going to a restaurant or a bar, they're not essential. i do believe that being healthy, especially in a pandemic, especially where we are today, you know, being healthy is really essential and at the same time chicago, you know, came across and we just got that notification, was the same exact time we heard from a number of doctors that are asking for health clubs and gyms to fall into that essential category, which many people may not remember the federal government originally back in april put health clubs as essential businesses >> interesting andrew, let me ask you and i think you make a good point about who is using your facilities overnight and those

workers you want access to i this i therenk there's a timi mismatch we want people to be in shape but that takes a while covid is happening now gyms with the way people sweat and interact, it's obvious why there's a keconcern there. what's the financial impact are we talking about if other cities go the same way here how much help have you gotten on the ppp front or whatever's available? >> thank you we know better than anybody, ppp really didn't help ppp helped the unemployment system it did not help club business owners unfortunately, while many industries have received relief, i've been fighting and beyond myself with other industry leaders in fitness, i've been fighting very hard for the small business owner, which many of those are small business owners in the health and physicalness

end and every one of our franchises is in fact a small business owner that's where a lot of my relationship was developed with the states and they are trying very hard. but the reality of it is is that our small business owners who live in the communities that they are working in, which is rae and they are not these big companies that are benefiting during these times these are folks that while they've gotten deferrals are four months, six months or greater with rents so as we've opened back up, vendors are knocking on the door, landlords are knocking on the door but we have not gotten the relief that we needed. across the country, chicago or otherwise, 6,000-plus health clubs are on the line when health clubs are probably more needed than ever have shuttered their doors and most will not be coming back. >> andrew, we appreciate you coming and making your case and i think making it well for why

your industry should be considered essential of course we all want to try to stop the spread as much as possible in the meantime it's a very, very difficult situation, federal governmently especially we'll check back in sign thanks for your time today >> john? >> thanks. there's data out there shows that fitness places are spreading the virus so not sure how that goes. we'll be right back. what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders

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zvl . let's get to the bond market rick santelli tracking the market >> thanks, jon 122 bs for 3s, 10s, 30s, intra days of 30s didn't pay much attention to the daily this morning. yields moved lower but they were slow moving and after the auction you saw one little spike in yields to the up side because it was on a very good auction and we're right back down.

as a matter of fact, we're continuing making lows, down nine basis points in 10s and 30s. you can see rates were dragged up by the rally in stock and now we're seeing the opposite side of that effect and if we continue with the 30-year and go back all the way to the fourth quarter 2019, where's the resistance here? right around 2%. the closest we've gotten, barely over 1 3/4 and we're moving the other direction. the dollar index of july 2020, look at how flat it's been, august, september, october, november a very tight range but this range is basically at the bottom of a three-year chart. kelly, back to you >> we are watching it closely, rick, thank you, sir it's time now for today's power movers we start with multi-plan they provide technology for the health care industry we brought you the story yesterday when they were blasted saying multi-plan, which was

supposed to report after the bell today they removed their release and conference call up to this morning, the ceo called the allegations completely false still multi-plan shares are off about 10%. next xpeng said it delivered 8,500 vehicles in the quarter. shares up are 40s% today neo, fisker all higher tesla down 1.5% down the gap telling nbc the company saw a dramatic increase in sales of khakis. why? because msnbc's steve for khaki discloses he gets his khakis from the gap we saw plenty of those khakis on election night. >> maybe the country is people are buying from the gap and b

buying them because a news personality is wearing the khakis killy, oh, my goodness. >> maybe they should buy your outfit today. >> thank you i am sure we will see that flying off the shelves. moving on. sony firing the latest shot in the console wars releasing the playstation 5. we will have a closer look at its battle with microsoft and what it means for video game stocks that's coming up on "power lunch. 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 and your investment in the grayscale funds.

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welcome back sony debuting its playstation 5. it is already sold out on line people are lining up in japan for the chance to be money the first on their block to have it. give sony the upper hand for now in the 20-year console war versus microsoft's x box josh lip ton has more. >> it is a day that gamers have circled on their calendars, sony launching its official new playstation 5 console. reviewers saying the games runner with, look better and run

faster it does have serious competent tig. earlier this week microsoft also farm oolly launched new consoles as well. it is a historic time for gaming industry as more people are spending time at home due to the pandemic spending on video gaming in the u.s. keeps hitting records hitting more than $11 billion in q 3. for both flag ship models the price is $500. idc's lewis ward forecasts sony to sell as many as 5 million ps 5 console i by the end of the year for microsoft he estimates 3.7 million consoles in part ward is giving the edge to sony because it has a bigger footprint simply selling into more markets but microsoft has pushed very hard into services, too, services that allow fans to play games on console, pcs and android devices, his point being

even if they sell fewer consoles it could generate plenty of service related revenue. >> that is a good point. one we will follow up on now as spending on video games this the u.s. shatters records. check out some of the gaming etfs all of those hitting new highs in the past week is it too late to get in on owning game stocks let's bring in brandon ross with light speed partners brandon, here's my worry about the industry right now, even as we are having this big inflection point with these major consoles come out the business models in gaming are changing what i mean is maybe the growth isn't going to come from consoles and games and mobile as it has in the past but we have platform plays like epic, like unity. we have a cloud gaming trend with google and amazon and microsoft. maybe the value is going to be there, not where it has been in the past >> yes, certainly, it's a great time for the entire video game

industry as you pointed with the npd data this started with the lockdowns. and more people are playing video games than ever. we have seen real tam expansion, for good reason here we think everybody is going to benefit from that. what you highlight is kind the gateway to that tam expansion, which is new platforms and new experiences in gaming that's available to players you point out a roblox, which is a ugc platform, and where players can go gather and have social experiences, very social experiences even ones that aren't centered around, necessarily, gaming. >> uh-huh, i mean you have got -- you have got music artists doing concerts now in roblox and in fortnite. >> travis scott.

>> with intellectual property showing up in these games as well i want to mention it is light shed partners. i think i misspoke and said light speed partners it is light shed partners. >> it isn't the first time. >> where is the value going forward? if investors want to bet it is more in the services and cloud-type plays, which are those? >> look, i think that the cloud-type plays and the services are going to be a big part of this and roblox certainly has their ipo coming up. and i think that's probably going to be a pretty successful one. but i wouldn't shy away from the publishers just yet. i find it interesting that as all of these stay-at-home plays have really seen multiple expansion, the video game space, the publishers really haven't. numbersr have comeup up quite a bit but multiples haven't. as we mentioned, we think that

this shift that's occurred is secular in nature, not just cyclical and we think anyone who is serving that industry is going to benefit. >> yeah, well people certainly can't go to the movies maybe they are going to stay at home and play games. brandon ross from light shed partners thank you. >> thank you >> kelly, are you going to get one of these new consoles. >> yeah, right i just love going back and comparing the way video games look now versus even five, ten, definitely 15, 20 years ago. speaking of comparisons, john let's look at the market the nasdaq was positive earlier in the session it is now down almost 1% at session lows for the dow, it is down 410. >> indeed. s&p also down more than 1% you know, we have had runs higher you know, things tend to balance out. we'll see where things go, especially with these virus numbers, some really concerning

numbers continuing to stack up. >> yep we spoke to a fitness owner trying to make the case for keeping gyms open. it is going to be a tall order chicago coming out with an advisory starting monday for all citizens to stay at home the market not loving that news. it is the only news we have had in the last hour that is pushing us lower thank you jon fort for joining u.s. today that's it for "power lunch." "closing bell" picks it up right now. >> welcome to "closing bell" i'm wilfred frost along with sara eisen. stocks off their worst levels of the day those close to them. the nasdaq giving up 61 points and the dow falling more than 400 points let's look at what is driving the action chicago issuing a new stay-at-home advisory starting monday and the fed chair jerome powell saying the next few months could be challenging adding more needs to be done in terms of fiscal and monetary support on a positive jo