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tv   Power Lunch  CNBC  November 18, 2020 2:00pm-3:00pm EST

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humana - a more human way to healthcare. welcome back to "power lunch," everyone i'm kelly evans. here's what we have on tap the dow giving up an early rally despite more progress on the vaccine front as we sit near record highs with all the good news priced into this market the california exodus. it continues as venture capitalists and co-founder joe lonsdale moves his firm and family out of the golden state to go to texas he'll be here to explain why and marcus lemonis joins us,
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with a new show on cnbc, highlighting small businesses and the people behind them across the country "power lunch" starts right now welcome to "power lunch. i'm john fortt take a look at what's driving the market health care stocks the biggest laggards while industrials and financials lead the way. check out the bank names all higher tesla, the big winner. at the highs of the session, helping to turn the nasdaq almost positive, close to break even midday. morgan stanley final upgrading the stock to a buy after a 500% gain this year let's get to bob pisani for more on these markets bob, you got me?
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maybe not. kelly, do you see what is happening with these markets i mean, we're showing the sector snapshot here. we've got s&p retail is higher ahead of a holiday season we expect to be really strong for e-commerce and we've seen strong results this week from walmart and target >> yes, we do. by the way, i want to point out -- well, i want to point out that the dow turned negative only in the past hour or so. we were hanging onto slight gains throughout most of the morning. we were are down a quarter of a point. let's get to the good news on the vaccine front. pfizer and biontech saying their vaccine is 95% effective when will these vaccines start to become available? meg tirrell joins us with that piece of the story meg? >> this process is going to start moving quickly we know pfizer says it's going to apply for fda emergency use
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authorization within days. moderna said on monday when it got its interim results it would apply within weeks in kicks off a regulatory process. the companies have to file with the fda. the fda will then hold meetings of its outside advisers on vaccines to discuss these two applications after that the fda makes a decision then the cdc advisory group would weigh in on vaccine prioritization, who should get it first, things like that now, we do have some sourcing on when that fda advisory committee meeting mike takes place we're hearing from two sources that december 8th, 9th and 10th we might see these meetings being held and they might discuss the fizer and moderna vaccines this ahead of them potentially being authorized operation warp speed just held a briefing about what comes next with these vaccines. they said they want to get them out within 24 hours of the fda's green light. here is what we are looking at in terms of supply, at least initially of both of these vaccines together.
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they say there should be enough for 20 million people in 2020. 25 million per month starting after that after we get more vaccines, that will increase. there is not going to be enough of these vaccines at the beginning, particularly when you look at the numbers of covid right now. 150,000 daily cases. the numbers of people in the hospital going up at a rapid pace currently more than 76,000 americans hospitalized with covid. yesterday we recorded more than 1500 deaths from the disease you couldn't be in a more urgent situation as we finally get close to potentially seeing the first vaccines being authorized. guys >> what about this new at-home testing kit that i believe the fda is authorized. i understand there might be some delays in getting that out to people more broadly. >> it's really exciting to see a test that can be taken and you actually get your results at home there are a few caveats here it will only be available in two
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locations in the beginning, in northern california and florida. they expect it to be available more broadly starting in the spring of next year. it's also expensive. it's $50 you need a prescription from your doctor. so, this is not the sort of extremely available rapid cheap home test that many in the field have been calling for. some hope is signals the fda is more open to authorizing those tests to follow. meg, appreciate it john >> kelly, no rally for wall street on that positive vaccine progress with the dow still sitting right below record highs. is today's action showing that all the good news is priced in and what can you still buy let's bring in jeff mills, cio of brynmar trust you like the small caps but are you impressed with the likes of
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walmart and target >> i am. you know, it's interesting when you look at the performance profile of the market, you can say today is a big nothing we didn't get any incremental boost from the news. at the same time, relative to small caps and other parts of the market, we have to consider what's been driving the market and the weight of tech, for example. when you have days where you're seeing this rotation out of tech, tech underperforming, you see facebook, apple, google all down, that narrow is driving the index down today we have industrials, materials, banks all higher, even consumer discretionary higher with amazon down, which is a feat in and of itself overall i'm impressed with the market i don't think now it's about watching the overall index because we could have headwinds so it's more important to look under the surface and see where you can benefit as we move forward. >> the underperformers have included some stay-at-home names
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that were performing pretty well at the same time, we have this question coming up of when we're going to get stimulus and how much i don't know if anybody thinks it's a question of if at this point. should investors be looking to play those two things or other things >> i think investors should still be counting on stimulus. i tweeted this a week or so ago. some were skeptical, some weren't. but i feel like the vaccine news makes stimulus more likely there's this notionof building a concrete bridge that policymakers now have in washington we're building a bridge between today and a time we can see very clearly in the future where activity is going to return to normal i actually think there's a better chance of stimulus happening now when intuition may play the opposite. i think you can play the rotation out of the large cap growth names into areas like small cap, which is an area i like particularly right now.
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>> what kind of icebergs in the water should people look out for, maybe moments of uncertainty over the next few months, where a pivot one way or the other could shift things in the market >> yeah, i think you have to have at least a little caution here in the near term because we'll be battling over the next couple of months with covid cases rising but with positive vaccine news i think leadership in the market is going to be choppy and i think you could see economic activity impacted in the fourth quarter and first quarter of next year. ultimately, i don't think it details this rotation we've seen i think this rotation is probably going to be something that lasts for multiple years. and i think about specific names and specific industries. we get a lot of questions from our clients. have we missed the boat. we've seen this rotation, we've seen big moves in the value and cyclical names already i'll give you caterpillar as an example. it's up almost 100% from the lows in march. at the same time, the stock
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hasn't made any progress over the last three years so, i do think there's areas of opportunity. you may have to be patient over the next couple of months but ultimately i think the market is going to have its eye on 2021. we're well aware, even if we see the economy slow down over the next couple of quarters, the market doesn't have to tb the economy in the near term. >> some indices, some individual stocks to take a look at thank you, jeff mills. >> thanks, john. meantime, shares of boeing are off the highs after getting clearance to fly the 737 max in the u.s. the stock is up 25% in the past month. still down more than 40% from march 2019 when the max was grounded phil lebeau spoke to the head of the faa about today's decision and joins us now >> when you look at what's going on with the 737 max, this is a plane many people knew would eventually be cleared by the faa to fly again what exactly does that mean. what has changed with the 737 max when it goes back into service now that the faa has
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said, look, there are fundamental changes that have been made. updated flight control software, which will prevent it from pitching forward on takeoff, which was the mcat software that was at the heart of the two crashes and you noo pilot procedures that have been approved and international regulators still need to sign off on the max, but they are expected to follow at least all of them with the exception of china that remains to be seen how long it will take for that to happen. here is the head of the faa talking with us on "squawk box" about how safe he believes the new max is >> i would put my own family on it i plan to fly on it myself and but the public will certainly have to make its decisions. but i believe that it is a safe aircraft, it meets our safety and certification standards. i'll stand behind that >> take a look at shares of boeing keep in mind that the 737 max, which is the most popular plane
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in terms of the number of orders, but that backlog has come down substantially as airlines have either canceled or deferred future orders in the last year. it's come down about 1,000 aircraft now stands at 3,320 planes that's the backlog of planes, even when you factor in accounting adjustments what about the airlines that already have the max and they need to do the update on the software and the pilot procedures american airlines is the one that a lot of people are focused on why? because america plans to start flying the max december 29th the first flight will go from new york down to miami as well -- meanwhile, you've got united and southwest as you take a look at shares of those airlines, keep in mind they plan to bring the max back in we're just going to talk about southwest here they're going to bring the max back into service in the second quarter. kelly, early next year is when you start to see airlines not just here in the u.s. but likely around the world start to feather the revamped max back into their schedules
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>> will people be able to figure out if they're flying a max when making reservations if they want to avoid it? >> almost every airline. certainly the u.s. airlines, when you're booking a flight, it says which aircraft you're going to be on certainly when you get your boarding pass, so if you get it and you're like, i don't want to be on the max, i'm not crazy about this, if you don't have confidence in it, the airlines will work with you they've made that clear over the last several months and they have been reiterating that today. you'll be able to say, look, can i go on a different aircraft to this particular destination, but the belief is over time, if there are no more incidents, that people's memories will start to fade a little bit and they will be less hesitant about getting on the max that's the hope of the airlines and certainly of boeing as well. >> for sure. phil, thanks so much our phil lebeau. >> we've had a few other things to worry about, especially as far as flying is concerned coming up, target hitting an
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all-time high as online sales jump 155% in the quarter we'll talk to the ceo of voxx, how it's coping with the flood of new competition. plus, the profit is back marcus lemonis has a brand-new series looking at entrepreneurs across america as they pave new roads to success in this pandemic we'll be joined with a sneak pe ekat nt. for over 30 years,
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welcome back food and security has been a huge problem amid this pandemic with millions of people out of work with thanksgiving coming up next week, there have been long lines at food banks all across the country. our next guest is trying to lend a hand, announcing a partnership with grubhub today on a program to get meals to people who need them here to tell us about his latest deal, marcus lemonis, host of "the profit" and ceo of camping world. it's great to have you back. just tell us, first of all, what can all of us do to help out around thanksgiving. what are you launching with grubhub? >> it's more than thanksgiving as we look at what's happened to small restaurants across america and the food insecurity we have,
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particularly around those looking to find the resources they need, we wanted to create a program that would drive millions of dollars through these local restaurants and, in turn, ask them to feed people. so, grubhub stepped up in a very big way off a single tweet that i sent out and brought world central kitchen to the table we started a program today ironically enough, a couple of days ago, alex rodriguez and i made our first surprise visit to a restaurant on southwest eighth street we bought 3,000 meals for one family -- one restaurant we feel very strongly we got a big problem here restaurants struggling and people hungry. we're trying to fix that >> so people when they're using grubhub, they take the change and donate that. we like to pile on big tech and big twitter, but i'm glad something you put out there has all of a sudden led to this. >> i think it's bigger than that. >> for a-rod -- sure, go ahead >> i think it's bigger than
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that the big issue we have is that a lot of these local restaurants have been very hard to criticize these food delivery apps and hundreds of millions of dollars were put into developing this technology over the last seven -- five to seven years what i've told every local restaurant owner in america that i've talked to is grubhubs, the doordashs not been there for us, these restaurants would not be open today they've created this bridge. while the fees may seem higher than people would like, this technology is bridging the gap from consumer to business. it didn't exist two years ago, three years ago. >> yeah. it's a great point in the show, when you're looking across the country to help out these small businesses, was this an idea that came kind of after and as a result of the pandemic or something i know you've been working a lot in this vein for years anyway. >> you know what i think has happened, for the last eight years we've been making the profit on cnbc, we've invested
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in over 100 businesses, and the reality that some of those business that were on the show have really struggled and some of them haven't made it. the number of applications we see on the next season of "the profit" seem to be skewing towards the local restaurants. the alarm bells went off for all of us and said this is not only a small restaurant problem, this is a food distribution problem, whether it's the cyscos of the world, and it's going to pile on and that's what's driving a lot of this for me, along with the food insecurity. >> good to see you it's john fortt. >> how you doing, buddy. >> i'm doing well. as you look at these small businesses and their path not just for the next year, but for the next three years, for the next five years, the kind of help they're going to need, the kind of advice they're going to need, what are you saying to them, how are you structuring your own advice, and what would you tell the government to do? >> well, listen. i've been waiting along with a
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lot of other people for the government to step up and solve the problem for a lot of different people, particularly businesses that are being just hammered by this i don't have time, you don't have time, nobody has time to wait for the government. so, as private citizens and private entrepreneurs and capitalists, which is what i am and why we have cnbc, is to really try to create a solution for people these local restaurants, if they don't renegotiate their leases, renegotiate their food costs, and simplify their process with the understanding that technology's going to be a necessary part of their business going forward, we're in trouble. there's a lot of these restaurants that don't have websites, they don't have relationships with companies like grubhub and they're complaining. i respect that i simple these with ilar these t >> let's talk about a different
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part of the business world what's going on with camping world? we know the rv demand has been huge, but what trends are you seeing with the spread of covid and also heading spew the colder season. >> prior to covid even coming into the forefront, i remember being on "power lunch," gosh, eight or nine months ago when we were first talking about it. we are -- the rv business was already doing pretty well. it's clear that first-time buyers have come to the market and the demand outpaces the supply by probably 3x. our inventory as a company was down we reported our last quarter, we were 200 some odd million, which is a significantincrease there's a problem for the marketplace. here's what i will tell you. whether it's anything outdoor related, boats, rvs, anything like that, the demand is just off the charts and i don't think it's just a
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covid thing. the business continues to be really, really strong. really strong. >> yeah. well, again, a kind of glimmer, a brighter spot, because we know it's really, really tough out there, as you were describing, especially for restaurants and small businesses thank you for your time. we really appreciate it. you can catch his new show "streets of dreams with marcus lemonis" december 29th at 10:00 p.m. pacific. breaking news moments ago. new york city schools will close temporarily starting tomorrow. the city had been monitoring 3% positivity seven-day average as a trigger to shut down schools they are doing that now, at least temporarily. shares of nvidia have more than doubled as the chipmaker gets set to report earnings after the bell venture capitalists joe
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lonsdale will be here to talk about why bad policy, as he calls it, in california drove him and his business to move to the heart of texas this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.
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welcome back to "power lunch. i'm seema modi with six weeks left in the air, nvidia is the top performing stock in the s&p 500, up almost 130% as its gaming and ai segments drive growth. earnings are out of the bell and expectations are high with nearly 80% of analysts rating the stock as a buy and only three sells according to fact set. john, number one thing you want to hear from nvidia when the company reports earnings after the bell >> i want to make sure all three of the long-term stories, the investment themes of gaming, artificial intelligence and electric cars are still intact and that runaway is still very much with the wind at their back nvidia has the front-row seat of the three sexiest long-term investment growth stories out
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there. i want to make sure the street expectations are still very much aligned. obviously, whatever information they'll provide on the arm deal set to close on the third quarter of 2021, $40 billion they say it's immediately -- i would like to get more information on that. >> matt, you've been looking at the chart. you say it's at a critical juncture tell us why. >> it had this huge move earlier in the year but the last couple of months it's been trading sideways it has fallen a little below its trend line going back to mash march. that's not a big concern yet, because it's broken below that by going sideways rather than rolling over in a significant way. it's interesting because the battle lines are very well defined. if this stock -- if the stock breaks down from here and breaks below the $500 level, that was the low that hit right at the end of october in other words, it would follow
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that break below the trend line with a key lower low that would be very negative. however, if the news is good and the stock can rally, retake that trend line and break above the 575 level, that was the highs from september, october and earlier this month any break above that level is incredibly bullish i'm bullish on this stock. those two levels are very well defined. 575 to the upside. >> and currently trading around $540 a share thank you. for more trading nation, head to our website, follow us on twitter. kelly, over to you. >> thank you very much ahead on "power lunch," california leaving why tech ceo joe lonsdale has moved his firm to texas. plus, stockpiling surging again as covid cases climb across the u.s
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the ceo of box joins us to discuss. morgan stanley upgrading tesla to overweight. why they think it still has more room to grow "power lunch" is back in a couple >> announcer: and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> if you're an active trading, sitting on the sideline can be difficult but it's important to resist the temptation to overtrade. in times of high volatility, you may want to consider trading less or reducing the size of your trades. when things really get crazy, well, sometimes the best trade to make is no trade at all i'm joanna payne and schwab is the better place for traders ♪ you can go your own way
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you can choose from the latest phones or bring your own device and choose the amount of data that's right for you to save even more. and you'll get 5g at no extra cost. all on the most reliable network. so choose a data option that's right for you. get 5g included and save up to $400 dollars a year on the network rated #1 in customer satisfaction. it's your wireless. your rules. only with xfinity mobile. welcome back, everyone i'm sue herera here's your cnbc news update as we mentioned a few moments ago, new york city public schools are stopping in-class lessons starting tomorrow. citywide test positivity rates have gone above 3% that move affects roughly 300,000 children the schools had been reopened for just eight weeks just outside philadelphia, 800 nurses are on strike for a second day they are protesting low staffing and low wages.
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hospital officials say the nurses union rejected their compensation offer earlier meantime, the u.s. army will reconsider thousands of less than honorable discharges issued to those with post-traumatic stress disorder and other mental health issues. that review will go back to 2011. as the sun rises on the international space station, two russian cosmonauts taking a six-hour spacewalk they're preparing the station for a new module pretty cool. that's the news update this hour i'll send it back to you >> thank you very much. let's check in on the markets, which are near session lows we did take a leg lower after news about new york city schools coming out not so much because of the school's economic impact, it's the ripple effect. it's the parents who have to stay home, those that can telecommunicate will do that but this is a school district with 1.6 million kids and
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families now affected and many of those can't just telecommute. they'll have to come up with other options. one of the biggest barometers we've been following, the dow down 100 points, another 50-point move lower after that crossed. a third of 1% decline, same for the s&p 500, down 13 points. nasdaq down 16 and the russell 2000s are down a point the oil market is closing for the day. let's check in with cnbc commodity desk, dom chu. >> we have u.s.-based west texas intermediate oil prices $41.87 that's a 1% gain world benchmark brent crude futures currently trading at $44.40 that's up 1.5% one of the reasons we did see a tick lower on some of those headlines coming out about new york city shutting down those schools because of the infection rates, but what we did see earlier in the day was u.s. department of energy information coming out with supply data. last week we saw a smaller than expected build in crude oil
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stockpiles in the u.s., but there's a concern. a much bigger than expected build in gasoline stockpiles as demand is starting to wane amid-these shutdowns tomorrow, kelly, john, we get those big numbers from baker hughes with oil rig counts that's tomorrow afternoon, 1:00 p.m. eastern time. >> looking forward to getting those numbers. meanwhile, the pandemic is driving people and businesses away from big cities, including in new york and california in an op-ed for "the wall street journa journal", joe lonsdale says overregulation, public safety issues and the housing crisis are just a few of the reasons california native joe lonsdale packed his bags and too took his team to texas. joe, good to see you there are a lot of issues here
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that you list. some of which have been going on in california for a long time. some of which have become exacerbated over the past five years, but what tipped you over the edge >> i think what tipped it over the edge, it's a lot easier to work from anywhere and do business from anywhere frankly, san francisco has gotten a lot worse in the last couple of years. it's obvious it's not a place we want to raise our family. >> i have experienced the shift in san francisco, not so much in 2020 because i haven't been doing a lot of traveling but over the past couple of years. as you said. what about the political component here you say in the op-ed that the intolerant far left in california is part of what drove you out. i don't know how much of that is critical mass in silicon valley because even though people talk about liberal attitudes in silicon valley companies, a lot more is libertarian and moderate in the actual companies, right >> well, you know, i think
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there's definitely people of all different viewpoints in silicon valley but there's intolerant for the left if you try to sleep out and say, this is the solution for homelessness and it's different than what they think, they demonize you it becomes so loud in silicon valley, for most of my friends, it's not worth the effort to get involved because you get attacked you're made to look like a bad person i think it has silenced a lot of responsible leaders in my generation >> at what point does this start to become a structural risk for the california economy apple just built a campus there in cupertino google and apple are building out more in san jose adobe continues to invest there. yes, they have some investments in facilities and places like austin, but there's a lot of infrastructure there a lot of college graduates in disciplines they're looking for, but when does it become dangerous? >> it's a structural risk for
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california right now because they pay half the taxes there. they can't afford to be losing frankly, even though some of these people may not be paying that many taxes, the ones building things are the ones that will make the economy work there in the future. at least 50 people i know who have left are builders who say, this is not the place i want to build right now. it's too hard to build new houses, too expensive to employ people right now it's becoming an issue. i think they realize, the moderates are worried that the problem -- it's going to be a mess >> as i was reading your piece, i was thinking about the exodus of people out of these cities like san francisco, and other people in other states who are worried about the influx and how it's going to change their politics >> yeah, i got -- i got a lot of notes on this. a lot of notes saying, dear,
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mr. lonsdale, please don't bring your blue voting to texas. they're very welcoming overall but we have worried people >> i guess my question is -- i'm just curious, joe, because it was such a thoughtful piece. have your personal politics evolved over the years as well are you somebody who would have been on the more progressive side of things when you were younger and that has changed and i wonder what you would say about your -- your friends' colleagues, as sh has watched this all play out, if it's changing their mind about things >> i've become more of a realist. there's the ideal situation at work and how things actually work in the real world and how do you get things done i have a lot of friends who kind of started off not thinking hard about these philosophical questions, not thinking about the history of our country and what's unique about our country and who appreciate liberty more than they did. a lot more -- a lot are becoming moderate and want to preserve
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the free enterprise system while taking care of people. the challenge is different people don't realize in texas, if they hadn't had us coming here the last 20 years, senator cruz would have lost it's interesting people who are choosing to move have thought about these issues and are deciding to support a free society. there are more people who are moving that don't necessarily represented progressive values. >> i hear some people in texas, folks i know saying, don't come from california to texas and bring the things that are ruining california apparently you're saying that's not what's happening i want to ask you about prop 22, which just passed in california. swinging the gig economy thing, i think more in the direction where you would want the things to go. is that, perhaps, a sign that the political climate in california could swing another
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way? >> ab-5, which was the crazy contractor law that prop 22 turned over for drivers, it was such a crazy law and took hundreds of millions to pass if it hadn't overturned that, you would have destroyed massive numbers of jobs, made it too expensive for middle class to use uber and lyft. what's sketchier is you have ab-5 and special exemptions and those that don't have the right lobbyists. as i mentioned in the piece, this is how everyone has to go to the government and get special exemptions for themselves and can't do business the fact that california is going that way is pretty terrible. >> the voters seem to have felt differently about it than the assembly did we'll see if that continues. >> that's a great thing. hopefully they can keep turning back the assembly's mistakes because it's paid for by the government unions. >> you're not alone in feeling
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that way joe lonsdale, thank you for being with us. >> thank you >> the california exodus is having an impact on real estate, especially at the high end robert frank has more on the wealthy who are getting out. robert >> california has lost more than $8 billion in income to other states in 2018 and that's left a huge oversupply of luxury homes especially in the l.a. area. this estate in l.a. had been listed for $168 million. now it will become the most expensive home ever auctioned. that will come under the hammer in december. it is owned by the aircraft leasing billionaire worth about $4 billion he built the house over five years. now, he won't tell us why he's selling, because it is 20,000 square feet, 13 bedrooms, 25 bathrooms, tennis court, pool house and in north beverly park.
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the famous gated community home to eddie murphy, mark wahlberg and sylvester stallone some big deals in california are getting done jeff bezos bought an estate over the summer but lots of others, like gene simmons, the bass player for kiss, he said he's had enough of california's taxes. he's put his beverly hills pad on the market for $22 million. and he is moving to washington state. kelly, back to you >> maybe rural washington? my question, we talked about new york city real estate and how some of the sale prices haven't fallen that much buyers are trying to hold out. it's a much smaller share of the market as you pointed out versus the rentals. what's happening in california with the sale price of these mega mansions? >> california is a very diverse
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market san francisco, that market is getting crushed, just like new york city. l.a., the high end is oversupplied broadly because there's still a lot of space, you're seeing a pretty solid market even in the sort of middle to up per end, $ million to $2 million. this housing market has remained strong the general population wants more space and more amenities. you are seeing a lot of people from california move to nevada, parts of lake tahoe and also to texas. and so it's a little bit of a mix and a much more mixed picture in california than new york city. the suburban and rural is going on everywhere. >> robert, thank you our robert frank go ahead >> more space, less regulation elon musk was talking about moving tesla out of california, too. we'll see. tesla moving higher today on upgrades from an analyst
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sofi helped me pay off $23,000 of what is this?ebt. we call that a window. window. dun-dun-daaa! the first big screen. we really need to limit thunk's window time. not now. the birds are on. in my day we fought them. let me live my life! welcome back it's time for today's power movers we begin with tesla. morgan stanley's adam jonas
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upgrading the to, to overweight and boosting price target to $540 a share he says tesla is shifting from being just a car company to making more money from software and services polaris is falling after announcing the ceo is leighing the company. he will now taking over cnh industrial pol polaris down 5%. bitcoin breaking above 18,000 for the first time in nearly three years. >> wow, kelly. now to the bond market, rick santelli tracking the action there at the cme rick >> yes, john, let's do a 2020 on the market all 20 years, intraday of 20-year, largest ever, $27 billion. it wasn't a spectacular auction. rates have moved higher, which makes sense when there was avoidance buying into the action if we look at the 20-year since last friday, 142 is where it settled.
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we're still all long maturitiems higher on price. if we look at the first day it traded, the 21st of may, you could see we're on the high side that really gives a good glimpse of what rates have been doing the last 20-plus months. the dollar index looks to close down for the fifth session in a row. kelly, back to you >> rick, thank you very much rick santelli. the s&p retail index is up about 2% more than doubled from its lows this year as investors bet on a rebound eventually we'll talk to the ceo of boxed about that and what consumers are buying and stockpiling right now. stay with us businesses today are looking to tomorrow.
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welcome back the pandemic shifting the way many consumers shop. e-commerce seeing a huge boost with target reporting a 155% year on year digital sales, and a 79% boost at walmart with covid cases surging again, people are looking to stockpile essentials online. joining us now, jay wong
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thank you so much for joining us let me ask you about some of these figures in particular. you're seeing cleaning disinfectant items doubling over the past week, toilet paper has doubled, paper towels are up ten-fold are you concerned about any shortages? >> one of the other things i want to add to that, kelly, wine is up 126% week over week. folks are really stocking up at this point so, you know, it's really important for viewers to understand why this is happening. absolutely, i think we're probably a week or two out before some of these shortages really start to hit. it is more regionalized than it was last time where there was a national panicked. guardrails of being only able to buy one or two it's important to understand why this is happening. it's really about timing and the amount so if every american out there goes and buys one of almost
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anything these days on the same day, yeah, there's going to be a shortage of that item for the time being the timing of everyone going to the stores but hopefully people will be more reasonable this time and buying only what they need and not what they need for the next two years when it comes to toilet paper. >> true. although the fact that they're stockpiling again tells us that maybe the spring stockpile didn't even make it six months are you guys, in general, chieh, taking share this year obviously it's an opportunity when people are turning to online, when they're looking for big box solutions. how are you making sure you're part of that conversation? >> so for us it's really about loyalty. so our business is based upon repeat rates and repeat customers. we're really focused on making sure that the customers that did discover us in march, april and that crazy initial covid stock-up period stuck with us throughout and, luckily, between our box-up
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membership program and the other things we've launched we've seen the cohort that came in this year, the stickiest cohort by far in the history of our company going back to 2013-2014 when we first launched all of our data is showing they're actually sticking with us throughout this entire period. >> jon fortt good to see you again. what are you seeing heading into the holiday period i know that's not necessarily your sweet spot but everybody buys more stuff during the holidays to what extent do you expect these loyalty trends to continue into 2021? >> such a great question we debate that endlessly internally when covid really started, the conversation was around well, are they going to shop online for a few months and then come back to in store you're starting to see this isn't some new fad this habit is starting to stick because customers have been shopping online in increasing amounts now for six, seven, eight months by the time the vaccine really
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takes hold for a full year after you do something for a full year, that starts to become the habit and you have to break that habit to go back. that's how i see this playing out over the next few years, jon. when it comes to the holiday season it's crazy to say this. i never thought i would say, but the hot item, i think, will be paper towels, more so than anything out there that will be the hot gift this year when it comes to toilet paper, really interesting kind of point, i hope, for the viewers out there. toilet paper, you have business-type toilet paper, commercial toilet paper and kind of household toilet paper. and you can shift the resources and some of the toolings so that you can make a little more household rather than commercial to paper towels there's not that extra capacity to shift to households that's why you're seeing that out of stock at a lot of retailers today. >> we'll look out for that chieh huang, thank you for the
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insight. more on the markets is coming up. don't forget, you can always watch or listen to us live on the go on the cnbc app we'll be right back. this is the new iphone 12 pro with 5g! and it's on at&t, the fastest nationwide 5g network. now, new and existing customers can get our best deal. really?! mom! at&t has the deal for new and existing customers! i will. so what'd she say? wrong person. it's a guy named carl. but he's very excited and on his way.
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and your home, check us out. we thought for sure that we were done. and this town said: not today. ♪ kelly, that news on the new york city schools closing again
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temporarily not have iing. >> i thought your interview about those apple chips this morning was phenomenal. >> there's good news, at least for apple. >> exactly exactly. i just said i was a pc, now i'm a mac. no, the other way around anyway, i'll have to go back again. we're out of time. jon, thank you for joining us today. that does it for us, everybody "closing bell" starts right now. >> it certainly does welcome to "the closing bell." i'm wilfred frost along with sara isen. the dow down more than 100 points further positive news on pfizer's vaccine helped sentiment early, but we since faded during the session new york city said it's temporarily closing in-person schools as cases surge in the city and around the country. that has stay-at-home stocks like

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