welcome to "power lunch," everybody. i'm kelly evans. worries about economic impact are seeping into the market. tom lee will join us in just a moment plus jobless claims rising to over 740,000 last week, another troubling sign for the recovery and labor market we'll dive into the impact for the struggling hotel and restaurant history and as vehicle stocks becomes

one of the hottest stocks in the market, general motors dives in and the ceo will join us in just a moment "power lunch" starts right now welcome to "power lunch. i'm dominic chu. one bright spot is the housing market you have restoration hardware, williams sonoma, they're jumping and then you have trex, which makes decking and railing-type products for homes and two retail stocks hitting new highs, will brands a the a 52-week high, target at an all-time high yet again today after its big blowout earnings report yesterday. and, kelly, you mentioned the electric vehicle trades tesla a the -- at a new high is up 20%

in just this past week kelly. >> all right, dom. the dow sliding today and heading now for a down week. let's go to bob pisani for the action >> the markets are still having a hard time to figure out on what to focus. do you focus on the spring reopening in 2021 and second quarter or on the covid winter right now? today a little more focus on the covid winter the good news is tech which has been a little wobbly this week is holding on. it's not let's ignore tech on a day we're worried about covid. facebook is kind of flat but most of these stocks have been flat this week, which is an okay performance given how far they've come same this evening with the work-from-home companies, slack's had a good week and zoom

has had a good week. thematic tech etfs young people love buying these in packages. the cloud computing with wcld, ark innovation, the big investment in tesla, she's been a big success this year, and social media, socl, the one on the bottom people buy thematically these days huge volumes and creations of these etfs throughout the year and it's happening this year tremendous volume in anything value related, small cap value etfs getting tremendous value. nobody's cared about that for years. suddenly there's real momentum behind these i don't know how long it's going to last. this is the first time in a long time i've seen real active trading in some of these value

etfs >> thank you, bob. despite all the head winds heading into the year, our next guest is raising his 20 price target for the s&p 500 to 3800 from 2850. tom, i wonder, if there's any time in your professional history that seems like this is today. i can't think of one during mine >> well, i started off in '93, so i experienced seven years of a bull market that morphed into -- i think stock pes are really cheap against equity/risk premium and they're super cheap against bonds.

i think there's a feeling because stocks moved so much since march they're topping. we have to keep in mind we went through the biggest stress test for stocks in five lifetimes and they survived. i think that really argues pes are going to expand pretty dramatically in a couple years >> my real question or issue is i remember the dotcom boom, i remember the mortgage crisis and the recoveries from both of them none of them are like a pandemic where a market is, again, at record highs how exactly do investors navigate this knowing full well we're not through the worst of covid-19 but put markets at record highs >> yeah, i think the reason markets manage to get to here, which is record highs, is because 76% of the s&p is a growth i decndex, which means is not that economically sensitive. and, in fact, they benefited from stay at home because these are category killer, dictionary

killer stocks like facebook, google, amazon but it not like the economy did well i think just those things going back to their old highs is 200 points in the s&p. >> tom, it's kelly here. one of the things supporting that 7% call as you outline is that you talk about how the covid-19 third wave could be slowing. without delving into the science there right now, what happens if it reaction sell ratcelerates? >> wave three is a huge wave across the country every state is being engulfed by covid. i don't think people should think they aren't witnessing in their on back yard the worst six states, wisconsin,

illinois and texas lk liook like that are rolling over. that might be the part good news the bad news is it doesn't mean cases can erupt in the east coast, new york, massachusetts, connecticut have been kind of largely spared in this wave. if it gets bad, wave three is going to grow. so we're somewhat optimistic that there's some signs it's rolling over in the signs that get hit really early in wave three but it doesn't mean it's over >> one more question, tom, about the election irregularities we're continuing to hear a lot about. does that at some point morph into a front burner concern? right now markets have been marching along, more or less ignoring those issues and focusing on a biden administration and what it knows about the senate at this point does the election become a big are problem? >> in the short term it certainly would. i don't think anybody would say that 2021 would be worse if

trump is president, and i don't think anybody would say the markets would go down if biden's president in 2021. so i think it's really the uncertainty and the repositioning people would do around that. so i think people need to watch it closely i don't think the market needs to price it in because it's not a central outcome yet, but of course it's a tail risk. >> tom, before we let you go, a 7% move from here into year end implies that the leadership of the s&p will be with the biggest cap companies. is that still your thesis or does the rally broaden out to other value sectors as well? >> i think that the hand of the market is going to be revealed this week. we've had the s&p really trade lower for ten days we've made a new high ten days ago, yet the epiaccecenter and e stocks have advanced a lot my guess is between now and

december 31, the rotation is going to be into these economy reopening epicenter trades out of the utilities i think the mega cap, growth faang will track the market but if you want to perform it will be through the epicenter >> thank you very much we appreciate it kelly. >> dom, thank you. the cdc today saying it strongly recommends people not travel for thanksgiving this year let's go to meg for the latest >> this was one of the rare briefings we've gotten from the cdc and they used the opportunity to try to warm people before the thanksgiving holiday. in addition in recommending against travel completely, if people do decide to travel, they want them to do that as safely

as possible, wear a mask, distance, wash your hands. they say there's reason to hope with the vaccine on the horizon but it's not here yet. we've looked back to see the pace of the brieflyiings, they r holding them a few times a week, 7 in january, 7 in february and down to three in march and own sporadically over the rest in the spring and summer, we had one last month. they did say they plan to start communicating more regularly that's what health reporters expect in a middle of a health imagine to hear front and center from the cdc one could argue the covid white house task force started to take over critics would argue it is not the same level of information as you get from the cdc now, we talked about that vaccine, it not being here yet we did get some new data overnight from astrazeneca in

oxford this is phase two trial data this is not the efficacy studies from pfizer and moderna. and they saw side effects less common in people over age 56 this vaccine was halted as they investigated some safety signals in the trial kelly and dom, back offer to you. >> meg, what about the latest case counts? we were just talking a little about with tom lee about this. what do we know? >> they're bad we're more nthan 150,000 new casing every day on the seven day da daily average the numbers of people dying every day is increasing as well, up now to 1,800 yesterday. that's the highest level we've seen since may and people are really worried

about travel over thanksgiving, putting people in the hospital around christmas so that's why you're seeing this recommendation from the cdc today. >> yup all right, meg, thank you. >> kelly, coming up on the show, tesla hitting a record high as the ev stocks are on a tear and general motors wants to be taken a serious competitor in that industry president mark royce joins us now with their latest push into the electric game. plus hotel stocks like marriott and hyatt both down more than 20% so far this year and the american hotel association out with a very stark warning, more than 70% will close in the next six months without some kind of federal assistance we've got those details. much more coming up ahead on "power lunch" keep it right here we love the new apartment. the natural light is amazing. hardwood floors.

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welcome back shares of tesla hitting another all-time high today. the stock up 500% this year. it's nothing compared with nio up 1,100%. let's get details of today's announcement from our own phil lebeau >> hi, kelly

this is a big investment general motors is making a and a big commitment to do more in regard to electric vehicles it was plan on insisting $20 by 2025 now they're saying add on another seven. they will cut the ev battery pack costs by 60%. that's a huge goal by mid decade and selling 1 million evs worldwide by the middle of the decade general motors' cut in development costs with the battery pack, that's a huge deal so is the commitment for cutting the development plan for the vehicles look at the gmc hummer, electric sport utility truck on the way in 2022. gm said we cut the time for developing of this vehicle and other evs and we'll continue cutting them in half they need to move quickly.

when it comes to ev sales, they lag the competitors. here in the united states, this is year-to-date u.s. sales, no comparison here. tesla sells four out of five, gm a very distant second here in the u.s. let's bring in mark royce, the president of general motors. he is joining us from the company's tech center in warren, michigan you know the reality of what's going on when it comes to electric vehicles. you've made big commentments in the past, and you are miki maki commitments now. what has general motors saying it's not enough, we got to do more >> good afternoon, phil. thanks for having me today is a further demonstration of our commitment and acceleration to electric vehicles this isn't something that, you know, we've been on for a month or two we've been on it for a year and a half, two years and we really took a step back and said that

we are going to have a vision of 000. so zero emissions, zero congestion and that's a big deal for us that commitment is manifesting itself in the way we have brought our battery chemistry and manufacturing, our joint venture with lg and our pack itself and then the vehicles these are all new platforms, dedicated platforms, very different from in the past with vehicles like the volt or the bolt that we've done in more recent history this is a dedicated platform and propulsion system. when we get over the first hurdle, we can see we can cut that in half because we're doing it ourselves. the speed and agility is there for us and the commitment is there.

>> on paper nothing is arguing this doesn't make sense that, general motors doesn't haves the assets and will to do better but you know, you've been talk about this and laying the groundwork for some time why should people believe that gm truly has the horses to catch up and pass tesla? >> if you look at the synergy that we have across the country, we make combustion engines you look at our launches oaf the la -- over the last few years and they look very, very good. that industrial might and fight is something we're bringing in the space. i don't think anyone will be able to do what we're doing. there's people, including some of our competitors and that vertical integration into the cell and pack production

there's nothing like product and so for each product that we bring out and the commitment behind that and the scale and the manufacturing, we're going to have to show people and we will. and doing what we say we're going to do is everything and we will do that >> mark, it's kelly here there's been a lot of speck l s speculation about gm spinning out it's electric vehicle business does today's announcement take that off the table >> nothing's forever we looked at the synergies we have throughout the manufacturing and the engineering and r & d pieces of general motors, those are across internal combustion engines and electric vehicles. that scale in mess and we announced we were going to hire 3,000 more software engineers we have today

that that synergy which comes with putting something into a separate unit, that energy can be very costly on a and we have to get to the point where our battery chemistries have made a big leap from 60% of the cost. there's more to come on that and we've got a clear road map to do it that doesn't come from some different place, finding it out and trying to execute it the sin were ynergy and amount y are critically important the business changes, the market changes but for now that synergy is incredibly important to go as fast on things that we can on things like hummer and we're bringing the cadillac lyric ahead nine months. these are big, important things

and creating the disc synergy is something we're just not prepared to do we studied it, oo and our human resource expertise we have in general motors i believe is a real competitive advantage our people are the best. >> you've been with gm since the mid 80s. you've seen this company go through a lot of changes you know how long it takes to develop a new vehicles generally speaking a little over four years and that's if everything goes well what gives you the confidence to say we can do this in half that time we can develop an ev in two years as opposed to four years >> i think if you look at our recent launches, in many cases they're quite a bit less than four years, phil we've been taking time out of that for quite a while now if you look at the tool celts, the simulation, the crash

models, those are a very highly developed place. the simulation of battery power density propulsion, anything that we do that touches a car and the ability to engineer, validate and then finally make a physical property, we've honed that over the years. so that expertise, we know exactly what we can and can't do and where we can go to production tools with our supply base right out box in terms of the math we create for something like a hummer and lyric and go right to production tools and, cute t -- execute. the only thing left is few physical properties for our engineers. i have a lot of confidence, i've done a lot of car programs i've been here for i think up said maybe too long but a long

time and i have all the confidence in the world. >> mark royce, president of general motors i know you've got the hummer behind you someday we'll get a chance once we get past all this pandemic stuff to get in the hummer i want to try out the crab walk in that vehicle. thank you for joining us kelly, no doubt this is a very ambitious plan general motors has laid out today now can they deliver on what they laid out today? that's the big question. >> the devils are in the details. and our own phil lebeau, thank you as well. gold do you more than 10% from its record high we saw pack in august citigroup is out with a new call saying a move back about $2,000 is inevitable. but dpo the charts agree plus, indoor dining set to close in new york as restaurants across the country brace for a very bleak winter. we have the telast details

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♪ ♪ ♪ new projects means you need to hire.gers. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home. welcome back to "power lunch. gold is down 10% since its

august peak. citiis o is out with a bullish . this part of a secular trend for the metal, high as $2,700 at citi your trading nation team is here to debate that today mark, i'll begin with you. where are you on gold? >> so, kelly, we've seen some near-term consolidation since the beginning of august. that did directly correlatewit yields starting to bottom out. when you see yield rates rise, you do see gold start to sell off. in this case we saw a little bounce in the dollar and rates rising so gold sold off my thinking is we can get under 1850, see further consolidation and weakness in december so near term i think it's still right to avoid buying dips too aggressively intermediate term basis the stocks look compelling

we moved from august of 18 into august of this past year and the weekly trend still looks quite bullish and one would want to really buy into any sort of pullback we see over the next month. i'm looking at $100 lower, 1560 as being a very attractive area to buy gold and that should coincide with the gold rolling over and be an excellent time to buy dips >> and holding on pore foe tensi -- for potentially highs next your. >> we don't agree. we think it stopped. gold used to be a hedge against currency and rises inflation now it's become just a pretty volatile trade commodity we're advising clients to lock elsewhere, diversify risk, something like a mutual fund or a global macro fund where you

don't have to worry about the trading and volatility of what gold has become. i guess if you really need to own the space and you really want to own the space, either look to the gold miners or just go buy some gold bars and some gold coins and put them in your safe downstairs and move on. >> i thought you were going to say some gold jewelry. >> that, too >> we'll leave it there for now. for more trade p"trading nation follow along >> what girl couldn't use more bling? that's all i've got to say on that covid prompting new shutdowns and the window for outdoor dining closing, are restaurants heading for a very rough winter? plus, a new report shows over 70% of hotels could close over the next six months without

government sport and is bitcoin's bull run here to stay? we'll hear from a former goldman sac trader and top crypto investor on that keep it right here now, latest from trading nation on cnbc.com and a word from our sponsor

welcome back, everybody. i'm sue herera across the nation the lines are getting longer for covid tests ahead of thanksgiving. some people are waiting for hours, even though u.s. testing capacity has doubled since the summer in new york city parents are protesting the shutdown of in-person classes at public schools, even as bars and gyms remain open. >> we were promised that

decisions would be made based upon data and science. well, the data and science are in, and the risk of spread in schools is low and the harm that we are doing to our children is high >> and you can add ground hog day to the list of events going virtual. this february punxsutawney phil will make his prediction on the coming spring without the usual crowd at gobbler's knob. you are up to date dom, back to you >> sue, thank you very much for that as sue mentioned, today new york schools begin a temporary closure as coronavirus cases spike. new york city mayor bill de blasio addressing that at his briefing today >> a lot of people's frustration emanated from the fact that they thought there was another kind of disparity

they looked at schools closing and a lot of people say what about restaurants? well, the governor made clear yesterday that it's just a matter of time before indoor dining will close. >> so if it is only a matter of time for new york restaurants, other cities are likely to do the same that's another blow to restaurant owners. kate rogers has more on their story. good afternoon, kate >> hi, dom that's right we first flouncintroduced you td mckay last year. his restaurant was thriving in seattle. but today he's closed as the second time just as his group was able to move back toward profitability. new restrictions were announced to stave off coronavirus resurgence and there is no indoor dining before mid

december >> nobody thinks the governor will let us open for christmas and new years. to have to walk out and just see the pain on people's face just is hard. >> washington state hospitality association projects this will cost 100,000 people their jobs in that sector alone mckay also isn't the only one whose fate hangs in the balance. recent data shows more than a third of small businesses say they don't know if they're going to be able to survive given the current economic situation >> it's a huge point here. hospitality very much in the cross hairs. we also want to ask you about another issue facing restaurants and their owners and that's the minimum wage effect. president-elect biden says he'll raise it starbucks increasing pay for its workers. meanwhile we learned in some states many mcdonald's employees are among the most getting government assistance like snap,

so to speak and medicaid as well how does the compensation theme play into a restaurant's cost structure? >> dom, a lot of chatter about the minimum wage that study from the gao was prompted by senator bernie sanders finding walmart was one of the top employers of those on the federal benefits nationwide, mcdonald's was one of the top four employers in just nine states mcdonald's did push back on the study according to "the washington post. we should note walmart and mcdonald's pay above the major, which is still at 7.25 whether or not he can get it done is an entire lily different story. a lot of restaurant owners have been dealing and surviving in the face of progressive wage hikes around the country many cities and states taking

that on, their own account to hike pay for workers it's something the small business community is prepared for. i'll notice if this happens while they're continuing to struggle, there's going to be a lot of push back as well. >> the conversation goes to another area of hospitality now. >> yes, another struggling industry, the hotels one recent study showing 71% of them can only operate for six months or more without any kind of federal assistance. joining us now to discuss the dire situation for the hotel industry is chip rogers, president and ceo of the american hotel and lodge beiing social security y association. hotels in particular, they've been left out in the federal reserve program and ppo loans were a huge issue. what targeting do you need in the next relief package and what kind are you actually betting on >> thanks for having me.

the number you cite are devastating. when you ask hoteliers, as we just did recently, how long can you make it, 71% say they can't make it six months if things don't change we never imagined anything that could be like this the ppp was on a limited basis helpful. it was created to last eight to ten weeks. that was back in may and june. we had nothing since the main street lending program to help people stay afloat have been an absolute failure i don't know of a single hotelier in the entire united states that received a main street lending loan. when we secretary steven mnuchin to get it fixed, just simply didn't do it there's a lot of people that will be glad when he's no longer in his office, in his position the program has been a miserable failure and the money sits there and goes unused. >> why do you this i nk your

industry doesn't have more friends on capitol hill? and how many of these hotels as well are kind of the big brands we think about with big publicly owned companies who we know and who have told us, we've spoken with the cceos who say we have solid financial backing, we're fine and how many are small businesses who aren't going to be fine? >> we have a lot of friends on capitol hill on both sides of the aisle. the problem is politics always destroys what most of us see as common sense whether it's us, the restaurants, theaters, live music, all of it getting destroyed right now. politicians seem to be more concerned about their elections and now counting elections and a couple of senate races in georgia they're more concerned about that than getting their jobserve that frustrating the question about the size of these companies is important we are part of franchise models.

the names you see at the top of the building, the large recognizable corporate names, in almost all cases, they don't actually own the hotel they're the brand. those hotel owners, small business owners, they don't have the resources to last nine months with almost no revenue. >> what recourse to biehl hapeo at this point? what do you tell your members when they say what are we going to do? do you have expect the fed may change its rules, try to help the main street program be a more viable option are you counting on a re-up of ppp here in the next six to eight weeks? >> absolutely. the ppp supported on both sides of the aisle it's caught up in politics there are about $140 billion left over from the last one. all we're asking for is that those businesses that have been hurt most get a second opportunity to get access to ppp funds. with the main street lending act, all they need to do is change the rules

congress appropriated a half a trillion dollars to main street lending act and almost none of it has been lent out that's as clear a sign that you can find that the program is not working. let them get access to low-interest loans our member are willing to pay the money back we need a bring between now and late in the spring when we believe things will start picking up again with the vaccines and they're compup the tes tests. >> chip, thank you for your time today. >> you got it. >> the dow turning positive and the nasdaq leading up nearly a percent so far today and how these giant ceiling fans work if the fight against covid-19 stay with us we'll be right back.

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humana - a more human way to healthcare. welcome back we've spent much of the day in negative territory the dow is now eking out some fractional gains we've got i don't know heten hec

schumer and mitch mcconnell have agreed to resume negotiations over a covid-19 stimulus package. we'll continue to monday itor te headlines. from stocks to the bond market, rick santelli tracking the action at the cme group. >> looking at the intra day of tens, we've drafteifted and if u look at the one week chart, we may close at a level we haven't closed at in one day shy of two weeks. dom brought up maybe stimulus gets a kick out of the markets but let's face it, we're still a 29,000 handle on stocks, best existing home sales number in 15 years and continuing claims dropped about, well, close to a half million so the data hasn't been that bad and if you look at the bund yields versus tens since the beginning of the month, you can clearly see we're all moving together and the vaccine gave everybody a shot in the arm.

and finally, a september 1st, at these levels we're close to closing at levels we haven't seen since the first trading day of september kelly, back to you >> thank you and one particular crowd watching the dollar is those in gold and bitcoin bitcoin is above 18,000 again right now. every time it's spiked in the past, there's always been a pullback will there be a better time to buy? we'll ask. plus the company fighting covid with ceiling fans. wait until u hear die an-- diana olick say the company's name next on "power lunch." these days, we want sophisticated but simple.

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bitcoin is continuing to massive climb back to 2017 record highs, currently sitting right around $18,000 and change. just a hair below that not far from the record of 19,640 just before the crash depending upon what measure you want to use. what makes this rally any different? with us, general partner at block tower capital. mike, thank you for being here what is different this time around can we believe the rally >> sure, dom thanks for having me so the big difference here is march really changed everything. it changed everything from the market micro structure of bitcoin to really its place in the macro community and how it's viewed so you can kind of i think summarize it in that the market has changed from speculators to

allocators what ds that mean and how and what are the data that show towards that there are two things you can look at easily one being the google search trends indicator which right now it stand about ten. what does that mean? that means the amount of individuals searching for bitcoin on google is one-tenth that of the peak which we saw in 2017 the other piece of data that's more market oriented is around the markets in which binn is being traded from spot volumes to derivative values from just january -- this shows how dramatically march changed the market we are down to a 3 to 1 ratio and spot volumes exexploded. what does that mean? it means we have a much better version of price discovery in bitcoin.

it most likely means it is institutional buyers if you dig into the derivatives market you notice most the derivatives flow has drifted from crypto native exchanges in 2017 to institutional products like the cme i think that firmly indicates at that retail missed out on this rally this year it has been primarily and firmly in institutional bid. >> mike, take us through how as an institutional trader you actually participate in this market how do you get exposure? do you buy wholesale right now do you leg in? what's the move. >> take it any which way buy a block, dollar cost average. there is a enormous around amount of on ramps whether it be paypal, whether it be square -- you have even the largest bank in singapore for example, dbs is launching a crypto spot he can change.

there are many ways to play it the easiest and safest way to do it are through apps like kin base or square or paypal just initiated their service last week seamless i tried it myself. it was fantastic. >> before we get you go, we have just got 30 seconds left here mike as you look at the way things are moving right now, what scares you most about the price action >> i think with any run like we have had -- it has been a fairly linear bull run for bitcoin. i think towards the tail end and particularly as we recapture the highs of 2017 at 020,000 you are going to see this sort of blow off top. that will be really a function of speculators starting to re-enter the market. that in essence will bring us up to a level that, you know, we can drop price targets i don't think i am as excitable or as exciting as the $300,000 price target of citi group but

we could get to $20,000 quickly at which point we could see a full reback. but i think a steady 2021. >> thank you very much we appreciate it kelly. >> thank you very much dom, it has been a pleasure. thank you for joining us, everybody here on "power lunch." the markets turned positive on some of the headlines about perhaps a restart in stimulus package talks that does it here for us on "power lunch." "closing bell" picks it up right now. >> thank you kelly and dom welcome to "closing bell." i'm sara eisen here with wilfred frost. as always. stroks have been struggling to find direct all day though we did see a move higher in just the last hour. let's look at what's driving the action a continued steady uptick in covid case is weighing on sentime sentiment. the cdc urging people not to travel for thanksgiving next week testing delays are also returning. we are also getting weak economic data signaling the labor market continues to