>> the dow up 11% in november. it almost defies believing, after all we've been through and are still going through with respect to the election. and the rise in the covid counts, obviously, upsetting that is the three very good pieces of news. >> right. >> about a vaccine for covid but to be up 11% in just -- and we are not even done with the months it is just astounding. >> i know. and retail stocks, too we will hand it off to "closing bell" now to pick things up. thanks, everybody for patching "power lunch." we will see you tomorrow. >> welcome to "closing bell. i'm with will along with leslie picket another vaccine announcement three weeks in a row and the stocks are rallying on it astrazeneca announcing its vaccine candidate is effective that news helping to lift travel and recovery stocks and cyclicals driving the market higher today the rotation out of big cap tech

returns. therefore all of faang and microsoft as well are lower. and economic data coming in better than expected today that's balanced by an ever increasing covid case count. the dow, with 59 minutes left in trade -- the s&p is up two thirds of one% 59 minutes left. >> coming up on today's show we will speak with the ceo of hawaiian airlines about travel demand during the busy holiday season and the steps his company is taking to kept passengers safe plus we will speak with investor mark owe cadda about his outlook on the market into year end. first the stories we are tracking today with mark mark, and meg trill has a slew of information on vaccine news. and jared holtz, let's start with mike santoli. >> the s&p gain right now of two

thirds of % understates the performance of the typical stock. median stocks up 1.25, 1.5% if you look at the equal weighted index indexes. right at the top of the range we have been at for a while we have not enduringly traded above that november 9th pop high on the news of the vaccine sticking around the highs from september 2an. below the surface as i said, strong this is a day when the index is being restrained by rotation out of the big cap growth stocks a theme we have seen so some time look at the stocks versus bonds. s&p 500 against long term treasuries the tlt pretty much all of this is month to date as well. eight percentage point what it implies is that big asset allocators like pension funds and mutual funds are going to be rotating out of stocks into bonds as we get into the

end of the month and into the end of the quarter in december that's going to be a supply constraint on the markets. mechanical factors going to telling to the strength. look at the tendency of the market seasonally. this is the average path over the course of the last 35 years or so. according to goldman sachs we are basically right there. late november, right around thanksgiving you look at this chart and you say how can anybody not want to love the market from now until the end of the year? yes, it is true the central tendency is higher this is right here all of 2% that would get you back to where you were on november 9th the averages make it look like this is a predictable path but anything could happen. as i said, we are already up a lot this month and this quarter and sentiment and positioning are getting stretched. >> if there is anything we have learned it's that 2020 is not like any other year.

do you expect rebalancing from pension funds to add a sigt significant amount of pressure here or is it going be marginal, a little bit of taking money off the table that you expect? >> i think it end up being a little bit of a restraint on how much upside we can get in a hurry. if you remember back in march, around the low, march 23rd, guess what, eight months ago today you had a lot of talk about how there was going to be a rotation back into stocks. that was a violent and dramatic effect right now i think it is just about trimming but there are other thing happening, lockup expirations on ipos new equity issuance is going on, too. it seems like the supply/demand picture is going to be a test for the bullish trend to make it through the week. >> dow is up, session highs up 380 as we speak. encouraging on coronavirus treatments and vaccines even as

the virus continues to surge across the country meg tirrell has the latest. >> reporter: let's start with the astrazeneca and oxnard news on their vaccine 90% efficacy on the realities they released this morning when they tested a half dose first and followed that will up a few weeks later with a full dose they saw 90% efficacy when they tested the two full doses in the vaccine they only saw 62% efficacy a little bit of a head scratcher. they saw no hospitalizations among people who received the vaccine suggesting it could protect against severe disease as well. another differentiator for this vaccine, it can be stored in the fridge for up to six months as opposed to the moderna and pfizer vaccines, pfizer in particular which have to be kept a lot kohler i mentioned it was a head scratcher. we talked with astrazeneca about that this morning. here's what he told us. >> i also need to admit that it

was a little bit of a surprise to all of us in order to see this different we really expected to have a high dose, high dose very effective. it is very effective but the half dose, full dose clearly has a per efficacy we will do more reference in the weeks the come in order to better understand the mechanism here. >> guy, get this reuter's just reported that the reason they tested the half dose, full dose regimen wasn't because they set out to do it. it was a mistake but it turned out to work incredibly well, 90% efficacy versus 62% from what they meant to do over to regeneron, over the weekend they got emergency use authorization for their covid antibody cocktail for people just diagnosed with the disease had are at high risk of needing to be hospitalized with covid-19 there is going to be limited supply of this drug.

hhs says tomorrow they will start shipping 30,000 doses, enough for 30,000 people regeneron says it should have enough for 80,000 by the end of november the final news on therapeutics is merck acquiring a small company acquiring a drug that's shown striking efficacy for patients in the hospital needing oxygen support it cut the risk of death or respiratory failure by more than 50%. like everything in this pandemic, there is not enough supply so that's where merck is stepping in. back over to you. >> meg tirrell as always thank very much for that we will discuss in more detail with jared holtz all of that news first i want the bring in breaking news. this is according to dow jones reporting according to sources that president-elect biden will nominate janet yellen for treasury secretary there has been a lot of

speculation around this including the timing as well as the nominee. and dow jones, at least according to sources, suggesting it will be janelle yellen for treasury chair expectation of course that she could win bipartisan confirmation, that there wouldn't be an issue there and last week saying it would be someone who would appeal to both sides of the country we had a jump up in the cyclicals just ten or 20 minutes ago. jim cramer tweeting, yellen! much loved embraced stimulus throughout her time as fed chair even in the face of flirttations with higher inflation. different role requiring

different skills and different tools. that's one of the reasons why the market might welcome this. a long way from some of the names mentioned six to 12 months ago like elizabeth warren and much more pro-market than that. >> the markets of course like familiarity. and that is a familiar face for them she would also be the first female treasury secretary in our nation's history that is an interesting aspect of this as well going back to what's going on in the race for the vaccine, joining us for what that means for investors is jared holtz, health care strategist with jeffreys we just heard from meg all about the astrazeneca clinical trials. you believe it is too early to draw deep conclusions on the clinical trials we have seen the markets continue to go up on this news. what do you think people are missing here >> i think we just have to wait a little bit longer in terms of understanding what the duration

for these various vaccine programs is going to be before jumping to sort of a final conclusion on all of this stuff. it has been a couple weeks subsequent to the final dose for the two vaccine programs that we read out in the past couple of months today with astrazeneca it looks like pieces of that data are very good although the market died over the near term it is not as good as what pfizer and moderna have put up with those 90% plus he have's results i think what we have is a lot of good news. i think we will getting more and more clinical data over the next couple of months and we will have a better idea what have the playing field is really going to be for 2021. >> jared, i don't know if these reported prices or just based on source information but it seems like the astrazeneca vaccine costs $3 to $4 per dose whereas the pfizer one is like $25 a dose

that is a massive gap. i guess if the efficacy is really 90% to 95%, that's quite a small gap. and i guess the cost starts to play a more significant role in different countries' minds as the what they demand. >> i 100% agree, wilf, with that the astrazeneca pricing at $4 per regimen versus some of the other programs we are speaking of, pfizer, moneya, have 30, 40, $50, potentially upwards of those numbers make me think that you know with the government being the biggest purchaser in many of these vaccines at least early on, if the -- can be get better over time, if the gap can be closed even marginally as opposed to the other programs that have been read out i think cost is a major piece. i think that's because we are looking at the efficacy.

90% versus the closer to 70% when you looked at the combined data oust astrazeneca. my sentiment is over time we are going to see some convergence here and that pricing is going to play a much stronger role especially in the developing world in price sensitive region like europe where i can't imagine that astrazeneca at $3 or $4 would take a back seat to some of these other programs if the date again is more similar than different >> chad thank you for joining us great to see you astrazeneca down 1.2% as we stand off the lows of the session. back to the breaking news we reported dow jones reporting janet yellen will be the pick for treasury secretary. she will be the first female treasury secretary steve lowsman joins us now steve, a lot of rumors over the last week as to when we would get an announce men. this coming a day or two perhaps earlier than we expected janet yellan has been top of the

list in the last week or two of people's possible candidates. >> i was following the fed governor little brainard team yesterday and this morning that seemed to be a deaden that left yellen as the likely candidate. my sources say it is close but not done but the "wall street journal," no reason to doubt what they are saying at this time that president-elect biden will nominate the federal reserve chair janet yellen she has blazed trails. she was the first female federal reserve chair. now she will be the first female treasury seth. or nominated to the treasury secretary. formerly with the -- she was the chair at the council of economic advisers she has a little bit of the political experience the question is whether or not that is herren have. her strength is economics, monetary policy. whether or not she's -- she has

certainly been bested i want to say by the current fed chair, jay powell, when it comes and to politicking and dealing with congress and getting congress on your side. i am not sure janet yellen was the best at that in that position this. job as treasury secretary will demand more of her in that regard you will also remember, wilf back when she was the fed chair in 2014 she followed ben bett bernanke of elevating the issue of inequality that the federal reserve was following. she was criticized by some republicans in congress for making that a federal reserve issue. but certainly she would be supported by progressives, and understands economics and the banking system i have a hard time believing that your friends, the bankers will have too much of a problem with janet yelen. >> the other key point markets did jump a bit on this

news the dow is near the highs of the session as we speak. a different tool set at the treasury than at the fed is it safe to say that during her tenure as fed chair she erred on the side of stimulus as opposed to inflation >> that's a great point. she erred on the side of more stimulus, less inflation she raised rates once and held the line a year or so after that she is going to have someone who believes in more stimulus and believes that in the wake of the financial crisis one of the big issues was not enough system plus in that regard when it came to attacking it right now, by the way, you know, they had done a lot initially. and now the question is, should they do more she's certainly going to be an advocate of doing more and worry being the consequences down the

road the markets see stimulus with this potential nomination. steve, stick around. let's bring in kayla tausche for more on what the confirmation process could look like. >> it really depends on exactly when this nomination comes out because you remember on january 5th we have a runoff in the state of georgia for two senate seats that could decide the composition of the senate. remember when yellen was confirmed back in 2014, it was early 2014 democrats and majority leader harry reid were in control of the senate even so, yellen did secure a handful of republican votes back then the vote, according to the record, was 56 in favor of yellen, 26 against her and 18 not voting the issue here, the handful of republican senators who voted in her favor are for the most part no longer serving in congress. you can't go back to those same

folks. certainly the dynamic and partisanship on capitol hill has wouldened and become exacerbated during that time last week president-elect biden said his pick want someone would be widely accepted from the progressive side to the more moderate side. yellen as having run the san francisco fed at a time when kamala harris, the vice president-elect harris was the attorney general in california and being a labor economist when labor issues are at the forefront of what a lot of policy officials at this campaign are focused on -- that's certainly something that is at the forefront of their mind, too. and then there is the centrist support, which you know, certainly the transition team would hope that they would have that from the democratic party as well. but it's really going to come down to republican support and whether president-elect biden can reach across the aisle yet again and secure those votes for her when a handful of those members who voted for her back

in 2014, before the senate flipped, are no longer serving there. >> inheriting an economy most likely that would be virtually in a crisis, especially as we await mass vaccination that would bolster the economy potentially in the second half of the year as most economists are kps expecting. is she someone that you believe and congress believes can work across the aisle to deliver stimulus is that something that people are expecting from her and would be willing to essentially work with her to deliver the stimulus that we have been waiting for and that a lot of people in the market have been waiting for for months at this point >> certainly she is no stranger to members of congress she took several meetings and made several phone calls in her official capacity when she was running the federal reserve. we should also note that jay powell has ramped up that effort to try to bolster his relationships on the hill over the last four years even more so perhaps that is because of the

rancor that we have seen worsen in the last several years. she is seen as someone by the biden transition and by members of congress who would support a federal back stop of the economy as long as potentially necessary. i mean that was essentially her hallmark as steve was alluding to when she was running the fed in the wake of the great recession of 2008. and certainly that is the reputation that she has currently. and certainly i think the view that the biden transition has of her right now. >> kayla, thanks for that. steve, the last question from me, politics aside, clearly there is usually a good relationship between treasury and the fed. but they both have to operate at arm's length and not discuss thepgs in detail would we ever have had an example where the treasury secretary is as close to the vast majority of members on the fed? >> no. i mean, that's a great question,

whistle. hank paulson and ben bernanke had an excellent working relationship over time treasury seths and fed officials have seen more or less eye to eye until maybe you go back to the first bush administration under george w. bush -- or george h.w. bush i guess it is. i want to echo what kayla was talking about there. i believe that knot long after biden takes office and yellen is confirmed there will be a call to jay powell about restarting the programs that mnuchin shut down in short order i wonder to what extent the market when it sees janet yellen being potentially nominated to the treasury secretary sees that coming. >> that story has been confirmed.

breaking news about this which has pushed the markets to session highs. still to come, the tsa says it screened the highest number of travelers since march over the weekend. we will speak with the ceo of hawaiian airlines to see what steps he is taking to keep passengers safe. you are watching "closing bell" on cnbc. 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 hawaiian airlines announcing today it is expanding preflight covid testing. guests who have negative results will be extempt from hawaii's mandatory 14-day quarantine. joining us, hawaiian airline's ceo. thank you for joining us. >> good to be here today. >> what have you experienced in the immediate short-term, the last week or so. clearly case have been spriking across america have you seen travel pick up as we have approached thanksgiving. >> we have seen a real change since october 15th when people had the ability to avoid quarantines in hawaii with pretravel testing. and we have seen bookings and the volumes on our parps begin to accelerate from the very low

levels we had when there was no way around the quarantines things in the last week or so have stayed fairly flat in terms of forward bookings. maybe a little tick down with some of the spread of the disease throughout the mainland. but by and large, we are continuing that trend we've seen since october 15th with a little bit of recovery as we have the testing regime in place now. >> have you seen a pick up in bookings for let's say the middle of next year, polling the positive vaccine news we have got over the last two or three mondays in a row of people booking ahead in the hope that we will have herd immunity across the country because of the vaccines >> we have seen a little bit of activity into next year. but to be candid, right now the booking curve is really compressed from what we historically have. normally bookings for hawaii travel go out over three, four,

five-month period. we have seen with -- with x capacity in the market that we have right now relative to the demand that people are making more and more of these decisions at the last minute but we have seen a pickup since the october 15th news with people booking into the first quarter. what we have seen out into the summer of next year is a lot of people who had credits available because they had canceled plans to travel earlier this year have rolled some of those credits into booking a vacation and thinking about their plans for next year. >> the international air transportation association is revealing plans that they are developing a travel pass that would allow passengers to basically log their covid-19 test results or vaccination certificate for whatever makes their fellow passengers feel comfortable on a flight. is that something you would support? do you think that's the key to

really getting air travel back to where it was in 2019? >> i -- i think things like that are very helpful, actually one of the things we experienced in hawaii that has been a challenge for people is that we have a limited number of test providers that are available and all forms of verification that people have had a test are a little bit different and that that's adding some complexity to the process. so if there was a centralized clearly house for that information, i think it has the potential to make things a little more seamless and a little closer to what things were like before certainly, as we get into vaccines next year, we are going to be adding vaccines to pretravel testing as a mechanism for for validating information and i think having that

centralized clearing house again is something that could be a positive. >> party are you kind of happy as we stand here with the events of 2020 that you are exposed more the leisure travel than business travel? do you think that business travel might suffer for many years out even when we have herd immunity >> i think we thought all along that leisure travel was going to recover more quickly and so we like where we are positioned in that regard. obviously, we are not back to where we want to be at by any means so we've got a long way to go, even on the leisure side of the business as for, you know, business travel, i think as people become comfortable traveling again and as we get beyond these surges, there is going to be a return to normalcy throughout when we do but there is a prospect that business travel is a little bit slower to come back.

so we mike where we are positioned on the leisure side of the business? i for one would love to take a business trip to hawaii some day. that may happen in the future. do you have any data or insight you can share about how transmissible the virus on the airplanes? have you gotten any indications of passengers actually getting sick on one of your planes from a fellow passenger >> leslie, when you are ready to take that business trip by the middle of december we are going to be starting our new york service again. you are welcome to fly on hawaiian airlines as soon as you decide the take that trip. in terms of transmissibility, there has been a lot of research that's come out lately that you have seen from researchers at harvard and the department of defense study that was done with united airlines that shows that the aircraft environment itself is actually one of the safest if not the safest indoor places

people can be with respect to the spread of the disease. a lot of that has to do with the ventilation on the airplanes, the hepa filters, introducing fresh air to the cabin continuously add to that the protocols that we and other airlines have put in place with regards to enhanced disinfection of the airplanes, ensuring that everyone is wearing face coverings on board we're very comfortable with the safety of the travel experience. of course you do have people coming together, and so that does create some risks and there are other parts of the travel journey where we don't have all the ventilation that we have inside the airplane but we think we have got good procedures as a company and as an industry to mitigate that and we think that it is a safe environment for people to be able to travel on airlines.

>> all right peter ingram, ceo of hawaiian airlines, thank you again for joining news thank you very much. time now for a cnbc news update with sue herera >> here's what's happening at this hour everyone uk prime minister boris johnson saying he expects britain will vaccinate nearly all people at high risk from covid-19 by easter he notes vaccinations will be highly recommended, but they will not be mandatory. the los angeles public school district says it plans to give out over 1.5 million thanksgiving meals the school district says it has provided 80 million meals to families in need since the beginning of the pandemic. across the country court officials saying few people summoned for jury duty are showing up it is delaying trials and grand juries and putting stress on overburdened courts. former renault nissan chief carlos ghosn was wrongly

detained and deserves compensation the japanese government denounced that report as totally unacceptable you are up to date that's the news update this hour wilf back to you. still ahead, despite the pandemic the national retail federation expecting a jump in sales this year. we will speak with the ceo of sak's will join us here's a look at bonds the ten-year at .86.

before the bell. here's where we stand in the markets today. shaping up all in the green, firmly in the green. although coming off the session highs after that news that president-elect biden plans to nominate janet yellen as treasury secretary up next, mark owe cadda weighs in on what this announcement means for the market "closing bell" will be right back hey, dad!

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stocks higher today. they have taken another leg up on the headlines that janet yellen will be president-elect biden's pick for the treasury secretary. at the top of the s&p energy leading the charge occidental is up 16% apache, diamond, devin up there as well. almost double digits but all of those stocks and the xop is up 8%, 38% in the month of november. energy very much the best performing sector, followed by financials albeit finances only up 2%. well behind the energy sector. >> i almost had to look at that twice to make sure i was seeing things correctly 8% for energy today. remarkable for more, let's bring in mark okada. the firm launched last week specialized in private and alternative credit

mark, happy to have you here thank you for joining us. >> it is great to be back, leslie >> i first want to get your thoughts on the news that cnbc.com has now confirmed, that janet yellen will be nominated by a biden administration as treasury secretary what do you think it means for the market >> i think the market likes it obviously with the response. this was something that was kind of leaked a couple days ago. and i think when you -- when you are faced with a new regime and the uncertainty that comes from it, it's nice to have people that are familiar to you and certainly everyone knows janet yellen. >> roonl we have seen -- speaking of the treasury, the treasury's decision to pull back on some of the programs, including the one allowing the fed to buy up corporate debt and others that issues loans to businesses and localities in the middle of the pandemic what has that done for the credit markets what do you think the new administration could do to potentially bridge the gap of some of the situations that we

are seeing right now >> those are great questions and obviously, it does matter. if you think about what has happened within the credit space and this market in general the fed has done something that it never did. it reached across the line and bought corporate debt. i always felt that that was kind of a line they shouldn't cross but they did and certainly that influenced the market you think about the reason why i am back and why sycamore tree is launching in this period we have had decades of experience, and we want to apply that against a market that has so much complexity, so many changes. and specifically to your question, leslie, if this doesn't get reinstated next year by the new administration, you still have all of this massive liquidity risk that the fed put -- you know, is showing up right now. we will see what happens i'm sure that they will do doing

rational i am sure we have all come to get very comfortable with our governments being rational that's a joke a little bit but, certainly, the volatility that can come from these markets, the fact that the markets are so complex issy i am back, why our firm is back we are very excited to be here and to be able to provide the veteran advice that the team provides. >> mark, are you suggesting that credit markets have remained too relaxed, whether it is throat throughout theier as a whole or just the last couple of weeks when we have seen some of these measures potentially threatened? >> wilfred, the cognitive business that we all feel when we stare at market loefls that are trading, especially in credit, back to precovid levels, when the virus is ramping and really kind of uncontrolled across the globe is something

that we all feel if the answer is, you know, relaxed or not, i thinkit's really a function of this massive influx of liquidity into the space. but also i think rational investors saying, what do i do about that how do i field yield, yield all he turn tiffs or returns against something that i think is way mispriced? i would tell that you within credit, which is our area of expert trees, and private credit, there are a lot of places where there is still value, where the fed has not distorted market prices. now, i not everywhere, but we are seeing institutional investors grow their allocations to private debt in the midst of a pandemic and these people are very smart. they are doing the right thing in really reacting to some of the cognitive -- that we all feel, which is that prices don't reflect reality. and maybe they are looking too

far ahead and maybe in the near term they feel too relaxed we are not getting the risk premium that we need for really the risk thatter with seeing every day. >> where are you finding opportunity on both the long and the short side in the reason i ask about the short side specifically is because some hedge funds have gotten pretty historically rich this year by betting against the investment grade products they see their case as stocks rise it is a hedge against all the hospitalizations is that an opportunity you see right now in the markets >> that's a great question i will remind you that we are not a hedge fund but i do think that that risk avoidance is a critical aspect for all investors. i have always -- i think i coined the phrase output by avoidance. a lot of time it is what you don't own that makes you a hero at the end of the day.

this is the time to be thinking about that there are parts of the i.t. market for example, that are sechlly not pricing in reality i just look looked at the lodging sector within high yield bonds. it is trading tight, tight to the index. think about all the things facing longing going forward that certainly is an industry that has a lot of question marks behind it, yet it is trading tight to where the overall high yield index is trading that being said, i do think that what we have done as far as looking at our industries and our market opportunities is we have taken a look at the leveraged loan asset class and the coo tranche investing. there are over 12,000 coo traurchls and -- issuers they are not directly buying those tranches there is still a lot of opportunity in there in fact we see something closer

to maybe 100 billion of outstanding credits that we find interesting that that's a big number thank you for joining us mark okada. when we come back. gap gets an upgrade. and nevada puts new restrictions on casinos those stories and many more when we take you inside the "market zone." as a reminder, you can always watch or listen to us ve olin the go on the cnbc app we are up 350 on the dow we'll be right back. [squeaky shopping cart]

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mike santoli here to break town these crucial moments of the trading day. today would have got stephanie link from high tower as well good afternoon to you steph. the broader markets. stocks rallying once again on a monday hitting session highs this hour after reports that president-elect biden plans to nominate former federal reserve chair janet yellen as treasury secretary. mike, you joined us after this story broke. i will start on that markets i guess embracing the idea that this is someone that they know and someone that herself has embraced stimulus in the past, albeit the monetary side not the fiscal side. >> a careful performance on the performance of the economy, trying to maximize employment. all the thing that i think the market craves rhett now, trying to get the economy back to a place where it is running hot without too much concern about deficit hawkery or any of that also i think the market is sensitive at the moment to breathing in the fumes the

clinton/barack obama heyday of markets. nobody is saying we are going back to anything like this this general accepts of centrism, not too focused on the regulatory side. also if you think this is a moment where you have to solidify the links between the tress ree -- between the executive branch and the fed to have a unified approach to the economic stimulus or performance in general, leerl she would be a person who would represent a movement like that pleasing to all sides of the street here. >> to that end, obviously yellen would know the limitation has the fed has at this point better than nearly anybody with regard to being able to stimulate the economy. how do you think that factors in. >> she is shb we know. her demeanor, her intellect and we any she is awfully dovish all of those things point to a positive sign. again, whenever a administration

takes over and always many uncertainties and unknowns i think it is wonderful the announcement came today along with some of the other appointments we got. leslie, we were up before this, because of the positive vaccine news and cyclicals were driving it. but i don't think it was just the vaccine news i think it was the good market pmi. i think the chicago fed national activity index that came in for the sixth straight month higher which is very good a leading indicator. i think it is the boeing news. it has ripple effects for the industrial economy all these things added up. the cherry on top is janet yellen which i think is very good news. >> that's a good point a huge slew of positive news on the economic news. meanwhile, nevada is imposing restrictions on casinos. contessa brewer. >> the governor ordered casinos to reduce capacity from % to 25% as the state enter as three-week

pause because of its skyrocketing coronavirus case load he is also mandating masks in public tourism is struggling, group business is nenlible mgm is closing mandalay bay and the mirage monday through thursday there you can see the performance of some of the stocks othering are going to close mid week as well the silver lining on the new restrictions a skoip insider tells me look this is the slow period for the las vegas strip even in the good years if he can book 25% capacity, hey, they can live with that leslie, wilf. >> so much for that. let's turn to row tail gap getting an upgrade on tfrom morgan foot lock er downgraded.

bertha comes. >> the nrf is forecasting holiday sales growth of 3.6 to 5.2% with record spending topping $750 billion omnichannel on line sales expect to see the biggest growth up 20 to 30% less spending on travel and optimism over new vaccines could fuel the strongest holiday growth at the high end of estimates since the federal tax cut passed if december, 2017 macy's and apparel retailers surging with gap, ambercrombie and target all at new highs. new pandemic closures present a near term risk ceo like macy's are pushing for an even playing field this time around based on society of protocols. >> reporter: steph, for much of the fall period it seems to be that stimulus checks were running out and also without the seasons and so on and so forth we wouldn't have a normal holiday shopping period but the optimism seems to be coming back

despite that. >> yeah. i mean, it has been a nice surprise we know how important the consumer is at 70% of the u.s. gdp. we want to see them do well. i think the consumer feels good because of housing home prices are giving them confidence more people are going back to work we still need to do a lot more of that. but at least we are headed in the right direction. we have seen 14% savings rate from the consumer versus 5% historically a lot of that is because the consumer since march is spending $350 billion less on travel, leaseture and retail all of that is pent up demand. i think they have money to spend. i think they want to spend of i think they are spending differently, right it used to be experiences. now it is thing. that's going continue until we get the vaccine. >> to that point, people are spending their money differently in the pandemic, spending it

differently largely on line as opposed to in stores do you except the see a change in the types of thing people want to buy this holiday season compared to what they have been buying earlier this year apparel has been lighter, home improvement aspects have been stronger do you expect that to flip during the holiday season and people revert back to traditional holiday gifts like sweaters. >> you would think there is room there for that what i think is going to be interesting is how it develops into next year and and we are comparing to what was sole this year there was a tremendous amount of big ticket stuff around the house and including cars then does it go back to experiences. gadgets and technology have always been high i am sure in the next months you are going to hear it was a hot

category this year, this satisfies there is a cushion of savings and foregone travel dollars that can be reallocated i think the question is has the market sorted that out already with this run we have had in chain retail stocks. >> and how that plays into the discussion of stimulus down the washington tiktok's format continues to inspire copycats snap announcing spotlight, which looks strikingly similar the tiktok they will show users top snaps in a feed that they can tap or swipe through. it will play them in a continuous loop until users tap or swipe to the next one just like tiktok. snap is on track to close at an all time high on the announcement but, mike, isn't there enough competition in this case that -- you know, how much benefit can they get by copying that

>> i don't know if you want to think of it as a tiktok killer, if it is going to really take direct market share or you have to participate in the space. it is an adding of a feature i think one of the lessons of this period of the last six or eight months be that that the appetite for engagement and spending time on social media apps in general is gathering than what we anticipated before i am a little bit sad to say yeah, i think it is about reminding people that they have the eyeballs. >> mike, another strong monday what are the internals showing >> also strong, wilf if anything the average stock and the overall breadth numbers are stronger than you would think from the index moves pretty solid absolutely. talk about the u.s. dollar index. haven't talked about that really today. it bounced off of a two and a half year low this morning, around 92. it certainly still around there. but you see kind of the bottom of that range developing i think the fact that it has

been down there is supportive of the general global risk taking appetites. then the volatility index. definitely going to be a downside bias to the vix here you would think. it is down about a point, you have holiday coming up holidays are coming up you have a upward or sideways grind in the markets that could trigger traders who take their cue from volatility levels as to whether they take more exposure or not >> 1.1% up on the du 325 points this was another day of rotation all three of the indices are higher sector performance is more starkly different. energy up 7% financials up nice he, too, up 2% industrials up 1. %. clearly, it is energy that has

comfortly the biggest lead two sectors in the red, real estate and health care gold is down 2%. we have got the dollar a little bit lower -- a little bit higher as well. at the bell we are up by .6% on the s&p. the dow is up 1.2% the nasdaq up .25% welcome back to "closing bell" i'm leslie picker in for sara eisen along with wilfred frost mike santoli, the dow, s&p, nasdaq, and the russell 2000 all in the green today. the russell 2000 up 1.85% followed by the dow, gaining 30 points the s&p up by .6%. nasdaq, .2% at the close today as wilf was talking about, that rotation that we have seen pretty much every monday where we have gotten this positive news on the vaccine front still

in focus told. the big laggards on the s&p sectors, health care, tech, real estate, utilities. while in the green you saw a big jump in energy, financials, industrials, and materials as well but biggest lager on the s&p today was apple, down about 3% today. coming up, saks fifth avenue's ceo on his outlook for the holiday and the effect of lockdowns. still with us, stephanie link and tiffani mcgee joins the conversation mike is this something we can expect now, on a monday we get vaccine news, then we see this rotation how much is that rotation working itself into the market versus the shock we saw a couple weeks ago. >> the rotational action was present really even before the virus news, before that, two weeks ago today and has been reinforced by i think the market

hunting for reassurance that you have recovery dynamics intact ahead and we can look ahead to a time in the early part of in gs year when you have a lot things kicking in for growth. now i think you have to keep in mind today the vaccine reaction was not all that profound. i think you can see you have almost used of the catalyst value of just announcement of vaccine trials and it is waiting for the premise of what goes ahead. s&p has been sideways for two months it closed here september 2nd it is the way you would want to draw it up i think the one issue the market might have is everyone is kind of on board with this story, year-end rally, cyclicals, value, we love the stuff that's working. we have to see how much more the market gives new that direction. >> tiffany, do you feel that this rotation has further to go? >> so we kind of view this

rotation not as a full rotation that's sticky but almost like a pendulum the beginningof that pendulum of course was in march -- actually february with the global pandemic and it swung off and we were investing in stay-at-home stocks and clearly tech now, you know, while we had glimmers of little bit of a rotation throughout, you know, we really saw that since the pfizer news on november 9th, and then the moderna and then the other good pfizer news so we really saw this, you know, almost like a total 180 with value doing well, of course, you guys mentioned, and so forth but really around, you know, class -- classes style so we think that, you know, the market is trying to figure out its new normal right? so we don't think that we are ever going to go back to where we were before

we do have glimmers of hope with the vaccine. so you can see that light at the end of the tunnel. but you know, we are, you know, clearly, you know, we believe that the names that are really going to kind of do well over the long run are these names especially in tech that have kind of changed the way that we live and the way we do business. so we are again -- again, the pendulum is kind of swung up here and everybody is calling it rotation think think it is going to come back and rock back and forth until we find our new normal in the market supposed to be a forward indicator looking out a year or six mondays from now which look better than the current situation with regards to the virus and the economy as an investor how do you handle the tug-of-war between on the one hand you have vaccine news that looks by all measures positive and on the other hand you have rising hospitalizations, rising case numbers, restrictions on local

municipalities across the country? how do you trade that right now? >> well, it's the difference between diagnose. >> story, steffi go ahead. >> i am sorry i thought you said tiffany, not stephanie >> tiffany, stephanie, sounds the same >> it was for -- >> i think it depends. >> tiffany, it's for me. okay so let's go back it is the deference between short-term and long term short-term you can get wrapped up in all this noise on a day to day basis and be a day trader if that's what you want to do i look at longer term. to your point, eight to ten to ten to 12 sometimes 24 months period, maybe longer because i believe like tiffany just said in secular growth i believe in total addressable markets you have got to give it time that's why i like the barbell of

owning some tech and some cyclicalless but eight to ten, months down the road we are going to have a vaccine maybe more we are going to have better growth we are probably going to have better profit growth if you have a vaccine earnings estimates are probably too low for next year. and there are people calling for 30% earnings growth next year. would you imagine if we got higher than that that's not priced into the market the companies have done amazing jobs in cutting costs, et cetera also, we are going to know the president and the mix of congress, which i think we already know but we will know for certain. i think one other reason why we are rallying on the yellen news is because i think people thought elizabeth warren might get that position and it might be a bit more draconian in terms of the measures taken. you think longer term, you discount it back and find out what stocks to pick. when news broke that

president-elect biden plans to nominate former federal reserve chairianette yellen to become tressy secretary the market jumps. steve lessman has more >> let me answer a question you asked in the last hour has it ever happened it has g. william millner the late '70s was a former federal chair who became a treasury secretary. and one other time this movement from the fed to the treasury is not of course unprecedented. janet yellen would become the second person to do fed trar to treasury she would be the first woman in 231 years to head the treasury and obvious she was the first woman central banker that we have had i think the big question is what does this mean for policy? we have seen the dollar weaken a little bit, stocks do better i think that's becausethere is a belief janet yellen believe

more in stimulus especially now as she would inherit a economy that remains in crisis but has promise down the road. here's what she said when she was asked by sara eisen on the 4:00 show -- that was back in april about what would happen if the virus went on longer here's her response if the virus went on. >> if it lasts a long time there would need to be additional support for unemployment insurance, possibly further checks to support other needs that households have i think state and local governments need more support than the c.a.r.e.s. act provided perhaps health insurance, particularly for workers who got health insurance lieu their jobs and that's been severed. those would be things on my list >> and those are things that are pretty much on the list of many i think in biden administration as well as democrats in general

and to an extent republicans wilf as we confront the continued coronavirus crisis i would say one thing, that she would have to deal with politics in a way she did not have to did as fed chair and that would be something that would be perhaps challenge for her as she goes into a job that is as much political as it is economic wilf. >> any indication that she would be concerned about the size the deficit and the national debt in a couple of year's time? or is she perhaps more relaxed about that than perhaps any other possible candidate >> i don't think she's more or less relaxed i think she has the same attitude that most sort of conventional wisdom in economic, it is something you need the worry about, something you need to put on a sustainable path but right now it is not an issue and ultimately you have better results when it comes to the economy and revenue and deficits if you were to stimulate an economy running below aggregate

demand whistle, i know how closely you cover the banks and regulation, she is somebody who has supported greater banking regulation rather than more of the loosening up that seems to have happened under the current regime at the federal government right now. >> it is interesting on that front. obviously the fed chair is crucial to that. but the fed vice chair of supervision doesn't change for at least a year. and the heads of all other -- are more likely unless they are fired outright to be into 2022 it is interesting, on her last day as fed chair of course they imposed the asset cap on wells fargo, which was very significant, indeed. but it was on her last day this -- i don't know a lot of moving parts there. >> yeah. >> and actually at treasury you could argue perhaps slightly less influence on the regulation than at the fed and some of those other key positions going forward. but that's a debate that we could have for quite some time. >> shurm i mean, i think that this fed has not gone as far as

the administration has wanted it to go in in terms of loosening regulations on the banks but it had done more than if yellen continued as fed chair i believe also also revisit some of the dodd/frank rules. >> there is always room for revisiting it. i am not sure in terms of any direction. steve manchin thanks for that by the way, much more to discuss on this point sara bloom raskin will join us coming up shortly to discuss what janet yellen's pick as treasury secretary means for markets. >> i am curious, based on the market reaction it seems like most don't expect some of biden's tax rules to be pushed by janet yellen. is that how you read it?

>> greater than anyone else. if you look at some of her commentary after she left the fed she essentially said there was no sustainable -- not a great sustainable, you know, advantage in growth from these taxes. but that doesn't necessarily mean that all of a sudden repealing them becomes a big priority one thing to point out, even though the general idea is that she is dovish, there are progressives who think she is too moderate and that she was standing in the way to getting to full employment it is not universal that everyone says she is dovish. acceptable to both sides is a big piece of that? mike thanks for that stephanie, tiffany, thank you for joining us -- i do see the confusion on the name there. quite easy >> both great names. the national retail

federation predicting a strong holiday shopping season this year up next the ceo of saks fifth avenue is preparing for a surge in on line shopping with many americans still concerned about going to stores. we are back in 90 seconds.

it forecast holiday season sales will grow .9%, the lowest growth rate since it began tracking sales in 2008 vastly different projections here joining us now to talk about the holiday shopping season amid the pandemic, someone who is really on the ground and can give a good sense what have the forecasts are, mark metrick, saks fifth avenue president and ceo. what are you expecting this holiday season help us understand what's going on. >> i have to tell you that mat shay and those guys are geniuses we are cautiously optimistic about the holiday. we are feeling -- if you read and think about how they are approaching it, it is about the shift from experiencetial into products and goods i feel good. i think the consumer is ready. they want to splurge they want to indulge

they want some escapism. it is the polls. it is cautious optimism but certainly optimism. >> how will they be splurging? in your stores mostly on line how do you translate the holiday season experience on line when people are so used to going to the mall with their family, and doing the whole black friday thing and looking at the windows which saks is so well-known for, and the holiday music and all of that how do you translate that into an online experience >> sure. first, look, we still believe in our stores we believed in our stores through this crisis. honestly, since what we have called the reentry period at saks our stores have been performing about flat the last year on a rolling basis since opening. we haven't seen some dramatic falloff there. traffic has been done but the conversions are way up on line is something that's overindexed and has been and was supposed to be even absent the

pandemic so, you know, we have been working at saks even before this about ways to translate the theater what have the store is into this next normal. an example of that is tonight we are unveiling our holiday windows and light show on fifth avenue and we are doing it live streamed over saks.com that used to be crowds of people in the streets, shoulder to shoulder that's just not how we do it in 2020 it is all about making this pivot right now. >> bhark mark. what about consumer spend over all? clearly there hasn't been a second big bounce of stimulus. some are concerned that will system spending. on the flip side does good news of coming vaccines offset that >> in the luxury space we have the market you can see, obviously you are talking about it today, even lots of promise there. that's a big driver also the confidence that's coming

around and i believe that consumer spend, it is a pie, and i think that pie is shifting ufl saw what is happening in gaming in nevada and what's going on there. it is travel, leisure. other things that are turning into retail sales for us so, you know, it is a pie. i don't -- right now i worry about getting as much of that as i can. >> mark what is your strategic plan as municipalities start to enforce greater restrictionings as cases rise and they are trying to prevent you know hospitals from getting overwhelmed, what strategic measures are you taking to make sure your consumers and your employees are safe. >> we constructed a rubric right out of the chute in march. it is a decision tree that goes through -- it is four key drivers, obviously it is the government and health experts and what they are saying it is really about the health and safety of our people, our

customers, both internal and external the economics of being open. you can be open even if you don't have to close, and nobody comes. so why be open then of course it is the local community, and how do they feel about it look, the bottom line is we closed our new york flagship truly prior to any shelter in place order that came or mandatory close. we were the first big store in new york stoi do so. we are -- we really are putting our consumer, both or internal, our associates and our consumer first. >> mark, are there any particular products that you are putting right at the front of the store or right at the top of the website because of all the events of 2020 that you think could be top sellers in the holiday season that maybe never in the past would have been considered a holiday item? >> you know, masks for example that's like the new iphone cover. everyone is going to have one. as far as front and forward,

saks is in the fashion business. we are going to have what is in fashion. some of it fits what's going on. luxe lounge, more comfortable dregs. that will be much more pronounced gives giving. house shoes. who would have thought slippers would be something big these are the holiday trends people are getting ready and right now they are buying footwear, they are buying handbags they are buying accessories for themselves men are buying everything. so it is an exciting time. and being in the fashion business right now means you have got to meet the customer where they want to be. >> and meeting the customer where they want to be and keeping them safe, how much is that costing you amazon said their covid-related costs were about $4 billion. how much is that for saks? >> it is not there but maybe on a percent to sales basis it is close. it is not outside of extraordinary.

you know, i think it is okay for us to manage it. again, we are much more on the physical plan. it is about keeping things sanitized. keeping things fresh making sure we are cycling through stof we have made some physical improvements to our stores saks was built for social distancing we are not dense to begin with it wasn't too burden some. >> masks would be a good stocking stuffer makes sense that you would put that front and center. >> leslie arc small handbag to put your mask in that's what you have got to get. >> i will make sure to tell my family that. thank you mark, appreciate you joining us. up next, mike santoli looks as why history says the boom in home builder stocks to be at risk. plus we will 13e with rmfoer treasury secretary sara bloom raskin about joe biden's pick of

janet yellen to lead treasury. ♪ you can go your own way

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welcome back let's send it over to mike santoli. checking in on the housing market what's going on, mike. >> the inventory of homes for sale is at a record low. right here you have two and a half months worth of inventory relative to the latest sales

volumes. that looks really good based on history. focus in on this period, a previous low in the last cycle, when the housing bubble was just getting going in 2005. massive supply in response, lots of building, heavy turnover. that's when you had the boom in home building. look at the home builders etf. since its inception in early 2006 close to the peak of that bubble that was the time when they more or less peaked even though the market stayed okay for another year and a half that was the peak and actually the time to buy this group really for a big tidal shift move was when supply was tremendously heavy after the 2009 bust and into then into 2011 and '12 you have had a massive overhang. and then it has come back. i am not saying it is over yet but at some point the response will have built in more than

demand i think you have to keep in mind the broader cyclical tendencies here >> the other question of course is where rates are in 12 month's time and if refinancing activities already peaked even if people are not purchasing a fresh home we will see if that changes directions. up next, stocks moving higher into the close as president-elect biden named janet yellen as his treasury secretary nominee. we will speak with sara bloom raskin about that. we'll be right back. tax-smart investing strategies, and with brokerage accounts online trades are commission free. personalized advice. unmatched value. at fidelity, you can have both. a livcustomizeperd value. iquickbooks for me. okay, you're all set up. thanks! that was my business gi, this one's casual. get set up right with a

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stocks finishing higher following news that president-elect biden is expected to nominate former federal reserve chair janet yellen for treasury secretary f. confirmed she would be the first woman to hold the position for more on what this nomination could mean for the market and its economy let's bring in sara bloom raskin great to see you thank you for joining us i guess my first question to you as someone who has been both at treasury and at the fed is what are the different skills needed for each job >> oh, it is a great, a great question really a great moment, too, to have janet yellen at the helm of the treasury it's something, too, wilf, because you have got, really, two skill sets here melded in one. because the treasury and the fed

engage in different forms of policy right? you have got the fed engaged in monetary policy. as an independent agency and you have got treasury engaged in fiscal policy both, however, deal with issues of regulatory policy and both right now are very concerned about conditions in the economy. so while both treasury and fed have different sets of tools, they use them differently. they require different, you know, different organizations and different skill sets i think janet is going to combine both of those really quite, quite lovely. in a really good way and this is -- you know, this is a treacherous time i mean the tasks ahead here are really, really challenging with the number of people who are -- remain unemployed, and the lack of a stimulus coming out of congress you saw last week secretary mnuchin pull back on the 13-3

facility this is a treacherous moment and one really where treasury -- there is really not a moment to spare here and chair yellen will really have to hit the ground running >> sara, i guess most people would look back at her time as fed chair and say that she was fairly committed to stimulus the question is whether that translates across when the potential risk from too much stimulus ceases just to be i guess higher inflation and is something more in line with too big a deficit, and a weaker currency, so on and so forth do you think she will still be fairly committed to stimulus. >> i think she will. i think as most economists arefight right now, they see the moment here in the economy as one that is crying for stimulus, one that essentially is really fraught at the moment. and i think she will remain quite committed to stimulus.

it is going to be, you know, a challenge to make the case, really right now in the congress for stimulus because you see of course that that has been something that hasn't been achieved, as necessary as it is right now. you are right, too -- you know, to bring up the notion of deficits and she will have to be quite concerned about that but she would have also had to lock at that at the fed. but i think the considerations she will be focused on are going to be quite similar. >> you mentioned it is imperative for her to hit the ground running but the transition hasn't officially taken place. you had 164 business leaders writing to the trump administration today urging that administration to move forward with the transition. as that delay continues for the additional transition to take place, what gets lost in the official treasury secretary

role what types of things should she be working on now that she may not be able to do because that transition hasn't taken place yet? >> right it is a great question, leslie i think one thing she's not going to be able to see because of the slow pace of the transition, she's not going going to be able to see where vacantsies are, essentially where there are some gaping holes at treasury. so she doesn't quite know yet where the necessary skill sets are that need to be replenished. i think that is one function that again if the transition team had the chance to be allowed in, so to speak at treasury and at the other agencies as well, she would be able to see where the gaps are that's going to be hard to kind of catch up on but, really most importantly is the fact that there is really not a minute to spare in terms of the needs of the economy. i mean, if you -- if you know, if you recall, you know, we have

had people who have had their stimulus have been long -- you know, long gone. they are facing evictions. they are facing higher and constant utility bills they essentially still have their student loan debt to contend with they have mortgages. there has been nothing to deal with that. and that is going to create i think a real pressure point at the you know household and small business level that is going to be very, very challenging to address. and that really needs to get front loaded that's the kind of stimulus essentially that we -- we need at the moment. and that will be postponed, i think, the longer it takes this transition, you know, this transition to sort of lift off >> sarah you have had and continue to have an extraordinary career in this space i wondered how hard it has been, do you think -- or how much harder has it been to progress as a woman what inspiration people in this

field will take from having a first female treasury secretary. >> i think women and young women are going to take a lot of inspiration at this moment of course there wasn't hand a female secretary of treasury before and people are going to look up to janet yellen, especially young women who want to pursue economics and want to know essentially that they can make what they are studying applicable in terms of dealing with the real challenges and we have so many right now. the challenges are immense and to see somebody who has a ph.d. in economics, you know, ascend to that level i think will be very inspiring, he have inspiring, indeed. >> sarah i'm curious, you are very connected in the fed world. have you spoken with janet yellen about this nomination what her plans are assuming she

ascends to the role and is eventually appointed. >> we are friends. we had regular lunches prepandemic. she is i know very excited about the possibility of serving as president-elect biden's secretary of treasury. and i know she will -- you know, she will bring her all to it and she will hit the ground running. >> do you think that she will have trouble getting nominated i guess this is just anyone's opinion, but, clearly, president-elect biden said last week his pick will apply to all wings of the democratic party. >> she was, remember, ircha of the fed. that is not an easy position to be confirmed for she was confirmed a number of times. not just as chair of the fed but she was a governor on the federal reserve board, which

required confirmation. so she has been through this before a lot of the republicans who confirmed her before maybe are not there anymore, but i think they -- they understand the role that she had and they will -- you know, i see no reason why they would want to hold back such a qualified nominee. >> in terms of just politicking and being able to negotiate, obviously, there have been you know countless observations about the polarity involved in washington right now historically the "new york times" pointed out this instance in 2015 where mulvaney who was then a south carolina republican in congress, he said that you are sticking your nose in places that you have no business to be, referring to, you know, her overstepping her boundaries by talking about inequality, aspects like that. do you think she will be someone who can kind of reach across the

aisle to effectuate policy and actual change in the economy right now? >> yes, i do and these issues are not at all -- they should not at all be partisan, issues having to do with income and wealth inequality that shouldn't be a partisan issue. issues regarding the resilience middle class, please, that can't be a partisan issue. issues regarding the enforcement of laws and making sure that, you know, that there isn't fraud and abuse, that isn't, you know, partisan even issues regarding climate at this -- at this stage should not be partisan. and the extent to which she weaves all of these issues into her sense of economic policy i think is a good thing. and it actually is something that the american people welcome. and i think that this notion of, you know, kind of stepping back will probably not be a wise one for, you know, for her or anybody in the world because to

do this position well you have to understand all the dimensions to it. >> sarah, always a pleasure. thank you for joining us. >> sure. >> sarah bloom raskin joining us there. tomorrow don't miss our interview with former treasury secretary jockack lew. the ongoing covid surge is forcing l.a. county to close outdoor dining a look at the damage that could have on california's economy and the restaurant industry later on "closing bell. hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you like... like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most plus $0 commissions for online u.s. listed stocks.

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welcome back time for a cnbc news update with sue herera hi, sue. >> hello wilf, hello everybody here's what's happening at this hour we begin with the house ways and means chairman who is urging the head of the general services administration to allow the presidential process to officially begin he says gsa administrator emily murphy, in her refusal to do so, is endangering lives. at the vatican, pope francis holding an unprecedented meeting with five players in the nba the players were given a papal audience to discuss their

efforts to discuss social and economic injustice in their communities. the milwaukee bucks will not be playing with an audience at home games the team says the decision was made to comply with state and local coronavirus guidelines. we told you last week that this little guy was going to get a name now the national zoo hassa held a vote to choose one the winner, wither inially 135,000 votes, is a chinese name that translates to "little miracle" it was almost unanimous out of the four names, because he is a little miracle in this pandemic year. >> in this pandemic year, we could all use a little miracle. >> no kidding. >> my gosh, is he cute. >> cute. >> i am not sure we can all do the little panda, though. >> because they grow to be fairly sizable, i understand. >> huge. >> so sweet. >> and hopefully the national zoo will be able to open up again. they are easy cloed for coronavirus. and then people can go see the

little miracle. >> hopefully not before he becomes a big miracle. >> true. hopefully it won't take that long. >> remarkable nonetheless. up next, spac's are growing a lot this year. who are the faces behind this growing trend? what could change if things don't go their way i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪ visitbefore money, peoplearn tools, cattle, grain, even shells represented value.

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welcome back spaces have burst into the mainstream this year with speed and vor asity that few pockets of finance have seen before. it's why we are taking a closer look in spac in action spac stands for special purpose acquisition k. it starts with a person who works as an underwriter. they are writing essentially a blank check to the sponsor to find a future merger target within a certain period of time usually about two years. the sponsor automatically gets a hefty pay day, typically 20% of the new equity investors can then redeem at the listing price plus interest if they choose too. that can help product against the downside spaces are popular more this year than in the prior decade combined. the explosion going into spac is

$8 million show of ipos raced by operating companies this year. and it is not a slow year for those types of ipos. but this party can't go on forever. >> i am looking forward to much more of this weekly segment. who helps them raise the money are the fees for that comparable to traditional men's like a company ipo that's already an established question >> a good question they are traditional underwriters that you see in ipos they are big large banks that take companies public. they will also take public these spacs this year, in 2020, pretty much every firm across the board is willing to do that now the fees are similar to that of an ipo. typically the big difference here is that you would see fewer underwriters on these details, you may see just one underwriter as opposed to an ipo of an operating company where there could be as many as 35

underwriters that are all kind of selling that stock to their clients. that's the difference, the pie is similar in percentage in terms of the growth spread but it is not spread among as many bank so if you are the single underwriter you get to take home a nice paycheck from underwriting that kind of deal. >> there has been a lot of those being issued this year i guess more on the spac in action, great tagline as well throughout the week here on cnbc, and on "closing bell" in particular still ahead, california in turmoil, l.a. just two days away from shutting down odoutor dining amid a spike in covid case details when "closing bell" returns. this is decision tech.

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so you don't wait for life. you live it. l.a. is set to shut down outdoor dining amid a record spike in statewide cases now with the details >> that's right. l.a. county taking that drastic step and shutting outdoor dining starting wednesday ahead of the holiday weekend as california covid cases are growing faster than ever before, 94 percent of the state's population is already living in the most restrictive tier l.a. pat connaughton one o l.a. counties is one of the top

counties contributing to the rise the ban will last three weeks. restaurants be open for take out and delivery some say the closure of outdoor dining could shut them down for good this as hundreds gj gather in huntington beach to protest the late-night curfew went into effect saturday night. could see a stricter should shutdown than the one seen in march. >> clearly outdoor dining is a severe step, not even indoor dining is taking place in other states and one of the state that's could have benefited from outdoor dining throughout the winter time. >> definitely with the heat lamps you could make due and certainly a lot of restaurant owners are making that argument, why take away outdoor dining but

the numbers are sky rocketing, growing faster than before even. it's just a drastic step that the county is taking we saw those protests in huntington beach with about 400 people showing up there. i guess the argument you can make just get people together when the masks come off and are close to each other that just increases the chances of things spreading but economically is a devastating blow to a lost small businesses. >> do restaurants find it makes sense to do delivery or take out or are a lot of them closing the doors to wait for the three weeks to be over >> that's a great question that's exactly the calculus that a lot of restaurant owners are making right now. also it's a huge chain, the distributors are getting hit hard and having had this announcement come out yesterday, on notice on wednesday all of the restaurant pantries are

stocked up so they will have inventory that will perrish soon, yet another hit in a tough situation. >> tough indeed, thank you up next, wall street straight ahead,rein bakg down the big earnings names close contac "closing bell" will be right back "in one quarter of an hour, your savings will tower... over you. figuratively speaking." but that's not catchy, is it? that's not going to swim about in your brain. so i thought, what about... 15 minutes. 15 percent. serendipity. 15 minutes could save you 15% or more on car insurance.

looking ahead to tomorrow, retail earning season still in full swing, we'll hear from best buy, gap, nordstrom, dick's sporting good, dollar tree, american eagle will also report. it's all of a sudden amazing these retail earnings come in conjunction with the holiday season what do you expect? >> i think the attention will be how is holiday pacing and what's it look like without the cadence of a full black friday event seeing a lot of pulling of online orders. the chains feel they made it to the other side in terms of having finance and inventory in tact we'll see if that is confirmed or refutes once they give the numbers on the calls. >> just bringing some reaction to the news president-elect is likely to nominate janet yellen

as treasure secretary. senator warren tweeting this -- i meamean, the thing that stands out to me, regardless why, the progressive party is supporting this choice. as to the reason, holding wells fargo accountable is interesting, seems like a final day as fed chair action that janet yellen took and that the fed missed the whole issue for couple years, they've been too soft or asleep at the wheel a little bit with wells fargo though she did take that action on the final day to impose the tax on wells fargo. >> was a statement of unity on the democratic side this is not going to be source of inter-party conflict though

folks on the progressive side hoped for someone else besides yellen >> you have republicans issues support, gary cohn former nec director for president trump saying janet yellen is an excellent can choice and believes she'll promote economy good for everybody >> much more on that and strong markets next on "fast money" which starts right now >> i'm melissa lee, this is "fast money. tonight's trader lineup -- tonight on fast. over cooked what morgan stanley's mike wilson is calling this market and says we could be due for a big pull back. and snap rolling out a new service to take on tiktok. why one trader thinks this could be a big bet that pays ox late -- pays off later, good old fashion game of