good afternoon welcome to "power lunch. along with kelly evans, i'm tyler mathisen november is shaping up as the best month for the dow in 33 years. that's without much help from big tech it is vastly underperforming get this, energy, which has gone from worst to first. we'll talk more about that break

rotation this hour plus, there is still one over big overhang for stocks and that is covid cases spiking, cities shutting down. we'll talk to one of los angeles' biggers playest playert retail, dining on "power lunch" right now. >> thank you, tyler. the markets are off to the races with the dow topping 30,000. this time it's not big tech leading the way. dom chu is looking at the rotation pro tellipelling us hi. >> let's talk about the gold star right here. 30,117 is the intra day record so far that was the high of the day at the pandemic lows, intra day we were talking about 18,214

we've gone up roughly 65% since the pandemic lows we saw back in march. something to keep an eye on when we talk about the dow industrials and. talk about what's happening between growth and value take a look in just the last month-to-date period we have now seen a real outperformance in some of those value stocks just in the month of november. we'll see if that trend continues with that orange line picking up steam with the optimism in the markets comes this notion that perhaps things will get better and those value-type sectors will get better as well oil stocks, apache up 9 1/4%, sl green, office space in the new york area up 3% and american airlines up roughly 10%. meanwhile you've got the typical outperformers in the pandemic now underperforming.

peloton down 5%, fastly, cloud computing down 2%, wayfair, home shopping down about 5% and te teledoc health down as well. i'll send things back over to you. >> thank you very uch,dom chu. where do we go from here after all the progress we've made from the march lows to these highs? let's ask julian emanuel what would your message be to investors today? >> so it's been as an investor a roller coaster of the year obviously we're at the high in the dow jones and small cap russell 2000 it's now really a time to be patient. you want to take a look at your portfolio. you want to make sure that you are not overexposed to growth,

technology, faang, because we do think that is likely a story that is going to continue its, you know, underperformance of recent weeks into 2021 and that you are diversified. but again, given how far we've come and the challenges directly in front of us regarding the economy and possibility of further restrictions, now is the time to be patient >> let's talk a little bit about what it means to be patient. for a lot of people the big decision this career, possibly big discussion point was back in the spring asking themselves, i know we did at my house in terms of the 401(k), should we get out of the market? and it was like you know what, we're at the lows. market timing is always problematic. i think now is the time those follow-up discussions happening of have we come too far too fast

and this enthusiasm about the roaring 20s? you're not saying you're cautious on the stock market overall or maybe you are or is it for those who want to get more tactical about it, ways to be more tactical. >> if you go back to the beginning of 2015, we've had a number of roller coaster events, the fourth quarter of 2018, obviously february and march of this year, but the long-term trend has remained higher. we think it remains higher but when you get as overbought as we are becoming right now, what you have to say to injuries as an investor is how am i going to feel if i kbp a 10% or 15% drop in the market and if you go back over the course of really the long term is that you want to be able to envision yourself as a buyer down 10% to 15%, not, you know, sort of panic cutting your holdings so if you can't see that, you

either trim some of your holdings, cash is always an option we kind of think that given the fact that volatility is at the pandemic lows, downside hedges in technology, triple qs as well as hedges in icap also makes sense. >> that's a way for people to think about protection so if you're not all that enamored of some of the winners, kra sort of thing. what what do you think of the outperformers today? >> again, this is where you've got to think long term and long term, those kinds of themes, have proven in durable bull markets, which we do believe the durable bull market started in march and has further

to run you need to stay the course with those and add to those kinds of themes on weakness, which again, if the economic situation deteriorates further over the sext several weeks and into the furst quarter, we may see. but those are the places where we would be adding on weakness those where you're down 10% to 15%. if those happen, those are the types of names you want to buy >> but you wouldn't buy them right here >> we, you know, you, if, if -- you can row trait towards them if you're but we wouldn't if you look at the ex-number of weeks, at 23 times, expensive it and

one of them is that we don't get stimulus for quite some time we think that's a necessity. >> all right well, we'll leave it there julianne, thanks for explaining for us what you think of this historic day appreciate it. tae? >> one moling was as biden is expected to formally nominate jan yet yellin for key position what i would ask you is what's changed from yesterday that would be accounted for in the way the market is going to heavens today and it has to be one thing and that is the affirmation by the head of the gas that the transition is under way and the president seems -- seems to be stepping back from

such a combative stance. >> yeah, that's right, ty. good to see you. i think it's absolutely correct that the market is reacting very positively to the news that we are finally moving on in this transition process officially. both gsa news, as you mentioned legal battle, that it would get ugly, uncertain about who would take the office but we are moving on. and, as you mentioned, bill and is hoping for these vaccines to come through in the spring the question is as your last kmr

here's a fact that the presidential race is finally official over and joe biden will take office in january so we don't have to worry about that anymore >> let's pivot before we come back to the cabinet picks. we're going to get a gdp number tomorrow, which may look reasonably good but a lot of people are look -- the. >> it's pretty much agreed that we need more stimulus. that the blueprint tomorrow will be significantly small are that the third nrm and that is all a result of -- largely a result of stimulus coming out of the

system, unemployment benefits expiring, so you get layoffs there and we have big covid spikes we have to get to where we are now to where we want to be in the spring and part of that is still luce you are correct when you we'll be lucky to get half of that, maybe even less. so $500 billion, it's not really enough in consumer spending and confidence, as we saw a rop. boy ru >> we know a few of the

establishment picks, they seem to be cut to the party cloth let's effect us mostly on janet yellen, a veteran policy maker, year at the federal reserve, years at the white house as chief economic adviser to the president and now the first woman to lead treasury she will have no trouble getting through the senate, will she >> no, she won't i would be surprised if she got less than 70 votes in the senate my e-mail is filling up and she's a slam dunk pick to get through the senate very easily wall street is reacting positively to a lot of things, and part of that is yellen and she's not elizabeth warren in treasury but you see it across the board. they're well known, john kerrey,

jake sullivan, national security adviser. the watch word generally for the biden transition is no surprises, people that everybody knows and has some confidence in and let's calm everything down and get away from the chaos that we've had the last few years and that's how they're doing it. >> i used to call him no drama obama. i guess this is no drama biden with some of these picks >> we'll come up with something better >> we'll figure it out no surprises joe have a great thanksgiving. >> you, too. >> for more on the cabinet picks, watch "the closing bell" today at 3 p.m. eastern for a first on cnbc interview with the former treasury secretary, jack lew, who knows a bit about that big building there on 15th street the dow making it to 30,000 today for the first time it's not just stocks setting records, folks housing and bitcoin. what does that tell us they're soaring right now.

that's coming up next on "power lunch. ♪ looks like we made it ♪ or i thought so till today at fidelity, you'll work with an advisor to help you build a flexible wealth plan. you'll have access to tax-smart investing strategies, and with brokerage accounts online trades are commission free. personalized advice. unmatched value. at fidelity, you can have both. lexus has been celebrating driveway moments. here's to one more, the lexus december to remember sales event. lease the 2021 rx 350 for $419 a month for 36 months and we'll make your first month's payment. experience amazing at your lexus dealer.

welcome back it's not just the stock market two other asset classes surging

are housing and bitcoin. home prices spiking to their biggest price in six years let's start with diana olick on the housing front. >> reporter: strong covid induced demand over the summer caused an exceptionally strong spike in home prices values jumped 7% year over year, up from a 5.8% gain in august that is the largest annual gain in six years prices are now nearly 23% higher than their last peak in 2006 the ten-city composite was up 6.2% annually, the 20-city composite jumped 6.6%, up from 5.3% this is a three-month running average representing prices from july through september when buyers were seek more space to

work from home during the coronavirus. dallas, chicago, new york saw the smallest gains but were still up in the 4% range annually the expectation is prices will continue to rise as housing demand hasn't really fallen off yet and supply continues to shrink kelly. >> and we have record low mortgage rates so it's not just the purchase side of things, diana, that we're seeing this lift what about on the refinance side are people kind of rushing in now in case things start to look better next year in case rates start to move higher >> we've seen so many people refinance already, more than 4.6 million people just so far this year as record low rates they've had 13 record lows this year so far and the year is not over yet now more than 19 million borrowers could actually still benefit from a refinance that's according to black knight

there's a lot of cash sitting on the sidelines. if people are willing to go through it, they could save more on their monthly payments, kelly. >> thank you so much go ahead, ty >> a little fellow just sat down behind diana there right there. can we go back to her shot just a second. can we go back >> oh, he went away! he was sitting right near the pumpkin over your left shoulder. he left. zilt the neighborhood. >> thanks, diana >> it's just the neighborhood. always like to give a shout out to the unexpected guests let's turn to bitcoin. rapidly approaching all-time highs to back in 2017 when you couldn't go anywhere without somebody asking you what do you think of bitcoin kate rooney has more >> it's a lot like the holidays three years ago. bitcoin is back above 19,000 for the first time since december 2017 it's up more than 45% this month

alone. since the march lows, it's up 280% a few factorsanalysts tell me might be pushing bitcoin higher. janet yellen was announced as biden's pick as treasury pick yesterday, seen as a sign for more fiscal stimulus to come and quantitative easing. and more money could eventually spark inflation and because bitcoin supply is capped at 21 million, it's seen as a hedge against that bitcoin has a fixed number that can ever be mined. gold is down today it might suggest some investors are moving out of gold and into bitcoin. p paypal enabling customers to by

cryp crypto >> kate, it seems to me that is one of the factors driving the price higher is this sort of public acceptance by the payment companies square and paypal and others but it's also a lot of the big names in investing like tudor jones, who you just mentioned, who are at least giving it the time of day these days >> absolutely. i think you have the demand and the ability to buy crypto more easily you would used to have to open an account at one of these crypto exchanges analysts say the people have cover. they say if paul tudor jones and bill miller say it's acceptable, maybe i should be getting into it it seems to be driving some of the confidence here. >> throwing some shade on bitcoin. kate, thank you very much, kate rooney oil prices climbing again today

again along with the rest of the market the energy etf, the xle jumping 4% is now the time to bet on energy our adtrers will debate that next on "power lunch." ♪ ♪ ♪ ♪ ♪

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welcome back, everybody, to power lunch. let's check on oilwith dom chu >> it's bullish today. wti 4% gains $44.87 brent crude futures, 47.80, near 4% gains it's that continued optimism, incremental clarity around vaccines for covid, a smooth transition for president elect joe biden's administration these are the highest levels for oil prices since the early part of march before the pandemic economic lockdowns began then you've got global oil partner opec making looking to curb production supplies into next year. and of course, kelly tyler,

official u.s. energy department inventory data that's out tomorrow morning. tyler, back over to you. >> dom chu, he does stocks, commodities. is there anything you don't do, dom? >> i try to be a team player >> you try do it all thank you, dom let's talk more about oil and energy the s&p sector up nearly 40% in november, best month ever on pace for that. your trading nation team is todd gordon of trading analysis pint come and mark tepper of st strategic partners with regard to energy you say one word, yuck why? >> energy has been the place you sent your money to die for the last decade. it was a 15% sector waiting in the s&p and now it's like a 2.5% it's almost irrelevant

it has underperformed the spy by 17% per year it's a real tough sector to get excited about. with limited dollars would you rather by a tech stock with a bunch of tail wins or oil stock with a bunch of head winds if we have to own an energy stock and we do have to own a little we at least want to get some yield my first name is diamondback energy they're one of the few companies that can actually make money even when oil is below $40 a barrel, they're focused on protecting their dividend over 3%, cutting costs and there's been talk about international buyers possibly having some interesting. it's a potential takeout target as well. that would be our play there >> up 3% today and it has the beautiful irony of having a ticker symbol fang

how do you have like that for irony. >> you see some of the move a short covering is that move enduring and if you were to play energy, am i going to miss anything by waiting for some pullbacks or is the train leaving and going up the mountain >> the train has definitely left the station. i think waiting for a pullback would be a very good idea. let's talk about underlying crude. we did break through resistance that was in play for most of the year dom mentioned there was a big gap down we've closed that gap so technically oil looks better but many of these energy stocks try to push lower, retest those march lows what happens is selling dries up, people start to get a little nervous, the shorts want to get greedy and cover as you guys said at the top, xle is up 40% in november. that's unbelievable.

that sounds like short recovery. exxon is the largest energy name out there. if you look at the chart, the bounce has been less than stellar. and the other thing we got to mention is a lot of you guys will be buying these for the dividend we want to make sure the dividends are stable they're likely going to impose access to federal lands as they reduce exploration and plus green energy is where it's happening in the energy space. i'll throw one name out there, residence solar energy system, ticker system run, i love it, hold it. time to buy the pullback in the future >> you have your inner larry king there with the cool speaker. we love that

go to our web site or follow us @tradingnation. kelly? >> tyler, thank you so much. the dow and russell 2000 hitting record intra day highs, a the dow soars above 30,000 for the first time we're just below that level right now. plus major cities like l.a. heading into lockdowns going into one of the biggest holidays and retailers forced to shut down with rick caruso next before we talk about tax-smart investing, what's new?

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welcome back, everybody. i'm sue herera purdue parmia ple ii ii iia -- guilty in opioid criminal case in milwaukee, an election worker has found nearly 400 uncounted ballots, which will now be tallied. on their own the new votes are not enough to affect president-elect biden's lead >> and final prep for the macy's day parade balloons won't be held by humans instead robots are getting that sought-after job >> take a look at these guys

one is corn and one is cobb. they're the lucky turkey that president donald trump is pardoning for thanksgiving both will retire to iowa state university after their 15 minutes of fame. you're up to date, ty. good looking birds >> yeah, those are nice birds there, sue thank you very >> the markets right now, let's take a look at the market, shall we get off the turkeys for a second back below 30,000 but still up 389 points, 1.3% 29,983 we did get up over 30,000 at the peak the russell 2000 leading the way up 1 2/3%. it was a record intra day high for the dow industrials and 18% gain already this month. the best month ever, kelly

>> yeah, for those small caps, it's been amazing. appreciate it. >> at the same time stocks are soaring, many are still hurting because of the pandemic. the restaurant and hospitality industry facing another blow as the city shuts down due to the pandemic rick caruso respond saying the latest ambassador goes too far, small restaurants simply cannot survive another closure. this move to stall outdoor dining has raised a lot of eyebrows is it going to be followed >> the opposition to it is growing. even the chair of the county board of supervisor has now come out against it and a second supervisor here's the frustrating thing that's happening across the country and here in los angeles county there seems to be a disconnect

between those appointed and elected officials who are bound to lead us and the people's desire of how they want to operate. they're obligated to protect their lives, but they're also obligated to protect our livelihoods. there are struggling workers of these restaurants that are going to be put on the unemployment line and it's just wrong, especially during the holidays and more importantly, more maddening about this is there is no nexus, no data that shows there's a connection between outdoor dining and the spike in the virus. so i think the health department has an obligation to its community, to all of us, to say here is the data and here is why we're closing down outdoor dining, so we can understand it. but now you got a lot of cities within the county that are coming out against it and i'm glad they are. it's unfair. >> rick, here's my question, though los angeles as of a couple of days ago was the most infected county in america. you guys have more cases than

canada i think it was 365,000, something like that. given how stringent california has been in this pandemic, how did the outbreak -- why is it so bad? are people flouting the rules? are they not wearing masks how did we get to this point where having already draconian measures that appear to be not working, now it's being met with even more draconian ones >> listen, it's a problem and it's sad to see and people are struggling with it and i get that and am very sensitive to that, but i think we have to target the areas causing the outbreaks so our own officials, including the governor and health officials are saying the majority of the outbreaks are coming from within the home. it's public gatherings, family gatherings people need to wear their masks and can't be in large groups that's the other problem with this measure by saying we're going to take away outdoor dining, you're

pushing people in the home where 80% of the cases are coming from this is a shared responsibility. everybody has to do what's right. everybody has to be socially distance we have thousands of people that are enjoying our property. we did a survey of 130,000 people of our best customers who were saying 85% were planning to come on the property to shop and the reason they wanted to come on the property to shop is to enjoy the holiday decor and they believe it's safe and because of the safety protocols we have people want to be out. i think government has to give them a safe way of doing that and not say you're locked in your home again. i don't think people are going to follow those rules. i think they should if that's what it is but i don't think they'll follow it. >> and what you've just said i think is important to kind of break down what's going on here. you're talking about how it's spreading at home. it's not so much one person to a

spouse you're talking about home parties, right, halloween parties, election night parties. whatever they are. so does the message need to be -- and perhaps people did so thinking that the pandemic at the time wasn't that bad i don't know but obviously if that's what's happening, we're heading into what's usually a big home gathering this week. it cruel to say to people, like you've said, there's a horrible mental health and other implications from everything we've been through with this pandemic how do you as authorities say to people the most important thing to not have parties but still let people celebrate thanksgiving or dine outdoors if it seems that's actually less risky? >> let's encourage people if they're going to be with their family to do it outdoors, let's do it at a restaurant outdoors, there are tables six feet apart and it's a very safe way to do it do your holiday earlier in the

day with the sunshine. the sunshine is a great disinfectant i'm doing this interview intentionally outside. to say a day like today and the light breeze and be safe and enjoy your meal together and just stick with your small nuclear gatherings but let's make it to next thanksgiving i think that should be our goal and mott risk family members by trying to be together this thanksgiving and let's keep people employed because to your point home unemployed i think is going to be devastating and it just wrong >> rick, i want to get one final question in. i'll point out here all the leaves are brown and the sky is grayin and it's about 40 degrees and i wish i was sitting where

you are. >> come on over. >> who calls the shots here? is it mayor garcetti is there a county board of supervisors to which cough appeal and say, hey, here's the reasonable thing to do who is calling the shots here and what is your route of appeal >> so there is a county board been within the county i think there's 86 cities and there's one health department that serves those 86 cities, including los angeles. but i don't think anybody should be given a pass on this one. so the county board of supervisors, believe it or not, never even voted for the closures they deferred to their head of public health, which i and i also think the mayor of los angeles and other mayors, which

and should be saying this rule is not the right rule. but to not have a vote and not have a public discussion about it and order people's businesses closed on the unilateral decision of one health official i think is wrong and not good government all right, mr. caruso, thank you so much. >> thanks for joining us today tyler, go ahead. >> all right, thanks, kelly. still ahead, folks, taking stock of thanksgiving. >> for mao winter may bring stronger demand. we will discuss when power lunch returns. there are some of the thanksgiving companies we' blle talking about in just a minute ♪ ♪

stocks aren't the only place with action today. let get to rick santelli >> historic day. 30,000 plus in the dow it's having an effect on traits. it seems interest rates do need sop help in that regard.

the stock market is in response to historic vaccine. when you think about it, these are historic events and it's an historic time for investors. if you look at that two day and then go to a one months, tens versus dow jones industrial average, they keep yanking them up euro versus dollar looks to be closing at a 12-week high against the green back look at the intra day against the dollar if it was on the lows, open the chart up to november 1st, you'd see we'd be closing at record levels back to you. >> maybe it's a flip side of that raek dollaweak dollar, thew trading just a hair below that level now. which consumer stocks will benefit from the thanksgiving holiday. "power lchun" is back in a

couple at fidelity, you'll work with an advisor to help you build a flexible wealth plan. you'll have access to tax-smart investing strategies, and with brokerage accounts online trades are commission free. personalized advice. unmatched value. at fidelity, you can have both.

before we talk about tax-s-audrey's expecting... new? -twins! ♪ we'd be closer to the twins. change in plans. at fidelity, a change in plans is always part of the plan.

(. all right. wall street giving thanks early as the stocks continue to rally back above 30,000 right now. this would be the close above 30 ever if we stay there. prrp at 30,100 plus a couple of hours ago. there are of companies out there that will be affected by the smaller thanksgivings. the companies with the most exposure will get some help from winter lockdowns maybe more than thanksgiving joining us now is the man behind the report brian spill aaspillane of b of . et cetera not just the possibly of thanksgiving. it is the possibility that americans will be eating more at-home food all winter long night number like thanksgiving since march. we have had an unprecedented shift in consumption from

restaurants and away from home to at-home consumption people cooking more than they have probably in a generation. as we lead up into this thanksgiving holiday what we seen from companies like even todaysmucker's reporting, the retail demand at grocery stores for these fast-food companies has been unprecedented they are running revenues in the high single digit, low double digit range. as we head into thanksgiving there is a question of cooking fatigue as we have all been cooking more than we normally do. >> there has been a lot of banana bread, a lot of sour dough. as we look at the stocks as a group, the kraft heinz, the general mills, the hormels and so forth, how have they been doing this year? are they up a lot? does that mean that the run in them is already priced in. >> it is a bra question.

they had a really good run early on the initial mark reaction as the situation unfolded but really if you look at the performance since the second quarter earnings season -- the middle the summer -- the perform has somewhat lagged of even if you see it on a di like today, where it is risk-on and more the risk-on stocks are doing better you see a lot of the packaged food stocks flagged. i think as we flip the calendar into '21 it is time to be selective about which of these food companies will see a sort of enduring demand uplift and which ones will revert that's where ---y we really like kraft heinz in that scenario because we think there is an idiosyncratic improvement there beyond what is happening with covid. we at this they will be in a much better position asway move beyond '21 and '22.

>> craft heinz would be on your buy list, so is constellation brands and conagra, constellation a beverage play because people are drinking at home. >> correct constellation brands suffered a little bit this summer because they had covid-related supply chain issues and had to close their brewery for about a month. during the peak summer season they were out of stock which hurt market share. it already ripped back data out today, sales are back in their beer business this the high teens rate. our valuation is valuation compressed a bit it's growth stock that got sort of mispriced this year because of this short-term event we think they get back on track really starting now and will have a really good '21 we think that stock sets up really well. conagra is interesting, because

it prepandemic looked like it was struggling to hit its multiyear goals. now they seem to be very much on track to do that the balance sheet's improving. i think the key thin there they sell convenience items, frozen meals, frozen foods. one of the things we have seen in our reference is convenience has been very important for consumers, even in this stay-at-home dynamic some of those products, bird's eye frozen vegetables has expanded their stan. >> okay. i have to leave it there brian, thank you b of a's securities food and beverage analyst. after the break we will talk about the milestones we reached in this morkt today. dow is over 30,000 for the first time don't go anywhere.

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welcome back let's talk more about this record breaking market day and many of the milestones we reached. the dow hitting 30,000 it and the russell 2000 at intraday all-time highs. what should investors do, lean into this market or start to pareback. >> i think you have to lean in with your shoulder and continue to move forward.

we continue to see a rotation. we talk about the dominance of market caps. the faang stocks had a wonderful run for two, three years i don't want to shy away but mafg to an equally weight strategy the key here. you are seeing laggards asubtracting assets. as we typically work with financial advisers that rebalance in december going into the new year we are seeing a lot of rebalancing into industrial names and transports they are not shying away from technology but looking for more diversification going into 2021 it makes a ton of sense. >> give us your top three names in 13 seconds. >> lockly martin, johnson & johnson, i have one here that's going to raise eyebrows, 3m. they should attract assets right now this bull market has more in it another 5% i see in the dow jones, up to 21,500. >> that's why they call him the killer

jeff, thank you so much. jeff killberg of kkm ty >> 13 seconds he did it. that is a pro's pro right there. a historic day i guess you would have to say thank you janet yellen among other people because that's one of the big things that's different today from yesterday, kelly. >> yep that's what killberg was saying, too. queen of the doves tyler we will see you tomorrow thanks for watching, everybody "closing bell" starts now. >> the market says janet yellen. we say thank you tyler and kelly. dow 30,000 welcome, in, wilfred frost along with leslie pickert who is in for sara eisen record-setting rally from the pandemic lows continues. the dow crossing 30 for the first time ever. will it stay there we will have to lock at the action easing of political uncertainties. the trump administration approves a