testify before congress. this happening today and tesla is in the driver's seat, the carmaker will be added to the s&p 500 in a single step later this month as i said, which is december, which presumably is the last month hopefully of 2020. "squawk box" begins right now. ♪ ♪ you know you're the mastermind, run, run, rudolph, round out ♪ good morning, everybody. welcome to "squawk box." never too early for christmas music. here we go, december 1, i'm becky quick along with joe kernen and andrew ross sorkin. we're ready to go and hope you are too because check it out, futures are sharply higher dow futures indicated up by about 370 points these are moves that just began an hour and ten minutes ago. you can also see the s&p 500 up by 43 points

the nasdaq up by about 120 yesterday was a down day for the markets. the dow off by about 270 points. but if you want to take a look at november he's historic gain, check this out, the dow actually up by 1.8% for the month, that is its best month since january of 1987. the s&p no slouch either it gained about 11% while the nasdaq was up nearly 12% november by the way was the best month for all of those indexes since april which was a huge month. also small cap stocks were some big winners. the russell 2000 finished the month up more than 18%, 245ethas right, 18% in one month, the best month since that index was created back in 1984 so here we are heading into december and year to date, the nasdaq is the superstar, up nearly 36% the s&p 500 is up by 12% and the russell 2000 up by 9%. the dow up by 3.9% so fantastic november for all of these indices.

nasdaq leading the way in terms of year to date. joe. >> yep, coincident with the surge. go figure. the second surge are you sure it is never too early, that is just a blanket statement for christmas music? >> oh, no, it is not our 4-year-old loves christmas carols, so we've been listening to them for probably a month at this point i'm just glad the rest of you get to feel my pain. >> feel your pain. so when you -- see, i think it is always too early. when it is prior to thanks give, it is like come on anyway, i just heard you say that -- >> i woke up sinking the dradle song i woke up singing that this morning. >> so sesame street is still in your life. >> don't be a grinch, it is the holiday spirit >> wait until it is stuck in your head on a running sound

track too. >> we were listening to a little when we were away for thanksgiving we didn't have sirius xm in the rent a car so anyway, we were playing -- and it was christmas music and i said no, and they said yes, yes! and so it was a yes. in washington, a group of senators are looking to break the stimulus stalemate ylan mui is joining us with the latest and maybe her ren daysdin of a christmas carol, i don't know >> i do love the christmas season, and what democrats are doing right now is trying to make the christmas season a little bit more merry for unemployed workers there is interest on both sides of the aisle in breaking the logjam on capitol hill surrounding a coronavirus relief package. and today more than 30 democrats are getting behind a new push to extend expiring unemployment benefits for 12 million workers before they go away at the end of the year. virginia senator mark warner is

leading this effort with a letter to the leadership of both parties that says that letting these payments lapse during the holiday season would be cruel and that it would hit the services sector and the arts especially hard. the letter says these workers are facing job loss that has nothing to do with their skills, acts or performance. there have been some preliminary conversations in the senate on bipartisan measures that might be able to pass along side the government funding bill next week, so this letter is just one indication that democrats appear to be coalescing around the problem of what they are calling the benefits cliff also today senators ron wyden and shaerrod brown and we also michael bennett are unveiling a bill that would extend the provisions and also rein-state the $600 of enhanced unemployment benefits that has been more controversial and has been one of the sticking points in the broader negotiations. so this could be a sign that democrats might be willing to

accept something smaller than that $2 trillion deal. back over to you >> so send me some of your most important points to make with senator warner, okay what do you need to know right now, just having been working on this story for -- overnight. probably didn't sleep. but what should we talk about? >> well, i think what is really important is, one, the economic impact of having these unemployment benefits expire two, is this a real deadline we've seen deadlines come and go on capitol hill in the past. we thought that there was a deadline around the expiration of the enhanced unemployment benefits, that didn't spur congress to act. what is different this time in order to get them to do it economists are saying that the ending of these benefits would be particularly painful. so is that it, is it the government funding bill that is going on and i also think the other question here, that is this a

case of democrats saying we're not going to get the heros act, we won't get the bill that they have been trying to hammer through the senate and hammer republicans with for however many months now. is it time to just settle for one, two, maybe three or four provisions that could provide relief to americans as they wait for the next administration to take office. is that going to be the strategy now as we come into the final weeks of the year. >> the election being over and now we can do a smaller deal that doesn't go into the thinking anyway, i think that becky has a question or comment >> actually, a question. if that is the case, if there are three or four things, four tops, that they might be able to settle on, what are the other issues that have bipartisan support? we hear about so many things from the bill to help the airline workers to the ppp money getting passed, the need for money for schools. to make sure that they can stay

open or reopen or stuff no testing too. there seems like there is a lot of priorities that could get bipartisan support >> and that has been part of the challenge of this. the things that i'm hearing people talk about is reauthorizing ppp, perhaps some money for a vaccine distribution because that is now thankfully becoming more of a reality i think that the challenge has been balancing it. you don't want to do politically too many things to help businesses if you don't on the flip side did something to help the workers. and if you cut out the state and local aid and just have a business provision and worker provision, that becomes more of an equivalent trade that could win support on both sides of the aisle. this is all sort of nation speculation, this is clearly still a long shot of getting something done by december 11 when the government runs out of money, but that does provide the vehicle and some momentum for having a few provisions ride on that larger spending bill.

>> all right elon oi elon, thank you. we'll be talking to mark warner at 8:00 eastern. and we are learning more about tesla's race to join the s&p 500. we'll bring you some of the details right after the break. but before we do that, check out this morning's biggest movers. this holiday at t-mobile,

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welcome back to "squawk box. futures are off and running. douf futures are indicated up by 363 points why? we have no idea. you could say stimulus hopes, you could say just about anything out there i can't explain why bitcoin is up by almost 500 bucks this morning either anyway, futures are up looking good so far. s&p 500 by about 44, nasdaq by 126. in corporate new, zoom shares are pulling back this morning

despite better than expect quarterly results and guidance, but they point to the rates of revenue xwrooet and concerns that that could moderate zoom stock is up by more than 56 5% so far this year. and check it out, the stock off by about 5.6%. we'll talk to their cfo at 8:40 a.m. and the other thing we're watching this morning, of course shares of tesla because the s&p says that the stock will be added to the s&p 500 all at once it will happen on december 21st and it is notable because the index committee has considered whether to add the company in two stages because of tesla's massive market cap the company that tesla will be replacing will be named on december 11th. a lot of people will be following that and joining us right now a ddan ives from webbush. you can't fight the index. i don't know if that is the way

to think about it. but in terms of where tesla stock is right now, what is fair value? >> we have a bull case $1,000, base case around 600 i mean, to me it all comes down to the demand story and i think that we're seeing an in-flexion point. and you are seeing adoption curves increasing and they are doing it profitably. and that is why you are seeing more institutional, not just the ind indexing you player t play the golden age of ev. >> but for those who have been skeptical of tesla throughout, even a jim cramer would say you cannot measure or judge this company as an automobile maker if you do it in that context, the numbers that are on your screen right now are crazy town, right? and so what is the appropriate context to get your head to these numbers?

>> yeah, to me it is a disruptive technology. i think that is how you have to value it on the ev side, that continues to be the emotional bull bearish story and we disagree with the multiple because really from a technology perspective, that is where they are heading i think when you look at ev, i think that you are starting to see a rerating across the board. and you see it for names like ge as well. but that is the area when it comes to tesla, you have to view it on a new paradigm in terms of the growth opportunity and i think that that is more and more how it gets value going forward. let's pivot to another tech story and we may learn more about it later today, and that is potentially a merger between salesforce and slack and wanted to to get your thoughts on that transaction and what you think it means for salesforce >> yeah, it is a major game

changer, not just in software, but really across technology a deal like this i think is a major shot across the bow to microsoft. you look at cloud software, tlrm many false starts for salesforce and i think that they are building themselves more into an enterprise play. and this is just the start the of massive m and m cycle beinps. and it all speaks to the cloud right now i think this is really just the start of what is going to be that big m and a cycle with benioff kicking it off tonight. >> so is this an offensive move or defensive move? you look at where slack has been they had not grown the way people had expected. to some extent i think microsoft

teams had come from behind the way people didn't imagine. and you have salesforce trying to play against microsoft right now. so how offensive, how defensive is it? >> yeah, that is an excellent question for slack, it was clear going up against microsoft that that was just a herculean challenge i think it made sense for them to hit the bid year. for i willsalesforce, i think t is in some ways defensive. but offensive in terms of exp d expanding the suite. for salesforce, this is the time to strike. because if they didn't, they would get further behind microsoft. and so that is why redmond is watching the deal because i think that we could see microsoft doing more m and achla. and google with everything happening there on cloud, i think this is another opportunity potentially for google to go after and i think that this was partially defensive, but also

more of an offensive play when you look at where the slack deal fits in terms of the portfolio >> if you think this makes microsoft inquisitive looking around, who would they buy >> i think that there is a handful of players out there that they could look at both private and public i think specifically when you look on in-desk and other names out there, but for microsoft, they are looking across the board, cybersecurity, on the application front. because right now on the cloud story, microsoft's world and everyone else is paying rent in terms of azure and so they could do it through m&a and organically. so i think that salesforce continues to chase microsoft >> dan, in terms of the strength that microsoft does have, i'm curious, how strong do you think salesforce and how much of a

competitor salesforce combined with slack becomes and throw into the mix by the way, and we'll be talking to the cfo a little later in the show in the 8:00 hour, zoom you know, you look at microsoft teams and they effectively have a product that is doing what slack does plus what zoom is doing. does somebody ultimately buy zoom, does zoom buy somebody else, what has to happen there >> i think zoom given the valuation, i think it is more they potentially will be acquirer no one would have expected that microsoft teams would have had the success that they had. so i think when you look going forward, this is where in terms of where zoom fits more and more competitive against them and you can talk about the other side with the vaccine working from home, but i think that it is a new paradigm.

collaboration software and of course zoom has been the leader there. but when you look, salesforce looks around and slack was what they needed to acquire no one expected microsoft to be as success ffulfu as they have n on teams >> is salesforce going to have to buy something in the video space or does it become a commoditized product that is what i'm concerned about longer term, if everybody has a rergs of th version of this product, how much can you really charge for it >> and there have been worries about that, but ultimately if you look at the platform for teams, and remember most of that is degree for microsoft customers moving to the cloud, but if you look at zoom, i think there is a scale ability that is hard to match. so i think that commoditzation does not happen for the next few years which speaks to the

multiple street is paying on the work from home names because it is a scarcity value. and i think slack was only going to go so far as a standalone given more and more as they go into the core backyard of the enterpri enterprise, harder to compete with microsoft and now i think right now you really count on one hand the amount of legit players in the space. >> dan ives, hitting august the big headlines between tesla, zoom, sales for force oforce an. we appreciate it >> thank you >> i personally find it very offensive the deal using so many stock, very -- it is offensive coming up, how starbucks is giving back to frontline workers. but first as we head to break, check out the biggest nasdaq

movers

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it is time for today's executive edge starbucks is giving back to frontline workers for the whole month of december. customers with jobs that help keep others safe during this pandemic can get a free tall brewed coffee hot or iced. those eligible for the perk also include doctors, nurses, pair

met dicks, pharmacists, dispatchers, firefighters, police officer, dentists, dental hygienists, mental health workers, hospital staffers and active duty military members great time for them to be getting this as cases continue to climb and these workers are more put upon to try to keep us all safe >> yeah, true. and meanwhile, this is known as giving tuesday many companies are encouraging people to give today by matching donations on the website double the donation.com, you can search for companies that match employees contributions. this years c.a.r.e.s. act included a $300 tax deduction for eligible charitable contributions. >> comcast is one of those companies. i don't know about today, but they said for this year, they match any employee up to $1,000 to give to the charity of your choice

but today is a great day to remember after you spent all weekend shopping, make sure that you give back to those in need when we come back, some key opec meetings this week with more questions than answers about the future of supply the latest on those talks right after this you can see wti unchanged right now. waiting to 45er whhear what hap with the opec meeting. and let's take a look at yesterday's s&p 500 winners and losers they're first first to respond... first to put other's lives before their own. and in an emergency, they need a network that puts them first.

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dow looks like it will open up a lot higher this morning, 372. and s&p 500 up about 43 points,

nasdaq about 120 points higher we'll explain what is going on, but people feeling good right now. we continue to follow bitcoin's big moves hitting another intra day all-time high yesterday. almost 20,000. it gained 41% in november. its best month since may 2019. don't say it is not correlated, joe, don't say it is an uncorrelated as set. it seems to be as corrolatesed as ever. >> the interesting thing to look at, go back 10, 15 years and look at the low every year i think the low this year is like $4,000. so i think independent it yesterday, strap yourself in i don't know what the low will be for 2021. definitely seems to be more behind the move this time than

two years ago, whenever it was, in terms of more really smart people that seem to think that, you know, something that will be lasting there. i've looked into it a lot and i have my own concerns i've got things that seem very positive but then there are some other things that some of the biggest worries are like in 2100, there may be a lot of stuff happening that is very bearish for bitcoin. so i'm trying to factor that into my long -- this is called long term, right >> i don't know if you saw the conversation that i had with softbank two weeks ago, he had bought into bitcoin when it was at 20 240ur,000 two or three yeg and ultimately sold -- he said he lost a lot of money selling, but it was too much for his brain, it was taking up too much mind share to have to watch it every day and see what was going on so he needed to be able to focus

on other things. so i don't know how much value you put on that. >> read the first 40 pages of a primarier ofy e primer of a book and there is a rationale for like i said for -- >> a rationale, but how do you explain a $3,000 price move? i mean, in the span of a week. >> that has nothing to do with -- that is like stocks go from 5 to 50 constantly and back to 5 and back to 50. >> yeah, but you can generally make an argument for stocks that okay, they have expanded possibilities for the future, they are making new products, they are finding new markets, bringing in new you consumers. i mean, with bitcoin, it is so different. there is only so much of it and you have to get your hands on it because somebody else will be

willing to pay something more than you did for it eventually >> like i say, read the book i mean, it starts out with a distributed ledger think of 20 people on an island where you don't move shells, you each keep track of the work that you do so that each unit has an inherent value and then you do a stock to flow model of what it is worth based on its scarcity if you use it as -- i mean all currencies are kind of -- if you read a book on currencies, it is strange what represents money very strange really the only thing that is money is gold at this point. or maybe bitcoin >> do you look at it as a currency then? >> i think at this point it is a store value that could turn into a currency doesn't matter what i think. i don't even want to think about it at this point what worries me, i mentioned it yesterday, i'm like why are

there only 21 million, that is all that can be. that was written in the initial source code by the guy that did it but apparently you can change -- i don't know see, now people will go crazy if i say anything, but if the source code was changed, what if there were more? i don't know i don't think that you can do it every single transaction ever done is in your coin, which is unbelievable so it gets more and more expensive the further we go along and get closer to 21 million. i don't think that we can get to the last bitcoin being mined until 2140 so in 2100, i have some concerns that will be a rough year i think. anyway, oil prices, let's take a look at oil prices this morning. and brian sullivan, he knows so much about oil, he knows about vienna, he knows about opec. did you read the exxon piece that was sort of depressing for

i guess for exxon shareholders at least, right? >> i mean if you like the dividends, it is not good morning, everybody. yeah, listen, exxon has been spending too much money making bad bets on big projects they bought xto pretty much at the peak for 30 bui$30 billion. exxon wants to keep paying out the dividends, otherwise i'm nos sure what investors will have with the shock i could talk about digital gold buying but let's take about taking other stuff out of the ground and that is i'll here is the opec situation and it is a little fluids. opec was meeting yesterday was going to finalize some kind of a deal to extend production cuts in january, february and march. remember, they are cutting 7 mountain 7 million barrels a day

off their benchmark. they were going to add 2 more million barrels a day in january. but they did not get a deal yesterday. the next official opec meeting is now thursday where russia, kazakhstan, mexico and others will join. there will be informal talks today i'm told so while it is kind of like if joe, becky and andrew on a saturday did a zoom, you guys are in your t-shirts, whatever it might be, you are just chatting, but you are not doing "squawk box. that is kind of what opec is going to do today. so i doubt we'll get any kind of real news from opec today. the story line though increasingly is the united arab emirates, important member of opec, i want to say tension with saudi arabia, but the uae feels that it has been taking more

than it's share of the production cuts. they want to raise or get paid for it saudi market share has grown i think the story with opec is that with the biden administration coming in, and fossil fuels perhaps out of favor, does opec, does saudi arabia see a weakness in the u.s. oil market. do we get a market share war to try to pressure u.s. shale more at a time when it may not have the defense of the executive branch i don't know what kind of talks there might be on that front but let's be clear, 40 to 45 buck a barrel oil will keep american oil companies alive, but it is just enough. it won't do enough to keep them healthy. so very interesting period now for opec and oil whatever you think of the hydrocarbon by the way long term can't run your car on bitcoin yet. >> as a walking talking hydro carbon, i hope that we'll be

okay for a long time but you're right, going forward look is much more interesting than looking backwards because we know everything about looking backwards. the future is so hard to predict i've found out i don't know if you thought that through. futures much harder to predict than the past. >> and it is so bright, i have to wear slide, i think shades, i think. that is my only take >> we'll see and we're doing a lot here and biden is going do a lot od goint in terms of emissions. be nice to get everybody on board. so why want us to shoulder all of the onus of trying to, you know, cut emissions while china and india are sort of looking over laughing at us. >> yeah, listen, even by 2025 best estimates is only 10% of

cars sold globally will be all electric or hybrid so still a ways to go. and let's be clear, opec as an organization, right, i mean there is a ltd s is lot of ques term outlook for opec itself remember it is african nations, they are coming up, 200 million people live in nigeria there is a lot of world out there that we couldn't talk about that doesn't have the luxury of putting in expensive technology, whatever it might be and a lot of continues still rely on that petrochemical and the hydrocarbon to simply feed the people and pay the bills so we'll see what happens there. and i actually know where andrew is because my friend i found out is like your neighbor. but can we just talk about that store, or that storm that came through new jersey i don't know where you are, if you are in new jersey like i am, got destroyed last night never seen a harder rain >> it was heavy. it was heavy wind and rain here. i think you got hit a little worse where you are though

>> crushed >> all right, guys when we come back, brian, thank you, we'll talk to you between now and thursday too i'm sure. when we come back right after the break though, the dow coming off its best month since january of 1987. but is there more money to be made before the end of the year? we'll talk to two money managers right after this

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welcome back it was a november to remember on wall street with big gains for stocks and joining us right now with what to expect for december and beyond is greg branch, he is managing partner at veritose management and greg, you are concerned that even though we have seen a big run-up, you think that it could be tougher sledding from here. why? >> yeah, and i think that this is actually binary i think that if we see some elements of stimulus in this december 11th budget or even a broader announcement, that that will provide another leg of optimism to the market, the economy certainly needs it and i think that that is really the key thing that could provide for further tail wind from here. absent that, i think that the rising covid numbers and the reintroduction and retrenchment around stay-at-home will start to dampen enthusiasm and i think

that until we get that stimulus, until we get the transition, that i'd be careful about going sideways and do you kn way and . good indication is russell 2000. anytime we've seen a jump like that, that has led to near term weakness just about every instance >> yeah, and the russell 2000 up 18%. you were skeptical about getting a stimulus but have you changed your mind the market seems to be anticipating that something might be getting done. we'll be talking to hark wamark later this morning >> yeah, i'm certainly more optimistic before the last week or two, all of the political bandwidth was being consumed in a contested election and there are still some elements of that.

moreover, i think that they probably burned some bridges with each other and will take some political fortitude to sit back down at the table i'm hoping that it is not an unbridgeable gap so we have more reason for optimism particularly as political pressure increases but i've learned never to overestimate the political will either and so i'm hopeful, but certainly not anywhere near certain. >> craig, you have too big investing themes that focusing . you think the deorganization play will continue into 2021 do you want to talk about the stocks that could benefit from that >> yeah, we do think that this is a trend that could last a significantly long period of time several things driving this trend, of course covid and a lot of the political unrest you see in high dense large cities, very

restrictive government, you see people for example in california where people are leaving the state because of real restrictive governments. and all this is at a time where all of a sudden technology has created remote working possibilities. so why do you have to be in these large cities with a lot of issues where you can just about live anywhere. and this is happening at a time when millennials, the largest demographic in history, 73 million people, is reaching the age of where they are starting families and moving out of apartments and getting married and so at a time where you have a historic low interest rates and housing shortage, about a three month supply, we think housing not just housing stocks but all the housing plays could be tremendous over a three to five year period our favorite play in the area is taylor more rrison homes. it is an entry level builder

texas, colorado, arizona, georgia, florida but it is trading broke book value which makes it among the cheapest housing stocks we see but it also has about the fastest growth rate of any stock in the housing they made an acquisition last year of william lyon homes so we thank that is a really good looking situation another play there is rocket mortgage we think that rocket over the next four to five years could become the dominant mortgage refinance player they have about a 10% market share now. we think that that will be closer to 25% like 2030. so this could be an interesting play that goes out for a while >> craig, your other big play is this idea of infrastructure. and you think the biden administration is going to be putting a lot of money into infrastructure and the company you like wasn't one that i was familiar with. commercial medals. i had no idea that they had over 50% of the rebar market.

that is amazing. >> yeah, a company we've followed for many years and owned for many years about a $3 billion market cap like you said, they have a 50% share of the rebar market through their acquisition from a couple years ago it was criticized, but it has done much better than. and they have gotten their debt levels down to manageable levels so we think that that stock is very undervalued, commercial metals >> and for anybody who doesn't know what rebar is, those steel lines, steel pipelines >> yeah, goes in to bridges and roads. >> goes in to con kret crete to it stronger. anyway, interesting stuff. good to see you both thanks and when we come back, the ceo of ginkgo bio wos,rk what

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by the time we get to april, there would likely have taken care of all the high priority, and then the general population of the normal healthy young man or woman, 30 years old, who's got no underlying conditions, can walk into a cvs or to a wall greens and g wallgreens and get vaccinated. that was anthony fauci talking with numark zuckerberg. and now with us ginkgo bioworks, the company is a cnbc disrupter, number 44 on this year's list. i remember last time you were on, jason, you know, we had about five or six minutes, and we finally figured out what

gink ginkgo bioworks is up to i don't want to have to go through that again maybe you can summarize it easily you're, i guess, trying to automate your systems and platforms but sometimes use cells to actually make genetic material or biological material, and trying to adapt it to being able to expedite the manufacture of nucleic acids for whether it's pfizer or moderna or i guess even dna vaccines you would do that too. you would like to expedite the way it's manufactured now giving the raw materials for that manufacturer is that what you're doing with the 1.1 billion? >> that's one of the two areas, and the simple way to think about ginkgo is you did biology at m. ici.t., and it's general purpose, kind of like amazon

data center, right, you could use it to stream movies or you could use it to run a hospital web site, same servers, same idea with our infrastructure, and back in march, we pointed it at covid go ahead >> what type of raw -- so the way that moderna and pfizer are going to manufacture the messenger rna right now, what does that look like, and i guess that's one of the areas. the other is probably for testing, which is similar because you're testing nucleic acids again. what are you trying to do for them that would be better than what they do right now in terms of the raw materials for the vaccine? >> yeah, and those are the two big categories vaccine manufacturer and then classroom testing and so for the vaccines, the key challenge here is these are mrna vaccines, it's a new type of vaccine. we're going to need 6 million doses for the u.s., everyone needs two, and ultimately 8

billion people on the planet these need to be manufactured at huge scale, and they haven't been built out to this scale previously because it's a new class of vaccines. we're helping with smoptimizing how you make the dna, and producing the enzymes to turn it into rna that's what we have done with moderna, and we are working with other companies too. >> so you're opt miziimizing it you're not reinventing the wheel. >> right we're looking to make sure a tank produces more vaccine per tank so we can get more doses quickly, rather than doing the manufacturing ourselves. that will be done by the companies. and then on the other side, it's really focusing on classroom testing. >> yeah, okay, and that seems like daunting as it may be, doesn't seem quite as difficult as manufacturing a small piece

of perfectly sequenced messenger rna. it's optimizing testing. >> if you're a state governor, you have two big challenges on your plate, one, people want the schools open you're seeing it in new york city businesses want them open because they have working parents. i have a 6-year-old and 8-year-old trust me, parents want the schools open, and the second problem is you want your case counts low so you can open your economy. to me, the solve here is the same if you could test all the students once a week, right, and the way you do thisis by testing a classroom using the same tests we currently use to test one person. right, so we have about a million and a half pcr tests a day that we can run in this country. instead of doing a million individual people, do a million classrooms and now your governor gets schools open because teachers unions want those students tested, so a safe workplace, and they also get

households tested in their state to reduce case counts because they know where the cases are, and that's the technology we're working on. >> all right jason, some day we're going to talk about, you know, revenue, profitability, how things look, funding all that stuff, but we're just trying to understand exactly what our number 44 disrupter does, ginkgo bioworks, thanks oiincoming up, futures pntg to a higher up, getting back yesterday's losses, all of them and then some. the big drivers of what's happening. ♪ sofi made it so easy to pay off my student loan debt. (chime) choosing sofi was literally one of the best decisions i could have ever made because it gave me peace of mind. ♪

the final month of 2020 is finally here wall street saw historic gains in november. look to add to gains to kick off december we'll tell you what you need t watch in today's trading session. that's coming right up. fed chair jay powell and steven mnuchin set to testify on the state of the economy and the need for targeted funding. we have a preview of the remarks. the pandemic closing gyms and forcing those who want to stay fit outside the ceo of brooks running talking about the state of business and the consumer. the second hour of "squawk box" begins right now ♪ the worlds burning down you make the best of what's still around ♪ ♪ and the world is running down you make the best of what's still around ♪ good morning, and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. show you where u.s. equity

futures stand this hour. they stand higher is where they stand. dow looks like it would open 341 points higher right now, s&p 500 about 40 1/2 points higher, and the nasdaq looking about 117 points higher. a lot going on, and i'm going to send it over to becky who's got more. >> thanks, andrew. fed chair jay powell and steven mnuchin, their first appearance since the disagreement over the economic plan. will they be sitting side by side or is this a zoom situation, steve >> i think they have been doing this zoom. i don't even think they ever did this side by side. i can't remember, but powell has been doing zoom. mnuchin may end up at the hill we'll be watching the testimony to see if the dispute between the fed chair and the treasury secretary over the issue of

emergency lending issues breaks out into the open, and also before we can learn about the chance for any new relief from congress you'll remember treasury secretary steven mnuchin declined to extend five fed programs beyond this month over the fed's public objections. in his prepared testimony, powell states kind of matter of factually that the decision was the secretary's to make, and the fed will return the unused money to the treasury. he goes on to note that the fed actions so far have unlocked $2 trillion of funding to businesses, state and local governments, and to nonprofits powell adds demand for main street loans, one of the facilities being closed down may increase with the spread of the pandemic on the economy. it's continuing to recover but the pace is moderated and the outlook is extraordinarily uncertain. all of this can be taken as subtle hints for the need for continuing relief from the chairman's point of view for his part, mnuchin will say

americans are getting back to work, and they count as an accomplishment that half of the workers who lost their job in the pandemic have returned he sharply criticizes government shut downs saying they continue to impair, quote, remarkable problem and cause great harm to american businesses and workers. mnuchin urges congress to take the money, part of which was returned from the fed in unused funds from the c.a.r.e.s act and use it for a targeted fiscal package. thetreasury secretary says the package should target small businesses and workers he does not mention state and local governments, and that's a key priority for democrats, so unclear, becky, how close we are for any kind of compromise on a relief bill. >> yeah, that was going to be my question we've got senator mark warner who's going to be joining us later today. he's a democrat who's been working with some democrats, some republicans, to try and find areas where there is bipartisan support, but even if those senators can come up with

something, do you think the leadership of the senate and the leadership of the house could possibly work together at this point to get anything passed >> you know, there's more political question, becky, and i'll just say this, the two sticking points as i have been able to figure it out are one is the immunity from lawsuits that leader mcconnell wants for businesses, for bringing workers back to work, and for the democrats, it's state and local. it seems inconceivable that they could not come to some kind of compromise, especially now, becky, that millions are about to lose their benefits, lose the assistance that they're getting in this, from this pandemic, while it's raging right now and things are going to get worse. you know, the market seems to be more than comfortable to look six months down the road or eight months down the road and say everything is going to be okay, and that may be the case in the meantime, it's like we're still having an absolute raging

virus. people are going to lose their benefits there's some talk, becky, about the jobs numbers this friday the consensus is around 400,000 or 450,000, but some of the high frequency data suggesting that the number could actually be negative, the economists aren't going with that, but if you put together a negative print with some kind of reaction in the market, that's the sort of thing that might light a fire under congress to get aid out there. >> and steve, if they don't come to some agreement and extend them beyond the end of the year deadline for so many of them, what's the flexibility for the incoming biden administration in terms of programs, is it as simple as saying okay, on january 20th, we're going to decide we're going to do these things or does it have to go through complicated votes all the way through congress again >> well, there is money still there, as we reported first,

that there is some -- the fed will have some $750 billion of lending power that can be put back to work if it's needed, and i don't think it's that complicated. it's a vote of the board of governors of the federal reserve and the approval of the treasury secretary. these programs could be started back up on january 21st. i think you'll lose some momentum in the programs the one thing, i'm just going to say this, the one mistake i think that the treasury secretary is making is closing down the main street lending facility it hadn't been all that effective, becky, but they had just recently changed the terms to allow for a lower loan of $100,000 it seemed to be picking up some momentum the main street lending facility, there is no parallel for it out there any other place. it provides loans, inexpensive loans to medium sized businesses they hire a lot of people. they can't access public markets. i think shutting that down is a real problem i think it needed a chance to

work it can be restarted again on january 21st and i'll go out on a limb, and expect it on day one, janet yellen will talk to fed chair powell and probably restart that program >> steve, we spoke with senator toomey from pennsylvania who's on the oversight committee for a lot of the c.a.r.e.s funds i think that program is one of the ones that he had said that, look, he understood not just the letter of the law, he helped write it, and he said, yes, it was due to expire, that when congress wrote it, the intent was it couldn't be extended past this year. they would have to get congressional approval to get that >> i don't know. i'll have to look into that, becky. i think it can be restarted, as i understand it. maybe there's a different reading out there. you know, i'll say this, becky, toomey may be right about that, but, you know, the idea that they knew back in march the

needs of the economy in december and the extent of the virus and the spread of the virus, i think that's probably untrue that they what was going to be needed back then if they need to go back to congress, i guess i'll have to check on that. >> true. if that's the intelligent, i don't know, i think this was one of the programs. toomey definitely said with the c.a.r.e.s act money it was the intent of congress for it to end, and you're right, congress may not have known where this went but that doesn't mean that they can just change the law as it's written or, you know, the situation as it's written, they would probably have to get approval again what's shocking is it's so difficult to get approval from congress you would think they would be able to see this and say yes, it's needed but i don't know for sure we should go back and check our facts on this. >> i think i can square the circle here. they're not going to use c.a.r.e.s act money, i don't believe. there's a thing called the exchange stabilization fund that the treasury and the bosard of governors, they can use that pot of money i think it's about 70 billion.

if you leverage up, i think that's where that money could woman from, and i believe they would be within their rights to start that program up again, but let's all check on that. >> okay. that makes sense thank you. thank you, steve, it's good to see you. >> sure. you too. >> joe thanks, beck coming up coming up, the announcement of sales force may be buying slack, expected today the deal expected to be about half cash, half stock, we'll discuss the tech deal making landscape after the break. let's get a check of the markets this hour. we're up about 340, 350 points, getting back to the 270 we lost yesterday. and shares of bitcoin in striking distance of 20,000 after recently hitting an all time high. "squawk box" will be right back. (♪ )

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deal making in the second half of 2020 has been primarily in the tech sector, from a airbnb's imminent ipo, joining us with a look at tech deals as we close out the year, zach aarons, cofounder and partner of a property tech venture capital

firm, and carol lombardo, i'll start with you, what can you tell us, when should we expect something, and do we basically know most of the details at this point for the upcoming presumably transaction between salesforce and slack >> yeah, joe, i mean, i think by this point we're all expecting to see something with salesforce's earnings. some of the details have trickled out, a consideration of cash and stock i think price we're expecting somewhere in, you know, the high 20s is kind of where the valuation seems to be coming down it will be interesting to see exactly how the companies describe the rational. i think there's a lot of ideas out there about what this deal would do to help salesforce compete with microsoft i'm excited to see if there's other things we're missing about what salesforce sees in slack.

>> you expect the market to be happy for salesforce, you expect the market to be concerned about di dilution, do they need to do it, do they want to do it, these are the questions swirling around. >> that's exactly right. the reviews have been somewhat mixed from analysts. you saw the day we broke the news last week i don't think salesforce's stocks reacted particularly well i think that's typical we'll have to see exactly what they have to say and where the valuation lands today, and that will give us a better sense of what's to come. >> so should we view salesforce -- zach, are you back i heard we lost you, now i'm not sure you're back or not. they told us to stick with cara. >> yeah, i am, thanks for having me. >> what do you make of this,

then, now that you are here? >> i think that salesforce over the past few years has had a thoughtful and programmatic acquisition strategy but they pay up for deals they went out and bought mule soft for api integration technology then they went and bought tableau, business intelligence, they're looking to really diversify their offering beyond the core crm, and to your point, absolutely try and compete with firms like microsoft even though they're paying up for this deal, i think from a product perspective, from a cross perspective, it's going to be accretive for them and i wouldn't be surprised if they went out in the future and acquired for tools, tools for a sauna or something like that >> do we have a different view about salesforce and the company it wants to be should we think about it

differently at this point, zach? >> absolutely. we should now start thinking about sales force as looking to become one of the major enterprise technology players. they are looking to absolutely try and compete with microsoft they want to take over all aspects, i would say, of someone's work and it's not just about crm. it's not just about business intelligence anymore it's now embedded in communication that people are going to have at work, and i think ultimately it's going to be about task management as well with the platform. >> so cara, where will you start looking, you know, still have to go have work to do, i guess, in terms of acquisitions, salesforce, to complete what zach was just describing are there other areas that you already would be looking at for the future or does it take a while to digest 20 billion

>> well, you make a good point i mean, even assuming this deal gets announced and happened, salesforce or microsoft will be several times salesforce's size and if they are trying to compete and become more of a broad range, have a more broad range of offerings as opposed to just the customer relationship management is software, they will likely continue their shopping spree and continue to keep us all very busy. >> let's quickly shift gears, zach, and you know, you have made some great investments over the years, obviously talk about both door dash, and airbnb in the upcoming offering. >> yeah, so from my perspective, we're looking at what's most certainly the most booming ipo market that i have seen in the technology space i wasn't investing back in 1999. with respect to airbnb, and i'm

an equity shareholder in airbnb, i think you have seen remarkable resilience from that company if you look back to the pandemic when they raised that capital, debt and equity with silver lake, their business was really struggling i think what you're seeing now is a remarkable snap back. i think you can expect post vaccine the transient part of their business will rebound very strongly i think what's happened to date is you've seen the definition of an entire new category where they seem to be the market leader, and that's sort of the mid range, midterm stay, so people who are signing leases in their new lifestyle, in the new covid-19 paradigm, they're signing leases, let's say between one month in length, up to six months. maybe they're spending one season in the mountains. maybe their children are zooming in to school remotely. maybe their jobs are a little bit more their employers a little bit more flexible.

airbnb has become the market leader in that essentially newly created segment, and i see those migratory patterns to continue to grow, and then also to have heavy rebounding in its transient business, especially as more and more hotels are in delinquency and default and struggling to reopen in major cities, certainly the united states and really across the world. with respect to door dash, i think one of the interesting things is certainly the massive explosive growth has been fueled by the pandemic. people staying at home, people ordering in. i think one of the interesting things about door dash and their execution over the years, they clearly run a very very tight operation with respect to their margin profile, versus their competitors. they're also much more focused than their competitors, if you look at uber, which acquired post mates for their uber eats,

that's not their main business line door dash is exclusively focused on delivery, so i think door dash is going to continue to see growth and a push towards profitability. >> very good, zach aarons, i appreciate it. cofounder and partner of met prop cara lombardo. do you compete with sorken: do you like him are you frenemies, how would you characterize the dynamic there, cara, respect, revile go ahead. >> well, absolutely respect, but, you know, we actually haven't metaphor mali, and i was hoping this morning might be that, so here we go. >> here we are. >> i'm going to introduce you. >> i follow her byline religiously, but we do compete. >> let's get it out of the way

you love deal book, he loaves byline, lets movon i love meta prop, if that helps. but we do have some breaking news to bring you right now. a bit of a scoop this morning. the nasdaq is going to be asking the s.e.c. for permission to adopt a new requirement that would make companies listed on its exchange to have at least one woman and one diverse director, and also report data on the board's diversity this is the first major stock exchange to require diversity, and it's the first time actually a stock exchange, a major stock exchange has made any kind of requirement quote unquote beyond the law. this will happen in a phased approach over two to four years. every board and there's 3,000 companies, more than 3,000 companies on the nasdaq, would

be required effectively to have at least one woman and one minority that could also be lgbt if you don't have one or both of those requirements, you would be forced to effectively write a letter explaining why you don't. of course this raises lots of questions about the role of stock exchanges. we've seen goldman sachs and others discuss or try to do things like this, saying, for example, goldman sachs won't take a company public without at least one diverse member big implications, is raises questions about whether stock exchanges will have social and economic issues. the nasdaq says this is not an issue that they wanted to take on they had hoped that the s.e.c. would do this on their own, and actually would be able to do it

in a more holistic way to make such a requirement not just for public companies or private companies, owned by private equity or otherwise. the state of california is requiring one woman on every board. interestingly of the 3,000 plus companies on the nasdaq, 75% of those companies would be impacted by this just to say that, 75% of the companies that are on nasdaq today either don't have a woman on their board or don't have somebody that would be considered a minority, so big questions about what this all means, but a major step in the conversation that we have been having around esg and of course the disclosure requirements and as i said, there are going to be lots of companies that are going to have to change the make up to some degree of their boards over time >> yeah, andrew, that was going to be my question. how many companies did this affect, and i guess if it's 25% of 3,000, that's 750 companies that will have to either change it or write a letter.

>> no, no, it's 75%. it's 75% would not qualify. >> don't >> of the 3,000 will be impacted so about 75% of the companies today, if you can believe this, in america today, 75% of the company either don't have a minority on their board today or don't have a female on the board today. and so they would effectively have to either write a letter explaining why they would have, by the way, and some people say this is too long a period, but they would have two to four years to effectively bring a female and a minority member on to the board >> and the point there is that nasdaq is trying to give them a lot of runway and time to find the right people if in fact they don't already fit that quote unquote requirement. >> not only find the right people but also to make sure that you're doing it through the proxy statement and not forcing these companies to create extra

board seats before you can fill them, i guess, under the normal time of filling some of these things the nasdaq is asking for permission to do this. do they need to? >> my understanding is they do need to do it. there will be a comment period that would be required of course what the nasdaq says is that they don't want to be a gate keeper on this. what they want to do is provide more disclosure. as i said, you could technically qualify and not be delisted by the exchange if you were to provide disclosure and a letter explaining why you have sought not to fulfill the quote unquote requirement and the idea, they say, is that the role of the nasdaq should be to help investors, and to help investors better understand what's going on inside companies from a governance perspective and at a minimum, it's the disclosure that would be required it will be interesting to see

whether the new york stock exchange follows suit with this requirement or whether this becomes a differentiator, for example, in terms of how the two exchanges complete against each orr, and whether this gets taken into other spheres, for example, on climate or other things if terms of closures that could get required or be asked of companies in terms of their sustainable plan so a big decision and move lots of companies and lawyers for their companies are going to be looking at this and trying to understand what it all means and i'm sure we'll discuss more about it in just a little bit. when we come back on the other side of this break, smart glass maker view is going public, sponsored by counter fitzgerald, ceo howard lutnick will join us in just a couple of minutes. "squawk" will return right after this

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december is here, finally, and most stocks are coming off an incredible month. november was very good to the markets. the dow up nearly 12%, seeing its best monthly gain since january of 1987. the s&p and nasdaq both up

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welcome back to "squawk box" this morning smart glass company view which is backed by soft bank going public through a spac, merging with cf finance corporation 2, a special acquisition company sponsored by cantor fitzgerald, the merger is expected to close in the first quarter of 2021 joining us now to talk about that and so much more is howard lutnick, the chairman and ceo. tell us about this transaction and what feels like a spac frenzy and how you're thinking about it. >> view tints the glass. this is called dynamic of smart glass. when the sun hits the building, electrical charge goes into the window and it turns into hinted like sunglasses, you don't need shades or blinds, it keeps the

heat out, keeps the uvs out. makes your building about 20% more energy efficient. it's a green company, so this is a green spac fund raise. it's considered a morning star rated a green spac fund raise and it's really incredibly exciting product it makes buildings better for the people on the inside, more efficient, and i think it's going to rock the real estate industry >> this is the second spac that you've done in this way, and i know there's probably more to come just speak to sort of what's going on in this space is this a frenzy is it a fad. how is it going to change over time right now, the fee structure is typically in the favor quote unquote of the sponsor at some point, does that change. does it make it less attractive or shift who's going to ultimately be behind these things >> well, the key to a spac, you know, a regular ipo is all about

history. you're protecting the investor, and you only can talk about the company's history. a company like view needs to talk about projections it expects revenues to grow 150 to 175% next year, and 100% ef year from the foreseeable future it gets to talk about its projections, its margins margins are 60% margins on this glass. that kind of company should go public, and that way he can put out all its projections and show the investing public, this is the kind of company i am a huge hot growing, fast growing company, and i want you to know how quickly we're growing. otherwise in an ipo, you only can talk about, you know, what has been, not the future i think what you're seeing in the stock market is these fast growing high-tech companies like view and i think this is a great market for them. and i think you're going to continue seeing it

so it's not really a fad as it is a really good way for fast growing, high-growth tech companies to go public. >> right does that mean that the traditional ipo is broken, meaning should the rules change around ipos, such that those companies that go through the quote unquote traditional process should also either be allowed to have forward looking projections or you could argue if you're trying to flatten the playing field that companies in this regard that are part of a spac shouldn't be. should there be a level playing field or do you think there's something distinctive and different about both of these approaches >> one of the things that's different, for instance, in this transaction, $300 million has been raised. you've got $300 million worth of institutional investors who already put their money committed to the transaction at the $1.6 billion valuation the regular ipo, trying to upset the value all at the same time,

and everybody is coming in at the exact same moment. here you've got $300 million of investors who have committed their money is now the spac investor this morning gets to decide do they want to stay in or go out. if you're a spac investor in cf finance, you can decide, you know what, i like view, i'm sticking in, or if i didn't like view, i can sell it, so you know, the idea is the spac investors have the option to stay in or go, but what they see now is pipe investors, right, pre the transaction have comm committed $300 million, and now they have the option to stay in. you're going to see these things trade well i really like the structured spacs. cantor fitzgerald is the number one in spacs in 2018 and 2019, and now that spacs have become so popular it's a good way for a high growth cane like view and dynamic glass to go public, and i think you're going to see the

investors really like it by the way, the coolest thing about the company is they take the glass that's on your phone and embed it on top of the glass and it becomes your phone. you have a 55 inch monitor that goes right into the glass and that product is coming out this year you can see it on view.com it is really mind blowing. so cool. >> howard, before we let you go, i wanted to get your thoughts, i don't know if you saw this news, the nasdaq putting forth what they're hoping will become a requirement for all nasdaq listed companies such that they have at least one female on their board and one quote unquote minority defined as either lgbt or minority in other terms. we can talk about what those terms are. it's the first time a stock exchange has gone further, frankly, than the law requires they're asking the s.e.c. if they can do this, and of course

we'll see whether the new york stock exchange follows through what do you think of this? >> i have two public companies, i have egc partners and new mark and both of those companies have women and minorities on the board. i mean, with all due respect, what year is this, 2020, you know, if you're not representative on your board, you're not getting a full diverse of interesting conversation going, and you should cover a lot of ground, so i think it's a perfectly reasonable thing to do whether it should be the law companies should be doing this on their own nobody needed to tell me this is the law. give me a break. women are half the people on earth, how do you not have women on your board, come on, these are awesome people, you need to stop being so narrow minded and get out there and get a broad group of people on your board. i don't know whether it should be the law or not. i think it should be the way people run their companies, and it surely is the way we run ours. >> okay. howard lutnick, good to see you

this morning good luck with this newest spac, and we look forward to more and look forward to talking to you again very very soon thanks so much >> look forward to it. all right. coming up, the ceo of brooks running joins us it's a unit of berkshire hathaway and it's seen its sales boom during the pandemic as people head outside to run or i guess, you need sneakers on a treadmill too, right, he joins us in a couple of minutes. the futures at this hour up 337 points or so on the dow coming up

welcome back, everybody. airbnb amending its s 1, updating investors on its upcoming ipo leslie picker is here. she's got the details on that. good morning, leslie >> implied offer size and valuation that the company will use to hock stock to investors now, the home rental platform is seeking to generate as much as $2.5 billion while prior investors are looking to cash in an additional 96 million through the deal at the high end of the range airbnb would be valued at $35 billion. that's on a fully diluted basis. airbnb initially saw a huge drop in bookings at the on set of the

pandemic as consumers hunkered down at home revenue plummeted by nearly a billion dollars during the second quarter compared to the previous year. ceo brian chesky had an $18 billion valuation, well below it's $35 billion valuation from three years prior, but in the july, august, september quarter. airbnb's business snapped back, pulling in $1.3 billion on the top line during the third quarter, although that figure is still about 18% shy of 2019 levels despite spending most o. yef th year with losses, airbnb enjoyed a profitable third quarter guys. >> leslie, is this a situation where we know much more about their grander plans? for a long time, brian chesky had talked about kind of branching out and being much more than what you normally think of as a hotel rental place or home rental place have they said anything else about their grander plans, what they plan for the longer term? >> that will be interesting to see in the retail road show

video that should be posted within the next few hours. that's the video that they use to kind of present to investors that should have some indication on that next chapter of their planning for the company but you're right, often times, investors in an ipo, especially for companies that are of the age that airbnb is that are a bit on the older side for ipos, for founder led ipos, anyway, they like to see kind of what the next chapter is, where is the next stage of revenue growth going to come from that will definitely be a key question on its road show as it meets with investors as people try to understand the business and how much of kind of the jump this year has been due to the pandemic how much of that is sustainable beyond the pandemic, guys. >> okay. leslie picker, thank you for that report. we of course will be following this offering, this ipo. meantime, when we come back, a lot more on "squawk" ahead road running booming during the

pandemic as people look to stay in shape and do activities outside. the ceo of brooks running joining us right after the break. and we are also on, as you might imagine, bitcoin watch we're on bitcoin watch almost every day these days it's now dropped 2% after touching an all time high this morning. we're at $18,869 and whistleblower goie're goingg from gaxaly digital ceo michael novogratz. all of that after a quick break. [ whispering ]

what's this?

oh, are we kicking karly out? we live with at&t. it was a lapse in judgment. at&t, we called this house meeting because you advertise gig-speed internet, but we can't sign up for that here. yeah, but i'm just like warming up to those speeds. you've lived here two years. the personal attacks aren't helping, karly. don't you have like a hot pilates class to get to or something? [ muffled scream ] stop living with at&t. xfinity can deliver gig to the most homes.

. 2020 has offered us plenty of surprises, including a boom for running. brooks running, the maker of specialty running shoes is expecting 27% growth for the year, even with so many retailers closed earlier this year jim weber is the ceo of brooks running, a wholly owned subsidiary of brookshire hathaway, it's good to see you. >> it's great to see you thanks for having me this morning. >> so, it's been a big year, up 27% doesn't even explain the huge growth that you have seen i think in the more recent quarters what happened? >> you know, it was incredible, the entire retail category froze, and running was a part of that and with all the retail stores closed in europe and the u.s.,

it was fascinating but six weeks into it, we saw demand starting to hit on digital. digital was 35% of our revenue in 2019. it went to 82% in those peak months where the retail stores were closed. through it all, we have added 1.5 million new runners this year it's clear, people are running it's a taylor made activity for the pandemic. >> you have to get out and get away nothing else you can do. you got to get out and hit the road what do you do now, jim? are you still seeing those kinds of growth levels or did it tailer off at some point and pick back up as some restrictions came back >> you know, actually, we have seen the demand just move from channel to channel and we're a multichannel brand, we think in running if you want to be the number one brand for people that run, you've got to be multichannel driven. it's not direct only because we were able to flex and

sell direct when the runner was there, it came back. retail is back to almost 60% of the overall volume our ability to flex was key, but then this running phenomenon is driven by people who are investing in themselves. it's physical health, mental health, fresh air, running is so accessible, convenient, affordable, that we think it's going to stick, and we believe we're really at the beginning of a new running boom when the sport comes back, when the events come back, it's going to turbo charge, we think people that are in our sport. >> i know you have a lab that tracks consumer insights and checks out what people are most interested in, how their tastes of changed what have you learned during this pandemic from those insights >> it's been critical for us when retail shut down, all of our retail signals were gone and so we started really following runners run. we were doing runners counts at parks in dozens of cities across

the u.s. and a lot of focus groups and the like and what we have seen is more and more people are connecting into this lifestyle because it feeds them. it makes their day better, and if gets them outdoors. again, that phenomenon, i think that type of runner that's running for those reasons is up 20% from what we would have seen last year. we've lost, what we would call goal seekers there's no races other than virtual and those are meaningful but not quite the same, that people can connect with their friends on and set a goal for a 5 k or a marathon, and train for it so without that, we're seeing, you know, people literally going out their back door to get a break in the day >> jim, how did you find all of these new runners? did you advertise, seek them out or did they just find you? >> i think the key for us, and obviously it starts with great product, and we've got a lot of fabulous product stories we're telling right now, but we have been working for years to create

a digital ecosystem that, you know, meets runners in the digital realm, you know, we are always a grass roots company that doesn't happen the same way during a pandemic, so the digital connection as people are searching for gear on the web, you know, we have always been lit up there, and that's been key because we're present as they're shopping, and then when they buy, we believe they're going to buy everywhere. running is a local phenomenon, ultimately, so the local retail stores we think are a key arpart of it. people until the direct game in some categories miss a little bit. if you want to reach all runners, the multichannel mode is critical, and our agility being able to address where the demand is with inventory has been a critical part of our success this year. >> how are the local retailers doing? those are generally smaller operations, sometimes one store, sometimes just a few stores, have they really, from what i hear in new jersey, it's an incredible number of small businesses that have closed. how are those retailers doing?

>> yeah, it's -- there's no question it's been the most difficult year for many of us to date, and so what we have seen, though, is that many of them have been incredibly resilient they're entrepreneurs, and they're scrappy. when the stores closed, we supported them on curbside partnership, same day shipping they have gotten very resourceful. the sports shut down, cross country in high school, and a lot of the clubs and races, that's hurt them but most of them are holding their own we feel very fortunate because it starts with people running and they need gear so we're fortunate in that regard, but it's been impressive to us, many of the stores are flat to up over last year through all of this, and again, it's been an incredible effort, stressful but the key is our customer's still there, and retailers have held their own. it's been impressive

>> your revenue up 27% for this year can you repeat that next year, if you think you're going to hold on to these customers >> i'm not sure we'll get that high but we're projecting double digit growth we were up 49% in q3, projecting just under 30% for the year. that's a big year for us and a lot of it is market share but of course it's gains in participation too. we expect to grow double digit next year. we think we're at the beginning of a fantastic trend in running and brooks is really well positioned for it. we think when the sport comes back from the olympics to the road races, it's going to turbo charge the growth we're seeing right now. >> jim, thank you for your time today. it's always good seeing you. >> thanks for having me. take care. >> take care coming up, senator mark warner is going to join us to talk about the possibility of reigniting those stimulus talks as the virus continues to spread that's next. then later, don't miss a first

on cnbc interview with zoom cfo kelly ecstkelberg on that company's block buster quarter "squawk box" is coming right back no one likes to choose between safe or sporty. modern or reliable. we want both - we want a hybrid. so do banks. that's why they're going hybrid with ibm. a hybrid cloud approach helps them personalize experiences with watson ai while helping keep data secure. ♪ ♪ from banking to manufacturing, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. ♪ ♪

good morning, we just finished up the dow's best month in three decades, and guess what, futures pointing a lot higher this morning again. what's ahead for the markets and your money in december a new call from a big group

of democratic is thsenators we're going to speak with the leader of a new effort, virginia senator mark warner. and who gets coronavirus vaccine first we're going to dig into that important question ahead of a key cdc debate today the final hour of "squawk box" begins right now good morning, and welcome to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin u.s. equity futures are bouncing back what's that? >> you whistling, you weirdo >>. [ whistling oh, yeah, i can't help it. that music gets me going, the crescendo at the end

you remember in broadcast news they did that. >> broadcast news, yes >> remember the song. >> big stinger. >> yeah. well, someone did that as well anyway, it has now been one year since a mystery respiratory illness, a serious one, emerged in wuhan, china. that was the beginning of the coronavirus pandemic, which has tailbo gone on to reshape the world in the 12 months since we saw that from health care to politics to business to the stock market, and every aspect of life the dow has gained about 5% in the last year. but after a big drop with an equally impressive rebound, the dow is the laggard, though, among the major indexes. the s&p is up 15% over the past year while the nasdaq is up 41%, and that is not a typo andrew. >> okay. thanks, joe.

let's talk about some of the stories that investors are going to be talking about today. airbnb launching its ipo road somehow this morning with an amended filing the company the price of shares between 44 and $50, giving the company a valuation of $35 billion. seeking to generate as much as $2.5 billion it plans to list on the nasdaq under the symbol abnb. speaking of the nasdaq, some more beg news this morning, the exchange is going to be asking the s.e.c. for permission to adopt a new requirement that would make listed companies have at least one woman and one diverse director and also report data on board diversity. this would happen in a phased approach over two to four years. right now, 75% of the companies on the nasdaq exchange would be impacted by this rule, which is to say that either they don't have a female on the board or a minority meantime, check out shares of tesla this morning

let's show you where that stands closing in on $600, $595.90. s&p says the stock will be added to the s&p 500 all at once that's going to happen on december 21st. it's notable there was talk that the index committee considered whether to add the company in two stages because of tesla's mass ifr mark -- massive market cap the company they will be replacing will be named on december 11th. and i know there's lots of investors making bets, effectively short bets on what that company may be, becky. >> thanks, andrew. two other big stories we're following as we begin the hour phil lebeau is joining us in just a moment on the airline's big push on trying to lure back business travelers let's get to meg tirrell, she has the story on the coronavirus vaccine and the debate over who's going to get it first. a tricky one there, meg. >> it sure is, becky, and it's coming to a head today, so this

advisory group to the cdc is going to meet today and take its first official vote on who should be really at the tip py top of the priority line the advisory committee on immunization practices or acip, meeting from 2:00 to 5:00, the reason they need to vote is because supplies are so constrained, of the vaccines if and when they get approved, in the middle of sdecember there could be enough for 20 million people in the month of december, and then 25 to 30 million people starting in january of 2021. so the cdc has laid out a set of prioriti priorities but they need to sort among them because there's not enough vaccine to cover all of the groups they include health care personnel. there's 21 million americans in the group. adults over the age of 65. there's 53 million of them other essential workers who keep

the economy going, 87 million and people with high risk health conditions, 100 million. the debate is who should be at the top of the priority list, and the cdc group has been leaning toward health care professionals and people in nursing homes. that would be 24 million people. there are reports that the trump administration is pushing for people over 65 to be at the top of the list. this is a debate over who should be protected first as supplies of these vaccines are so limited at the beginning guys >> and meg, just looking at the math on that, you add that up and that's more than 250 million people there's got to be overlap in groups, people who are first respo responders and over age 65 and high risk. i can't imagine that 250 million plus of the, what, 330 million people in the united states fit in these four groups >> right no, there's absolutely overlap, particularly, you know, the high risk adults with more than 100

million people would very likely fit into the other groups, you know, essential workers, for example, and just figuring out those groups and who should be at the top is going to be that challenge, but then as we work through the priority groups, you know, there will be the rest of the country, and that is expected to be, you know, may through july when folks who don't fit into one of those groups will get a vaccine, and we'll start to get to the 70% of the country reaching herd immunity when life might start to get back to normal a little bit. >> all right meg, thank you, let's go to phil lebeau now on the airline's bid to attempt to convince businesses that it's safe to put their employees back on planes good morning, phil >> good morning, joe you know, this has been going on for some time, all of the airlines have been working with their corporate travel customers, trying to convince those who are in charge of corporate travel, who ultimately are the ones who say it's safe to go on the road, they can do that this is boston logan airport

we were there yesterday as delta was giving the head of corporate travel for that kakeda, a japan pharmaceutical company they took them behind the scenes everything that takes place in terms of when somebody is going on a flight, including showing them how they are spraying down the planes, wiping down the planes, keeping them as clean as possible, making it a touchless journey and for the head of corporate travel, this is crucial for her to go back to risk managers and to say, yeah, it's safe to get out on the road >> when we started the return to travel project, we heard some really fantastic feedback from our travelers, what was working, what wasn't working, what improvements they would like to see during the journey, and that's really the end-to-end journey, and we have used that to work with preferred suppliers to inform changes they could be making that would help travelers feel safe. >> as you take a look at

sharesover -- shares of delta, they have given 450 safety tours to 850 corporate accounts. sometimes it's not just one corporate traveler, it may be a number of executives where they're walking them through the entire process the question is how long will it take before you see an increase in corporate travel, as you take a look at passenger travel overall, remember, we're seeing a bit of a rebound, if you will, in leisure travel. but corporate travel, it's still down 85% compared to last year, and a number of executives in the airline industry believe it's going to take at least three years until you see a full recovery but this gives you guys some sense of how the airlines, they're not just sitting still they are working, trying to convince companies that if they want to get people back on the road, if they need to get people back on the road, it's safe to do so. >> phil, they have to do that because those are the most profitable travelers

>> right well, yeah look, corporate travel is so important to the airlines. that's why they're doing this. >> hey, phil, anecdotally, what about sunday night i think it's one of the busiest, sunday during the day, one of the busiest travel days of the year anecdotally, i was at newark it took me a long time waiting in a line of cars to get to the terminal where i needed to drop someone off, and it was packed and it was packed inside that's not business travelers, but what do you think passenger travel levels look like in the first quarter? >> i think they're going to be low. and right now, if you look at sunday, as busy as sunday was, the busiest since the pandemic began at 1.17 million people flying that day, that was still down 60% compared to the same day a year ago and the first quarter is always the slowest for the airline industry

expect it to be that way in the first three months of next year. you really don't have anything there's no holiday there that makes people say, yeah, i've got to get up and go president trump's day gets a little bit of business others, it's a slow time of year, and i think given the way the pandemic is going right now, you're not going to see strong numbers for the airlines that's a fact of i think people are to a certain extent hunkered down and that's not going to change >> phil, thank you we'll check in with you again soon. when we come back, more than 30 democratic senators calling for an extension of unemployment benefits set to be wiped out at end of the year. we'll speak with the senator spearheading that new effort, virginia's mark warner. bitcoin investor, mike novogratz, and the ceo will join us to talk about the third quarter results. let's take a look at the russell 2000 performance for the month of november up believe it or not 18.3% just in the month

that's its best month since the index was created in 1984. this morning it's down by about 1.9% stay tuned you're watching "squawk box," and this is cnbc it's down to the wire,

the team's been working around the clock. we've had to rethink our whole approach.

we're going to give togetherness. logistically, it's been a nightmare. i'm not sure it's going to work. it'll work. i didn't know you were listening.

welcome back to "squawk box" this morning let's show you futures right now. dow is going to power higher, 324 points, nasdaq up 118 points, the s&p 500 looking to open higher as well, 37 1/2 points higher right now. becky. >> thanks, andrew. new calls on capitol hill for an extension of unemployment benefits, helping to keep millions of americans afloat during this pandemic ylan mui joins us next it's good to see you this morning. >> reporter: good morning, becky. we have just learned this morning that there will be a bipartisan group of lawmakers who will be unveiling a new covid relief proposal later on today. now, there are 14 lawmakers involved in this republicans and democrats, both from the house and the senate, including members of the problem solvers caucus, as well as gop senators like mitt romney, and lisa murkowski, and democrats like joe manchin and mark warner these are some of the lawmakers

who have been involved in informal discussions in recently days around individual measures that might be able to pass alongside a government funding bill next week and in fact, today, senator warner led 30 democratic colleagues in a letter to leadership of both parties calling for an extension benefits that expire at the end of the year. one of the programs provides 13 weeks of aid and another prvtogether those c million workers and their last payment is expected to come the day after christmas. the letter reads we know it was the bipartisan intention of the emergency unemployment programs to provide all workers access to a safety net during the crisis we also know there's interest on both sides of the aisle on renewing the paycheck protection program as well as providing funding for vaccine distribution we'll see if the new group can break the log jam. back to you. >> yes, we will. in fact, let's bring in virginia

senator mark warner. he's spearheading this new push for extended unemployment benefits, and i know you want to focus on this today, senator, and as we're in this period between the last administration and the new administration, but maybe tying it to funding will actually get something done, by december 11th, that's the plan. >> the plan is let's break it into two chunks, one the extension of the unemployment. as a matter of fact, there are more people on either the extended unemployment or the unemployment that covered gig workers, national anthindepende contractors, folks that have been affected by covid, not covered under traditional unemployment we think we ought to not leave these folks in the lurch the day after christmas when some of the benefits start to expire, particularly when we have seen the second wave of covid

i actually do think there's a lot of bipartisan support for the unemployment extension, and as was mentioned, there have been a group of us, i have been working on the senate side with a group, bipartisan, that says, you know, we will look -- it will be, i call it stupidity on steroids, if we allow this additional package, whether it's around unemployment, support for small business, vaccine distribution, a series of other areas that need to be in an interim package, a short-term emergency package to bridge us from now to the next administration >> right do you feel now that the election is over that there may be some traction here? how do you handicap it, senator, at this point, realistically >> well, you know, we're not going to do what the democrats were looking for in terms of 2 trillion i don't think there's any appetite for the kind of republican only 500 billion that frankly with some of the moneys

that are now available from the secretary mnuchin sweeping all of those 13-3 programs back in would literally have no additional funding so somewhere there's a bid and an ask here, and there's a group of us, and i'm not going to get into the details right now until our announcement at 10:00 this morning, but a group of us kwhowho have been working for the last couple of weeks daily are going to put forward our best effort and hopefully there will be other like minded folks that will join that if there's one thing i'm hearing uniformly is congress do not leave town for the holidays leaving the country and the economy adrift with all of these initial c.a.r.e.s programs running out. >> senator, i always like having you on, and we always introduce you as a moderate. i guess that's pretty close, though i get twitter mail, you vote 99% with the liberal side of things, so they always push

back on it, but i'm going to just assume you are moderate so we had someone on yesterday make the point that maybe president-elect biden wouldn't be that disappointed if there was a divided government, if the senate, if georgia were not to, you know, if david perdue is reelected because if that were to happen, he doesn't need to appease some of the far left elements of the democratic party, and, you know, he does need, you know, he owes them, and i think he feels that, and with some chof his appointmentsi think you're seeing that, but is there some truth to that, and for you, would you like to take the senate as far left as some members of your party would like >> i think folks know my record. they know my background as a business guy they know i can read a balance sheet. i tell you this, i would love to be chairman of the intelligence

committee where i think with our nation under assault, that will only take place if we pick up both of those seats. i think frankly seeing how hard this has been the last couple of weeks to get to this bipartisan compromise today, that's going to happen when the senate is 50/50, whether it's 52/48 republican, 51/49 republican, it's going to require those of us in the middle who want to work in goodwill with our bipartisan colleagues, we're going to be in the middle of a lot of things. >> right hey, senator, i'm just thinking about what i saw joe manchin say, senator manchin said he wouldn't try to expand the court. he wouldn't try to get rid of the filibuster, i don't know if he would add more states i don't know if he would -- i mean, there's a lot of things that have been proposed. would you say right here and now that you would not vote for expanding the supreme court? >> i've said early on that major

rule changes before we see if we could give your republican colleagues to act in good faith wouldn't make sense to me. again, the flipside, though, is we talk about moderation and talk about moderation, what is not moderation is a republican leadership that says their sole goal is to make a joe biden an unsuccessful president that is not a moderate approach. that is not a kind of let's come and reason together approach, and again, that's why i'm hoping, you know, the template we might be outlining this morning might be a path forward, not just on this covid relief package but on a variety of bills. >> senator, i wanted to also ask you to weigh in on neera tanden. there seems to be a large debate going on in the democratic party and the republican party about her nomination to run omb. you have the bernie sanders wing

of the party effectively saying that biden is, you know, almost, you know, flaunting it sort of going at them because of the terrible relationship that seems to have existed and then you have rob portman, i'm reading this in the "washington post," the concerns i have is both judgment based on the tweets i have been shown just in the last 24 hours, and it's the partisan nature that could be said of somebody else in office, but nonetheless, where do you stand? >> let me respond. three things, number one, if a nominee is taking incoming from the left and the right, i don't find that as a critique. i find that as essentially reaffirming. number two, i think it's pretty rich to hear anyone complain about anybody in public life tweeting too much, particularly rob's a great friend, but any of my republican colleagues that condemn someone out of hand

based on their tweetage ought to look in the mirror first, and finally, i know neera, i don't agree with her on everything she has lived an american dream life she's south asian, she has lived with a single mom, and actually live and benefit from some of the programs that omb administers. she's whip smart and brings a great deal of experience to the position so i find her extraordinarily well qualified, and look forward to her making her case >> very good all right. senator, we shall see. >> all right >> we've got a couple of other appointments obviously, and you know, you're going to get this, obviously. i'm going to -- i don't tweet that much. i may tweet something out right now about this, senator. if i tweet and include you, will you like my tweet? >> you know what, i try to -- i

tweet some too but more secondhand, so i try to stay off reading the twitter following because i'm not sure that's representative of anything >> i'm afraid to re-tweet. you know, if you re-tweet it's going to be something that did something, and it's like, oh, my god, then you own it the whole thing is just, it's scary. >> listen, as somebody who's a technology guy longer than politics, there's good side to this but definitely some downside >> senator, i'll see you on parler, how about that see you later. all right. thank you. when we come back, we're going to speak to the head of the nasdaq, dina friedman on this morning's big news on a push for more diversity on list listed ompanies' boards. here's a statistic for you, the s&p biotech etf just finished up its best month since

april. the stock leading the way, moderna, it more than doubled in november obviously you got a lot of good news about the phase 3 trials. and good looks at what's coming. that stock this morning up another 9 1/2% stay tuned yoarwahi "ua b" u e tcngsqwkoxon cnbc

breaking news this morning, nasdaq posting a board diversity

rule for it listed companies the companies would be required to have one woman and one diverse director and report data on their board's diversity if those items aren't met, the companies could face delisting nasdaq ceo adena friedman joins us live. this is big news we want to understand how you got to this place and what kind of reception you have received we heard howard lutnick. he says it's something all companies should be doing. he's not sure whether it should be a law but you go on twitter and elsewhere, there are people saying what about meritocracy, warren buffet has been asked about having minorities on the board. he said he's looking for the best people irrespective of their backgrounds. how do you respond to the critiques on both sides of this.

>> well, thanks for having me on i think the first thing to recognize is disclosure is the foundation of our markets and our economies, we rely on companies to make full and accurate closures to inform investor, so investors can make their own decisions as to which companies they want to invest in and what they expect of the companies. we focused on disclosure as a foundation for our proposal. so the first thing is we're asking every company to disclose the composition of their board based on self-identifying each of the board members self-identifying their diversity, and putting together a standardized table, so investors can understand it easily, and can compare companies across the spectrum. and the second is we are asking companies to meet is to have at least one woman and at least one person of either under represented minority or lgbtq on their board but if they don't

meet that standard, we are not asking them, we're not going to require that they get delisted but rather they are required to disclose why they are not meeting the standard so it's really allowing, again, investors to have a full set of information to make an informed investment decision, but that standard is not subject to delisting. the disclosure standard, though, would be and so i just want to make sure it's clear we're marching down the road, establishing a minimum we expect companies to meet or to explain why they aren't able or interested in meeting them. i think that's the first thing to note. the second thing, andrew, is that this has really been, to me, we're not the leader here in the world. the other countries have taken bigger and bolder steps in terms of requiring board diversity, and i think it's been an issue over the last decade to try to understand how to bring more diversity on to boards there's a huge body of evidence to show there's a lot of

benefits in terms of financial performance and control environment when you have a more diverse board, so i think that the research is helpful to understand why this is something where we think it will give investors more confidence and therefore as an exchange, we should play a role here, but i also would say that the end of the day, it is a matter of companies making their own decisions, and explaining and disclosing to investors their decisions and letting investors determine what they want to do on the back of those decisions. >> do you imagine that there are companies that are now going to want to list with you because of this requirement and companies that are going to potentially even move off the exchange because of this requirement? >> i believe that there are many many companies that are already working to meet this requirement, and so they'll see this as a natural step forward for us and for them. i also think that with california rule and other states coming up with their own rules, they're already, many of our

companies are already facing certain obligations with regard to diversity so it won't be a big step for them to take here there are -- we have 3,000 listed companies of all sizes and types and all industries, and so if there are companies that are concerned about the standard, we actually have a whole suite of services that we're launching associated with this role to help them find great candidates to serve on their boards i do think it's important to note that of course you want to have the right people on your board that provide a range of experience and expertise and there are a plethora of people from diverse backgrounds that meet those standards, it's a matter of finding them and matching them up with companies, so we are going to be providing certain services through a partnership with equilar to help them meet the standard. >> your understanding is currently 75% of the companies, eyeballing the list of companies

on your exchange would somehow be impacted one way or the other? >> we believe the vast majority of companies have a woman on their board. i think that the harder thing to understand and measure because there is no data out there today is how many of our companies have other diversity on their board. part of the reason we are looking at creating a mandate on board diversity is because of the fact there is no data. the first thing is let's get the disclosure out there, let's understand trends and then we can look at that and say has this been able to move the needle and create a more diverse set of board members for -- across corporate america i would say, andrew, that we believe that a minority of the companies probably have other diversity on their boards. we're not sure about that. a vast majority have at least one woman. >> what's your expectation that your biggest rival, the new york

stock exchange will follow suit? is it easier for you to pursue something like this, given that so many of your companies are tech companies and the like? is it harder for the new york stock exchange to go down this road >> we have companies from every industry listed on our exchanges. i would welcome the opportunity for them to see this as a good step forward for all of us and to take the same step. i would also we can the idea that the s.e.c. would consider this as part of a broader role that would affect all companies listed either public or private companies, so we are taking the leadership here because there has been so little action on this front, and we do think it's an important thing for us to do to create a more inclusive, capitalist society, and we think this is a step forward, but we would welcome the opportunity for our peer, the new york stock exchange and the s.e.c. to take an active role here as well.

>> big news across corporate america you're make this morning. nasdaq ceo adena friedman, thank you so much for joining us and we look forward to talking more about this with you in the coming weeks. and coming up, michael novogratz on bitcoin's breakout, the new heights and whether the goal is set to take a hit pay f because of the digital currency boom don't go anywhere, "squawk box" will be back right after this.

welcome back to "squawk box" with bitcoin surge over the past few months, crypto bulls say money is moving out of traditional assets like gold and into digital plays for more on bitcoin's record run and today's wild ride, we are joined by galaxy ceo, and crypto maven i'll call you, mike novogratz. it's great to see you this morning. just help us understand, let's first talk about this issue of gold, which is you do have what sounds like, at least anecdotally, investors moving out of gold into crypto. how meaningful do you think that is thus far? >> you know, i think it's meaningful but not the real story. the real story is adoption of bitcoin, adoption of crypto,

across a vast variety of accounts you saw scott at guggenheim, filing, bernstein made an about face and decided that should be part of their portfolio. it's just a litany of institutional investors that are changing their mind or realizing that now is the time, there's enough liquidity for bitcoin to be part of it. the broader gold story -- >> mike, can i ask you to the point you just made about institutional investors investing in bitcoin, i think it's worth noting because we had the ceo of grayscale on yesterday, and the approach that guggenheim and others are taking to bitcoin is they are not actually buying bitcoin proper, they're not buying bitcoin itself, they're buying grayst e grayscale, the fund effectively which goes out and buys bitcoin.

there have been times where gray scale is effectively out of kilter with bitcoin, meaning it's moving not exactly in tandem with where bitcoin is there's big fees on top of what grayscale is doing, and the reason people are investing in grayscale and not bitcoin itself is because grayscale is invested in all of the sort of know your customer effectively, all of the sort of wrap arounds that investors would want that aren't applied to bitcoin itself. >> yeah, listen. if bitcoin was easy to buy, the price would have been a lot higher, and so grayscale trust was a very interesting way for people to get an etf like exposure it's not an etf, but it's like an etf to bitcoin. that's the easier route. you're seeing more and more now institutional pathways we have a fund, there are plenty of other funds that are geared toward institutions. and we're seeing activity in those funds start to pick up as well you know, as people do the homework, the big hedge funds

going to end up buying bitcoin themselves, and they're going to custody at very trusted custodians, you're seeing the evolution of this industry, and it's speeding up in an accelerated fashion. i keep saying, we can't hire fast enough, with the demand of customers wanting to learn about this or participate. it is a digital story. >> mike, i remember there was a run up, i don't know when it was, and i watch it pretty closely, as i said it long ago, i own some bitcoin, but remember when it ran up to 14,000, and then you said, whoa, i wish i had lightened up on that, and then, i think the next time we looked at it, it was at 8,000. i made the point earlier that if you go back and look at the lows on any given year, 2020, 2019, 2018, i mean, 2021, i wouldn't even venture a guess

2020 i think was like 4,000, was it not, so what do you think in 2021 for someone who's considering bitcoin when the low next year could be 5,000 again for all we know. >> you know what, i don't think so because i think we have seen a real shift in the kind of -- the hands that are buying it, right, bitcoin was a retail, and still dominated by, you know, mom and pops, it was the people's revolution. 99% of total bitcoin are crypto transactions in the 2017 run were individuals, and as you're starting to see that shift to deeper pockets and more stable hands, i think you're going to see less volatility in the space. now i say that today we traded 19,900 to 18,200 we're going to have a lot of volatility around this high. so if i had to put frame work around it, i think 14,500, there's really really good support. it shouldn't go below that next

year i think if we take out 20,000, and i do think we will take out 20,000, we'll go much higher and then 20,000 will become the support. trees don't grow to the sky. it's an amazing run in bitcoin, and there's a lot of excitement. could there be a pull back, of course there could be. we had one literally eight days ago down to 16-5, and so i do think you'll see heightened volatility around this high. i told everyone i would get a tattoo of a moon on my shoulder if it gets to 20,000, so maybe that's my mother defending 20,000 vigorously, but something's up there right now >> mike, it's a longer conversation, here's the deal, if you do the tattoo, maybe we'll do it socially distanced, we should have a camera guy with you. we should do it live right here on "squawk," so there's something to look forward to. >> there you go. >> mike novogratz, we'll talk to you soon appreciate it. >> thanks a lot.

>> you forget so quickly, andrew, given the name of that jersey shore artist that did the tattoo of me for you, remember the one you got? do you have the guy's card all right. coming up, first on "squawk box," interview with the cfo of zoom, straight off the company's solid third quarter results, stay tuned, you're watching "squawk box" on cnbc labradoodles, cronuts, skorts. (it's a skirt... and shorts) the world loves a hybrid. so do businesses. so, today they're going hybrid with ibm. a hybrid cloud approach lets them use watson ai to modernize without rebuilding, and bring all their partners and customers together in one place. that's why businesses from retail to banking

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it was a block buster quarter for zoom the company reporting sales and profit well above what the street was expecting and the company gave some strong 4th quarter guidance as well, as people continue to work and learn from home. but costs are rising and that eats into the gross margins. that contributed to a big drop in shares after the bell this morning. the stock is down by 7.6%. joining us is zoom cfo, kelly steckelberg, and thanks for being with us this morning >> hi, good morning. >> good morning. obviously you had great numbers across the board when you look at things like revenue and adjusted earnings per share, but it was the gross margin that analysts have been kind of pointing to and saying they are concerned about. i think the number dropped to 66.7%, versus the 72% that the analysts consensus estimate was, and it was below the 80% you all

were averaging before the pandemic i think the big issue is there are a lot of people who are using zoom, but a lot of people who are free loaders, globing on to the service and you have to provide service for all the people who aren't even paying. how do you lahandle that, how d you deal with it >> during the pandemic, we felt strongly about doing everything we can to keep people connected and 125,000 k through 12 institutions around the globe that are using zoom for free, and we did see an increase in usage in september as, you know, millions of students and teachers went back to school virtually. we also are happy to provide our service for free we do have many free hosts as you indicated. we also do things like on thanksgiving we turned off the 40 minute limit to allow families everywhere to stay connected, and yes, there are costs associated with that, but we absolutely believe it's the right thing to do and for the long-term, minimizing

obstruction we're feeling during this pandemic is our goal. >> you did mention last night on the call that you're expecting the gross margin to be reflective of what it was in the third quarter, at least in the early part of next year. when do you think you can improve on that gross margin and get it maybe back to levels you have seen in the past. >> the gross margin is a combination of free users and we are absolutely committed to continuing supporting schools, and for users during this pe pandemic, which, you know, is difficult to predict, obviously, and then the other aspect of the impact to gross margin is due to our increased usage of public cloud providers. so historically, we ran most of our traffic through our own servers and co-located data centers, and we have had to increase this capacity very quickly, and to do that, we have partnered with some great, great public cloud providers which comes at a little different level of cost, and so we are working on building out our own

data infrastructure, and that's a multiyear product, and everybody should expect to see these gross margin levels continue for the foreseeable future >> kelly, i know you had some big new customers that you signed and got additional services that you're providing to, like, peloton, andpeloton, n the quarter. those paying the biggest bucks have been monopolized to a big extent by both cisco and microsoft. how do you go after the big ticket, big customers who would be willing to pay a lot of money for your services? >> you know, the competitive advantage we see for zoom is the ease of use and the reliability of our platform. and we hear from our users and customers every day that that's what attracts them as we're delivering to them and we have our -- we're very privileged to have actually some of the fortune ten names in our customer base. and we continue to see customers like that coming to us because

of the value they see, not only in meeting our platform, but we were super excited for rakuten and peloton extended their relationship with zoom by buying zoom phone so we're very excited about the prospects ahead and continue to make perfect grrogress across al segments of our business >> kelly, can you speak about how you think this is a b to b enterprise and service instead of b to c service, considering the number of people at thanksgiving using the product and how you plan to potentially monetize them in the future? there is a lot of investors out there that think you can be overlaying any commerce platform effectively on top of your own platform, such that if you wanted to get gym instruction, you could do that commerce right on the platform, there is questions about premium tier products for virtual conferences for enterprises. there is questions about using it for broadcast, cnbc, so many

network use it for broadcast, but there is productizing elements that need to be innovated to actually make it work and there is clearly a demand out there and potentially businesses that would pay for that but at the moment, it seems that most of the focus is either on the classic enterprise or just building out the continued infrastructure to support what you have >> yeah, it has been really exciting during this pandemic to see all the many creative ways thatcustomers and individuals are using our platform and as you mentioned, we have seen a significant growth in the customer base, fewer than ten employees, 20% of our revenue was coming from the segment of customers and we announced last night it is up to 38% of our revenue. we're excited, we announced on zoom which is a platform for hosting events ranging from lessons to concerts and it is going to be a great way to start to bring these small businesses,

connect them more seamlessly with their customer base, and also to host, as you indicated, enterprise events. we're really excited about that. and, yes, we are seeing things like people using it for broadcast, all the way for meetings, to lessons to keeping families connected that's been really exciting to see how everybody has embraced that. >> kelly have you been surprised by the stock reaction? i know it is not something you can control, but the stock up 7.5%, even though you put up better than expected numbers on most metrics. >> we all hope like everyone does that we have a vaccine at soon as possible to minimize the disruption we're all feeling from this pandemic and i think that is what -- when there is new vaccine, we see that reflected in the stock. and we are committed to continuing to innovating and providing the best platform for all of our customers and potential prospects out there from enterprises, to consumers and we believe the remote work trends that started prepandemic are going to continue in a post

covid era that we're all hoping for to be here soon. and zoom is here to support people working from wherever they choose, and as we move to a more hybrid approach, we'll be there to support that. >> kelly, thank you very much. good to see you. >> great thanks for having me >> thanks. andrew >> okay. coming up, thanks, becky on the other side of this, jim cramer's first take on what december holds for the markets stay tuned we're back in a moment america's been waiting for. verizon 5g is next level. unlimited plans fit everyone in your family starting at just $35, with 5g included at no extra cost. plus, you'll get the entertainment and gaming the whole family will love. 100% obsessed with "the mandalorian."

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get to cnbc headquarters, jim cramer joins us. we were talking zoom, jim, and the cfo made the point that when there is vaccine news, things happen to zoom i don't think we mentioned it today. i wanted to mention to you, moderna, i asked to bring it up, i asked about three or four people i don't know if you -- i'm sure you noticed it, 173 this morning. so up another 21 points. it is going to be a $70 billion company today. that can't be just on this

vaccine. i don't know how you would make enough money to justify that it must be on the maessenger rna platform, right? >> you talked about how it is different from everything else and maybe far more uses. before this came up, i remember i interviewed moderna, 19, 20, people don't care for it and it looks like it is just a winning formula to be able to get at illnesses, which is incredible maybe they have more doses than we realize >> yeah. maybe. we had someone on talking about making it more quickly and optimizing production and it should be easier than some other vaccines unbelievable that, you know, and i mentioned yesterday, he got hammered for selling at 70 he should get hammered >> i got to give them credit this is it this program, warp speed, is brilliant. it is being done so well

doesn't get any credit it is pretty amazing >> very good thanks, jim. we'll see you in a couple of minutes. over to you, beck. >> okay. thanks, joe. dom chu is standing by with a look at the morning's biggest stock movers. >> american consumer today, we're going to talk about them in some way or shape of form with these three stocks. paypal up 2%, 60,000 shares of volume this is the company behind, of course, venmo and paypal platforms, target price hike to 290 bucks at mizuho. they like bitcoin. those shares up decently premarket. next up what is happening with shares of fedex, 1.5 gains, 20,000 shares of volume, shipping cargo company gets upgraded to overweight from equal weight by analysts at barclays targ to tet to 360, was 240 they like the better margin outlooks there we'll end here on shares of trip adviser. up 2.5%. 10,000 shares of volume, online travel bookings review site gets

initiated with outperform rating back to you. >> thank you, dom. good to see you. folks, that does it for us today. we're going to take a quick last look dow has been up, first day of december, and even after the spectacular month of november, you're going to see some big gains in the futures this morning, indicated up 351 now for the dow. joe and andrew, see you back here tomorrow. join all of us right now, time for "squawk on the street." good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber it is the first day of december. and we're back in rally mode with a slate full of news today. mnuchin, powell, senate banching, president-elect rolls out his economic team, zoom, shopify, neo, tesla. the road map begins with the risk to th