good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures are weak for the second day in a row stimulus talks appear to have stalled on monday. but the news is all about the vaccine as the uk jabs its first patients and we pour through the fda new report on pfizer's data. our road map begins with the covid cavalry. the uk begins vaccinations, this new fda document shows that pfizer's covid vaccine data did not raise safety concerns. >> plus, tesla's $5 billion offering

it is the third this year. seeking to capitalize -- well, it has a $600 billion market value, so really why not and the, quote, worst streaming service, why direct to producer christopher nolan is criticizin warner media and hbomax platform some unkind words, carl. >> yeah, that was spicy. we'll get to that, guys. let's start with the fda report on the pfizer data, which they're going to look at as they meet this week it is one thing to hear it from pfizer, but some of the charts are truly remarkable as the curve bends really after one dose >> yeah, this was big news and i know that dr. gottlieb retweeted that graph, which showed you remarkable, bring it on kind of results that make me feel, again, that we are going to be in a situation where things are going to change rather dramatically in 2021 i think people are going to have

to start getting ready and realize this market has been going up because of some people recognizing that maybe things are well ahead i got an article in my hands from green man out of britain this says there is a vaccine glut in the advanced economies a vaccine glut wouldn't that be good news >> that would be good news we would hope that, well, first of all, that as many people as possible can take it as quickly as possible. now, we are also dealing with the news, that the u.s. government did not take an option on pfizer's vaccine to as many doses as it might have had available. scott gottlieb, of course, who we rely on so often, the story itself, but scott gottlieb, who is the board member of pfizer and somebody that we have relied on here at cnbc throughout this pandemic, for day in and day out good advice, spoke very candidly and sometimes a board member would take the fifth they say i'm not management, he did not do that, he went right at it and said, yeah, there was

an option given to the u.s. government, it didn't take it. take a listen. >> pfizer did offer an additional allotment coming out of that plant, basically the second quarter allotment to the united states government, multiple times as recently as after the interim data came out, we knew this vaccine looked to be effective i think that the government made a bet that they are going to option or advance purchase vaccines from multiple manufacturers, they have agreements now with five or six manufacturers for about 100 million doses, each manufacturer they want to spread the bets >> spread the bets, jim, as opposed to potentially -- it was an option. that's what i don't understand it wasn't like you had to actually exercise that option and agree to it. just the option, why not take it why not have as much available as possible given, of course, he said after the interim, so you already knew there was a decent chance this thing would be effective. >> given the 7, 8, 9, 10 policymakers in the

administration, wouldn't you like to know, david, who was on the other side of that who said, you know what, we'll take a pass on that fantastic opportunity? because once again, what i find is that when we see something like this, we really don't know who is behind it was it the fda, i don't think it was dr. fauci. >> i don't know who the decision-making was. we'll have 100 million doses that is 50 million, remember, you need to, that is still 50 million people, by, what, first quarter, that's the production, that gets them through june. moderna, i don't know where we stand on that, in terms of what we optioned and what we haven't from the moderna vaccine. >> it was rather startling to hear dr. gottlieb not mince words. was the president offended they weren't part of warped speed was there indig nance, something about pfizer's intransigence in the sense they said, listen, we can do it in our own way one thing i'm confident is we won't know the answers because

it is time really to try to overturn the pennsylvania and the jo. ia situatigeorgia situation,t >> we have one electoral -- >> when will it end? >> yeah, though, today is one deadline on the electoral college. appointment of electors. we'll get the final deadline on theclearly running out to your point about broader options. j&j on the tape, could have late stage trial results earlier than expected. >> that's incredible >> january 21 for results. >> i just got recruited to are that trial last week they must have many more people in this trial than i thought this is really huge because j&j and i think we'll find out is this is the vaccine glut i think they're ready with hundreds of millions, because they had emerging bio doing -- making vaccines. this is one of those where you heard about j&j saying, we're going to make them, and if they work, we're going to flood the zone we're not going to wait for them

to be approved, we want to make them i spoke with the chief scientist of j&j, who is working on this, i think he made pretty clear i didn't know what i was talking about, but that's okay, he's a chief scientist an i have wait ed studiously, but one thing is j&j thinks they have the holy grail and i have yet to make a lot of money betting against gorsky and james >> we're going to wait the data there as you say it may be coming within a month, a month and a half, we may get it i know people in that trial, you do they're dioing a good job recruiting >> they are efficient. really amazing how good. >> the fact that the virus is spreading and raging throughout the country may also encourage some people to say, why not? i got a 50/50 chance of getting a vaccine that may end up being effe effective, why wouldn't i want to take it now, if possible.

half get placebo, right, jim, half don't >> right you may get that i think that what some people are concerned about, wait a second, if pfizer is able to produce and you don't -- you don't know whether the other placebo or the real deal -- >> right you're not going to be able to get the other one. >> you're held. >> that's not good >> no. >> what is good is this idea we're going to have a number of vaccines to choose from. perhaps the administration choosing not to exercise that option on more doses of pfizer will not prove to have been a big mistake, because there will be a lot more vaccines available when needed, remember, pfizer will certainly get us and moderna at some point will get us through the first quarter and you would think all the hospital personnel, all the front -- many of the front line people, whether you get to teachers and higher risk people as well, i don't know >> look, i think it is for real. i think you're going to get the 22 million responders, and i think that one of the reasons, carl, we now know that the

market is very prescient, i think the market has been going up because we're starting to realize that this may be for all intents and purposes in america, not the rest of the world, over in the second quarter of 2021. over >> well, that is -- that is a big piece of goldman's call today. jan hatzius upping q4 gdp track. the title of the report is cavalry coming we're going to talk to david costin later on in the hour. the general point is this is all coming together, not just in the u.s., also in europe, but it is coming together faster than they thought and that means you're going to see some benefit before the end of the year. >> you got to go by the airline stocks, the cruise lines are going up you can go back to the american expresses of the world, you can say, david, a lot of these have already moved. but there are plenty of people who did not expect this all to come together so quickly the vaccine glut is the story of

2021 >> let's hope. >> well, i'm just saying that. >> okay. >> you're -- >> you explained why the administration may not have wanted the pfizer. i think that was a good defense. >> what was a good defense >> you said the administration may not have felt they needed the pfizer. >> right as got scott leak sascott gottl- >> i thought that was your view. >> no. >> i thought you were saying let me explain what the administration did. >> i have no idea what they're doing there, nor have i for quite some time. >> a new position judging from maybe you're thinking that pennsylvania is overturned or georgia, and want to get on board that band waggen >> i'm not on that bandwagon i go to carl to keep track of the court cases. 1 for 49, i forget the numbers >> we're closing in on 50, that's for sure. >> scott wapner tweeted last night, i was watching -- >> that's that's nnot a good re. almost as bad as the jets.

>> they don't want to tank they don't get a -- the president does not get a first round pick. >> the arguments they have been making, it feels like an all-out blitz on the last play of the game >> i'm going to go to carl rather than your endless attacks and defenses >> guys, let's talk more about what happened in the uk today. margaret keenan, 90 years old, first patient to receive an authorized vaccine for covid let's get to london and julianna tattlebaum. >> today marks a milestone here in the united kingdom. we have officially begun the rollout of the pfizer biontech vaccine. this is a massive national vaccination program. and i'm standing in front of guys hospital in central london. the vaccination being offered at over 50 hospital hubs around the country. and eventually made available in other settings, like vaccination centers which are being set up as well as primary care settings and care homes

those who are going to be offered the vaccine first consist of those people who are over 80 years old, front line healthcare workers and a long-term care homeworkers and as i mentioned, eventually they helped to offer this vaccine directly in the long-term care homes this morning the first two people to be offered the vaccine and take it, they were margaret keenan, 90-year-old british woman, and william shakespeare, an 81-year-old british man so, a massive day here in the united kingdom when it comes to this vaccine rollout carl >> julianna, everybody taking note of the william shakespeare and hopefully pictures like that state side next week >> jim >> what happened, carl the tyranny could be over. can you imagine, david, can you imagine what it would be like to go over and shake your hand again? or at least get within your force field. >> i want a hug. i want a good old-fashioned

serious -- >> i'll look at your arms, if you have the jab, i'll hug you. >> i want it, all right. it has been too long. >> it has been too long. >> too long, my friend. >> i remember the polio vaccine and my parents said, okay, you can go out go outside it is okay national imperative, president eisenhower didn't want anybody else in the country to get polio. you just got -- wasn't like you had a lot of choice. there weren't a lot of anti-vaxxers saying bring on the polio. that didn't happen you saw the president of the united states, who had polio, and you didn't want it i think if this were to go on, if this -- if this illness were to go on three, four years, i think a lot of the anti-vaxxers would change their minds >> again, i come back to the idea when we win this pandemic began and we all looked at how long it takes to develop a vaccine, thought it would be amazing if you could shrink it down to two years and here we are, nine months later, it is nothing short of a miracle, carl. >> not a single -- what analyst,

what strategist came on and said, we'll beat this thing by year end which one? let me know. >> not many. not many, jim. that was part of goldman's point. nobody really truly believed and that's why some of the expectations they think are going to be coming up. we'll talk more about that later on today we'll take a break got to talk some tesla third capital raise of the year. and some story lines that dove tail with goldman on that. we'll get to stitch fix, toll brothers, uber, as david said, at&t, this fight with t see rurwknolan when "squa onhetrt"etns i felt like... ...i was just fighting an uphill battle in my career. so when i heard about the applied digital skills courses,

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tesla down free market the company plans to spend $5 billion in stock it is the third capital raise of the year after $5 billion in september, $2 billion in february jim, for a company with $14 billion in cash, and led by goldman, this round, which, of course, took it to buy six days ago. >> i think that elon musk is brilliant. i think he even understands the mentality of the buyers. particularly some younger buyers who frankly just have no price that they won't pay. david, we discussed the other day that the way you got your stock up is like carnival, you do offerings, you dilute, you do bond deals, they're not -- they're going to say, equity offering, well, this is great. they got $5 billion more, they can build the truck facility,

they can build berlin and expand in china david, the younger generation is not cynical. they think this is elon musk, building a -- the biggest car company in the world. >> it has to be a lot more than the biggest car company in the world, $600 billion market value. >> why is that >> why because it is hard to imagine it could grow into valuation. >> that's you. you're just -- >> if it is just cars, it has to be batteries, solar, autonomous, a lot of things. >> they believe in this man. >> clearly he's a unique individual, i'll recognize that also one of the wealthiest men on the planet. with this move of 667% in the stock this year. you can see what it has done i remember, guys, it was a $50 billion market value, we thought was quite high and if they had gone out and sold 2 billion or 3 billion, this would have been significant dilution now they haven't sold it yet,

but they can when they want and it is less than 1% of the company. it is truly amazing. they are, as carl pointed out, just racking up huge cash pile, which i don't know what they're going to use for, but i guess it gives them a lot of optionality. >> it is entirely possible they're using it for things that we don't know that he has planned. that's the greatness of this man. that's why this younger generation is willing to give him the money. they're saying, look, he's steve jobs, when knows what he comes up with next i want a share of it. >> no. i know it is extraordinary. >> and who are they to -- who are we to criticize, carl -- who are we to criticize their belief in this man? >> yeah >> speak for yourself, pterodactyl. >> you and i -- >> i'm a -- >> you're a velociraptor you're newman in the original movie. >> from "seinfeld".

>> they are going to -- they are going to double capex in the next two years to your point about new factories. though some on twitter this morning pointed out that in 2012, musk did say tesla does not need to ever raise another funding round. but things change. >> well, look, i don't think he ever thought that there would be investors who have suspended short-term judgment, going for longer term judgment and, by the way, let's remember -- let's salute this man. he's building a factory in this single most important part of the world, when it comes to autos, which is germany, and i think you're going to need every penny to make it so you have -- you got the best cars in the world. i think to do the pickup truck, david, is going to cost a lot of money. you're up against some very serious companies when it comes to pickups and that's where the money is >> well, he's got plenty of money. not to mention, again, an enormous market cap. but it is not just -- it is not just tesla here it gets a little more

speculative we talk about this new generation of investors, who like all things ev related quantum scape, the spac ev deals. >> look at the moves in quantum scape. that's this morning. that's what we're looking for. >> i know. nikola, not going to sell. remember he owns 92 million shares. >> do you think 30% owner will not have any influence on -- >> i think he would have a lot of -- >> that's the point. >> there is lords town, another one that was a spac, began trading october 26th it has a truck called the endurance, prototype available in january, beginning to ship by the end of 2021. we can go on and on. >> have you seen the fister? >> i have not. >> it is gorgeous. >> bill mcdermott has one and says you can see the ocean, it is gorgeous. >> i would like to see the ocean from my bedroom window if i could but i can't. >> you can zoom in. >> maybe put a big screen up a zoom screen of the ocean

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welcome back time for a mad dash as we count down to the opening bell, 7 minutes from now toll brothers reported after the bell, i believe. >> this is one of those where they net contract value up 63%, can't beat that year over year but the analysts are reducing estimates for 2021, based on the guidance forecast of homes going down in price.

now, look, this is a conservative company, and they tend to do this. but, david, you know that housing has been one of the strengths of the economy >> red hot and prices manufactured up dramatically many regions and areas of the country. >> i thought this was a -- i just bring it to attention because i keep hearing about the exodus out of the urban exodus because of the vaccine then you keep wondering, when will people say, you know what, i don't have to leave anymore. we're getting vaccinated i'm not going to sell my place down 20% and buy an expensive house. >> i think that already is -- we hit that point. >> that's why i think -- >> is >> it doesn't mean there isn't still competition. we talk so often about the ability to now work remotely in a way that is not going to stigmatize your employer or yourself and that has changed people's thoughts if they were not enamored of the urban environment. >> truly we have to watch this

because the home story is part of the fed keeping rates down. and it is 10% of the economy is home, people say it punches above its weight but i would like to think that toll is just being conservative, i still very much believe in the housing market and still not back to where it could be. but it is worth it because to watch because toll is a very good company >> all right, well, stock is going to open down, we have every stock opening a few minutes from now stay with us o"sawonhe re."n quk t

shares of stitch fix this morning may well open with a five handle as it is trading 5030 premarket surprise profit, revenue ahead, high hi hires a new cfo from amazon. >> i've always been a big fan of katrina lake i visited her at stitch fix. a lot of people felt, carl, there is a 37% short position that who needs stitch fix if you're at home and not dressing up anymore to go to work the answer is millions of

people and this was a phenomenon quarter. what it does say is that people like the process of trying to figure out what they want to wear david, they -- a lot of people are just trying to say, you know what, maybe i need athleisure, maybe get away with it, can i get away with it it is a remarkable quarter because people bet against her -- why it is ail gor ritalgorithmic, is inexpensive, it is a terrific way to figure out if you have no taste whatsoever or don't have time, and you want to wear expensive clothes, use stitch fix. >> no taste. >> great for people that have no taste. i'm not talking about the in taste you get from covid my daughter had no taste for three weeks with covid no taste this is no taste meaning you -- >> you wear horribly looking clothes? >> yes. >> you don't know what you're doing? >> yes >> like the brown shoes you wear with the rest of the outfit,

stitch fix would not find that acceptable and you have to go -- >> are you talking about my shoes right now? >> no, using a wider -- >> i've seen the black shoes you got on, from 1987. >> i've been wearing the same reeboks since 1987. >> you have. >> carl, back to you >> let's get the opening bell, guys take a look at breadth on the s&p there, we're coming off a record close on the nasdaq that's 48 record closes of the year that's a record close on the nasdaq, 20% of the time, all year >> semiconductor stocks have been leaders and they have been amazing any bit of good news for one semiconductor is immediately translated to other semiconductors and i find this -- this is a fabulous leadership group. semiconductors are longer just in pcs it looks like the apple semiconductor, people really raving about it for the new mac.

i find, you know, you'll get a corriveau positive note today, a cell phone semi, not a tequila, and it had some positive notes and that's going to reverberate throughout and we also get another group, carl, a leader, cybersecurity, which you need when you move to the home office and that is just the endless move in palo alto going up it is crowd strike going kupa, procure goods that is doing incredibly well, and that is driving a whole other group. the nasdaq is up gaubecause they keep reporting great numbers and people buy the semis and it is not even the robinhood types, it is everybody. >> you mentioned semis, jim, i wanted to mention on semi. i don't know if you saw that. >> i saw a note. >> they have a new ceo

and he was prior the ceo of cyprus before they sold to infinnian and they created a lot of value. >> i had that guy on. >> on semi is up by 5% this was a favorite of jess smith, if you remember, he came on and talked about on semi as one of his larger positions at his firm >> i think people say that on semi is being positioned for sale, if that man is there i think they should say it is being positioned to be better run. >> you think so? >> yeah. >> as i said, starboard, jeff smith, large holder there. >> starboard is a fantastic investor >> they do say they have a good call on -- >> they do mellanox was another one they were involved with, prior to -- >> and nvidia. >> right. >> and marvel technology. >> marvel, that's right. exactly. thank you. so just wanted to point that out, again we got a few ceo changes

i think evergy, when you see a new ceo, you don't get a sale, because new ceos, the board is making a commitment to them in some way occasionally we see it, but rarely that suddenly a sales process will pop up. >> i'm glad you brought item, cyprus had really languished he fixed cyprus and someone bought it as opposed to shopping it as much he just created a very good internet of things semiconductor company. and, carl, that's what people want they want internet of things >> doesn't sound like the trade out of tech into cyclicals that this vaccine is really going to work around the world is going to be as neat as some had predicted. >> in, lo no, look, i think when i look at what is going up every day,

other than snowflake, rather amazing, i do see the airlines going up but for the most part, what i see are companies that are involved with digital. the digitizing move, which, you know, satya nadella brought it to our attention we see it over and over again, david, what are you hearing about the salesforce deal? this is what is at the crux of the axis being built to check the microsoft adobe group. >> right well, you know, there is two different -- as there always are, the argument that says salesforce has been an incredibly inquisitive company, they are moving so quickly, there is some questions, are they truly integrating everything, and, again, mr. benioff already -- i got to say these things, you know, whatever, it is fine -- >> what did you just say >> he loves you. >> did he say he doesn't like you? >> yeah. >> he likes you. >> you know he doesn't. >> carl, it is so important when people like david. you now how he's sensitive.

>> yeah, well, the only time somebody -- >> it is key. >> i turned to somebody and asked him a question, and he didn't even -- he didn't even actually acknowledge i was in the room. >> i asked andy grove a question, and -- >> did he ignore you >> no, he turned around. he didn't ignore me, he turned around like i didn't exist. >> jim, on salesforce and the other thing is, hey, it is salesforce they have done nothing wrong over a long period of time he is relentless and they are going to take it to microsoft and this is going to be a true competitive battle and something we need to watch very closely. >> well, satya nadella is not -- he's a powerful foe. remember, carl, they want -- salesforce, this -- the split came when marc bought -- thought he bought linkedin, a fabulous acquisition, by the way. but microsoft came in and bought it, and ever since then, i don't want to say there is bad blood, there is no blood. i think that slack is really important to go against microsoft and slack had a good quarter, no one is talking about

it. >> you have. >> well, thank you thank you for listening. >> salesforce, of course, one of the many companies that are going to be either having an investor meeting or presenting this week. i bring that up, guys, because stankey is speaking at ubs david has more on warner but, jim, schaerf said he will roll out more reporting met metrics in january, another restructuring charge in q4. >> i think that may be an opportunity because schaerf is making many, many right moves. it is also -- it is kind of broken free of the general group, though general group has been pretty good, but i think charlie schaerf's imprint is starting to be felt. if bank of new york wasn't that much, but we know, david, he built the powerhouse that was visa >> current cash flow there is incredible. >> where visa >> yes >> visa is a huge company that never gets talked about. >> i know. we occasionally remark on its

enormous size and market cap, larger than most of the big banks. >> but pay pal. >> if not all of them at this point. >> paypal also. >> big banks, it was plastic, and charlie schaerf once told me, what is -- is it so hard to pull -- >> it is 452 billion >> visa? >> yeah. >> charlie schaerf is another guy who is a tough guy i think that what is going to happen, carl, i think paypal could give you a run for the money. he said, let me ask you, how long does it take to take a piece of plastic out of your wallet okay okay some of these guys put their force of will -- not everybody likes me, okay charlie put the gun to my head immediately when i met him and i said, take the gun away from my head. >> okay. and did he >> yeah, ultimately i became -- >> you guys are collegial. >> yes, we are >> yeah. >> my wife says he's an associate. i once said he's a friend. she said, no, he's an associate.

>> well, he still has many challenges at wells fargo, but he's got to be happy that the company's market cap is about 119 billion as opposed to 89, which i think it was at its lows or 90 billion range, which was truly stunning, though we see it down how some of the shows do mystery charts, they don't put the name on it. >> i always get them right and tweet them. >> i would think -- >> i get them right 100% of the time. >> you would be the one person. >> brian sullivan. >> i wish we could do it with the next one i'll have the ceo on later, this morning, they acquired the rest of big river steel >> letter x. >> letter x. have you seen letter x the last three months >> you're bigger than u.s. steel yourself >> there it is 50.1%. they announced this deal we had ceo david bird on at that point, we'll bring him back to finish that conversation up. take a look at this stock. last three months. do we have it?

>> well -- >> there is a year it is up 136%. >> down a lot, david. >> what happened >> well, it -- >> it survived >> did it move into ev did it -- did we not see the announcement that they're milwaukeeing inmaking a battery. 140%. >> it didn't go under. people felt it would only be w nucore that was left some say this is president trump's anti-dumping philosophy. ask him if the president saved u.s. steel. >> u.s. steel mills closed their books for 2020 i'm reading one piece on that here the books will reopen for 2021 at $800 ton base price, that's pretty good, my understanding. >> nucore is even better >> i got it. the speculation continues on a lot of different names beginning at 4:00 a.m. in the morning, real volume, you're up at that time, i'm up at --

>> 3:15 now. >> i try not to be if you look at the names we talk about so often, laser, palantir, there is bill foley from yesterday came on, look at that. look at these moves. and also this -- >> people are making huge amounts of money young people are making huge amounts of money. >> real volume real volume. millions of shares. >> you want to keep young people in their index fund chains, they're not listening. they're not listening. they're not listening. >> they're all up dramatically this morning. >> i've been urging them to take a little -- >> you don't think that's a reflection of an additional speculation in this market, that perhaps will be met with, let's say, a less than welcome reception at some point down the road >> you know, david, hydrogen fuel cells are the future. they are these people take a longer term view i urged people to take profits it doesn't matter. i told them to buy a cashmere

sweater, just go they're not listening. >> right that's a cross section there palantir is -- >> lazr and velodyne, technology for autonomous carl, back to you. >> hanging on to 30k by 50 points let's get to bob pisani. good morning, bob. >> good morning, carl. happy tuesday, everybody rally a little bit of trouble, running out of steam here. i don't think it is big trouble, but some questions about how much more oomph we have got here, even if we get a stimulus deal let's look at the sectors. the big moves we saw in november and the first part of december were in that reopening story primarily around the bank stocks, big moves on the upside, energy stocks. that's sort of flattish these days but it is a little better than maybe some people had hoped for. industrials slightly on the upside one big winner has been semiconductors flattish today

as jim mentioned, we were doing this yesterday, most of the new high list yesterday was in the semiconductor area so keep an eye on all of that, and whether or not that bank and energy has much more room to go. megacap has been flattish now for a good part of the month i say google has probably done better than all of them. flattish there not a lot of leadership in the last few days. the question is how much more oomph is there in the market remember where we're at here we're at historic highs here and very pricey situation. so the vaccine distribution here, pfizer vaccine, somewhat limited, that may be an issue overall. the stimulus is a little uncertain. brexit is uncertain. i saw the pound move in the last hour we may get news on brexit, which will be important for european valuations we talked about how high the valuations are, 22 times 2021 earnings estimates on the s&p 500, that's pricey, folks. a at these prices, i'm concerned

about the valuation. we had this reopening enthusiasm all the work from home stocks sort of underperformed towards the end of november. this is happening into december. here is your work from home stuff, the krogers, home depot, keep an eye on home depot, that's the big stock in the consumer discretionary group, that's looking very toppy recently sherwin williams, target, all down this is for december what is a little more concerning is the industrials, they had a great, great rally david was talking about the steel stocks too they also sort of run out of steam. that's a little more disconcerting given that i said that's part of the reopening story, cummins, rockwell, some other names out there, eaton, down for not the stu the month this is what we call the high beta stuff, the oil names, you know, like occidental, the cruise lines, the airlines these are stocks, high beta names that they move on whether the markets move or not.

the market moves 1%, they move 2% they jump around an awful lot. so far they have been holding up but you kind of want a much broader rally on that. that's going to be the issue right now. we don't want just the high bet why stock stocks moving around, you want broad participation in the market we had it up until a few days ago starting to stall out now. i think the big issue for the market now is we get the stimulus, it is a trillion pick a number around there what does the market do with that it is prepared to do very, very little on that stimulus news keep an eye on the brexit story, guys something going on there right now. >> yeah, two stories, bob that have implications for bonds and currencies to rick santelli this morning. hey, rick. >> good morning, carl. yes, the treasury complex yields are holding up rather well on the long dated treasuries like 10s and 30s. intraday of 10, once again, we have failed from kind of the mid to high 90s as we are coming

down one of the reasons we're coming down today in yield, outside of the obvious which is, of course, that the equities aren't sizzling in greece, not yet, is, well, technical. look at two-day of 10s yesterday's yield low was around 92 basis points. we went through that level, we accelerated. and if you open the chart up to november 1st, you can clearly see we have this double area of resistance from about the second week in november and, of course, last week with our 96 plus high yield closes, so you know where you're offsides if we start to trade above 1% look for a lot of various position changing that should give us some more momentum as the downside of price and the upside in yield. if we look at the dollar index, it is hovering at 31-month low as you see on this chart that starts back in the spring of 2018. and finally if we start to zero in on various other currencies, the dollar versus the chinese yuan, it is hovering at 29-month

lows pretty much a lateral move today versus yesterday and we have been talking about the pound. bob talked about the pound there is good reason, of course, the last day of the year we're going to have our brexit the issues on the table now are trade, trying to get a trade agreement together and the pound versus the dollar had a reversal yesterday. if you take a step back, we're basically hovering at the best levels, pound benefit against the greenback since may of 2018. one of the other things, hedging super expensive. check out the cost of option volatility on the put side carl, jim, david, back to you. >> all right, rick, thank you very much. rick santelli. goldman's chief u.s. equity strategist david kostin as goldman ups their q4 gdp tracking to plus 5 we'll talk to david about that and the markets later on today don't go anywhere. at fidelity, you get personalized wealth planning

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of warner brother films like "batman begins" and more recently "tenant" is slamming the studio for releasing its 2021 film slate theatrically an on the streaming service simultaneously n a statement to the hollywood reporter, he holiy reporter it was ripped as "the worst streaming service. warner brothers had an incredible machine for getting a filmmaker's work out everywhere and they are dismantling it as we speak, they don't understand what they're lose. their decision makes no economic sense and the casual wall street investor can see the difference between disruption and distunks. jim, yesterday we were speaking somewhat positively referencing a city note in your "mad dash" an at&t. i came up to the note when we the go got the bombshell last week $1.8 billion is the five-year

average in terms of the box office every year, number two to disney and he went on to say the first to blow up the model by skipping that window the pay one is new the hbo max release it no longer generates cash and shifts content between the segments and they expect when they look at it that the 2.4 billion dollars worth of ebit generated in '19 is going to take a big hit that continues on it the question as spanky speaks today at a virtual conference. >> i thought that was amazing, and you found it yesterday i was coming in hot thinking this may be a way to create value and the downside was not really -- >> the other question, carl, is the creators themselves, those who direct and/or write and all the other parts of the chain that typically, carl, got compensated later as well. they've got to figure out a new way to compensate them potentially, it would seem and christopher nolan's voice is not an insignificant one to say this is no good

>> the back book is a big deal nolan is as you know, david, a little eccentric in hollywood, makes a certain type of movie and insistent upon it being seen in a certain way a lot of other directors might be as prickly. stanky says we're leaning in to where things are going and hours of engagement on hbo max are up 36% in 30 days, a lot of that because of the undoing by all accounts was a success although not a theatrical event, so it's going to get spicy >> yes, i've been watching "the flight attendant" and enjoying that >> i was tempted, too. >> the opening sequence i watch it every time, one of the best opening consequences, love the music, carl. >> there's nothing like "queen's camp." tell the truth it was the best. check mate >> also good by the way, be sure to stay tuned for an exclusive with

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the major indices are slightly weak this morning a slightly opening trade in place with energy and materials higher tech is weak there's a look at the nasdaq, 100 laggards and tesla announces its third capital raise of the year more "squawk on the street" ntueafr brk. don't go away.

let's get to jim and "stop trading. >> one of my favorite cfos, christine mccarthy, started in 2000 as treasurer, became cfo in 2015, accepted an extension which is very important, she handles the conference call and raised capital when people were worried about disney during the dark days. she will stay on to help oversee the transition to pivot to 2022. we'll hear that when disney talks on thursday, and it's very, very good news, because it's a steady hand, who has stayed through the iger transition and i remain convinced that disney is one of the best stocks to own >> yep, i think we got the street high is still 175, jim. it's going to be fascinating to get more granularity on streaming efforts. what's tonight >> okay, tonight we have chewy,

a popular favorite among all of us who own pets, and then mark schiller, this is the new hane, natural and organic and much slimmed down and much more lucrative, i think stay tuned chewy, david >> chewy >> anybody -- look, i've got pictures that chewy did of our dogs, and chewy's near and dear to me. we'll have them on tonight >> i remember when they came in. that's great we'll see you tonight, jim "mad money" with jim cramer 6:00 p.m. eastern time. good tuesday morning everybody welcome to "squawk on the street." i'm carl faber with carl quintanilla and we're keeping a close eye on the fda briefing on the pfizer sack convenient, the uk vaccinating their first patients and watch for any stimulus headlines >> the vaccine optimism is exactly where our road map starts with the fda releasing data on its analysis of the

covid-19 vaccine of pfizer and beontech u.s. steel is completing an acquisition of big river we'll talk about the deal ayn that has stock is done over the last three months with ceo david birth. as covid cases continue to surge, how business also rely on live audiences for 2021. we'll talk with the ceo of cirque du soleil when he sees a return of live entertainment first to the markets, goldman sachs today upping its forecast for q4 gdp from three to five because of the impressive results of vaccine efforts so far this year david kostin is goldman's chief equity strategy. great to have you. thanks for being with us >> nice, carl, nice to see you >> the note today is literally titled "cavalry coming" and it's

a lot of it is centered around the vaccine, how much of that is being folded into your work this week >> it's a key part of the assumption of the macro research department at goldman and explains why our forecast for earnings next year is above consensus. the idea of the economy on average growing around 5.3% in 2021 consensus expectations around 3.8%, that translates into an earnings estimate that we have around $175 for next year, consensus 168. that leaves room for positive earnings revisions the valuation of the market 22 times is high on an absolute basis in terms of multiple forward earnings however, bind yields around 90 basis points so interest rates make the equity market seem more reasonably valued and there's money flow key story that cnbc likes to talk about a lot, but think

about the following, carl. you have around $1 trillion more money in money market mutual funds today than at the start of the year, before the pandemic. $1 trillion more, and cash is yielding zero. and so our forecast is that probably half or more than that will shift ultimately out of money market funds into other assets, probably a large amount of that equities, some in bonds as well but basically shipped out of an asset that's yielding zero basically earnings, valuation money flow lead us to a view the equity market's up at the end of next year around 16%, around 4,300 for the s&p. >> to your point about bond yields we got the ten-year below 90 basis points for the first time this month. of course, we're not that far into december, but is there any amount of vaccine optimism and recovery optimism that's going to lead you to revise your yield

forecast higher? >> i want to think about it in a couple of ways, from an expectation of inflation that would be a driver potentially of higher bond yields and we don't really see that as a key driver if you look at the building blocks of the measures of pce, personal consumption expenditures, about 25% of that is coming from health care, whether that's health care services or pharmaceutical medications, and the other probably 20% is coming from housing and housing related ras spects we're not seeing a lot of inflation in the areas that cause a major increase in bond yields my forecast for colleagues in interest rate strategy around 1.3% ten-year u.s. treasury yields by the end of 2021, a year from now. a modest increase but not dramatic as you know we talked before on

this program, it's the pace the speed by which interest rates back up that would be a concern. there's a magnitude that's obviously of interest and important, but it's really how fast that it occurs and of interest rates growing up gradually, the equity market can absorb that. >> david, it's morgan. good to see you. to dig into that a little bit more, you're talking about that inflation outlook from your perspective into next year none the ltheles theless, if we economic recovery, vaccines begin to become much more mainstream next year what does that mean for fed and more broadly central bank policy and all the liquidity in the market given the fact you have the 4,300 price target on s&p. >> so the idea of the average inflation targeting framework the federal reserve introduced would suggest that they're going to be on hold for at least the next several years, somewhere between three years and maybe as long as five years

assume, morgan, three years the policy rate staying unchanged. that is supportive of economic activity, the general this rust of the message from ian and ourselves in terms of the equity market forecast is reasonably optimistic the way you attack and invest in it is three ways, the cyclicals, not a surprise, the easier near-term beneficiaries and david and others talked about that, and the value, primarily in health care they're the cheapest those stocks have been in 30 years on a relative to the market, very attractively valued and we think about the historically they tend to underperform going into an election ultimately the election in terms of washington hasn't been revolv revolved, won't be resolved until the early part of january 5th and the runoff in georgia. ultimately we'd expect there to be a rally in the health care sector but ultimately this low

rate environment is supportive of growth. if you look at longer into 2021, so you think about cyclicals, value, and growth, there are three trajectories or ways to embrace or invest in this market >> david, it is david here i'd love to get your thoughts on the speculative pockets in this market that we're seeing, not across the board as you say. there's a lot of areas that you can argue are undervalued or fairly valued but there are quite a few companies coming public through spax that have gotten the attention of investors that are pre-revenue and it is somewhat reminiscent of the late '90s does that figure into your thinking at all in terms of the broader market >> it does david, i think i respond in a couple of ways first of all, you mentioned the word spac, which is really remarkable we've had more than 100 spacs completed since labor day.

$60 billion has been raised in the form of spacs this year, remarkable amount and a lot of that is needing to find acquisitions over the next couple years as you know, in the structure of the spac there is a certain amount of liquidity and demand for shares, one business, some cases private but they are indicating reflection of a measure of value. and then to the second part of your question, sort of implying or not implying but discussing the idea of super high valuations for some areas of the market well, that is true no question about it what the market's been rewarding in fact has been the companies that have been investing for growth we've seen that from a metrics perspective. there's definitely some areas of elevated valuations, among the software companies in particular but ultimately that's where companies are spending a lot of money so they are pre-revenue

now and over time expect in the scenario we have that the normalization of the economy will bring those companies benefiting i think there's a distinction, people always talk about working from home, return to office. the fact of the matter is some of those companies were benefiting from working from home, also we're on zoom now and i'm in the office. you're in the office as well, and so the idea is it's not as though there's either/or some businesses are likely to benefit, whether you're returning to home or returning to the office or staying at home >> finally, david, how much of a risk factor would the senate truly failing to reach a compromise on stimulus be, maybe not affecting large public companies, but more elongating the scarring of economic growth when it comes to small and medium sized businesses and labor recovery later in 2021

>> carl, i think you raise a very important question and a risk factor out there. we do worry about the idea of extended unemployment benefits, it would be desirable from a social policy perspective, some of the fiscal spending would be beneficial obviously there's a fluidity in what's happening in washington, d.c. but our assumption here is there will be some kind of a resolution or a deal somewhere maybe in the $700 billion range for example. if that was not to happen, it would be a near-term issue i think it's the issue of the same idea on the vaccine ultimately it's a medical crisis that we had for now, almost nine months here in the united states, 12 months from around the world and the idea of that eventually getting through this difficult winter period would still be spring is coming. so as ian indicated, the cavalry is coming which is optimistic on

not just the efficacy of the vaccine, but ultimately the distribution and the vaccination process. so the idea of washington, d.c., would search be helpful, if there was some fiscal support, but ultimately, the normalization of the economy is likely to lead the equity market higher >> all right, well, we're watching the tape for headlines on all those things, david it's great kicking off the hour with you, as always. thanks >> thanks. >> david kostin of goldman sachs. we'll dig into the vaccine headlines of the day more now. health authorities in the united kingdom have begun vaccinating the public against covid-19. the first shot came early this morning on what has been dubbed v-day to grandmother margaret keenan to turns 91 next week the white house hosts a covid vaccine summit aimed at educating the public about coronavirus vaccines but there will reportedly be two notable absences the ceos from pfizer and moderna, due to pending

emergency use authorization applications and pfizer releasing data with the fda on review of its covid-19 vaccine meg tirrell has been digging through what has been a substantial report and has the latest for us. meg? >> hey, morgan these were highly anticipated documents because it's the first time we're seeing the fda really weigh in with its own analysis of the pfizer beontech vaccine trial results. what we deemed before was the top line it worked 95% at preventing people from getting covid-19 we knew it generally appeared to be safe, though it does have some side effects, especially on the second dose that could make you feel pretty crummy the next day. now we are seeing the detailed data and how the fda is think about this ahead of the meeting thursday on safety, this is important, the fda is saying "the trial data suggests a favorable safety profile with no specific safety concerns identified that would preclude issuance of an emergency use authorization. now they are also laying out

which questions they will pose to this question of advisers on thursday, is it reasonable to believe the pfizer and biontech vaccine may be effective in preventing covid-19? do the known and potential benefits of the vaccine outweigh its known and potential risks and what studies should be conducted following the emergency use authorization to gain more information in different groups of people for example, groups could include younger children, pregnant and breastfeeding women, more trials just needed to understand the vaccine better one interesting graph here included in the briefing documents shows that the vaccine appears to provide protection two weeks after the first dose, so the orange line on this graph here is the rate of getting covid-19 among people on the placebo group that blue line is the rate of getting covid among people on the vaccine. you can see day 14, a clear split there, where people on the vaccine are protected, and that is after just one dose of this vaccine. of course, the fda is saying

there isn't enough data to support just giving one dose as the regimen. the trials were run in two doses but that pretty remarkable, guys what we'll see play out through this week the advisers discussing how the real world rollout of this vaccine will look two doses, 21 days apart, how long can you go around 21 days sort of what happens in the real world? and we will see the fda weigh in after these advisers vote on thursday to potentially get this vaccine out soon here in the u.s. as well guys >> meg, interesting and interesting data there on that one dose which i want to follow up with you at some point on as well meg tirrell, thank you as we head to break here, u.s. steel shares are higher this morning, and man, look what they've done over the last few months 140% gain. 148% actually, counting today's move we're going to talk to the company's ceo david bird in a cnbc exclusive, that's up next

mpbltsz shares of u.s. steel have soared over the last few months ceo david bird joins us now. good to have you i remember of course when you joined us when awe announced this deal at beginning you had this option but it had some time to run why exercise the option now?

>> that's a great question, david. certainly the market conditions where we find them today are in great shape. big river steel just completed phase 2a of the expansion, doubling capacity ahead of schedule, under budget and the combination of the market tailwinds along with the superior performance that we're seeing out of big river steel we thought let's get, after relatively short engagement, the last year, let's go ahead and get married and bring the ebitda to the bottom line for this much better best of both integrated mini mill organization >> what percentage of your overall production, once they are wholly owned about be coming out of their mills as opposed to what we're, let's call the legacy or current mills of your own?

>> our capacity at 22 million tons they have 3.3 million tons, net tons of capacity so they'll be an important part of our business and what they bring to the table is high-tech, only leads certified steel company in the world that we know of, and combining that mini mill nimbleness and artificial intelligence with r&d and product develop know-how that u.s. steel has we think it's an absolute great combination, what we referred to a best of the mini mill, best of the integrated mills and at some point in time like to think we can do best of all steel >> david, it's morgan. congratulations on this deal i'm curious, given the fact that it is so productive, it is high-tech, i would imagine lower costs associated with this as well the timing with the biden administration coming in next month, how much did that impact the timing of this deal and also in general, what is your expectation?

what is your outlook for this industry under this new administration >> wove' been pleased and focused president trump provided for steel and now we are excited by president-elect biden and the things that's said about what his expectations are for the future and we've been around for nearly 120 years and so we feel really comfortable with whoever we should work with. i'd say this clearly an economic decision it was clearly an integration decision the timing a lot of things have to come together in this pandemic year to see strong expectations for the future low interest rates, low inflation, the weak dollar. the fed has done an incredible job with the m1 money supply seems there will be some type of

stimulus in the offing and at some point in time we will get an infrastructure bill so we feel extraordinarily optimistic, dare i say bullish about where we are today, heading into the future, and we look forward to working with the current administration, who understands very well that we create some great jobs, great representative employee positions here in the united states, and also we learned from the pandemic that you have to have a resilient supply chain and i'm certain that president-elect biden understands that, and how vital steel, the industry is to the united states of america >> it sure would be get to get an infrastructure deal since we've been talking about it for so many years now. the section 32 tariffs, what is your expectation around those? do you expect those to stay in play and a couple years out from when they were first imposed, have they worked >> i'd say yes, they have worked and i do think they'll stay in place for a while.

these things aren't forever. the transshifting and the illegal steel coming across, something had to be done in 2012, u.s. steel had its advanced high-strength steel secrets stolen at that point in time and certainly since that time, there's been a lot more focus on china, a lot more focus on fair trade, so that we actually hit a level playing field as we always say and i think everybody in the steel industry will say this, we can compete with anybody outside the u.s., if we're given a level playing field, and i fully expect president-elect biden to help us do that. >> yes, well you know, all the things you've mentioned, david, have contributed what seems to be a significant rise in price i mean, analysts are reporting that books will reopen for 2021, orders at about $800 a ton base price. is that a correct assumption >> >> we are seeing prices go up, iron ore, graft, zeal prices

across the board we are quoting prices above 800 and we'll have to see how this plays out. as i said before, i'm cautiously bullish that we will see a nice run for a while been >> finally, your stock price, we mentioned it a number of times an enormous move in a short amount of time obviously when we look back, it has not been a great performance over a long period of time for u.s. steel but are you in a strange way at all concerned perhaps of this enormous move that's taken place in a three-month time frame >> i'm never unhappy when the stock price moves up, so i think that if it continues, that will be great we have a lot of work to do to integrate big river steel and capture those benefits again, there's not any other steel company that has the mini mills plus the integrated mills to create the best of both, so we're going to be going after growth, we're going after market share and going to show how the advanced high strength steel what we call xg3 for extra u.s. steel stocks and g for

generation three is in the hand of our customers and big river steelworking with them as a 50% owned, less than 50% owned partner this last year, we've been able to demonstrate that a mini mill can develop grades of steel faster with the integrated steel mill slel bektule property we're very excited about the possibility of moving forward and yes, we'd like to see that stock price continue to go up. >> all right, we'll be watching as well. david, thanks for your time. appreciate it. >> thanks for having me. now it is time for our etf spotlig spotlight. tirker arqq, up 140% since january as core holdings roku, teledoc and tesla continue to trend higher tesla making headlines announcing in an sec filing it is planning to sell $5 billion worth of stock at market price

as "from time to time" their second stock sale announcement in the last three months and third this year as the company takes advantage of the massive rise in shares, up more than 640% year to date. quk tcht.k at that ar "sawonhe street" will be back after this.

as covid vaccines begin their rollout around the world, our frank hollande has been inside look at what some are calling the biggest logistics challenge since world war ii >> reporter: packing 50 pounds of dry ice in a container by hand is how pfizer's covid-19 vaccine will be kept cold for as long as ten days as it travels in specialized containers. boxes with 1,000 dozes will leave the kalamazoo, michigan, facility packed with 50 pounds of dry ice depending on the destination, containers will be delivered by truck or taken to air hubs, sorted and loaded onto planes. fedex and us say deliveries will happen within 24 hours in the u.s.

>> dhl is handling international deliveries that can take as long as three days. the president of sciences and health care calls this the biggest global effort since world war ii >> the biggest challenge is the final mile realistically there will be some product that gets lost or potentially doesn't arrive in the right temperature. >> reporter: at first, pfizer's vaccine will be taken directly to hospitals later to state facilities or pharmacy distribution centers, then to health clinics or drugstores where vaccines will be given us is producing 1,200 pounds of dry ice per hour to supply the u.s. vaccine effort known as operation warp speed fedex has ultracold freezers around the country, should doses be delayed for unforeseen reasons. the container also also have sensors inside to monitor temperature and location, as they are shipped and then rushed back to the pfizer facility. >> it could become a challenge at the height of the issue if we

can't recycle and get the packaging back quick enough to be able to continue to replenish the manufactured capacity that pfizer's able to generate. >> reporter: for every box of vaccine, there are dozens of boxes of supporting materials, shipped separately, that must arrive in time to give the life-saving medicine >> we anticipate palette of vaccine also require about 25 to 30 pallets of accessories to go with that, encompasses syringes and swabs and all the other accoutrements that go into a vaccination program. >> reporter: the coordination of the shipments will be challenging, fast-paced and profitable the vac teens in the u.s. will generate $300 million in revenue for carriers that estimated revenue number may seem low but it will be high margin citi estimates between high single digits and low double digits with air free capacity 40% lower because of fewer commercial flights that carry

cargo. the vaccine shipments are expected to raise air freight rates, us, fedex along with ch robinson and expediters expected to benefit from that back over to you >> frank holland, great rorng n reporting and peak holiday shipping season as well. i was curious about operation warp speed, given the fact that the defense department is involved in it and whether the defense department would be involved in some of the transportation and also security of transportation of these vaccines as they are distributed around the country it is my understanding that they are not. they are involved in staff augmentation, execution overnight alongside the cdc. it's hhs overseeing this transportation process so very notable how key, how crucial the role these private carriers are playing in this process right now. turning to another side of the logistics challenge for covid-19 vaccines, our seemamodi is

reporting as farmers and shippers prepare to transport them seema? >> reporter: unprecedented demand the owner of this dry ice distributor describes what he's seeing now orders coming from hospitals, pharmacies, shipping giants like fedex, anyone involved in fulfilling the crucial link in the dry ice supply chain for this vaccine. these orders coming in to distributors like dry ice depot in bridgewater, new jersey, to ensure they have enough product to that they can store the pfizer vaccine at the ultra cool temperature. at this facility, about 50,000 pounds of dry ice is shipped on a daily basis. chris says his phone has been off the hook since early november >> yesterday was a big day we moved about 70,000 so our inventory is a little shot we ramped up over double our normal volume at this point. >> reporter: so where is dry ice coming froms

'a solid form of carbon die observation identify or co2, the gas taken from what's left over from the production of ethanol or other industrial chemicals and then liquefied, frozen, becoming snow-like, compressed into pellets or bigger blocks. back in march, when the pandemic took hold that resulted in fewer drivers on the road, contributing to a decline in ethanol production, leading to a shortage of co2, but the head of the compressed gas association which represents some of the biggest co2 and dry ice manufacturers like lindh, the german company and air products says they're confident they have enough product to meet the demand coming from this vaccine. the challenge, guys, is that you can't stockpile dry ice because it has a short shelf life. >> over time, dry ice will revert back to its gaseous form, whether that be five, seven, ten days it certainly has a lifespan. >> reporter: so the price of dry

ice at least here is about $1 per pound. the average size of an order from a hospital chris vida tells us is about 170 pounds and different sizes and shapes of dry ice. the one he's getting a lot of demand for is this pellet form that you can see here and the contracts again are the ones that they're trying, the hospitals are trying to fulfill contracts with distributors across the region to ensure they can come back to get more dry ice as they run out. guys, back to you. >> seema, that is a great look, along with frank, at some of the logistical challenges here and we'll see how to the degree to which uk is a test case. seemo mody, thanks markets a tight range today, although mostly in the red, just slightly, dow down about 17. s&p trying to hold 3685. we're back aer bakft are in as ae as you are... don't settle for silver ♪ gold bond

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here is your cnbc covid update at this hour. this morning, we've been showing you 90-year-old margaret keenan, the british woman made history by becoming the first person to receive a fully tested government-approved covid vaccine. so now let's hear what she had to say after getting the pfizer biontech shot. when she was asked what her message is, did anyone worry about getting it >> i say go for it it's free and it's the best thing that's ever happened at the moment, so do, please, go for it that's all i'll say, you know? if i can do it, well, so can you. >> we want people to understand the virus is alas still rising in some parts of the country it's amazing to see the vaccine

come out, it's amazing to see this tremendous shot in the arm for the entire nation, but we can't afford to relax now. >> after that start, vaccinations are now under way in the uk, with the first 800,000 doses going to people over the age of 80 and nursing homeworkers. you are up to date back to you, carl. >> sue, thank you very much. sue herera we continue to watch the tape and report on developments regarding the stimulus compromise, potential compromise of course one of the sticking points remains key aid for states joining us on that is the massachusetts state treasurer and receiver general deborah goldberg madam treasurer, thanks for the time good to talk to you. >> good to talk to you, too. >> you know, as the market kind of looks at various areas of conflict and potential compromise it's really down to state and local direct payments and liability protections.

where do you think state and local fares? >> candidly i'm able to speak not only on behalf of mass mass but as president of the national association of state treasurers, i represent treasurers and financial officers all across the country, and we believe strongly, as did the prior fed chairs and future treasury secretary janet yellen, along with others, that if you do not support states and localities, you will not see a full recovery going forward. consequently the fact that one of the controversial areas is direct aid to states and municipalities is quite puzzling to me, since anyone who understands what was lacking in the recovery in 2009 and '10, it was actually supporting states in the way they need to be here in massachusetts, we're in better shape than a at of other

states but as i said, i represent the entire country, and we have to look at a recovery in terms of the entire country. >> the criticism of course on state and local has been pretty hardened by now, and it comes down to this notion that you're somehow bailing out blue states, republicans would argue, who mismanaged their finances repeatedly and structurally through the years. at this point, what is the ready answer to that >> well, i think that's ridiculous with the lack of a federal involvement in covid relief, many of the blue states had to jump in and expend enormous amount of resources simply for ppe and adding hospital beds in massachusetts we rebuilt the rainy day fund to one of the top in the country and as we look forward to our budget this coming year, yes, we had to use the rainy day fund, but guess what

that's what it's for, but we didn't deplete it. we used some of it and we're moving forward i, better than anyone, understand the amount of resources we had to put towards the pandemic had there been an organized federal response, that wouldn't have occurred and it wouldn't have occurred for many of the states this isn't a blue and reddish u. this is an issue of assuring that the recovery is across the country. as i said, i represent a bipartisan group, and we're all in on knowing that we need resources for every state in the nation >> treasury goldberg, if you don't get aid, if we don't get a bill out of congress any time soon, for example, when are you going to have to begin making cuts and how substantial are those cuts going to be in terms of employment amongst the workforce for the state and municipalities >> well, as i mentioned, we're in a fortunate situation we did not here in

massachusetts, we did not have to do cuts this coming year, and a lot of that is because of very good budget management we did not have to take advantage of the facility that the fed provided we had access to our own lines of credit, when we had to postpone incoming tax revenues 'til july. so massachusetts is in a strong position and in fact, we were out in the bond market last week and did extraordinarily well, but i know for other states, there are tremendous challenges, and many of them are forced to look at cuts, not just in state employees, but in benefits that they're supplying. you know, we have people who we've supplemented their unemployment by giving them additional unemployment. we've had to help with rent, food this is a true crisis, and everyone needs to step up, but i am heartened by things i hear from the incoming government that they believe that this

particular package is a downpayment, and that there will be more to come in january >> madam treasurer, thank you so much for your time we're going to obviously watch the tape and try to report on what kind of compromise can happen thanks so much >> thank you as we take you to break, take a look at shares of the buckle, rising after the retailer announced a $2 per share special dividend and a 30 cent per share quarterly dividend the stock has been on the move it's actually up 50% in the last three months we'll keep an eye tt. ayh itusonha and unmatched overall value. together with a dedicated advisor, you'll make a plan that can adjust as your life changes, with access to tax-smart investing strategies that help you keep more of what you earn. and with brokerage accounts,

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is the stock market rally burning too hot? why euphoria is a concern, on resqwkn e reomcnbc.c mo "ua othstet" coming up.

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welcome back to strt i'm dominic chu. stocks are mostly lower but modestly, off the worst levels of the session energies an outperformer and communications services among the relative laggards in trading today. within that sector, some of the silicon valley giants are leading those declines, check out shares of twitter, netflix, facebook and alphabet moving to the downside charter, newscorp and comcast, cnbc parent company, under pressure today all stocks are up double-digit percentages and outperforming sie broader s&p on that 2020 bas.keep it right here there's more "squawk on the street" coming up on the other side of this break

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you're going to see some shows return there, starting next year break that down for us and what your expectations are for cirque du soleil events come 2021. >> yes first of all, we're very pleased since the transaction to have the support of our new shareholders as we speak interestingly enough, we have a show going on in china, because the situation is back to normalcy in china we just opened two weeks ago our dinner show and we also have a seasonal show in orlando vegas is very important for us as you know, we have many shows there. so, we are opened to open some of our shows next spring

we are, obviously, very encouraged by the fact that the vaccine will be distributed to a very large scale in the u.s. and in north america and in general. so that's very encouraging for us to have the revival of cirque du soleil coming up in the next few months. >> yeah, and whether it is -- i realize cirque du soleil hasn't opened events yet. we have seen some other shows that have opened in recent weeks. whether it is those in vegas or productions in other parts of the world right now, what are the lessons learned? what is the data so far telling you about what these protocols should look like in a covid or post covid event >> first and foremost, we have to put in place some sanitary measures that are going to help us to protect not only our artists but to protect our pat ron rons the other lesson is during the crisis, we have developed a

network and have reached to eed 65 million viewers we think now there is an opportunity for us to develop the digital marketing, the digital content to really enhance the knowledge and the monetization of our brand. >> certainly that's a key aspect as well. i am curious, though as we see these vaccine rollouts begin to happen, it's still going to be a number of months until we see widespread, more broad inoculation. as you do bring more shows up in a live setting, do you expect people to come are people coming to your shows where you are already live >> yeah. we are optimistic, because we think that the people are really tired to be in confinement and i think they cannot wait to go to live event to get out of their home

and we think that it will create a new environment where people are looking forward to normalcy. and if we can protect them by having sanitary measures that are very well, then i think people will rush to our various theaters around the world. >> you had to let go, what, 95% of your staff and performers as bankruptcy has happened, as the covid pandemic has halted events this year. how many of those people are you going to be able to hire back, and how many of those people, how much of that talent is actually going to be available, given how much time has elapsed and the fact that you do have folks that i imagine would have to look elsewhere for employment >> yeah. obviously, that was a nightmare, to go from 44 shows to no shows within 48 hours, and moving from being a profitable company to no revenue within a heartbeat so we have no choice to do what

we have to do, but now we're keeping in touch with our people the good news in las vegas and in our lando, our cast and crew lives there. so we're trying to support them as much as we can, in order to make sure that when we are able to relaunch our shows that they're ready to go. obviously, it will take a couple of months for them to go back into theater and be trained and do the rehearsal, to bring the show to the same quality we had before this shutdown. >> daniel, when the pandemic began, people were theorizing about a vaccine one day and said we're going to have vaccine passports. you'll need to prove you've been vaccinated in order to get into things like live events. these days it seems untenable in some people's minds. is it? >> i think what's important is

that we're able to ensure our employees and, more importantly, the public to ensure that they're not at risk to be contaminated and we will take all the measures we're talking a lot with various governments around the world and we will have the most severe measures that we need to have to, again, guarantee our customers that there is no risk in coming to see a cirque du soleil show. >> daniel, good luck with all these rollout efforts. please do keep us updated as they occur daniel lamar of cirque du soleil, thank you for joining us today. >> thank you very much shares of at&t above the 2 hyundai for the first time since march as christopher nolan slams hbo max, calling it the worst

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good morning, it's 11:00 a.m. on wall street and "squawk alley" is live ♪ good tuesday morning welcome to "squawk alley." investors watch the vaccine optimism, v-day under way in the uk as they vaccinate their very first patients margaret keenan, 90 years old, patient number one norng