levels as they are thinking about what the growth of this company could be if the pricing was mispriced. >> right exact liam i think your opponent is well taken. we are rivaling the market cap of the major hospitality names right now. the dow is down 13 points. we are back near session lows a. similar dynamic to what we saw yesterday with doordash. thank you for joining us today, scott we will see you tomorrow. >> all right, kell. >> thanks for batching "power lunch. "closing bell" starts right now. >> i'm wilfred frost along with sara eisen the nasdaq recovering a bit from yesterday's losses the dow and the s&p still in the red. let's look at what is driving the action tech higher, ned flicks and apple up 1%. jobless claims rose more than expected creating more doubts about the strength of the recovery as covid-19 cases continue to rise in the u.s. and it's once again an ipo that is center of the action today. a huge pop for airbnb in its debut. the s&p currently flat nasdaq up about half a percent

59 minutes left in the session down a quarter of the percent on the nasdaq sara. >> big interviews come up in the next few minutes first the ceo of barclays will be joining us to talk approximate the margaret and the global economy and deal making in the red hort ipo market it is a cnbc exclusive then a group of blue championship ceos making an announcement forming an organization called one ten to close the race gap in corporate america. members of that organization will join us to talk about that topic. first, mike santoli on the high flying momentum parts of the market and leslie picker on another astounding ipo day airbnb doubling in itsdebut. >> first a look at the broad market it is a little bit soft the last couple of days the hot ipos are stealing a

little bit of the oxygen staying within the range the s&p 500 the low this morning after the open was 3645. the high from intraday on november 9th we are going back a month and basically haven't made a lot of net progress but also hanging around the record high not necessarily a bad picture but it shows you a little bit of wheel spinning going on at the broad index level even as we rotate to more cyclical stocks look at the nkds 100 a different position here. it has had a modest pullback this is a two year chart to show the general uptrend. it is actually a little bit below the september 2an high so it's basically struggling a bit. maybe it's net positive that the i don't have all market has held together okay without the leadership of those mega cap growth stocks that really had a surge. one thing to pop out you don't go much warning when you are going to correct after one of these high velocity moves.

this is a gentle slope but word of warning that you don't get warning before the market loses steam. look at these very large stocks that are now either not eligible for the s&p. tesla goes in next week. this we know, zoom video, snowflake at $112. a stab at the fully diluted peak market value after airbnb opened uber isn't in there. spotify. some aren't profitable and can't get in in aggregate there is $2 trillion worth of market cap in the 40 largest companies that we trade that are not the s&p what are some of the smallest companies? they are small in relative terms. here are the bottom five in the s&p 500 as of this morning under $5 billion there is 50 s&p 500 stocks under $10 billion. that's way less than half a

trillion dollars in market cap against $2 trillion. a, it should be easier to beat the s&p or b if the s&p gets these stocks the index versus to buy them at rich valuations or maybe it ends up being a two tier north and a measure of froth eastness in the emerging growth market areas. >> interesting numbers there, mike thank you very much. doordash yesterday airbnb today airbnb priced at $68 a share which was before its already increased range. it opened at $146. is just about that level at the moment $120 up on that official ipo price. leslie, you have all the key factors of the move day. >> airbnb has added $54 billion to its valuation now this company that sought emergency funding in just april of this year is at an $18 billion valuation, is now trading at nearly six times that level.

these are money strerous moves for any ipo, but especially for the largest one of 2020. usually the law of large numbers would imply that big moves for big deals are harder to come by. by many accounts there is not a normal year. there is a frenzy surrounding these ipos that most experts argue go beyond value and into arms of psychology momentum. >> airbnb's ipo comes after the very strong first day performance for doordash also c 3 ai. let's bring in barclay's ceo jeff staley. thank you for joining us >> it is great to be with you. >> i have to start on this extraordinary ferocious ipo market before we get onto some barclay specifics k. the pace of ipos coming to market continue like this? >> we are an active manager in airbnb but let me make a couple

comments one, the overall backdrop is the market is extremely liquid following the monetary policy that's being pursued by sflar banks, uk, u.s., in face of the pandemic we have the fact that software companies are trading at extraordinary valuations you have got a number of them trading at 30 times revenues, which is quite something if you look at these ipos, one, they relative to the market caps of the companies, while they look big in terms of absolute size, relative to the market caps many of them are not that big. secondly, the allocations are pretty tightly managed and then two other comments i wouldas a add is, i always thino should look at the value of an ipo 90 days after it is originally priced as opposed to the first night. there is a lot of averaging going on between the people who realized the original stock a of the the $68 level.

where do they take it? and what is their average price based on what they buy and finally, again, i think you have to look 90 days out we are tight allocations, but the market is definitely pretty hot. and you have got also the phenomenon going on in the spac market so we are seeing the impact of extraordinary liquidity and people trying to find returns. and the fact that a lot of people believe that value is in software and you cannot miss what's going on in that industry with companies trading at 30 times revenues 123450 i guess, jess, all of those factors you are talking about, the gains in the ipo market that we mentioned at the top it is also a sign of the two tier economy that we are seeing the two tier world. do you think all that economy justifies your strategy to have an investment bank as well as a typical retail commercial bank >> you know, we have been -- we

set the strategy wilf, as you know, five years ago to remain a bolt bracket investment bank based in london but with a significant presence in new york. for sure this year in the first three quarters we demonstrated we gained market share each quarter. it has been driving the profitability of the bank. it has enabled us to strike our highest level of capital ever, the most liquidity the bank has ever had then it also enabled us to do, primarily in the uk the right things we wanted to do in terms of vulnerable clients, small businesses, partnering with the economy government to try to keep the economy going in face of the pandemic. but it clearly underscored the value of having a diversified model. uk consumer banks -- we are one of the top four -- are going to have a challenge given what's going on in the uk and having the balance of a very

active investment bank has happened the other thing i would say is -- is -- is 12 years ago, the central banks had to bail out the banks in the financial crisis this time, the lick -- the banks are in a much, much better position in part because of what the regulators have done but the liquidity injection that we are seeing from the central bank is in a way bailing out the buy side it is pushing money into mutual funds and pension funds. they are providing tremendous buying support for growth in the capital markets and the intermediaries like barclays are doing very well. >> one of the other challenges of course for a uk-based bank that does business globally including in europe is brexit. can you believe that we are sitting here with weeks d just weeks left until the deadline and you still have the got an answer whether there is going to be a deal or knot?

are you critical of the government has it been very hard to manage your business and prepare? >> you know, when the referendum happened a number of years ago on that follow sunday we got the entire executive committee together of the bank to talk about what brexit meant. and one of the first things that we concluded was, given the political dynamic of brexit, that we shouldn't expect a deal until the 11th hour in the 59th minute it just doesn't fit the political agendas to negotiate these things before you have to. so we have lived for a couple years and more of uncertain about whether there would be a deal struck. so over the last couple months we again thought that it would take very much towards the end of the year. what's we are seeing playing out. now you hear a possibility that they may even extend, you know, the negotiations beyond the end of the year. i think the markets have priced

in both the eventuality of a deal and a no deal i think the market is more sanguine than perhaps brexit gets as a topic in the press so it's a challenging and difficult thing. it's a major little prove. but i think economically the market -- companies have adjusted barclays is already all set for a no deal or a deal. i think the economy is more adjusted to the possibilities that may come out of this than perhaps the political narrative would imply. >> assuming a no deal, jess, how quickly where europe's capital markets take market share from london >> you know, i think what they are going to take to a certain extent they have already taken we have moved capital to our european bank which is headquartered in dublin.

we have moved salespeople to frankfurt, milan, and paris. we have restruck contracts in europe but as i have also said, i think london will remain the financial center in europe you know, you can -- you can put tariffs up against goods, and you can limit what crosses your border the financial market is very hard to try to sort of capture or put into a central location i think the uk government understands how important london is we'll be very focused on how the financial markets in london is regulated. and to a certain extent it allows london to think more about the regulatory framework in new york than the regulatory framework coming out of brussels i think london will stay the financial center of europe we will remain very competitive. and really the brexit conferring is more around goods than it is around financial services. >> jess, so many people

wondering many times in the last couple of years but particularly as we near the end of this year whether we are going to get a reflation trade, whether we are going to see rates finally start to rise again. clearing this morning the ecb increased its bond buying again. what did you make of that is this does it push back when european rates might rise by another three, four, five years? >> so, we have the terrible pandemic and that created in april an extraordinary economic shock and that shock was met by an unprecedented action on the fiscal side by governments and on the monetary policy front by central banks. truly on an unprecedented level. the ability for governments and central banks to do that clearly has been aided by the fact that interest rates are extremely low if not zero percent. so you can run deficits. you can borrow a lot of money. if your interest rate is very,

very low if not zero, you are essentially borrowing for free and that has enabled these governments to respond to the pandemic i think right now the economic horizon is a lot better than any of us thought three to four months ago the question is the right question where is inflation i think if you went back to a normalized market and you asked someone who had 15% deficits to gdp, massive bond buying by central banks, the bond market would be asking for a price of that and you would see it in bond prices. i think part of the reason why you don't, wilf, is because there is no sign of inflation. i would say two things about that there is no sign of inflation because there is no wage pressure the negative side to that is i think there is no wage pressure because the economy is dislocating in different ways. just like this ipo market is

showing, technologies, software companies are booming in value and booming in business. traditional labor businesses are not. in many ways i think the challenge is not so much inflation on the horizon as opposed to a real critical problem in income inequality and it may be that the response to all this is more social challenge and social stress in the developed world and less so an economic one. >> jess staley, always a pleasure thank you for joining us >> thanks, wilf. up next on the show, 37 ceos making a big announcement today to train, hire, and promote black americans. 1 million people over the next ten years. the likes of comcast, our parent company, at&t, nike, lowe's, walmart. two members of that organization will join us here on cnbc. dow is down.

recovering a bit in this final hour

welcome back racial inequality has been a big topic in 2020. here at cnbc, we have talked a lot about the racial disparities in corporate america this morning, we got a big announcement from a list of heavy hitter ceos to take some concrete actions on this front it is called one ten the goal, creating 1 million jobs for black americans over the necks ten years. delta, gm, nike, cnbc's parent company comcast some of the members. joining us, two from the organization thank you for joining us you are going to hire a ceo as a start-up not necessarily a philanthropic

organization how does it work how does it help these companies who are on board hire that many workers. first of all, this coalition of 37 companies that have come together and their ceo land what those companies will do is create economies of scale on the demand side so we will know that we have a steady group of jobs that will be available the company that you are talking about, the start-up, one ten itself, its job will be to work with all the suppliers of talent on the other side. there is a tremendous amount of talent in the black community. as you know, the kploimt situation is challenging for a lot of african-americans only 20% of african-americans actually have a four-year degree there are a lot of organizations out there trying to provide the kind of hard skills that people need in order to find these kinds of family-sustaining wage jobs but they are generally small. they are generally subscale, generally fragmented

it is hard to deal with that many small companies in comes one ten who can take the demand and help some of those talented suppliers scale up so instead of training 4,000 people a year they can train 40,000 people a year what's we are trying to do at one ten. the other thing we are trying to do is put together a community of practice among the companies that are going to be within this coalition because with respect to the people that we already have, black americans who are employed by all of these companies, people who have four-year degrees or even more degrees, we struggle with the representation in senior branches of the company in terms of the number of people who are in either senior management or executives of these companies. it is 3% even though the african-american population of the country is roughly 13% the second thing we are doing is putting together community of practice to focus on what are

the best ways of retaining, developing, and promoting african-americans? how are we going do better than we have done in the past all of these companies have tried very hard, approached this with good faith. but we all want to do better. >> the educational stat that ken just mentioned ginny is one that i know you are focused on, that only 20% or so of black americans have college degrees which is an incredible barrier to get jobs at these companies that have signed up. i know you have experimented with hiring people without college degrees. what sort of jobs do they qualify for? how can you expand that into other companies? >> yes, i believe given our experience this can become a movement for everyone in the industry the kind of jobs, ken said family-sustaining. at the top of the list, it jobs, software development, then medical technicians, financial and business operations people

there is a long list yes, you need a skill. it may not be a four-year degree as we come together we are going to address the structural barriers one of them is just what you said, sara if you look at all of the job requisitions almost any company has many of the jobs we are speaking of here all require college degrees to get started when in actuality you could have a set of skills to get going that is not really a four-year degree so they are overcredentialed our experience is a proof point. we have been at this eight years. it was driven by a belief that the digital economy would not be inclusive and you had to do something to get this large s.w.a.t. of people into our work forces that had aptitude but not a pathway in when we went through all of our job reqs 43% no longer require a college tree to start. 100% did most important point, then as they have come in, this is not

just about hiring them it's working with them on a career, promoting them we have seen 75% go on to get college degrees. we had our first ph.d. this is about taking a whole category of americans that we need, the employees, and we are giving them a chance and pathway into the middle class, often first generation, that they would not have had these are talented, talented people, but they need a different pathway in and it is a case where the education system to date hasn't been able to do that you know, americans in general, 60% do not have a four-year degree at the rate and pace technology moves we must do something substantive. while each company was doing something great on its own including my own initiative. we are convinced all of us that the we come together we can do more. >> hearing you talk about it, it sounds like a great step, obviously. the issue of race has been

around for centuries in this country. companies have been working to try to improve equal opportunity for decades. and i realize that we are in a different sort of moment right now and that this is a first step but how do we deal with the chronic underrepresentation on boards, executive management n the broader work force the results have been underwell. ing from corporate america. >> i think that's for sure about the same time i am very optimistic because i think the companies are are looking at the issue of racial equity through a different lens i think that, you know, putting aside what we are doing with respect to these particular jobs when you talk about people in senior management i think there has to be an intentionality around what are these implied barriers that are keeping certain people from being promoted in they companies or being on boards. linked indid a study that speaks

to this. when you are filling senior management jobs what you tend to do is find a pool of qualified people but often a decision is made based on relationships or networks we want to promote the most talented people not the best networkers all of us have to be much more aware that frankly there are a bunch of fictions i will be blunt around african-american talent that have to be dismantled in order for african-americans to have an call opportunity inside corporate america. >> bias i would think among them the other challenge ginny is that we just got a number this morning, 853,000 americans filed for unemployment last week it was a 150,000 increase from last week. corporate america is not exactly in hiring mode quite the opposite how much trickier does it make these kinds of challenges? >> it actually make of the more

important to what we are doing right now. if you are looking at the jobs we are speaking of, many of them live at the intersection of technology and business. part of why there is hiring there are job requisitions out there, then it is whether or not people have the skill to get them sara, this idea that there are so many -- community college, not for profit, there are so many organizations targeted at black americans that are not yet at scale that go towards the skills that are in demand because there are open job requisitions what we are going after is where there is job demand. by the way, this is very local i think this is also what makes it different in this moment. we any this is not a mobile population we are picking our cities, watch that space soon to start with, and by city the companies work together because you also have to address what we might call wrap around services, whether that be transportation, child care it isn't just about getting a skill. we are all really well aware of that

but collectively, even in this moment -- in fact because of this moment if you really focus on how can i get the skill providers and then match up what the job requirements are -- because as we have gone through the coalition there are openings this is a matter of saying take those opens go to the skill providers and say i am in atlanta i have 1,000 people i can hire into cyber security there are many unfilled cyber jobs there are open jobs that can be filled without starting with a college degree >> it is god the hear. the covid crisis, ken has only exacerbated this days patient that you are trying to address if you look across across every educational level the black unemployment rate is way above the white unemployment rate. it feels like this pandemic, the economic crisis, the shutdowns, the health crisis has all set us back on this crisis. >> i think it has been happening

for a long time, before the pandemic the average white family has a net worth of about $150,000 the average black family has a net worth of about $4,000. that's an incredible disparity also before the pandemic, the gap in income, wages, was widening i saw a statistic that said that the relative position of an average black male employee in the united states versus an average white male employee, that that gap hasn't been this large since 1953 so this was a trend that was already in motion. i think the pandemic exacerbated it but what we have here is a failure of the education to employment pipeline in this country. what we want to do with one ten is to address that by making it a skills first hiring paradigm not a credentials first hiring

paradigm as long as you have a credentials first hiring paradigm it is going to be disproportional against black americans. >> you are also hoping on something else to help get us out of this crisis that's the pandemic. today is a critical day. can you give us an update on the vaccine candidate you are working on at merck and the time line of it changing the course of this pandemic. >> inside merck we continue to work on two vaccines they are not nearly as advanced as the vaccines being considered today. and importantly working on therapeutics we have an anti-viral that moved into phase three that we hope will play a very important role in terms of knocking down virus and perhaps keeping it from being one that reproduces and therefore one that can spread. we are also working on an therapeutic that's useful late in terms of very sick people

that we think will actually have an impact on mortality as it relates to these vaccines, the first thing is these vaccines have had stunning efficacy where we are going in the next six months, we have to assist in making sure that those vaccines get to the most vulnerable populations and health care workers. after that we can talk about a more general rollout but that's probably going to take longer than six months in order for to us vaccinate most people in this country and then of course around the world i think there is a lot of reason to be optimistic about the vaccines that are coming occupy. the pfizer and moderna vaccines look fantastic i think for the next six months and beyond we are still going to have to follow the public health identifiance of wearing a mask and social distancing and hygiene and all of those things to protect one another. >> ken frasier, ginny row metty

thank you for joining us and please keep us posted on one ten. >> one more thing, go to one ten.org. >> join us bye-bye. >> a plug there from ken frasier. thank you both and tonight don't miss nbc's path poured. we are looking tonight at the latino community that's at 8:00 p.m. eastern time here on cnbc wilfred as i understand one ten's mission they are starting out with hiring black workers. but they characterize it as a start-up and they do plan to grow it from there into other communities that need it, latino workers, for instance, and the opportunity gap there. >> yeah, fabulous initiative and also i am sure tonight's special at 8:00 p.m. will be a fabulous show as well. make sure you don't miss that one. still to come on "closing bell" we are all over airbnb's first day of trade we will discuss what is in store for its publicly traded company. bradley tusk will join us for his take

>> s&p 500 and dow just negat e negative back in a few minutes. 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. ♪ ♪

welcome back time for a cnbc news update with

sue herera >> here's what's hamming at this hour british prime minister boris johnson is warning his cabinet to prepare for no brexit trade deal and saying there is a strong possibility the trade talks will end in failure. near port cities on both sides of the english channel trucks have been lining up for miles as companies stockpile goods. here at home household net worth has risen. in chicago, hundreds of firefighters are battling a blaze that engolfed a auto parts warehouse. a spokesperson says the building will likely be demolished. so far no injuries have been reported. ellen degeneres says she has tested positive for the coronavirus. she says she feels line and looks forward to seeing everyone

after the holidays the show goes into reruns today. that's the news update you are up a to date, sara, i will send it back to you sue herera, thank you. >> goldman sachs out with a new note on retail giving two stocks double upgrades. levis and paufl lauren here's a check on bonds. we'll be right back. what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity

of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley. but inside every etf... there are untold hours of careful construction... infinite "what ifs?" and contingency plans. creating funds that help target gaps in client portfolios. tap untapped potential. and strengthen confidence in you. flexshares.

powered by over a century of investment expertise before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

♪ i got it all from you ♪ i'm always pushing through ♪ i know we'll make it to the finish line ♪ ♪ i know you're waiting on the other side ♪ ♪ i'm like you on-demand glucose monitoring. because they're always on. another life-changing technology from abbott. so you don't wait for life. you live it. still to come. a big afternoon of earnings at lululemon, kossco, broad com, and oracle all set to report we will break down those numbers as soon as we cross. we are just atn e p. mut left.ths& [sniffing] is the salmon wild-caught? she only eats wild caught.

[cash register beeps] uh, i need a price check on honey. don't get mad. get e*trade and get more than just trading. investing. banking. guidance.

we are back. 17 minutes left in the session there is the s&p 500 heat map. energy a clear winner. tech the second best performing sector energy is the one that's standing alone industrials, materials, utilities towards the bottom of the pile we have recovered significantly

intraday we are down significantly at the open nasdaq is now higher s&p 500 and dow essentially flat when we come back, a facebook antitrust lawsuit and airbnb wraps up its first day of trade os was a stunner the stories and more when we take you straight inside the "market zone." ♪ ♪ ♪

see yourself. welcome back to the mirror. and know you're not alone because this. come on jessie one more. is the reflection of an unstoppable community in the mirror.

sales are down from last quarter

but we are hoping things will pick up by q3. yeah...uh... boss: doug? sorry about that. umm...what...its...um... boss: you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today. welcome back 12 1/2 minutes left in the trading day. we are entering the "market zone," commercial free coverage of all the action heading into the close. mike santoli here to break down these crucial moments of the trading day. today we have stephanie link with us as well.

good afternoon, stephanie. let's kick things off with the broader markets. nasdaq leading the charge. s&p 500 just turned positive dow is fractionally negative we are well off the lows of the session, having opened lower mike, the sort of sector performance today an odd one you don't usually see energy and tech at the top. most things are flat with a few individual winners the market has cloed'd slowed down there have been a uhl few pullback taemtsz en in of them got a lot of downside momentum. no net damage done at the index level. energy benefits from the year end laggards that can move a lot in a short period of time type of trading really, there is not a lot to take away from -- to say there is any kind of a trend change under way with the broad market.

>> have you been surprised, steph, to see the resilience of the market in the face of, i don't know, you could call ecb's move this morning disappointing because the euro went up, which is not what it's supposed to do during easing. disappointing economic data, height isly higher inflation, worse jobless claims, steph, and yet here we are. >> yet here we are it is incredible it has everything to do with the liquidity you are talking about. we have $90 trillion worth of monetary and fiscal system includes sloshing around global. then ecb'ded a another $600 billion. and they extended the time frame, which was a little bit of a surprise they are going to continue pedal to the metal for longer than expected and i think that that's actually very positive for risk assets so you have to look at the fed are they going to do something more we now powell is dovish.

we know yellen is dovish i think the combination duo is going to continue to be dovish as long as there is liquidity around we go higher i think in the markets overall. >> down 41 points right now on the dow. airbnb wrapping up its first day of trade it was a wow deirdre bosa with the latest. >> it was a wow. the second in two days, right after doordash this morning i asked brian sheskey if valuations were getting out of hand and if that worried him and if it raised expectations for him as a ceo. >> i don't think i am going to worry much more than in april and may when we saw our business drop 80% in eight weeks in the middle of a pandemic >> we know that airbnb has been through the wringer this year. and it has come out the other side with surprising resilience. that's partly what investors responded to today even so, some say its debut indicates a frenzy

keep in mind, the company hasn't even fullry recovered gross bookings to last year's levels and there are still questions on the regulatory landscape sheskey is optimistic. he says travel will come back but will come back in a way that favor's airbnb's business model. markets seem to agree. airbnb now has a market cap larger than that of the hotel chains and the online travel firms. >> back to you. >> so many big companies mike, what do you make of this first-day pop? doordash yesterday, airbnb today. what does it tell us about the market >> the formula was perfect for both of these deals. ubiquitous service we know it's just an app that gives you a gateway to a very large potential market is magic. the retail frenzy with trarksal trading and the smart phones speculation and the piling into odds market feeds on itself. what i find interesting is over the last two days all of the

emerging growth stories that have taken flight and palantir and snowflake on a two day basis. it is like the kids playing soccer chasing the ball and the ball is the new thing. it is not that the market has gone entirely crazy and we have to roll over but it means there is no particular wisdom contained in the price that this stock is trading at today that was unknowable yesterday except the degree of an appetite for a new recognizable hot name. and that's all it has told you it is not telling you a whole blot the market's conclusion about its business prospects. >> steph, when you see these massive jumps on the first day, same with a couple of the ipos yesterday you also see the likes of tesla approximating unbelievably well year to date and issuing more stock. are those warning signs for the broader market or the broader tech gig sharing economy type stocks >> i do always worry especially about these last two days and

two moves in terms of doordash and airbnb tesla is an animal it is an esg play. it is a sass cloud technology play it is a lot of different things wrapped up into one. and i can't understand the valuation. but it is what it is but these other two, these ipos, do i worry a little bit. these are huge moves i moon they priced this thing at a $45 billion market cap now it is at 90. i get the total addressable market for airbnb is $3.4 trillion and they only have 2% of it. i guess there is a real big runway for this kind of company but i do worry a firstday kind of move. i just put a yellow flag out there. as sara asked earlier, why does the market keep going high center because we have liquidity and it breeds a positive tail wind for risk assets. >> earlier we spoke with barclay's ceo. here's what he had to say about the market given some of these

massive surges >> the market is definitely pretty hot and you have got also the phenomenon going on in the spac market so we're -- we are seeing the impact of extra liquidity and people trying to find returns. and the fact that a lot of people believe that value is in software, and you cannot miss what's going on in that industry with companies trading at 30 times revenues >> steph, of course it is pretty hot but all of this issuance has been positive for the investment banks this pastee. can that continue next year? and the big reveal it is time what is this new financial that you bought that you teased last week i have been waiting. >> i am sorry it has been a whole week blackstone is the position that i added to. >> every day. >> every day i owned it in the past but i just rebought it recently. and it is a low interest rate play because i don't think rates are going to get away from us. it is also a play on -- and a

company that's going to benefit from investors changing their allocations slightly from publics to private this company also generates huge free cash flow i think it is very steady, stable, and also not just under assets under management but also from performance i think they can see earnings growth in the mid teens. it is only up 11% on the year and i think there is more to go. i thought jess staley's comments from spot on he talked about liquidity. and i don't think you are going to see the same kind of capital markets activity tough compares but that doesn't mean you are going to go debt negative or a huge drop. we are just going to see expansion from where we are today. if you get a yield curve that's on the steeper side which i think you will if the economy continues to recover these guys should do pretty well. >> how have the financials been holding up mike in the face of the little bit of a pullback we have seen here

tracking for our first down week in the s&p 500 in three weeks and under a the nasdaq in four weeks. >> they have softened up a little bit from the recent highs. yields have come in a little bit in the last couple of days i don't think they have necessarily been the engine that has been driving this. but certainly holding up well above those lows they have been participating in the value trade but they are not as tightly geared to the acceleration story in the early part of 2021 that serve captivated by as some of the other ones so they are involved but not necessarily leading. >> let's talk facebook certainly remains in focus after the big news yesterday that the federal trait trade commission filed lout lawsuit against the tech giant julia boorstin has the latest. >> the ftc and 40 attorneys general their lawsuit alleges they bought up or quashed

competition. that news pressuring the stock lower today. it was down as much as 2%. now down just fractionally after fall 2g% yesterday but analysts are largely bullish. some 8% have a beyer overweight rating saying a break up is unlikely in part that years have passed since the acquisitions and at that the ftc did approve them that's part of their defense and they do believe that more deals will be going forward. >> is that what this is, a bet on wall street, the resilience of facebook's stock that the, the ferks c and anyone who brings cases against these prior deals that were approved are going to lose. >> it is disappointing but i agree request julia, i don't know how you can overturn what the ftc ruled on in 2012 and 2014 with the various different

deals they did i am of the mindset anybody could have bought these companies and facebook decided to buy them. they were the ones that were successful do it and they put a lot of money into these companies as well over the years and have made them what they are. then i also look at competition. there is tons of competition in the social world snap, youtube, tiktok. so i just don't think this is going to really get anywhere it is just noise and i actually would be buying more on weakness >> buying on the weakness. you her it there is the two minute mark today in the trading day mike, what are you seeing in the certainlies with this recovery here into the close for stocks. >> they have held up all day even before we got the pick up in the indexes in the afternoon. about two to one not quite, but two to one almost advancing to declining volume. for those who complain about

breadth being weak -- look at health care. the biotech sector has been strong, up 4.5% on the week. the broader health care group is about flat on the week obviously vaccine nows is a halo effect and also people making big bets on the future generally. volatility index has a slight bid to it versus where it has been little bit over 2. reluctant to go below the 20 mark seems like we should go to sleep in the markets to some degree in late december the vix is not positions for that right now >> just under one minute to go nice intraday recovery takes the s&p and dow just shy of the flat down the nasdaq into comfortably positive territory, .6% higher ing in, tech and financials the three sectors on the s&p 500 that are higher. energy clearly, up 3%. oil up today 3% it self. bottom of the pile in terms of

sectors, industrials, materials and utilities. we have got a slight bit of dollar weakness today because of the euro strength. cboe, vix at 22. ten-year up a little bit there is the bell. s&p and dow just slightly lower. nasdaq composite up .6%. a negative close but certainly off the worst levels of the day welcome back the "closing bell." i am sara eisen here with wilfred frost and mike santoli look at how we finished the day on wall street the dow ended with a decline of 70 points. we were down about 190 at the session low. s&p 500 also taking a step back continuing what we have seen pretty much all week which not far off from record levels but certainly not climbing higher. we did go positive just in the last few moments of trade. ended down pretty much five

points or so nasdaq doing better all day long i rose about half a percent. it underperformed yesterday. it fell about 2% making up some of the lost gone there on technology. still the outperformer of the year, up almost 20% in 2020. good day for the russell 2000. up 1% overall. investors are now preparing for several big earnings reports this hour. oracle, broad com, costco and lululemon. we will break down awful those numbers as soon as they are released let's talk about the markets stephanie link with hightower still with us. mike santoli we will go to you first. >> the market is absorbing the rush of new equity supplies in various ways n the oipz, the secondary offerings, we are expecting turnover with the index rebalance next week but it has down shifted the s&p's first

trade this month was 3662. now it is 3668 we are up 3% from the peak on september 2nd. we have kind of gone sideways, consolidated and corrected a little bit also contending with a little bit of stretch sentiment all of that stuff is combining to keep the market a little bit trapped at the index level, meanwhile people get really excited about the buzzy new stock day. >> steph, do you think the dollar weakness we have seen of late will continue how does it inform how you allocate your money into equities >> yeah, i have been focused a lot on the dollar. and the dxy is down about 6% year to date that has a lot of implications it would be positive for the emerging markets, and international as well. also the u.s. multinational companies. that's where i trade and like to invest i expect this to be a nice tail win for all three groups

and maybe, just maybe next year we do see money start to outflow from the u.s. into more of a global play. i mean, we have had a lot of stimulus, as we talked about so it is starting to creep into the system we know liquidity takes about eight to ten months to actually find its way into the system so we are actually starting to see that kind of data. i think that's where i am leaning towards for 2021 we will see if it continues in terms of the weakness of the dollar. >> on the flip side of the multinational trade mike small caps closed above 1917, it would be a record high for the small caps of all the major averages it is the only group that's higher so far for the week, tracking its signatureth weekly gain. what is driving the money into the smaller stocks >> traded 1920 on the russel 20 0 at the close. >> that's a record. >> yeah. one of the moor durable -- this

kind of mean reversion trade it wasn't about value outperforming growth recentlyist has been small, higher beta, more cyclical. all of those things work well in the russell 2000 and the credit markets continue to be amazingly strong everything is supportive on that level. just the pendulum swinging arguably could keep that moment up rolling as we noted yesterday, not cheap any way you slice it that has been an issue with the margaret for a while things have to grow into these valuations but maybe we are just on a different layer right now in terms of valuation just because of how low rates are and what a massive policy response we have gotten the last several months. >> mike, do you stand on this question to whether these ipos the last couple of days start the add weight to the argument there are similarities to various bubble-type moments of the past. >> you can hear the echos, there is no doubt about it one thing we didn't have as much

in 1999 is people for years on end saying, hey, this is juice like the double of 20 years ago. so this time i feel almost as if people have been overanticipating this moment and we had something like 500 ipos in 1999 much smaller on average and they all weapon up an average of 60% on day one we have seen it of about what is new is the heft of them. the size of the mashlg market values out of the gate is a new thing. the delegate scaling of the economy offers us that i don't think we have reached that level of public mania by any stretch yet. may be get willing. >> i want to break in with lululemon earnings which are just out earnings per share, 1.16, the estimate was 8 cents

lululemon continuing to post some very strong results comp store sales up 19%. the strength here, direct to consumer sales that's pretty much their on line business, up 94% in fact digital revenue they say up 93% north america up 19% revenues, international up 45% revenues. these are figures that most of retail would be very jealous the see right now. obviously they are still impacted by covid-19 and store closures they have had in north america and europe retail store comps were down 17%. obviously what they are doing on line is enough to make up for that gross margins rising a percentage point looks like they are not giving guidance, which could be potentially a little bit disappointing. they say they have gained 1.4 points in u.s. market share and they continue to install mirror, which was their new acquisition, the fitness mirror that you can do at home in a number of their

stores that has a good reception from consumers. the stock is up after-hours. stephanie it has been on such a strong run really but the results continue to justify these increases. >> i know. i meanis up 60% year to date into this number phenomenal camps 19% people were thinking 10, 11, 12%. e-commerce, people thought 50, 60% growth 80%. the problem with the stock is the valuation. i don't own it i own nike and vf corp. names where i think there is better value. but there is not one blemish here and congratulations to this management team. >> let's bring in stai stacey with it lit, she follows the retail sector, lieu lemon very closely, sw retail advisers, welcome back to the show what's going on with lululemon relative to what's going on with

the rest of detail >> what stands ut, the comps u are high double digits when people were looking for high singles, low double digits i think the key here is given to the rest of retail their store comps are down 17% because if you have been to the mall recently they gave you a cheese cake type of factory buzzer and tell you to go to the mall and wait two hours to be let into the store. they have a capacity problem as they are only letting a nul small number of people in the store. that's different than a demand or traffic problem i think that's a big opportunity. second of all, sara, they are finally offering larger sizes. that's one of the big opportunities to hit their shelves as the average u.s. consumer is a size 16. until now they were only offering up until size 12 with a few 14s mixed in. >> stacey, what's your take on the mirror acquisition will we see that drive sales of

the apparel? or is it just more of a stand alone business that could do well with some lululemon branding >> oh, no, wilf, i think they will absolutely integrate it and use it as a tool to sell i think lululemon is building a health and wellness ecosystem as so many brands are trying to do. it is a strategic acquisition and a way to speak to the consumer in a different way and start to offer all sorts of different product lines. we have seen lululemon extend out in the last years into different products i think you are going to see them continue to evolve in terms of their offerings over time. wanted to go back into the extending out into bigger sizes theme. bigger bottoms, bigger bottom line have they talked about this are they trying to go after a different consumer here? if so, does that consumer know because it was traditionally -- i mean, really tight yoga pants.

and i think we have they have had the prior founder has put his foot in his mouth saying that. >> right the old days where it was scandalous to talk about larger women wearing premium brands of tight workout leggings but that conversation has completely changed i think say that lulu was perhaps a little late to the game versus so many other brands like ari, and even hollister which was one of the first to forge ahead in it ironically considering where they came from i think over the past year they have talked about it they did talk on the last conference call that they were introducing size 20. and by the end of 2021 it would really be rolled out does the customer really know about it yet no i mean it has really only shown up on the shelves in a small way in the last kind of three to six months our survey showed that they are in stock this time last year on bigger sizes was 2 to 4% of what we surveyed.

now it is up in the 40s and 50s. that's going to make a difference >> citiesy great to get your commentary on the surveys you have been doing. the stock up 2% after hours. it has had a 60% run this year oracle earnings also just out. let's get to eric chemi with those earnings. >> oracle eps beating by six cents. 1.06 adjusted eps. street was looking for a dollar. but the revenue is exactly in line, 9.80 billion that's what consensus was looking to you can see the stock down non-depth operating margins jumps from 42 to 47. total quarterly revenues up just 2% on last year. no mention of guidance on the earnings we will see what they say on the the call >> eric chemi thank you. 1.2% lower on the results, mike. i want to hear what they are thinking about tiktok and whatever happened to that deal i am not sure they will get into

that on earnings but that was the biggest story for oracle for a while. >> it was. and beyond that same old steady story. not dazzling the stock has been sideways and trades at a discount compared to the rest of software >> oracle down about a percent or so in after-hours trade stephanie stay with us, after the break we will come back to you for costco's numbers due out any moment now airbnb shares price sky rolkting after the ipo today ady skt, venture capitalist brletu will join us on whether these valuations are sustainable. before we talk about tax-smart investing, what's new?

-well, audrey's expecting... -twins! grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust. ♪ we'd be closer to the twins. change in plans. okay. mom, are you painting again? you could sell these. lemme guess, change in plans? at fidelity, a change in plans is always part of the plan.

welcome back airbnb opened at $146 per share, more than doubling the $68 per share price set for its ipo. that price of course had already been ratcheted up anyway it comes after doordash had a similar style performance yesterday on its debut joining us now to talk about these sky high valuations bradley tusk of tusk ventures. great to see you as always pretty ordinary extra these moves over the last couple of days what do you make of it >> i am thrilled for hymn them it is great news if you are an investor with these companies it is hard to fathom the valuation of this

company more than doubling overnight. they are obviously night twice as good or valuable as they were 24 hours or 48 hours ago but it makes for kpirting tv. >> it certainly does and profitable investments i guess as you mentioned at the top. bradley, does this now spur on any other company that has been vaguely considering an ipo that operates in the space? does it spur them on to get their ipo going as soon as possible when that happens, do we start to get to the position where supply outdoes demand? >> yeah, it may be not unlike what we have seen in the spac market where there was a huge demand for spacs and they all did really really well and now you are starting to see some spacs be pulled back or maybe not even raising what they need to raise because the supply outstripped the demand that is definitely possible. with that sad, from a macro

standpoint, clearly what the market is saying is we are happy with the way things are going in washington now, the way they are going to go. we are happy the vaccine is here and so those conditions should exist for a while. so if you are a tech company with something really valuable to offer the market and you were planning on going public anyway in the next 12 months it might make sense to do that. >> what do you think, bradley, airbnb needs to do to happening on to this 100 plus billion dollar valuation. >> i am not sure there is anything they can do to hand on to it. it is run by smart people who have been working hard if last ten or 12 years. this is not all of a sudden. what is good for them is now people are receiving vaccines in different parts of the world travel will resume again you could also see a possibility where once some people have had the vaccine and not others they

are not only willing to travel but they feel safer staying in a airbnb than in a hotel that may be enough to have decent numbers the next quarter or two to keep the stock price moving but it is hard to imagine sustaining this level. >> what do you think about the fda and the state ag moves against facebook was this expected? is it likely to be successful? >> i think it was northwest. the ftc and the states have been working on this for a very long time the politics are such that -- facebook has done a great job talking to both sides. republicans are convinced that facebook is out the get them and democrats want to regulate facebook, too. as a result there is going to be a huge amount of pressure on both the 48 states and territories plus the ftc to drive this to completion, which

means separating what's app and instagram and facebook i don't think there is any settlement in sight and facebook can sustain with a slap on the wrist for a long time. >> bradley, my question on this is doz the feds and the states go after the wrong battle? they made the ballot about previous acquisitions and really focused on what's app and instagram, which might be hard to force them to break up given the ftc had approved the deal. i mean there are so many other areas that people are critical about when it comes to facebook and privacy and selling user data did they choose the wrong battle >> i questioned whether they had really good legal grunds on the other fronts from a policy standpoint you could see congresstrying to do something about section 20 which was the facebook-related issue or privacy or not allowing libra to move forward.

lots of areas for potential regulation but i assume the ftc lawyers said in terms our legal grounds to win a case in court we are more than likely give them lever to force a settlement with facebook this is where we have to attack. >> moving back to the ipo, do you think gig economies should be valued higher uber as an example going doordash yesterday. >> no. look, uber is still not a profitable compaprofi profitable company they have been a public company for a while. until they do. it is hard to argue why anyone should be excited about buying uber no i mean only companies where you could look at it and say there is some rationality to it would

be companies for whom companies permanently changed consumers' behavior zoom is likely to be used even when the vaccine is fully in place. doordash -- certainly people used it a lot more over the last nine or ten months how much will that continue once people can go out for food again on their own we will see. >> i am not sure that uber not being profitable thing stands out or holds up because 80% of companies i think that have gone public in 2020 have not been profitable and there has been a ton of money thrown at them nonetheless. it could be the bubblitious factor but it also shows you that that's okay. >> yeah. the question is for how long uber has been a public company for i think 18 months, maybe

longer yeah, the market clearly has said as long as we are excited about your growth prospects, you don't have to be profitable right away but at what point does the market say, look, you are not profitable i am not sure there is a path to profitability. keep in mind when uber won the prop 22 fight in november and there was a spike in the share price, it didn't make them a more profitable company. it just eliminated another cost that would have made them even less profitable and caused them to lose even more money. that's the question. how much patients do investors have and at what point do you look at the business model and say if you arenot profitable today, it is hard to see a path where you are going to be comfortable any time soon. >> a big question. bradley tusk, thank you for joining us. we are just getting costco numbers coming out eric chemi with those numbers. >> that's right. $2.62. that's the eps that costco is

putting out. you are also seeing an reference beat here. $43.2 billion, the street was looking for $42.4 billion. the company reporting $212 million pretax or 35 cents per diluted share of an expense for covid-19 premium wages certainly impacting the bottom line there at 35 is he then the net sales labor up 17%. total company comp sales up 15.5% from a year ago in this quarter. sara, back to you. >> eric chemi, eric, thank you we saved stephanie link for her reaction here. one of your favorites. you have consistently liked it it has done well it is not having a big move. i mean this was expected wasn't it? >> definitely expected they are one of the companies that report same store stales on a monthly basis. we know that number. looks like it was in line.

canada also in line. international strong but again in line. e-commerce sales of 82% was very strong momentum continues there very much so. the biggest number i am going to look for and listen for on the conference call will be the membership fee revenue we are looking at $860 million that's the be in they have to beat or come in line with. that's the reason you own this stock, the recurring revenue, the membership fees and the renewal rates are so high. this is a great company. it acts like a consumer up staples. it is expensive but i just got a 20 sl share dividend i am going the hold it i right sized the position because i have had a nice run and it is important to make profits, but this is a corps holding and a compounder. >> treat for you our viewers we have costco's ceo on the show on monday to talk about these results and their path forward

it is a rare interview he doesn't do a lot of tv. we are proud to bring you that monday at 3:00. >> i can't wait. >> stocks closing lower for the week -- stocks closing lower for the day i should say, thanks, stephanie. up next, mike mook looks at rising investor sentiment and how it could impact the market as a reminder you can waalys watch or listen to us live on the go on the cnbc app we'll be right back. i felt like... ...i was just fighting an uphill battle in my career. so when i heard about the applied digital skills courses, i'm thinking i can become more marketable. you don't need to be a computer expert to be great at this. these are skills lots of people can learn. i feel hopeful about the future now. ♪

we have to find somethingust else. good luck!ut it. what does that mean? we are doomed. [ laughter ]

that's it... i figured it out! we're going to give togetherness. that sounds dumb. we're going to take all those family moments and package them. hmm. [ laughing ] that works.

welcome back let's have a look at how we finished the day on wall street. the dow and s&p beth fractionally lower the nasdaq up about half of 1% russel, as it has been of light, up a percent all of the indexes well off the lows of the session which came near the open. broad com's numbers are out. josh lipton has those for us. >> reporting q 4 eps of 645. revenue, $6.47 billion -- at $6.43 billion. looking ahead to q 1 they are calling for $6.6 billion in revenue. semiconductor shrugs $4.83 billion. infrastructure software $1.64

billion. leadership changes tom courthouse, the cfo has been named president of the new infrastructure software group. kristen spears currently vice president will assume the role of cfo of broad com. heading into the report the stock was up 160% off the march low. jumped 15% in november lower here in the after-hours. conference call is at 5:00 p.m. eastern. back to you. >> josh thank you, josh lipton. let's go back to mike santoli now for a look at investor sentiment give us a checkup on where we stand as we pull back from the record highs >> relevant right now. the last weeks we have seen signs of very, very happy sentiment getting to some extremes this is the american association of individual investors polls. it goes back to the late '80s. it has good history to it. what is fascinating. look at this period here in the second and third quarters when the s&p 500 was this the process of going up 60%.

retail was fighting, fighting, this was the percentage of bulls, around 30% and below, past the election, the vaccine news, fine, i like the market now. seasons we jumped above 50% that one week the market hasn't gone anywhere on a net basis. what does it mean? it is somewhat contraryian but this contrasting responses that was after the 2016 election. that wasn't a time to sell the market however here in late 2017 into 2018 it was a time when the market was ready to correct. it is one input and shows you the background conditions and susceptibility to surprises. look at the goldman sachs composite of sentiment readings. it shows where you we are right now. the average is in the 70 rz percentile of historically readings meaning they are more bullish and positioned than average. the volatility index is not as

low as it would be at a typical peak and certain hedge fund strategies are definitely not all in, quantitative systemic ones that's what we are waiting for sentiment a all aboard the rally for the most part that that you in and of itself does not tell you it is don't. >> you saying everyone likes the market -- >> people generally like the market they definitely have raised their sights for what the market ought to be doing next year. i think what it means, you could have a smaller negative surprise that causes an outside air pocket in the market than would be the case if everybody hated the market and was underinvested. that's contrast at this point. but it is not as simple let me take the other side of the public mood every moment. >> most of the recent spike came after the election when wheat the late august and early mid october pullback we

weren't that bullish in terms of sentiment at that point. >> that's right. remember, we were very nervous about the election, are we going to have a result for months? then in general it was not -- but you saw other speculative behavior, throwing money into nasdaq stocks flows into the nasdaq 100 were extreme and the speculation which is going on right now was going on back then, too. it is not universal and not every signal is going to fire in the same way but retail sat it out until the last several weeks. still ahead counting down to the fda committee's tevo on the pfizer coronavirus vaccine they have been meeting all day what to except when we return. new projects means new project managers.

you need to hire. i need indeed. indeed you do.

the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home.

welcome back time for a cnbc news update with sue herera hi, sue. >> hello again, wilf hello everyone in the wake of george floyd's council the minneapolis city council has unanimously passed a budget shifting millions from the police department to violence prevention and other programs a proposal to cut the number of police officers was removed from the final budget. >> boston's commuter rail services temporarily slashing the number of transit trains it runs each day by more than half because of a worker shortage because of rising covid-19 cases. yesterday mass transit leaders from around the country asked congress for at least $32 billion in aid to keep the buses

and trains running ohio's governor is -- and mark cuban and the dallas mavericks are getting praise for giving longtime guard jj brea a quaurn teed $2.6 million contract and then releasing him a month later. he gets to keep the cash it is being seen as a reward for his time with the team including his part in winning the 2011 championship you are to date guys that's the news update sara, i will send it over to you. >> sue, thank you. disney shares falling from a record high as investor day kicks off as we speak, up next jim stewart who literally wrote the book on disney wants to hear about the company's strategy on streaming and how sustainable the growth is. we'll be right back.

welcome back disney kicking off investor day moments ago. the company expected to lay out

its streaming for its upcoming slate of movies among other things the stock has been on a tear rallying 27% since november after beating fourth quarter expectations and reporting nearly 74 million subscribers on disney+. let's bring in jim stewart, wrote the book on disney obviously the stock is at a record high so investors are pleased. but also hopeful for the streaming product. what do you think that the executives need to communicate today around that. >> i think there will be key points coming out today. i am really interesting to see what they reveal certainly we are going to want the update on the number of subscribers which has gone incredibly well. looking back at the year, disney pulled off the pivot to streaming. it was huge gamble investors were very worried. it has been a big success.

the stock reflected that secondly, what is their distribution model going to be at&t warner shocked everyone recently by saying they are abandoning the theatrical release window and going straight to their streaming service. nobody thinks disney is going to do that or needs to do that. but it has put a spotline on the incredibly intriguing question in this new world how to you maximize frechb that content i think that's will be the -- >> disney had -- >> go ahead. >> sorry i didn't mean to cut you off i was going to add that disney experimented with this during the pandemic with mulan. >> right. >> what do you think of warner's decision they are getting a ton of blow back from cinema there has been an underlying buzz about warner that the at&t people don't really know how to run an entertainment company

the way it was rolled out and the blowback from it is kind of reinforcing a lot of those ideas. even if they were going to do this, they didn't do the hand holding in the creative community. they didn't get the word in and out a way that would have minimized this i do think disney said they are going to sale board mulan and they were charging a premium to get that directly on streaming that's totally fascinating new model here when you think about it, isn't it strange that all movies when you went to the theater cost the same, whether it was a super high demand blockbuster or a narrowly targeted art philip you know, you paid one price they are really in the position now to test different pricing models to see how they can maximize revenue using this combination of theatrical release and direct to streaming. and then restreaming or charging a premium. i have to hand it to -- you know, disney pioneered this very

sophisticated pricing model on broadway they do know a lot about pricing of entertainment products. and it will be fascinating to see what they say about mulan and how they intend to address this issue going forward. >> i don't think we got to the mulan part of presentation but bob chopak revealed that disney+ has 36.8 million subscribers during his presentation. jim, to your point about pricing and how that could change, clearly, warner brothers managed to annoy certain members of their talent pool more than disney or universal has. that said, is now not the time to experiment, try something new? it is not like they are making money this the box office the regular way charging people the same price for the ticket. are you not surprised that everyone has gone so annoyed about this this year is the year to try something new? >> it is a great time to try

something new, in any event, but the pandemic is going to end and people are going to go back to theaters if you lock at disney's earnings before the pandemic -- even this past year they made $2.5 billion in earnings on their theatrical distribution which is an impressive distribution. warner has given it up warner is in a weaker position look at the subscriber numbers, disney laebld itself as one of the surviving treatmenting applications warner hasn't achieved this yet and they are using it as a lure to get people. disney is stronger it is not going to have to do that given it has 86 million subscribers. willet get to the netflix level of almost 200 million globally is this that's still a big question but maybe they can. >> disney is moving higher by 2.25% after hours, after that number of 86.8 million disney+ subscribers. jim stewart thank you for

joining us. up next the race for a vaccine. the fda panel meeting today crset pfizer's vaccine amid inead cases hospitalizizations and deaths. the latest when we come back we'd be closer to the twins. change in plans. at fidelity, a change in plans is always part of the plan. but before we sign i gotta ask... sure, anything. we searched you online and maybe you can explain this? i can't believe that garbage is still coming in. that is so false! frustrated with your online search results? call reputation defender today to join tens of thousands who've improved their online reputation. get your free reputation report card at reputationdefender.com or call 1-877-866-8555.

an fda panel is meeting today and will vote on whether or not to recommend approval of pfizer's covid vaccine for emergency use. meg tirrell has more on that for us meg, when can we expect a

decision >> we are expecting a vote from this committee really within potentially an hour. they were scheduled the wrap up this meeting by 5:15 predictably they are running behind schedule but they say they don't want to go as long as their last meeting which went until 6:45 p.m this is live shot of what is happening right now. they are all talking right now, the panel of outside advisors. this is when they get into big questions about the vaccine. pfizer shared a piece of news about plans to start trials in kids aims 5 to 11 in april of next year after they get data from trials if kids ages 5 to 18 phazer is asking about trials in people aged 16 and older it was in response to a question whether kids need to be

vaccinated in order to reach herd immunity overall as a society. another major topic that came up today has been the alearningic reactions in two health care workers in the uk when they got the pfizer biontech vaccine earlier this week. the question is, should people with history of severe allergy be excluded from getting this vaccine as they investigate this further? that was a key topic of debate the fda said it asked pfizer and biontech to include that as something they monitor closely as a potential risk of this vaccine. this vote could come real at any time in the next hour or so. we will bring you the results of the vote when we get it. after that, the fda has to decide about issuing this emergency use authorization that could really happen at any point. perhaps tomorrow and after that, within 24 hours, operation warp speed says distribution of the vaccine will begin simultaneously annous community of advisors to the cdc

will meet. we could see this out next welcome back. >> how much of the decision making is made today, now. they have digested all of the data, been thinking about it for a while now. do they come into a day like today 90% decided already or what >> the question they are actually asked to vote on is simple do the potential benefits and known benefits outweigh the potential and i don't know risks here it would be surprising if they hadn't decided about that already but there are a lot of issues to discuss, about how this emergency use authorization should be issued these are the discussions happening. then we will hear from the fda how they process this information and what kind of emergency use authorization label, directions, they give for this vaccine meg, i have been wondering how much of what we are seeing right now is traditional with -- i know this is all very unusual

circumstances. but i am asking because i am wondering if they are putting up a show at all with this outside advisory council, the all-day deliberation to show americans, a, that they are doing their due diligence and b, that this is a now canada have already approved this vaccine so why aren't we going faster? every day matters. >> it's a great question unfortunately, i have sat through a number of these days i say unfortunately because they are long they can be boring this one is not boring in is a normal process the fda does this is standard procedure for the fda. what is new is they are putting this on youtube to stream. at one point there were 16,000 people viewing

and fda has reacted to the criticism. they said going through all of the data and doing this trant -- transparently, but they say they will do this with expediency >> more signs of exuberance in the ipo market when closing bell comes back ailstorm hit, he needed his insurance to get it done right, right away. usaa. what you're made of, we're made for. usaa

usaa. what you're made of, we're made for. keeping your oysters growing while keeping your business growing has you swamped. (♪ ) you need to hire i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base so you can start hiring right away. claim your seventy-five-dollar credit when you post your first job at indeed.com/promo but inside... there's advanced research, modeling and refinement. constructing funds that don't simply follow an index. but explore new terrain. helping you fill portfolio gaps. connect to client goals. and strengthen confidence in you. flexshares. powered by over a century of investment expertise. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

for a prospectus we have to find somethingustn. else. good luck!ut it. what does that mean? we are doomed. [ laughter ] that's it... i figured it out! we're going to give togetherness. that sounds dumb. we're going to take all those family moments and package them. hmm. [ laughing ] that works.

up next, a new push pore diversity. a coalition of executives. we spoke to them last half hour. we will bring you the highlights when closing bell comes right back ? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most plus $0 commissions for online u.s. listed stocks. don't get mad. get e*trade and start trading today.

just recapping some of the news today the 110 coalition, 37 companies coming together to address racial inequality. the goal -- speaking out about the initiative with us last hour >> what we have here is a failure of the education to employment pipeline in this country. what we want to do with 110 is to address that by making it a skills first hiring paradigm,

not a credentials first hiring paradigm as long as you have credentials first, there will be disproportional effects on african-americans. >> this is taking a category of americans that we need the employees and we are giving them a chance and pathway into the middle class, often first generation that they often would not have had these are talented people but they need a different pathway in and a case where the education system today hasn't been able to do this. >> don't miss the path forward special, race and opportunity in america. taking a closer look at the latino community and as we look ahead to tomorrow in trading. i'm following disney their headlines coming out of the investor day that could impact the dow. disney announced a number of

movies that will go direct to the consumer and the headline, 86.6 million streaming subscribers. that number was zero just over a year ago if you were a mom at home with two little kids like me, you have to subscribe to disney plus i can't tell you how many times i have seen "cars" the movie in the last six months. maybe 500 times. >> no way. >> they are money machines >> the profit centers of these are not operational with the exception of the cable business. it is more like 120 million subs if you consider hulo and

everything else. disney gets credit in advance for getting this right i don't think it will change, but it is an expensive stock relative to where it's trading >> 500 times would be twice a day. that means samuel is watching in the morning and you in the evening. >> i'm exaggerating, but it is a lot of cars. >> coming up now is "fast money. >> i'm melissa lee tonight's lineup -- let's get straight to it disney's streaming service front and center and meeting staggering numbers let's go to julie who has all of the details. >> daniel is in charge of the distribution of the content saying