50,000 shares of volume and call it one of their best ideas. they reiterate the outperform and the price target goes to 43 pi 43.50. joe, andrew, becky, i will send things back over to you. >> great, dom. thank you. obviously, it is first day of the rest of our lives, right? vaccine day. let's hope it goes well today. guys, we'll see you tomorrow. make sure you join us "squawk on the street" is next. good monday morning, welcome to "squawk on the street." if you're coming off the first losing week in three, but with a bounce as pfizer's historic vaccine rolls off the line going to hundreds of locations around the country. got a blitz of m&a. the largest vaccination effort in history. we will watch pfizer's logistics

with the first jabs expected later on today. plus, cyberbreach. the u.s. treasury and commerce departments were victims to a suspected russian hacking campaign. and as carl said, it is truly an m&a monday. a lot of deals on tap. of course, the biggest in pharma and we'll go to banking and gaming and real estate. oh, man. carl. there's a lot of them. we'll get to them all if we can. >> yeah. yeah. a lot in your universe today, david. let's start with a vaccine. we spent part of sunday watching some of the roll of the deliveries beginning to leave kalamazoo making their way around the country. azar on "today" show saying the general population might get some access to these late february, early march. that's a little earlier than we heard before. >> i think there are a lot of people who just feel this something that may, june, july, it's obviously not. we haven't really heard from

moderna yet. i think moderna will be great. a mrenplethora. i'm predicting vaccine glut by the end of the first quarter because i'm still banking on j&j. as you hear these things you're thinking, maybe i should make some calls and cvs will have it sooner than i thought. maybe there is a line. we don't know and the state by state thing is just opposite of the way the polio vaccine works. but, carl, no doubt about it that this is a historic moment and everyone should be, i think, a little bit more happy than they were say before november 30th when we didn't know that we were going to have such good results here. david, you disagree? >> no, of course i don't disagree. i thought carl might chime in there. i don't disagree. it's a momentous day, we all know that. we continue to grapple with a lot of questions to your point, jim, is how quickly it will be distributed. how quickly we'll get back to

some semblance of normal in terms of overall behavior. couple that with the continued back and forth from the senate and the house in terms of any real, you know, hope for relief bill prior to at least president-elect biden taking office five or so weeks from now i guess. still a lot of things we're dealing with, jim, including raising case counts and death from covid and lockdowns. i mean, here in the new york area, new york city restaurants indoors now. not going to be open. >> new york city is adopting a posture that i think the rest of the country could which is that the current work the nwho is almost there. cdc almost there. the current work that we're discovering is that restaurants are the most dangerous place because you can't wear your mask and unless the ventilation is correct, it's an incubator. one reason i closed my place is the work is just so, it's, as

andrew said, it's science. there's no doubt about it. the work is extraordinary in terms of finding out where people get it because it's basically a superspreader event, david, when you're in a restaurant. it's terrible. some solve the problem because he spent a huge amount of money making it so the air circulates. but it has to do with air circulecir circulation, david. most people will follow new york and what you'll end up with chipotle and mcdonald's and you'll see companies that know how to do take out winning because you can't have people in your restaurant. you can't. >> although, carl, to be fair, indoor gatherings appear to be by far the most significant factor in the continued spread of the virus. although as jim says, restaurants are up there but percentage wise, at least in new york from the numbers that we

were able to see that the governor released i think it is simply indoor gatherings and then, unfortunately, still health care workers, as well. or health care world where the rates of transmission are still high. >> you know, carl -- >> struck by what he said on friday is that is that we can't ask restaurant workers and owners to baear the brunt of th collective action we need to take. compromised stimulus proposal broken into two parts. the less controversial at the front end. >> one of the things that secretary mnuchin made a point of at the very beginning is we need business interruption insurance. it's not the fault of the restaurants. they're doing their best. they have to give these restaurants some relief or we're going to deal with national chains that have very good

balance sheets. the smaller guys, theirer a ert to go out one by one. any intent to make it intent with flaps but doesn't open, that's going to be shut down, too. those are big, big places of incubators. only if it's wide open on two sides would you feel very confident. so, i think that people should recognize that dr. gottlieb said he's not going. a restaurant that could meet these criteria and couldn't do it. david, believe me. i'm not bragging, you know what i mean. i am lucky enough to have means. but, david, most of these guys it's like that week's payroll. they will go out one by one and one and will end up at the end of this with something we all really enjoy in every city gone unless we get relief. >> no doubt. and the employees that go along

with it, don't forget that. it's not just, obviously, those of us who enjoy going to a restaurant, but all the people that work in them. you know, it is a rolling crisis. still, jim, to your point, although it does not appear to be affecting overall, well, i shouldn't say, you know, spending. i had david berman on on friday. retail sales numbers, for example, going to be record. record. so, it doesn't even though we have this part of the economy that is suffering and the workers who are associated with it, it does not appear to be affecting spending. >> no, but there was a fantastic interview this morning on worldwide exchange where it was a restaurant that has a very good following in new york saying, by the way, you can't make money with doordash. you can more of a pr thing to stay in business. and i find that to be unfortunate because they bid up doordash substantially and

doordash also does very good coverage in the suburbs. but that is many restaurant's experience. you are really just doing it in order to be able to stay in business and pay your employees. but because you don't make any money, that's going to end up being a nonstarter, too. so, everybody who is all excited about doordash. i really like doordash. you have to understand the companies themselves don't make much money on deliveries. they can make some money on takeout, but you have big rent. it isn't like you go, you can't go to your landlord and coned and people who are any of the bills that you keep going and say to them, you know what, guys, i'm in a jam. some landlords are kind enough. but what you're seeing is a gradual let's say destruction of something that many people live for. which is that the night out after working so, so hard and what david said is so true. the workers who are just hand and mouth for heaven sake.

what are they going to do with those people? unemployment. all we're doing is asking for these to be open by may/june when everyone has a vaccine. they'll get wiped out. you can't restart them. moth-balling is expensive. >> it is. on friday i think you know i tweeted about the 21 club. >> that was unbelievable. >> man, what an outpouring there. now, again, this is a different situation, but somewhat similar. it's owned which is controlled by lvmh the tiffany fight is controlled by one of the richest men in the world. >> that doesn't mean if you can't open and don't see ann opportunity to open for the future, carl, you're not going to tell all your 148 employees, you're gone. you're fired as of march 9th. and, yes, belmont tells me at some point they will try to reopen. but for the foreseeable future, and that was their word, that restaurant is closed. >> well, guys, solving that

problem is going to depend on a couple of things. one, of course, is the acceptance of a vaccine. we did get some decent poll numbers out of abc suggesting that eight out of ten americans are interested in getting it and logistics and that's why we're going to meg tirrell this morning. >> hey, carl. a thrill of hope is how i saw one analyst from raymond james put it this morning. these vaccines started to get shipped out over the weekend after getting the fda's nod on friday night. 500,000 doses started shipping from kalamazoo, michigan, yesterday from pfizer's plant there. 650 workers at this plant. about 3,000 are irk wiworking o. this is just this week. this is going to continue, of course, until pfizer distributes all 1.3 billion doses it plans to throughout next year. half made in the u.s. in terms of the number of locations in the united states this week getting shipments. 636 total locations will receive those shipments.

those are designated by the states. 145 places get their shipment today. 425 tomorrow and 66 on wednesday. we could see the first health care workers getting their shots within hours this morning, guys. of course, the key question as you were just talking about is when will there be enough for everybody? we talked with albert bourla this morning with the supply negotiations on the united states. here is what he told us. >> i think the right now the u.s. government asked us for an additional 100 million doses and we are in a position to provide them but we are irk wiworking te frame. we can provide a lot in the third quarter. the u.s. government wants it in the second quarter. we are working collaboratively to find the solution and reallocate those hundred millions in the second quarter. but we haven't signed an agreement. not an agreement yet. >> so the u.s. government has already struck a deal for 100 million doses of pfizer's

vaccine. here we are showing you the historic vaccine race that was in the year past and just the record time that pfizer developed this vaccine. but in terms of the supply of these vaccine doses, working on that and trying to get it ea earlier than the third quarter for the additional hundred million doses. and we'll watch that vaccine whole process play out this week with the fda, as well, with documents expected tomorrow. the advisory meeting on thursday and if those fda acts in the same time period we could see the emergency authorization use in the u.s. as soon as friday. guys. >> meg, let me ask you, i have been hearing a lot including a smart guy the public health at harvard about the notion of the strip that you would

catch it and it is being used in some countries for phenomenal results. what is the road block in our country for doing this? >> well, there could be a regulatory road block here in terms of concerns that these tests, which would usually be antigen tests taken at home and you wouldn't need a prescription and you wouldn't need to get them through the mail and you could buy it at your pharmacy and take it yourself and you wouldn't have to send it to a lab to be done. concerns about the reality of these tests. dr. mena has talked about how you can use them in the right way and repeat your test if it seemed funny. ways to use them beneficially. but, you know, concerns that it wouldn't pick up the infection at the right time. real big debate over this. he believes that this would be incredibly helpful faster and that we in the united states could make tons of these so that everybody could have them. >> thank you, meg. >> meg, it's going to be a

fascinating rollout. logistics are key. our meg tirrell on pfizer's historic day today. the m&a announced

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it's not about the toys or the ornaments but about coming together. santa, santa, you're on mute! just wanted to say thanks. thanks for believing.

as we have been saying, a fizz busy day. a plethora of deals. the biggest announced on saturday the giant pharma deal $30 billion which is what it was worth when it was announced. astrazeneca's stock price might not be quite worth that but you can see shares of alexion are up and entering a definitive agreement in which astrazeneca will be buying alexi ooon. american depository shares and, again, we will keep an eye on those because they did appear to be down as much as 6%. no real overlap between these two companies. i'm told by the way that they did begin speaking in the summer. let's call it late summer of this year. and that the approach was made by astrazeneca and, clearly,

they made a lot of progress. now, could there be another bidder some would say because perhaps the premium not as large as some might have anticipated. seems unlikely. doesn't appear a competitive process in any real way but at the same time, jim, you're talking about astrazeneca which is more highly valued than the companies it competes against and to compare that in conjunk wi in cash. a $6 billion revenue company, obviously had important therapies and rare disease and chief one amongst them is the antibody that is used in a number of different treatments. >> you have to hope the pipeline people say is strong and make this deal worth it. i also think people will say, well, astrazeneca not doing that well in the vaccine business. so, it's got kind of a double

negative. i feel that these companies, this company has done nothing for years in terms of stock price. >> which,ium are e iu'm sorry. >> alexion. >> m&a candidate and then other regulatory issues for place management which has cleaned everything up but there are shareholders didn't seem crazy about their acusition or capital and remember the stock went down when they bought the smaller company what was the name of it, portola. >> and elliot is a significant owner. >> i have to tell you, i think this is a gift for shareholders because the reason why i think it's a gift is because they've been suffering but also there is a pipeline here. and the pipeline was about to come to fruition and this one drug is not something you buy a company for. i don't understand astrazeneca. i don't think a lot of people do. the stock is terrible and talked up the vaccine more than anybody. i felt they had been other than

moderna and now what is going, would you take their vaccine after what is going on? no. >> yeah, the data that they shared and the way they shared it was a little unsettle,iunset guess. they went with the half dose and that was odd. as for alexion, it has an expertise in rare disease development and commercializati commercialization. they are talking about the fact that they have 11 molecules across 20 clinical programs and a spectrum of different indications. again, they do have products on the market. this is not $6 billion in revenue. guys, we have other deals to get to. let's quickly mention that bank deal. huntington bank shares, i don't know, jim. i feel like we're on mad money here in the lightning round. do you anything about bank shares? >> this is a significant deal for this company. you know, quite large transaction. about $7 billion or so or roughly there in terms of what

it would amount to. >> tcf is a very well run company. i think other than first horizon there have not been a lot of deals. i think this is good news. good news. carl, go ahead. >> carl, let's get back over to you. about 40% of its size is tcf. does give you an idea of the size there. >> as you're talking governor cuomo of new york holding a press conference and embedded within that press conference. this is a live shot that we're about to take a look at of the first vaccination in new york. two northwell health employees have volunteered to be the first to be vaccinated. one is chair of emergency medicine at lennox hill and i believe this is sandra lindsay at long island jewish medical center. >> thank you. >> good morning. >> good morning. >> how are you feeling today? >> i am feeling great.

>> i'm ready.

how are you feeling? >> i feel great. >> sandra, you didn't flinch. i take it that -- >> historic moment, jim, is an understatement. as meg tirrell reminded us april 23rd was the first patient dose in the trial and here we are december 14th. >> go back to look at the literature of when this started. people were saying if mumps took four years, this could take a very, very long time. that's why i regard as miraculous. a lot of people who are very cynical and have reasons they wouldn't take it. those are people who are going to get covid because this thing

is all around us. i cannot believe, david, how many people i know right now in the town that i live in who have covid. and it is very, very concerning. and i think a lot of people feel that way. so, this is a race and we need everybody to take this thing. >> yeah. that was a great thing to watch. >> wasn't it? >> even though i don't like needles. still great to watch. >> remember she didn't like needles. >> let's not bring that up in conjunction with this. >> right. >> you mentioned the needles. fantastic ad by the hospital that applauds all these workers. i mean, i don't have any idea how they go to work every day. >> i don't know. to your point, unfortunately, they're dealing with as bad as it has been in many areas and stretched as thin as they have been. so the fact that they're now able to get the vaccine and,

obviously, this lady is going to need another dose in three weeks, four weeks. >> has to have it. >> but the fact that it is available has got to be a huge, take a huge psychological burden off so many of them who we are so in debt to. >> came from one of their plants. we know how hard it is to get it. brian sullivan is doing excellent pieces on how difficult it is to get it to rural areas, carl. >> we're going to check in with brian a little bit later on this morning, guys. we'll take a break. a lot of calls to get to a lot of calls to get to including mcdonald's, as

♪ ♪ ♪ ♪ ♪

we have about two minutes before we start with trading on this monday morning. let's squeeze in a mad dash, mcdonald's. >> the evidence lab is cooking up the juicy 2021 upgrade to buy mcdonald's. the stock has lagged and some new things that has menu

innovation that could be important and technology putting to work and believe it or not there is a new chicken sandwich. we have seen what popeyes did with its chicken sandwich. its arer been fabulously well received. this is a good note but i think you could wonder whether we should be in something as defensive as mcdonald's with the world opening and i come back and say, get used to eating it, mcdonald's, because your restaurant is going to be closed. >> still. for the foreseeable future. >> for the foreseeable future and then it is hard to restart a restaurant. i think chipotle has been a big winner this period. i think cheesecake could tough it out. but i think that your local coffee shop that was featured by jerry seinfeld, i don't know. >> yeah. it's rough going. it's rough going. even if you built something outdoors that he's heating. when it gets cold, it is cold.

>> then the department of everybody coming after you. transportation, public health. they don't want it. >> i don't know, they want it. carl, they want to keep them in business in new york, for example, and other urban areas and in l.a. where they've closed them, as well. it's not easy. >> it really isn't, guys. to jim's earlier point. the economics of delivery even with all the tools we now have, jim. the margins are not what they are and you can use the same silverware and plates, put people in the building. >> it's the liquor. you don't get the liquor orders. >> that's right. you don't hang out for the extra hour at the end of the meal and order another bottle of wine. nice breath here 36.84, jim. interesting note out of goldman this morning. taking a look at spacs and the amount of money they are going to have to spend over the next couple of years in acquisition targets. some 60 plus billion dollars.

when we talk about money on the sidelines, that is a big part of it. >> david with ilhavell have a f. m&a activity because of spacs. i find that the lack of knowledge about how they work is just incredible. they merge with somebody else sometimes and you don't know whether they drop and then they come back and they're controlled by reddit. >> but, really, as we know, it is a replacement for going public. so, it does involve so-called merger. but really what it is is another way for companies to go public. so many of which we have featured here in the last few weeks. amazingly enough today i think we will be spacless on "squawk on the street." i might be wrong. maybe something is coming up on "squawk alley" that i'm not aware of. the company that raised the

pool, they were talking to jim coulter earlier on "squawk box" tpg one of those ev companies that went up over 100%. but this is going to be with us for a long time. a lot of fire power there for the companies that have raised the money in the capital markets and going to have to deploy it and the question continues to be, will you see the quality as so much money chases companies or will they find new places that they come from or new things to do? obviously, not just going to be development stage companies or companies looking from big companies, as well. on and on from there. private equity is a significant contributor to spacs of companies themselves. another route to take their companies public. >> i have on one of the most popular -- >> again? >> i haven't had them before. i recommended them when the deal closed. >> we had them on this show. >> that interview you did was fantastic.

you could argue i shouldn't bother except since that time from $3 billion to $30 billion. >> i know you have been focused on mad money and did one piece on it. >> a good recommendation. i didn't think it would go up ten times. in a couple weeks. >> yeah. >> but it's ev, david. >> they have a battery. it's cheaper. it's better. it doesn't go on fire. volkswagen has put $100 million into it. fantastic company but at a certain point, carl, look at the chart. people are making so much money. i'm calling it, by the way, i'm changing it. no longer robinhood. re but today is pounce here. i'm not kidding. what goldman, you know,.

>> reddit has m&a of their own. >> doing with tiktok. what do you know aout that tiktok deal? >> i don't. everybody stop talking to me about the tiktok deal and then you don't hear a thing. walmart and oracle. >> oracle is moving to texas. we haven't talked about that. >> yeah, oracle is moving to austin. it's funny, i heard they might be moving but colorado is another name. but, yes, we have this continued outpouring of companies. at least their headquarters and/or new hiring they're doing to other areas. austin is going to get awfully crowded, jim. >> one thing that is true, carl. the flow of news in december. i've never seen anything like it. look, we had the fed a couple years ago did devastating things to hurt the market and jay powell learned not to do that. and there's deals everywhere. remember it used to be handshakes and big bottles of wine and now, david, it's like,

they press a button. they do,cusign. companies are buying companies they don't even know. >> to people who engineered the largest deal we saw this weekend, the astrazeneca deal we were talking about, all done on zoom. the entire thing. every noegotiation. there was no in-person meeting between the ceos, i'm told. that just goes to show what you can do. at this point, a level of comfort now with zoom in terms of negotiating these enormous transactions where people. >> business person of the year. one of the greatest, i mean, eric is joyous. he's so happy. he loves his job. and he's done such a good job that i think that people are saying, why do i ever need to have a big travel and entertainment budget going forward? carl, i think the margins are going to improve for a lot of companies because you're not going to fly out people to shake

hands because that's over. >> an interesting debate about how sticky some of these habits are going to be. jpmorgan we believe our covid-19 beneficiaries will continue to be in the guilty until proven innocent can't. until we know what the economic loos like in april and july. >> well, i think a lot of people have learned to make a lot of money. save a lot of money. the costco really spot on. they were talking about travel. airplane tickets. how expensive they are. hotels how expensive they are and going out. drinking too much, how expensive they are. david, what you have is a balance sheet of cash that would have gone to these things that we spend on as americans. we spend a lot of money on travel. we spend a lot of money on airplanes. and, david, now it's just in the bank.

>> and those of us who are lucky enough to have, to be able to do that, though, jim, are very much looking forward to doing it again. >> you are, but you saved a lot. >> i'm getting ready. i know you are, too. just don't know when they wave the flag that lets us go. i'm running. what is the one where they run to their cars? where they, you know, where they sprint to the car and then you get in the car. that's going to be me. >> if there was a b.j.s so crowded this weekend i opted not to go, but the idea that you suddenly join costco like many people and then you decide, you know what, i don't like to save money and i don't like free sampals and i don't like to get good deals. those are the things you actually do want and i don't think you start saying, you know what i'm going to do, go back to the places i went to and paid more money and felt safe and didn't have the breath of the product. that's what they'll do. why go else where?

costco is great. david, costco is a chain and you get a membership card. >> i told you, i've been there once. >> jim senegal took me on a trip. it was a long time ago. >> carl, you know, the david, i don't know if he even uses amazon. >> we do. we use that. i just saw a stitch fix box the other day because you have been talking about that. >> i don't know. th i don't open those. it's not for me. >> how about chewy? >> no. >> they'll send you a painting of your dog. >> maybe we'll do that. >> we bought some pet toys. you know. >> my vet's not completely sold on chewy, but i know you're a fan, jim. >> really.

>> we'll talk about that at some point. >> does your doctor favor moderna over pfizer? >> jim, i did want to get you on some of the rebalancings coming up. we know about tesla going to the s&p a week from today. some new mdxs including peleton and american electric power. >> i was looking at marvel and saying, wait a second. and then, bingo. then what happens is the charts change and all the chartists get involved and people start buying fractional shares and one of my absolute favorites. the passport on to the web. it's not moving where marvel is moving. i don't really get which ones are which. but fabulous 5g and 5g i get a piece of research every day, david, which says 5g is much bigger than you realize. the total adjustable 5g.

i want to ask you something. i had peop had 5g people on las. when i was listening it's very clear, david, you might not want cable. you may just want 5g. >> yeah, if you think it is robust enough to actually provide what you need to. >> and he is saying it is. >> now, you still need the cable plan. its are e it's not like it's going from way far away. it still has to get close to your home and then get in wirelessly. using the plan. >> that's what they're saying. >> that's why the likes of charter and tom rutledge are not particularly concerned about the competitive impact over time of 5g. they'll watch and they'll see. they have their own wireless service, of course, that they're also offering that the charter and comcast and parent company and they're not concerned. let's see how it develops and if

there's something they need to do, they'll move on it. >> they could buy them. >> they could buy those companies. but you can't buy a t-mobile at this point. i keep tracking the market cap for t-mobile, jim, because it's $164 billion now. at&t $122 billion. but, they're getting closer and closer. had a good week last week or decent because i think the directv, i don't know what people are focused on. they moved past the warner thing. disney did get downgraded. valuation call from bmo this morning, but it is, well, after that move. jim, where did we end up on friday? what was the move? double digits? >> up 17. >> 17%. >> yeah. look, that was a fantastic conference. i mean, one of my favorites is this christine mccarthy who decided to stay on the cfo presents a level of rigor that most companies don't have. what are you doing? >> i'm trying to figure out.

it was up like 11%. up a huge number. >> it wasn't c, the numbers are going to be very big. >> enormous. multiple revision. >> david, you want to sell a stock that relies on theme parks three months before we're inoculated? people are going to be going to disney. >> also, they're maybe going to go back to the movies one day. >> i don't know. i'm always worried. i'm always worried in the back where you're going to get the covid. >> the chair? that's ridiculous. >> they claim to wipe them down. would you take the cruise ship with me? >> i didn't take a cruise ship before the pandemic so that's not exactly top of my list. i do want to talk to you about one of those homes that you have. >> why don't you stay in orange psa warehouse. >> i'm glad you brought it up.

public storage. who knew it was a $40 billion market cap company. elliot this morning. this is a long letter they got here with a bunch of nominees. what is interesting, jim, most people think the company has done pretty well. >> that was my impression. >> operating well. elliot seems to say, yeah, you are doing pretty well, but you still could be doing better. so even though you just put three new board members on and we kind of think. >> made a good acquisition. >> and maybe you should put more on and focus even more on spending money in the right way. >> they have new management the last two years. but the invested capital growth in the total share of return versus the ones they picked is suboptimal. but psa -- >> we're talking about the group. lsi and exr and, again, you know the company. you followed them. >> good pioneering group. >> have come on your show a

number of times. >> pioneering the group. >> really an opportunity here for improvement or a weird one for elliot to go after? >> some corporate government issues that were not fully addressed by these board members. they could be more aggressive than they are but they made a really good aqcquisition and wonder if they made the acquisition and when elliot gets involved they want instant growth and more things that psa could do and they want better governors. they feel a lot of the board members are too tied in with other companies. look, i don't think it's anything that is, they're not awful. how about that. >> right. >> they're not one of those companies that you just say, wow, that company is awful. no wonder. but they obviously could do better versus others in the group. i like it. this is a stock that i recommended in 2007 when it was probably the best performer out of the great recession. >> yeah. they do talk about what they say is lagging same-store sales growth which the company says is not the case.

we don't know if there is going to be a proxy. >> we have to stay close because it's a good, you know, i think that it could be a win/win for people. i also felt that way about crown castle. so far i have been very wrong. >> another name where elliott has gotten involved. if you just measure in terms of market cap that the companies are going after and not to mention each individual deal. we do keep a close eye on elliott. >> yeah. in the meantime, all sectors green. disney really the only dow stock lower on that downgrade. fresh closing high. let's get to bob pisani. >> good morning, carl. happy monday, everybody. vaccine hopes and we have new highs on the russell 2000 and new highs on the dow. close on the s&p. if you take a look here vaccine hopes to clear the biotech stocks and banks and energy. there's your reopening story right there. tech lagging a little bit in consumer staples lagging, as well. the reopening stocks that are moving. your cruise lines, energy stocks

like apache are really strong and marriott and hotels are all up. a lot of reopening story. why all the bullishness? the market is thinking a lot of things are going to go right. that is the problem. things could go wrong very easily and stimulus hopes and maybe one case and maybe two pieces. we don't know. but some pieces that will pass a smooth rollout of the vaccine and markets on earnings are saying a significant reopening in the second quarter of 2021 and everybody knows valuations are stretched 22 times 2021 numbers. but they say it's justified because we're going to have a historic expansion of pent up demand in 2021. this is the reasons for the bullishness. like i said, a lot has to go right here. else where over the weekend. a couple things caught my eyes. hackers getting into computers at the treasury department and else where. ouch. these cybersecurity etfs have been on fire all the last six months. huge amounts of money being put in and not necessarily saving the world and i got hacked and

rather embarrassing admission last week but nonetheless corporate america and individuals love these etfs and solar, robotics, cyber security. this is the way the public is investing. on the ipo front a great one with air bnb last week and downgrade already. remember air bnb priced at 68 and opened at 146. already got a downgrade. gordon said the valuation but when they pulled their investors they sedan overwhelming number of inesthavevestors in this stok gains. that's not a surprise given the numbers. speaking of ipos. the ipo etf is on fire. been going no where for years and this year exploded. $700 million in assets under management and rebalanced this week and people are paying attention because a lot of money indexed to these etfs these days. so they're going to have air bnb

go in their ipo on friday and doordash is going in and goodrx and nobody used to care about these rebalancings because the money was small. but now the money is really huge. speaking of rebalancing, the biggest one of all time happened on friday. tesla is going to go into the s&p 500 at the close on friday. this will be the largest rebalancing in history. other big rebalancings that ipo etf and nasdaq 100 will rebalance, as well. carl maybe $80 billion at the minimum that they're going to have to buy a. we'll keep an eye on that and hopefully no major chaos or movement but you never know when something this big goes in power. >> you got that right, bob. it is going to be fascinating. thanks. if you missed a few minutes ago a picture of sandra lindsay a critical care nurse who became the first in new york to receive

the vaccine and a historic moment and wonderful to see. we'll talk with the former fda commissioner about today's vaccine rollout in a bit. look at the bond market as we kick off a new week. treasury yield across the board and optimism around stimulus in focus and yields in europe hopes for a brexit deal as the eu and uk agreed to keep talking and that gave a big lift to the pound erasing mo students of color typically do not have access to high quality computer science and stem education. ♪ i joined amazon because

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virgin galactic is down sharply this morning. they said the test flight did not reach space as planned due to an ignition sequence that failed to complete. jim, it is coming off ten month highs from last week. >> yeah, look. this is one heavy short position. give it a couple names. it is a robin hood name.

they can't resist and this is one -- i know we are in a new world because it is not like you get institutional backing but you are going to get individuals that say, you know what? space travel, it's real. david, space travel, i don't know if you've considered it, but it goes on even with covid. unstoppable. >> like an hour, right? morgan brennan is my expert on all things space, carl. an hour or so? >> have you booked a trip to mars? >> to the edge there. >> i'm not kidding. people love it. you can't fight the tape sometimes. people love virgin galactic. >> they can get you to mars but they can't get you back. >> i don't know. >> no guarantees. >> who is there? brad pitt? >> matt damon. >> all right. matt damon, whatever tie other guy. >> the other guy. >> i love him, too. >> there's a look at the dow. up 242. need about 30 more points for a

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what's on "mad" tonight? >> the actual fiber weave that makes it so it works. we have david -- he already -- yeah. you broke the ground. we'll follow up. one of the most exciting companies i know, veru with breakthrough news this weekend to follow up on. health care. >> all right. that's a heck of a way to kick off the week. see you tonight. >> thank you. >> congratulations on your win last night. oh buddy. good monday morning, everybody. welcome to "squawk on the street." the historic monday morning as pfizer delivers the first vaccines to u.s. patients. we are watching that. not to mention stimulus talks, m&a. >> we'll keep an eye on that. the roadmap starts with the vaccine rollout w. the first doses of the coronavirus vaccine administered last hour, the

nation's largest vaccine campaign in u.s. history is now officially under way. >> meantime, what's to come for america's most vulnerable? nursing homes at the top of the list for pfizer's vaccine. got details on what's next on the hardest hit places in the pandemic. >> cnbc on the ground on the site of the first dose. the first shot of many in the coming weeks. >> we'll start with the story of the day. after months of research and clinical trials, the pfizer biontech vaccine under way. there it is, the first shot given in the last hour to a critical care nurse in queens. here's how the race for a cure shaped up over the last year. >> biontech business the first one that came to mind. we are going to cut zero corners and the fda set very high the

bar. >> we have the safety profile of the product. we are going to vulnerable population, 16 years old. a great day for science. it is a great day for humanity. >> and he was on with meg tirrell, as well, this morning, the ceo of pfizer. such a compressed timeline, astonishing in many ways. >> this vaccine development broke every record in the books in modern medical history. really the sequence of the virus wasn't known until january and we have an authorized vaccine in the first arm of a health care worker here in the united states. the big work started over the weekend in the push with the packaging and the distribution of the hundreds of thousands of doses that started going out yesterday. 500,000 doses from call ma zoo, michigan, yesterday. of 2.9 million doses expected to be shipped this week.

they will continue to work on this through the year as they get more of these doses out, guys. in terms of the plans for this week, 145 locations expected to get the vaccines today. 66 on wednesday and throughout the day today we are going to see each state have the first person get vaccinated. these are huge moments, hopeful for everybody and we spoke about this moment and how the ceo is looking at the massive challenge of distribution. here's what he said. >> i'm optimistic things will go extremely well. it is challenging to have a logistical challenge and vaccines to hundreds of countries, millions of doses and the cold chain makes it more complicated but i think we have it and i believe very confident,

i'm very confident that things will go very smooth. >> we also asked if he had a shot yet and he said, no, not yet. he wanted to wait his turn and also knows that seeing the ceo of the company that makes the shot get it will be a very big confidence booster and plans to get it soon. >> great interview. thank you for the latest. let's discuss this with michael ugliki along with dr. anthony slonum whose regional medical center weren't viral as converting a parking structure to treat covid-19 patients. first the vaccine news. gentlemen, good morning to you both. michael, based in memphis, tennessee, essentially in the backyard of u.p.s. shipping hub. have you seen the vaccines in the back door of the hospital? >> not yet. thank you for having me this

morning. we are really excited. this is the week we have all been waiting for. i said it earlier. with fedex here, i'm confident we'll be getting some soon and again the delivery process will go very smoothly. >> doctor, i'll put the same question to you and build on that listening to the commentary, how will you know as the vaccine rollout continues here, agains and continues here. how will you know that that supply chain is working smoothly and supplies come through at the rate they're supposed to? >> good morning and thank you for having me. we are awaiting vaccines. we have the priority list all ready to go. it is a historic moment and excited that the front line workers will be able to get the vaccines that they need and as we wait the supply chain it is a wait and see approach. as we get the allocation from the central sources.

>> doctor, do you know when you're going to be or administering the first vaccine to people on your staff? >> yes, over the course of this week. we have a more centralized approach and using the department of health as a major resource to get our tier 1 health care workers up and running with the vaccine this week. >> michael, in terms of priority, given the fact that supplies are limited, at least for now, how have you decided who within your hospital system will be vaccinated first? what does that process look like as you expect more doses to follow? >> absolutely. no we have stratified the sources and starting with the physicians, the front line associates, housekeepers, transporters, emergency room associates, those on the front line of this covid. they are the combats in this war

we talk about and we are really excited that they'll be the first ones to receive it because that makes them safe so they can continue to provide care to all the patients coming to our facility. >> doctor, this very good news but the situation on the ground that you are seeing in terms of the spread of the disease is not particularly good. give us an update on your area right now and what you are doing to meet that unfortunate demand for people who are sick. >> the vaccine is good news and couldn't come any sooner, for sure. we are still struggling with surges after the thanksgiving holiday. we haven't yet seen the increases in mortality rates that usually follow. we know the trends and the patterns here. people get sick and the hospitalizations increase. the case rartds go up and the mortality rate goes up and it is concerning to struggle with the

winter holidays. >> michael, again, juxtapose with the ability to start administering the vaccine to the front line workers, what are you seeing with patients showing up at the hospitals? >> absolutely over the last several weeks is high. average close to 200 cases now every day since late november. and the numbers increasing. the concern that we have all expressed knowing that there will be an impact following the thanksgiving celebration over the last several weeks. so with the vaccine obviously available today we are excited about that. the potential it holds for containing the virus and what worries me is people letting the guards down because we have still sometime before everybody will get a vaccine and extremely important to realize that it's still not -- even with the shipment of the vaccine starting

today we want everyone to continue to follow the guidelines to prevent the virus to continue to reduce the death rate, mortality associated with this virus. >> yeah. doctor, we mentioned at the beginning of this interview but the fact of a regional medical center that converted to treat covid-19 patients went viral last week, the source of i guess a misinformation campaign if you will. tell us about that structure and how many patients you are treating there and how long you expect it to stay in place given the fact that we have had the vaccine conversation. >> thank you. we are so proud of the teams to set up this sight. adjacent to the hospital and this has the capability to handle hundreds of patients, up to 700 actually on 1 floor.

we discharged about 300, 400 patients at this point and continue to have 30 to 40 with the opportunity to go up if we need it. it certainly has been an exercise in planning and preparation to assure that we have the capabilities to serve our community appropriately should we need it. >> thank you. we' we'll leave it there and appreciate your time. thanks for being with us. >> thank you. >> thank you. checking in on the markets. dow just above 33. need about 10, 15 more points for an all-time

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the first covid vaccines being delivered this morning. contessa brewer joins us live from a vaccine command center this new york city with the latest. hey, contessa. >> good the see you. we know that those vaccines first are delivered to the front line health care workers. i'm in manhattan across the street is this vaccine command center. they will have logistics issues. new york city said it needs the command center to make sure that the shots go to the people that

need it. an independent state panel reviewed the fda's decision and then unanimously approved it. new york's governor said that should give new yorkers an additional level of confidence of getting vaccinated. 170 thousand dollars vaccines for new york state tab governor expects 346,000 moderna vaccines next week. this no doubt about it is a race against time for lives and livelihoods. cases are soaring. the state hit 5% positivity rate, seeing hospitalizations at the rate last seen in may and today the governor ordered indoor dining in new york city and receives pushback. the infection rates are higher in albany and other regions in the state where indoor dining is still allowed and contact tracing shows the vast majority of the infections stem from small gatherings, having company

at the house, rather than indooriindoor at restaurants. 54% of restaurants in the state would likely not survive the next six months without federal relief and that's before the indoor dining ban. the vaccines cannot happen soon enough for the economy of this state. >> so well said. contessa, thank you. speaking of all of this and how it fits with the markets this morning, our next guest joining us this morning. good to see you. >> thank you for having me. >> before we get to some of the picks i wonder, here we are amazingly with jabs being delivered. do you think the vaccine itself is going to usher in a new chapter for value? >> well, i think one of the things being a value investor

means is you predict the things get back to normal faster than most people are willing to expect that to happen. so if you look at a portfolio like the oakmark fund most holdings benefit from things getting back to normal like 2019. and i think once most of the population had an opportunity to be vaccinated we'll see a very rapid return to what we used to think of as normal. >> and how long do you see that chapter lasting? is this a multi year effort? >> i think by sometime in the second quarter most of us will have had an opportunity to be vaccinated and i would assume that we will never go back to kind of the pandemic lockdowns that we have had through most of this year. >> bill, to that point, to see major indexes trading at or near record highs does that make

sense to you? how much further can this go? >> if you think about 2020, if you'd known all of this news ahead of time i doubt very much you would have called the market correctly but despite the market selling over 20 times next year's earnings, there are still pockets in the market, especially names like the financials or some of the travel and leisure names where stocks sell at single digit multiples based on 2019 earnings and we think they get back to those levels pretty quickly. >> so in that space, i know you like ally and conoco. ally doubled from the march low. when do we know when it's no longer a good value? >> well, both ally and capital one spoke last week at the goldman sachs financial conference and jeff brown the

ceo of ally was talking about in two to three years he thinks they should earn a mid-terns return on the tangible equity, over $40 a share within 2 years. if you earn 15% that's a $6 earnings level. the stock bottomed at 11 in march, currently trading just over 30. but if they can earn $6 two years out we think that's a mid-teens multiple so there's still runway ahead of the tock to get to a value and the capital one story is similar. also trading below tangible book and the low-coast provider of credit card services, investigationed more in technology than the others have. and they're sling at a single digit pe based on what they did earn in 2019 when they earned 15% on the common equity and by

2022 these companies should be passed the charge offs that have hurt this year's earnings and should be back to something like a normal level of earnings. it's not that far away. >> bill, we can talk about a value recovery afoot. but looking at the ipo market, also the established publicly traded big tech stocks, it is as some people put it bubble-like in terms of valuations rngs in the case of ipos, market debuts, i think of doordash last week. is the implication that perhaps some of the froth comes off the names? what is your expectations there? >> i think a lot of our peer value managers talk about the faang stocks as being significantly overvalued and we disagree but the other

technology stocks where you see the multiples on sales of 20 times and 100 times earnings. in markets that aren't fully developed yet where forecasting out five years from now you don't know how big the market is, what market shares look like and what margins will look like. we think there's a lot of risk in those companies and why the fort folio doesn't have anything like that in it and heavy in names like the financials, the money center banks, the energy names we think will benefit from return to normal, a company like mgm, cbre where people get back to work, vacation that their rnings should pop very nicely. >> i see in my notes here, bill, c.o.p. does energy have a liability to a biden administration to push

electric? >> it was supposed to be cof but we like and owned concoho petroleum acquired by c.o.p. and they're attractive and well managed. i think the return to normal energy demand and $50 a barrel oil which we just started to see again in the past couple of days is much more important to these companies than the change in administration will be. >> that's nice list of actionable ideas which you always bring. thank you so much. talk to you soon. >> thank you. now time for the etf spotlight with the communications services select spyder fund, led higher today.

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the trump administration acknowledging report that is a group backed by a foreign government carried out a cyber attack on the u.s. treasury department and a section of the u.s. department of commerce. the hack that may lasted or going back two months detected broke into the email systems but the full extent of the breach is not clear. the fbi is investigating. according to fire eye it used software to gather information and concerns they penetrated other departments and perhaps other companies. russia is who everybody seems to be pointing to, fire eye and

others with sophisticated hacking tools. sort of part of the nation's foreign intelligence service. >> yeah. >> but this is -- this is important. it may have been going on as long as ago as the spring and it's unclear what else they know and whether they are still in many of the systems. >> of course, russia denied they're behind the hacking but who would have expected anything differently? i think what's most interesting to me is the fact that the cyber security stocks fire eye included up 1% today and a lot of the other cyber security stocks trading well and i guess traders brush this off seen as a state sponsored or state supported activity. rather than i guess a group or a

band of hackers but that gets my attention, too, with security companies specializing in keeping other companies and entities safe being exposed, as well. so just taking a look at that. up almost 3% today on fortinet. >> carl? >> yeah. david, we didn't really even discuss the google/youtube/gmail outage and they can be violated any time. >> they can. of course remember friar fireguy that investigates and breached by it would appear the russians and now pointing to a blogpost sunday the fact that the organizations that we're talking about breached with a management

system made by solar winds but again to your point a story we have been following for years. the russians in particular aggressive with the chinese that focused attention on corporate america and stealing trade secrets and continues to be an issue for so many this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

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good morning, everybody. i'm sue herera. as the united states starts the largest vaccination program in its history the covid pandemic is approaching another milestone. confirmed covid deaths will go

above 300,000 some point today by the johns hopkins count. in the ik, the first vaccinations last week in hospitals. today the pfizer vaccine is heading to doctor's offices and care homes making it more widely available. the pandemic is worse there with london in the highest tier of restrictions on wednesday. in canada, the first shepment of the vaccine arrived overnight with the initial shots to long term facilities and health care workers. this as the top u.s. health official has a message for doubters. >> so the 94% of effective vaccine gone through every, every aspect of fda process with integrity and trance parent data. if it is available for you, protect yourself and those around you but these get the vaccine. >> you are up to date. that's the covid up date. carl, i'll see you again in an hour. back to you.

>> all right. on that note nursing homes are near the front of the line for vaccine distribution. we have more on what is ahead for the nursing homes. >> reporter: good morning, carl. well, what we do know is that nursing homes and the long term care industry wants to make sure that all residents and staff vaccinated by march 1st because conditions are even worse now than they were back in the spring when everything was locked down. there are 20,000 new cases each week at nursing homes, double the rate back then and estimated 10,000 deaths. >> it is a staggering number and as horrible as that news is the encouraging things is we can relatively end this nightmare if we can get the vaccine distributed. >> reporter: nursing homes have asked congress $100 billion to hospitals with a dedicated carveout for long-term care

facilities and another $5 billion to pay for regular covid testing without the help from washington the industry estimates half of care centers would have closed and now the occupancy rate is down 10% due to the high mortality rate and because fewer people are going to nursing homes. >> a clinical nightmare that the virus and the deaths in the buildings will end. on the business end it could take 12 to 24 months. >> reporter: even though the nursing homes at the top of the priority list not expecting the first shipment of vaccines until december 21st. david? >> thank you. let's bring in a former fda commissioner, currently a professor of cardiology at duke university. thank you for being with us. we are all hoping for the best

for the distribution of the vaccine as rapidly as possible. if you had a list of things to concern you and make that distribution less than ideal what would they be? >> there's a lot of logistics getting it distributed with the cold chain. i think everybody is familiar with the low temperatures that's needed to be sustained so that last mile, i think the trucks are on the way, the planes have flown and the last mile of getting into the arms of people that really need the vaccine. that can be concerning and also keeping track of all the supply with the two dose regimen is quite a challenge. >> there is also we continue to hear a portion of the population that perhaps will be resistant. do you recolle do you think that's overblown or a real concern? >> i'm retired from duke

hospital and work with alphabet. karen desalvo has a major job to do to get the message out because people use search or youtube to get the information so correcting misinformation and having authoritative information at the top is critical but also having people who relate to those out there who may be skeptical is going to be critical to get the message across. >> so speaking of the message rngs some viewers are writing in and their basic question is, how do i know when it's time to start inquiring about going in? do you think that's going to be delivered in stages from public health authorities? how confusing will that be? >> i think it's confusing if you step back and look at it right now but because there's an

orderly sequence that's planned i think the communication will increasingly target the people that need to be at the front. what i would advise is that everyone should get the medical records straight and the his toy is understood because it's dependent on other illnesses and essential with health care workers, nurses, respiratory therapists, other health care workers, they are the key intermediaries. majority of people say they'll ask the clinician about the health for that advice. it is the critical lane. >> yeah. rob, i'm chourious about the dosing. what the fda recommended is two doses to have the most effective protections against the vaccine and does seem to be a debate given waiting for supplies to ramp up on over one shot or two

doses would potentially make sense to at least minimize more of the virus spread among more people. >> you know the saying that pertains to fda, in god we trust, everyone else must bring data. the point is made we know what happens with two doses and much better than someone like me could have even hoped for so that's very exciting. there's a point being made that we need to vaccinate a lot of people. and when you are holding back that second dose on the shelf and not delivering it to more people there's an argument to be made. i think for right now the two-dose regimen is proven and the way to go. the question is one of logistics and i'll just say knowing how much production capacity there is in manufacturing and linking that to the two doses is really

going to be a critical issue. i have a lot of confidence in this supply chain efforts under way. i think it's going to work out fine. >> you're working now with alphabet i believe and you mentioned it in context of communicating the fact to perhaps people disbelievers that this is going to be an effective treatment. how important is that? how much can you do? i don't know your role there but perhaps you can tell us. >> i'm a policy and strategy adviser across the very broad expanse of alphabet that includes different aspects. there's a whole team which i'm somewhat affiliated with that's developing the strategy for getting the message out. it's absolutely critical and a lot of attention appropriately to people of color who have good reason to be concerned about the medical establishment based on

past misdeeds and also a need to reach the conservative audience that may have been getting conflicting information from leaders about what to do. also want to stress it is not just getting the vaccine. if we don't pay attention to social distancing and masking during these critical months a lot of people will die who would have survived with a few months to go until we'll be all okay hanging out again. this is essential. we are working hard on it. i'm proud of the team effort. >> yeah. to your point you don't want people to let the guard down when they are potentially so close to actually getting the vaccine. thank you for being with us. >> great to be with you. take care. back here we keep an eye on shares of caterpillar today with a 11% drop in global retail sales in november but that's the

slower decline than in the prior two months pointing to what the bulls hope is a continuing recovery for that giant. check the markets for you, too. up overall.

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>>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. welcome back to "squawk on the street." stocks are moving here for the week. energy by the way and the s&p only sector negative so far. you have consumer discretionary stocks as you can see and within that group seeing a variety of stocks outperform including home

improvement names and auto parts retailers. as vaccinations get under way across the u.s. we do see some relief for the beaten up travel and leisure stocks. carnival higher today. morgan, on the year, now back over to you. >> thank you. as we head to break, take a look at virgin galactic, making ne new you over the weekend. you can see the two pilots inside landing safely and smoothly from 40,000 feet. sir richard branson saying they have post flight and sis and the computer to monitor the propugs system -- this flight would have been the third by the space plane to the edge of space. first from new mexico. they do plan to attempt this

again. the first of three before commercial service next year. take a look at shares down about your daily dashboard from fidelity -- a visual snapshot of your investments, key portfolio events, all in one place. because when it's decision time,

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well, if today wasn't historic enough, electors in washington cast the votings for president and vice president as well today. i don't believe kayla is available at this point. morgan, you can bring in the next guest. >> i can. columnist is jim stewart joining us now. good to see you. >> nice to see you, too. >> a lot to get to today. we are focusing on the elector college vote today and you have the senate runoff today in georgia with question marks and

uncertainties. what are your expectations as we go into 2021 especially when we see the major averages tradesing near or at record highs right now. >> i love it when averages are hitting peak at the end of the year because it is a great time to rebalance the portfolios but giving some stock away to charity. because, in fact, when i was getting ready for this program i was examining my portfolio and i am overweighted in equities, more than 5% out of my tar get allocation so it's time to make some changes. face it. the news is very good. the election, had the wrinkles but rooeeaching the conclusion. we have a vaccine coming which is the best possible christmas present i think any of us could be getting. i want a vaccine.

and's that is all very good. the time is so hard really to be an investor. you forget this in tranquil periods but this is the time to think about rebalancing and taking some profits. it is when everything is good that you want to be looking carefully to make sure well abo in administration. and what if any different approach you may take in terms of investing. you mentioned, of course, it is not a historic day just because we're getting a vaccine out there but also lektors in washington will cast their official votes. and for that, want i want to ge kayla. >> electors are meeting across the country. they just met an hour ago. this is a day they'll gather at state capital in each state to formally cast votes for president and vice president. and normally an unremarkable and fair ordinary day. but there's been a lot of focus on this day because of the questions that the administration raised about the outcome of the election.

i want to show you some pictures from around the country. starting with new hampshire where electors are meeting to cast their four electoral votes for president and vice president. tennessee, vermont, indiana, a handful of states around the country have already begun this meeting at this hour. there are 538 electors in all. each state gets essentially the same number of electors as they do members of congress. 306 are expected to vote for joe biden. only 199 are bound by law to do that. and, of course, as we know, president trump is pushing to get swing states with gop leaders to back him instead. but that effort is not expected to yield different results. the votes were counted three times, each time affirmative victory for biden. if just by .25%. in arizona, electors are required to vote for biden.

they filed a law urginging electors to defect for hillary clinton then n 2016, electors defected in all. that is the most in a single instance. there are few area cross all of american history than who have to be there to deprive biden of the electoral college victory. so certainly this is expected to solidify the vote for the incoming biden-harris administration. he said on thanksgiving, if the electoral college did select joe biden, that he would leave office. though he said that electoral college would have made a mistake. but just this morning, senior adviser at the white house stephen miller appearing in a campaign capacity said they plan to keep fighting until january 20th. david and morgan? >> okay. thank you. >> jim, you know, you were

watching that, of course. we all do wonder why you can't have a beautiful wildlife background with rain falling and birds chirping like that. jim, are you going to change your approach at all? are you focusing on sectors you would not have given we're going to see a change in administration on john 20th? >> well, i am shifting the focus a little bit. not so much because of the change of administration but more because of the spread of the vaccine and the anticipated end to the pandemic. that mines focusing as investors have been over the last month on the more cyclical, industrial, basic economy sectors and less on high flying tech stocks. i don't think they're going to crash. they have made substantial gains that are going to persist. they have the antitrust threats hanging over them. i think they're going to see a rotation back into some of the beaten down value stocks. one of the areas that i like

there is the transports. it's an easy way you can buy the index funds that just mirror the transport stocks and you get a nice cyclical cross section there including, you know, airlines and railroads and things that have been very beaten down. had. >> jim, you're an astute observer of tocax policy. does the increase for capital gains tax, do you foresee it having any influence on your decision to sell or timing of your sales? >> well, i do think tax policy is probably the biggest looming issue in the next year and obviously the result in georgia probably could have a big impact on that. even with a democrat uk win and barely democratic control of the senate, i'm not sure there is going to be huge radical tax

revision policies. you do have some relatively conservative democratic senators who i think are going to, you know, hesitate before doing a massive tax increase. i mean, my own position for years now has been to focus first on the fairness of the tax code. in other words, let's close loopholes and broaden the base, something that both parties claim to be behind for years. but don't call it a tax increase. separate the reform from the increase. the tax increase is a whole different political animal from tax reform. they're two different things. i do feel that with a new administration, new congress, there is some potential for tax reform. quhafr y whatever you feel about the '17 tax reform act, it didn't do a lotten o the reform. there are still loopholes for industries starting, not

surprisingly, with real estate. >> yeah. the other piece of this puzzle, jim, i think in a week like this one is the fact that for the markets, for the indices, you have this huge rebalancing afoot as well. you mention high flying tech stocks as well. tesla is expected to basically gener general records and the renaissance capital ipo and etf as well. what are your expectations for trading this week -- i realize you're more of an investor than a day trader, but just in terms of how this speaks to the changing leadership and the changing mix we've seen within the market in the midst of this pandemic? >> you know, i think there is going to be very heavy volume this week. but i -- i think that market is looking very firm through the end of the year. which, again, i love because it's a great opportunity to give

away some depreciated stock. or if you need to rebalance and sell things at very high prices. again, i think an important point for longer term investors like me, it doesn't -- you don't have to hit the absolute peak. you don't have to buy the absolute bottom. just want to get in the ballpark there. we've had a good year. it was crazy with the plunge in march. the s&p 500 is up 16% for the year. that's by historical measures, that's a good year. it's above historical average of close to 10%. the so you're not being crazy if you decide to take a little bit profits here. even with high volume. >> yeah. play with the house's money. jim stewart, good to see you. carl? >> coming up after the break, some of the high flying ipos from last week like airbnb and

doordash. doordash gets cut at d.a. davidson. we'll talk about that after the break. some hot cocoa? mom, look! are you okay? head home this holiday with the one you love. visit your local mercedes-benz dealer today for exceptional lease and financing offers at the mercedes-benz winter event.

good morning, it's 11:00 a.m. at pfizer headquarters