just tell me who is walking the dog? >> you got viewers offering to come over and walk your dog. >> kitty, kitty, kitty. >> my kids are going to play this, they're going to see this. they're supposed to be at school now, but i'm sure they'll hear about this and we'll have a big dog conference at dinner tonight. >> dogs are great. cats are great join us tomorrow "squawk on the street" is next good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures look to give back some of yesterday's late declines on hopes that the stimulus compromise may be getting somewhere. warren buffett hopes so. fda looks on track it approve mo dernia's vaccine this week the briefing docks on line the road map begins with an economic war that is warren buff aets call to action as new covid shutdowns near and congress debates new stimulus proposals.

>> moderna is next fda staff endorsing emergenc use of its covid vaccine and a critical step toward approval as early as this week >> and apple's production boost reportedly aiming to make 96 million iphones for the first half of 2021 that would be a nearly 30% jump over production from one year ago, carl. >> yeah. we'll talk about what nikkei said today, david. as for moderna, briefing docs are interesting again. some of the charts looking at efficacy, placebo versus the drug itself suggests that you start to see efficacy as in pfizer after the first dose. >> yeah, this is fabulous. i think people have to start recognizing that there is going to be a lot of vaccine there is going to be moderna, j&j, abbott has news now about testing. but there is possibility that these companies will produce en masse a huge number of vaccines. don't underestimate these

companies. they were all understanding that this could happen. and they have a lot of firepower to be able to do a lot of things, a lot of money j&j is one i'm hoping for. it comes in, a lot of the ones we thought for europe that glaxo is behind, astrazeneca behind. but, david, the possibility that we get therapeutics, the possibility we get vaccines, moderna, pfizer, j&j, the possibility that we get a bridge from congress and suddenly you are in a position that you were in last year at this time. it could be very good, david >> don't you think the market is already taking account of that. >> i'm really resting with that. because i think that there are a lot of stocks that are so high because people feel like what i just said is going to happen but they're also a lot of companies that i think are really struggling that won't struggle and here i'm thinking about the airlines, i'm thinking about hospitality. i'm thinking about the nonzoom

economy. we keep talking about the zoom economy. but i do think there will be people -- pent-up demand could be extraordinary >> i think you're right. certainly you would expect that there is going to be a lot of people that want to do a lost things they have not been able to do over a full year at point we actually get back to that the great exodus took part on march 14th on this part of the country is what i refer to it as, and it is unlikely we get back to anything like normal until at least then, though, jim. so we're talking, what, first, second quarter, hopefully the summer, when you really are sort of a full return certain parts of the country sooner than others, when you look at it now, it is not good anywhere california, texas, a lot of other states in terms of at least new cases at this point. >> yesterday was a day that was the market changes every day yesterday was the day we're about lockdown i look at peloton, by the way, people want to look at this. look at peloton. that is the tale of the tape that goes up 3, 4, 5 points when

we're on lockdown day. it goes down the same when we're on an open day carl, the thing i'm watching most is what is happening in new york the shutdown of restaurants, 13, 14 million people involved in restaurants, there are a lot of people back and forthon tw on twitter. we need some compromise about unemployment benefits. people don't realize we're so close, carl, we're so close, how can the government not agree to fund until we get vaccines, say, even if it is david's view, which will be a little later, then what can happen, we're so close to getting this economy back on track, but these places that close, carl, they can't flip a switch and open again that's just way of life. you can't do it. >> yeah. to your point, jim, goldman, yesterday, saying, look, we can have half the population in the u.s. and uk, vaccinated by april. canada by may.

the eu by june japan by july. but that bridge still needs to be built that certainly was warren buffett's view when he talked to becky and joe and andrew earlier this morning talking about what he called this economic war, in which small business is collateral damage. take a listen. >> it is an economic war and then -- and certain, you know, we went into world war ii, a lot of industries were shut down and everything went over to the defense production we shut down a lot of people in this particular recession and others are prospering. i think that the country owes it to the really millions of small business people. >> interesting, yesterday, jim, business round table and u.s. chamber of commerce said, look, if congress can't agree on liability or state and local, at least do this.

>> yeah. look, this is -- 400 billion, i know 400 billion is a lot of money, but at the same time, our country is a service economy and i have no problem with that. but what has happened is that the balance sheet of the individuals, very high typical balance sheet. but we are a country where people go out and people go places and that fuels -- we're not a country that -- where everyone goes to work at steel mills every day. a lot of people go to work at restaurants and hospitality. it is a gigantic industry in this country, in this service economy. and i think that congress acts as if, you know what, it is fine we can wait a couple of months it is not like that. >> no. buffett founded exasperated. a lot of people are, jim, because you find -- what is the date what are we, the 15th, december? december 15th? we're a little more than a month away from the inauguration we still haven't gotten anything how is that possible

>> they hate each other. >> who is they >> the republicans and the democrats. >> that's it they hate each other that's all you got to say on the matter. >> the president is very much involved with trying to get the election overturned. >> yeah. i know that's not going to happen it is very unfortunate to your point, you made it throughout, by the way, that the enormous hit that is being taken by those who work in these hospital industries and it is, boggles the mind we can't figure out a way to get some aid to them so they can remain a viable part of the economy, when we finally do reopen and these next two months, three months, it is amazing to see this vaccine start to be administered but they're going to be tough. >> what is incredible to me, carl, is that we -- we really accelerate, warp speed really worked warp speed was great shocked everybody. and now congress should be able to say, you know what, we love warp speed, it is terrific, and we're going to bridge to warp speed so that we're going to put

money in people's pockets and then it is going to be just like ppp, it is going to work, some people are saying ppp is horrible for restaurants i don't know who said that it was terrific. but the next thing we need to hear is say, we have to have unemployment benefits extended and we need restaurant and we need some sort of hospitality. but, carl, it may not affect the stock market at all. because we saw yesterday what -- semiconductors just go up a huge amount we see the drug companies go up a huge amount. these companies have nothing to do with the real economy, which is the real economy is people unemployed and these companies exist -- they're worldwide companies. they have nothing -- they're not -- >> you don't have a lot of small businesses, jim, in the semiconductor business goldman went to amd 110, they upped micron we got some reports on tsm upping their five nanometer projections for the first half we'll talk about apple later on. that is sort of the pockets

where, you know if you can excise the small business impact, it is a good story but everything else is a little more checkered >> it is incredible to me how well corporate america is doing. i mean, look at norwegian cruise this morning they announce a $500 million senior note, 2026 they say that they may have to raise equity, and, you know, people don't even really care. it is, what, it is down fractionally there is a note from about boeing, i don't know if you caught this boeing note, did you see this >> yesterday, was quite strong i haven't seen the boeing note tell me. what did they say about boeing >> feedback -- i love this -- feedback on boeing's potential equity raise, why now? why 20 to 30 billion >> wait, what? zw >> i know. they're acting like it was announced. >> what equity raise >> this is like the future. >> a $30 billion equity raise? >> yeah, and they think that it will really help the balance sheet. last week we highlighted the boeing can raise 20 to $30 billion. they have a sell on boeing

maybe cautious but this is the time that the stock market is working for some companies. they're raising money. but the companies that we're talking about, we're not trading the luncheonettes. >> we're not we're on new highs on a lot of markets amazingly enough if you told people that in the dark days of april, when the markets were in a bad place, they would have been shocked to see where we're ending up as we close out the year here the last couple of weeks. but we talked about it this is accelerated so many trends that were already in place. when we emerge from this, it is going to be a changed world. even when you get to travel, what you're talking about, many of the stocks as you pointed out have not suffered as much as you might have anticipated i still do wonder when it comes to the business traveler, who, by the way, we walked through airports, how many people would see on their laptops sitting in a lounge, working? is that still going to be the case >> i don't know.

because zoom is so good. so pervasive but what is going on today lilly doubling its dividend. what does lilly have to do other than indianapolis, support indianapolis, that does not -- that's not the real economy. it is not. but it is unbelievably good. the real economy is the laptop person sitting in first class. i hate to say that that's the business traveler the business traveler supports and creates -- the thing that is supporting the airlines is the vaccine. getting the vaccine to people. so i don't know. don't want to be too bearish. >> that's exactly -- that's what bill miller said april or so of this year, jim, is that the airline trade was in fact a vaccine trade. at the same time, i see citi ups hilton and marriott and host today on the prospect that there is going to be some travel, some normalization of business and leisure travel patterns in the second half. >> that's what i -- david was talking about the idea that it is -- is the market anticipating

everything now we're beginning to get the notes which say you got to get into marriott. there are people debating now whether to buy carnival. >> i know. >> carnival, equity raises, bonds. >> it is a lot of stock. i'm hit by that morgan stanley note the idea that boeing will hit the market with $30 billion in equity. >> that's a big offering. >> that's bigger than the bond offering. >> yeah. yeah, guys there is a lot of calls. we'll get to the boeing call upgrades of wells, of hilton as we said, one of oxy today. and price target increases for caterpillar. we'll get industri pduio thicafter the break.

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we have to find somethingust grelse. good luck!ut it.lly 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. let's get industrial production with rick santelli. hey, rick. >> hello, carl november read on industrial production comes in a bit stronger than expected up .4. we're looking for a number up .3. subsequentially it is lower than 1.1 in the rear view mirror which may be revised but it is nonetheless up .4, the best number going back to august when it was up .73 now, if we look at utilization rates, we're expecting a number around 73%

we came in better, came in better 73.3 73.3, pretty nice number and if you look, that actually is the best number going all the way back to march, when it is 73.5 it is the best kind of covid hit post number since we really had, of course, the lockdowns in first wave in the spring if we consider where interest rates are, right now hovering at 90 basis points, we want to pay very close attention, if we get back above 92, that seems to be a slight resistance level. carl, jim, david, back to you. >> all right thank you very much. we're going to watch apple in the premarket, nikkei asia reporting the company plans to ram up its iphone production to 96 million in the first half of '21, a jump of 30% from a year ago period jim, we sometimes look with this -- that these reports with

a grain of salt, but they're usually easier to take on the upside. >> it is funny, when they're down, i say, that's not what you should be looking at you did nail me on that one. i felt this, i said, wow, this is great i said, this is probably unverifiable as when they say they're down but what i think is interesting is we really got to see what biden does with china. is he going to be quietly a warrior against china, loud against china? because the key to -- the delta for apple sales is not united states it is china. and i think that, david, maybe apple's actually anticipating what could be the end of the cold war >> but i think that's very much unclear. if there is one area there wasn't as much space between the two candidates you have to think it was the approach to china not that there won't be a difference, there will be. but itwon't be as dramatic as virtually every single other

issue you could imagine. >> tweeting is -- >> there is a multilateral approach, not the go it alone approach, i think, you had under the trump administration, from the biden administration trade deals have been done already. without us being a part of them. many of them and that, i know, for those who believe those are important, that has proved to be somewhat concerning >> but 5g? 5g >> what about 5g >> apple 5g? >> without a doubt when i think 5g, and you say that, in relation to china, i think of two different systems being created around the world right, we're creating -- in so many ways we're creating two different systems entirely we do have different systems of government, we did but in 5g as well, jim, you have the chinese version and you have the u.s. version and then this battle >> well, i think apple can walk the tight rope

>> important for them to do it >> yes >> but, carl, apple is the key to the market for a very long time we had forgotten apple the key to this market became caterpillar, it became emerson, which got a big upgrade today. we started seeing the airlines being key to this market and now, maybe it reversed to apple. maybe it reverts to -- yesterday, netflix was up huge disney, down yesterday, amazon was on fire. that was the beginning of what i think is the -- faang was up, facebook was up. maybe we're going back to the ones that were working because they always come back to these at the end, it is the end of the year, don't you want to show faang? do you want to show you owned alphabet it is a horse. and ftc did whatever it did and now we're yawning about it ftc was against something. >> alphabet and facebook are being sued nobody seems to care >> by what

>> the doj and ftc for antitrust and anti-competitive practices >> right >> that story lasted a day >> i know. >> it is amazing when it was microsoft, we were here, i remember, every day. >> nci. >> every day we covered that story. >> like a tv show. i'm not that worried about these. i do think that the ftc is wrong about facebook since they approved everything facebook did mark zuckerberg, don't ththey dk him. >> we'll watch all that regulatory pressure closely. we'll take a break here. "squawk on the street" back in a moment turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in.

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all right, to a mad dash as we count you down to the opening bell, about seven minutes from now. i think i heard you say estee lauder >> yes, for the ceo, a remarkable job, but rbc is a fantastic node about a meeting with him about how they're doing. i think that is really interesting, this is something we don't talk about. i have lululemon on tonight. online is here to stay for cosmetics, online is here to stay. they're selling too much it is a very powerful site that they have 60 minutes per customer, on it a lot, but, david, no matter what, the winners, direct to consumer, nike reports at the end of the week the lulu quarter was made up, the strength was direct to consumer this has been something that i don't think goes back, you know, we were talking about what goes back, i think direct to consumer

is regarded as a great time saver. >> even cosmetics, people will order them. >> i used -- i used the ulta site and they have, you know, they kind of measure what you need. on an iphone, and then they send it to you. i wanted to have something that took off makeup, for me, spray painted like a car ppg, they spray me, and i need to get that car -- >> nice sheen. >> i use estee lauder when i get home and what i find is just unbelievable these companies pivoted like you can't believe. estee lauder pivoted to online remember used to go into -- i would show you, used to go into macys and spray you and put stuff on you nobody get near them >> stay away >> stay away we're sorcially distanced for those who think we aren't wearing a mask. >> ten feet. >> this is as close as i can

get. >> this is as close as we have been to each other, without masks. >> i'm a little uncomfortable. but good estee lauder, great stuff. >> five minutes onitopeng bell for you. stay with us here on "squawk on the street." everyone wants to save on prescriptions. but are you saving the most? check out rxsaver -

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what you should worry about is shutdown. because if we do not change the trajectory, we could very well be headed to shutdown. and shutdown is something to worry about. that is really something to worry about. because all these businesses close. we go back to where we were. all nonessential businesses close. they go to zero. >> that's governor cuomo yesterday, comments that took some of the sales out of the intraday rally it challenges our assumptions that any further shutdowns were going to be done with a scalpel and not a bludgeon.

>> planet fitness almost came all the way back i thought they could be a winner when gyms close. they have a decent group of franchisees. that stock would be too high the one i'm watching is darden they report on friday, the 18th. darden is the long-term winner they have a good balance sheet they would be able to win. we know that capital grill, good restaurant, we got, david, you know, your favorite, olive garden, which you've probably never been to. >> once. >> on a field trip >> outside colorado. we were skiing and coming down, going to denver, stopped i remember it. >> they'll win yum will win yum is another and my favorite on this whole shutdown is chipotle chipotle will win no matter what all the little mexican restaurants are done, all the little far -- any foreign food restaurant, which makes the city so exciting, david right?

let's get this cuisine or that cuisine done they don't have the balance sheet to go against -- >> it is going to be very difficult for them to compete. all sorts of different environments they will come back one day. one day, they will come back they're going to need capital for that too, though another issue. >> i'm watching wells fargo, carl that note, incredible note from keith. >> kbw to outperform, 36 ratio to improve over the long-term because of expense reduction, trading at 64% appears tangible. >> this is just a referendum on charlie scharf, the ceo. i think charlie is great i'm conscious of the fact you're not at the bottom anymore, but it is so far behind the group. it was at 58, two years ago, in february charlie, you know, he is a hard

driving guy, but the banks don't have -- they need some little bit inflexion in that yield curve. >> they do they do. they continue to be a very poor performer when put up against the performance of the s&p, up some 13 points up 7% so far this year you look at jpmorgan, citi down 25%. new ceo coming in there very soon >> yes. >> stan frazer will take the reins of power there beginning of the year. so counting down there >> how about the snowflake the -- when do we have the expiration the lockup >> not for a little while, isn't it >> can't they do an emergency lockup to open just three months -- well, i don't know i think that anything is possible in terms of these stocks that went up big. carl, major quandary is snowflake, airbnb, and doordash. because it is really shut down

the ipo market other than the spacs. because no one wants this to happen and they don't know how to do it the easy way is to have a little flexibility, more stock so if it happens, they can keep the stocks from going crazy. this is the kind of thing that loses people a lot of money and it is happening again. and i cannot believe the syndicate desk who do all the deals have -- are clueless about the over the transom market buyers who have come in. >> david solomon on "squawk" this morning did reference at least the retail participant, which you talk about all the time retail volume is doubled in a decade, jim, as a percentage of overall volume it is a big part of it. >> why can't we just -- why can't the government and the firms recognize that the robinhood buyer and their ilk are real, they have capital, they're not idiots, they're smart. and we treat them as if they are bam bee.

they're not bambi. they're moving the market. >> they're moving the market do we treat them as smart? we had a lot of long conversations about their lack of understanding perhaps of the fundamentals i'm not -- i'm having a hard time understanding what your problem is with doordash and airbnb >> they shouldn't be up where they are. >> that's fair >> that's what i'm saying. >> they should have been priced higher what is the -- >> no, key flexibility, to be able to offer more shares. this is when -- the street.com, i referenced my once failed -- >> i remember it >> 335 million dollar man. i'm screaming at the syndicate desk, you have more stock, i'm releasing more stock what are you talking about the s.e.c. doesn't allow us to do that. if it opens at 63, everyone is going to lose a fortune. well, it opens 63, then went to 66 and then went to 1 it would have been better -- >> but don't think doordash, no offense to street.com, is that or airbnb.

>> but it shouldn't open like this why did the other firms decide to hold off until they see what this is about? or maybe you favor direct listing like palantir, which has been taking up by reddit which has a strong buy on it. >> it has. palantir's performance having gone public through direct listing, right around 10, 11 >> reddit loves it we sit here and talk about keith -- we should be talking about reddit. >> want to get bill gurley on to pontificate about the benefits of direct listing, we can do that, we can talk about spacs, the way so many companies are now going public, blade today the latest name to take advantage of that. >> with very, very prominent investors. >> opportunity, yeah geffen and diller is not bad take those two anytime you can get them rob weisenthal, old friend, having started that company and running it right now is on "squawk box" this morning. i want to understand, airbnb, they raised what they were hoping to. now there is some who could argue, you might have been able to sell more stock at a higher

price, but it depends how much stock is actually trading at that price you're not going to sell $3 billion, $4 billion worth of the stock at 150 or 160. same with doordash >> maybe this is the big decline. maybe these stocks go down every day. and everybody who bought it. >> they might. >> they sure might. >> selling to the underwriter? >> no, the s.e.c. >> the s.e.c by not allowing the underwriter and/or the companies to release more stock -- >> yes. >> even more than they registered >> right >> the ability to sell more right away. >> absolutely. the s.e.c. has just said, iron clad, that's not alolowed. and the s.e.c. is the enemy of the individual investor who will get smoked who bought the opening. this is what happened in '98 to 2000 go back and look at this the cbs market watch deal. that was the deal. >> you and i could sit here all day long and rack our brains and come up with a lot of names from that incredible period you're right many of them ended up being

zero. >> 330 i remember the lawsuit, they came out in favor of goldman. >> long list, pages and pages of all the companies when it finally all broke that were where they went public, where -- what they hit as their high and then all a buck, $2. >> and then gone. >> and gone. eventually disappeared. >> and gone. >> yeah. but doordash is not disappearing airbnb is not disappearing palantir is not disappearing these are viable companies with strong businesses that perhaps were overvalued. but nonetheless, there is no way they're going away they're not some refrigeration company that decided to become an internet company that wendt up ten fold that came down they're not cmgi you want to keep going here? >> no, but i'm looking at reddit now, you talk a lot about chinese stocks, saying, jack ma, please tell supreme leader winnie-the-pooh you're sorry there you go >> thank you >> that's the wall street -- that's the -- that's wall street bets probably more powerful than any single investment firm right

now. don't laugh. sure pushing gme how islaughing i'm giving you the story of a lifetime >> gme >> yeah, game stop >> oh. >> this is what is happening right now. we have to wake up to what is happening right now. >> we got to get jim off reddit or whatever it is he's reading over there. >> i'm not -- i'm not coming on here in the mornings and reading reddit >> no. >> i don't want to read reddit i'm just saying that there are different streams of knowledge coming into this market. and i would prefer the knowledge to come from firms that have studied things and understand, but these new -- these new buyers are simply -- they're not interested in what we consciously think matters. >> okay. but they will be one day >> we got to keep them alive >> i've seen this movie before >> we don't want this to happen to the reddit investor.

>> we wiped out another generation in 2008 >> we wiped out -- we love to wipe out people. i don't want to do that. there are people now who are trying to get information, and we have to give it to them we have to help them why is wells fargo, david, a buy opportunity? >> tell me, jim. >> charlie scarf was a brilliant man, he did in some things at visa, he's gotten rid of a lot of people who have not been part of the team. he can make that bank, which is the cheapest bank on book value, book value people who are just starting is what a company is actually worth when it comes to a bank and it may be an opportunity -- i'm trying to educate here >> i like it i like it. i think that's what we got to do every day. >> there is a look at wells fargo, you can see where it has come from and as we point out earlier, worst performing of the big banks. goldman, listening to david solomon, is up for the year. nowhere near its one time competitor morgan stanley's great performance this year as it pursues a different business

model in many ways and had success with that e-trade deal they didn't know what they were signing up for, before the pandemic they didn't realize how many new accounts would be established there. also asset management in terms of what gorman is pursuing and the different acquisitions they have done. morgan stanley performed quite well, up 22% for the year. we'll keep a close eye on wells fargo. >> gorman tried to get out of the etf basically the squandering of money from the etfs is incredible david, goldman barely above book value, trying to do a little education. if you were to close goldman, what it would be worth, they would give you the cash. they're not going to close goldman. they also can't merge it it is 85 billion goldman sells at ten times earnings largely acknowledged being the best of the brokers. >> yes they're frustrated at goldman because they also think that they have an incredible merchant bank, alternative asset business they get no credit for to the extent they can start to focus investors on recurring fees from that business, a la

black stone, they believe they can get the stock price up what is the larger question for goldman, of course, revolves around their efforts in retail and markets and whether that money they put toward it is going to end up boog a goeing a return on investment. >> i feel like what happened is that people don't understand that investment banks are different from regular banks and that, again, is because the etfs lump them all together f you speak to james gorman, he's eloquent in talking about how he's an asset management business and asset management is sticky and it is good i don't know i like him >> i'm thinking what jim grant said over the weekend, i think in -- at least published in barons, we are working on autonomous driving in this country, but also working on autonomous investing because of that index passive work that you're referencing i want to get -- speaking of positioning and opinions, b of a fund manager survey, once again, cash levels down to 4. triggering what they call a sell

signal do you buy that? >> no because we keep -- there is $5 trillion on the sidelines. what are those people doing? look at the yield curve. what is that $5 trillion doing that $5 trillion wants to be in this market. they want to be in this market and, david, those $5 billion, they're coming in. >> okay. >> the $5 trillion >> $5 trillion is coming in. >> think about when you're making. >> are they go ning into energy? first time we have got than specificity from them, since the greenhouse reduction plan. there is a satellite that the environmental defense fund will put up that will do nothing but monitor methane emissions, bezos gave them 100 million bucks or 150 million bucks to put the satellite up in the air. there is the exxon esg push to

some extent. they're under some pressure from a very small activist, but also have a larger potential one in de shaw. not clear where that stands in terms of whether they have a dialogue going there that was more focused in terms of underperformance from decisions they have been making in terms of their operating cost structure, and their capital allocation but they're coming back, jim, in terms of trying to make themselves palatable on carbon footprint. >> the stock has been a horse, occidental reversing today, people -- there is an upgrade, there is a lot of people who feel oil will breakthrough 50 and therefore you have to own them i repeat that chevron and pioneer, which is buying parsley, are the two best. and the rest i'm very unconceern about. people should recognize it is a winner >> yeah. oxy goes to overweight today. saying in 21, the last may be first for a while. all sectors green including energy to bob pisani.

hey, bob >> good morning, carl. happy tuesday, everybody this is a very frustrating situation for traders. the whole theme of the reopening is certainly the main theme that is pushing the markets forward but it is very difficult, a lot of stocks are overbought, and it is difficult to break out right now because we had such a huge oneup. you get this internal churning going on jim is right to point out, the big debate is do we bring back the lockdown trade it is a good idea, it is really risky because it looked like it was working yesterday, but not working today. 5 to 1 advancing to declining stocks look at the sectors here tech is up so is the reopening. banks are up energy is up industrial is up there is the reopening story it is risky to try to put the lock june trade on traders get burned on it if they try to do it on a day to day basis f you look at what is moving the markets, very good reasons to be concerned here there is some bad news out there. we got significant lockdown jitters. those comments from the governor of new york yesterday really

kind of, like, spooked people in the middle of the day. still don't have the stimulus, i don't care what anybody is talking about. we have really high valuations that we keep talking about the good news is it is hard for the markets to drop in a big way because the vaccine hopes have sort of limited the downside it is like a fed put there is one there, that you feel about, there say vaccine put there. that is in the market. how do you play this well, okay if you look at the reopening stock, the standard reopening names, your energy stocks, your chevron, your simon property group, the banks, the airlines, the hotels, all these had nice rallies a month or two ago. if you look at it recently in the last week or two, they're flattish they haven't really rallied much it is hard to keep doing that because they had such big moves up and we're not sure about how soon the big reopening story is going to happen. so a little bit of uncertainty there. sideways is what i would call this recently. if you look at the work from home stuff, actually the work from home stuff has held up pretty well.

surprisingly well. if you x out some of the food things here, activision, electronic arts, netflix, the electronic end, the tech end of work from home as opposed to the consumer staple end of work from home has actually done fairly well so there is some signs of a crack in the reopening trade, but i wouldn't say there is a lot of signs about that. you need some momentum on the downside before you really talk about the lockdown trade gathering momentum and i just haven't seen it yet. the other thing i would point out is there is a fed meeting tomorrow and traders, all morning yesterday, messaging me, bob, fed drift will kick in and sure enough, here it is the fed drift is a very well studied phenomenon, since 1994, 80% of the equity premium of u.s. stocks have been earned in the 24 hours preceding the fmoc announcement, there are eight of them on the year that's not a typo. 80% of the equity premium has been gained during the 24 hours

before the fomc meeting. this is a very well studied phenomenon, carl, it is not one of the you're imagining things, i see ducks and horses in the sky, the federal reserve itself acknowledged this phenomenon is very real and it allowed papers to be published on it on its own website, you see a tweet i did on the morning -- this morning if you want to see a link to that maybe the fed drift here is a part of this vaccine optimism that we're seeing today. back to you, carl. >> thanks. bob pisani speaking of which, we'll see what the fed decides and says about the next year tomorrow let's get to rick santelli hey, rick. >> there is also an influence on the treasury complex, of course, with the fed meeting tomorrow. first day of two-day meeting today. there is a drift upwards and you can see it, clearly. look at 24-hour chart of 10s now. long dated maturities around the high yield, low prices of the day. let's open the chart up to a week ago friday. december 4th

why? that was high close for ten-year notes and 30-year bonds. for 10s, just shy of 97 basis points so we want to really pay very close attention. if we start to trade above 92, that triggers a little extra selling last several times if you look at a month to date of 10s, you can clearly see there is an upward drift there month to date of bunds, you see there is not nearly as much of an upward drift. and the difference between the two is now over 150 basis points, which makes it just about the widest, darn close to the widest since covid hit in march. and finally, a lot of action going on in foreign exchange and on the dollar side, none of it is very good we're only down about a tenth of a cent, but should the dollar close here, it would be a fresh 31-month low close going back to you see the chart, april of 2018 carl, jim, david, back to you. >> all right, rick, thank you very much. we'll take a break here.

that drift that bob and rick were referencing is in play. all sectors in green vix is red apple, the number one dow component. we're back in a moment

.. ..

frank sloop is one of the greatest and watches the show and says initial phase of the lockup relief started today. employees allowed to sell portions of their vested holdings for the first time today. anticipation of the volume supply increasing but it's only 11 million shares. anyone who is afraid of 11 million shares, get out of the game this stock has declined 100 points, 11 million shares. be aware that it's only s1 my bad i was not ready with that mr. slutman is an exacting person and i, just like coach belichick, you got to do your job. david, dough your job. get it done. >> all right, i haven't looked

at the s1 either 11 million now is there more following? is there another date coming up, jim? >> man, now i'm pants eed twice today. >> sorry i didn't mean to do that >> 11 million is all i know. the stock dropped 100 points on 11 million shares, how ridiculous that is >> you also pointed out howry kick it ku ridiculous its valuation was >> and locked in soon. it's tiny now. >> i just tweeted airbnb is down 26% from the opening day high, jim. >> these offerings were felt to be done right and i'm telling you they were done wrong and the sec has to let the syndicate desk know, you have the flexibility! that's how this stops. then we get the other deals we're waiting for, right there's a lot of other deals waiting. >> they soak up all the demand, all of it, day one

>> just -- why are you so contrary >> just, you know, you're playing armchair syndicate head. >> i am. not monday morning quarterbacking i am hertz, best quarterback in the nfl. >> he is and going to start again >> there's hertz and then aran rodgers. >> we'll talk a break and be back in a moment don't go anywhere. dow is up 130. racy and inclusion is everybody's problem. and that's why we created rapunzl. the rapunzl app was designed for high school and college students to simulate stock portfolios. they're able to buy and sell stocks in real time. thanks to nasdaq's cloud data solution. if somebody tells you just download this app and you could potentially win a scholarship, and you're learning, it's like, yeah. information is key. having access to information at your fingertips on your mobile phone, on your desktop, or here on the screens, it really allows us to showcase what's happening out there.

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let's get to jim and "stop tradi trading. >> boeing, they don't need it, to me that's pure speculation. let's look i wouldn't make any decisions based on it. i think that would be a mistake. >> all right combing up tonight >> ring central, up more than 100%, a company that does video, you know, kind of like the video phone. avantor, key to make vaccines and calvin mcdonald now at lulu with fabulous numbers.

i love lulu. lulu is great and now, carl, i guess it's the next show i enjoyed the show >> it's always hard to say good-bye, jim, but we'll see you tonight, "mad money" at 6:00 p.m. of course with jim cramer right here on cnbc good tuesday morning, everybody. welcome to "squawk on the stree street". i'm carl quintanilla with david faber and morgan brennan we were up 208 or so at the early high but currently up 66 watching the fda briefing docs on dough mmoderna. our road map moderna on deck it's called highly effective, critical step toward emergency approval potentially this week warren buffett's call for action, urging congress to extend aid to small businesses as d.c. debates new stimulus proposals. apple shares, they are up and up nicely actually, almost 4% the company reportedly aiming for a 30% jump in iphone

production for the first half of 2021 first up here the rollout of the pfizer vaccine conditions. brian sullivan is on the road with morrison dixon as the pharma distributor distributes batches of pfizer's vaccine to hospitals in louisiana there he is. take it away, mr. sullivan >> yes, thanks, david. this is what we talked about yesterday, what we showed you, this is actually happening, the vaccines have just arrived here. we do not want to get in the way. the team at morrison dixon has three minutes to take, this is the real vaccine, the real deal, they're taking them from the freezers that just arrived off the truck for pfizer and u.p.s., they've got three minutes to sort them into smaller batches off the 975-dose pallets into the small foam container this is human beings working with negative 80 deal vials. they're sorting to make sure the rural hospitals, 200 across the state get the exact amount they need, not too much, because you don't want to waste it if they don't have enough people to take it these guys have been practicing

for this it's hard to believe, guys, we talk about the science, the billions of dollars that have gone into this, at the end of the day getting life-saving people across rural louisiana is coming to morrison dixon, taking tiny 2 mill liter vials with gloves on, negative 80 degrees, sorting them as fast as they can, don't drop any, make sure they're all safe and put them into the temperature controlled coolers, which as soon as that is done, guys, they're going to be loaded on to trucks, they're going to be driven around the state and we're going to follow one of the trucks, later on in lake charles, louisiana, which got devastated by storms, they've been dealing with covid and hurricanes and we're going to watch these vaccines arrive and actually start to be administered to emt and medical personnel later on today so this is the moment that we showed you yesterday, this delicate dance as we called it of time and temperature. carl and david, it's kind of amazing. you think about all the technology and the science and the money.

nice work, guys, nice work they've pulled it off and now the trucks roll out and we'll be with them and see you later today on cnbc. >> brian, again, you showed it yesterday. it's amazing to watch. just a great live shot how much practice did these guys do beforehand in terms of knowing exactly what they were doing, given the time constraints? >> reporter: they did a lot of practice these vials, david, we had some yesterday that were fake obviously but they're tiny and five doses in every two millimeter vial so you think about handling those, not only with your hands, but with gloves on, because it's negative 80 degrees celsius so it's hard you can't really feel it with the gloves on. they practiced over and over and over again, and now of course you got the packs not of dry ice but frozen ice blocks, they're in the coolers which are monitored as we said every ten seconds, that temperature is taken. this stuff is stable for about five hours at room temperature after that, it is not.

so temperature is incredibly key, timing is key once it arrives, it's got about 30 minutes to thaw before you can begin the inoculations as well i think it's amazing to watch when you talk about all the science and all the money and everything, we've come down to a warehouse in shreveport, and these guys here are the ones that are going to break it up into pallets and batches to the rural hospitals that don't need 975 doses, because if you don't have enough people, honestly, some of that hard to believe could go to waste. so great work by the morrison dixon team they have trucks going to 200 hospitals across the state we're going to follow, like i said, one of them down to lake charles. can you imagine, guys, lake charles, wiped out by hurricanes laura and marco, and they're dealing with hurricanes, no power, and the facility we're going to is apparently a tent because the roof got ripped off the actual hospital, they're dealing with covid, hurricanes, lack of power, but we're going to be there later on today when

the vaccines arife and they'll start to inoculate >> brian, i mean, the way you are explaining the supply chain to our viewers is amazing, because it's so granular it's so fantastic. i'm assuming that the workers involved, i mean, working in the cold chain is not new for them >> reporter: no, it's not, carl. this is the fourth largest drug pharmaceutical distributor in the united states, the biggest privately operated one you have express scrips and others they have wander drugs and diabetes that are their daily business and also trying to operate their daily business to make sure those other drugs get out to the hospitals and patients that need them as well and enroll the vaccines so they have to manage day-to-day but manage this to make sure a lot of this stuff was supposed

to be here yesterday obviously this is an incredible logistics story. frank holland has been telling it so well they've done meg has done an amazing job it comes down to foam containers answer styrofoam coolers with temperatures on it that is the amazing part of the sto story, to me at the end of the day it's people with trucks and sprinter vans and styrofoam and foam, making sure it's all getting there safe and sound great work, guys, great job by everybody here, and a lot of people are going to be very, very happy to see this come because as you guys know, louisiana has been one of the hardest-hit states and dealing with the hurricanes that just kept rolling in all summer long as well. tough people down here in louisiana as well, though, and we're proud to cover the story and we'll see you guys later when ambulance drivers start to get inoculated and learning how, by the way, to vaccinate others, too, to expand that side, as a

different angle. there's not enough people trained to deliver it so they have to train them so they can maximize the number of doses that go out. >> yes brian, as they say, scientists and doctors solve diseases, but it's logistics that solves the pandemic that's our brian sullivan in shreveport, louisiana. talk to you later on this morning. the aforementioned meg tirrell is watching not the pfizer logistic s but the possibility we might talk about moderna logistics next week. >> hey, carl, that was so cool, literally cool watching brian report on that the moderna documents out from the fda this morning giving us clues how the regulator is looking at this potential second vaccine to get authorization and reiterating the strong efficacy that they see in this vaccine, 95%, in preventing disease with covid-19, and also talking about the safety there the "new york times" reporting that after these documents have come out, the fda is likely to

grant emergency use authorization on friday. here's what the documents show us on the safety you do see injection site pain, fatigue, headache, muscle and joint pain and chills, the reactive genecity in the vaccine. they recorded rare events, swelling in the vaccination arm and bell's palsy, among two people who got the vaccine, just one on placebo, not sure if that is caused by the vaccine but that is something also seen in the pfizer study in something the fda is paying attention to no severe hypersensitivity or n anaphylactic reaction to the vaccine. we sue that when the pfizer vaccine got rolled out in the uk it's something to talk about and see how the fda treats that as the moderna vaccine will be rolled out first in the united states the efficacy, we have this great

graph after one dose, 14 days later you start to see the protection from the vaccine kicking in that's that blue line, whereas the orange line is the people on placebo in cases of covid-19 going up so you see some rate of protection against disease two weeks after the first dose these shots are given four weeks apart. one really interesting thing in moderna's submissions to the fda included today on the fda's website was the idea that moderna's vaccine may protect against transmission of the virus after one dose they found essentially when they swabbed people for the virus, when they came back for their second shot, approximately two-thirds fewer of the swabs were positive among people who got the vaccine versus placebo suggesting some asymptomatic infections start to be prevented after the first dose guys, this is important information to tell us if the vaccines will stop transmission and not just prevent us from getting sick that's important for getting to herd immunity so that's early data but promising

finally the fda saying it's going to ask that outside committee of advisers to vote on whether this vaccine, the benefits outweigh the risks for people 18 years and older, that's slightly different from pfizer, that was for 16 so that will come on thursday. potentially authorization on friday and then guys if all goes well, 6 million doses of moderna's vaccine will go out to more than 3,000 locations next week, joining pfizer making its way around the country guys >> fascinating looking at the chart of one dose versus two and what that means in terms of efficacy after one shot with moderna. but the other piece of this that i find kind of interesting is the fact that trials are now beginning for younger folks, for people for children, for teenagers as young as 12 what will those trials look like and i guess how will that continue to change and add to the picture in the coming months >> yes, so moderna started

those, and will get data they hope in time to support use in middle schoolers and high schoolers for back-to-school in the fall of next year. pfizer had already extended the age of its trial down to age 12, and so that's already been happening, and we learned last week during the advisory committee meeting that they will start in ages 5 to 11 in the spring or early spring of next year, and so this is the traditional way that vaccines get tested although it's much more sped up after you get data in adults, you start to lower the age as you are assured of the safety and you get more information, and so potentially for back-to-school next year for middle schoolers and high schoolers and we'll see for younger kids, too. >> meg tirrell, thank you for bringing us the latest stanford medicine is anticipating nearly 4,000 doses of the pfizer vaccine later this week it will be placed in the ultra low temperature freezers which you're seeing a picture of right there. joining us now is dr. lloyd minor, dean of stanford medicine dr. minor, thanks for being with

us today >> thank you it's good to be here >> you're anticipating delivery of the first shipments of the pfizer vaccine later this week we saw a behind the scenes look at the sorting process going into this very complex cold supply chain structure but behind that with the anticipation that we get in emergency use authorization for moderna as well, what does that mean in terms of preparing for what is potentially two different vaccines in your facility in coming weeks >> we're doing a number of things to prepare for distribution of the vaccine to the health care workforce. we've sent out a survey to all members of the workforce, more than 25,000 people, to ask if they would like to receive a vaccine when it becomes available and we set up several weeks ago a committee with bioethicists as well as clinician leaders to decide upon an algorithm to determine who will be invited and what particular time to receive the vaccine. this algorithm distributes the

vaccine to nurses, to custodians to food service workers as well as physicians but it does so in an equitable fashion reflecting the entire workforce that are so dedicated to providing the care to the patients who entrust their care to us >> perhaps i'm not surprised to hear the implementation of an l algorithm from a bay area hospital center such as yours, but in terms of what we've seen with not just the efficacy side of the data but also what one dose versus two doses looks like, what side effects look like, et cetera. what is your take at least so far on the pfizer vaccine versus the moderna vaccine? >> i think it's too early to make any determination about the differences between the two vaccines i think what we're already seeing is there are many, many similarities will there be differences emerge we'll learn that over the course of time. meg tirrell did a great job of describing the data coming out

on the moderna vaccine, some encouraging early results of the vaccine preventing the asymptomatic spread of the virus. we know that the trials have been focused on determining the efficacy of both the pfizer and moderna vaccines and preventing people from developing symptoms and getting sick but we don't know that it prevents them from harboring the virus, so those are studies that are going to need to continue moving forward, so that we can answer that important question over the course of time. >> -- among your staff and those who you are polling to taking the vaccine or uniformly is everybody saying bring it on >> you know, i don't know yet how many people are going to wish to receive the vaccine on the initial distribution, that's one purpose of the questionnaire that we've been handing out to people i mean, the majority of people will want to take advantage, but

there will be some that will wish to wait and that will be fine they will not be deprioritized or in any way discriminated against if people don't want to participate in the first round of distribution. i think there will be a lot of people that will want to participate. certainly when it's my turn, i'll be there to receive the vaccine, but i'll wait my turn and whenever it's determined it's appropriate for me to take the vaccine, then i'll be there to receive it. >> dr. minor, there's some research on wall street this week particularly out of goldman sachs which once again explores what they call a downside scenario in which astrazeneca and j&j vaccines don't work potentially because of safety. it's a bigger issue for europe and mexico and india, but i wonder if you think they're being too cautious >> it's always good to have contingency plans. i'm hopeful about the vaccine results and as we discussed on previous occasions, all the

vaccines, although they have different mechanisms, they're fundamentally each of them stimulating the immune system to produce an immune response to this spike protein therefore, the moderna and pfizer trials that are the furthest along providing evidence of a robust immune response, that portends well for the other approaches also. we will have to wait and see and as you've already mentioned, the logistics and the distribution mechanisms are going to be critically important as we roll out this vaccine across the country and around the world the more vaccines that pass the safety and efficacy test the better and i have complete confidence in the fda and regulatory mechanisms here in the united states to thoroughly review the data and to only grant emergency use authorization when the data support the safety and efficacy. >> dr. minor, finally we're talking about the rollout of the vaccines which is exciting and

certainly hopeful. in the meantime we on it see record numbers of coronavirus cases. the death toll climbing above 300,000 here in the u.s. yesterday. what are you seeing in the bay area given the fact that area not to mention more broadly swathes of california are back under lockdown and how does that compare in terms of people coming in your facilities, how does that compare to earlier in the year >> we're in the midst of the largest surge we experienced in the bay area since the pandemic began. our hospital is taking transfers from other hospitals, excellent sclab croatian and coordination to make sure people get the care that they need we continue to see that the people who are the sickest from covid-19 are those typically who are elderly and/or who have multiple medical preexisting conditions like heart disease, diabetes, lung diseases but this is a serious moment in the

pandemic wearing a mask, sheltering in place, avoiding gatherings are critically important measures to be taken until there's broad distribution of the vaccine and that's not going to be for several months >> dr. lloyd minor, stanford medicine dean, thank you for joining us today >> thank you still to come, warren buffett and david solomon of goldman sachs calling on congress to extend aid to small businesses we'll give you the details, that's next. don't go anyerwhe. digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential.

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now time for our etf spotlight. the health care seccer to ticker xlv continuing its climb higher, nearly 10% in 2020 one name giving it a boost, ally lily to buy prevail therapeutics for $22.50 per share and raised full year guidance that stock is up more than 20% year-to-date we're going to take a quick break. don't go anywhere. this friday you can watch the croods

at home on your big screen. we call that a window. window. dah, dah, dah. make it a croods family movie night with "the croods: a new age." go to watchcroods.com. becky is here to wrap up some of the sound of the small business if you missed it. there wasn't as much talking about it as pleading with congress to do it >> it's really a message that we

had coming out from these gentlemen today. big businesses for the most part are doing fine we noticed that from evidence set on a regular basis by the market averages. small businesses new statistics out from the u.s. chamber of commerce, they show that 62% of small businesses think the worst of covid's economic impact are yet to come. 74% of small business owners need additional government assistance to weather this storm and just 4 out of 10 small business owners believe their continue can operate inden any ofly without eventually having to shut down permanently buffett and solomon have a good read on this because of a program goldman has been running for a decade, offers help to education and access to capital and other measures buffett spoke at a graduation last month when several of the business leaders spoke out about the tough times that they're facing right now

buffett heard their pleas and hopes congress is listening, too. >> they need help now. if the government comes along and takes your land for the greater good, eminent domain fo the use of the people but the landowner gets paid and they've taken to fight the epidemic they've taken away the livelihood from really millions of people and those people aren't prepared to finance the year, year and a half hiatus in their business and the u.s. government and all the rest of us i think we owe them a continuation of the ppp program. >> so what's the collateral damage so far? there was a harvard-based data project that estimated that in new jersey, for instance, 31% of small businesses had closed down

by november 9th of this year it same story across much of the country where the small companies that don't have access to the capital markets faced much tougher times than the big companies that do. buffett points out that time is of the essence >> it's got to happen soon, becky. i mean, the boat is going down you need help and a great many of them need them now, as david said, 52% of them are not taking anything out of their business they've put everything they've got into the businesses they're in and congress, well congress should act if you're going to act a month from now, you know, why kill off another percent of the people that are potential successes >> solomon echoed a lot of the concerns about small business but of course it's not all bleak

news the vaccines as you all have been talking about, they are already being administered to americans, hopefully we make some progress on covid and that will bring better days soon. these companies may just need a bridge loan to get to better days solomon also pointed out that right now at least, things are looking a little bit brighter than a lot of the banks had originally estimated >> the economic scenario that is unfold something certainly at a base, a better scenario than what everybody anticipated back in march, april, may, and so if you think about that at a high level, you think about the way, you know, people economically model and think about reserves, we're certainly the base case today is better than what people expected as we were just into the depths of the pandemic at the beginning of this back in the spring >> guys, we also spoke with a small business leader this morning. carlo wa karla walker miller, ceo and graduate of the 10,000 small businesses program she said her revenue went to

zero back in the spring, when covid first hit, her business really picked up back over the summer and with the help of the ppp, she was even able to hire additional employees to try and keep up with the demand that she was seeing the question now of course is, what happens over the next couple of months, and it's an issue that a lot of people are looking to washington for the solution morgan >> it's such a key issue, becky. great discussion on such a crucial and important topic right now given the fact that so many small businesses are suffering so much this year. becky quick, good to see you, thank you. >> you, too. check out shares of apple, with the nikkei asia reporting the company plans to ramp up iphone production to 6 million for the first half of 2021, a jump of almost 30% from the same period a year ago. apple shares are up 3% we're going to take a quick break. break. stay with us grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust.

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>> welcome back, everybody i'm sue herera here is your cnbc covid update at this hour biden transition officials have been saying the president-elect plans to publicly get the covid vaccine ben dr. anthony fauci advises him to do that this morning dr. fauci gives him and kamala harris the green light not just because to show it's safe. >> for security reasons i feel strongly we should get them vaccinated as soon as we possibly can you want him fully protected as he enters into the presidency in january, so that would be my strong recommendation. >> just moments ago, the u.s. supreme court ruled 6-3 in favor of a colorado church thatle chaeninged capacity limits on worship services and germany's strong covid restrictions have shut down its many and beautiful traditional

christmas markets, so a nontraditional variation is becoming popular, drive-through christmas markets. lots to look at, lots of food to buy, as long as you eat it in your car the year to be flexible. you're up to date. that's the covid update at this hour carl, back to you. >> we've all got to adapt, sue, thank you. sue herera the vaccine news the last couple of weeks have given stocks a boost the question is what respondents to our new fed survey think about valuations steve liesman has that, good morning. >> good morning, carl. more than two-thirds of respondettes to the cnbc fed survey believe stocks are overvalued relative to earnings and economic growth. as overpriced as they were before the vaccine news hit. 68% of the 46 responded say prices are too high, down from 89% in september and well about equal to the view of the market before the pandemic or view of the market's valuation

getting the right level of stocks is a constant push and pull between the near-term damage and devastation from the virus surge and the promise of a vaccine. 52% of respondents say the market is optimistic about the potential virus outcome, more than 300,000 dead and new lockdowns around the country 46% say the market has it about right and on the other hand, 55% say the market assessment of the promise brought by the vaccine, that's about right with 34% believing stock levels just too much optimism. all of this results in a relatively muted outlook for stocks but an outlook for higher interest rates the s&p forecast to end next year at a modest 3714, with just 1.8% above yesterday's close it's forecast to clock in a more row.6 gain in 2022 it remains low for most of next year, rising to only 1.25.

on the question of whether fed policy is in the right place with the vaccine coming, 46% see asset purchases by the fed being reduced next year from the current level of $120 billion, but rates remain near zero through most of 2022 i don't know, david, if the market's been having that discussion yet about whether the asset purchase level is going to remain the same or go down next year >> well, we will, if we haven't yet, because you've already started it thank you, steve steve liesman. >> sure. our next guest warns if congress doesn't act and include funds to offset state revenue shortfalls and relief bill the consequences for state and local governments could be dire. joe is the pennsylvania state treasurer and joins us now nice to have you with us one of your many responsibilities is safe guard the so-called financial health of your state. what is the financial health of pennsylvania right now >> good morning, good to be with you. the financial health of pennsylvania like almost every other state is precarious at

moment and the underlying financial health of pennsylvania families is equally precarious, both of them caused by the efforts it's taken to fight this pandemic like a lot of states, we've managed to get through the current fiscal year, the one we're now in by piecing together a lot of things that don't have second acts, including, by the way, and i want to say the early parts of the federal response here have been very helpful and many states, but looking ahead to the budget that is almost upon us and looking at the enormous economic freefall pennsylvania families are experiencing it congress fails to react on relief now they'll be risking much worse consequences ahead, not just for pennsylvania but for the nation and turning the short term recession into a long-term depression >> i want to get specifics from you and also like to you respond, senate majority leader mcconnell in addition to many other republicans, some of whom joined us on air, when they talk about their unwillingness to

give state and local relief, talk about inefficiency and waste and use words as well that sort of imply a level of criminality to some of these states i mean i'm sure you've heard it. how do you respond >> look, i have heard that in the so-called blue state bailout from senator mcconnell and i have a couple of responses number one, that's the kind of political talk out of washington that causes folks out here in the real world, families who are struggling to wonder what they're thinking i don't represent a red state or blue state i represent pennsylvania, and that's how this crisis, this pandemic is not checking party registration or which state you live in. number two, i've been as tough a fiscal watch dog as anyone here in pennsylvania and of course all governments have their issues but this issue, this pandemic was not caused by anyone's inefficiency. it was entirely unpredicted and it's affecting all of us

and look, number three, you know, if senator mcconnell wants to be known as the guy who defunded the police around the country, standing in the way of state and local aid is a really good plan to do that if what he wants to be known as is the guy who responded and prevented this recession from turning into a long-term depression, there is no better, more important thing to do than aid state and local governments. we know that from 2008, we know that from numerous academic studies. this is 15% of the u.s. economy we're talking about. you can turn it into a political punching bag and doesn't do a thing to help the american families in addition to those who lost a loved one to covid or struggling with the economic consequences >> joe, i want to hear you talk about short term recession to this heightened risk of a longer term depression. those are strong words you're using there. why specifically do you believe this would roll into a depression if states and local governments aren't given more funding right now? >> like no one else, maybe with the exception of your previous

guest, warren buffett, i don't have a crystal ball but i know this, in 2008 we aided almost every economy we neglected and that was a drag and acknowledged to be a drag, have been a drag on the economy for years longer than it needed to be we also know looking backwards that states that were forced to cut their spending in the aftermath of the great financial crisis, lost 1.5% of their private sector jobs. states that didn't, did not lose those jobs so my argument is simple that if we don't, and there are estimates out there including from moody's, about the vast extent of, and it should be flexible aid to state and local governments, to avoid having to cut first responders, having to cuts in the health care system and education system if we don't do that, we are going to repeat that history in some fashion, whether that lasts one year, two years, three

years, what is clear to me is it's entirely avoidable. this is not and should not be a commitical issue that's why the national association of strait treasurers i'm a member of endorsed state and local aid on a bipartisan basis. it's why you have governors as diverse as andrew cuomo and asa hutchinson saying this is a national problem and demands a national and bipartisan solution this again i come back to what families here in pennsylvania are experiencing, not just what we policymakers are looking at, and that's incredible hard times and again to quote from mr. buffett who preceded me, there is a legitimate cry for help here i really hope washington steps up and meets it, because if they don't, there are dire and deep consequences ahead >> all right, give me a time line then. because it hasn't stepped up yet and in fact, the conversation come out of the capital tnds to continues to be the back-and-forth if they'll be excluded from the package if we

even get it. >> sure. >> we assume an incoming biden administration may move quickly on this. will that be soon enough >> i've been gratified by what i'm hearing from the incoming biden administration, and i want to say that i was gratified by the repedity and bipartisanship with congress' action, not all perfect but made a difference. you've seen that in our budget in pennsylvania and kitchen tables around pennsylvania and the rest of the country. here's what i will tell you. i'm not the governor in pennsylvania, but right now, he is most likely putting the finishing touches on his budget address which like governors around the country, not all, but he will give in the first week of february. so the idea that we can wait at a leisurely pace until january to say what we're going to do to help states meet this gaping need, especially when there has been some commendable action early on in this crisis, is

unacceptable now, some help later is better than no help at all. i'm viewing what's under discussion in washington as i hope a downpayment on even more robust package, but what's clear to me is we need to aid small businesses we need to aid families and individuals. in pennsylvania, with 600,000 folks who some eligibility for unemployment is about to expire, with 300,000 on the pua program, eligibility ends the day after christmas, and we've been grappling with state budget and depending on how you look at it, at least sort of a $5 billion covid consequence, and that's just beginning to count. so some of us are old enough to live through that effort ten years ago and have seen what worked and what didn't if we want do what we ought to do to heal the economic. as we fight the pandemic on a medical level, then we should aid the fiscal first responders,

the states and local governments out there especially at a time where we're asking them to be the ones to distribute the vaccines >> treasurer, appreciate you taking the time with us. thank you. >> good to be with you, thank you. meanwhile, speaking of leader mcconnell, 42 days since the election, he did officially congratulate the president-elect and the vice president-elect on the senate floor a few moments ago. take a listen. >> the electoral college has spoken so today i want to congratulate president-elect joe biden, the president-elect is no stranger to the senate. he's devoted himself to public service for many years i also want to congratulate the vice president-elect, our colleague from california, senator harris >> we'll keep an eye on that this morning the market is fading from the cow session high which was up 208, hanging on to 53 of those points we're backn mont ia me

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with the fed kicking off its two-day, what to watch into 2021 find out more on tradingnation.cnbc.com more "squawk on the street" coming up.

welcome back to "squawk on the street". i'm dominic chu. stocks off their best levels of the session, losing some steam tech utilities and materials as you can see behind me the best performing sector so far today within that material sector in particular, there are a few gas and chemical companies adding to the gains including sealed air corporation, air products and chemicals and several of the paper and packaging companies, also relative outperformers. watch names like amcor, international paper and westrock as well. materials one of the gainers today. morgan, i'll send things back over to you and the "squawk on the street" crew >> dom chu, thank you. as we head to break, it is another tough day for the recent

ipos, with airbnb now down 25% from its opening day high, another 2% now doordash also under pressure again today, also down about 2%. we're going to continue to watch those names, in the meantime, stay with us we got more "squawk on the street" after this break i think financial illiteracy and inclusion is everybody's problem. and that's why we created rapunzl. the rapunzl app was designed for high school and college students to simulate stock portfolios. they're able to buy and sell stocks in real time. thanks to nasdaq's cloud data solution. if somebody tells you just download this app and you could potentially win a scholarship, and you're learning, it's like, yeah.

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it's been an important year for cannabis the house voted to decriminalize. you have five states voting to legalize recreational or medicinal. joining us this morning, executive chairman boris jordan is back us with. good to see you again. thanks for the time. >> good to be here thank you. >> i wonder how you put this latest election cycle into context and sort of forecast what that means for additional states down the road >> well, i think, carl, it's been green wave. we were expecting it we did get it. but what is more important is the margin by which the legislation passed it was supported massively by both republicans and democrats both at the state level.

the further expansion of the cannabis deregulation is the senate and we'll see what happens there in early january but the trend in the country very, very positive with new jersey and arizona going to adult use. the governor of new york, the governor of pennsylvania and the governor of connecticut all said it's an important agenda of theirs to take their states adult use. and if they go adult use here in 2021, it will be 80% of the country will have access to adult use cannabis and so you would think that at that point in time the federal government would want to get involved and start moving towards some kind of further deregulation >> right does the industry think georgia is really a game changer i mean, are all eyes on the runoffs or is it more about making it a slow race, slow but steady race at the state level >> i think georgia could be a

bit of game changer. i'm not necessarily sure that's all positive, right? because we want gradual change rather than something abrupt if georgia goes democrat and, you know, there is sweeping legislative change at the level of the house and senate, he would like to make sure it is well thought through so that the industry gets a boost from it rather than creating a lot of chaos. but overall, we're very, very positive whether georgia is democratic or republican, we think that the change -- the genie is out of the bottle and the change ismoving forward. we're seeing the incoming chairman if republican of the senate banking committee who said he is favorable towards safe banking and regulatory change for banking the major banks can finance the sector en that would bring t-- and tha the cost of cop taapital down.

>> it's been a mixed year. a lot between different companies as we do continue to see more states legalize and now this push to decriminalize on the federal level. but it seems like that black market has been really sticky and is arguably the biggest competitor to illegal companies such as yours. is the time ever going to come where we see that black market go away? >> that's a great question for us the competition is the black market, the illicit market, the drug dealers that are out there peddling, you know, nonregulated product that is our biggest problem. in fact, one of the concerns that we had with the moore act which got passed in congress which we don't think will get passed in the senate, which ever way the senate goes, is the aspect of decriminalization. now get me right on this

we're for reparations and we're for addressing social inequity issues related to cannabis and the incarcerations regarding that but to decriminalize cannabis would only embolden the illicit market would only embolden them tow start growing, manufacturing, distributing unsafe products in the market so that's why i said we need really -- legislation where the industry together with the fda and the senate house works together to craft legislation that both puts a cap on the illicit market and actually regulates the legal market in the right way. >> but boris, it's david i mean in, new york, which i know you're expecting or hoping will legalize at some point in the not too distant future i feel like people don't have to go that route you're describing. they can go to a friend or a dispensary soon in jersey or pennsylvania or, you know, they came back from colorado or california just feels like there is an opportunity to get your hands on

cannabis if you want it from a reputable source >> you know what, david, you don't know where you're buying cannabis if you're buying it from someone the prices showed what it is like to go to the black market we had people that actually died from the vape crisis because they were using products on the tobacco side and cannabis side that were manufactured in illicit market that were just unsafe and the fact is the regulated market is safe it's like buying moon shine versus buying regulated, you know, alcohol products that are checked. people used to go blind as you remember back in the 1920s from the moonshine. and they obviously suffered from the vape crisis. i this the cdc proved in their research that it was the illicit market products that were the ones that were unsafe. and so i think for the benefit of the expansion of the industry, the safe expansion of the industry to a wider audience in this country needs to have

safe regulation. it needs to have the fda involved it needs to have a dialogue between -- i mean we never had a phenomena like this where you have this massive industry and you don't have any dialogue with the fda. >> yeah. boris, we're going to obviously watch it closely with your help g to s good to see you. >> thank you >> "squawk alley" starts after the break. at fidelity, you get personalized wealth planning and unmatched overall value. together with a dedicated advisor, you'll make a plan that can adjust as your life changes, with access to tax-smart investing strategies that help you keep more of what you earn. and with brokerage accounts, you see what you'll pay before you trade. personalized advice. unmatched value. at fidelity, you can have both. ♪ more than this

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>> good morning, it's 11:00 a.m. on wall street and "squawk alley" is live. >> good tuesday morning.