welcome, everybody, to "power lunch." the oregon of omaha calling it an economic war as small businesses fight to stay afloat amid more lockdown measures and more to come buffett calling on congress to get a deal coming and he says the clock is ticking and is it ever >> and we have the latest from the gornd as moround as more heh

workers she the vaccine. and how some are benefiting as chain smokers. we'll speak to the ceo hig, tyler. i'm kelly evans. stocks are at session highs right now. the dow is up about 350 points as congressional leaders get set to meet for more talks despite the optimism, the stay-at-home trade does continue to hold strong etsy to zoom all higher today. and iphone planning to ramp up production next year shares are up 4% back to you. >> the markets and the economy waiting anxiously for the vaccine. it is providing a bit of a light

at the end of the tunnel, a cliched phrase you're going to hear a lot of. speaker pelosi to meet this afternoon. warren buffett calling them on cnbc to get a deal done. >> it's an economic war. and certain, you nope, when we went into world war ii, a lot of industries were shut down and everything went over to defense production well, we've shut down a lot of people in this particular enthused recession and others are pros sppering and i think te country owes it to the, you know, really millions of small business people. >> let's check in with ylan mui for what's happening down in d.c. >> hi, tyler what's known as the four corners will be meeting in just about two hours. democratic leadership, nancy pelosi and chuck schumer, as

well as gop leaders mitch m m mcconnell and kevin mccarthy now, already we know that the treasury secretary, steven mnuchin, spoke over the phone this afternoon for more than app hour with nancy pelosi he'll be joining this 4 p.m. meeting by phone as well and last night mcconnell and mccarthy issued this statement saying it's a time for republicans and democrats in the senate and the house to find consensus on covid relief before the holidays we hope our democrat counterparts share our sense of urgency. now, we have been expecting that lawmakers would strike a deal on a comprehensive spending deal sometime today and perhaps even release the legislative text clearly a covid relief compromise has been more elusive but it does now appear that the wheels are washington are turning, guys. this meeting this afternoon is a significant and necessary step to hitting the friday deadline and ensuring that the government

does not run out of money and that americans finally get relief back to you. >> ylan, when is the last day congress is nominally supposed to be in session for this term then it's over and we're back to january 3rd when the new congress is seated >> friday is the last day congress is slated to be in session but as we know, these deadlines do tend to slip. i believe it was senator bernie sanders who said to reporters "we could be spending christmas eve together." hopefully it gets wrapped up this week. >> that would be a fun week, wouldn't it, with the democrats and republicans together the markets have seen a bit of an ipo frenzy, airbnb, doordash and others making block bbust ae

d debut. and earlier david solman explained why he's not buying the hype >> i do think we're at a moment in time when there's a lot of euphoria i personally am concerned about that i don't think in the long run it's healthy it will rebalance over time. you but there a lot of great companies that will come to market and we're reaching the christmas holidays and it will slow down and my guess is it will pick up in january. >> mike labella is head of strategist and craig fair is an investment strategist the ed jones. mike, they're talking about ipos and saying on the one hand there are some great companies with very nice revenue and profit potential if they're not already

making profit. on the other he's worried about frothiness in the ipo market where do you come down on this and what do you advisory tail clien -- advise your retail dliencli to do or not do? >> when you look at those returns, what you'll find is they're concentrated very heavily in just a couple of companies. 80% of the s&p 500 return this year is attributed just to the top ten companies in the market. so there is an enormous amount of companies out there that have been left behind by this recovery and there is probably ample room for them to continue to rally into 2021 as the economy starts to open up. the biggest rally and stimulus of all was vaccine starting to get into our essential workers and that's going to give markets a shot in the arm throughout 2021 the head of the vaccine program

for the u.s. government think that close to 80% of the population may be vaccinated by next summer. that brings us right in stepping stone of heard immunity. when you think about the stimulus coming, likely to come in hopefully before christmas to bridge us over through this dark winter and then monetary policy likely to continue to flow throughout 2021, that provides a great environment to these companies that have been left behind outside of those top ten where there had been some euphoria >> i'm going to come back to you on the ipo question in just a moment, mike let's hope that the governor is correct and we can get 080% of the population vaccinated. it's going to be a very strong sense of salesmanship here a lot of people are just afraid to take it craig, let me go back to specifically on ipos, i take mike's point that most of the

gains in the s&p have been concentrated on ten stocks and so but specifically at ipos have come out at very high prices and they've doubled or gone way up are you worried that there is too much euphoria there and that this reminds you potentially of the year 2000 when people who got in got burned? >> it smacks of 2000 technically because it's in the tech names and startups you'd have to go back to 2014 to find a year anywhere near that strong remember, 2014 was a pretty good year for the market and we attacked on several more good years after that i don't think it'sharbinger of longer doom for the markets but highlights pockets of up forria y -- euphoria you can look at internet names

there have been roadblocks i've witnessed my daughter play it i don't understand it. but it speaks to the idea that there's such a search for growth and huge liquidity in the market and funneling its way into ipos, it's a very small sliver of euphoria in what i would say is a complacent market. it certainly worth paying attention to because at some stage you reach heights that can't be main it and. >> -- can't be maintained. >> let's leave the ipo thing behind and go back to your main point, which is there is something like 80% of the s&p that has modestly participated in the rally, if at all, and i assume that that suggests that that's where you would scone trait your stock picking now what are those sectors, how important are dividends to your thinking as you turn into 2021

>> tyler, as you mentioned, there's been a significant amount of euphoria in certain pockets of the market, and those areas have to be cautious. there's still opportunity for sustainable growth in many of those area, but with valuations where they are, you have to look at the broader space and when we think about dividend oriented equities, they're one of the sectors of the economy that has trailed the wider market so talking about reminding viewers of 1999, the spread between growth stocks and value stocks is at 35% to put that in context, in 1999 it was right there and that's after the value rally we saw in november so there's significant opportunity for many of these other areas of the market that are going to participate in the reopening trade. why incomes and dividends are particularly important beside the a fact they're cheap relative to the market in the hole, we're going to be in a lower to longer environment for a couple of years now.

the shift of the fed means they might not raise rates for years. what that's going to do for income-oriented investors with real returns near neg tough 1% equity's dividend players are delivering three to four times the amount of income at a really attractive valuation that is diversifying away from the euphoric curve in the market right now. that makes it a clear opportunity for 2021 >> gentlemen, we thank you for your time. have a great holiday season and we'll see you seen again kelly. >> we're awaiting word on moderna's emergency use approval we've got the latest detaste on when to expect that decision and how quickly it can be rolled out. moderna shares down 6 today and down 14 over the past week and it's a great day for retaers thilwi a seismic shift

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vaccine roll out continuing today. the f p fda says the moderna van is safe and effective. >> good news today ahead of this

big meeting on thursday confirming the efficacy that we knew about, 95% in preventing covid-19 disease on safety pointing out some of what you might feel after you get these shots, injection-like pain, fatigue, headache, joint paintin pain and chills and something called bell's palsy. no andaphylactic reactions were concerned. now in terms of efficacy, we saw this beautiful graph showing moderna's vaccine provides protection starting two weeks after getting the first dose in is a two-shot regimen. you get two doses four weeks

apart. even two weeks after dose one, you start to see the split here between people who get the placebo and people who got vaccine in terms of being protected. and also tips that the vaccine might protect against the virus completely so that will take place, the fda's outside p side p side advisers will vote at the end of the day. so thatif they get the green li, shipments of 6 million doses will start going out next week to more than 3,000 low casss they will be going across the country at tum eye -- what have

you learning about the administering of the drugs >> yeah, they're noting these are challenging drugs to give. "the intravenous administration of the therapeutic to patients with confirmed mild to moderate covid-19 presents unique challenges to the health care system." it needs to be administered really close to when you got the disease. people are going to have abo --n to be about a million doses available. the states are only able to use 5 to 20% of the supply right now and he's just disappointed

because it could be a very helpful drug >> hopefully this will be more attention to the fact that it does need to be administered >> kelly, meg, thank you still ahead, billionaires from larry ellis to elon musk are flee the state for greener and, well, sometimes browner pastures is it putting the largest economy in jeopardy. and peloton soaring 340% this year while planet fitness is down 2%.

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. let's give um some of today's power movers, shall we eli lilly buying prevail therapeutic for 880 million. and it could be more if the drugs get regulatory approval. lilly raising its earning. prevail up 82% higher. chewy is higher after the ceo is hoping to expand product offerings and hopes to monetize

its new and free for now telehealth service connect to a vet. the cat just talks directly to the vet via zoom it works great, trust me fannie mae and freddie mac getting hit hard they're being kept under government control in hopes of boosting housing affordability 17% moves down for fannie and freddie. now its time for seema >> how quickly could life return to normal once a vaccine is made available and what could it mean for the word of fitness? planet fitness down about a percent and peloton up both have outperformed let's got to the "trading nation" team today

mark, from what i gather, you're an owner of peloton shares but you'd like to pivot into planet fitness to the idea that we're going to stop using that like at home and return to the gym, right? >> yeah. as we look forward to 2021, i would begin to rotate out of peloton into planet fitness. i'd get really interested in planet fitness in the low 60s. we have a lockdown flairing up right now and it could certainly pull back to $60 it was between 50 and 65 all summer long while gyms were open here's why i've always loved this company, i just haven't been able to get in at the right price. it is a unit growth scoring. second thing is their subscription model is absolutely genius at $10 a month, it's actually

more painful to cancel your membership than it is to just keep paying them i was talking with a buddy today and he told me it took his wife almost a year to cancel because you actually have to drive into the physical location to do it she's like just keep taking my ten bucks a month. i have a nice home gym but even i would pay for the opportunity to get out my house. i'm not pulling the trigger on this trade yet but i am washingtoning it >> a lot of people invested $3,000, $4,000 to boy that peloton bike it takes a lot to get that person back to the and even their membership base is at 3.1 million versus 4.1 million in the prior year what does it mean for the stock? >> mark, i hope your wife ain't listening to this egment it's trade 300 times next year's

earnings but they are spending a lot to grow imimpressed how palanin happe d happened. >> any hesitation into those february 3rd earnings and i will look to protect because we will cover those holiday orde orders there's a certain smoing up and taking sub at the $40 month. planet fitness is $10 a month. i think peloton was the first to capitalize on the social networking digital environment where a lot of other exercise and these kind of experienced companies have failed. you look at lululemon, acquisition of mirror and i don't think it's gaining momentum

the popularity of cycling is increasing i turned 40 and i got two mris after no injuries and a college career people are getting away from the impact of exercise, putting $3,000 down to get machine i tepper's cautiousness going forward. >> for more head to our wb sieb site >> coming up, apps like robinhood. and we'll check in on the state of the golden state as california tourism gets crushed by covid and we'll look at retailers facing a make-or-break holiday season all that and more coming up and this

different sectors tend to do better during different periods of the economic cycling. when the economy is expanding technology has outperformed but when contracting utilities and consumer staples tend to outperform in a land not so far away,

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good afternoon here's your cnbc covid update at this hour. an australian company has soo d received the first fda authorization for a fully at-home covid test that does not need a description it contains a device that connects to a smartphone giving a result in 30 minutes previously a test was authorized that needs a prescription and an over-the-counter kit that has to be set to a lab. today kaley mack nan y mack na-i

only a small number of members of the white house will have access to the vaccine. >> physical distancing by santa claus and also of the churn tiln themselves must be strictly enforced it's really important that the children of the world listen to moms and dads and their guardians and make sure they go to bed early on christmas eve but santa will be able to travel around the world to deliver presents >> very important to update that, tyler. >> i'm comforted there and are you going to be frosty the snowman? you're safe, right >> i can neither confirm nor deny reports that i will be out with santa that evening. do you leave mince pies out

whoer? >> o -- out here? >> no, no. it's usually oreos or jack daniels and milk >> mince pies needs to cross the atlant atlantic >> frosty, thank you >> thanks, ty. >> markets are higher in hopes that news of stimulus will move the market s&p up about 1.2 and look at the nasdaq, 1% higher. russell once again better by 2%. kelly. >> tyler, thank you. frosty, thank you well the march lows has brought in many retail investors. kate >> hey, kelly, this new

generation of investors is taking to reddit, twitter and even tiktok to post about their trades sofi announced the ability to follow and comment on trades webull does the same, commonstock is a social net work for investing and public, which announced a funding round today is a broker that also calls itself an investing social network. by only allowing verified traders into these conversations, companies say that it's safer for the flog of new retail incestors they avoid those sites that look for trading advice this u might n you might not know the motives behind such advice researchers found that trade who are had the right balance of diversity of ideas had a return

on investment that about 30% higher than the others kelly. >> it's fascinating, kate. thing you this and investors included tony hawk, will smith and the -- anyway, public.com has raised over $90 to date for its platform joining us is yannick, co-founder and ceo of public.com it's great to have you here and it really interesting of the the -- you guys didn't allow day trading. is that right, jan nick? >> public is the main local and

we establish the p and so to solve the problem, we launched public.com, based on two key technologies that didn't really exist at the time, the fraction and then to appoint a true sessions in, they can building and and they were to build a more than but we also have launched features like safety lab else that help indicate to the users what dogs might be riskier than others, which we found very helpful, especially in situations when herds fwt got

traded up quite heavenly >> it looks like you and so there as a number of different ways can you monetize this >> no do you for a number of these different platforms to exist or not >> yeah, certainly so. on the revenue piece i think one interesting thung frpg we had the opportunity to generate revenue from a diverse so the. that everybody else isn' engaged in necessarily in terms of the market, i mean

wai waive. the tools and if the than that offered by many of the many make their first self-directed trade on public. and i think if you look at what a new investor really requires, it's not necessarily all the bells and whistles and the very advanced features that many platforms have, the margins or options trading and things of that nature but really more a community that can actually help you grow your own financial literacy that can present sort of a diverse set of thoughts around different companies, how to ef val wait them and help you understand solid investing habits and what it means to build out an ining strategy based on a diversified portfoe o foal -- you mentioned when you guys banned.

there are some critics at the top that how do you draw the line on which yeah, i think it goes back to who's your audience and who are you reallying building for >> so again, on public 09% of invest are new investors in with that, we expected so in the herts situation, a a relatively unprecedented situation at the time obviously, where you really had a company that was being traded up, think 600, 700%, i think in the few, miling was

created a lot, had a generally throughout history but certainly our reality base everyone doesn't always no -- i russ have it it. >> and the way that works inside with the social network is you see some indicators are batch you can get to the dmunt and make a more yfd decision that's something i think we can you a and we'll can have more involv involved. >> thanks so much, kate, for pringing that to us and for your reporting as well. over to you, ty. >> we continue to watch the vaccine roll out brian sullivan is large in lake charles, louisiana, where they

received remember ray from morr morrisin rent from so these folks were not only dealt with getting the fax here n housers or trails are are of what in just received it and you can see that's the cool. you goss to understand what's in there. hundreds of doses of thattine that we've been waiting a for a hong it. we basically came with the van on the way down. the first thing that's going to happen is they're going to take this out and give it up to and a

lull and we hope it nfbl given it to me sfchl the ones who have not only been out there, they've lost family members. they've had family members get sick they've been picking people off couches with a 140-degree temperatures but they've-the-had to did it a riffing the n

inside that sty row -- styrofoam cooler with the temperature control, it is the beginning of getting kids back to school and our lives restarted and they're and we goo g phase one, phase 1 a and phase b and b 2. thanks to all the acadia ambulance folks who are will start injecting people >> fascinating story to watch it from one place to another and now finally in a few minutes into actual human beings will then be inoculated, we suspect, from the virus >> the whole nation dealing with these troubling times but california has been especially

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lockup restrictions tightening up again in most of the country and hitting california particularly hard on top of that. we've seen big name companies and big name people like larry ellison and elon musk saying they're leaving, they're getting out. kate rogers knows. hi, kate >> well, the california economy has taken a hit due to bo we're here at mish enman as worth, when, if but it's much slower right now due to the restrictions that you just mentioned, newly put in place, about 85% of the state is under some type of restricted living right now. there are grim stats here also from the state's tourism dprup it will with you represents a --

what's nor 601,000 or more toughism grand are loss. s have the >> california is a more tourist becaused dmi which is 'tis and california has largely pursued more aggressive public it willcies when it comes to attempting to control the virus. they've been obviously keeping restaurants closed, more so than other pies evening and disney land here is still completely closed >> thanks are also die and the california association says one in only restaurants will close their doors or downsize in some

formia so the vaccine is and the state and the country has a long way to go before we get back to normal >> so they're a to youest havf. >> so given the drop we've seen, visit california says it will tack fap and ucla says overall the state's economy it will and, kelly, over to you >> well, let's go to the bond market now that's where rick santelli is tracking the action at the cme this afternoon hi, rim. >> hi, kelly indeed if you look at an interday, actually a 24 four view snrnl but some fascinating technical

california and they looked almost exactly alike the difference is that 174 was the november high for 30s. tens took theirs out 30 had much year bond, you want to play aalex um1% is what everybody is looking to test just a matter of when and finally. big divergence the f and the doit's a 31-month low close, kelly and tyler, back to you >> it has been of course an incredibly difficult four we

refastbar some names like maceies kohl's have underperformed. why this could be a make-or-break holiday for names you know in retail this holiday, get iphone 12 on the 5g america's been waiting for. this new iphone plus verizon 5g is incredible. switch now and get iphone 12 pro max on us. unlimited plans start at just $35. this is 5g from america's most reliable network.

retail association there is more than $766 billion in sales up for grabs this holiday season. but not everyone, of course, is going to benefit it is a make or break holiday for retailers like the gap, l brands, macy's they are all trying to turn their businesses around. for more, let's bring in cnbc.com retail reporter lauren thomas there are a lot of the usual suspects on the naughty list here, lauren >> that's right. the national retail federation is calling for a strong finish to a year that's been incredibly rocky for the retail industry. they are expecting sales could rise as much as 5.2% from 2019 levels of course not all companies are going to be declared winners this holiday season. for many, it is a make or break time of year and 2021 could bring more

bankruptci bankruptcies retailers like gap, l brands, which owns victoria's secret, kohl's, macy's and bed bath and beyond are in the midst of more turnaround acts that could close a lot more close kohl's, 95% of its stores are located off mall we have seen that during the pandemic consumers are more comfortable shopping in the open air centers versus in closed malls. really, the retailers could use a strong holiday, a strong holiday season would put them in a better position in their turn around plans and a better spot to start the new year. >> you almost have to be a multichannel retailer these days i went to a major retailer i don't know whether it is true in other parts of the country.

i will leave the name out but they were regulating the number of people who could enter the building and there was a long line and i just said forget it. i'm not going there. i am not going to wait for 45 minutes in the cold. so i will go on their website and buy what i wanted to buy >> absolutely. well, you are not alone. i have heard many anecdotes of consumers sharing that same experience today, though, is actually the shipping cutoff for carriers like u.p.s., fedex, and the united postal service foreground shipping to get those packages to your door by christmas eve. here's where we run into this dilemma. like you mentioned many retailers still have capacity restraints in stores if you are a procrastinator this holiday season shopping at store is no longer the right option. you know, the cdc is actually recommending that you shop on line and avoid crowded stores this holiday season. but when we've got these shipping cutoffs now so retailers are encouraging

customers to buy on line, place an order online, but then pull up to the parking lot and use curbside pickup. then you run into the scenario where i think we will see a lot of crowded parking lots this holiday season stores might be empty but certainly from here on out it is crunch time for retailers. they have got to figure out how to use the other services. >> lauren thols, cnbc.com, we appreciate it. kelly. >> stocks are higher across the board today with the dow up about 350 points right now it is close to session highs this on vaccine and stimulus hopes. we expect more words in about an hour's time out of washington. tomorrow join us for a special edition for the healthy return to live stream with dr. anthony fauci and operation warp speed's dr. somehowy register for that at

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we can make it work for you and your business. ♪ kelly. this year is going to be remembered for many things, undoubtedly, one of them is going to be the comeback this the equity markets from the march 23rd lows to where they are now. very close to record highs nasdaq near a session high right now up more than 1%. look at the 1% gapes for the three major indexes. russell 2000 is up better than 2% in a year if you had asked me in march where we would be, i would have said nowhere near here. >> not just that we came back from those lows, the nasdaq is

up 43% as of when i checked yesterday. 43% since january. companies like apple up more than 70% let's do a check on those shares they are helping the dow and the mole market. apple is up on announcements about a boost in iphone protection next year we will hand it over to "closing bell." tyler we will see you tomorrow see you tomorrow. welcome in to "closing bell." i'm wilfred frost along with sara eisen the dow up 1%, having its best day in weeks the russel is up near 2% coming trying once again to push through new stimulus before the end of the year but the path remains uncertain. some meetings this afternoon we will keep you updated plus we are seeing weakness in recent ipos. doordash airbnb and snowflake all lower. on the flip side defensive sectors, value outconfirming, materials, utilities, financials are leading the charge all sect