yeah >> we will see and then bitcoin, crossing 20,000 i'm sure we'll talk more about all of that tomorrow make sure you join us tomorrow we'll see if there is a snow day tomorrow "squawk on the street" begins right now. good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures steady lots of moving pieces this morning including the reports of a fiscal relief package being finalized as soon as today good thing, because retail sales did show their first drop in seven months it is fed day. watch bitcoin crossing 20k our road map begins with, quote, getting closer. that's the message from senate leader mcconnell on the potential for a prechristmas covid aid package. >> as covid cases and deaths remain near records, the white house in talks with pfizer regarding additional doses of its vaccine. this will be for next year

and this morning we have airlines under pressure. united, jetblue and spirit getting hit with a double downgrade. yeah double jpmorgan has disappointing demand trends continue as we head into the christmas season >> yeah. and more commentary from southwest on that, which we'll get to, jim. they say that congress never acts until the fire is in the room and clearly retail sales today suggest that the consumer is finally starting to tighten the wallet >> yeah, look. i think that they only go on vacation, i thought that senator mitch mcconnell said, listen, we're going to get a deal. i don't now how big that deal will be, but i do take it, let's say, seriously when the one person in the room who stood against -- or wasn't even the room, against stimulus now realizes that we have to have it carl, these unemployment benefits are going away. evictions are going to start in january. the retail sales number says, you know what, you may think we're going to get to the promised land, but holy cow, we

got to do some swim before that. not everybody gets through the red sea. not a good time. david? >> yeah. >> you know. >> what? >> we are jordan river excuse me. let's get the right river. >> okay. >> you know that we are far too optimistic about what the vaccine can do versus the decimation that we're seeing right now. >> well, yeah, in terms of timing, you mean. >> yes, timing >> right yeah there is no way that you're going to be able to get out in front, unfortunately, of what we're going to see over the next few couple of months really, jim, right there is concern obviously about a lot of people getting together during the christmas holiday and therefore seeing once again a spike, somewhat reminiscent of what we have seen after thanksgiving i don't know if we should be thankful some were talking about we would get to 300,000 cases a day, we're not. we're more in the 200,000 range. but we know what is going on a lot of these states.

we any what the governors of some of them are talking about inpeterms of potential further lockdowns, i hate to use that word and the point you've been making, we have been talking about, time and again, every day here, of course, has been what is the impact going to be on the small and even medium-sized businesses and all the workers who are looking to congress for some sort of help here and the state and municipal governments. we have a never-ending parade of state treasurers or governors come on our air and talk about some of the dire forecasts they see in terms of the need for cutting substantial jobs as they head into next year to balance their budgets. >> yeah, carl, when we look at these -- who is paying for the vaccines, when we look at the states' knowledge of how to handle the vaccines, it is the chaos that i think a lot of people are afraid of i think other than these first line people, you got some people giving it to teachers, some people giving it to the elderly, some people to the nursing home,

some people are saying it is going to be at cvs all i know is that if you worked at a hospital, you got it, you're getting it, and everybody else seems look a free for all a free for all >> yeah. gottlieb with some really smart comments about what the spring, even the late winter is going to look like because according to gottlieb it going to be hete heterogeneity, stark differences from state to state on how they distribute the vaccine secretary azar on the news with shepard smith last night talked about when you might actually get to go to a cvs and get the vaccine as part of the general population take a listen. >> i believe that by the end of february, end of march, depending on the decisions by our governors, but i believe we'll have enough supply out there to be reaching out into the general public for administration at your cvs, walgreens, krogers, near the end

of february, into march. >> jim, already the uk has vaccinated 130,000 people in first week >> yeah, they make a lot of the substance for every single one of the vaccines and they're saying that too bullish -- i'm too bullish short-term, meaning the next month and a half. did not necessarily disagree about the vaccine glut, by the way, it is all j&j, carl you can have pfizer maybe boost by 50 million, but all j&j i'm told the j&j is still on target but if j&j does a one shot vaccine, and they have as many as i think they do, then we will have a vaccine glut and we'll get to the first quarter, end of first quarter and we will be in good shape, but, david, if we do not get something that tides us over, we have a big gap between -- between now and march. >> yeah, we do we do. we talked about it, and it could

be a big issue that said, the stock market, jim, just does nothing but go up nasdaq now up 40% for this year. the s&p having a very strng year, up 14 plus percent at this point. and you see, we're setting up for what would appear to be a slightly higher open this morning as well. i guess we're going to hear from powell later, right? >> yeah. >> not expecting too much there. but that story continues as well and certainly the suffering of small businesses and the unemployment levels just not really something that the market -- not a human being, the stock market, but to the extent its participants are really care about. >> look at that chart. what is that a chart of? a chart of costco? which means that the small guys gets wiped out because costco offers a superior price. is that a chart of the semiconductor, which are

thriving because of the stay-at-home work situation? it is not a chart of the restaurants that i know. it is not a chart of the small businesses that i know it is a chart of the winners and i think that the people who are small business that create most of the jobs are not in that chart. and that chart is a very compelling statement about the small businesses in the country. >> and the acceleration of all the trends we talked about that will stay with us long after the pandemic and i guess the question becomes the big have gotten bigger and stronger >> yes. >> what is it going to mean for the competitive landscape that exists prior to the pandemic after the pandemic >> i had lulu on last night they're saying that not only is the country going toward a more casual look, lulu and a hybrid economy where you'll be at work or at home, what does it say about all of the companies that

produce expensive clothes? nice clothes department stores? is lulu taking over the world? no, but the concept is taking over the world and i know that people say the malls are open, everybody wants to be very bullish because it is the holiday time, this is a santa claus rally, but what i'm looking at is, again, with the charts that i see, is that the destruction of the way we did our -- that the country worked a year ago and a whole new way. i call it the hybrid economy literally we choose where we want to work and when we're not working, at the office, which i think most people don't want to do, we're wearing lulu we're not wearing clothes that cost a lot of money. i know he pvh is having a good quarter and that's terrific. i think the hybrid economy is so different from what we expected that what matter is security, what -- cybersecurity and that breach was really bad, and what matters is the notion that you're not going back the way

they want you to nobody wants to get sick >> it is a great point how this is all going to change post vaccine, jim. and i want to ask -- i want to listen to a sound bite with you and lulu from last night and i want to ask you about nike on the other side take a listen. >> sure. >> i don't see any real material impact slowing our business down and we're committed to our analyst day goals of by 2023 excited about the next few year and beyond >> it is a good setup because nike, jim, reports friday night, which is not usual, and it raised all kinds of guesses why that may be happening. >> all i know is that lulu, williams sonoma and nike are the front-runners in what i call the change to the direct to consumer economy. dtc. if you know your shoe size, you can order nikes. i think that -- i don't know why nike is reporting when nobody is going to be around all i can tell you is this business is strng ong in china,n

business is strong in the united states but the direct to consumer, lulu at 40% we don't know how far along nike is williams sonoma more than 50%. people want their goods delivered to their house they don't want to go to wherever they were being sold. with the exception of home depot, and lowe's, with the news this morning that black & decker is going to have 10% organic growth rather than 3% to 5%. we are still going to the major big boxes in order to be able to take the money, i think that will include the money we're going to get from the government and fix up our houses if we're lucky enough to have a house >> right so the only hope for brick and mortar at this point and small businesses if the russians continue to increase their cyberattacks and shut down the intear digital economy and then we got to go to stores with actual cash? >> the russians, i mean, the

russians are coming, the russians are coming. >> he was specter. special -- >> i'm saying enemies -- >> terror and something -- >> well, yeah. and the united network of -- man from uncle what i think -- look, david is absolutely right in terms of the scariness of the russian cybersecurity breach i thought that we have all these companies that do cybersecurity. i think he's also right in saying that you can open the mall and holiday season is here, but, carl, i just think the world has changed. contactless, you got -- i don't know about you, contactless means to me i'm not going to the mall and that's great for the -- the companies you're seeing right there and the watch list it is not great for the small business people. we see the great ads for small business they can't make it if they don't have more customers. and they don't have the

customers because people perceive it as dangerous, which is ridiculous. how about the way they close all the restaurants? every one of restaurants in new york >> look at brinker's commentary today, even though some of the comps at chiles are doing better than magiano stifel takes which s chipotle t. >> i see them 1500, i go to 1800 chipot chipotle, these guys are completely digital by the way, what chipotle has done, which is really extraordinary, they make as much money with people -- when people are going into restaurant as they do now with really incredible ecosystem of everything digital david, chipotle has digitized the restaurants in a way that nobody else has. and that's the casual dining, good food, that you can order, that they can give you, that you can drive through and talk about having 6,000 chipotles

>> how many there now? >> a couple thousand. >> that much increase? >> yeah. >> i had no idea that's a lot of chipotles. >> game, set, match. it is brian nichol a lot of this is just management management that understands that you got to get digitized >> you do. >> if you're not digitized -- >> you're in a very -- a deep hole >> yes >> and how many -- how many companies have the forethought to bring in silicon valley to fix their problem? >> you're right. carl, it is funny, i think about the new york stock exchange, you know, all of us would go to work there, i stop for my coffee, he would stop for his, i get my smoothie, all the different businesses in business districts around this country where the workers would go, use the restaurants, and the outdoor ve vendors and all those things and all those people are out of work

now. there is nothing going on. >> you hear the tom cruise audio of him yelling at the mission impossible crew because they were not socially distancing the anger in that audio clip is all about the workers in the film industry, david, who have not been able to get back to work because of this global tragedy we're living through >> yeah. >> do you let people in your apartment, david >> no. not really with the windows open and the masks on and the -- >> carl, i don't know. we're in a situation where they're not wearing masks when they're making a movie, that's under biden, i think you can -- people will be fined, spain, 800 euros, went outside. 800 euros, that's a big -- euros are expensive. >> yeah. >> but and getting more expensive. we dent evon't even talk about . >> so much to get to this morning. it is fed day. we got some m&a in cannabis,

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massachusetts regulators

will file a complaint against robinhood as early as today. >> talking about the fact that they think it -- it encourages gameification. i think you can put all the disclosures in the world if you want to satisfy massachusetts, but the fact is people want to trade, and they want to trade in a way they think they have every right to the state of massachusetts, i think, is out of bounds versus the s.e.c. i think it is terrific that a state may consider regulating, but, this is a federal problem and if it is a federal problem, and the s.e.c. thinks there is something wrong, they should say it david, when i go to their site, what i see is a level of ease of which people can trade that maybe that's what regulators don't want the suitability is the same. i don't really regard the suitability as that different. >> right, well, the ease is only

going to continue to get even easier or increase and the functionality in all those different things the gameification is probably the right word you have younger people, college students and the like who are -- who you can do trades in between classes, you can do trades whenever you want, many of them are at home at this point as well, but there is an ease of use here, it is not like the old days or even the recent days where you had to be sort of in front of a laptop in some fashion and login to your e-trade account or schwab or ameritrade this is quick and easy >> i killed it during third year at law school. harvard because i got the green light from the professoprofesso said that he believed that chevron would be able to take over gulf and i just got a ton of options during the intermission of the class and

got approval i crushed it. >> you crushed it. that was the beginning for you >> that's why i say why can't these people have the ability to crush it >> they can. you knew what an option was and knew antitrust law and knew actually -- >> that's one thing i attended and studied. >> again, i don't know. >> mr. cramer, do you -- mr. cramer, do you actually have a question >> how is the reddit board >> they use the clip of you on reddit and -- >> of me >> talking to me there is one, yolo bowl. you only live once this guy likes me. he superimposed my head on someone who looks like arnold schwarzenegger for all i know. this is the person of the year i thought would be you >> yeah. >> but it is a mad, mad world and that's what they do. they're calling it mad cash in today's elite lead story all i know is that it is -- it is a federal issue, isn't it maybe 50 states, like we have

with the vaccine vaccine, 50 states, massachusetts, wow whatever happened to federal government who the heck knows >> man, two days of reddit references in the b block in a row. >> david brought it up david wanted to bring up barstool, but i prevented it from happening >> we'll take a break. a lot more to get to on this wednesday. don't go anywhere. this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. we made usaa insurance for veterans like martin.

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all right, it is time for a mad dash not that much corporate news this morning, jim, but a lot of research that we're keeping track of unless corporate news, tilray and afria, your buddy, irvin

simon, comes out on top. he always finds a way. >> he sure does. >> we'll get to that let's hit the airline call we mentioned at the top of the show. >> i hate it when people rain on the parade, okay but jpmorgan has chosen to do that double downgrade, jetblue, unite airlines spirit this is an amazing piece they're saying they joined southwest air, which has comments today, and american airlines is saying -- stretched balance sheets what is the point of being negative when everyone is so -- hey, how about the opening of america? they're saying, please do not own these, these stocks have become very stretched. >> american remains by far the name they receive the most inquiry on in the form of how can you possibly explain this valuation? it is 8.3 times enterprise value over ebitda. and towers above all others by two turns in terms of the multiple there. >> the stock did -- they did a

gigantic equity offering and a lot of younger investors who were just singled out, i don't want to call them robinhood types anymore, that's too negative how about exuberant people >> okay. >> felt that the equity offering was a good thing, because it made it so american can live to play again you and i thought it was dilutive. >> because it was. >> yeah, but, david, you and i are sourpusses it is 1998 where you taking qualcomm to >> 1200. >> who is that -- >> was it -- >> yeah, pizek he's a great analyst really good work. >> thousand dollar price target for everything other than chipotle. >> commerce won. commerce won. >> 2700 in chipotle. >> i meant to check my files, my old internet files i got filing cabinets all over the place. i was going to pull them out. >> spac me spank me or spac me? >> we'll take a break and be

right back with an opening bell.

jim mentioned retail earlier this morning keep your eye on etsy today. stifel cuts to hold, saying shah shares have surpassed the $170 target >> yeah. don't know, carl all i can tell you is they're saying hard compares we're starting to see this whole thing about the hard compares. companies that did very well when the pandemic started, they're going to not do as well next year. i don't buy it one bit etsy is another company that i think has changed the face of the country. and as long as there is interesting product in etsy, it is going to remain an upstock. it is too early to abandon etsy. too early. i thought the timing on the call was mistaken as i do the oil calls. >> yeah. >> you mentioned the oils. yesterday was the upgrade of ox oxy at wells people are trying to dive into the underperformers. >> this whole idea of circling back the underperformers, it

leaves me cold there is -- in the exxon upgrade, it does say it is a cyclical call, not a secular call let's not forget, there is esg, david. >> we'll talk more about exxon on the other side of the bell. >> you have something? >> i've been focused on it for months now what they have been doing. but, carl, let me send it back over to you for the opening bell. >> yeah. no, i can't wait to hear more. wti, highest since march 4th today. here is the opening bell at the nyse, celebrating an ipo, america's technology acquisition corp at the nasdaq, e-commerce platform wish. also celebrating an ipo and we'll talk to the ceo, jim in the next hour. >> look, you know what can i say, ipos, the spacs, i mean, the spacs are amazing. i got a spac i brought, rare earth materials spac, done very well, it has been terrific

i don't understand how you can have as many spacs as we do, seems completely unregulated talk about regulation with robinhood, the regulation that we have about spacs is so i'd say haphazard. >> you think so? listen, they -- >> what? >> they register they sell their shares there is a process and they go out and find the company that they're going to actually allow to come public through the spac they call it a merger so it does end up as well in league tables as a merger. these are opportunities for -- these are an alternative way to take companies public. and they do that and it is luall delineated in filings. it is not clear there is anything lacking regulatory wise. >> i think that the plethora of them and the lack of knowledge about what they're going to do makes it so people are diving into something that i think they know nothing about

and massachusetts can go after robinhood for not -- for robinhood not letting people know enough? come on. i think a blank check doesn't let people know enough that's what i want to -- >> the blank check park, making a bet, typically they don't trade up a great deal, even with well known sponsors. they don't trade up that much. they are usually sold to ten, ackman sold his at 20. they hang in there until they announce their deal and then they try to come on here and tell us all about why it is great. and then they try to attract people your point, i guess, is not necessarily as much maybe, you can be attracted to who sponsors the spac and say, this person has a strong track record or expertise in a particular area, i think they're going to be able to find the right deal or develop the right relationships or based on the relationships they already have. and add a lot of value, so your issue, though, is what, where once they announce the deal, people still don't understand what they're doing >> a lot of times they merge

with companies and it is a reverse merger or it is a company that we really can't figure out what it is actually doing with the money and sometimes companies become public that would have gotten much more scrutiny here is a good one this is what i want. i want something like utz. you know utz, right? >> yeah. >> that is a company that came public via one of these ways and it has been a fantastic stock. and everybody knows what utz is. but a lot of these are somebody's name. i get called in the lightning round. oh, there is john ledecky. i went to school with him. i don't know anybody can have a spac. >> anybody can and in fact i think you'll find that citi and csb, any of them, cs, they'll underwrite it if you can sell it. 250 million, 300 million bucks a lot of it is focused on the deal you announced and the pipe investors you bring in as well

the private investment, public equity investors that come along when they announce the deal, you've seen, usually typically perhaps as large as the spac if not even larger in some cases, also smaller, but a sizable amount of money that comes in of investors who are saying, hey, we also believe we are endorsing this deal. and that becomes important too i'm not saying by any means this isn't going to end badly, it very well may. $63 billion or more out there right now that is available for companies to come public essentially. and we'll see. it is why we're covering it closely. and there is a broad array of companies, whether it is private equity portfolio companies coming, that -- private equity is using as a way to get them public, been around for a long time, companies in their early stages of development, that wouldn't otherwise come public companies that merged with another company that are sort of f funky that come public through the spac as opposed to going the traditional ipo route, they may

get more scrutiny. there are also some good ones. >> agree >> yeah. >> we should go to carl. >> okay. >> yeah. well, no, i mean, i was thinking, aria berkoff of lion tree says celebrities could be next anyone with a future cash flow to discount, that's a story perhaps for a future day we are keeping our eyes peeled for any details on a fiscal relief package for that, we go to ylan mui. >> a source now tells me that congress is getting close to a deal on another covid relief package. the top line number would be roughly $900 billion, it would not include state and local aid or liability protections, two of the most controversial provisions in the negotiations so far but the source tells me it would include another round of stimulus checks. nbc news reporting that the checks would likely be in the range of about $600 per person so it sounds like there is real

progress being made, though, of course, nothing is final until the ink is dry, guys but there were talks that went on until late last night we were expecting more negotiations to happen throughout the day today and now it looks like they're getting close to a deal, $900 billion will be the top line number, no state and local aid, no liability protections, but it would include stimulus checks. guys >> we'll come back to you. i think often this morning jim, i wanted to ask you, bloomberg has a piece saying the fiscal apocalypse that was expected to blow a hole in state budgets has not come, at least not yet. and that has provided an opening for lawmakers to leave that part out. >> well, look, i just think as long as -- once the hospital is protected, i think the amount of money that the hospitals have had to spend, and, remember, some of the hospitals don't have -- david, they're going to be bankrupt. >> yeah. and there will be, i think there is funding for certain things

related to the money being spent by state and municipalities on covid, specifically. it is just notgoing to address the gaping budget deficits that many of these states are facing as a result of the slowdown and economic activity, which resulted in tax revenues being well below listen, in our region, it is the mta, which is facing just a gigantic budget deficit, $12 billion or more, which could result in a 40% cut in services which would be -- which would just crush the ability to -- for people to get around in the tristate area and therefore make things a lot more difficult. >> i think that there are certain stocks, carl, that are such big winners man, woman, child, gets 600 bucks. the money goes to the big box retailers, the money goes to fix up your house, your apartment, and the money goes for the gameification of stocks. i love that word, gameification.

i talk with people at jpmorgan and morgan stanley, there is a whole group of people buying stocks because they got money from the federal government and they don't need it why don't they target the people who need it? i don't know. >> you're not counting on any of that direct payment going to help the very small businesses we were just talking about >> look, i think that business interruption insurance is what is really needed look, we have a storm coming you can't have restaurants outside, i don't want to be too new york centric the idea is that we want business -- we want businesses to stay alive so they can keep hiring the $600 to rich people or to people who are -- have means, i hope that they don't get that. so we save it for other people who need it worse. for people who are hungry. david, there are people who are not getting food in our country. because of something that had nothing to do with their work ethic. nothing. >> absolutely true food lines are long and

horrific you're right listen, you hope the money will get to the people who need it most it is potentially a good thing, we heard warren buffett yesterday, david solomon saying, come on, got to getmoving on this and the idea that congress is, without state and local, mitch mcconnell, jim, more or less has gotten everything he was looking for from the very beginning, right >> i think so. and he congratulated -- >> it came to him. >> a major acknowledgement, he could be in the fire of twitter, which was upgraded today the twitter upgrade, i think, in subtext of that, the president, maybe he is going to stay on twitter and have a universe of tweets we all have to follow david, probably have to wake up in the morning and see what he says. >> not me. no >> what are you going to do? >> nothing why bother after january 20th >> he doesn't exist after january 20th >> not in terms of his ability to affect policy, right?

the reason we follow him is what is he going to say about china trade, about jerome powell when he's no longer president, why? why do you care, jim >> because he may be running for president starting january 21st, carl. >> so? >> it is a campaign that could go on and i think he could still shoot down stocks. >> we're not going to be sharing his tweets any longer on the air because they won't be news >> all right, david. >> right i mean, carl, am i wrong when you're the president, you got to follow everything he says and does because it has an impact and we have done that but it is not clear to me that would be the case after. >> well, yeah, unless we start also airing tweets from bob dole and al gore and bill clinton and others who either ran for president or tried and lost, it is going to be a key element of twitter's engagement, that's for sure, as jpmorgan to jim's point goes to overweight

65 target. jim, we now have the -- we will have the biggest cannabis company as a tilray and apha merge into this deal, equity value of almost $4 billion we just talked to boris jordan yesterday of curialeaf, they're surpassed in terms of i think size, overall size. >> this market, tilray, 22 million shares, look, the younger people, not the institutions, love these stocks. irwin simon, over and over again, he's profitable, he talks about that i want people to be careful of these. canopy has a lot of money. be careful, because you need federal legislation to make this thing work and so far i don't see mitch mcconnell endorsing it in the senate, the house they have got, but, david, remember, right now, can't take credit cards, has to be cash, there is a lot of restrictions on it to make sure it is not like gambling, which

is almost every state. >> they want the federal to your point, even though state by state, they certainly are even states that, you know, boris referred to it yesterday, green wave, you saw, the states legalizing. >> every state it is on the ballot approves it. >> until it becomes federal to your point especially in terms of things like payment it is yet to sort of see its real growth phase that they're hoping for >> no. >> but canopy has -- >> talking about speculation, it is not as though it hasn't existed in our market prior to this current period. tilray, 150 bucks at one point >> unfortunate run up there because what happened is it was a big insurance squeeze. >> we should point out irwin simon ran hanes celestial and aphria will own 62% of the combined company even though tilray is the stock being used as the currency here their shareholders own 60% he's going to run it he's going to be ceo of this.

>> i had mark shiller on recently, who is the ceo of hanes celestial, the company that irwin did run, very capably, and look at that, there is a 52-week high, up 3.5% so i think irwin -- oh, irwin is on at 4:00, david. i think irwin is a consumer package goods guy, and can really do a pretty good job. canopy, i urge people to look at that one if you want to do cannabis, canopy is going to have with the equivalent of taste great, no filling, not less filling, no filling. tell me, david, if you don't want to get a legal buzz, don't drive, but a legal buzz from a thc drink from canopy that tastes good? >> sure. i'll give that a shot. >> i'll bring you a six-pack over. >> i think it is important how small the companies re the pro forma on this thing, u.s. revenue, total revenue, 865

million u.s. dollars that's pro forma last 12 months reported by each company if they were together. these are tiny companies >> no chewy. >> no. >> no fastly. >> no. >> no exxonmobil. >> used to be a big company. carl, to you. >> yeah, guys. we got those retail sales numbers down 1.1 from rick santelli at 7:30 flash pmi is on the way. good morning, rick. >> good morning, carl. we'll get to the flash pmis. if you are look for retail sales to be powering equities higher, you look in the wrong place because they were weak minus 1.1 on headline and everything there after was negative except autos and gas. the market is still firm look at intraday of 10s. not only did it pop about five minutes ago and eased back a bit, but look at two-day, we gained a lot of basis points leading in today's fed day, of course, the decision shouldn't be a surprise to anybody

because most likely we're not going to see any significant changes. but, all depends on what you think significant is at some point a taper must be in order as vaccines start to get distributed. and if you continue to look at the charts, the next chart that is super important you want to pay attention to is what is going on in bunds. bund yields have moved quite a bit in the last two days that's why we don't use percentages. their yields are up 14%. here are the pmis now from market look at the manufacturing pmi, 56.5, that is a bit of a giveback versus last look, which was 56.7 but only a small one 55.3 on services that's subsequentially follows 58.4 and that's definitely a bit weaker than expected and finally, let's look at the x composite, 55.7 following 58.6 back to the charts, shall we foreign exchange is having a lot of movements and thebiggest

common denominator, weak dollar. look at the chinese yuan, the dollar is weak here, let's look at the euro, let's look at the pound. both these are going back to the spring of 2018 the pound, to may, the euro to april, and the dollar index itself closing at the weakest levels yesterday since april we'll call it, 31 plus month low. carl, jim, david, back to you. >> all right, rick, thanks so much rick santelli. we got a brief record high on the nasdaq and the russell. markets essentially in irons now. not much movement as we weight for more clarity on a potential fiscal relief bill and the fed presser this afternoon. don't go away. congratulations! welcome to the aflac program. aflac! now tell me, what does aflac do?

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

earlier in the program but, jim, worth coming back to this as a story because it is such an important one, involving this company solar winds that we talked about as well that manages a lot of these

networks, these network management tools that solar winds has. you can watch the stock price as well and a lot of companies, governments use it and it got hacked. most likely by the russians, although we don't know with 100% certainty, of we don't know with 100% certainty of course they deny it but that doesn't mean anything. it's pernicious or malicious because it's the software patches they send out to update things that were actually hacked for particularly the orion product, the bulk of the recrept revenues and it's kind of frightening when you talk about the product that was compromised and the companies and the government agencies that use this and then you have people who are going to question software updates which typically are used to guard against this very kind of intrusion so this is something that is worthy of our focus i think because it could just simply be the first shots

in what could be an escalating attack or response, as well, you wonder from the u.s. government which has incredible capabilities but typically doesn't use them or advertise using them. >> i have octo on tonight. zero trust it is for identity and a reason i love it is todd mckinnon i think has a system that good luck russians. some people are brilliant. probably wrong everybody can be hacked but they go after the easiest ones, the car that has a door open. >> they do but fireeye which you followed, not that large of a company suffered because it was hit by them. they said the campaign is the work of a highly skilled actor and the operation -- this is their research published on sunday talking about how they gained access, got to orion and

then your point saying this is not amateur hour here. >> no. >> at all. >> no. they have a new verb they were trojan-ized. trojan-ized. that's a reference to an actual mythology, not to anything else. >> mythology i thought it was -- what do you mean trojan horse >> no. >> trojans >> church -- >> oh. oh oh man going there, huh >> just saying that trojan-ize is -- carl, we have a new -- there's a red team red team is the division in your company that's supposed to crack into the blue team and the red team wasn't able to hack it but the russians were and the only thing to see the russians do right is "queens gambit" where they're reasonable that's it. >> certainly the agencies, jim, taking it seriously.

u.s. officials coming home early from foreign trips to take care of it. reported emergency meetings from the security council over the weekend and definitely keeping a close eye on it. as for sectors, it is a mixed bag today again as we have things boiling fiscal stimulus and the fed meeting. we're back in a moment (harold) twelve hundred strings of lights. (betsy) quarter mile of tinsel. (harold) and real snow all the way from switzerland. (betsy) hmmhm... gonna be tough to top. well played. (vo) add some thrill to your wish list. at the season of audi sales event. get exceptional offers now.

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time for jim in stop trading. >> tomorrow i believe every analyst will say you have to buy stanley black & decker it's going to be an incredible 10%. the stock barely up versus this and ahead of the analyst okay they're not positive enough. this is an amazing story, an american company doing quite well so i'm thrilled. >> all right you have proven you are ahead of them, jim, time and again. >> whirlpool works, too.

tonight i have mp. rare earth materials i mentioned okta how important is hacking david calhoun, ceo, boeing because i'm a booking machine. >> going to ask him about the big equity offering? >> i think that's a joke. >> it's in print but you are right. >> just because it is in print -- all the news -- >> doesn't mean it's true. >> they love you on a particular site i won't mention. >> good. don't mention it. >> they spell my name wrong. it is not request a "k," people. it is with a "c. >> jim, see you later. welcome to "squawk on the street." i'm carl with david and morgan busy day the fed decision waiting on a potential fiscal relief package and business inventories let's get back to rick. >> business inventories posting another up .7% back to back.

last month revised to up .8% it is a solid read and some of the best reads going back to early 2019 for our december read on national association of home builders housing market index, let's aim east diana olick, how does the number look >> reporter: after three straight months of record highs, confidence dropped 4 points to 8 86 anything above 50 is considered positive last december 76 of the three components, current sales conditions dropped sales expectations of six months fell buyer traffic also down to 73. builders say they're concerned that buyers are experiencing sticker shock. robert dietz saying the issues that limited supply including land and material availability

and labor shortage continues to place pressure on construction costs and expressed concern that mortgage rates that set the 15th record low of the year last week could start to rise next week hurting affordability. regionally builder sentiment in the northeast up up in the midwest in the south up and in the west up 2 points to 96 and may be seeing the turn around in the market we have been talking about with the red hot home prices. >> yeah. fa fascinating numbers. thank you. speaks of the northeast, we are watching vaccine distri bigs as winter weather works into that part of the country meg? >> that is something that "operation warp speed" said it is planning for. and there is a briefing going on right now from "operation warp

speed" and got headlines who noted that shipments delivered to every site in the first wave of allocations for the pfizer and biontech vaccine and planned to send it to 636 u.s. locations and say they have done that. as for the moderna vaccine working through the fda this week and could be authorized as soon as friday he said 5.9 million doses allocated and will go out next week upon the fda's green light and there's talk about what comes next in terms of supply and this is playing out this week. in terms of moderna and pfizer together, the government purchased 300 million doses of the 2 vaccines 200 million from moderna 100 million from pfizer. just now they're saying they're trying to work on additional 100 million doses from pfizer and seems to be some tension between the government and pfizer which remember is part of "operation

warp speed" but didn't take the early funding and wasn't under the umbrella as moderna was, for example. secretary azar was on "the news" last night and shep asked him why the government hasn't used the defense production act to help pfizer perhaps get raw materials to speed up another 100 million doses for delivery here's what secretary azar said and what pfizer ceo told us earlier in the week. >> while we guaranteed purchase of $2 billion of vaccine and that is critical for their ability to develop that vaccine and put the capital investment in they're more secretive with us about the manufacturing capacities and needs so we can't know they have raw material problem until they tell us that. >> we are asking them right now a few things they haven't done it yet but we are asking them and i hope they'll do it very soon because

particularly in some components we are running at critical supply limitations but i think they will do it. >> so, guys, pfizer ceo told us that they have 100 million dose allocation for the third quarter to the u.s. but the government wants it in the second quarter and the sticking point is how can the u.s. government help if it can to speed the doses as pfizer, of course, has now made deals with other governments to provide the second quarter allocation guys >> meg, thank you. today's big ipo context logic parent wish raising over a billion dollars and it is set to open on the nasdaq with us now is wish's co-founder and ceo peter skuzulczewski i'm on your site now trying to learn about wish and what you are trying to accomplish here but to the financials of the company, you are growing very

quickly on the top line and is typical of many growth companies, also losing a lot of money, more than last year certainly. when do you see wish becoming a truly profitable enterprise? >> yeah. first of all, thank you for having me. look i think as long as we focus on the core value proposition, delivering value for the customers, creating a fun shopping experience on mobile, focused on value, think tiktok for shopping, and an easy way for manufacturers, vendors to reach a global consumer base and will become profitable in the future but i think the key is to drive as much volume as possible for both participants despite the unpredictable year for us and other e-commerce players. >> we'll be watching to see how the stock opens, particularly

given the strong performance last week of airbnb and doordash interesting to hear you say tiktok for shopping. others say you are more like a dollar store online. is that a fair comparison? >> look. i wouldn't say dollar store. order values are higher than that we focus on value, bang for the buck and as much value for the consumers as possible and we believe that this is underserved demographic and a growing area in terms of e-commerce and the more that we continue to focus on getting our consumers the most bang for their buck sort of the better that the value proposition resonates to them. >> congrats on going public today. this is morgan i'm curious. covid has turbo charged

e-commerce growth particularly here in the u.s. and looking at the numbers q3 revenue growth moderated somewhat why was that the case? how do you turn that around? >> morgan, that's a great question i think the important thing to remember is, of course, there is a lot of sort of positive momentum based on consumer shift in demand and retail, stimulus which helps all of e-commerce. a challenge we face is we have a sort of global merchant basis and a global customer basis and typically prior to covid in terms of logistics partnerships, the way to transport goods is underbelly of passenger aircraft and as that's limited we have to give the logistics carriers and ourselves time to adjust so in a way that mod rated the growth but we feel very good about where we are now. >> yeah. that's a key point you make and something we report on with the shipping constraints out there

because not only do you have major carriers transporting vaccines but you have limits fedex, u.p.s., a competitor, amazon on how many goods shipped and moved throughout the networks this holiday peak shipping season. how great are those constraints? how much do you expect them to carry over into the new year >> we feel very good about where we are now we feel that our logistics partners, the carriers especially doing the line haul, have made the necessary adjustments and a lot of passenger aircraft have become defacto cargo aircraft and things are looking quite stable and looking forward to continuing to grow. >> you know, peter, you source most of the goods from chien and always a concern about increased tar i tariffs and there's concerns of

poesal rate there is and an increase cost for the company as a result of that how significant is that in terms of up ending the business model? >> yeah. so this is something we have been paying to and we have a solution this is why our core focus of last two and a half, three years is particularly establishing a logistics network. we have turned that into an advantage. we think we can do cross border shipping and especially from china especially the iphone 12 is still assembled in china. two places like europe, north america and elsewhere and now we have a competitive edge on the cost side and the cost structure of the product and the inventory but also on the way that we can deliver it focusing on getting our customer the value proposition they're looking for which is probably not as veentd or timely as other platforms but

they save a lot of money and in fact covid accelerating that we feel we have a big competitive advantage a ten cost of fulfillment. >> love to understand the competitive advantage versus for example alibaba. and it was constructed in part to allow chinese businesses to manufacture cheaper goods for customers around the world that's a big company to compete with. >> i think that's a great point. i think our focus has always been markets like europe where nearly half of our customers come from. places like the united states where head quartered in san francisco, that's the first consumers came from. i think, look, they've done a tremendous job focusing on their own domestic market. we are pretty much a global company with consumers and vendors around the globe.

>> peter, we wish you the best. >> oh boy. >> i know. i had to do it certainly watching closely for when that stock opens. thank you for being with us thi morning. >> thank you. coming up, phillip morris international announcing a change in the c-suite, incoming ceo jacek olczak joins us on the other side of this break mixed picture with the dow slightly lower we'll be back. they know exactly which parking lots have the strongest signal. i just don't have the bandwidth for more business. seriously, i don't have the bandwidth. glitchy video calls with regional offices? yeah, that's my thing. with at&t business, you do the things you love. our people and network will help do the things you don't. let's take care of business. at&t.

phillip morris international getting fda approval of the new icos 3 as the company heads into the new year having chosing the future leader taking over in may and joins us in a cnbc exclusive. congratulations on the gig. >> good morning. thank you so much. >> is there any reason to think that the succession means any changes to the company's overall view that we're eventually headed into a smokeless world? >> no, not at all. i think the vision of the company we want to leave smoking well behind us smokers, society stays there i have been working since the beginning of this transformation hand in hand and share the same visions, developed the

strategies and very glad that he'll retain the family as executive chairman as of may, support of the board is very important and we just go as always full steam into as i said the area of leaving the smoking behind us. solve the problem of smoking once and for ever and for good. >> i wonder how you see policy incentives moving that along axel rating the change in consumer behavior and what the latest fda aprooufrl means. >> fda approval for iqos, both the modified risk product authorizations and a pmta, a technical term a version of iqos is important the science evidence which we have provided behind the device, behind the system is meeting the fda standards. this is the highest standards which you can see any on any international markets. we are very proud, you know, the

steps we have taken for so many years to bring the regulators, authorizing the cost from the perspective of promoting the public health. i think it's for us -- i mean, it is very encouraging to make the progress and adjusting the regulations in a different market, a different level. consumer smokers will have to have an access to information about the product so there is ofly space when the egg lay or thes can create the space and there's access to information and need access to the product and as many governments and many countries recognize there's also the question from an economic accessibility of the product we took quite a lot of effort in the systems to solve for affordable prices but the product to manage addictions is enjoying the lower taxation than

the regular cigarettes which i think makes perfect sense because the better product should enjoy the lower target than the product which is more harmful like cigarettes. >> yeah. i -- you know, i get this long-term vision and the idea of a smokeless future and the iqos are healthier than a traditional cigarette but looking at the impacts of covid this year it's more broadly the sin trade, an increase in alcohol sales on the home front since the restaurants were closed or traditional get sales going up i wonder what the impact has been of covid on people's habits and why you think traditional cigarettes i guess have seen more of an increase this year in demand versus the newer products. >> i guess you're referring more to the u.s. domestic data when i have heard that there's an increase in regrettable of the

combustible sales. on international the situation is much more variable and smoking has the associated or connected with the moments you have during a day and as we know this crisis and the one hand has aspect and very much the crisis have put upside the daily routines people working from house, not commuting the same way iq 0s sales continues at the same levels as buffalo tefore t. it will catch up as we speak now. on a combustible sales it is driven by the local geography. i think that one thing which i would like to say and it is obviously of the conversations of transaction of coffee and smoking and best advice to everyone is to quit smoking

altogether this is the best advice to give as an executive of a tobacco company. >> right you have been -- the company's been consistent saying they're not interested of diving into cannabis how long can that last given the growth of the industry, at least in some parts of the world or maybe even with that growth not material to the overall revenue base. >> look. we have a monumental task in front of us. how to unsmoke the world let's finish that chapter in this company that we can as i said earlier leave the smoking behind us. there are a billion people on the international basis and worldwide basis smoking the product. they should have access to a better alternative or quit but if they don't quit they should switch to this product the focus one but very important

objective which we have in front of us. >> we have loved having andre on over the years, been a fantastic guest and we look forward to more conversations with you. congratulations. >> thank you so much happy holidays. it is now time for the etf spotlight. today we are looking at a small cap, procure space etf news in the broader spectrum, new providence acquisition corporation going public on the nasdaq given 1.8 billion valuation. ast space mobile is building a space based network to allow devices to connect with the planned satellite constellation and partnering to launch service in 2023. yes, this will be a competitor

to starlink and expected to close next quarter "squawk on the street" will be right back ♪ ♪ ♪

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welcome back, everybody. i'm sue herera a major winter storm hitting the northeast today could disrupt the ongoing distribution of the vaccine. hhs secretary azar tells fox the people are monitoring the situation and expressing

confidence in fedex and u.p.s. saying they know how to deal with snow and bad weather. as the vaccines go out, the case counts go up texas just became the second state after california to reach 1.5 million confirmed covid infections. same time cases in children hitting record highs nearly 180,000 new pediatric cases were reported last week. and just within the last half hour word that secretary of state pompeo is in quarantine and being closely monitored after i rememberly testing negative following contact with someone that tested positive that person is not being publicly identified. pompeo is criticized for hosting several large state department holiday parties. you are to date. see you in an hour back to you. >> all right thank you. the fda yesterday did give

emergency use authorization to the over the counter at home covid test, delivers results in 15 minutes, costs less than $30. today the ceo is joining us. congratulations in so many ways. this is what we have been waiting for. before we talk about supply maybe just tell us how it works. >> yeah, sure. so the test is a kit which we buy from a pharmacy or perhaps to have delivered online everything that is required for the test is in the box i have one here. with the exception of your personal smartphone and download a free app on to your phone, walk through the steps how to use the test in the app. you take a swab of your -- not the full swap which some people are seeing online. it's a more of a nostril swab and then you putt that sample on to a digital analyzer which is

this bit here and inside of this digital analyzer is a bluetooth connected instrument talking to the phone and analysis happens in here and the result is reported to the phone. takes about 15 minutes simple to use. there is no doctor involved in the loop and coming through your phone. >> just to be clear, the nasal swab is not as invasive as the one we have been used to >> that's correct. it is not a full swab. i can twaem shactually show you. this is what it looks like it is designed to have used for children as well as adults this is an adapter to be shorter for children, a flexible tip on it which is a special tip from a

terrific u.s. company called purr tan and you take this child protector off and insert it int the cap touches the nose and swap it around three times. >> we have that done thankfully once a week. i wonder many people need to take the tests and the convenience of yours could be a real game changer for them for back to school, for example, or taking a vacation and go somewhere that requires a test is it going to be accepted is there a certification to come with it to show this is a pcr test i assume that will be accepted by the various jurisdictions. >> that's really yet to be determined we think so. the fda setses a very high bar and the challenges required to jump the bar for a home test is higher than to jump for a test

use by doctors so yes we think it will be embraced. we certainly had lots of fantastic feedback from consumers and businesses that are looking to do just the things you are talking about, sporting events to get going again, traveling, employers to look after the employees coming into the workplace, universities looking to bring students back to campus and get back to work while verk is getting vaccinated. >> how accurate is it? when will i be able to get one off the shelf of a local pharmacy will i be able to? i imagine there's a lot of demand for this product. >> yeah. so first part, 96% accuracy. pretty good. that's compared to a laboratory

molecular test and then part two is shipping in first part of january and rumping up through the months of january, february and march and anticipate in the second part of february or march to have that available in the major retailers across the u.s doing everything we can to get products available to americans as quickly as possible. >> 20 million tests you think developed in the u.s. through june is not a lot. i just wonder, where do you see the most, easiest distribution happen is this more of a cvs story, employers or something else? >> yeah. so we're pretty confident to exceed that 20 million numbers in the first half of next year there are multiple channels and kind of a product that we would really like to make it accessible for everyone to use and like to make sure that we focus on the places to have the

greater benefit and more announcements coming in due course with a major partnership to be announced. and, you know, we will endeavor to get it out to as many people as we can and further ramp the manufacturing through the quarter one of next year. >> right pedal to the metal on that front. congratulations. appreciate your time fascinating work thank you. >> thanks very much. meantime a surge in e-commerce causing shipping delays frank holland is live from u.p.s. world port in louisville, kentucky frank? >> reporter: hey there, morgan 6,000 packages per minute just like these sorted and sent back out for delivery here at the u.p.s. world port, the largest hub in the united states and u.p.s. and the other carriers, they need that kind of speed add e mers surges this holiday season

in november the volume spiked 27% higher year of year. u.p.s. handling the most packages, 450 million. and of course all the carriers, fedex and u.p.s., are handling vaccines along with christmas presents and they put surcharges on high volume and how much they can ship and there's about maximizing revenues and trying to ensure on time delivery. >> we had to work with our customers and really collaborated on the plans by day, by origin and what we could pull into the network. and there's a higher value when you run a system that is fully yu utilized but not overutilize that network or the service levels will decrease and then everyone is disappointed. >> reporter: u.p.s. ceo said in previous quarters the company wouldn't take all the volume

they could u.p.s. and fedex topped 95% for the week of thanksgiving and cyber monday over 95% is considered good by ship matrix. reported delivery for ground delivery is yesterday but they said it applies to new york to l.a. they have deadline tools to calculate city to city and there's the question, will vaccines somehow get in the way of delivery of christmas presents both fedex and u.p.s. said the vaccines have priority and gps tags to ensure they're delivered first. back over to you. >> frank, thank you. frank holland doing all things logistics related. this morning we are watching shares of dish down, have been down over 8% following the news the company plans to offer a $2 billion offering of convertible notes. proceeds being planned for the 5g network buildout costs,

bidding for the c-band offering of course important and raises the once again that question, well, is the man that runs this company going to find a partner to help him with the rollout or continue to just raise capital at relatively low cost in the markets certainly has some technical selling pressure as well as people perhaps get ready in the convertible markets for this offering but dish getting hit today we are back in aine. mut

the fear of missing out trade that's driven markets to records but that could be petering out the explanation on trading nation.cnbc.com. more "squawk on the street" coming up. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50

instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow. news early, speculation on continuing the biden transition, this monoing "the hollywood reporter" citing sources saying

disney chairman is at the top of the president-elect's wish list for an ambassador role as is dreamworks and quibby founder jeffrey katzenberg iger has another contract to stay on at the company but not completely clear to fulfill that and talk about the idea that perhaps to step down prior to the end of the contract as executive chair. if you saw the opportunity, carl, perhaps to step into a role like ambassador to the uk you might want to take it if you were mr. iger. speculation and relying on the sources of "the hollywood reporter" relying on for this story. >> yep but he said serving my country in some fashion is certainly something i would consider seriously, david.

we'll watch that one meantime it would not be december without bob pisani sitting down with art cashin for the annual outlook for the coming year. >> i couldn't be at bobby van's this year but every december for 13 years we gathered with art and with his friends to get art's take on the year ahead and not able to do that but he was undeterred bobby vans sent him a bar stool to sit on and we caught up with him via zoom from his home in new jersey i asked him first about what happens to the markets in the first year of a new president. >> the first year, certainly and sometimes the first two years, of a presidential term, is the weakest of the four-year cycle then by the time you get to the end of the second year obviously what the president is thinking of is re-election so we'll

assume that this year things will be hopeful but may not be quite as robust as some of the things that we have seen in the past and, bob, what's a real puzzle for traders is, yes, we know who the president is but not sure if the republicans will have control of the senate or will it transfer to the democrats. that's very important and that's all about the runoff for the two senatorial seats in georgia and that comes in the very beginning of january. >> we also talked abouten inflation next year. art noted that we haven't seen any dramatic signs of inflation but i asked him if it's fair to say that the stock market has been inflated because of the fed's actions. >> i think that's fair and as we have seen in things like the ipo markets that if you have cash

and looking for a rate of return you're not going to get it holding it in cash, not going to get it in debt instruments there's no yield anywhere. so it's almost the old tina. there is no alternative. you have to own stocks because that's where the action appears to be and seen people rush into ipos and have some double on the first day. there is clear speculation and i think inflationary pressure in the stock market. >> so art is happy with the markets at new highs but he is concerned about the very rich valuations with the s&p 500 trading at roughly 22 times 2021 earnings. >> i do think that the valuations are somewhat rich if you look at the estimates even of the earnings people are assuming there is going to be a burst to the upside in the

economy. and i think it may be a touch more gradual than many assume. i know people desperately want to get out from this sheltering in place people have cabin fever all over so there is that urgency but i think it's being overstated and i think the markets if anything on the multiples are a bit rich going into the first year of the presidential cycle. >> i asked art about the rise of robin hood and the retail trader art said it's wonderful to see more people participate in the markets but worries that too much day trading causes many to get turned off when the markets correct. >> i want to see new people in what disturbs me is that they have a different way of thinking the millennials, the robin hoods types, say with some decent

logic, hey, if the vaccine comes out in six months, in nine months, people will be going on cruise lines again i think that's why with these spectacular moves in the recent ipos we have seen some quick reversals and i think it is this new breed of investor who have not had the experience and sometimes the painful experiences some of us have had that lead us to trade in a slightly more cautious way all i say is, welcome aboard but just be careful of the volatility you're creating. >> it's always good to catch up with art you can read the full interview on trader talk.cnbc.com and watch. it wasn't quite the same as sitting on a bar stool with art at bobby vans but bobby vans really did send him a bar stool

but he was sitting on the favorite bar stool at bobby vans always good to talk to art. >> thank you for that. what a year 2020 has been. after a quick break, a billionaire making a big bet on miami real estate as companies and e chthri flock to the sunshine state we' back in two. at fidelity, you get personalized wealth planning

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welcome back to "squawk on the street." miami is there's a shift from latin america to domestic markets as an influx of residents and businesses move to florida our next guest is banking on it. joining us is the chairman and ceo and i believe this is your first broadcast interview, so welcome to cnbc. so texas has been in the news quite a bit with a number of high profile tech entrepreneurs making the move there from california but in general this migration trend to low tax, no income tax states like texas or florida has been afoot for quite some time we've seen goldman, blackstone, start moving operations, in

addition to high profile folks from places like new york. in general in south florida, what are you seeing in terms of folks coming there and what does that mean in terms of how you can capitalize upon it >> miami and south florida is a global gateway for businesses, investment, travel and tourism, and residential living also, miami is a business capital of central america it used to be a second home market and now it's a primary home market. i've been speaking about miami for past five years and currently miami is booming right now and it is experiencing unprecedented growth. >> yeah, and certainly we can talk about it from a residential side, but i think also

fascinatingly is what that means from a commercial side and office space side. what are you seeing in terms of businesses looking to build out their footprints, especially given the fact that so much of the conversation this year has been that covid is going to cut back on demand for that type of real estate? >> we're building office building next to city center and we have -- we're talking to many international companies and we have a big demand for commercial office space >> it's david faber. you know, obviously benefiting a great deal from your exposure in florida, i wonder, you are also opening a residence in new york city in the old crown building at 57th street and 5th avenue. is that not going to be a success in part because of some of the trends that morgan just described? >> new york has always been --

it's always going to be new york, it's always come back. and we're building product which not exists in the market you have the best address, 57th and 5th avenue, you have a unique building, crown building, built 1921, and we have the branded residence and people are talking about luxury, but many other buildings have apartments and more we only have 22 apartments we have amazing facilities and a great spa, which is 22,000 square feet, italian, japanese, french restaurants this product, it's very unique and does not exist in the market we already pre-sold more than 50%. so we feel good in new york

because we don't have -- we don't have any type of building which is going to be built in the future >> and you did just mention aman in general, given the fact that you do have these properties across the globe, what are you seeing in terms of hospitality trends, especially in the midst of this pandemic right now >> aman design, we are lucky because it was designed with social distancing, not because of the situation right now, but because of the dna so when the situation happened, if i give you the number, in 2020 all aman resorts in america and caribbean are running with a better number than 2019. this was a surprise to us, but this is a fact and people traveling sometimes,

like eight hours by car to come and when the caribbean opened, they were fully booked so the resorts, which are close to america and in america they're doing very well. we are also doing quite well in japan and mainly in other regions, because we design with social distancing, all our rooms are pavilion villas and separated. if you want to stay long, we can provide service to you. >> so quickly, since we're at the end of the show here, with the fed meeting today, with the focus on what will happen to these ultra low rates going into 2021 and fears, at least among wall street, about the potential

for inflation to make a return, what is your expectation or your outlook for rates? >> yeah, i personally think the rates stay low >> okay, great thank you for joining us today >> thank you, thank you. markets in a tight range on this wednesday the high for the session was dow plus 19, the low minus 68. and we're currently down about 37 ck in a minute

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good wednesday morning welcome to "squawk alley." i am jon fortt with carl quintanilla and deirdre bosa >> facebook is throwing down the gauntlet over the privacy option they plan to give consumers that would directly limit the targeting of ads this is a change apple says it will be making in the name of privacy protections. facebook publishing a blog post saying it's speaking up on behalf of small businesses, saying we believe apple is

behaving anti-competitively by using the app store to benefit their bottom line, at the expense of app developers and small businesses we continue to explore ways to address this concern facebook argues that apple will discourage people from accepting advertising. they allege that this is part of apple's plan to push apps and businesses to models that apple can take a cut from, such as subscriptions and in-app payments, which facebook says apple's update changes mean more money for apple and less free stuff for people now, with the prompt to opt out of all ad targeting, facebook says it would mean a return to more of a tv-style broad reach advertising. the social network says that would make it impossible for small businesses to efficiently reach consumers using facebook ads. they warn that small businesses saw sales decline by 60% when they couldn'