at intraday highs. both the s&p 500 and the nasdaq. the nasdaq up eight out of the last ten sessions. all the talk about how tech was fading away, maybe not the case. the russell 2000 has really been on fire. itcontinues to climb i will see you guys tomorrow please join us back here right now, time for "squawk on the street." good morning, welcome to "squawk on the street. i'm david faber along with jim cramer carl has the morning off let's give you a look at futures as we get ready to start another trading day, with jim and i not in our usual spots, if you haven't noticed. our road map starts with the push for stimulus. talks continued late into the night. negotiators say a deal is near but if not approved quickly, the government could shut down as soon as tomorrow >> plus, the fda considers moderna's vaccine candidate this hour as the u.s. reaches new

highs for covid infections, hospitalizations and deaths. california alone yesterday shocking, 54,000 new cases and facebook is upping its war with apple over ad privacy claiming the privacy change is a threat to millions of small businesses and, of course, the big reason that we are not in our usual spots is the major winter storm that hit the east coast. late in the day yesterday and throughout the night new york city residents waking up to more snow than they had seen all of last winter. airlines have canceled hundreds of flights, and, jim, the pandemic did not keep you home once but the snowstorm, you decided to actually be smart and stay put for just one day >> well, if they plowed, it would be of assistance i felt that when you see those spinouts, and skids, that it just makes sense to try to do the show from home

i welcome you to my home, i welcome all viewers to my home the one thing i would say is that you -- you do have more fear of the pandemic when you're in any spot that is not what you're used to i'm used to being at that studio suddenly i'm home. my home is scary i'm supposed to be there, david. i'm supposed to be there but, you know, you brought up a bunch of negatives i think the biggest negative we have to talk about is these claims they're so high, that you have to believe that one jay powell knew when he spoke yesterday, and, two, maybe it lights a fire under the people in congress who are still jabbering. i mean, come on, how many people have to be laid off before they say, you know what, we better move on this >> i know. not to mention those numbers i think on people falling inpover yesterday or when is described as that. we're talking about millions of people we talk about it every morning the juxtaposition, of course, of the market, which is surging yet

again, jim, to higher and higher levels, the nasdaq, of course, has been an incredible performer this year. but the s&p aiming for another record high, you see at the bottom of the screen, you juxtapose that with the suffering going on in this country and a lot of people can say, i don't get it. i just don't get it. >> i had spoke to dave calhoun last night of boeing and it is interesting. this is not just the tale of with cities. you have people who have means who are going to get money from the government and have gotten money from the government and they are itching to travel and people are starting to think right now, david, when we get vaccinated, these people will travel the world, it is pent-up demand and we have other people who, for $600, it comes to them, they're looking and saying, okay, soup, maybe christmas -- maybe a christmas turkey, yes, david, i'm talking about bob cratchet so we got the cratchets, and

then we got the scrooges, the scrooges don't mean to be scrooge, but don't know what else to be >> i know. and it is hard not to -- yeah, right. that said, jim, if we do get the $900 billion, let's call it that, even though it won't include, of course, aid to state and local governments, and it does get out fairly soon, is that seen as a positive, again, for what we end up talking about a great deal for the economy, and for the stock market broadly speaking as well >> i think that it is going to be part one. i think that when president-elect biden gets in, it will be part two. i believe that what is happening is people are saying, wait, we're going to get the $900 billion, that's already in the market but as a second order, a second dollop that is targeted in the market, no i've got brian moynihan on tonight from bank of america and he's talking about targeted stimulus and how great it would

be this one is not targeted this is just, i believe, good. the next one could be great for the people who really need it. so if we do get the second one, david, we haven't gone up enough there is more room and that's how i'm approaching it. >> yeah. you know, listening, i was listening to new york governor cuomo yesterday talking about a $12 billion budget deficit for the state of new york and the need for money new and waiting until the spring, perhaps more dangerous thing to do. we talked about the mta in this regi region i use them because they're reflective overall it is not just this region, it is all over the country in terms of the potential need for state and local governments before they have to start making significant layoffs in things like police. which, you know, i think is a real concern still at this point for those municipal workforces >> but, david, you also have to balance the other side, lennar reported last night, they're

doing so well and those houses cost a lot of money. toll brothers, we go back and look, maybe we were wrong and misjudged toll brother housing is booming diana olick was talking about, listen, be careful of the number we saw this morning for the starts a lot of this is multifamily a lot of the wealthier people who would normally pressure our politicians really don't have anything to pressure them about. the constituencies that are most in need, i think, don't have as much say when it comes to government i believe, david, that also this move out of the city is not stopping, when you listen to what you're talking about in california, maybe another wave in new york, people, my thought, are going to stay are moving again. new houses, that's what lennar was showing last night moving to the country, i was talking to a realtor this week, david, they have people buying from brooklyn, they're not even looking at the houses. they just want the houses. you can say, that is a sign of

excess i say it is a sign of health they want to keep their health and until we get vaccinated, a lot of people are saying, you know what, it is worth moving. maybe the vaccinations don't even work. there is skepticism about vaccinations and inoculations that is so thick in this country, that you would think that it doesn't work that pfizer doesn't work and i am betting on pfizer, but many people don't seem to be >> yeah, we're going talk about that later as well with a couple of doctors and those who run hospitals because some of the numbers, even of the front line workers who perhaps are reluctant to get the vaccination is a bit surprising. and, again, that's anecdotal stuff, jim it is still moving along here. we are still every day getting more and more healthcare workers inoculated, which is a good thing and to your point, of course, we're talking 94, 95% efficacy and that should bring us to talk about moderna, which we're going to be getting very soon as well in terms of it being available

there is going to be another vaccine on the market, very soon, it would seem. >> i think it is a little chaotic, david tell me where to go. tell me what website i should go to should i go to cvs, because there is -- should i get in line for march because of my age. long-term care people, are they getting it, are teachers getting it, is it state by state as we're learning it to be. the chaos in washington, honestly, let's straighten this out. if i live in new jersey and new york, i'm going to arbitrage which one i can use. most people aren't lucky enough that i have it and i think they're waiting an trying to figure it out. you have all the vaccines. where do you get them? how about the regeneron. what did the feds give the regeneron to the states, the therapeutics after the front line people are done, david, we have no idea what is going to happen.

>> no. you made that point and it doesn't appear to be as orderly as we would like that said, we can give it a little bit of time here. let's deal with the front line workers first, certainly everybody in the healthcare profession, who is actually treating people, who are dealing with the effects of covid in the hospital environment or otherwise, and then we'll move on from there, jim but it is certainly good news that moderna is getting close. you do mention regeneron the monoclonal antibodies, emergency usage, lilly and regeneron, not getting used, aparentally. >> no, and these stay at home tests are too expensive. i really am shocked. i have dr. mena from the harvard school public health on tomorrow they have a paper strip test that costs almost nothing. the government can just buy a couple billion dollars, everybody gets it for six months but, no. it just -- a lot of the cynicism, i think, is correct. it is a big money game, david. it is a big money game, how this

thing is playing out and that's not unusual when you look at washington whoever -- there are companies that are going to kill it on this is that the goal, david? is it -- find the companies that are going to crush it in the bottom line? not the actual disease >> no. and it seems -- >> are you stunned or is that just the delay >> say again >> are you stunned or is that the bizarre delay that we're having because you're in australia and i'm in greenland >> yeah, exactly there is a bit of a delay today. i do want to thank my host, by the way, i'm going to call this studio sorkin. advantage by having a close proximity to my friend and colleague. and so that's where i am they film billions from here too. it is amazing what they can do at studio sorkin just kidding, but --

>> is it airbnb? >> he's charging me. i'm renting the space for two hours. you mentioned the vaccines, we want to get as well back to stimulus and the airlines. but listen to dr. fauci. he's somebody you certainly believe in, and have listened to he joined us on -- from cnbc healthy return summit and talking about the vaccine rollout. >> if you look at the cadence of the vaccinations in different priority groups, we hope that by the time we get to march, early april, we will have gotten through the group so that anybody who wants a vaccine can get a vaccine. and then as the supply increases over the months, you would hope that when you get into the second quarter of 2021, april, may, june, that by the time you get to the end of the second quarter, into the third quarter of the year, you will have as many people vaccinated as you need to get vaccinated i hope that that number is 75 to

80 plus percent of the population but it will probably take a few months to get the highest priority people vaccinated and then when you open that up, for anybody, i imagine that somewhere going to be around april, maybe a little bit sooner >> all right, so there is the man himself, jim, talking about exactly you were, though not addressing the specifics in terms of granularity of the rollout when it gets into the larger population. >> well, look, david, one time i was very little, i went to the high school. springfield high, montgomery county, the high school was gigant gigantic what was there for me? a little cup with a sugar cube and that was to cure polio and the way to cure polio, the president said i don't want any more polio in the country, solve this, just solve this. i want everyone vaccinated now, david, here we got mckesson

gets it and cvs and rite aid had a good number, maybe they'll get some, maybe not, maybe this ready clinic gets it, maybe it is not available what is this we got a disease that is killing really hundreds of thousands around the globe we got something that i think is so patchwork as to be frightening. i believe in dr. fauci what am i going to do? do i have a pc -- cvs is jammed, maybe i'll go to walgreen. this is crazy. go your high school, get whatever is the equivalent of a sugar cube, wipe this thing out. what happened? is it just the free market versus what eisenhower did the free market doesn't know what to do the free market is not set up to vaccinate people >> i don't have the answers for you, jim, but i can guarantee you will be discussing it in the weeks and months ahead back to stimulus and back to the market itself, airlines do appear to be a potential beneficiary of an extension of

aid as part of this package. that at least according to some reporting we're seeing out there. and we should keep an eye on them your thoughts about the extension of another $17 billion or so to help them pay their costs? >> well, i defer to phil lebeau, which would make me feel like that's seven minutes for these guys, particularly because you see the flights canceling and not a lot of people traveling. i spoke to calhoun from boeing yesterday, if he wants to put hope in something, not necessarily our airlines, he talked pretty positively about if biden does not antagonize and poke president xi in the eye, big orders from china. 737, 777, 777x and 787 i think china is not only solvent, but it is booming it is difficult to -- after all the years that the president trump was trying to make it so it is a level playing field, it is the chinese that are going to have to supply the orders for boeing, not the five airlines we

have up here >> what a wacky world, yeah. china's economy open and functioning at a level unfortunately that we have yet to see here. and, again, come back to those claims that you mentioned at the top of the hour. jim, we're going to take a quick break and get back to the markets and the news when we come back, facebook criticizing apple once again this time using full page newspaper ads. does anybody still read a newspaper? we'll tell you what the soccial network is saying in those ads and ian conner on the antitrust lawsuit against facebook wear going to take a quick commercial break we'll be right back. before we talk about tax-smart investing, what's new?

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facebook is stepping up its criticism of apple's ad tracking and privacy changes. it is running newspaper ads to do that. the social network saying it is standing up to apple for small businesses everywhere. claiming that apple's changes will be devastating to them and limit business's ability to run personalized ads and reach their customers effectively. apple striking back saying, it is a simple matter of standing up for our users this has gone to a new level of hostility in some way.

interesting facebook's choice here to sort of focus on small business and how they will be disadvantaged by this change which is just simply going to make it much easier for people to realize what they're giving up and opt out in a way that they weren't previously. you had actually to dig into your settings and do things you might not have in terms of disabling certain parts of the facebook app >> this is a classic debate. one thing that we know tim cook is adamant about, the ceo of apple, is the user and the user's satisfaction. that company is about customer satisfaction it is not about helping a business it is -- though businesses have benefited mightily, millions of people benefitted from writing apps, facebook has become a great defender of small business because small businesses do make a lot of money advertising, it has been a winning way to go on to instagram i don't know whether it is necessarily the right way to go on apple but apple has to defend the consumer so it is a clash

i can't say that either side is right or wrong i'm an apple user. as far as i'm concerned, all that i've ever seen are evidence of things that make my life easier they do not necessarily make it so that i can buy small business goods easier and i like that. i want ease of use and i want to know where things are coming from i have no problem with that. i think it is great that facebook is standing up for small biz. as an apple user, i think that cook standing up for the user and that is the real beneficiary. >> you know, i wonder, jim, it feels like, we talked through the years about challenges to facebook and so many different ways, remember the boycott from some of the large advertisers that was going on for some period of time, didn't seem to impact the business. the ftc is suing them, saying their business practices are anti-competitive, potentially wanting them to at some point to split the company up, years away if they ever get to a court,

we'll see what happens and now this in the face of it all, what happens to facebook stock, jim >> it is good stock. keeps moving up. and one of the reasons why it is moving up is that it has got great advertising and not just from small and medium, but also now for consumer packaging but let's face it, twitter, look at twitter moving up pintere pinterest, snap. this is where the advertising is going, so people are buying the stocks, a bunch of notes this morning about how advertisers will be up next year, facebook's participating in that. and i just think that in the end facebook knows that small, medium size business are, yes, to use larry kudlow's term, still the chief adviser, life blood of america and if you think that, then you know that they're taking the side, and, david, washington does not go against companies that embrace small and medium size business. that's holy grail, david you know that. >> i do. i do all right. sit tight there, jim

up next, you will have your mad dash >> for mad dash, want me to light a fire i'll light a fire. >> maybe i want you to -- i want you to stand up so i can make sure you're wearing pants. got mad dash coming up next. >> look at this. look at this, david, guess what, even at home it is -- i slept in this last night. i don't like to take off any outfit that is brione.

this morning, the snowy morning in the northeast part of the country, but we are regardless of the snow will have a higher open. the s&p looking up as much as 17 points, just to remind you it is

up 14.56% as we head into today's trading.

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all right, let's get to a mad dash as we count down to an opening bell two minutes away. roku signs an important deal with hbo max to carry it of course, really in some ways reiterating its power as a platform, something that john malone talked to me about a few weeks back >> i keep thinking about what malone said, just when he discovered discover for me, roku's really powerful and, david, they got -- i think that at&t, hbo max needed this wonder woman 1984 to be a roku it is amazing. what happened is that, you know, you're in a situation where there is no opponent to roku they are it. and i just absolutely love them. i think that they're great and i don't know i don't know how to do it without. i don't know how to live without roku i don't know about what you do >> i don't use those it is funny, i used the samsung

tvs and apps that are available, but -- >> you use rabbit ears do you use rabbit ears >> i do -- i do use the digital antenna, because, why -- get a couple of local stations and stream everything else but, jim, your point is a good one. you like the stock here, it is going to be up as we saw about 6% we are talking about a more than 41, $42 billion market value now for this company >> do you know how to program a vcr? i do think when you look at roku, it is -- i can argue not big enough, judging by what malone said. everyone has to bow down to them let me ask you a question, how is at&t's balance sheet? have you seen the -- there are people really starting to talk about how much it is going to cost to go to the next level of 5g and people aren't happy. people are thinking it may be too expensive. that includes morgan stanley,

david. >> we'll talk a bill bit that morgan stanley report, get the opening bell now, jim. they mentioned, of course, the cbend auction, we mentioned it yesterday, in light of dish's latest raise, which i'll get to also the opening bell, you can look at our heat map back at our headquarters where jim and i usually are every day. because of the snowstorm, we're both in different locations. we'll be back in the studio tomorrow, i would hope and expect jim, when carl is off, i typically do use the opportunity to ask you a question i asked you many years ago, you used to guest host on "squawk box" back in the day, we did referencing a lot lately, the late 90s and the like what is the key to the market today? do you have one? yes, i do. a company that was on "mad money" last night. and it is the key to the market because it was a spac, david it is called mp, mary peter,

materials. this little company, $5 billion, but, david, it has got rare earth materials that are needed for the motor, okay, not the battery, for the motor of ev and this is the kind of thing that is -- that is happening, david the spacs, you and i can criticize them, and in the meantime, people are making a killing. this does work we need it it is the old -- the mine is doing quite well it is emblematic of what is happening, which is that there is a spac a day. this one is a good one, there are others that are good ones, i like utz i talked about that one yesterday. we got ones here, barking dog, you know, bark box, bark box, i mean, i got the chewy, now the bark box 1.7 billion. bark box, you say, it is worth 3.9. it is like buying a house.

>> i'm going to pick my computer up here so i can look right at it i want to read some of the stuff at bark box. you spent a lot of time yesterday talking about jonathan ledecky, old friend from way back, we remember when he used to do the rollups in the '90s, owner of the islanders they move very fast, by the way. >> yes >> to do a deal. northern star is the name of the spac they got to $200 million pipe that is going along with it. and their valuing bark box at 1.6 billion. they're going to give it 450 million of gross cash proceeds we have dogs we want to be good to our dogs this is not just straight pet food this is all sorts of other things that dogs enjoy, jim. >> yeah, but chewy gives us a lot of things. marley managed to rip through every single toy we bought from chewy but then we bought more

toys how many of these do we need how many do we need? do we feed a lot of these? we have stores that have pet food, we have amazon that has pet food and different accouterments and chewy. now we need bark box bark box okay there we go. david, doesn't this feel like 2000 to you? a little remember there was a first monday and, like, a cgi and then incubators ledecky is an incubator. >> yes yeah, listen, there are -- there is a feeling, we had a discussion about spacs yesterday, it is worth discussing it again, a lot of people are still climbing the learning curve in terms of understanding fully the structure these pipes that go with them. and in this case, by the way, good investors fidelity is in there, a number of other well heeled investors are also providing capital to the company as it merges into the spac and therefore will become public so bark box will

be competing against the likes of chewy as you say. you can redeem, let's not forget, you get your shares typically at 10. don't like the deal, you can redeem, that's why some of the pipe money is there to back up that and if enough shareholders vote against the deal, it doesn't happen that rarely if ever actually occurs at this point but, jim, it is funny, because it is not as though on the ipo market things are just -- did you see this company wish yesterday? we had the ceo on. significant value, 12, $14 billion overall. they don't like this term, but it is sort of a dollar store online most of the stuff is sourced in china from small and medium sized businesses in china to come here to the u.s. and other places around the world. it didn't fare particularly well in its debut >> no, it proves there are stocks that the dogs won't eat, right? but new and improve wish on that thing and still won't matter david, wish shows you that when

you wish upon a piece of coal here, i do think that there are -- there are things people won't buy. right now, that was a bad piece of business, but you're starting to see, like, this -- the companies that have become public let's talk about chewy for a second chewy came on the show, on "mad money," the night they reported the quarter. i thought the quarter was great. the stock got slammed. people said this thing is no good at all. and then what happens? it then rallies and that's because there are still people who are bearish, david they're quick draw and they say, no, that wasn't good enough. but then you got the new types of investors they don't care about beat by a penny, missed by a penny, taking it -- target price up. they're not about that they're about people who have dogs, they use chewy they like chewy. they buy the stock at chewy, they make money. well, i mean, hey, you know. >> 52% a month that is making some real money we did see, by the way, shares of context logic, i did want to -- that's the parent company

of wish, the symbol of which is wish it did have a bad day yesterday, but rebounding a bit your point is a good one when we talk about ipo speculation, jim, that gets me to this chinese retailer, wunang up 400% on the second day after its ipo. you saw this yeah >> yeah. i thought the s.e.c. might give them a jingle, but, you know, the s.e.c. is not as involved as i would like to think or maybe a senator, you know? like 100 of them some of them must look at this thing. this is a travesty and there are people who are going to lose money, but we don't really care. i guess it is all caveat emfoemr this is not what itlooks like. and wunang technology, it reminds me of wayfor i called it wayfraud or something, and the government called me, wanted to know if i

was short it on my hedge fund and i wasn't, and they investigated by the time they completed the investigation, the company had gone out of business who knows what this thing is what are they the technology of? wayfraud >> it is only up 763% for the week maybe you're not being fair. by the way, that was a -- by the way, i say we, i mean, "squawk box" and the man who sits in this chair andrew sorkin talked to chairman clayton of the s.e.c. about ipos and this one particularly listen to what he had to say >> there are more retail investors participating in the market than ever before. and we're seeing that. and one thing that we don't regulate directly, andrew, is euphoria and we're seeing some euphoria here i heard other guests talk about euphoria you know, when stocks run away, like the ones you mentioned, we do get concerned because it is a

situation where professional investors understand this, i do worry that retail investors, you know, do not understand that trees don't grow to the sky. >> kind of sounds like some of the things you've been saying, jim. >> but, david, that's not -- this is not euphoria this is not euphoria this is broken something is broken. we want the s.e.c. to look into anything that is broken, we got to figure out that this wasn't euphoria, this was just something that is simply -- it is like going to a store, and seeing something marked up big and hoping you can buy it and return it for more money i don't think that this is euphoria yesterday, we had massachusetts regulators coming in, talking to robinhood, $65 million, but there was an investors that came out against april until 1980, literally saying there was too much euphoria. euphoria to me is not good at

all. an orderly market, where you have something that goes up, you know what, that may be a mistake the long-term. but this thing, david, i mean, it is just -- it is inconceivable that that's -- that that passes muster with the s.e.c. why not pick up the phone and call them and see what is wrong? that's wrong it is not euphoric it is just wrong >> sometimes they have a hard time catching up on -- we can, we can buyer beware, true, without a doubt, at the same time, buyer very happy if they bought on tuesday or wednesday extremely. so, you know it all a matter of if you get it and are able to sell it to the next guy. there are these trading platforms, we talk about robinhood all the time and others there are chinese trading platforms similar in nature that are well traveled, well

populated right new, jim also, i don't know if the s.e.c. has any, you know, insight into them >> no. look and maybe i'm asking for too much for regulator to make a call, and say, you know what, andrew, i looked into this one, this is not the kind of thing we want. it doesn't have anything to do with euphoria, much more to do with magic and more to do with alchemy. and we're against alchemy. people want to pay a lot for airbnb they argue that maybe airbnb is worth twice what it is selling for. real product but here is some chinese company we don't know what it is doing, we don't know what's up. how about protecting us? how about protecting us from a sham, a sham system of stocks. now, i don't know if wunong, it is not a sham, but the way the market is not justifiable. someone has to say, we don't want the next wunong to occur because people will get hurt eventually f you buy airbnb and

stay at airbnb and like airbnb and thought it was worth a lot, that's one thing but if you had no idea what this thing is, it is a chinese company, they priced it whatever, it is doing whatever it wants, i mean, no that's not what the government should favor the government needs to -- i'm not saying that airbnb is worth 170 or worth 90 and the government should step in. the government has to recognize that not all companies are created equal, and not all exchanges are created equal and should say, you know what we don't want this kind of chinese deal where is peter navarro >> peter navarro i don't know why you're mentioning peter navarro >> chinese companies >> oh, right, right. i want to get to bob and the broader market a couple of things we mentioned at&t briefly during your mad dash. referencing morgan stanley report not necessarily negative just simply talking about free cash flow and the dividend and how much money they're obviously going to spend on this cband auction, which is

important to their strategy as well of creating a midband spectrum they need for 5g. you can see the shares, which have been performing fairly well lately are off a bit this morning. as are shares of dish again. you talk about speculation, you talk about things in the market, dish is pricing at $2 billion convertible, noncallable, 35% conversion premium and no coupon so basically you got people who are using the convert to get into the equity in a senior fashion, because, remember, in the capital structure, you're treated more senior. but that's it. it is basically that's what it amounts to dish continuing to raise money for its 5g rollout, jim. we'll be watching all of it closely. the cband auction, by the way, will raise money for the government, does keep going up in terps of wh in terms of what the companies are willing to pay >> david, what happens if at&t had a secret division, on the 13th floor of the empire state building, where they traded bitcoin?

then what would happen think about that >> i don't know. >> the stock would be higher. >> yeah. it would be higher, yeah i don't know what you're talking about or even what you're referencing. >> the empire state building does not have a 13th flr floor. it goes 12 to 14 it is a joke from "man from uncle ," you're too young and you use rabbit ears. >> i am. "man from uncle" is one i completely missed. here is a guy who may have gotten it, bob pisani, he's a little tad older than i am bob? >> i'm your ilia kuriakin, that's a reference jim would remember very well happy thursday to all the baby boomers out there. we have been talking about the s&p having trouble around the 3700 range for a while complaining about it tough to break out we broke out we got a global breakout but let's take a look here we're decisively at new highs on the s&p.

sector wise, it is broad, banks not participating today. ten-year down a little bit from yesterday. but materials, tech has a new -- that's a new high for the tech sector for the s&p 500 consumer discretionary, that is a new high for consumer discretionary as well. retail has been on fire recently that's the xrt, that also is at a new high as well as i mentioned, banks are lagging here what i don't see, i see the s&p new high, i dedon't see a lot ow highs. that's the top heavy nature of the s&p, the top 25 stocks have such large market capitalizations, they can push the s&p to new highs without having new highs those there look primarily, of course, semiconductors continuing, teradyne and broadcom routinely on the new high list. service now is coming out of the new high list. you get the point. top heavy, large market cap stocks tend to moveind indexes

these days this is a global breakout. look what's going on today asia pacific, we got australia, china been doing well, the msci asia pacific index at a high storic high today. in europe, i watched the dow jones stock 600, the highest since february, the efa is at a new high as well this is all being helped by the weak dollar. the dollar at a 2 1/2 year low, the dollar index against the basket of six other currencies and commodities moving crude oil is at the highest level since february so if you look at the positives and negatives now, the market really loves what it is seeing the positives here, the vaccine, the low rates, liquidity, and the stimulus all positive. the belief in the stimulus the negatives, we know what is going on covid winter, terrible initial claims, 885,000. rich valuations, 22 times forward 2021 numbers and extreme

bullishness level. the macro setup is good. the overarching trend is higher. more about leadership stocks, folks. small cap versus big caps, growth versus value. tomorrow, big rebalancing for the s&p 500. tesla is going into the s&p 500 and, boy, there is talk we could have 80 billion of tesla to buy. i'll be all over that, do a little explanation of the nature of rebalancing very interesting moment for the s&p 500. let's go to rick santelli, in chicago. hello, friend, how are you doing? >> hey, bob. very well. i'll pick up right where you left off we did not have a good initial claims number. that 885,000 i brought out at 8:30 eastern is a three-month high now, we have a three-month high there and then perm ans, even though mostly multifamily, permanence was the highest number since september of 2006, call it 14 years which one do you think the

market paid most attention to? jobless claims intraday of 10s, yields moving down rather aggressively on all the long dated 30-year bonds down so really claims is giving us the better direction according to the fixed income market now if you look at a two-day, you see where we're failing. we're failing in the mid-90s high close we had around 97 basis points that's the area. the downside, you have to give it a little room, though you could trade down to 75 you're not going to change the long-term look of the chart, which looks like rates want to go higher. in no hurry at the moment. foreign exchange, that's where the big battles are being played two-month of pound versus dollar you won't see a higher level it is the highest level in 31 1/2 months. look at the euro versus the dollar for two months, almost identical chart, comping back to the last time the euro was this strong, april of 2018. let's keep that date april 2018 and go to the dollar index

all three are comping the same place, the dollar is under 90, weakening, and many believe it will continue to weaken. the real key is, i'll continue to say it, ad, after distribution of the vaccine, and how different aspects of the economy will change. maybe the biggest thing that will change is how dovish the fed will be and how the purchases will be moving forward. david, jim, back to you. and keep watching in about an hour i'll have the stanley black & decker ceo jim loree on for how behavior changed with buying tools in a covid-related world. >> we'll tune in for that for sure, rick, thank you. rick santelli with the bond report. still to come, getting skeptical, healthcare workers to take the covid vaccine we'll discuss that with a pair of hospital system ceos. s "squawk on the street" is right back

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what made me so alarmed and scared and frankly angry was the apparent scope and magnitude of this breach. the american people deserve to know because this attack was virtually an ability of war. we need an overhaul after we clean up this mess of our nation's cyber defenses. >> jim, it was over eight years ago when i did that documentary on chinese epeonage. it was just starting to get up to the board level i've been focusing on this as a national security concern. in this case, it appears to be

russia you've talked so often about the companies that provide defense this is a large big problem if you listen to senator bloomen thal >> the optimal identity company in the world a lot of this happens because of systems throughout the country where you have on premises security that's easily breached. if you spend many money, it wouldn't occur you could say todd is just talking his book we all know there are legacy systems that haven't been updated and that it is just wrong. >> the other thing is vendors. solar winds here one, two, three is the password. are you kidding me we'll take a quick break and come back. >> at least use your dog's name.

solar winds marlee

>> coming up, meet the ceo of a company kwhuz ock stis up 170%

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jim, what is on the big program this evening veeva which is it a sas company

for health care. a small to medium size business, which is pretty great. >> and at home, lee bird, they are sold out of things you need to, say, have a fire pit outside. >> quite popular we'll talk about it later today. >> i have total confidence i'll be there for mad money grab a rice cake and head in >> we'll be watching on mad. good thursday morning. welcome to another hour to "sqwawk on the street. welcome, morgan.

hello. >> good morning, david as we work from home on this snowy day. we have major averages in the green. fresh highs in the s&p highest level since early september as congress closes in on a $100 billion covid aid deal >> numbers and deaths hitting new records. we'll talk about capacity concerns >> and moderna's vaccine will soon join pfizer as it undergoes the fda review committee meeting today to discuss the moderna vaccine. more about what to expect throughout the day >> that meeting is under way now. discussions about what to do

with the emergency use authorizes as more and more vaccines get underway. we'll be hearing presentations from both the fda and analysis we saw on tuesday and moderna itself later this morning. also time to hear from the public about their thoughts. the committee will be voting and discussing from 3:00 to 5k tonight. we'll see that vote from 5:00 to a little after last week, there was discussion around the age the emergency use authorization might be coming for. age 16 plus. moderna would be 18 plus 5.9 million doses would go out next week on top of the 2.9 million we've seen from pfizer this week and another 2

million from pfizer and biontech pharmacists were finding when they we they were they were diluting, they could get more than the five doses they could get six or seven. they have approval to use all of those. at first some were tossing those. heartbreaking to know some was wasted but now there is potentially more available than we initially thought. sos that good news >> meg, how unusual is it to see something like that happen is it just something you would

see happen >> that's what i'm hearing this is something that will happen because of the slight variability in the amount, there can be more sometimes. this probably happens with a lot of new product roll out in medicine we are just not paying attention to new roll outs right now >> fair enough >> pretty important. more now on health care workers getting vaccinated this week bringing in ceos and from st. vincent's in alabama let me start with you, dr. boom. i'll go to you first what is the situation now in

texas both what you are seeing in case counts and what you you are dealing with in terms of distributing the vaccine and getting frontline workers vaccinated >> it is a very interesting time we are watching these things go on throughout the state. if you take the big urban areas like houston, we are about half the summer we come back up and don't see that right now to the increase you go to the smaller rural areas where they are the worst they've ever been. it has been a challenging time in the state there are a great deal now where we've seen the first shipment of the vaccines on tuesday and have begun vaccinating. >> sorry to cut you off.

we are having a little trouble with your audio. doctor, you did a survey of your workers. i was surprised that only 60% seemed ready right away to take the vaccine. was that a surprise to you >> no. not really i think shortly everybody will want to take it. i think 60% are anxious to take it 20% want to take it but are cautious and 20% are very skeptical about taking it. i believe as they see what happens with their friends and as it rolls out. it has rolled out very smoothly in alabama we cannot mandate it like we do with the flu vaccine but i think

we have given considerable amount of information to our staff. faqs, zoom forum, i think as they get educated, they'll take it >> dr. boom, do you have a similar sense of reluctance morning the emmoiployees? >> right now, we have signed up over 11,000 employees and physicians a large percentage of the population runs towards this it almost felt like a party. there was so much relief and hope there is a whole other group that is taking a little bit of a wait and see attitude. i think we'll get there quickly

with education and a smaller percentage people that are completely reluctant at the time we've mandated the flu vaccine we'll get there eventually with this but it will take time >> in the meantime, unfortunately, we continue to see these record case numbers on a daily basis. tragically record death numbers on a daily basis as well in terms of on the ground in alabama, are you concerned about capacity in the meantime despite the conversation we are having about vaccine roll out we went up 22% in cases in the hospitals in the last nine days.

we only have about 7% of icu beds throughout the state. i will thank governor ivy. she's kept the mask mandate very strong if she had not done that, we would be in a more difficult place. >> why is that >> i think even though governor ivy -- there is no prove of what i'm about to say even though they kept a mask mandate on, i don't think the people in the rural areas were as obedient on it. wrong word >> i did want to come back to

your work. you souchbded not that surprised. these are the people dealing with covid patients who have watched the disease and are potentially the most vulnerable to get it. these front line workers and you are still telling me only 60% would want to get it right away. i guess i would have thought if i were in that position seeing what i had seen, i would want it as quickly as possible >> health care workers throughout their career have seen drugs that have gone through testing and still had adverse side effects, so i think people are -- most people are in a wait and see attitude. i do believe with transparency education and as people see what is happening with their colleagues, they'll take it.

right now, they are a little bit skeptical. >> all right we'll be monitoring that appreciate both of your time this morning thank you. after the break, vista outdoors surging 175% as consumers spend money on outdoor leisure since the pandemic more "sqwawk on the street" when we return. and so do retailers. which is why they're going hybrid, with ibm. a hybrid cloud approach with watson ai helps manage supply chains while predicting demands with ease. from retail to healthcare, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. but we are hoping things will pick up by q3. yeah...uh... boss: doug? sorry about that. umm...what...its...um...

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welcome back to "sqwawk on the street." shares of vista outdoors up 170% the company bucking the covid trend. joining us now, ceo chris metz, who i believe is making his first appearance on cnbc >> thank you good morning >> we have been talking about the pandemic because of the stay-at-home trade vista outdoor has seen a surge of demand because of the pandemic tell me where you've seen the most strength. and how much you believe that can continue into 2021

>> one of the silver linings is its effect on many across the world wanting to get outdoors. we have 40 grands that sell into everything from outdoor cooking, outdoor shooting and hunting, bike and ski and golf. we've seen the strength across the board. we posted second quarter results where we grew over 30% we are about to end our third quarter we guided in similar fashion. just kudos to our employees to keep up with that demand and be able to adjust with an uncertain environment. to the extent that we roll out

the vaccinations which will be the belief of so many people we see the long-term effect of so many people and products. >> of course hunting is one of those key divisions. i know you don't manufacture firearms but running ton now production is firing up the jump we've seen in gun sales, what would you attribute that to? >> it koor responds with those purchasing firearms. there are many new participants of firearms in the marketplace over 40% are women and people of

color. welcoming a whole new set of folks into outdoors and shooting a few factors, one people wanting to be self-sufficient and control their own defense or protection licensing is up over the spring and this fall. if there is 8 million hunting licenses in the spfall or sprin that means 8 million new hunters. people are enjoying field to table. it has been a wonderful trend we've seen in out door shooting and hunting. >> chris, you mentioned this

demand will carry over people will get in the habit of this outdoor a lot of the things you sell, it is some front loading. you don't have to buy the equipment every year what would you say about overall sales guidance for next year >> a really interesting question i don't have a crystal ball. i can't look out too far we purchased a number of market research firms output where they talked to consumers. i'll give you an example people for bikes have studied the european marketplace they come to the conclusion over 10 million bikes purchased every year the next 10 years

we don't sell bikes. we sell all of the equipment used with bikes. repairing a tire, putting on lights, helmet, jerseys. all of the consumable product, if you will. we are excited that people out are there using our products take outdoor cooking we'll sell the grill but all of the accessories that go with it. there is no question this level of demand out stripping the supply will slow down at some time we are prepared to continue to help consumers use the products they have purchased in fun ways. >> in terms of the consumer, we've seen a mixed bag of data where you have lesser than expected retail sales.

folks watching what would happen with the stimulus bill >> we see the consumer as pretty healthy. never underestimate the consumers ability to consume and enjoy spending their hard-earned money. certainly to the extent there is a stimulus package we don't sell by and large very expensive products ours are easily consumed also by the demographics we feel like we are well positioned it is evidenced by the past environment where the economy has gotten tougher and is still held strong. we see the consumer as healthy at this point. >> i think we'll leave the conversation there for now certainly vista outdoors seems to be quite the turn around

story. going from $6 a share to now more than 20 as we are having this conversation. >> good to have you on cnbc. thank you for joining us >> thank you now etf spotlight looking at cyber security ticker cibr up 35% year to date. getting a boost from top holdings as demand for digital and cloud services remain strong that stock currently up more an 7%. pretty big move. more "sqwawk on the street" when we come back - [narrator] at southern new hampshire university,

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here is your cnbc covid update at this hour. several european leaders including the prime minister of portugal and spain are quarantine because they recently met with french president macron who has tested positive with covid. currently self-isolating while working remotely the u.s. approaching 17 million confirmed cases and secretary bernhardt is one of them he is asymptomatic and working

remotely >> news this morning vice president mike pence and his wife will be publicly vaccinated along with the surgeon general >> that's it for this hour i'll send things back over to you. >> looking at bitcoin. just across $20,000 for the first time yesterday a lot of folks will look at that and say, guess it has broken out up more than 10% >> i'm sure that dollar weakness and dovish expectations from the fed helped to propel this break out. steve leechman is looking at the relation between jobless cases and covid cases. >> jobless claims rising to 885,000. the second weekly rise in a row.

the fourth gain in the past five years arriving with a lag after the surge in covid cases avenue-day average now 247,000 daily cases. claims that remained high but trending in october as the seven-day averages fell. they began to tick back up and now begin to rise in ernest. more than 170,000 above where they were since the pandemic they never really fell that low. the claims have been higher. in every week since march 21 than they were during the worst week of 2009 of the crisis it promises to get worse they are headed above the 1 million mark in a few weeks. oxford economics writes the labor market remains under severe strain and restrictions

on activity have been put in place. add to that school closures they add to that lockdown. lousy jobless claims follow the report before many governments have revived lockdown policy more workers face the prospect of a jobless christmas. more unemployed workers are going to hit the new year without any jobless benefits a lot of those are expiring the week of december 26. >> pretty grim hard to remember we were below 200,000 a week at the best levels just last year. thank you. appreciate it. >> the nasdaq hitting record highs this morning joining us now for a closer look

at the whole sector and out look for the lead tech analyst. mark, good to see you. starting generally now, we had the nasdaq up 40% this year. have we piled on too much? >> this will be the third best near nor nasdaq in the last two decades. now the big skplarchatiexplanats covid. amazon, microsoft, facebook

turned out to be part of their business does that mean you should be a little more muted? hard not to state that with these rapid gains particularly in the first half of 21 particularly companies with real acceleration i think you'll see consolidation in the stocks. >> there is idea of regulatory and trust concerns the market is just set aside is it going to change at all. >> the company that i track most squarely in the center

google with three or four separate cases going on. no question this is a very powerful company in the internet advertising space. whether they've created any harm to consumers, i'm doubtful of. there on all sides they represent publishers, ad buyers and the exchanges they came out are still highly redacted >> google with the most regulatory risk and the chance of some sort of breakup. >> the well researched case not

to mention the texas case you mentioned. >> talking about comps year over year when you mention spring or summer that we'll do as a result. >> you are right to point that out. the record sub ads because we were stuck at home great value for people who wanted to entertain themselves and couldn't do it other than staying at home. they had a huge surge of subscribers. they could clip along at $20 million, $25 million a year. seeing that consolidate. i bet you it trades in line roughly with the market to make money, you have to look out for 22 to 23 more.

one of the very few companies i cover. something like that will go higher steadily the first half of 21. >> we just covered faang with you. in terms of your brord tech coverage, what is your top tech pick of 21 >> nice to see you too morgan. i'm going to stick with uber up 80% despite covid cutting the ride sharing business down at the knees. business just got gutted we think coming out of covid, new cases may be expanded. we are finding that they are using uber and ride sharing. also lyft is an interesting idea to run errands

they are finding broader uses for it when we get back to ride sharing and airport rides, that will recover. uber has benefitted and more with food on line delivery not just work from home, it is living from home that's what we've gone through uber wins for that and still can rerate still the top pick going into next year. uber is a great one. >> people are living at home with animals increasingly. i want to get to your chewys call a subscription-like model. the financials itself are not necessarily showing that effortless line from shipping boxes of cat litter around the

country. >> i'm going to call myself a modest bull on chewy it has been a great stock. the fundamentals they've shown 40% revenue growth ee vechbt you'lly growth begets margins. 25 to 30%. chewy has filled out that resource all of the surge in pet adoptions this year. the thing about pets once you get them, you got to keep feeding them and giving them toys. you've got these cohorts you brought in also a subscription business they say every month, send me

xyz. they got a lot of visibility you got to feed pets it is a subscription business. it probably has muted returns in the first half of 21 i really like it >> appreciate it covered a lot there. >> happy new year. in california, benefitting from wall street's gains robert has that story. >> california's tax collections this fall came in $11 bill john higher than expected the reason for all of this, the bull market, ipos and gains from high earners that have generated unexpected tax windfalls exactly

when the state needs it most citing continued success of many companies in the tech sector new york city also seeing an upside tax surprise. revenues running nearly $1 billion more than expected new york and california both have multi-billion huge budget holes and deficits expected to last for years new york state looking to raise taxes. with this recovery favoring the high earnings in both states 40% of their income taxes. wall street surge maybe one small silver lining for these state budgets. as we learn that the fiscal package and not including as many state and local aid as

these states were expecting. back to you. >> fed chair powell saying things were not as bad as fears on the revenue side. we'll see if that will continue as we get to tax day >> home builders are outperforming today. being led by len ar on track for its best day since mid-may ghter the bell, that was last 'lbe back in a moment. stay with us new projects means new project managers.

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>> is the decline in the rally be fuelling the surge of bitcoin. more "sqwawk on the street" coming up.

welcome back to "sqwawk on the street." a few moments ago, president

trump tweeting he will veto the defense bill that will make china very happy protect national monuments and removal of military in lands far away thank you. unclear what that will actually mean in terms of bite versus bark given that ndaa did pass through the house and senate nonetheless, our next guest has expert he's in this area and a message for the incoming biden administration in an op ed penned by trace stevens, calls for a new defense innovation playbook. tray stevens joins us now. good to see you. >> you too, morgan good morning >> i want to get to this op ed quickly, if you could put into

context this tweet and what it means with this defense bill and allocation of funds and if it changes anything >> i think, yes, a veto of the ndaa would make china pretty happy. defense is one of the few bipartisan funding line items for the u.s. government. we've gone through a long process here it is incredibly important we get this across the finish line with key priorities of which biden and trump have agreed technology is a big part of. i believe we get past this as quick as possible. >> what you've written in this op-ed, what are you calling for

or urging for in terms of technological adoption and how open do you think this new administration will be to your recommendations? >> yeah, from all public demonstrations biden has made whether through op-eds or public speaking, it seems that he understands this problem well. he gets that we are falling bee behi -- behind and that our adversaries are catching up. this is something we need to care a lot about the first of which is thinking software first historically, we focused on big legacy hardware. we need to come to grips there are some complex software problems as big as building an

f-35 or aircraft carrier we need to approach with that in mind the u.s. government has historically had an aversion to what they call picking winners when you hold competitions and you don't pick a winner at the end, it's kind of like a preschool soccer tournament. if e is a winner, there is no winner we should pick more winners coming out of them third, we need to scale innovation if that requires a fund dedicated to transitioning the top three, five, six companies with he see in a calendar year, that is something we need to consider on a congressional level. >> when one thinks about the future, you have to talk a lot about artificial intelligence. something we talk about in the

commercial industry a great deal what about the defense given the finances made equal or exceeding ours what about the fears people would have based on movies and science fiction? >> these are really important questions. as a nation where we have a democratic government. we care deeply about ethics. ethical ai is incredibly important. we need to do the best job we possibly can and lead in that development so if we have a seat at the table when we are discussing the stand yards and norms. one of those things the adversary has is an advantage, which i'm not suggesting we should do in the united states these that have the ability to constrict their best challenge into working on things

there are multiple international leaders that have gone on the record like putin that have said, he who controls ai controls the world that's a scarey thing at this moment we are not thinking about how we get access to that same talent base in the united states. we have tremendous software and ai talent. the way our government works, by the way i'm happy, most of those top talented engineers are optimizing ads at social media companies. we need to figure out a way to pull them back to companies that have national significance >> one of those things you are looking to do. we didn't even get to founder's fund, which has had an incredible year. we hope you'll come back and join us to talk about that as well in the future

trae stevens >> absolutely. thank you. black and decker upgrading their outlook. the ceo will join us right after this break stay with us turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in.

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let's get over to the cme and rick santelli for a special edition of the santelli exchange hi, rick yes, thank you i'd like to welcome jim laurie thank you for joining me today, jim. let's get right into it. the big question on all my analysts sources, people i talk to in the market, what they want to know is what's the u.s. economy and indeed the global dme kme going economy going to e after the vaccine? remote, stay at home, virtual, are they going to hang on to gains and we're going to see rest of the economy come back. specifically, how is it affecting your company i know you had had an announcement yesterday upgrading end of your outlook. >> hi, rick, yes, we're happy about the growth story right now. the organic growth which was expected to be 3% to 5% as of

october guidance turns out it's going to be closer to 10%. and that implies a tools business organic growth of close to 20% so the tools business is on fire really good way. and on the industrial side too and this is a global phenomenon, too. the tools business and the industrial business are both improving on the global basis. north america was a catalyst in the beginning. now it spread to the emerging markets and europe and asia is strong for quite some time changed specifically in the tool business why are things so good and whatever that dynamic is, is it going to carry forward when things normalize are we going to have a new expanded normal with regard to the size of the domestic and global economy >> yeah, i think so. if we go back to april and may, when people got locked down, there was a lot of stay at home

sort of activities related to home improvement and also outdoor environment. they start those types of things and that continued on through the summer and it is still continuing however, it's not at the same level it was in terms of driving demand as it was in the mid part of the year. you saw high housing numbers this morning we can't even find a contractor these days they're so busy so now they're coming back and underneath all that in recent months, so has the industrial economy for instance, the auto industry is improving it seems every month now production rates are going up the general economy is getting better as well >> it is a big positive. you know, our channel has this constant debate. are people going to fly as much

as they did afterwards are we going to go back? are we going to permanently be a little different whether it is going to the office and i no he that there's many aspects of your business where, you know, if skills change, people enjoy doing different things, my feeling is that's most likely going to stay part of their lives and give me your final outlook if you were an investor how you would time this. have we pulled forward are we going to hit our feet moving as we get into the second quarter of '21 >> if there is a pull forward. i don't think it's very big. i think this is a new change of lifestyle, business models are changing we're going to a hybrid system where some people are going to be stay at home. some will be 50/50, some people are going to be in the workplace. that's going to, you know, make this demand as far as the home and the garden last into much longer and we're going to have an amazing, i think, industrial rebound in 2021. we have about 4, $5 billion of

our total that is negative call it negative 10% to 12% this year that is cyclical it's going to come back. it's going to make it a very nice -- >> excellent we're out of time, jim i like the optimistic picture you're painting. we'll have you back as we proceed with the vaccinations. have a happy and safe holiday season thank you for joining me today >> take care >> good stuff, rick santelli thank you. going to check on the markets as we approach the top of the hour. stocks are in the green despite that unexpected surge in initial jobless claims fresh intraday highs for the s&p 500 and nasdaq the dow up 116 pounts as well. that does it for "ua othsqwkn e street." "squawk alley" is going to start right after this break things are a little different this school year

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