>> contessa brewer reporting from the slopes. let's check the markets before we go overall, down. not much good news coming out of capitol hill >> thank you kelly and tyler welcome to "closing bell." i'm sara eisen here with day la tausche in today for wilfred frost. stocks seeing weakness to ends the week lower across the board after setting record highs a the open. one hour left of trade congress struggling to get covid relief across the finish line. and only a few hours left to prevent a government shutdown. we are awaiting new details from washington moderna's covid vaccine is moving forward but case numbers in the u.s. continue to surge threatening the fragile economic recovery. it is a big volume day in the

market tesla joins the s&p 500. that stock at a record high approaching $700 per share 59 minutes left in trading the russel is the only index in the green. small caps continue to power ahead. >> all s&p sectors into the red. there are some snags here in washington on the stimulus negotiations we will get a look at that we have a big show ahead. come up in just a few minutes. a big exclusive interview you will not want to miss. fed vice chair richard clariada joins us nike's fair friday afternoon earnings report and the results of the bank stress test, which we are now getting twice a year. we will discuss the implications of both two-year portfolios and

what they could mean let's get to the stories we are watching at this hour. mike santoli is watching the market action. bob pisani is watching tesla as the company gets set to join the s&p 500, if you have living under a rock and meg tirrell has the latest on the coronavirus vaccine mike, let's begin with the market what could be a volatile after-hours session today. >> tremendous amount of mechanical flows churning back and forth related to not just the index rebalancing but the options expiration all of this has been coming at a time when the s&p has been hovering around 3,700. first touched it ten or 12 days ago. we are about a percent above where we stretched up toward early in november. this flattening out phase hasn't done any damage but slowed things down to some degree and maybe allowed the market to digest meanwhile the rest of the market is where high energy wild stuff is goingan look at the overall trading volumes. this is not just about the

index. this is based on quarterly numbers of dollar volume in u.s. equity trading it goes back to three years ago when we were at around less than $300 billion in average daily volume right now, as of december to date, we are above $500 billion on a dollar volume basis what is interesting about this is typically volume tends to go down when the market is weak and when we are selling off and it tends to be lite on rallies. we have had a high volume rally going on here. there is a new energy this this market for better or worse look at one of the sources 6 all of this volume goldman sachs calculates a single stock options volume now represent 85% of underlying share involvement it is not causing all of that share volume but as a relative basis people are buying kind the lottery tickets to play in the upside for the most part of equities as opposed to buying the stocks themselves in increasing numbers. we'll see if it amounts to a

culmination of this rally and amounts to people getting overexcited or if this is the bull market feeling its toes. >> what are the poll sentiments? extreme bullishness. yes, relatively on the upper end of bullishness not youflly, but it has been that way for weeks one thing to keep in mind is when people get optimistic and agreed starts to flow that is a condition that can hang around it is different than a fear and panic that a company's -- climatic lows that's a brief moment in time whereas you have the market strong i think sentiment is sketched but it flattened out with a market in the last weeks it is not a critical pressure point on the market necessarily but it gives you the context where it wouldn't take much to knock things off course or create an air pocket in the next several weeks. >> that's the backdrop for tesla gearing up to join the s&p 500 that could lead the some unusual

trading activity into the close. bob pisani has a closer look for us bob? >> a lot of that single stock option volume mike has been talking about is due to trading in tesla it goes into the s&p 500 at the close today. it officialsly trades in the s&p on monday. they announced it was going into the s&p in the middle of november that was $400. it is $670 it is up 66% in five weeks that's an incredible gift to teas la buyers because everybody who was indexed in the s&p has the buy it at absurdly high prices right now they are very, very happy tesla owners this is the biggest add ever, the biggest rebalance ever for the s&p 500. tesla is so big. it is going to be the seventh largest, it is going to be 1.5% of the s&p it is going to increase the p/e to 2.6 which is already pretty pricey look at volume right now it is trading about 70

million shares per day that's going to be north in the next hour. it will probably be north of 200 million shares before we are done we don't know how big it could be because we don't know how many people are indexed into the s&p 500. i know you find that hard to believe but right now the estimate is we need $85 billion to buy at the close for tesla roughly to balance everything out for tesla's eight wading in it there are many people who follow the s&p. that would be 40 to $80 billion more see? this is why we don't know exactly what's going on. you can find the whole thing at the close and get a lot of potential fireworks. we will keep an eye on all of that of course in the next hour. back to you. >> bob, stay close thank you. we are getting breaking news on united airlines phil lebeau with the story. >> reporter: lock at shares of united the airline announcing it plans to bring back the 737 max starting on february 11. it will be flying the max

starting february 11th out of its hubs in denver and in houston. what you are looking at how is american bringing back the max at the end of this month then united on february 11th and we expect southwest to brit back sometime in the month of march. this is what we are going to see over the next several months a gradual increase of 737 max flights here in the united states united bringing back the max on february 11th. >> as passengers in this country are trying to wrap their head around whether they feel comfortable with that phil it is a good day to put on the calendar. meantime we are awaiting a final decision from the fda on moderna's coronavirus vaccine candidate. meg has the details for us any idea when this could come down. >> so far, the fda has been a little bit ahead this week for moderna of where it was last week for pfizer and biontech they put out a statement last

night saying essentially they have informed moderna that it will rapidly work toward finalization and issuance of this emergency use authorization. they have told cdc and praying warp speed so they can start their plans for timely distribution this came last night for moderna. if we are going by the same time line, pfizer's emergency use authorization came after 9:00 p.m. on friday we are expecting it sometime today but it could also be tomorrow it is expected once it happens, it will trigger the process of first the cdc meeting to recommend this vaccine or a panel of advisors to the cdc next week 5.9 million doses of moderna's vaccine will go out on top of 2.2 million more doses of pfizer's vaccine on top the vaccines that have been going out this week. i mentioned the panel of advisered to the cdc

they are meeting and on saturday and on sunday this weekends. on sunday they are going to be voting on the next priority groups to recommend for this vaccine. phase 1a includes health care workers and people who live in long term care facilities that together is about 24 million people this group has proposed in the next phase of allocation it would be essential workers, people working in education, food and agriculture, utilities, police, firefighters and then phase 1c adults who are at high risk because of underlying medical conditions and also adults over 65 who are also at higher risk of severe disease. it will be very interesting to hear how they weigh these different priorities because we are going to get through about 20 million people if all continues on schedule getting their first shot in december so in january those priority groups will be able to get access, too, guys. >> meg, thank you. still ahead the view from inside the federal reserve we will talk with the vice chair

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we think that the asset purchase guidance is very important. we think that the prior language of -- in coming months was obviously temporary. this link that guidance, those purchases to actual substantial further progress toward our mandated goals we think that's important. and we think that is important to have done >> that of course was fed chair jay powell earlier this week outlining the fed's asset purchase guidance. what does substantial progress actually look like federal vice chair richard clarida joins us now for an exclusive interview.

welcome back good to have you. >> hi sara how are you? >> i'm doing i think the big question out of the fed meeting this week that hopefully you can clarify is, what does substantial progress look like on your goals that he you would consider parring back the asset purchases. >> the chair saidet very well. substantial progress means we want to make substantial progress toward reducing unemployment and moving inflation back close the our 2% goal the coronavirus dug a deep hole for the economy. the recovery so far has been robust there is a way to go and so substantial progress obviously will come into view as we get closer. but that's a ways away right now the focus is on providing the support the economy needs to get us through this tough stretch >> i guess it does feel a little mig, mr. vice chair. why not set specific markers so that it is actual guidance

>> sara, we set specific markers for interest rates in our september meeting. we think that it's appropriate with regards to the asset purchase program to put down markers in terms of substantial progress as we have indicated. again our communication, our sep projections as we get closer to that point it will become clearer. we think right now this is the best way to communicate our goal for what we think the economy needs right now. >> there was some surprise and maybe a little bit of disappointment that the federal reserve didn't go even farther. >> okay. >> increase the weighted average matu maturity, focus on the long end of the curve why didn't you do those things which would have been considered system lative at a tough time? >> sara, we think we are providing very ample support for the economy with the combination of our guidance and these purchases which are at a very, very robust pace $120 billion a month we think that the

interest-sensitive sectors in the company, auto, durable goods, business investment are all responding the low rates the context in the -- service sector obviously is being hampered by the virus and we think the current constellation is where we want it to be. the chair also indicated of course in future meeting we are going to be assessing the situation and there are things we can do with regards to the maturity of our portfolio but right now we like the setting of where policy is and we think it is providing very important support to the economy. >> one of the worries is the near term. and we've seen that already deteriorate. retail sales, jobless claims how likely is it that we could be looking at a double dip recession? >> sara, i certainly we don't have a double dip. i don't think we will have a double dip but you are correct. the surge in hospitalizations and new case is clearly impacting the economy. we are seeing it in some of the data that you have referenced.

as we have said, we could have a rough couple of months in the data but on the other side of this of course we have gotten very, very positive news on multipl vaccines that are not only safe but effective. indeed this week we began to have those vaccinations deployed that makes me individually very optimistic about the economy as we get into 2021 indeed, i and most of my colleagues revised up our outlook for the economy over the medium term over the next several years notwithstanding we acknowledge what could be a rough couple of months because of the increase in cases >> the other factor there of course is fiscal stimulus. i know that you and fed chair powell and so many other economists have called for congress to do something they are discussing it the latest hiccup is actually a new provision introduced by pat toomey a republican senator from pennsylvania who actually wants to include a provision that would not let the fed revive its

emergency credit lending facilities would that be a mistake? >> well, sara, obviously, i am aware that those conversations and negotiations are going on capitol hill i am not a party to them so i won't have anything to say on that. beyond what we have already said that secretary mnuchin, treasury secretary, has indicated that the treasury would like the programs to end as of december 31st and for the fed to return the unused treasury investment, the c.a.r.e.s. act appropriations and we will do that. but beyond that, i don't have anything more for you on the current discussions on capitol hill >> well, leave the discussions aside for the second would it be dangerous if the federal reserve legally were not allowed to revive those credit facilities in the case that the economy and the markets would need them? >> well, we have said, and we do believe that the 13-3 facilities which are only really triggered in unusual and exogent

circumstances in the legislation were very important -- provided very important support to the economy. so there is no doubt that the 13-3 facilities were very valuable, and certainly -- we would certainly expect the 13-3 provisions to continue to be available to us. again, i am not going to have any further comment on the discussions on capitol hill. >> what's the cost of not doing stimulus it has been months now since you have been calling for it how is that impacting the economy? >> sara, the way we think about it -- it is a good question -- is that given the nature of this shock, both monetary and fiscal policy have an important role to play the c.a.r.e.s. act was the historic piece of legislation, very timely, very substantial. and it did provide income support to the economy we think of this as really bringing a bridge from that enormous hit we all took in the spring to the other side of the widespread distribution and effectiveness of these vaccines.

and we do believe, and we have said, indeed, it looks like there is widespread agreement on capitol hill that additional fiscal support is called for it would certainly be very welcome. and especially with the pickup in cases and hospitalizations and the attendant dampening in activity that you might expect from social distancing and other measures i think the economy could certainly benefit from additional fiscal support along the lines that is being discussed right now on capitol hill >> you said you are pretty optimistic about 2021 as we get this vaccine rollout under way and i assuming it teps and builds and grows and it goes smoothly, what type of growth are we looking at for next year? >> well, i certainly think above trend growth potentially, you know, above 4% growth i'm even more optimistic than that on the baseline scenario. there is a lot of pent up demand in the economy sara in part

because of the effectiveness of the c.a.r.e.s. act there is well north of $1 trillion of excess saving that we believe people will eventually spend once they are return to more normal pace of life. in addition monetary policy operates with what are called long and variable lags and we have very, very accommodative policies providing support. it will provide even further that support let's remember, sara, i said this on your show back in the spring there was nothing fundamentally wrong at all with the economy in february unemployment was at a low. growth was solid inflation was right in line with our 2% objective there is no reason that we can't get back to those levels of activity, and a lot sooner than we did following the global financial crisis >> so i guess if that's your outlook, why then is the fed saying, not going to come off the zero rates until at least 2023 why are you then saying it is

not going to be any time soon that we are looking at pairing the -- if the outlook is so strong don't you have to start thinking about reversing some of the extraordinary measures >> that's exactly why we chose i think wisely in september and at this meeting on wednesday to offer outcome-based guidance not calendar-based guidance. you look out to 2023, we don't get our inflation and unemployment to levels they were prepandemic until 2023 if it occurs earlier then we change our policies earlier. if it occurs later, it will push it back. let me remind the viewers that we made an important judgment in our september meeting to offer

out-come based guidance which says that we won't raise rates until we get to the 2% level of inflation. this will be a different cycle than past cycles because of our new monetary policy framework. that is different from past cycles is that policy is going to remain accommodative longer to give the support the economy needs to achieve our dual mandate goals on a sustained basis. >> yeah. i guess that was underlined in the point of the framework that chair powell released a few months ago what about globally mr. vice chair? how do you assess the global outlook. >> do you think it is going to be a synchronized recovery or patchy >> looking in the rearview mirror we certainly had a synchronized slump every country in the world outside china had really enormous declines in activity, 20, 25, in our case more than

30% annualized we also have synchronized recovery in the nurk although the u.s. had more rapid growth than most countries in the third quarter. locks like in the fourth quarter there will be a slowdown in activity in the u.s. i am suspecting something along a percent annualized growth in the fourth quarter europe, a sharper slowdown i think bradley the big picture is we will get something that looks like a synchronized recovery since we had a common shock and we will have a common distribution hopefully of the vaccines i think across our country we will see something like we saw last year and that's going to depend on a lot of factors including policy support to answer your question, i am more optimistic about the u.s. than the global economy but i do see a broadly synchronized global rebound in 2021. >> finally, just to bring it back to the markets.

we have got 35 minutes left of trade here on "closing bell" is this yeah? we are seeing stocks near record highs. ipo mania. spacs are all the rage m&a is hot it is amazing to see the capital markets so strong at a time where millions are unemployment. we see these shockingly bad numbers every single week now. the food lines and the hunger in this country is real >> yeah. >> small businesses are closing. how do you look at this disconnect how do you explain it? and what would you tell people who say the fed is only working for wall street? >> well, first of all, sara, i would -- i would say that is simply not true. our entire focus, all 17 of us, is to put in place policies supporting the economy yes, unemployment is too high. but 11 millions jobs have been regained and that's been the result of policy financial markets obviously have been responding. i think better prospects for the outlook. they are always looking ahead as

well as the support provided by monetary and fiscal policy but we see -- we also see a rebound in home building we see obviously ample levels of consumer saving. so i think that the overall picture is a positive one. but, certainly, this has been an unprecedented hit to the economy. and we are really not going to be satisfied at least with monetary policy, until we can get the economy back operating where it was just back in january and february of this year so we share that goal and we want to get there as fast as possible. >> well, we appreciate you coming on to talk about it always richard clarida, thank you so much. >> thank you, sara thank you. >> vice chairman of the federal reserve. >> the fed's people are focused on the human element of this as you know, the tools they have are to stabilize the markets and corporate america. we'll see whether the incoming administration can change the mandate as many people want it to do. after the break here on "closing bell," the year of the rv, winnebago jumping today

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person's like way of life. i'm kate rogers here's what is happening at this hour n. new york, reporters found the police department used excessive force in responding to race brutality

thisser summer. in japan, a first look at the samples brought back billions of miles from an destroyed earlier this month the first container holds just a fifth of an ounce what have looks like black sand. two more containers from the probe have not yet been opened. in alabama, the manager of a sewage plant has been suspended after police found an illegal winery on the plant's property an anonymous tip led them to investigate and find more than 100 gallons of illegal wine. that's your cnbc news update for this hour. indicate larks back over to you. >> note to any amateur bootleggers, they will find your illegal winery if you try to start it. >> they will. >> thank you, kate. shares of win baying og driving higher after reporting first quarter results this morning. although still down from its all-time highs back in june. the rv maker beating on both the top and bottom lines and saw a 35% growth in sales this quarter

over last year joining us, winnebago industry's ceo michael happ it is great to see you we traditionally think of the summer as a vacation time when families would hop in an rv and drive across the country what was it about the fall quarter that ended november 28th that saw such strong year over year comps for you >> people are enjoying the outdoors retail activity remained robust into the fall and early winter month. and the wholesale environment for shipments into our dealers is strong as well. their inventories have been low since the summer retail was at record levels. nice tail winds for our business here in the last quarter. >> you know i am looking at the backlogs it increased to nearly 30,000 units. that's an increase of 313% based on some of the trends that you were talking about what does that mean for 2021

how many consumers want to buy an rv who were not able to get that are hands on one in these last few months. >> we were pleased obviously with the way consumer florked to the outdoors in 2020 as they tried to manage through the pandemic's impact on their lives. we believe you will see more of a similar behavior trend in 2021 so there is a great deal of pent up demand we believe by consumers who perhaps were interested in the stays or the category early this year and maybe didn't pull the trigger but are still exciting to explore a way to get into rving and boating in 2021. we are optimistic about retail conditions going forward into the next calendar year. >> what have you learned about who is buying a winnebago for the first time what sort of demographics they are. and how do you plan to keep them >> we really are seeing the demographics changes in a meaningful way our consume remember getting

younger. they are becoming more diverse in terms of background and profile. and they are using the products in many different ways i mean, the work from anywhere trend is quite strong right now, and a lot of our new consumers are seeing these products as a way to work from the road or a beautiful camp ground somewhere here in america. so we intend to work very closely with our dealers to try to obviously provide them high quality product but take care of them after the sale as best we can. for those of you who have been lured to the outdoors before and enjoy camping or rving or boating that experience can be intoxikating and contagious. we depend on that going forward. >> michael, our colleague, jim cramer, has always been fond of saying that in times of economic distress people will pay for their cars before they pay for their mortgage because you can live in your car but you can't drive your house to work i am wondering, with your line

of sight into the market that you operate in, what is the picture of consumer credit right now? how many people are choosing to buy rvs instead of a home because of, perhaps, some of this economic uncertainty? >> well, i don't know the answer to the question of whether they are buying an rv versus a home but i do know that the credit environment around our business remains quite stable we are in touch regularly with the retail financing exits and t they say credit scores are in a good position for those applicants looking to buy and up vest in the space. we believe there are limited outdoor leisure alternatives for people going into 2021 and they see this as a way again to have a safe controllable experience with family and friends. again, it's something they

enjoy. >> michael, thank you for joining us stock is up more than 7% off that earnings beat we appreciate your time. >> thank you still ahead on the show, will banks get the green light from the fed >> dividend is very sound and i would love to buy back stock. >> as soon as we can we are going to go in and buy the stock. >> buy books but certainly increase dividends as we continue to increase the earnings capacity of the company. >> they certainly want to. we will give you the results of the fed stress test which could dictate the future of the buybacks and dividends. a check on the bonds the ten-year around .94% near the high end of the range not quite before that 1% we'll be right back here on "closing bell.

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>> that's right. intel hitting its session low, down around 5.5% as bloomberg reports microsoft is designing its own chips for servers in surface pcs. yet another threat to intel as companies like apple and amazon begin to develop their own chips. intel down 20% on the year cnbc is reaching out the microsoft. we will update you when we hear more. >> hits just keep coming for intel. nike meantime touching an all-time high as it gears up to report earnings after the bill digital sales, and china two key metrics to watch we will break down the numbers and get instant reaction from a top analyst coming up on "closing bell. [squeaky shopping cart]

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welcome back 17 minutes until the close let's check in on some individual market movers susquehanna listing airbnb as

positive the firm saying the rental company is a category leader in a growing market the stock is up 5% or so, about $8 above opening trade price. credit swees downgrading pal tear saying risk reward is skewing to the downside and believes its valuation ignores a number of risks including customer concentration that stock down 4% for more on today's biggest analyst calls head over to cnbc.com/pro up next, wall street gets bullish on chip stocks and what st expect from the bank's stress te results those stories and more when we take you inside the "market zone." these days, we want sophisticated but simple.

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welcome back with 14 minutes left in the trading day, we are now in the "closing bell" "market zone," commercial-free coverage of all the action going into the close. cnbc's senior markets commentator mike santoli is here to break down these crucial moments of the trading today today is we have also got scott wren here as well to talk about everything that's going on boy there is a lot of it this friday afternoon let's check the broader markets. all of the averages moving lower. despite that, the deposit s&p 500 and nasdaq are still on pace to finish higher this week they had opened at record highs this morning

losing steam after snags from capitol hill in relief negotiations i just heard that leader mcconnell is you wering support for a two-day government funding bill that would avert a shutdown this evening and buy 48 hours to continue some of these negotiations unclear where support for that stand but that is the current state of play i just learned during the commercial break. we will see what happens with that but scott wren, i'll go to you first. talk to me about where you see the market going from here and what sort of volatility you can anticipate going into and out of the close with all the rotations and rebalancing set to happen. >> there is a lot of potential volatility coming up, whether it is the january 5th senate elections. whether it is do we get stimulus, which we think we will and certainly, we will get some funding bill here. there is a lot going on. and so i think the appropriate thing for investors to do is to

expect volatility. we think by the end of next year we will see 7%, 8% upside. as we have been telling our clients this year, on these pullbacks, we are bound to get a few more, you need to be in here buying, need to have a plan, need to know what you want to buy and then you need to pull the trigger and execute when you have the opportunity. >> mike as it rets to the volatility, the reball a.j.ancing, the quad glitching everything going on today it is artificial, season it? it is just a matter of techni l technicalities and where does that leave us heading into next week. >> the volumes are price insensitive. it's mechanical. it is rebalancing, big index funds doing what they have to do, this mass enter size of kind of futures and options that's all kind of noise it is not to say that all the

intraday decline in the s&p is because of that. i think it is a lot of hard to flow and hard to decipher. s&p is back to monday's high the monday pop we got is mostly what we have got for the week. it looks like a sideways movement consolidating near the highs. inside of it, up five and six weeks, the s&p is up 15% cloud stocks up 15%. solar stocks up 27%. you have the ipo index up 20%. there is a lot of areas of market that seem overheated and the s&p 500 seems like it is kind of cooling off. those are the things we have to try to put together and figure out if it says anything about whether we are going to finish this year strong with momentum going into next year or if this is a decent spot to take risk off. >> one of the more bullish factars for the market lately has been the fed and fed vice chair richard clarida joined us earlier this

hour striking a pretty optimistic tone for not just the u.s. economy but the global economy in his outlook for next year listen. >> i think broadly, you know, the big picture is we will probably get something thats looks like a synchronized recovery since we had a common shock and we will have a common distribution hopefully of the vaccines but i think there will be differences across country, just as we saw last year. and certainly that's going to depend upon a lot of factors including policy support i think to answer your question i am probably somewhat relatively more optimistic about the u.s. than the global economy. but i do see a broadly synchronized global rebound in 2021 >> striking a positive tone. scott, my biggest takeaway from the conversation with clarida was that he is pretty optimistic, even in the near term where we are dealing with difficult along with the surge he says he don't foresee a double dip recession

he is optimistic and sees above 4% above trend growth for 2021 but continues at the same time to be very dovish saying they don't want to commit on pearing back the asset purchase rogram the asset purchase program or rates. they need to get to their targets they need to see substantial progress to me that's a bullish take. >> he sounds a lot more positive than chair powell. so i would say that the fed overall does have some concerns. but it's jay powell and virtually every fed governor has told us for months and months is you know they are going to be very easy for a long period of time and if inflation or the economy runs a little hot, they would love that. i don't think we have to worry about the fed. you know, there is not too many things that you can say are certain in this particular market because there are a lot

of factors that are playing into it one of the most certain thing is that the federal reserve is going to be very easy for an extremely long period of time. and that's not one of the concerns we need to worry about, at least in our opinion. >> mike, that's what clarida said is going to be so different about this cycle from last cycle is just how long the fed will be accommodative for. and he noted that there is not really a precedent because of the changes that the fed made to what it's looking for in some of its benchmarks back in september. so how do we figure exactly how long it is willing to put a floor under this market? >> i think the fed is saying the framework they introduced in september bought them the luxury of not having to specify don't worry about it yet is part of their message they are trying to set the ground work for saying be

prepared for this kind of environment to be the case for a while. they don't want to be more specific on quantitative measures than substantial progress because they want to preserve flexibility and hammer home the idea that they really mean it about getting inflation to and above 2% before they raise the rates. now is the market going to call on them to prove it and call their bluff next year if things really start to run hot? maybe so but that's not really today's issue that investors have to deal with. >> he said he expected 5% annualized growth for the fourth quarter of this year i mean that's an extremely optimistic outlook we will see whether he is right about that. meanwhile a fair of analysts getting bullish on chip stocks wells fargo naming micron its top pick for 2021. and jp morgan likes bron com this comes as the industry is

facing a global chip shortage causing manufacturing delays volkswagen saying it is adjusting production to combat supply issues. smic was moved to a trade black list that action taking place over alleged links to the chinese military scott, do you think that semis are a space you could play in right now? or do you think the supply chain and some of the political actions are making things too uncertain for you? >> well, indicate larks i tell you, if you look at the performance of semiconductors. let's take it from the march 23rd low they have beat ten pants off the s&p 500. that's just -- that's an early cycle sign, along with better breadth and numerous other things that we have seen so if you think that we are at the beginning of a new cycle, which we do, certainly semiconductors would typically

ben rit fit from that. for us, it makes sense that semiconductors and semiconductor equipment have outperformed. they pretty much kept pace with the technology sector as the whole and that further outperformance would make sense. >> just want to point out tesla, it's up about 1.4% all over the place as we head into this rebalancing at the close where it will join, officially, the s&p 500 next week on monday it is now up about a quarter of one percent. also after the bell the federal reserve set to row lease its latest bank stress test. leslie picker has a preview. >> usually there is only one stress test each year. because of the economic shock brought on by the pandemic this year the fed is running a second test the results of which will be disclosed after the close today. the hypothetical test involves

two scenarios, one with more of a v shaped decline and a sharp recovery there the other more of an l shape the focus will be whether banks will continue to suspend buyback and limit dividends as was the case in the first stress test back in june or whether there is going to be a time line for lifting those curbs. back to you. >> leslie picker, thank you. mike, what will you be watching? we are seeing the market recovering here but markets are still red. >> market recovering whatever rebalance has to happen for the index as lot of the mechanical selling in the rest of the stocks not tesla probably got done i think in general for the stress test any clues about the date coming closer as far as buy backs coming back into business,

it is hard to see the fed rushing this that's the clue that everybody is going to be focusing on >> we are watching the markets climb back toward the break-even line with two minutes to go in the trading day. mike, when you take a look at the internals of the market, let's get some behind the scenes action of what you are seeing when you lookat the markets today. >> it is a little bit of a hash internally we knew this coming in, that there was going to be a tremendous amount of dollars sweeping through the market but not necessarily directional or because of macro kind of kai indicators we have definitely a skew towards the downside in terms of new york stock exchange volume, those are very large absolute numbers for this hour and it is going to be very, very huge at the close where there is a lot of orders waiting to be executed on a week the date basis here is the proxy in the reopening versus stay-at-home. the cloud stocks, the global cloud etf up 7% on a week to

date basis airlines down 4% this is way the market is digesting the slowdown phase and obviously the bad indications on the covid epidemic and volatility index it kind of keeps missing these chances to bleed lower below 20. here it is around 22 where it has been for a while nextweek if it gets sleepy, preholiday mode maybe it can give way but today things were too jumpy to have it decline much further and confirm the rally. >> one minute before the close tesla is flat and the rest of the market mostly is lower anything higher on all the major averages would have been a new record high. we closed at quadruple record yesterday. the dow down .2% we were down more than 200 heading into the final hour of trade. intel is down on news that microsoft is coming up with its own chip

verizon and p & g strong expiration of options, the clod witching, rebalancing all going on there is the closing bell. a 1% gape for the s&p this week. the russell 2000 the big winner on the week, up 3% despite closing down here about .4%. over to you, kayla >> thank you, sara welcome to "closing bell." i'm kayla tausche in for wilfred frost along with sara eisen on this friday afternoon. and mike santoli with us as well the s&p, dow, and nasdaq all opened at fresh records today. lost some steam throughout the middle of the day but climbed back toward the flat line toward the end of the session do you closing down 115 points,

s&p down 13. nasdaq down about 9. still the dow and the s&p both on track to post weekly gains. the nasdaq as well we had seen all s&p sectors in the red. of course some stall asking hang-ups here in washington where i sit over negotiations delaying of press coverage and lack of progress in talks over relief bill weighing on sentiment today and we have since learned that senate majority leader mitch mcconnell is going to be funding the government for two days to buy more time. here you are looking a the russel down about eight points at the ends of this week. a lot of action is going to come after market close as we watch what happens with tesla amid that s&p 500 addition. we are going to get corporate news, too. nike earnings are due out in just a few minutes a rare friday afternoon report by that company. the stock has had a big rally this year.

we will get instant analysis of the ruts coming up plus we are counting down to the fed's latest bank stress test which will be released at 4:30 p.m. finned out whether banks will be able the resume buybacks and rise dividends after all the all important capital measures scott is still with us a.j. odin from bny joins us. mike, first to you it hears to be a ho hum close for the markets despite the expectation of a lot of fanfare with this tesla entry into the s&p. >> yeah. a lot of the sound and fury didn't signify a whole lot in terms of new market direction. now we have a new s&p 500, so to speak. and tesla has been ingested into the s&p at a pretty rich value besides that, the overall market has sort of shown that it is relatively either comfortable or stuck right around these levels

where we have gone sideways over a week, close to weeks in terms of bumping around the 3,700 level. there has been record inflows from investors into equity funds in the last five or six weeks. a lot of money has been deployed kind of chasing the recovery that we have seen right now. and i think there is a very, very wide consensus that in fact we are set for some nice accelerating uptrend in 2021 the only question is how much has been pulled forward and priced in and whether in fact this uptrend we have had is the start of something new all the indicators are accommodating but we have to see behind of how the animal spirits piece of this plays snout before we talk about the broader market we told you it would be a volatile final few moments for tesla. looks like it closed higher,

bob, but didn't look so sure one second before the close. >> tesla moved in about a 7% range on the day this is quite interesting, to see the involvement it is still settling down right now. remember we have the biggest rebalance in history happening today. what you want to loo for here is the volume normally tesla will trade 45 million. you see that 1 7? that's going to get north of 200 million. they needed to buy $85 billion in the minimum and there are other closet indexers who simply want to be part of the s&p and follow it but don't officially pay for it. the volume here is titanic this is the biggest rebalance in history because there are so many moving parts, the russel, s&p, nasdaq 100 as well. a lot of things moving around here people have been watching the trading activity all day tesla is going to go in on monday the reconstitutes eed index trae

on month the u.s. tesla will be the seventh largest component in the s&p. it is going to be a 1.5% weighting in the s&p it is 22.6 times earnings p sl e. >> tesla was 670 an hour ago it went down to 630. then back up to 670. if you put up a chart of tesla in the last few months when they announced this mid november the stock has moved 65% in five weeks. part of thing that has been heavily commented on by the trading community is because passive investing is so big now think about this -- the people who own the s&p 500, the average investor, has to buy tesla at a stupendously high price, up 65% in five weeks. it is not always buy low and sell high, this is a mechanical

process they are buying stupendously high. >> thank you bob mike, it's tempting to think that finally joining the s&p 500 would mark a top for the stock, but tesla always surprises. >> yeah, et cetera pretty much a singular situation when it comes to tesla just the size and why is it going to be inflating the s&p valuation as much as it is because we have never seen a company get to this size with relatively minimal levels of profitability. it moved the needle that much. there is a case to be made as a member of the index with 15 to 18% owned bypassive traders that don't own the individual stock it could oddly enough sort of sap a little bit of energy and the excitement around the name tesla feeds off massive constant demand for those upside lottery ticket options that people keep buying it. feeds into the stock if that becomes a lessen joyible

game or there is less raw material for that activity to happen maybe it calms down also when stocks go into the s&p they tend to underperform for a little while once they get in. >> the one month chart, tesla up 39% in anticipation of this move, to see how it could not settle down at least for a week, a few days, but we will see. speaking of high flyers, bitcoin has doubled over the last three months kate ruooney has the latest on what's driving this monster rally. what is behind it? >> big investors new to cryptocurrencies might be behind this recent rally. according to data from chain analysis there has been a surge in demand from people who hold at least $20 million.

a buying spree since september coincides with the price of bitcoin doubling analysts say the demand from wealthy and institutional investors is a factor boosting bitcoin the an all-time high this week. some of the better known examples will be vocal about bitcoin. paul attitude or jones have highlighted bitcoin as a hedge against inflation in their own portfolios mainstream investors were more skeptical about the asset class. with that higher demand there is lower supply people are selling less than we were two years ago >> i mean, low supply, high demand, what goes up, must it come down at some point? >> you know, that's the history of these things, especially when it has gone up at an angle like this basically there is not a lot to

look at in terms of the inputs as sides from the dollar going down which feeds into the story of an alternative digital currency if you look at the long term chart it peaked above this threshold a couple or three years ago and people go this is a knew range, a new regime it is feeding on itself, just the public excitement around it and the fact that you have paypals and squares as big participants, it is not related to actual numbers. it is owned because people are buying it and people buy it because people own it. >> care and voesa are now taking a look and seeing how it can factor in. a.j., what kinds of buzz do you

get from clients around bitcoin. what you are seeing and what you are telling them >> thank for asking that question, sara i think what it is is that we are seeing more institutions looking at not just bitcoin but the blockchain as a viable way for managing different use cases. so we are not necessarily telling clients the use it as a way to protect against inflation or move away from bitcoin to gold but i have to echo who mike said is that you are seeing people essentially in a herd mentality that the low supply is driving up the price so it is to be determined whether or not bitcoin is going to be viable long term and whether or not essentially it gets full adoption but i think the use cases and the fact that institutional investors are interested in it is driving up the price right now. >> a.j. as you were talking we had a headline at the bottom of the screen that apple is going to be temporarily closing its los angeles stores perhaps the only option you have

when there is a local ordinance for a stay-at-home order but apple has been sort of the tail wagging the dog for the rest of the market throughout the course of this pandemic. i am wondering if you think that the hit that the company will take or perhaps even the encouragement of other companies to follow suit and close their retail stores where they haven't already made those announcements what do you think the impact to the market and the economy could be >> that's a good question. i think, essentially, the market has priced in the pandemic in a sense and we understand at this point that vaccine execution is really what we need to get to, and looking forward to 2021. it is really unfortunate that unemployment is fill at 6.7% as we saw this week those unemployment numbers were around 880,000. we knew this would happen as we went into the winter the tech noms have done well we are seeing them broadening out into more cyclicals and the

russell 2000 performing great this week and for the quarter o out. approximating all indices. i think at this point the market is looking at as long as we have vaccine execution and earnings expectations are starting to meet further down the line in 2021, much of this is somewhat priced in. we saw lockdowns and restrictions coming forward in the next couple of months. >> it does raise the question of what to do next. a lot has to go right. the vaccine execution, stimulus. we don't even have a deal whether to keep the government open past tonight. the economic recovery globally, the lockdowns come off what do you do with stocks offer this 60% run-up from the march lows >> you have to have an opinion for us this logistics on the virus is going to go well. we expect for stimulus we expect the republicans to win at least one seat in the senate

runoffs. we think that the economy here in the u.s. and globally is going to continue to improve we have had our clients leaning toward sectors, consumer discretionary, tech, comservices, materials more recently, thing that are going to benefit from a continuation of this recovery so you need to think that those things are going to happen for you to be really buying stocks here and leaning into stocks here i mean, if you this the logistics on vaccine distribution is going to go bad, if you don't think we are going to see a global recovery, if you don't think we are going to see stimulus, then you know, you need to be cautious. but for the most part, hesitancy over vaccines or some temporary -- we don't have the stimulus this week -- you know, those things have presented some

buying opportunities and we have had a lot of opportunities to buy stock at lower levels this year once again, we are trying to encourage our clients, know where the holes in your portfolio are. and if you believe that the outlook is the same as we see it, then you need to be stepping in here and taking advantage of these pullbacks that we have had. and i am sure we are going to have more volatility over the next couple of months. so you know we fully expect for opportunities. be ready for them. >> scott republican, a.j. odin, thank you both for joining us. have a great weekend. when we come back, nike, just moments away from reporting its earnings of instant analysis and reaction as soon as "closing bell" comes back, in 90 seconds.

welcome back governments are taking on huge debt, but at what cost we will send it over to mike santoli, who is taking a closer look at that particular chart. >> indicate larks relatively modest cost at least at the moment right now we have got congress debating stimulus and debating broader budget issues. some people worried about adding to much to the debt. but this is a long term chart of debt held by the public, u.s. government debt. the blue line is gdp 140% of gdp. higher than at any time since world war ii however, because interest rates are so low this is what it costs as a percentage of gdp in terms of cost, interest outlays by the

government very, very low it hasn't even gone up very much late '80s, early '90s that was when it was a big issue. and that's when we had debates about the balanced budget amendment. right now there is buying capacity not being used because of rates. nike earnings just hitting the tape looks like a very strong report out of nike. the earnings per share number 78 cents. the expectation for nike was 62 cents a share. a revenue beat as well for nike. $11.2 billion in wrechb. analysts were looking for a number around $10.5 billion. that marks 9% revenue growth from last year, 7% if you take out the currency fluctuation it does mark a return to growth for nike last quarter, sales slipped 1% the quarter before, they slipped

38% because of the crisis. clearly nike is seeing a bounceback in miss business. they say growth in all geographies where they operate led by china, up 24% in revenue growth that was another spot people were looking closely at. china was the key growth driver for this company ahead of the pandemic nike felt the impact first with china closing down and now seeing a recovery. i also want to mention digital sales. another major drive of this beat and nike's resillians. they saw triple digit digital sales growth in the u.s. remember nike is a little more than a third of total sales come from digital for nike. i will continue to comb through the report costs went down %. a big part of the earnings beat. they don't have to spend as much not as much travel, not as much

sports going on. they didn't have the olympics that should ramp up next year. the stock up 4.5% after hours. mike santoli, i don't know if you are still with us. >> yep. >> this is a stock that was already at a record high, up almost 40% this year looks like a blowout report. most analysts who were already in love with this stock -- more than they expected it shows you can make it to the other side this crisis. >> the street believes this is sustainable. the stock was down a couple% today. it has regained that and more to an all-time high in after-hours. $144 this company trades at 40 times forward earnings that is far and away above any time of its history unless you go back to when it was a young small fast growing company clearly, the street is this is a

sass play. disvery few companies like that, disney based on its digital strategy starbucks got it at some point a hand fall of small brands that essentially investors now believe have their fate in their own hands and are going to be able to compound for a very long time we will see if it plays out. >> one thing investors are going to have to ask on the call, is for guidance for future quarters with what's going on globally i know that's top of mind. still ahead on "closing bell," we await the fed's latest stress test results. that's up in just a few minutes.

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we are a little more than halfway through december and we have marked a grim milestone as the second deadliest month of the pandemic according to a tally by the covid tracking project. this as the country waits to hear a final decision from the fda on moderna's coronavirus vaccine after a panel of outside advisers overwhelmingly endorsed it on thursday joining us now, dr. scott gottlieb sits on the boards of

pfizer and imlum in a. i know there has been a lot of discussion around the pfizer vaccine distribution, which is now in progress. you talked about it this morning. some states are complaining they haven't gotten as much supply as they were initially promised pfizer saying it has supplie sitting in warehouses, unsure what have to do. how do you think this is going >> look, i think they are taking a caution approach early on as they distribute the vaccine. i think they have been honest about that there seems to have been some miscommunication with the states i think there has been updated guidance to the states over the course of the day in terms of how much they are going to be getting next week. also keep in mind there has been a difficult experience with the antibody drugs where the government pushed out the antibody drugs to the dates and a lot of the states are not using those drugs. i think there is caution on the part of the federal government about pushing out too much vaccine supply into the supply chain right now.

i think they are trying to take a cautious approach here >> pfizer is expected to bring 25 million doses by the end of this month moderna will be adding 20 million doses. how much can the supply chain handle what is the maximum in a given week that you think these companies can send out and actually get delivered to their d destination? >> i don't think the logistics are the real challenge, even the cold chain and the rest of the logistics in the country is sophisticated. i think the challenge is the last mile, the states distribute these vaccines i think the system has the capacity to absorb more supply because when you talk to the individual hospitals they have lists of people they are going to be vaccinating. those lists are much longer than vaccines that they are going to have available they obviously have trained personnel who can deliver more

vaccine. i think if you surge supply in december, the system can absorb it the bigger challenge is going to be in january when states start to vaccinate individuals in the community, elderly, essential workers, disadvantaged communities that might be harder to reach where the states have to go out to find individuals eligible to be vaccinated and get them into vaccine distribution sites that's going to be a bigger challenge. i think the hardships, the challenges are going to be more apparent in january. in december i think the system could absorb more vaccine right now. >> we need another hour with you dr. gottlieb, but unfortunately we are out of time up against the fed stress tests thank you for joining us, as always. >> thanks a lot. >> former fda commissioner. the fed just moments away from releasing those stress tests. the results and the impact they will have on the bank dividends and buybacks when "closing bell" comes right back

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welcome back i'm kate rodgers here's your cnbc news update at this hour. michigan governor gretchen with itmer wants to know why her state isn't getting as much vaccine as planned at her news conference, she also mentioned the covid-19-related death of benny napoleon, the everybody shhh of michigan's largest county. >> i am angry because people like benny are losing this battle every single day. and i still cannot get a straight answer out of the trump administration about why michigan, like many other states, is receiving a fraction

of the vaccines that we were slated to receive. >> what do you do when you can't play your championship game? the sun belt conference has decided to honor the two top teams as cochampions coastal carolina with its perfect 11-0 record and 9-1 louisiana now wait for bowl invitations which will go out on sunday. ? san diego, a birthday party for a venerable pigmy hippo: that's our cnbc news update for this hour sara, back over to you >> kate rodgers, thank you. federal reserve just out with its bank stress test. leslie picker with the results. >> the fed will allow banks the resume buying back stocks, with limitations, after they were prevented from doing so earlier this year.

the largest u.s. banks voluntarily suspended buybacks in march as the pandemic-induced shutdowns that royaled the economy and financial markets. the fed then said in june that all banks subjected tots stress tests were required to halt their buyback programs and cap their dividend payments. in this second round of stress tests today the banks said banks could restart share purchases expanding similar limitations already in place with dividends. these amounts are based to an formula based on the last year of the bank's income these restrictions will be in place through the first quarter of 2021 and the fed notes they may be expanded thereafter the fed chose to do an unprecedented second rounds of stress test this year due to the uncertainty surrounding the pandemic this time they ran two hint occasion, one with a severe shock and a quick recovery, another with a moderate decline

and a prolonged recovery the results of both scenarios was greater than $600 billion. and the banks maintained enough of a cushion to maintain their risk based capital requirements. >> leslie, give us a quick net on what these scenarios actually looked like. because the fed came under fire earlier this year because even the most severely adverse scenarios didn't even come close to what the market experienced in march and april they couldn't have anticipated that oil would go negative, prince i am wondering how closely these two scenarios mirror who is actually happening or could happen in the economy, and what that tells bus the health of banks in these real, realtime scenarios. >> right what's fascinating being the earlier stress test from this year in june is that the fed set the parameters for those tests

in february right before the economy basically fell off of a cliff as a result of the pandemic as you are reading through the stress test you are looking a the unemployment and gdp projections and all of these other met tricks, the market selloff that they were stress testing. you are saying wait we have already seen worse than that this year. that was the point of the second round of testing they had two separate tests to basically look at two different projections for a stressed economy. that make it so that these banks can really be tested under a much more severe environment than they had earlier this year. and by and large, the fed believe has ts tha is -- the fe that the banks held up well. that's part of the reason they decided to allow buybacks to resume it is definitely a positive reflex on the banks with that

caveat of additional certainty, hence the limitations required. >> we will talk about just that. leslie, thank you. leslie picker. for more let's bring in gerard cassidy, mike santoli still with us as well girard you are seeing the major banks up more than 2% across the board. no surprise certainly as investors are anticipating some of that capital to be return you had to shareholders. how quickly do you think banks could get started doing that >> right off the bat this is really good news, the way your colleague reported it, none of us were expecting the banks to be given permission to go back into buying their stocks we could see that in the first quarter of 2021. that's been one of the real missing points for the bank stocks is their ability to go in and buy back their stock. >> what's it worth, gerard we are seeing 2% 3,% moves here after-hours. could it be one of those longer term tail winds that gets banks up

they are still underperforming the rest of the market. >> you are right year to date, the performance has been awful for the banks however, since the first announcement of the pfizer vaccine, the bank stocks have outperformed the market almost by double. now, with this news, it's even better so it is a long tail the banks, as you know, under the new stress tests, they don't need to get prior approval for their share purchases. they have capital action plans that they will start to enact as well as their capital levels are above the required minimums. they are able to buy back their stock and also pay a dividend. i think this is going to be an ongoing measure throughout 2021, which is one of the reasons the banks should be owned as the credit recovery kicks in earnings roofer khouw comes and now we have the buybacks which were not expected. >> gerard. wells fargo said they want to

buy back stocks. it has been under the thumb of regulators because of its cross-selling scandal and trying the reform the culture at the bank i know the fed ditched the pass/fail realm, they wanted to focus on the numbers behind these tests and not calling out specific names do you think from what the fed used to call a qualitative perspective that there are any companies that still have more work to do to be able to meet those demands? >> i think they have all met them very well in the last test and in this test as you know, governor trulio their the obama administration is putting in place the new exam has the banks are using. i think what everyone has discovered is that following the financial crisis, the recapitalization of the industry, the annual stress tests have worked very effectively, and as we have seen in this downturn, which was dramatic, they have gotten through it very effectively. >> mike, your thoughts as we see

these banks after hours now surging more than 3% a piece clearly this was weighing on them. >> i think for sure investors did not bank on being able to did this a net positive the other broader takeaway is that this is another way that the impact, certainly in the corporate sector and consumer finances in general of the pandemic of the shutdown of the downturn was not as severe as many braced for going into the third quarter and the fourth quarter. you know, we have this sort of cushion out there that perhaps we didn't think we were going to have it shows that the credit losses are not expected to really worsen from here arguably, one of the bull cases for banks next year, too, is maybe they are going to have proven to overreserve and they can release those and that can go into investment and buybacks as well. >> when you talk to a lot of the executives privately, they won't say it publicly because of all

the public queching they did after the first round of tress tests, they are going to take pride in the fact they don't need another economic rescue themselves gerard thank you for your perspective today. mike is going to stick around as well. we will talk about nike, where shares are popping after a big earnings beat. coming up, we will ask an analyst whether this hot stock will keep running higher. after the bre-- as we head o break, another check on tesla. we'll be right back.

semiintel fell sharply today, weight on the headline that microsoft is working on its own chip microsoft out with a statement saying we are continuing to invest in our own kpamts capabilities like design manufacturing and tools and partnering with a wide range of chip providers didn't deny it, though intel closing down more than 6%

today. up next, nike shares are higher after reporting results earlier this hour. we will dig into the hours and what to do with the stock with an analyst right after this break. 3 vitamins 24 hours hydration gold bond champion your skin to all the businesses make it through 2020... thank you for going the extra mile... and for the extra pump of caramel. thank you for the good food...

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nike just out with earnings. a big beat continuing their momentum. digital sales continue to urge, up 84% the stock up more than 90% from the march lows let's bring in sam poser, susquehanna analyst. for all those thinking they were

trying to bury bad news by releasing unusually on a friday afternoon they were wrong. returned to growth in eulogyiographies, digital growth continues to explode what is driving this resurgence of nike from the two down quarters during the pandemic >> i think we saw hints of this in the earlier -- you know n the last two quarters. you know, they have been just working on doing their own business so well and moving to digital, moving to direct. that gives them a lot more control over pretty much all parts of their business. and that's showing up now both in the sales and in the margins and as was said earlier in the broadcast, in their expenses, which were well below what everybody expected. >> the question is going to be, what next? they don't put guidance out in the the release. they do it in the conference call we will see if we get those

numbers for the year ahead how do they put numbers on that where they see strength in china. but also some uncertainty in what's going none the u.s. we saw an awful retail sales report earlier this week and lockdowns in europe. >> i mean, their wholesale business is struggling for those reasons. that's really another reason to do it themselves you have to keep in mind that when nike sells one pair -- two pairs to a wholesale account and they sell it, they can sell one pair direct to consumer and make -- make the same sales, double the margin, and everything else. so it is just so much more profitable to do it themselves. >> yeah. >> you know? and that's really the story to go forward that's the story they talked about for quite some time. and with done ho there, i mean,

digital is his -- is absolutely his expertise. >> i know, he came in at the right time n january they were already a digital-first company. and they are shifting gears into high gear. what about the stock and valuation? mike santoli noting it is more expensive than it has ever been and it is getting valued next to cloud companies when it comes the valuation. is that fair what's your target >> we have a $160 price target on it. is it fair i am a sell side analyst ask a buy side analyst that question if it is going up, it is always fair they are investing in data traumatically. the data about their customers, the data about retailers, the data they use to produce goods in a timely manner all of in of that is what is dr

it and i expect what will separate them going forward. and feedback with retailers with whom we have spoken has been just that. i mean, they realize that, you know, nike, you know, is on a roll and sometimes it doesn't -- it's not completely to some of these retailers' benefit at the same time we've heard stories where some product that they have seep for next year hasn't lived up to their expectations but they don't believe that -- they believe nike is still very strong but keeping most of the product for themselves >> that's an interesting tidbit. in other words, not a lack of innovation, just that they are focusing so much on direct to consumer sam we have got to leave it there. we will see what we get this the call appreciate it. >> happy holidays. >> happy holidays. we are just getting stress test results. and hear come the buyback announcements from the big

banks. jp morgan kicking to have buyback train leslie picker. >> a big announcement and a big number here for buybacks $30 billion for jp morgan. they plan to begin share repurchase this is the first quarter of 2021 and they are going to maintain that quarterly common stock dividends of 90 spts per share for the first quarter of 2021. this is due to the greenlight of course that the fed said they could begin share repurchases given the latest stress test, the second stress test of the year the stock popping on that news, up more than 5%. clearly shareholders are excited by the prospect of share repurchases resuming guys back over to you. >> it is a monster announcement and a monster move in that stock leslie thank you. cyber security stocks also getting a pop today. the scale of a cyber attack on the u.s. government was found to be much bigger than first anticipated. i caught up thwi the acting secretary of homeland security the details when "closing bell" comes back

a grave risk to the federal government, that's what the cyber security and infrastructure security agency calls the sophisticated cyber attack on the u.s. government that was discovered this week.

experts believe the russians are behind the hacking so far it is believed the attack began as early as march and infiltrated the departments of energy, commerce, homeland security and more agencies covering thousands of employees, a vast swath of federal bureaucracy and critical functions for american citizens. earlier today i asked ken cuccinelli, the acting deputy of homeland security, when dhs first learned of the breach and how much the russians were potentially able to access >> i was briefing the hill today along with other agencies and suffok they are responsible for the government-wide response and mediation outside of the military environment and this is an ongoing investigation, both forward and backward looking, so i've not really prepared as we sit here to answer your question, i'm afraid >> so clearly not wanting to

front run other officials who are going to be briefing congress on that, but i also asked how deep into corporate america this has infiltrated he also declined to answer that, but sara, we've now learned that thousands of private sector companies in addition to the government could be targeted, and while some of these cyber attacks are a dime a dozen, what is so unique about this is how long it went on, and, of course, in the period of nine months you can access a lot of information and get on to a lot of servers >> we need -- we need to hear more he didn't give you a whole lot i get your point that he wanted to go brief them, but i think that's been a common refrain, is right, which is where is the administration and why are we not hearing this this is very serious and very widespread. >> and why it took reporters to break the news first before we heard publicly from the government. >> yeah. >> certainly lawmakers are trying to get more information as well. senator rob portman, the republican of ohio, has called for hearings early next year, but hopefully it won't be that long before we learn more.

sara >> still ahead on the show, it looks like tuesday nights at olive garden just got a whole lot more popular taylor swift name-dropping the restaurant on her new album and fans and the restaurant and the brand have taken notice in a big way. what the company's ceos had to say on t enis llhearngca about it when "closing bell" comes right back ♪ students of color typically do not have access to high quality computer science and stem education. ♪ i joined amazon because i wanted to change education and i am impatient. amazon gives me the resources to change the world at a pace that i want to change it. ♪ we provide students stem scholarships and teachers with support. ♪

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♪ ♪ tuesday night at olive garden ♪ ♪ >> well, call it the taylor swift effect taylor swift name-dropping darden restaurants' olive garden in a new track "nobody no prime" on her latest album "ever more" and the darden ceo thanking swift for the big boost in publicity and social media attention on the company's earnings call. >> when taylor swift drops our name in a song, our brand becomes very, very relevant. it's a 40 plus year-old brand that's suddenly relevant with her audience thank you, taylor swift, for dropping olive garden in her song >> i'll just say there is hardly a more culturally relevant place

to be these days than inside a taylor swift album and taylor swift song, ever more spectacular, so congratulations to olive garden. we'll just leave that there. mike, i want to hit the banks. 30 billion buyback from jpmorgan here we go there's a lot of excitement in the bank shares after hours. >> yes, and, again, largely because it was not really anticipated that they would have permission to do this. they bought back $28 billion or $29 billion in all of 2019 so they didn't say they would get it all done next year but a tremendous amount of capital that can be released through the buybacks probably going to give another little oomph to that group that won't be so dependant on the reopening story and the pace of the vaccine whereas they were kind of captive to those things as well as bond yields >> i said it earlier in the show and i'll say it again. bank executives behind closed doors say these stress tests are the reason why they were able to participate in the economic

recovery this time around and not need a rescue themselves, so it's an incredibly important exercise for them, hired thousands of peopleto do it an clearly the results speak for themselves >> yeah, and i'll just wrap it up with another positive week for stocks, guys we saw a little bit of a pullback at the close but a 1% gain for the s&p that does it for us. "fast money" begins now. i'm melissa lee. this is "fast money. tonight's trader lineup, tim seymour, karen finerman and we'll start off with big breaking news on the banks just moments ago, the fed giving the okay for buybacks, and we're already starting to get banks announcing their plans let's get straight to leslie picker with all the details. leslie >> hey, melissa. in an unprecedented second stress test this year the fed said it will allow banks buying back stocks with limitations after they were prevented from doing so earlier this year jpmorgan