game they should have thrown that game they should not have won that game >> we don't advise throwing games. >> joe, it's always lose, lose for the jets >> again, it is. speaking of, the bengals play tonight. we have to go. sorry. see you, mohamed >> thank you congrats on the win. if you're watching the markets down by about 400 points we'll see you back here tomorrow right now time for "squawk on the street." good monday morning. welcome to "squawk on the street." premarket is under some pressure as dow futures down more than 1% we kick off a busy but holiday shortened week the moderna vaccine and congressional stimulus all part of the puzzle this morning and we'll talk to the treasury secretary in just a few moments from now about those very topics jim, although we're well off the early morning lows at these

levels we'd be looking at the biggest dow drop since the end of october >> rather extraordinary because if you put yourself in a way, you might not have thought that we'd have a stimulus but we got it the buy backs for the banks that were allowed and a very big surprise for the fed after the close moved those stocks big and the earnings last week and the earnings on friday night nike really rather extraordinary showing strength among the consumer around the world. so, obviously, this strain is new strain which we don't know much about at all and as far as i'm concerned, maybe not that much more different. we're not hearing, it's just a black box. not that crazy about that making people panic david, when people panic, what do they do they sell all stocks and they sell the s&p regardless of what the new transmissionability means. >> does it matter some would view the market as fairly rich

and, therefore, people who might otherwise think differently are saying, well, what's the harm in selling now because i've had a great year and i'm looking at multiples that i didn't expect to see >> well, yeah. i think that there's a lot of, there's been a surprisingly little amount of profit taking but at the same time do we get a cross current today where we say, you know, back to the lockdown stocks and let's go back to software and work at home people aren't going back to work if this is a transmissibility office because the bosses will be afraid until we learn more. how come the uk people still have to come here versus say china. i find this uk situation is, it's deeply concerning to the market and if it weren't here, we would have a market that unlike what david just hinted of a lot of profiting christmas rally, let's stay in >> well, we'll watch the developments closely, jim.

dr. gotlieb saying this point it will not slip past the vaccines. the vaccines will have to adapt just like the flu vaccine does every couple years although prime minister johnson is going to give a press conference later today and said it has been found in denmark and australia and it's more about the policymakers' response, jim, and the degree to which they would start restricting travel at least in the eu >> when you see the stocks are down, a lot of these are so-called lockdown stocks. people don't travel so the airlines go down a lot of hope that the cruise ships would be ready to go very soon if this new strain is caught by pcr and we continue to test and the vaccine comes, then i think that we're overreacting to the down side. but i think, david, what you just said, you know what, could there have been a bigger run in the cruise ships without the

cruise ships having any money come in. we listen to phil lebeau and we see a lot of empty planes. what we end up with, frankly, a belief, too positive belief based on the number of vaccines that are getting out there i'm not seeing, you know more vaccines, it's hard to be a bull right now on the vaccines. you just don't see enough. >> what do you mean? >> i mean when you listen, do the people over the 65, does it go to teachers and restaurant workers. >> you're just talking about the distribution itself does not appear as well executed. >> chaotic, how about that and then secretary, well, dr. gotlieb talks about something you talk about the therapeutics >> we know lilly and regeneron

not being used and merck it takes time. >> i would like to rush it some good news the $900 billion joining us now treasury secretary steve mnuchin to talk about the big stimulus that is being overlooked mr. secretary, always good to talk to you. >> always good to be with you, jim. >> may be our last time. we have to take a little perspective, too this stimulus package comes at a much different time than the last stimulus bill how does it adjust to the fact that we really are in a much better world for jobs and for the economy than last time >> we're definitely in a much better position and the cares act is why we're here and the economy has continued to rebound. but as you and i have talked about before, there are still parts of the economy that are particularly hard hit. as you know, we've been working on for months additional money for those parts of the economy and we couldn't be more pleased

that we got this done in time before the end of the year the president wanted direct payments so we will be sending out next week direct deposit. i expect we'll get the money out by the beginning of next week. $2,400 for a family of four. much-needed relief just in time for the holidays we also have and extensions of the and not only are we recycling $140 billion that has been sitting there that we've been waiting for approval, but we have substantial other money, so over $325 billion targeted for small business much more direct and congress also agreed to reinstate the tax deductibility on the ppe expenses and i think, as you know, the president is particularly concerned about

restaurants and the deductibility of meal expenses for business people. we couldn't be more pleased. took us long to get here but as we said before this is about kids and jobs and vaccines >> now, earlier on our air senator toomey said, wait a second on the 600 that there are 93% of the people are employed in this country and a lot of those people are going to get $600 and whether that's fair or only to people who don't have jobs >> well, i think, as you know, the good news is this is a fast way to get money into the economy. let me emphasize people will see this money the beginning of next week it's very fast it's money that gets recirculated in the economy. so, people go out and spend this money and that helps small business and that helps getting more people back to work now, you're right. the good news is unemployment has come way down. so, i think as you know, you

know, we were worried about something like a great depression again earler i eiere year but this is now much more targeted and i expect it's needed in a short period of time and i think this will take us through the recovery and let me just say, i'm going to push back i heard your comments on vaccine distribution i think the department of defense and hhs has a fabulous plan this project warp speed that the president vested literally billions and billions of dollars on early on has really paid off and there's no difference, there's just a huge difference of where we are now versus where we were earlier in the year. >> i understand that and i think warp speed has done amazing things i'm on record saying that how do the people in the small businesses actually get this money? is it the same system as last time and what do you do about the ones that didn't make it secretary mnuchin, a lot of them didn't make it until now

>> that is unfortunate and, you know, we've said our job is not done until we get everybody back to work and that's what this is about. it is a similar distribution, as last time for the ppe. there will be additional programs also set up that are targeted let me just say in the ppp if businesses are down 25% they'll be able to get a second check. we also added employer retention tax credits. up to $10,000 per quarter per person this is a very, very big incentive for small business, as well and i expect this is going to have a much needed big impact. and in the ppp also additional money particularly for hotel and food services that have been hard hit >> mr. secretary, david faber. we have spoken in the past, of course, about back and forth about direct aid to state and municipalities this is not a part of this bill

but policiy use existing money in different ways and i think there is at least some aid going to some of these transportation authorities. can you tell us a bit more in terms of how, if you're not giving direct aid it is potentially going to at least help at least maybe stabilize some budgets a bit >> well, as you said, there's no question about that. i mean, first of all, let me just say we have a lot of money going to schools we have over $80 billion going to schools we want to make sure that kids can get back to school safely as appropriate. and that is an expense typically of the states. the money that we sent to the states last year we gave them another year to use that money and, again, that was for covid-related expenses we're spending a lot of money on vaccine and distribution so that everybody gets the vaccine free and we get it to people. there is not money to make up for revenue loss, but there is plenty of other money. let me just say, you know,

places like california are having record tax revenues because of the capital gains associated with the great market recovery >> mr. secretary, one thing that i'm trying to get a line on is some of these groups that got money that i think people are going to be concerned about. live entertainment, local newspapers and broadcasters. i assume i'm not a beneficiary of that. always worth asking. airline payrolls now, your interest had always been small business and business interruption insurance i don't understand how these particular live entertainment and local newspaper, how did that get in? >> well, jim, as you know and any time getting a deal over the finish line a lot of compromise that is needed so, you know, this overall bill i think is fabulous. the airlines there was broad,

broad bipartisan support for airlines and i think you know if we hadn't given money before and give additional money, we'd have no airline industry. we really need to keep the airlines available so when the economy bounces back and people can travel, they're there. airline workers have been hit at no fault of their own. there is some money for what's called small venues. again, these venues have been shut down due to no fault of their own. but as you said, this is a large bill and has a little bit of everything in it for everybody >> for renters, can you discuss how this is going to keep people in apartments. one in four homes and one in five due rent. how is it you calculate what rent is and how do people apply for this aid >> jim, as you know, lots of things the president and i would have done much earlier when literally we had hundreds of billions of dollars we couldn't

spend and rent was one of them the president did put together a moratorium to help those who were especially hard hit but this is a much better program. this is now rental assistance. it will be channeled through the states the states are much better at executing this than having another federal program. and it will be much-needed relief for, again, very targeted to the people who really, really need it. >> secretary, jim and i spent a lot of time and carl talking about the fate of restaurants. and i mean how important they are to our overall economy some numbers are mind boggling and so many people employed or employed in adjunct industries what do you tell the small business owner what this bill is going to do for them in terms of keeping the doors open particularly if they're reliant only on outdoor dining right now during cold months >> well, you're right. people don't realize how big the

restaurant industry really is as an employer and it tends to be very small businesses, but very large employment unfortunately, a lot of restaurants had to shut down they just couldn't make it there were people who were waiting for the second ppp check and just couldn't last long enough but the good news is for those businesses that did last, this is going to be the needed relief to get them through next year, through the vaccine. and as you said, we have areas of the country where you have to eat outdoors we have areas of the country where you can't even eat outdoors i must say, you know, listening to the medical professionals, i do think outdoor dining with proper social distancing and people wearing masks to and from the restaurants is something that i think in many places people can do. but you're right the restaurant industry is particularly hard hit. and, again, congress decided to restore the deductibility so

that's of both meals, as well as the expenses that restaurants had. so, that's additional tax relief to those small businesses. >> mr. secretary, this restaurant money was something you cared about tremendously and felt that a certain point maybe the fed's money could go back to you and congress did you get any resolution on what it meant for small business >> we did, jim let me just say, you know, the treasury and the fed really worked together in an incredible way through this crisis. and if you go back to march when the entire economy was shut down both the fed on monetary policy and the fed working together with the treasury on the 13 facilities were instrumental in opening up the lending markets that were completely shut down i think you may recall the initial facilities were opened by fed chair powell and me using money that we had in the

exchange stabilization fund. that was a, kind of a way we were able to do it quickly and those funds now are very clear in law that the original facilities can still be used in an emergency i think, you know, congress entrusted me with $500 billion it was an extraordinary responsibility many of the democrats at the time referred to this as my slush fund and, as you know, the announcement of those facilities opened up the markets. so, we took $250 billion, we used it to announce additional fed facilities we made direct airline loans but the majority of the money we never spent. matter of fact, of all the fed facilities we did about $25 billion in gross lending so, this really worked what happened was the mere announcement unlocked the private markets, the private markets took over. there was $429 billion that i

had that, you know, i prudently wanted to recycle for other things and that's what we agreed to do and to areas of the economy that need it. small businesses, kids, schools and other important things and the fed still has very significant allowable activities with the treasury going forward. but some of the super emergency facilities would have to go back to congress. by the way, this is no different than after the financial crisis in dodd frank the bill used to be able to lend directly to any one company and congress said, no, we want you to come back if you need that in the future. i think this was a very good compromise and was key to unlocking the deal >> let me ask you in our world $600 to individuals. i have robinhood on tonight. they would tell you a massive amount of that money went to them i mean there's no real

restrictions on the $600 a lot of younger people who invested it. nothing wrong with that. but should it have been more targeted to certain, let's say food i mean, like food stamps how do you feel about the unintended consequences of people investing >> jim, first let me just say there is money for nutrition, food, as you said and agriculture support in here and money for child care even money for broadband to make sure kids have access to broadband and money in medical relief for more programs and the effective part of the direct payments is they get into the economy very quickly as you said, you can't target them but the fact that we can get this much money into the economy in one week, let me tell you, i spoke to many ceos who saw their business kind of the minute the money came into the bank account they saw their business increase and if some people who had extra

money were fortunate enough to invest in the stock market at 18 or 20,000 they're doing okay today. >> there was a hack from solar winds and i'm trying to figure out how bad it really is hacked in communications and at the same time, i'm not sure how smart the russians are or did some of these companies including solar winds just not have the right software and it could have been stopped? >> jim, i'm going to be a little bit careful in what i say because, obviously, i have access to tinformation we're no yet ready to disclose that is classified information but let me just say i've been very focused for the last four years on cyber issues. this has been a big focus of the administration and within treasury, we have a large group that is focused for cyber. actually led by a former general

and we have much-needed resources in working and protecting the financial industry as it relates to this program, as we've disclosed, the treasury as a result of some third-party software and, again, this is the unclassified systems at this point, we do not see any break in to our classified systems. our unclassified systems did have some access i will say the good news is there has been no damage nor have we seen any large amounts of information displaced i think as you know in this day and age where everything is connected, the issue of cyber security is very, very important. and this is something that we will be continued to be focused on we are working with the national security council, working with

the intel agencies and we're completely on top of this. >> any communications with soon to be secretary treasury janet yellen. >> i have spoken to her several times, as you be we worked very closely when she was fed chair for the first year and i know her very well and we had that relationship. we are cooperating with the transition team and i've had several direct sessions with her to tell her about many of the treasury priorities and what needs to be done >> mr. secretary, we've always enjoyed working with you certainly, of course, happy birthday that does matter >> thank you >> and thank you for all of your informing, i'll say enlightening because it's always been terrific to learn more about what you're doing for small business and what you're doing for so many people who lost their jobs with that, i wish you the best of luck, sir >> thank you it was a great birthday present for me to have congress pass

this today >> carl, back to you >> all right, guys a lot to get to this morning, including some upgrades of walmart and microsoft will talk some bank buy backs and tesla, s&p and we'll see if it gets bought afurehas tus ve trimmed their losses by more than half back in a moment this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

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big piece of the market discussion this morning is about the new variant strain in the uk as 20 million british citizens are in tier four lock down and having an effect on the hotels clesirdging names which now inud a bnb at 153. we're back in a moment - i sent your new prescription to the pharmacy.

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all right. let's get to mad dash as we count you down two minutes and the market is looking to open lower. microsoft, i'm not sure how that is looking this morning. >> this is the kind of stock that is the key to the market, david. upgrade from city. very well thought of which is about the notion of azure start doing much better and favorable numbers where it counts but the reason i like this call is this has been a stallward that is not o outrageously overvalued and if you see this stock turn, david, after an obviously sloppy opening what you're going to say is the tech names that led us out of the, what was a very serious point in the economy are

going to do it again and you shouldn't throw out there stocks look at how these companies that do so well when we're locked down have performed and, obviously, we shutter when we hear lockdown but microsoft was a big winner back then >> i shutter when i hear you say lockdown and it seems hard to imagine is the vaccine is getting put in people's arms right now. >> as anyone said, it's almost, you have to be careful about negligence but has anyone said that perhaps this strain in the uk, david, is not as transmittible and just something wrong with the uk or perhaps what, well, we have to try to figure it out. can i give it to you from a further distance and does it go six feet instead of 12 feet. >> not sure what was written >> should we sell?

>> that's what's happening to me today. >> the european medical agency which just gave okay to the pfizer vaccine says no evidence to suggest that the vaccine won't work against the new variant. but to your point, very little of this higher transmissibility has been put on paper. we'll wait to see if we get that southwestern energy doing the honors at the nasdaq it's open door technology. a digital mraplatform for real estate and a final bounce in the futures right before the bell. >> i have to tell you that when i saw them go down big, i was trying to figure out how you can jive the $900 billion package the secretary talked about and incredible numbers for the banks and buybacks and regionals and nationals and then nike such a great quarter. saying so much good and then i got to tell you, carl, i mean, i remember that there were so many stocks that did well in a period where things were terrible

and what i come back to is perhaps something could be related to tesla tesla is big part of the s&p the s&p can actually be moved by that let's not forget, if tesla turns around, again, the s&p could get a little oomph i'm not willing to give up on this market because of a 70% number in the uk where the uk has been particularly, let's just say, absent in terms of the way it handled this. we can all take every single cue we want from the uk or take the cue from some of the companies that are going to be doing quite well here. >> to uryour point about tesla m now 1.6% of the s&p. $150 billion changes hands on friday and replaces the s&p 100. and we're going to talk to phil lebeau in a couple moments on how it will aifect the index overall. >> look, the oil stocks have been bellwethers when the oil

went up that was the signal to get out of the traditional software and tech names and go into the industrials interesting to see the decline in the airlines and decline in oil may mean that that trade is over and we will have to revert to what we were buying before which is the stay-at-home stocks and the zooms. >> yeah, although unclear exactly how long that will last. but your point is an important one. energy did very, very well but long term it's not what a lot of funds want to own it's not necessarily going to be a core part of a portfolio for a long period of time. as we pointed out many times given the mandates that apply to more and more pools of assets becomes even more difficult to find a shareholder base for some of these names or at least an expanding shareholder base >> let's share from phil because i hope phil has good news from the airlines but i don't know. and then in terms of tesla, i think a lot of good things happen with tesla.

maybe phil has a contrary view and knows more than i do >> i think you might be right. >> carl, i'm sorry to interrupt you there. in response to what jim was saying in terms of, you know, with tesla and whether there are good things coming no shortage of people out there who believe that there are a number of catalysts in the future when it comes to tesla. look at their annual sales we'll hear about those the first couple days of january for the year, current year and the projection is 500,000 vehicles look, if they come in at $490,000, do i think the stock is going to sell-off no but i do find this interesting, jim. we had our data team leading up to this day with the inclusion in the s&p 500 and we asked the data team how volatile has tesla stock been in the last year in terms of its daily volatility, the price change relative to everybody else in the s&p 500. look at this far more volatile.

5.69%. in fact, only 20 stocks in the s&p 500 that were more volatile than tesla average volatility 3.37% one other thing, guys, we heard from elon musk this morning. he's not doing interviews and talking about being included in the s&p 500 and via twitter sent out a tweet i think about 45 minutes ago. this is rather humble for elon thanks to everyone who worked so hard to make tesla successful, my heart goes out to you as we watch tesla people saying, well, are we going to hear more from elon. i don't think we hear much from him for a while. >> phil, following up on what you said, you know the big movers in the s&p have always been tech. it's always been faang this is the first nontraditional tech stock that could really move this market, couldn't it? >> it could. it could and, look, you listen to gene and luke and he believes more

catalysts on the tech side whether you're looking at software innovation and some things they're doing away from the purely automotive aspects of tesla. and there are many people who agree with that. having said that, jim. there is a nice counterargument out there about the increased competition that is coming volkswagen is doing well in europe does that continue because it is slowing down tesla sales, at least within the last quarter or so in europe what happens in china? there's greater competition there. and then, of course, we know that here in the united states, i mean, there really hasn't been any competition. that's going to change over the next two or three years. >> phil, on the airlines, we just talked to the treasury secretary about that payroll reimbursement going to the industry we still hear from people who say over ten years as an industry they spent nine tenths of their free cash flow on buy backs. but at this moment, it's necessary. >> it is necessary what is interesting, carl, is

this i already heard from people this morning who said, this is not fair the airlines got a bailout. this is not a bailout. this is money that is strictly going towards payroll support. more than 32,000 employees a lot of them flight attendants but also some pilots and others within airlines who were furloughed starting after october 31st so what happened those people who were furloughed not brought back and paid through their airlines through march 31st the more interesting question is what happens come march 31st do you think there is enough work or business so to speak that the airlines keep these people employed? or do the airlines have to sit there and say, now, look, we're still really low on terms of passengers do we bite the bullet and say we're going to keep these people paid we're going to pay for these people to stay on the payroll even though we may not have the business there that is going to be the next question that comes in march >> phil, i hesitate to do this

i will try to put this elon musk tweeted something that was, i guess, pro bitcoin this weekend. talking to him and it was a michael sailor comment an executive saying that he should convert the tesla sheet from u.s. dollar to bitcoin this would be rather revolutionary. are people talking about this? >> i haven't heard a lot of discussion about this. this is one of those elon retweets that people may look at and say, come on, does he really want to do this? i mean, you guys have talked about bitcoin and you're far more versed in the challenges that surround bitcoin as it works its way into the economy then i am. but i think it would beterestin. sometimes elon retweets stuff and you never hear about it, again. other times he retweets it and it takes off

>> phil, a lot on your beat, man. we'll talk to you soon good to see you, phil lebeau joining us this morning. jim, nike all-time high. goldman year and a half high p jpmorgan a year and a half high. >> very interesting nike when it reported a lot of people felt because it reported friday evening perhaps they wanted to hide something that was completely wrong. this is mark parker. but i think what is interesting is the stock went up $4 and then came down only a couple bucks and then when people heard the conference call they recognized once again direct to consumer is so important with nike goldmine is related to the buy back and the surprise buy back by the treasury. i mean, by the fed i have to tell you jpmorgan was up six on friday we have to watch those david, you know when you get stocks that are up this big when the market is down, they tend to go up even higher if the market turned >> all the banks are having a

very good session so far eight minutes in right now as you point out. jpmorgan that announced another $30 billion buyback and reauthorization. and a new $30 billion. they're not buying it all back in one day, but they are, obviously, going to be aggressively buying back their stock at least that much of it over time. but all of them are up bank of america is up if not more goldman sachs and morgan stanley. that's just a broad response, i guess, to the stimulus or the relief package in some way and what else, jim >> well, i mean, let's say signal from the fed that these banks really are much better capitalized. what i want to see, how do these regionals that have not come back at all will they benefit from it and, carl, when we see the banks, it's a huge chunk of the market they've been terrible. again, if it had not been for this strain in britain to have new leadership in this market, which would be the banks, which would say, hey, you know what, diversified portfolio does quite well here and this group, like a

morgan stanley that we have forever thought was undervalued finally getting its due. when i see these i say to myself, here's a sector of the market that is left behind and maybe ready to advance and $600 from people coming in like a morgan stanley and change complexion of more investors >> speaking of morgan stanley, guys, mike wilson's note this morning, jim, saying financials may be the next momentum pile on and it will likely pay to be early here his point largely is that it's got to get out of the vice grip of that ten-year yield >> but it had been pretty jet-like and to see david kind of a win for the banks and win for the jets i don't know is it synonymous. >> meaning it happens once in a season >> exactly >> a win's a win and as a long time and long suffering that goes with being a jets fan, enough to see a win. enough with this oh, they're not

going to get trevor lawrence you have to sometimes just win if we got trevor lawrence he will be terrible and when he goes to another team, he will be amazing. >> a w is a w. >> we can't win for losing maybe it is short lived. i do, you mentioned morgan stanley and the fact that it has had a rerating in the stock market and sort of diverged from the rest of the group because it is much more of an asset manager than anything else at this point and it's up 31% this year. its market value is very close to that of citi's, jim you know, it's far, far ahead of its one-time competitor goldman sachs where we always watch the two of them very closely >> it's finally happened james gorman has been saying over and over again, carl, that the fact that his bank so to speak or brokerage is lumped up in with the others is untrue just such a different complexion jpmorgan is down 11% this year you have citi down

substantially. when i come back and say, it worked he's broken free of the group. and that matters tremendously because a lot of people feel you can never change your stripes. the stripes were changed here. >> it took a while, but it did the e-trade deal helped in ways they could not have imagined when they signed that deal given as we said the submergence of the new group of investors >> citi down 23. >> 24% for the year. yeah and, of course, wells fargo still down 45% for the year. >> but charlie is starting to do amazing things i mean, in terms of selling off businesses and cleaning up the, i'd say the culture there. but, david, let's go back to what the treasury secretary said >> okay. >> no limit on what you can do with the 600 i have robinhood -- >> the $600 per people people earning $75,000 or less should make that point >> a lot of these people have jobs and this is, now, look, many people are poor

the $600 puts food on the table but also many people, david, who will open accounts at robinhood and participate in the stock market in a way, you were reading interesting stocks during the break >> i went back to my old internet, i actually called it internet tales oh, robinhood, he's coming on with you later >> i think there's an issue of suitability when you hear the stocks that people really got gaffed on, david >> because of oour recent conversations about a level of speculation in the market that we think in some ways is reminiscent, though not completely identical at all. but reminiscent of what we saw in the late '90s and i went back to some of my files which i keep under lock and key here at cnbc and some of the names down 90 plus percent during that period in let's call it 2000 when things started to go south amazing.

24/7 media, accrue, software, adam.com, ad star, allscripts. well amazon. amazon down 83% down top to bottom so there were opportunities, as well because everything got thrown out. some incredible names. we talk about amazon's move up during the mid, well, during the '90s but then it did crash, also which is something auto web, remember that one, athome these are just the as. i can go on and on and on. e-stamp. anybody remember e-stamp emusic emerge remember egghead i only get up to the ls here i don't know what happened i only have three pages. >> you should put that list on cnbc.com >> it's an old list, but it is interesting and we'll go back and read some more names >> carl, one thing that i have been hearing behind the scenes

we asked the treasury secretary about the solarwinds hack and he said the vital stuff wasn't in but i'm hearing little bit from palo alto but from some of these that the hack was, let's say, on an oceanliner it spread right through the oegceanliner. had there been the traditional cloud passports, this might have been stopped at the first bulk head i want to know where we were in terms of our, are we up to date because i know that these cloud-based security companies would say, we would have caught this this is old legacy and that's what the russians were targeting. >> yeah, interesting palo alto, by the way, key goes to overweight 391 from 350 i did see fireeye over the weekend, jim said 50 companies and organizations were genuinely impacted by the hack of government networks. but, yeah, that's a great point.

as we see names like okta. >> there are passports on the web and you have to look at it more like the way europe was in the '30s where you had to show a passport when you went from country to country to country and, david, the web can be divided with bulkheads but not if you have on premsis old software >> passwords solarwinds123 we try to be alert and the russians may have been in a lot of people's networks including the governments and companies now they say since perhaps long before the spring. >> solarwinds, should they have added, you know you add an exclamation point and at sign. say you want to get at nfl.com >> you have to do extra.

add some extra signs >> the new hbo max maybe you have to have letters and numbers. >> i can't remember half my passwords. guys we never got to m&a no enormous deals but certainly some deals maybe we'll get a chance to talk about them before we head to break do a quick bond report and how treasuries are fairing to begin this week. yields are mostly lower. that is in reaction, as well, to a new strain of the coronavirus resulting in lockdowns in the uk and travel restrictions over and from that country. on track for its biggest daily drop in two weeks. yes, it's negative 0.584%. don't forget how many trillions of dollars are trading with negative yields right now. uk pound, as well, you can see it there against the dollar. we'll be right back.

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15th anniversary of "squawk on the street". late mark haines who kicked off the show in 2005 >> live from the financial capital of the world in heart of lower manhattan this is "squawk on the street" it's 9:00 a.m. on the east coast 6:00 on the west, 2:00 p.m. in london i don't know what it is in singapore good morning i'm mark haynes here we are at the economic knic -- new york stock exchange. we'll take you into the heart of the game >> kind of hard to overstate what a sea change that was for the "squawk" franchise but man mark energy that is awfully hard to recreate. >> i was down there one day, and, you know, mark would be unbelievably during the break ask about your kids.

you come back and mark would say you made some comments about real estate that really upset people it's like holy cow that's mark. no free pass david, i didn't see it coming. i always thought the next question is about my daughter's field hockey game. no your next question is how could you have said something so outrageous >> he can be very tough, mr. haynes and we started the old "squawk box" let's not forget how long this franchise has been around. we were there in '95 when we went "squawk box" that was started off by mark haines that very morning i remember that well i can't believe, 15 years. it's all a blur in terms of time if you told me it was five years ago i would be yeah that sounds right. >> amazing >> he was talking about too many things that we needed to know,

and i remember saying, pure incident this, that, why don't you come on. i said no i'm fat and bald he said no that's exactly what we need. i lost 35 pounds since then. >> i have a picture i'll share in a minute, actually. >> mark didn't like a lot of those. >> all right i was going through stuff lately brian stiehl has been going through his cabinet. i decided to go through my desk. i haven't been in nurew jersey. this was the old "squawk box," jim when you were a hedge fund manager you just referenced. there we are more louie c. kay back then. >> such a good reference >> that's all right. there's mark, of course. that was the business council. it does show -- there's a lot of

continuity here still, carl, with all three of us, of course. still going strong >> yep well when we eventually go back we walk past a plaque of mark every day. hopefully his memory infuses what we do here every day. we'll be back in a moment. >> time to turn to my long time colleague david faber for the faber report he has his eye on cablevision. i might add a well rested looking david faber. good morning >> 7:00. 7:00 imagine that >> it was great. that's why doctors recommend tylenol®. it won't raise blood pressure the way that advil® aleve or motrin® sometimes can. for trusted relief, trust tylenol®.

only about one out of ten nasdaq 100 components are in green but centered around either vaccine with moderna and walgreens or some stay-at-home themes like zoom video, docu sign we're back in a moment e yourselo the mirror. and know you're not alone because this. come on

jessie one more. is the reflection of an unstoppable community in the mirror.

let's get to jim and see what's on "mad" tonight. >> four industries

then a big one, vlad teney will talk about suitability, excitement about how they might become public. most importantly this new generation of younger people love to invest, carl they watch our show and they love to invest >> all right hopefully we can help them do it, jim. see you tonight. "mad money" with jim cramer. welcome to another hour of "squawk on the street" i'm carl quintanilla still worst day since about november 18. watching the moderna vaccine, the bank buy backs and, of course, that congressional stimulus package still waiting for some texts but we talked about it with the treasury secretary last hour. >> we're definitely in a much better position. there's no question the first bill, the c.a.r.e.s. act is the reason why we're here today and the economy has continued to rebound.

but as you and i have talked about before, there are still parts of the economy that are particularly hard-hit. as you know we've been working on for months additional money for those parts of the economy, and we couldn't be more pleased that we got this done in time, before the end of the year the president wanted direct payments, so we will be sending out next week direct deposit i expect we'll get the money out by the beginning of next week. $2400 for a family of four much needed relief just in time for the holidays. >> that is the treasury secretary who turns 58 today, david. we talked about direct lending, fed emergency lending, his meetings with yellen, which he said several >> he did talk about transition as well and discussed a number of meetings with yellen who he was familiar with given she was fed chair during his first year as treasury secretary. he did say at the beginning that the c.a.r.e.s. act is why we're

here and the economy is continue to rub but the rebound is not as strong as some would like and has weakened in last few months if you look at claims and employment numbers and so there's a hope that this is going to come in here at least and be of help to the broader economy and certainly to those people, many of whom who are still suffering as a result of the pandemic which is still, unfortunately, raging throughout the country. >> absolutely. $900 billion is quite a bit of money. not as much as what we saw was initially proposed that's why you have a number of economists and strategists coming out and saying perhaps it's still not enough to continue to propel this economic recovery into next year, which is key even though we're selling off we have major averages under pressure today, still pretty priced for perfection. pretty expensive the russell 2000 which i realize is down 1% today, those small

caps that re-opening and recovery trade is, let's see, 34% above its 200 day moving average which is the highest on record so, yes, there's a lot of reasons why we see a buoyance within the market but a lot has to go right including the stimulus money let's get more on that stimulus package. >> reporter: morgan, the final legislative text of this deal expected to be over 1,000 pages long we still have not seen it yet but the house is scheduled to vote on it today along with a $1.4 trillion government funding bill as you guys have been talking about, this deal has been months in the making but could still take a few more days to get to the president's desk already we're hearing republicans and democrats start talking about what comes next. we heard the treasury secretary discussing the $600 direct payment that was a top priority

of the president that could go out next week. on the house floor, nancy pelosi was criticizing a lack of state and local aid in this deal, democrats had dropped that demand as part of a compromise with republicans who then gave up their push for liability protections. but pelosi promised the incoming biden mr. straugs would seek to send more relief >> it's the first step we'll need to do more. get more virus assistance to crush the virus but also more money to buy more vaccine. >> reporter: the government is now scheduled to run out of money at midnight tonight so guys alongside everything else the house is also expected to pass a one week top gap funding measure to make sure that this massive package of bills has time to clear the senate and be signed by fortunate. back over to you >> thank you

shipments of the nation's second covid-19 vaccine are under way frank collins is in memphis. he has a look at the logistics behind the roll out of moderna's vaccine. frank. >> reporter: good morning to you, david nearly 3300 sites all around the u.s. will get 6 million doses of moderna's vaccine this week in the first phase of shipping. those vaccines arrived at memphis at fedex main hub and ups main hub those shipments will be delivered before 10:00 a.m. local time moderna is less sensitive to temperature, containers weigh less and much more of them fedex and ups will also deliver the pfizer vaccine it's about speed and security. >> we're sorting these in an isolated location so that we can maintain that comprehensive visibility and the

prioritization our team members have been educated there's been training and extensive amount of communication around both communications and their differences. >> reporter: with a storm forecast to hit the midwest and east this week carriers are monitoring the weather they are taking extra measures to deliver vaccines last week. they ship with a hi-tech label that move those boxes faster and give updates on temperature and location overlapping weather maps on top of that to have contingenc contingencies and we have double and triple redunndancies. >> reporter: as many as 3.5 million packages will be a day delayed or possibly more during christmas week carl, back over to you >> frank, good set up this

morning. appreciate that. joining us this morning, steven edwards, and dr. allan kaplan. to talk about these logistics rollout. gentlemen thank you for time good to see you both >> glad to be here >> steven, pretty remarkable weekend. you had the ceo, a general, u.s. general apologized for what he said was a slower than expected roll out of at least the pfizer vaccine. has it felt that way where you are? >> well, we're anticipating this we understand it's coming today with moderna, 7,000 coming to care for our 12,000 plus employees. we're excited for it it will arrive in time for our first dosing this evening at 5:00 p.m the christmas star is a symbolism. 100 years.

never as bright. a powerful symbol for our staff. >> dr. kaplan, i'll ask you the same question. how has it felt on the receiving end and is there a sense that the moderna vaccine, it's easier refrigeration standards will make that easier >> we were fortunate we received 3800 pfizer vaccines last week. on monday. by end of today we'll have vaccinated 1700 employees. we're ramped up now to do 300 vaccinations today starting tomorrow we're looking forward to get that moderna supply. >>steven, one of the conversations he we've been having on our air including with other executives from hospital systems around the country is the fact that there are a number of health care workers out there, not to mention the general public who don't necessarily want to get the vaccine or one of these vaccines

at least to start. what your seeing within your own employee ranks and if you do tart to administer the vaccine, how are people reacting to it physically >> yeah. great question so we've been able to look at the analysis, the sign up for our employee, break it down by demographics, what you might expect our rural hospitals have lower percent of interest. higher education level, more professionalism, our physicians, for example are 95% signed up. we're seeing some people that have little less understanding of science with more reluctance. that's fine. we want our front line caregivers to get it first and work its way down to front line workers. so, we think this number will grow so there are some that are careful and i under that some younger female employees want to hear more about the safety data, fertility issues.

but they are watching that but we already have about three quarters of our slots filled and as the day goes on we'll have more slots filled we have 5,000 signed up and another, we expect another 1500 to sign up by the end of the week >> dr. kaplan, we don't want to forget we have this pandemic raging throughout the country. your state has been hard-hit things are looking better. can you give us an update? >> you're correct. we were hit hard in fall peak and mostly in november we're starting to come down off the november peak but having said that, we have twice as many hospital days than we did last spring things are looking better but we're still on guard still have to get through the holiday season and we see these peaks come and go. things are better but we're prepared should they start to peak again >> steven, one last question on

testing. "journal" had a piece over the weekend about cvs corporate program where they can test employees at broader scale, hopefully get more people back into the office. is there an equivalent for hospital structure at this point? >> well the great thing for us we have multiple testing platforms, rapid test. our employees don't have to get a physician order. they just get a come through drive through process. we tested 3,000 employees at this point and i know employees have been tested multiple times. it makes us feel safer and that rapid availability of testing has made it safer for our staff. >> clearly one of the most important stories in country how this gets rolled out steven, dr. kaplan, thanks for keeping us apprised. look forward to talk towing again. thanks we got a big show still

ahead on "squawk on the street" including a closer look at the banks and jp morgan $30 billion share buy back program we'll be back after this break stay with us (music) anncr: give customers access to precisely what they want,

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in fact they are rallying. jp morgan authorizing a $30 billion buy whack program. tom, let's tart there on the buy backs. the big banks getting the permission to buy back a lot of potential stock. i would assume it's a positive will we see a trend here >> it's a very big positive. remember, the fed didn't do one stress test this year, they did two. they came back and did even a more severe one than the severe one they had earlier in the year we think it's really bullish it's happened six months sooner than we expected it represents the fact that the banking industry has enough capital to get through this crisis and our math suggests and if our models are right many banks can buy back 20% of their market cap at today's prices through the end of 2022. we think it's very significant >> that would have a significant impact, of course, on earnings per share numbers. do you think the big banks are better positioned than southeast mid-size, regionals or smaller

banks in terms of doing that >> absolutely. as a matter of fact, we think the earnings per share growth from the biggest banks will be about twice as fast as the smaller banks. looking into 2021 and 2022 and just about every valuation figure we look at has, especially on a relative basis still has the banks about 20% to 25% cheaper than i think they ought to be. we're positive i think a year from now these stocks will be higher than they are today. >> we were talk about bank buy back, stock buy back at least for the largest bank on the other hand you got reports out there that there are tight lending conditions for small businesses particularly in those industries that continue to be hardest hit by covid i realize there's a lot of nuance and it's not an apple to oranges comparison but when we talk about income in equality there continues to be this divergence in terms of what the

banks mean on wall street versus what the banks mean on main street >> on friday the fed came out with two pieces of information one was the stre test. the other was weekly ha data the ha data said the fourth quarter long growth will be the weakest since the end of 2009. there isn't a lot of loan growth in economy right now but when you look at it, morgan, you'll see bank lending to consumers is actually the bright spot the banks do have enough capital to make those loans. commercial businesses haven't been asking for it and because a lot of government the us the that's out there, the favorable bond market that's been helping and, frankly, i think businesses have been pulling back due to the uncertainty. so that's the one piece for the overall industry that hasn't moved yet, but i think the banks have been working very hard to make sure that they have the capacity to lend for the loans

that meet the criteria in industry >> tom, you know, for last few months the bull case has been in three parts. buy backs, over reserve and curve steepens i wonder how that last piece gets filled when expectations for 2021 are so tepid? >> our view is a ten year closer to 1% is a lot better than it was earlier in year. when we didn't know if it would be able to get there our view is that there is a head wind from margin ain't rates that gets you into the back half of next year i wouldn't say right now the banking industry is a revenue growth story what will happen is net charge offs and nonperforming assets their peaks won't be as high as we previously thought they were going to be so that's why when you look at our took selection we're looking at citigroup, wells fargo, capital one, for example, which are big banks

that have a chance to improve a lot on the credit side as we go forward. we think that will drive a lot of their earnings momentum we don't think it becomes more of a revenue growth story until the back half of next year >> is that enough to power stocks i just wonder because this does seem tube market where revenue growth as you know, tom is what excites investors. >> i do. the reason being is where we start. first of all i think investors got so pessimistic on this that the worst case scenario was baked in remember in the second quarter when there was talk about restricting dividend 99% of the industry that we follow in our indices are in dividend in third quarter. we're getting the the government stimulus that's necessary. i think there's enough, what we'll do -- the first step is to get a return to standard profitability which hasn't happened yet and that's going to drive a lot of earnings per share growth 20% earnings per share growth going into 2022 from 2021.

that will drive that then the second piece of the story, i think, will be a revenue growth story which hopefully will layer in at the end of next year and then we also got consolidation which i think already has started and that's a big story for this industry >> obviously mid-size and regional level when he a deal last week a fairly sizable deal. >> as a matter of fact, my firm has done three of the top four bank mergers this year next year will be a good year for consolidation. pnc spend $11 billion toby ddba, wig mid-western bank deal. the industry was consolidating after covid it will go back to it again what's interesting this time, david, i think it will be the bigger banks involved which wasn't the case pre-covid. >> interesting the bigger banks will be involved not with each other but

doing some of these deals. >> let me tell you why >> we have a little bit of time so make it quick >> if paypal were a bank it would be the second largest bank in america due to market cap the banking industry is looking to get scale and making sure some of this permanent change in digital delivery stays in banking industry and that's what these mergers are all about and which is why we'll see more. >> all right we'll stay tuned and turn to you as we always do, tom thank you. >> happy holidays. >> that puts it in context now time for our etf spotlight ticker xly under some pressure today. still up 25% for the year. amazon a big reason for those gains up more than 70% in 2020 check out shares of nike those are bucking today's downward trend the dow component reporting better than expected sales and profit and raising full year sales forecast that stock is up more than 40%

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welcome back lockheed martin is buying aero jet rocketdyne in a deal i'm told it came together prefecture quickly. driving force for this latest deal in the defense sector, hypersonic technology. lockheed already has a big head start in this space with a billion in revenue last year, more than a billion this year. aero jet is a key manufacturing in terms of propulsion, rocket engines. this is also bringing more to the supply chain inhouse for lockheed and expands space portfolio as well including exposure to nasa's giant mega rocket slx for which aero jet rocketdyne makes those rockets. so the new ceo who took the helm last summer made no secret of his inquisitiveness.

experts and analysts that i've cell phone are arguing this is really defensive after one of the other key few rocket engine makers within the sector or billat atk was snapped us by northrup grumman aero jet rocketdyne really rocketing higher, up 22% right now. but also some other names in sector northrup grumman and raytheon technologies are under pressure because aero jet rocketdyn search akey supplier for a number of their projects so what could costs look like with lockheed thiem in terms of those supply chains for aero jet and also we're seeing some pressure in some of the other names, some of the small and mid

cap names that have been speculated to be potential acquisition targets for the likes of lockheed. i know david you've been covering this as much as i have. at a time when we were basically expecting that there really could be no more consolidation, no more consolidation allowed from a regulatory standpoint and in defense and space we had a lot of mega deals, mergers and so this is the latest in this m and a spread >> vertical integration. to that point do we know if the dod, department of defense is happy with this, or there a concern. >> we don't know. that's one of the key questions. certainly lockheed is already positioning this as something good for the american taxpayer, going to bring vertical integration, more of the supply chain inhouse. we heard some of those similar arguments with some of these other deals like, for example,

raytheon and the aerospace unit of united technologies, some of these other deals we've seen take place in the last couple of years. but, again, i think this really speaks to what lockheed martin under a new ceo is going to look like and probably the biggest question is does it line up with a new administration coming into office with what the defense department has in mind >> these hypersonic weapons, our enemy, can we call them that, are also developing them >> our adversaries, most notably china and russia >> do we know when they will be on the battlefield or available? >> well, they are already under development amount places like lockheed martin right now and aero jet you have these development deals in the works so i think again that's also one of the arguments here that it's defensive in terms of being able to bring that propulsion capability in house means a

production ramp and ability to get those weapons to the battlefield can happen much more quickly. carl >> all right meantime, guys, we did get back that early morning bounce but got back to levels -- worst day since october 28th financials have gone red vix getting back to 28 or at least close. we'll take a break and be back in a minute. and #1 for eczema symptom relief* gold bond champion your skin

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. welcome back, everybody. i'm sue herera here's your cnbc covid update. the cdc is recommending the next people to get vaccinated be front line workers and those over teenage of 75 those two groups include about 30 million americans tennessee's governor banning gatherings of more than ten people in indoor public spaces in response to the latest rise in new covid-19 infections he's also asking employers to allow their workers to work from home for the next 30 days.

in england a new tier covid-19 restrictions has been created and implemented to battle a new more contagious variant of the coronavirus britain's health minute stare said the strain is out of control in london and southeastern england many european countries have restricted travel to and from britain as a result of the new vascular yant. france has shut down all train and truck traffic to and from britain for the next 48 hours. you are up to date, guys morgan, i'll send it back to you. just in time for this busy christmas week sue herera, thank you. as moderna's vaccine makes its way across the nation companies are jockeying for better places in the line to get the vaccine for their workforces uber, door barb, lyft a few of the names lobbying for early access bill george joins us now bill, great to see you so in terms, not surprising to hear that companies and

industries are pushing, especially if they have central status, are pushing for their workforces to get the vaccine sooner than later. what do you think? what do you think of the guidelines, the recommendations that the cdc put out to at least from a federal perspective offer some sort of general road map for how this could play out? >> i think the cdc did its job their vaccine advisory council there was a lot of debate about this from some of these same companies. so they set guidelines but now the problem reverts to the states and so you have 50 different states have 50 different approaches and also trying to balance out the risks. i am very concerned that this lobbying is going to take vital vaccine away from people that most need it and i can say this, that moderna and pfizer promise 200 million

dose by the end of february. the there's a big risk that, you know, distribution chains won't work or manufacturing glitches might come about so could be less than that but until the end of february there's a huge battle to see who can get access to the vaccines the unions are battling very hard every bit as hard as the big companies are. i think we have to be concerned about the non-union workers. we have to be concerned about the small practitioners that are barely hanging on. people with small businesses that can't hang on for two or three months personal service workers in touch with people. people that run beauty salons and massage parlors. i'm very worried they are going to get shut out by the big companies. amazon can take an awful lot of this i like the approach walmart took, disney, new york stock exchange said we have to wait our turn in line and i hope the big companies will stay in line and wait until they are called and i think the states should go

one step further i want to see them set up parallel councils to what the cdc did so they can view objectively. take a database base approach and risk based approach. where are the greatest risks to the economy and our people >> you make some key points there. i think certainly the flip side is some of these big companies would argue they are potentially in a better position from an infrastructure standpoint to be able to get a hold of these vaccines and distribute the home their workforce. in terms of infrastructure, some of those smaller companies, those folks and industries and small businesses and mom and pop shops, et cetera, that maybe don't have that type of lobbying arm, what could be provided? is there enough infrastructure for them to be able to make sure their own employees have access? >> as you know both walgreens and cvs will administer the vaccines i don't think it's up to the big companies to do the administration you have hospitals

a lot of sours doing that. the states have to be very precise in how they distribute it and who gets it i would not buy that argument to put forth that they have better distribution look, here's thing those companies have a lot of cash, and i tell you these small mom and pop jobs don't have cash they are barely hanging on pap lot are going out of business, can't re-open. you have to worry because the consumer will not go back to use these services until they feel secure until consumers feel they won't get infected, if they know this is a safe place they will feel secure and go back to a normal way of life tourism is lob jig it has to be put on hold we're only talking three or four months end of february and more vaccines coming with j&j right now we need objectivity of

state. they represent people of color, represent small employer and union and non-union workers not just where the company comes putting on pressure through the lobbyists. >> bill, yesterday on "meet the press" the incoming u.s. surgeon general was on and said it could be, if we're being more realistic that it's closer to mid-summer or early fall before the vaccine makes its way to the general population and i hear your concerns, but it doesn't sound like you're that pessimistic. >> i'm not pessimistic i'm more optimistic than he is what we're overlooking is the fact we have johnson & johnson and astrazeneca. johnson & johnson, they haven't gotten the results in phase two trial. they concluded on friday a 45,000 person trial the largest trial ever for a vaccine, and they will know the results in january and be submitting late january early february for their emergency use authorization, go

through the same process like for moderna. j&j has an enormous capacity they were going to put in capacity for a billion doses he's still holding to that big a billion doses in 2021. you will see their capacity coming on stream in march through june period. so i think by the end of june, i'm more optimistic that those people who want the vaccine will get it by the way, you need to worry about the anti-va xers there's things on the dark internet going around. >> i was going to ask about that we brought on these hospital administrators this morning a little bit more optimistic but i'm surprised how many front line hospital workers, nurses and the like i guess and others have been resistant to being the first wave of people getting into you

can -- inoculated. >> there's a debate about this, david. i actually think hospitals have the right to require people to get vaccinated to work there somebody will do surgery on me, they are looking inside my mouth and inside my eyes i want them to be vaccinated give me a lot more security. so i hope they all get vaccinated people in warehouses more on the margin, i wouldn't say we have to mandate that. i do think right now hhs need to have a major campaign to say this is safe, get vaccinated now. and i think that's really important. these public figures like vice president mike pence the stuff on the dark web is ugly i read about it. let's get positive about this and see. this is what nation needs so we can get our economy rolling by mid-2021 >> you just mentioned hospitals

but the there has been this raging debate, particularly in the last week or so about whether businesses can, should, would actually mandate that their workers get vaccinated do we see anything that -- do we see any kind of prince edward in place? -- precedent in place for a mandatory vaccination program within the workplace already >> i don't know about vaccinations they mandate all kind of others things for employees companies are mandating they get tested when they walk in the door i would say -- but like i say, i'm less worried about the companies and people say we ought to be on doom camera i'm more concerned about people in the hospitals and in touch with the public direct contact like that. hospitals, number one, the employee, their safety of their employees and their safety of their patients and that's kind to come first over everything

and if that requires a vaccine so be it i don't necessarily mean for patients but employees >> thank you for joining us today. >> we're keeping our eyes here on shares of tesla as we often do we did officially join the s&p 500 today. the sixth largest company in index and almost 650 billion or so of market value see it is down after incredible rally, even very recently and 'll kenly over the year as well. weta a quick break stay with us

one top strategist shares measure 2020 playbook and where she's putting her money to work in the new year. find out on trade g na tradingnation.cnbc.com more "squawk on the street" coming up.

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welcome back to "squawk on the street". stocks falling precipitously on this monday as fears dominate the discussion despite stimulus bill being reached worst performing sectors energy, health care and travel as countries in europe and beyond ban british travellers more on that in the next hour. take a look at airbnb. down 6%. door dash also giving back some of its initial gains broader renaissance ipo had a pretty strong year went through a rebalancing on friday and trading down by as much as 1% carl, back to you. thanks we'll talk to you later. let's bring in mike santoli. a few culprits this morning, one worries about this uk variant. or maybe gets out ahead of an ill liquid week after a good year >> the context matters a lot

the lead up into this monday was a market that was kind of relentlessly heading towards its highs. we were talking about how people were reaching for riskier stuff. this backdrop where just small little disappointments threat market vulnerable for a little gut check. that's mostly what's going on. right now the action is kind of sequestering the pain in travel related areas. small cap energy down. even the small caps have been resilient. offsetting a lot what you said is the fact that the banks for their own reasons have a relief good bit in there and lifting the broader tape and we're in this situation where i still do think the market is priced in a lot of good. excess of certainty about this acceleration early part of next year and the economy and the vaccines was this light switch that got flipped and we're all set. that gets challenged over time but right now it doesn't seem like today's action is

necessarily out on tour especially with the bond market not reacting in a big way. >> that's a key point. i won how much of this is a rebalancing hangover you see shares of tesla selling off today after hitting another record high on friday before entering the s&p got to wonder how much of this is reshuffling >> let's keep in mind what happened at the close to tesla it rang up literally at the final print in the hydroxychloroquine p.m. auction. the stock is back where it was at 3:00 p.m. on friday this is not about a huge amount of actual kind of profit taking in tesla but yes i do think the index rebalance and also the expiration of the options and futures, a ton of upside in this market has been coming from bidding for upside call options and that just gets built up in the system and then you have an expiration, a lot of that gets swept away and rolled ahead. so now i think it's a little bit of a regrouping of the market after something like that. >> mike, you often talk about

leadership in the market when you look at the banks today obviously which are diverging from performance in the general market does that establish in anyway an opportunity to potentially imagine this group is actually going become a leader or is this going to be like it has been so many times a short term phenomenon. >> i wouldn't say financials would be a leader in the sense that they are really the locomotive for the market but without a doubt there's room for them to get back towards the valuations they had a couple of years ago, get back though sense they are in sync with a recovering economy and can participate. we had this nice move in small caps they can participate in that type of rotation you do see how the market in general has a little bit of a tough time making progress when that's the story because since september 2nd when the nasdaq peaked the pace of gains has gone down and, you know, this morning's loss in s&p 500 was below what we traded on november

9th in the morning see this sense out there the overall index, little bit impaired when it's kind of a laggards having a day in sun >> all right, mike a lot to watch that's a nice way to put it in context on this market commentator. coming up, don't miss doj's antitrust chief. we'll talk with him about a bunch of different topics. u alady imagine. that starts at the top of the hour don't go anywhere. in a land not so far away,

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cnbc is out with a new survey sig wh survey saying what would a biden presidency mean for the stock market we have details. >> the reason we did this survey is because millionaires own 85% of individually held stocks. so they really move markets. right now they're bullish on stocks and bearish on taxes. two-thirds of millionaires expect to pay higher taxes under a biden administration that is according to the cnbc millionaires survey. we look at investors with a miller or month investable assets the biggest financial change

they plan to make from taxes is estate planning with 27% multimillionaires making changes to the gift or estates now the views on taxes are more tied to political party than their wealth republican millionaires ranked taxes is the biggest threat to the wealth next year while democratic millionaires say the virus is the top threat. now most are expecting a stronger economy, higher stock markets and low interest rate rates next year. majority say a biden administration will be positive for the stock market and 70% expect the s&p 500 to be up at least 5% next year and a third expect it to be up double digits now equities will get the largest share of their new money next year and the favorite sectors for putting new money to work will be health care and tech followed by banks back to you. >> robert, anything on their travel plans or whether they plan to relocate from high tax states to lower tax ones like so many other people seem to be doing these days

>> actually, funny you asked we did ask that question 17% of millionaires say they plan to move as a result of the election it was out much higher percentage for republicans than democrats. so almost 5% higher. it's unclear where they plan to move and why whether it is for political or tax reasons. but there was a emigration effect from the election we'll have to follow that the next survey. >> yeah. for sure seems to be a topic we continue to talk b interesting that graph you just put up looking at stock market returns under the biden administration, i'm wondering how granular that got, whether that was really more pricing, you know, recovery with the vaccine rollout, whether this is because of policies under the biden administration, whether it's something else i guess yellen as a secretary, as a treasury secretary?

>> if you look at the interest rates and economy and markets, interest rates are staying the same or falling lower. the economy getting stronger and so all that feeds into a strong equity play for next year so i think it's really about the macro low interest rates, stronger economy this k-shaped recovery which helped the high earners and investors in the market whereas the rest of the economy is struggling >> yeah. it's going to be interesting to watch that historically, presidents have come in and they have tried to push through some of the most aggressive agendas in that first year while there is still good will i'll be curious to see what that means for the stock market next year too robert frank, thank you. >> let's get a dhcheck on the markets as we head to break. it is a down day to start this chris m christmas holiday week the dow was down 423 earlier in the trading session. now it's down 277. worst day for the dow since november worst day for the s&p 500 since

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good morning it is can a.m. at tesla headquarters in california, 11:00 a.m. on wall street and "squawk alley" is live.

♪ >> good monday morning welcome to "squawk alley." i'm jon fortt with carl. the s&p 500 and nasdaq off by more than 1.5% and on "squawk alley," beyond the morning's action, land of the giants, whether it is the big tech's names influence on the mashlgts, fighrkets, fights other other the tech giants continue to