will while i am disappointed by the response of president trump, i was pleased to see leaders in both parties in the congress speak out loudly and clearly on this attack. again, i want to thank prominent republicans in the senate particularly for speaking out. it is a sign, a sign that with a new administration we can could be front these threats on a bipartisan basis with a united front here at home that should be encouraging to the american people, and a warning to our adversaries. in the meantime, the president's team for the next four weeks need to cooperate fully, which they haven't been doing, to share information that becomes available on both the impact and our response to ensure a smooth transition to protect the american people as administration as change over the next month, i intend to continue focusing on building my

team so that the right people are in place on day one of my administration to take over this effort, to prioritize cyber security across the board. and i will consult with experts. the plan for the steps my administration will take in order to secure our stills, improve our cyber defenses and to better withstand future attacks that we know will come and to impose costs on those who conduct them and i fully expect bipartisan support based on this from what we have heard so far cyber threats are among the greatest threats to global security in the 21st century i believe we have to treat them with the same seriousness and purpose that we treat threats with other unconventional weapons. we have the work with our allies to establish clear rules and

enforce them and sequences for those countries that violate them i want to close with this. as i look at the first of what will be millions of vaccinations going into the arms of americans, after hundreds of thousands of lives lost, a congress finally passing an economic rely package after months and months of delay, and a new urgency for bipartisan approach to cyber security after years of a president who has refused to stand up to our adversaries and hold them accountable i am remind of a quote this season from a jesuit priest named alfred delp he wrote, quote, advent is time for rousing. don't believe, first we are shaken the our depths. and then we are ready for a season of hope as a nation. we've certainly been shaken to our depths this year now it's time to awaken, to get

moving, time for hope. we have gotten through tough times before in this nation. we will get through these difficult times as well. and we will do it by coming together, by working with one another. by being -- you have heard me say it many times -- what we are at our best, the united states of america there are certain things that rise way above partisan dechbss that threat the united states. there are national security interests that require us to cooperate. i am confident -- i'm confident we will be able to do that after a year of pain and loss, it's time to unite, to heal, to rebuild. for all those who are suffering right now, who have had enormous loss, lie at wake at night wondering what tomorrow will bring, i say god bless you all, and i promise you we are going to continue to push as hard as we can to finish the job

may god bless you all. may god protect our troops merry christmas, and happy holidays to you all. now i will be happy to take some questions. meghan, i will let you tell me who is -- >> [ inaudible ] >> thank you, mr. president-elect. president obama once referred to this cyber battlefield as the wild west. given what you just said about this, that it represents a grave risk, do you believe it also represents a act of war? will you respond in kind, if so? >> the answer is, first of all, it is a grave risk and it continues i see no evidence that it's under control. i see none ered had of none defense department won't even

brief us on many things. so i know of nothing that suggests it is under control this president hasn't even identified who is responsible yet number two, the question of the damage done remains to be determined we have to look at very closely the nature the breaches, how extensive they are, and what damage has been done and thirdly, there is going to be a necessity, as president obama and i in our administration talked about. we need international society the -- international rules of road on cyber security we have to bring along our allies and our friends so we hold everyone accountable who breaches any of these basic fundamental rules. and lastly, i believe that when i learn the extent of the damage, and, in fact, who is

formally responsible, they can be assured that we will respond, and probably respond in kind there are many options which i will not discuss now. >> why not lay it out, as deterrents >> we have not done that in any other areas where we have faced international crises we don't sit here and say, we are going the strike with you a nuclear weapon we don't sit here and say it and so on. let us determine what the extent of the damage and i promise you there will be a response. >> another issue, sir, as you know the runoff elections in georgia could well determine whether there is democratic senate in january or a republican senate in january are you waiting for the outcome of those two races to make some of the final selections for your cabinet, including the attorney general, the most significant

outstanding cabinet secretary you have yet to pick >> no, not based on the attorney general. it is just a matter of getting to it and through and it be able to announce it they will all be announced either just before or just after. we are going to make an announcement tomorrow. and we may have another announcement between christmas and new years. we are just working through all the efforts to do due diligence. >> lastly, has the issue of the investigation of your son coming up in discussions with your team and potential candidates for attorney general >> no. no i guarantee you i am going to do what i said. the attorney general of the united states of america is not the president's lawyer i will appoint someone who i expect to enforce the law as the law is written, not guided by me >> thank you, sir. >> [ inaudible ] >> we will continue to monitor

joe biden, president-elect, given his holiday end of year remarks there from his base, his transition base in wilmington, delaware, expressing some caution and optimism for the year ahead biden saying the darkest days in the battle against covid are still ahead. he did praise congress though for their urgency in passing the new relief bill and also spoke about partisanship and why he is hopeful to do more in the coming months ahead he said he will put forward a new plan next year to address the covid crisis and distribute a vaccine. prekt also talking about the hack, he criticized the trump administration and prfr by name saying it happen on his watch while he was not watching. he called it a grave risk to national security that was carefully planned and orchestrated and threatened retaliation. welcome, everyone, to "closing bell," sara eisen, here with scott wapner in for wilfred

frost. prekt giving year end remarks on a year that has been plagued by a pandemic, a lot of pain and suffering. >> the darkest days are ahead of us, he emphasized ahead of us, with regard to the pandemic. it was blister iing the likes of which we haven't seen since he was on the campaign trial's went on over a number of topics as you have summed up. we have a shot in the arm for restaurants. we will speak to the ceo of chipotle about the vaccine's impact on the industry, whether a return to normal will digitize that restaurant's strategy. >> he plus president stacey cunningham will join us

following the s.e.c.'s new listing plan. also joining us, bill gurley, he says the relief bill is a wonderful christmas present to vc backed start-ups we have a lot to get to. mike santoli is watching all the market action. >> market at least on a top-down level looks like it is quietly churning out there, the s&p hang agent the levels we have been at around three weeks or so pressure in the morning after yet's small shakeup. relatively gentle, sitting along the line that's dividing the formal trading range still trying to metabolize variability and sentiment and other things off to the side are exuberance you can see in some pockets of the market one of the characteristics of it is emerging growth stocks that

look something like an established don't nant stock out there. look at fubo tv today. a remarkable move. you can see it is being pitched or received as something like the next roku. you see roku, a massive performer over the last years, up 1200% now you have a junior varsity version of tesla or a related play on tesla? sure let's try blink charging company, ev charging here -- flatten it out over two years. you see what happened to blink here after this monster move in tesla, it starts to catch up ad tech, a quiet part of the world of trade desk in recenters yao. mag magnite. they are being promoted heavily.

they flying around various platforms like switch and tiktok and everything else. i shows you there is a new retail-driven energy out in the market man fasting itself mostly outside of the mega cap dominated indexes. >> we will hear from you over the next couple of hours consumer confidence, meantime, data out this morning falling to its lowest level since august. dana peterson is chief economist at the conference word joins us now to discuss. nice the he is you >> thank you great seeing you as well. >> confidence down, stimulus passes what is the state of the economy right now. >> well right now we think that the economy is kind in a soft patch closing out the year and entering the beginning of next year we see it is evident in consumer confidence data we saw the data came out just before vaccines were starting to be rolled out we think that once the vaccines become more widely available and also with the help of the stimulus package that was just passed that we can get past the soft patch and look towards

stronger growth by mid year 2021 how strong at this point dana is the link between what you are finding on consumer confidence and actual consumer spending in retail sales. >> well, i mean, we don't have all the retail sales data for the fourth quarter, but we do know that sales were soft in the last reading and it was surprising and broadly spread especially since consumers have been spending a lot on goods we know services have been weak. that's because people aren't able to engage in in-person activities it is not surprising to us certainly given the fact that you have more cases cropping up, more businesses being asked the close, and also moving fear before the stimulus package that there wasn't going to be one that was reflected in confidence as well as potentially in consumer spending. >> dana peterson, thank you for

joining us, with some color on today's report we appreciate it after the break, we are going to continue to talk about the consumer chipotle, about to wrap up a banner year with the stock climbing more than 60 pz in the face of unprecedented challenges to the restaurant industry we will talk with the ceo brine niccol that's next on "closing bell." dow down 180 points.

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43 minutes left of trade the dow is down 180. shares of chipotle on fire, surge 70% this year. digital sales growing 202%, accounting now for nearly half of all sales in the third quarter. chipotle ace ceo brian noccol joins us for an interview. welcome back to the show. >> thanks for having me. >> curious, on stimulus, first, now that we have this relief package, how much of a beneficiary do you think you will be and were you last time now that we are going to see more checks going out to americans and unemployment top ups? >> you know, look, i think the consumer, fortunately, has stayed positive in their spe spending as it pertains to restaurants especially for offpremise locations i think the additional stimulus was needed and i think it is going to be very beneficial to our respected industry >> it is strange to hear you

talk about the strong consumer and the stock being up 70% when so many restaurants in this country, independent restaurants are closing for good and continue to close and are in desperate need of help how do you see the restaurant picture ultimately shaping up next year given some of these huge changes are you just taking share? >> look, i think the good news is our industry is filled with so many entrepreneurs that have had starts and stops obviously, it is terrible to see some of these independent restaurants close due to issues totally out of their control but i think it's a resilient entrepreneur that will be back and you know, it is going to be a tough couple of months ahead but i am confident in that entrepreneurial spirit fortunately for chipotle, we have been able to navigate through this pandemic because strength in our digital business. >> i was going the ask you about

your your digital business brian, it is scott nice to see you again. >> yeah. >> is that a permanent thing even on the other side of the pandemic, once you have a vaccine widely rolled out? >> yeah, it will be. it's another access point that we were working on before the pandemic and, obviously, the ability for people to order in the app, pick their pickup time and be able to grab their food without getting out of their car is something we are calling the dilt a digital drivethrough of the future it is proving effective during the pandemic and it is a consumer need that's going to exist after the pandemic but i also believe, you know, those access points around our digital system where you order ahead and pick up, whether you do it from your car or come into the restaurant, grab and go. that combined with our dining rooms coming back is what sets chipotle apart and makes me

optimistic for 2021 and beyond. >> are you going to require your employees to be vaccinated >> this is a topic we have been discussing a whole bunch because it falls in the realm of making sure we have got the best wellness programs available for our employees. as of right now we are not going to mandate it. we are going to strongly encourage it we will cover any of the costs associated with getting access to it as well as the ability to get a vaccine, but we are not going to mandate it. we are going to strongly encourage it >> i know you talked about chipotle lane, what about digital only restaurants you were experimenting with, the sort of ghost kitchen, as they are called how is that going? are plans changing in terms of the scale for you of those kinds of businesses now that we are getting to the other side with a vaccine? >> look, the digital kitchen that we just opened in upstate new york just outside of the military academy, west point, was in the works well before the

pandemic and we view it as an alternative format we will continue to build regular chipotles, chipotles with which i poeltly lanes, some of those only. we will get the right execution in the right area so we can get the most people access to which i boat low as possible we have one digital kitchen up and running. we plan the use the format where it makes sense it is another tool in our portfolio to give chipotle the ability to build 5,000, 6,000 restaurants across the united states. >> are you telling investors how much more profitable it is, cutting out that labor cost, that you have from operating full, in-person dining restaurants? >> yeah, sure. we have been talking about how it is -- our best margin

transaction is a order ahead transaction. if you order from the app and then come into the restaurant and pick it up or pick it up through our chipotle lane that is the best margin transaction without a doubt. all of our restaurants have traditional lines and the front line and we have got one restaurant where we have a digital make line business. out of that restaurant we also do catering and delivery we are excited about our case catering business coming back once we are past the pandemic. and our delivery business is an access point that we'll continue to figure out how or what role it plays in the mick of all the different access points we have. >> are you anticipating a pickup in inflation or rising commodity costs for you? >> we are seeing limited impact right now. our supply chain and the folks that are all involved in procuring all of our produce and meats -- we are seeing pretty

limited impact we saw some spikes earlier in the year but a lot of those things have you know kind of mitigat mitigated. so we are seeing very little impact obviously there will be some labor inflation as it relates to minimum wage changes going forward. but you know, we feel really goose about the cost vur we are going to be set up with in 2021. >> i thought scott was going to ask if you are seeing any pickup in burrito sales as a result of the miley cyrus burrito. what is it about these partnerships does it really help sales? >> this is one of the things this we talked about seasons i came to chipotle we want chipotle to be in culture and leading culture. this was something our social media team did that was tunistic and a lot of fun tiktok and miley commented on the

chipotle conversation. in return we said we will make a miley cyrus burrito. just the other day i don't know if you saw this the other day woe came out with a -- burr eaty it is a great program. it is a family that runs a summer camp for disabled kids. it is their family name. their son answered the competition. created this burr to we won for him created $20,000. it is a terrific story but it is fun. there needs to be an element of our food is delicious. it creates great memories, great moments and you will continue to see us do things like that. >> for the record that was doing to be my next question, about the mily burrito was in the repertoire. brian, happy holidays. >> happy holidays, guys. >> brian niccol ceo of chipotle

joining us. still ahead, stacey cunning hmm calls a new s.e.c. rule thank that bill gurley calls a wonderful christmas 2020 present for the venture capital world. what it means for investors, too. it is an exclusive that's coming up. as we head to break a check on bonds the ten-year trading around 92 basis points we are back on "closing bell" ghafr is see yourself. welcome back to the mirror. and know you're not alone because this. come on jessie one more. is the reflection of an unstoppable

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welcome back dow down 180 nasdaq and russel outperform with 30 minutes left of trade. time now for the daily coronavirus tracker. the u.s. has now surpassed 18 million coronavirus cases. this as congress pass as virus relief package late last night providing $00 billion in pandemic aid overseas, france activatesing a 48-hour border closure amid fears over a new strain in the united kingdom of krid for than 40 countries suspended transportation links with the

uk and dr. anthony fauci receiving his first shot of moderna's vaccine today. a day after president-elect biden received his first shot of the pfizer vaccine, scott. i think fauci was quoted as saying he has extreme confidence in the safety and efficacy of the vaccine? yeah. >> another show to boost public confidence. >> i hope he has confidence in it, because we all need that boost of confidence because we need so many people to take it sara thank you. time for a cnbc news update, sue herera has that. >> i do. good to see you. here's what's happening at this hour, everyone the fda issuing a stern warning to whole foods other undeclared allergens in its products that more than 30 recalls in the past year the fda says it is a pattern of mislabeling that must be corrected. britain's transport minister says stranded truck drivers will again getting tested for the coronavirus tomorrow if they test negative, they will be allowed to travel to trans. however, he warns that it could take two to three days to test

everyone. israel is heading towards its fourth national election in two years. budget negotiations between the two main parties have broken down and parliament will be automatically dissolved at 5:00 p.m. eastern time without a budget deal. in peru, here is one way for kids to visit with santa this. plastic box allows them to see and talk to santa and leave their wish lists many kids are asking for work for their dads something santa says makes him sad a story that's playing out all over the world. >> that is sarbly sad, sue thank you for that. >> you got it. let's check on market movers bared initiating an outperform the firm says customers are embracing the second hand market and the company is compelling and a growth story the stock up up.

iac shares jumping after announcing they are spinning off vimeo. iac is trading 15% higher. we have got 30 minutes left before the closing bell. here's where we stand. the dow is down 200 points walgreens the loser, apple is the winner technology and small caps going hand in hand higher today. the russell 2000, a big oner, almost up 1% the s&p is down a third of 1%. the only win sectors higher tech and real estate. today a rule change at the new york stock exchange, what the s.e.c. is now allowing that could have a big impact on the ipo market stacey hungham is here with an exclusive to break it all down

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near session lows here, 25 minutes left of trade.

a win for the new york stock exchange today the s.e.c. approving the proposal to allow companies to raise capital through direct listings joining us now on the phone for an exclusive interview is stacey cunningham, the president of the nyse great to talk to you explain for individual investors out there what this rule change actually means, and what it means for companies going public. >> hi sara, great to be on talking with you as well it is building on the direct listing that was launched just a couple of years ago. as you recall, with a direct listing it was really an idea that was -- the brainchild of barry mccar thou the cfo of sought phi who said i want to key couple capital raising from going p.k. his goal of raising money was goent to go public he came to the exchange. and we help through our mechanism the way we trade stocks every day price their first day of trading through the

model on the trading floor so we priced spotify's first trade. and slack followed suit, and palantir and a couple of other companies used that mechanism to become public n. all four of those cases they weren't raising money at the time of their listing. for the past months we have been working with the s.e.c. on the ability to raise primary capital and price it on the exchange at the time of the opening trade. instead of a traditional ipo where shares are sold the night before to a small group of the market, small group of investors and then the first day of trading really sets their marketplace we combine those two things to be exactly the same trade at the exact same time so everybody is on a level playing field. it democratizes access on the

exchange on the first day of trading. >> how exactly does it affect wall street? i guess the idea here is that the fees would be lower to the bankers, which is why venture capital and a lot of the tech firms really like it but how -- what is the mechankhm for how that capital is raised all of those mechanisms would still require fees, wouldn't they >> this is important to dwishl it is not about the fees to the banks. the bank are providing services to companies when they do a direct list asking they get compensated for providing that value to them when they are working with them. it is about the cost of capital f. they sell shares the night before to a group of investors without having all investor super as part of that offering they are going to likely sell it at a lower price unanimous what the market demand might be you are not getting the full view of what all interest is so it is really that discount they are trying to avoid it is not so much fees that get paid to wall street as much as not having the full benefit of

the market to price their shares think about all of those examples when we see an ipo pop on the first day and there are shares allocated the night before and it gets priced to a certain level and the next day it is up 17z people say that's a great ipo, look how wonderful and great this company is? it is not great if you sold the shares the night before. because you could have gotten a better price if everybody was participating in that offering that's with a this is designed to do. the company becomes a seller on the new york stock exchange opening auction just like any other sellers out there in the market and that allows for one price to all buyers and sellers on a level playing field as we look to price that offering at the same time. so if you think about an ipo, there is two pieces to it, there is the initial public offering where shears are sold the night before, and then the first day of trading really sets the market price. in the direct listing with primary capital rates you are putting both of those events at

one price at the same time on the new york stock exchange the morning of the first day of trading. the company, early investors, employees can be part of the initial sale at the same price as all investors. >> but the primary capital raise can be done by the s.e.c. without an underwriter right >> >> correct. >> if that's the case, doesn't that increase the liability on the company itself, and then the risk on the individual investors, who,in a sense has no guidance on what the fair or true price of a share of stock issued should be >> importantly, these are still registered offerings all of the federal skpurts laws still apply. the company as part of their s-1 filing as they do with an ipo includes a price range where they indicate the stock may -- where the sale might occur for their primary offering they still do that our heck nichl at the nyc with

the direct floor listing provide that range so investors have that viz skpblt transparency into where the stock will open, range. it could be a wider range than might be in an ipo, because they don't have the benefit of having that visibility yet of knowing where investor demand is if for some reason the company is going to price outside of that range the trade doesn't happen investors do have transparency in to how the stock might open that morning and still all the federal securities laws apply. >> do you think the ipo process in general stacey is broke snen how would you answer that question after watching doordash and airbnb and the massive swings that you, yourself, and sara referenced just a couple of weeks ago? what does that tell us about where we really are? >> there is a market need for innovation in this space that's what we are trying to accomplish here. i give a huge shout out to the s.e.c. the chairman has been

progressive in looking for ways to democratize this process. some will continue to choose an traditional ipo. but others will have this as an alternative. so i think there is an improvement that is welcome in the ipo arena. and we are i think excited to see this happen. it is a good thing for the capital markets and a good thing for invest snoors stacey, has any company that you talked to expressed super in going public this way i am wondering what types of companies, and how large command could be >> absolutely, there are companies that have been interested slack was the second company to do a direct listing. after that we start odd get lots of questions from companies that might make sense for them. some of them wanted to raise

money. for them a direct listing didn't allow them to have a primary offering at the same time. this makes it viable for companies that do want to rise money at the same time as you know capital is very -- there is a lot of access to capital in the private markets private equity has been a source of capital for many companies for a long time now. but that doesn't include the investor as part of the process. this will now allow companies to raise money on an exchange and allow the retail investors to take part on a level playing field just like the most educated institutional investors. so there is market dmachbd you look at the trends we have seen in retailored flow in 2020. they have been a much bigger part of the market than they have been traditionally. now they will have access to those ipos instead of having to wait for the first day pop to get over and then trying to get in. >> real quick, have you gotten pushback from wall street officials who don't like this? >> no. we have worked closely with wall

street firms throughout this process. inthere is a misconception that the bank are opposing it banks are still doing the same things they do in a direct listing. this isser in alternative? it may change the cost structure. that's all stacey, we appreciate it very much >> thank you. >> president of the new york stock exchange. coming up in a few minutes, a remind, he we will speak with investor bill gurley who praised this on twitter today writing this is huge you will hear from bill gurley directly coming up still to come as well, shares of peloton jump on a new deal, needham raises its right target on fubo tv the analyst who made that call coming up in the "market zone. and the unprecedented performance of ultra wideband in more and more places where people need massive capacity and ultra-low lag.

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>> announcer: the "market zone" is sponsored by e trade. trade commission free today with no account minimums. 1 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. scott's favorite part of the show cnbc markets commentator mike santoli here to break down these crucial moments of the trading day and we have got eugene profit here as well. we will kick it off with the broader markets. dow off as we head into the close about 2700 points. bright spots, salesforce, apple, facebook, google both lower. for a third day, quiet in terms of headline perspective. dollar stronger.

a lower growth combo. >> yeah. on a macro basis the market is just a little bit pressured just by the sense of maybe slowing activity, consumer confidence numbers not great. i don't think there is a big directional move based on the economics. the overall index is in this flattening out consolidating kind of fatigued state and it seems like nothing is going on because the index is about today's earnings and next year's earnings and historical earnings the market for tomorrow is raging today ipo etf is up 2% the solar etf up 2%. the arc innovation testify up almost 2%. that's the heart where all of this fast-moving adrenaline seeking trading is going on. that's what's happening on two different segments of this market. >> part of the problem is we baked in a lot, mike. >> sure. >> now the news right in front of the windshield is bad on a number of different fronts >> it absolutely is. but i don't think that the market is necessarily giving a

comprehensive rethink to the outlook for next year. it's just sort of saying, from october 30th up to the high we had a massive move, a 13% move in the s&p in five or six weeks. that was enough for now. and i do think you have to let things settle out a little bit and figure out if earnings are still going up, if the credit market is still strong, if you still have flows that are going to chase this market with more than they already have i think we are trying to rationalize some of the overheated sentiment and positioning situation. >> eugene, we have got the stimulus that has been long in the works and long didn'ted in congress we are getting the vaccine, slowly, but it's starting to roll out those were two fundamental drivers of the markets, now almost 70% rise since the march lows what are you doing at this point? >> being very careful. i think that the virus mutation is a little bit of a big deal and i think that's driving more of investor sentiment to kind of

stay closer to the sale trigger especially as portfolio managers come to the end of the year and want to make certain they locked in gains i don't think you will see a big downturn between now and the end of the year with you i do think that the sentiment is much more towards being careful right through here and then at least now we are looking at the pandemic and seeing that there are some risks and that it may not be just straight up as a result of the vaccine being in place. >> let's talk about a stock on the move peloton getting a boost on news it is bying rival equipment maker precore. >> shares of the connected fitness company soared to an all time high of a announcing it fired precor that will give peloton much-needed production capacity in the u.s. including more than

26,500 square feet of manufacturing space in north carolina and washington state and more than 100 r&d employees. i has been struggling to keep up with the demand. keybank rised its price on the stock. shares are up 400% year to date. still up 11% on the day. >> diana, thanks that stock, man, almost 500% generous, 470% year to date. mike santoli, this is enigmatic of one of these frothy, allegedly frothy stocks. >> it is viewed as a one direction stock. $47 billion market cap, 1% of its market value it is using to acquire this company when it came out as an ipo it was a bit of a laughing stock a year ago let's remember that after that badly received tv ad. offly people think as long as they have more manufacturing capacity they can sell as many as they can make

we will see if that remains true but i do get the incorrelatal good news in a stock like this with the momentum behind it. i thinkest mo of the short sellers are already fallen by the wayside. 12%. says a lot about the market and the velocity some of the stocks move at. >> it also raises the question, eugene, approximate what to do with the stay-at-home winners like peloton, like etsy, which is up a lot today because they keep getting second and third winds after already they have had such tremendous run-ups. i guess you have to choose which ones have staying power. how are you navigating that? >> i think you do. investors have a fear of missing out so they are in stocks like tell pon it's amazing that poll ton is spending $420 million for precor and the market cap has gone up by over $5 billion you would take that trade every day. i don't necessarily think that

adding precor in will add that much value into peloton. not to that extent it allows them to fill orders quicker and puts them in the commercial market with fitness gyms and hotels. but a lot of the story stocks are reacting this way. if you are disciplined valuation sensitive it is hard to get excited on names like this although i certainly would have loved to have 4 hundred% return. alaska airlines agreeing to buy 737 max jets. >> this is a big order the second time in three weeks we have had a big order in the 737 max. this by alaska airline this originally placed the order in 2012. now they have expanded it by another 23 737 maxes that means the total for this order is 68 planes with options for another 52 as you will be at shares of alaska, keep in mind they will

start flying the max next year, probably in the first quarter, beginning of the second quarter. they will have 21 by the end of the year look at shares of boeing it has logged 98 orders for the 737 max this month give you some sense of how much of a change that is, guys, if you go back over the first 11 months of the year you basically had 1,000 max orders disappear, and occasionally you would get one or two here or there so you are starting to see that shift in terms of the max backlog. >> phil, stay with us, if you would, as we discuss this. mike, it is not going to a whole lot for the stock today for the month. phil mentions the orders for the month. it is up 3 or 4% how much is already factors into boeing about these returning orders. >> probably plenty at this point. but i think it is just going to represent a play on some return to normalcy in general for the world. i don't know that it is necessarily kind of pricing, you know, acutely every incremal

order or anything like that right now. it is still of course way below its highs. i has taken a lot of punishment. we will see -- once you have air traffic back to something like normal then you can decide exactly when the market has figured it all out i don't think it is quite there. >> apple shares are higher today after a report said the company was working on an electric car and elon musk just tweeting quote during the darkest days of the model 3 program i refused out the to tim cook for the possibility of apple acquiring tesla for one-tenth of our current value. he refused to take the meeting that's juicy, what do you make of it. >> apple is getting all the attention today. look at shares of apple, i get the sense this story was leaked out in some fashion. you haven't heard the he have fattic, no way you heard the no comment

it was the no comment which tells you there is probably something here it raises the question, the stock is up. is there a signal to apple that their investors would be interested in them pursuing an autonomous electric car in or is this them saying we have been working on this, we have been working on project titan for some time. over the next six months i am curious to see what else leaks out with regard to project die tan. no doubt they have elon musk's attention. apple gets everybody's attention. certainly when you have a company with the deep pockets and the know-how they have when it comes the both hardware and software. >> it also says, phil, where tesla was then is not where it was now. >> correct. >> there was a time of exdesperation it would seem for that company which does not exist today. >> absolutely. completely different spot for tesla. elon musk can now -- let's say that apple comes out in four years with an autonomous

electric car tesla is going to be much larger, easily over $1 million in sales providing things continue growing the way they are. they are going for two manufacturing plants in america, one in europe, one in china, who knows, they may have more. this will be a far different company in 2024 than it is right now and in a much better position if apple were to come to market to take on apple i think bears, scott, would say -- there are plenty of them the haters and the shorts that tesla was in a much more dire position than he was letting on that he was willing to let apple come in and buy the company. what it says about their solvency and so of the issues they were facing mike -- gene, apple is now leading the dow. are you a buyer of apple on this kind of news and strategy around evs. >> we are a buyer of apple, but not just on this news. i am not interested whether or not they develop a car

maybe they will design to it look like an apple buttic that essentially apple is really firing an all cylinders with the amount of cash they are throwing off with the if you iphones and what they are doing, even with the ipads i think this is going to be a top performer next year. the story of elon musk -- reminds me of many years ago of ibm being out when microsoft came knocking for a partnership early in their days. sometimes you miss those thing and tesla was a battelooking fo battery company back in march. >> maybe -- >> apple up almost. >> go ahead, sara. >> go ahead. oh, two minute mark. >> you go. i am new to the "market zone." you know how the protocol works. >> i know you love the "market

zone." we have to stay true to the rules. the two minute sound there means mike santoli is going to tell bus the market internals, we see lopsided action with tech and smallcaps outperforming. >> yes another day when breadth is they gotive not profoundly but 2.1 billion declining, more than half of that on the advancing side here's pockets of onside action. real estate. wheat existing home sales today. strong market, low inventories tho those. -- the volatility index. we had a pop up to 30. it settles in the mid 20s. year end hedging. the options flow continues to juice it a little bit so it is not crossing below the 20 line the overall market, as you say, sara, did have a mixed

chartture. two thirds of a percent loss in the dow jones industrials. a little bit of a giveback this the financials after their gains yesterday. russell 2000 still stronger than the overall market with another 1% daily gain in the russell 2000, again approaching that 2,000 mark itself as we get into the close. >> there is the bell and yes, that's a double record close for both the nasdaq and the russell 2000 tech heavy index up half a percent, the russel up a full% eck w everyone, to "closing bell." if you are just joining us i'm sara eisen with scott wapner who is in for wilfred frost today. and mike santoli cnbc senior markets commentator. look at how we finished on wall street the dow closed around session lows, down 200 points. a few attempts at positivity but we closed lowerfight despite apple's gain s&p 500 down .2% the sectors that led us lower,

energy, communication services, and consumer staples both technology and real estate finished positive. that was about it in the s&p as for the nasdaq, at a record, up half a percent thanks to some strength in names like apple and microsoft. paypal also have a good day. ado adobe. some of the tech winners facebook, tesla, and google were all lower on the day and there is the new star, the russell 2000 index of small caps outperforming the s&p yet again, and now for the year at a new record high, up 1% coming up this hour, investor bill gurley on why he thinks the s.e.c.'s approval of the new york stock exchange new direct listing proposal is a huge win for companies going public first let's talk markets eugene profit is still with us victoria hernandez joins the conversation welcome, victoria. first, though, to you, mike, on how we ultimately finished it's stark to see new record

highs for the nasdaq and the russel, which don't usually move close together what does it tell you. >> as a matter of fact they were almost inversely related back in -- you know, let's say when the nasdaq was makingall time highs in the summer. the nasdaq was synonymous with mega cap growth stocks that don't need a good economy to perform. the nasdaq was somewhat cyclical both of hem are benefiting from the risk appetite play when apple is up 3% it is going move the headline index quite a bit. so you can sort of place an asterisk there but the russell 2000 has become mostly a momentum plate. it is a small percentage of the overall equity cap in the market it is the place where people want to be the small, undiscovered and laggard names have been flying as people look for something that can move fast and book quick gains. i think that's the mentality. >> or victoria, are we going

back to the growth trade because we are uncertain about the reopen, worried about veers again? >> yeah, i think you have to have a tendency to lean towards the growth side. really in our portfolio what is we are doing for our clients is to have that barbell strategy. we like to have some of the value and the cyclical component there because we have to look forward to the reopening trade i think the market is doing a lot of that. you see in the fixed income market that there is not a lot of volatility going on i think that tells us the macro story hasn't changed with regards to reopening especially with vaccinations. at the same time, that growth trade continues to do well we have a little bit heavier tilt towards the growth side and we think that's going to continue even with reopening happening. have that barbell strategy, with a little bit of both >> small caps up are 19.25% year to date. s&p 500 about 14% higher for year euge eugene, are you in small caps? if so, which ones?

do you stick with it after we have seen such a nice run of outperformance >> we have absolutely had a great run in small caps since the beginning of november. historically small caps have outperformed large caps during a bull market. the fact that it was lagging during most of the year i think was a result of people being concerned more about covid and small companies having less strong balance sheets and the like we tend not to name small caps because of movement on shows but i will give you -- nvidia -- i'm sorry, invita is one of the names, a dna sequencing company that's performed well. we also own g apparel. we tend not to name those frequently out in public. >> you don't think the russel small caps have gotten way ahead of themselves? a technician told pea that on

the "halftime report." i forget his words but it was something like they have entered insane mode. and you saw the chart. >> i saw it yesterday, i think that absolutely they have had a big run in the russel. but it was catching up to what has been going on in the large cap growth area in the market. i think if you go down on the value side of the russell 2000 you have a lot of names that haven't participated a lot of the growth this the russel have been driven by the -- and the spac names and those names that are not yet in therussell 2000 and you have a lot of rocket ships driving a lot of that performance but if you talk to a small cap value investor they are going to say for the last ten years they have not been participating and that there is still a lot of opportunity to buy names that are going to do well in 2021. >> does it make it harder, victor victoria, to find good value as you start to think about new positions for 2021 that we have

seen such a strong run in cyclical groups in the small caps that were always considered the value spots? >> it does make it difficult, sara but i think you have to really go back and do the fundamental analysis we are going to do that whether it is a growth stock arc value stock, cyclical stocks you want to look at the balance sheet. you want low net debt of the you want excess value on the balance sheet, good value ratios especially when you are looking at small caps. these companies have been so stretched during the pandemic. 80% of their revenue comes from the domestic side. you have to really dig in and see are these companies going to be able to make it through continued shutdowns? obviously we had an uptick in covid cases from the thanksgiving holiday i wouldn't be surprised in the second or third week of january the see another spike after christmas and new years holidays and the small cap companies are going to pay the price

really dig in and do the fundals on those to make sure you are not getting caught in the whipsaw reaction of a momentum trade. >> by the way it was ludicrous mode >> from space balls. >> i know. all right. thank you. thank you eugene profit. victoria hernandez >> shares of fubo closing higher after needham doubled its price target on the stock from 30 to 60 the analyst behind that move joins us now with a lot more the stock of late has been insane why? >> ludicrous mode. >> beyond. >> beyond. plaid. so we really like this one it is a play on connected television growth, streaming growth it also benefits from strong advertising revenue demand next year if we do come out of the pandemic if we don't, it has a subscription revenue stream movement i think sports is going to go back to normal next year

and it is a sports first streaming service. it has espn and about 50 other sports channels. so it's a demographic target audience is young men that they need to reach paying $1,000 a year for sports content. >> you look at the chart it is up 134% in one week. it seems like it really got jump started earlier in the week on this report that they could be eyeing exclusive sports content. what's the likelihood of that? what would the cost be for a company like this? >> well, they are already doing direct deals for like the nfl channel, mlb channel, and nba channel. they already do direct channel deals with the leagues then they have more regional sports networks than any other skinny bundle. these are skinny bundle products so they are $60 a month with a focus on sports. i think the upside is coming from sports betting because they bought a company that does

wagering and they will have a wagering product within 12 months i think that's exciting given that draft king sells at 12 times gross revenue. >> you were early. you started recommending this company before we saw this huge run-up at least in the middle of it you also made that similar call with trade deaf which has been a moon shot chart. what is your process here for picking some of these momentum winners? >> and roku the year before that, recall i think what's going on is we have a strategic shift in the consumer towards streaming which is driving connected tv ad revenue. and those are benefiting -- even during the pandemic, but as we come out of the pandemic, the momentum around connected tv viewing and ad revenue is going to be really powerful because $60 billion of linear tv advertising has to reach these

consumers that are now only on streaming platforms. and places like netflix and disney+ don't have any ads so those advertisers really have to pay a lot to reach consumers that are young and on streaming platforms. so that really helps places like roku and trade desk and fubo, actually. >> you do address one of the near term risks in this stosk it is important that our viewers who look at the kind of gains that this has already enjoyed and may enjoy if your call is going to be right. that's lockup, which happens on january 1st. not that long away what's the risk, really, there >> so, the bear case is that the float could almost double on january 1st because about half of the total shares outstanding become unlocked up right now they are not allowed to be sold, in a deal with the underwriters so those shares become salable in the open market in theory, if all of them became

available on the first day that would really hurt the share price. the two things we mentioned this the report is that, a, average trading volume has gone to 6 million shares a day, so it can absorb a lot of those faster than we would have thought when it first went public in october, early october. and then secondly, a lot of the shares ownership that's becoming unlocked up is owned by viacom, comcast, amc, a & e, discovery just based on the roku tradeout, if these companies typically left about a year or two after roku went public they are not really in a hurry strategically to get out of these streaming businesses where they have exposure they don't need the money because they are so big. so i would expect most of those to hold and therefore we won't see those shares except dribbled out over a couple years. that's my best guess. >> ten seconds laura, what's the next move? what's the next stock that's going to make a 500-plus percent

move >> my top pick for magn ayete. a sell side platform like trade desk. that's my number one pick for 2021. >> laura martin, thank you. >> apply pleasure. >> appreciate you joining us. a new ipo alternative, up next, investor bill gurley called the approval of the new york sckxcto ehange plan a christmas gift to venture capitalists. he will join us in an exclusive interview coming up in 90 seconds. stay with us

a potential big win for silicon valley today the s.e.c. approving the new york stock exchange's plan to allow companies to raise capital through direct listing that move was cheered on on twitter by tech investor bill gurley, who joins us now for an exclusive interview. bill, welcome. we talked with stacey cunningham of the nyse last hour. some might wonder if vcs are obviously excited because unlike in an ipo like this, you can sell on day one. you don't have to go into a lock up period. is that the reason you are happy? >> first, i am thrilled. thanks for having me on scott and sara the primary issues with the

traditional ipo are twofold. the s.e.c. nailed them both in their draft today, which is that it doesn't provide access to all investors. it is just a select group of people that happen to be the biggest customers, the investment bank. and the price and allocation are determined by humans just guessing, which makes no sense whatsoever in the modern age so the direct listing gets rid of both of those i think those are the two primary components and it's really really exciting because i think in a lot of ways this is a -- this will be a permanent change to our capital markets. >> though some are wondering if direct listings give companies the ability to circumstance up vent some investor protection that come with the traditional ipo process, potential investor lawsuits what would you say to individual investors on that? >> well, as you may know, the council for institutional investors, which is lobbying group on behalf of the hedge funds and the buy side funds

that reap the benefits of these exploited o eed ipos. they laid all of those arguments in their fight with the s.e.c. to try to block this innovation that stacey and the nyse are bringing forward if you would take the time -- read through what the s.e.c. wrote this morning they shot all those points down and said it is much more critical to have a fair and unbiased process and embrace those two key points i made. let's provide open access to anybody. in the future, you will be able to go on robinhood and if you want to participate in an ipo, you can. let's not let these intermediaries and gatekeepers hand al gate who gets the underprized stock. let's let supply and demand matching, which obviously have been available, order matching systems for over 20 years, but now they are going to be part of the ipo process which by the way is the exact same way every

corporate bond has been priced for years. so those liability questions would apply there as well. i just think it is a bunch of b.s. arguments put in the way to try to keep this unfair process going. >> is there a time, bill, where you see the traditional ipo process literally going away and companies choose these other options? >> unquestionably. i can't imagine in my mind when you can do a primary offering through a direct listing why any board or ceo or founder would choose to go through this archaic process that has resulted in massive one-day wealth transfers straight from the founders and employ kbrees and investors to the buy side. this year, it is going to be over $34 billion in one day giveaways. if you want to talk about legal issues, i think people are going to come after boards for

fiduciary duty violations for knowing the process where you are selling a corporate asset at a massive discount -- go away, i think this -- >> it is a whole -- it is not -- >> go ahead, sara. >> sorry didn't mean to cut you off i wanted to add spacs to the conversation there is ipos, spacs, direct listing with the capital raise how does a company decide what is best? what types of companies will go which routes >> look i think one of the big reasons the spac market opened up was because the upped pricing was getting worse and worse. so if you cared about cost of capital, you would never use a traditional ipo. today is a super important day because i think it will be very hard for anyone to argue whether it is a traditional ipo or a spac that's going to be better than a direct listing with primary offering this is so elegant, so efficient. it actually has fewer steps than an ipo it is wonderful.

i do think every single company will move this route >> you are not making many friends back east here, bill >> no. >> you must know that, right i mean, what are you hearing and i'm sure you speak to the highest of high ups at these firms who say gurley needs to stop this nonsense. >> look. i think it is over so we can't stop, because i think we fixed the problem look, i understand where you are coming from. and i know i won't be invited to a lot of conferences going forward. but the fact that you bring that up in that way says that, hey, we know there has been this kind of problem that we have beenity hiding but it works for everybody so let's keep doing it bill ham brick started tilting against this in '99, larry and sergei cared lot about this. and then garry mccarthy, who stacey mention who had is really the guy that pounded the door down but daniel and dustin, and

stewart, and alex carp, who made this all happen. so, you know, it really is, for me, fighting on behalf of the entire venture capital community and the start-up community who i feel like have been exploited for a very long time you had jay ritter on. he has all the data. it has been remarkably a one-sided game it is great it is going to end it is great for everybody. we are even going to have a more efficient capital market i think it is awesome that commissioner clayton did this on his way out the door i think it will be a lasting legacy for him >> well, on the point about more official capital -- efficient capital markets imlooking at a stock price of slack which was one of the poster children for the direct listing didn't get back to its direct listing price until salesforce bought it. is that really the best way. >> is that -- let's look at it scientifically rather than looking at a one-off data point.

if you looked at jay ritter's data, you can see that this underpricing has been happening for 40 years so that's looking at all of the ones that go up, go down, everything else. clearly, there are traditional ipos that have broke issue would you blame those on the ipo process? i think how you dip publget pubd what your stock does after you are public are two different thing. >> how would you characterize the doordash and airbnb ipos and opening pops what words would you use to describe those two events. >> it is outlandish. like the process -- the ipo process actually got worse over the last five years rather than better and the bankers convinced everyone that you just wanted to meet with a handful of investors. then they used this phrase -- you can ask them about it. they told everyone they want to be 30 or 50 x oversubscribed

if you think about just the baseline, you know, economics of apply and demand who in their right mind would choose to be 30 or 50 x over subscribers they looked at you with a straight face and told you that was the objective. it is total logical that these things are underpriced because they are running a process that doesn't match supply and demand. like i said, i don't have to bitch about it anymore because it is over we just got a brand-new solution it is going to be fantastic. >> yeah. and you are a major advocate some people would see that price action bill in the first days of ipo, and just the entire ipo market, some of the areas of the market as well and say it is reminiscent of 1999, tech bubble, deja vu. are you feeling that are you seeing that? >> well, look, it's the -- you know, the last time that we had one-day giveaways this big was '01. so i think that's a fair question to ask.

we are also seeing unprecedented revenue multiples like in the sass space people will argue it is because interest rates are so remarkably low and that effects eps and you are going to have an adverse relation between interest rates and any valuation mechanism. it is easier the find stocks you call expensive than stocks you will find cheap today. it is hard to argue with them. >> i don't think you used the word bubble, though. >> i used it about five or six years ago. and i was wrong -- >> we have got to make a headline, bill. >> fair enough. >> bill gurly, thank you for joining us, we appreciate it. >> thank for having me >> we are getting some breaking news from the treasury let's go to kayla tausche in washington >> sara this has to do with financial regulation specifically with short-term funding markets. after short-term funding markets seized up back in march,

president trump assigned tre eed treasury to lead the working markets which came out with a report today it is essentially a menu of recommendations for future policy makers to choose from and treasury, the s.e.c. and cftc, members of this, notably did not endorse any specific policies but merely set them out for future policy members to consider among these policies they really took aim at money market funds and noted that outflows in money market funds back in march are essentially what required a significant intervention from the treasury and the fed

sol of the member dags

now is the time.

the retailers have been very strong over the last few months. if you look at some of these gapes, comeback stocks like under armour up 50% over the last three months period tapestry up 80% over three months you wonder if some of those begin to look overvalued given what is happening actually on the ground with consumers or if it is all a play for the future next year. >> you hear it repeated constantly that there is $1.2 trillion excess in aggregate in consumers pockets. that's got to go somewhere i think a lot of the stock market action is based on the idea that you have this potential energy that's built up through this period even if it is not evenly distributed by a long shot. >> all right, mike thank you. see you soon sports betting it has proven to be a big winner for draftkings stock which has skyrocketed more than 200%

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the lucrative nba season tips off today, just months after the lakers took home last saenz crown. the tip-off coming as 18 states have now legalized and launched sports betting beneficiaries like penn national gaming ballies and draft king have seen their stocks soar this

year let's bring in draftkings north american president and cofounder matt kalish. welcome. >> hi, how are you. >> great excited about the nba tip-off tonight. >> it is the most wonderful time of the year. nfl, nba, college basketball, college football, everything is going on everything and packed with the sports schedule and trying to bring great content to our assumers >> from the prior segment to yours talking about the consumer and the what the other side of the pandemic is going to look like once everybody is vaccinated do you anticipate any drop of in your action once people are vaccinated and you get butts in seats again rather than butts on couches? >> well, it has been a wild year you know, the content has changed rapidly.

month to month we had some months where e sports and table tennis were our biggest sports in sports book. looking forward, i think schedules are starting to shape up and we will react to whatever happens. try to surface the best content for your consumers day in and day out. >> do you at all anticipate that i am thinking the person sitting at home. try to do a little bit myself. but the people who are sitting at home who otherwise would be going to the game, maybe are not looking for same kind of rush, if you will, of sitting at home and wanting to have some kind of feel that they are involved in the game itself -- do you think or worry about that at all >> well, i think there has been a long term trend in the industry where more and more the activity has been taking place on mobile. if you look at markets like new jersey, you see overwhelming

amounts of demand is coming in through mobile versus retail sports betting i think that trend will continue over time, you know, the digtization of all the lay. >> trying to gauge what's been going on with demand how is the appetite matt for nba betting this year versus last year >> tonight is the opening tip-off so we are running really strong promotions. i think we will have a better idea after tonight in our fantasy product we are running a $1 million top prize. in the sports betting side we are running a promotion where our consumers can pick any team playing and get 75 points on the tread is as long as their team doesn't lose by 75 you are going to win that bet it has actually never happened i think the biggest loss was 68 points once the season gets rolling, we will have better idea for it but looking forward to seeing on

the shape up. >> i can't believe i am asking this question, scott, not you. but lebron chasing his fifth title. the lakers are obviously a favorite are people still betting big on them given they are the favorite >> yeah. so the lakers are the favorite they are 3 to 1 right now in the preseason. lebron, anthony davis are coming back they have gotten over a third of the betting action so far, 37% going into tonight's tip-off the second most bet team is also playing tonight. at 6 to 1, it is the brooklyn nets so we are seeing some of the early customer sentiment coming in our customers like to whack i think the big favorites a lot. they like to back the home teams. it is a broad, casual audience i think teams like the lakers ha are very appealing >> how have you dealt with the logistics of games being moved or canceled or players testing

players who then get removed from the lineup on that given day and having to deal with -- i can't imagine the logisticscal challenge of having to figure all of that out and do it in a real time basis after people placed bets assuming one thing and something else happens. >> yeah. this is what we do draft kings is a live operation. things change all the time there is injuries, cancellations, rainouts, our team is accustoms to evolving with whatever is going on in sports we have a great team, i think an incredible technology platform that's very, very scaleable and adaptable to anything that guess on in sports you know, it's taking a little bit of extra energy to keep up with all the news. there has been a lot of things going on i remember with thanksgiving, you know the night game getting canceled we had a really big promotion and a bunch of tv running, radio, and that required a lot of different quick manufacturing

on my team's part. but you know, our team is extremely adaptable, very flexible, and top-notch across the board, top to bottom so, you know, we are doing our best you know to keep the best content surfaced for all of our customers. >> appreciate it enjoy the tip-off of the nba tonight. nfl playoffs as well around the corner matt kalish joining us from draftkings. wealth management for the masses, one of the of wall street's most prestigious firms ki a mmangove to attract investors on main street we have got the details when "closing bell" comes right back.

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learn more at xfinitymobile.com. it is time for a cnbc news update with sue herera. >> hello, scott, hello, everybody. here's what's happening at this hour president-elect biden calling out the trump administration for what he sees as its lack of effort to halt cyber attacks and the president's reluctance to say russia is responsible for a massive data breach. >> the truth is this the trump administration failed to prioritize cyber security it did that from eliminating or downgrading cyber coordinators in both the white house and at the state department torque firing the director of

cyberspace and infrastructure security agency. to president trump's irrational down playing the seriousness of this attack. enough is enough. >> californians are being warned, it is too risky to celebrate the holidays normally. new models show the need for hospital beds for covid patients could soar to 100,000 next month. hospitals are already struggling with just above 17,000 covid patients you are up to date sara, i will send it back to you. >> sue, thank you. sue herera. up next on the show, find out why one financial services giant known for catering to the ultrarich is now setting its sights on anybody with $1,000. as we head to break check out shares of magn ayete at the top of the hour laura needham told us it was her top pick for 2021.

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2020 has seen the rise the retail investors and now, goldman sachs, the firm known for catering to the rich, is preparing to offer wealth management for the masses. cnbc.com's hu sun has the details.

mike santoli also here to discuss this one what have you heard about what this initiative is, what goldman sachs's goal is. >> we have our hand on an internal memo that invited goldman sachs employees to take part in this they are charging 15 basis points, relatively cheap, and you be start with as low as $1,000 they stay away there the word roboadviser. they think goldman sachs fools like it uncuts the human minds, the human intelligence that goes into creating these portfolios but it essentially is a robo-advised product. >> mike, look, i get this is another step for goldman but it is not exactly ground breaking in terms of goldman has had its eye on the so-called every man and ever woman for a while now. whether it was the apple card or personal loans or savings accounts this is just another move in that vision it seems to me >> for sure. certainly on the lending side as

opposed to the investing side. extending the brand. post global financial crisis when all the banks were forced to become holding companies with all of that involved, good and bad. you had the infrastructure with all the of data and all of the investment models. why not essentially roll out a broader suite of services probably with the perception it does less to dilute whatever brand value that still remains in the very, very high end wealth management business i don't think there is a sense anymore out there that if you are a client, high touch klein of goldman sachs for that matter, morgan stanley or anybody else that somehow you are less likely to stay with that firm simply because they also have this automated software based investment product. i think it is a recognition of the way the world has moved. >> how do you -- what do you think is at stake here, hu, for goldman sachs in this pivot toward more main treatment

investors? >> a couple things previously the private wealth management group categoried to ultra high net worth, $25 million and up last year they bought united capital for the single digit millionaires, 1 to $ clearly everybody is hunting for it it doesn't have the computer algorithm that can do it cheaply. if it's a scale play from goldman, they need to broaden their customer base. and they need feeder clients for the white glove part of their business what you have seen with morgan stanley is a different scale business that investors really like higher, annuity type businesses with up and down in

market capital this is where you want to get to scaling. >> you can read more on hugh's story as well as cnbc. wa walmart shares under pressure. we will be back right after this on "closing bell." with a bang,

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check out shares of walmart. ending lower after report of a lawsuit centering around the opioid crisis. the doj claiming they underchecked for speed and walmart said it is cherry picked documents taken out of context. shares were down about 1.25 today. sarah? >> will this ipo lead to the end

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is there a time where you see the traditional ipo process literally going away >> unquestionably. i can't imagine in my mind where you can do primary offerings

through direct listings by any board or ceo rather than go through this archaic process that goes through massive wealth exchanges. in 2006 it was 6 billion this year it will be 34 billion in one-day give aways. >> provocative what do you think? >> i think it is overprovocative to call them one-day give aways. that is saying the underwriters know where it will trade on the day after the ipo. the day after we had context logic come out, ticker wish. it never traded up

uber didn't get a pop. there is as much art as science. i think this plus capital rates is incentive some issuers will want more control in certainty over the amount of proceeds, how it gets dealt and whose hands the shares end up in. >> at the end of the day, the underwriter is just the adviser. they make the final call >> that's right. they always give the green light. it is also a little fun that we have venture capitalists who price venture rounds that there are guys at a table deciding what the value of the company is at that's what they are accusing wall street of doing i also think the ipo process creates a sense there will be a pop and then you have these crazy pops because it is the kind of pop that goes from 106

to 140 everybody is psychologically there just to get the pop of 140. >> that wraps it up for us tomorrow there will be a new report that we are close to another vaccine order. i'm melissa lee and this is "fast money. tonight's landup time to play defense one top technician is finding opportunities in names we will tell you where and solar flare. and why would apple want to get in the car business? what it means fo