use it on the mountain as well sounds very cool, especially watching those hopefully harmless falls bode miller, appreciate you coming on cnbc best to you and your family. happy new year thank you very much. >> absolutely. thank you guys good stuff, brian. >> not quite like bryce or -- >> virginia doesn't really have the ski slopes see you next time. thanks for watching "power lunch. "closing bell" starts right now. kelly and brian thank you. welcome to "closing bell." i'm wilfred frost with sara isen final days of the year it is off the highs of the session today. let's have a look at what's driving the action uk approving astrazeneca's vaccine for emergency use. that's helping sentiment wall street also weighing

prospects of potential fiscal spending as stimulus checks begin rolling out to americans dow up around 70 points with 59 minutes left in the session, sara. >> bitcoin is zooming. the dollar is weakening. we will speak exclusively with professors, sir john bell of oxford university. he helped lead the development of the vaccine with astrazeneca. just got approved today. how long it could take to vaccinate the uk and the timeline for approval in the u.s. plus the master of negotiation, rapper and entrepreneur master p is teaming up with former nba all-star baron davis. they'll join us to talk about the deal if it goes through. mike santoli tracking the market ylan mui has the latest on the $2,000 stimulus checks and the question whether that will pass in washington.

mike, start us off with the action you're seeing in stocks. >> yeah, sara. some drift upper tilt all day especially among the hovering here couple trend lines nothing out of whack we're on track for a 15.5% gain for 2020 in the s&p 500. while it's amazing, given where we were in march they're perfectly on trend now it's 15% gain annual wise since the 2016 election. also since the 2009 low. even though things seem like they're ahead of themselves on some respects it's really not necessarily a change of the longer term return trends. take a look at the one way of viewing the aggressiveness or defensiveness of the market. anti-beta etf. it essentially is long, low beta etfs, very, very stable stocks

it is short high beta stocks the more risky, aggressive, cyclical stocks. massive decline right here since early november, which has been a beta chase everyone going for the riskier stuff. but it's not unusual to see this toward the end of a year we still were at the end of 2016 people wanted the riskier stuff, stuff that would do better in a better economy we saw it at the end of last year as well relentless fourth quarter rally in 2019 that carried over into early 2020 the question is, did this sort of bottom out and reverse? we saw some tentative signs that maybe we're going to be rotating back toward some of the quality, some of the steady type names. we'll have to watch that it's been very pronounced. the stuff that moves the fastest, you might say subsector of financial services. boutique sector banks, evercore, hoolihan, pgt. all of them are independent

boutique investment banks, advisory services. the strength has to be one reason that perella wineberg has merged with a spac to become publicly listed. it's very much a bull market phenomenon when the small, invested banks will be busy with deals and have a lot to do out there in terms of capital raising as well. mini trend going on, guys. >> definitely speaks to the environment. the line you used in your note today, a lot of the crazy has been skimmed off the top of the market in a relative hurry, with the momentum names selling off was that it? is that enough to take the so-called froth out of the market and make it healthier upswing here >> i don't know in a blasting way, sara, if that's enough t does relieve the pressure a little bit and bleeds away the sense that everything was too easy for a time. i'm talking about not just tiny little stock bus recent ipos, snowflake, palantir, lemonade,

the insurance stock. all those things that seemed like they were going to go one way and at a very vertical angle. they've come in quite a bit. russell 2000, we talked about that ipo etf, we talked about that yesterday. pretty significant pullbacks, 5, 8, 10% the last few days and they're all bouncing today probably year-end rebalancing and tax concerns driving that action the past week or so. >> okay. mike, thanks so much for that. the dow currently up only 70 points so near below the session, .2% the $600 stimulus checks are on the way to americans but whether congress will bump up those checks as president trump requested still remains unclear. ylan mui has more. >> reporter: the $600 stimulus checks signed into law earlier this week are starting to go out the door if you enrolled in direct deposit when you filled out your

2019 tax return, that money could be hitting the bank account even though the irs says the official payment date isn't until january 4th. if you don't have direct deposit, paper checks and debit cards are starting to get mailed out today and that process will continue until the end of next month. on the other hand, the outlook for increasing the size of those payments to $2,000 is looking pretty grim. the senate won't even start debating this measure until it's after already voted on whether to override the president's veto of the defense spending bill this will take a couple more days to play off now that republicans are bundling the bigger checks with a repeal of section 230 and report on election security that, means democrats are not going to support it. guys, in the off chance that congress miraculously strikes a de deal, the irs says anyone who has already gotten a $600 check would be quickly topped up to $2,000 back to you. >> ylan mui, thank you

professor sir john bell, the man who helped lead the effort to develop the oxford astrazeneca vaccine which just approved uk approval when that might get backing in the u.s. you're watching "closing bell" here on cnbc save hundreds on your wireless bill

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the uk approving astrazeneca's vaccine for emergency use. joining us now, from oxford university, professor sir john, thank you so much for joining us today. first and foremost, big congratulations. no doubt a proud moment for you and your team to get to this point. my first question was what exactly has been approved today, in terms of -- and what will be rolled out in terms of doses, timing between doses and the likely efficacy of that? i know there has been some confusion over those points a month or so ago.

>> yeah. so we're lucky, because the associated committee, joint committee for vaccines have taken a lot of time looking at all the data they've done their own separate analysis of the data and their recommendation is really based on their evaluation of our data. and all that instantly is available through the mhra label, published today where they've come to is that they have approved the two-dose combination, standard dose plus standard dose, for all individuals over the age of 18 we don't have any trial date for youngsters so it's over the age of 18, including those over the age of 65 with no alteration dose for those over the age of 65 and their assessment is that this vaccine is efficacious to

the level of 78% but a single dose will also provide 70% protection, which means that the uk is going to roll this out, giving a single dose and then allowing flexibility to get the second dose any time from a month to three months after the first dose, which gives us an opportunity to really lean in to the epidemic at the moment and get lots of first doses into people, because they appear to have a substantial efficacy on their own. >> and as you just said, all the data supporting that, leading to that decision by the uk regulators is now public there had also been some stories over the last week that eu regulators, for example, had suggested they haven't seen the necessary data yet. >> yeah. so, the eu folks are seeing all the data whether they've seen it all

today, i'm not sure. but all the data is obviously being made available to all the regulators and they're then free to go off and do their own evaluations as the mrha did as well quite a lot of the data is in the paper we published a month ago. but there are additional data that should have gone to the regulator regulators. >> the prime minister today, professor sir john, suggested that the uk could be back to normal by early april, possibly even late march. is that something that you think is realistic >> well, yeah. i predicted that some weeks ago. although that was perhaps a rash prediction but nevertheless, i think it's now looking increasingly likely we'll get ourselves in apretty good place by easter astrazeneca will scale up the manufacturing pretty dramatically over the course of the next few weeks and with the

pfizer vaccine -- we also have the pfizer vaccine in play and a little bit of moderna. the system is really geared up to get a lot of doses in to people very quickly. and we're optimistic that we could get 25, 30 million people vaccinated by the end of february and perhaps more. >> what is your expectation for getting fda approval here in the united states? and what is the process from now to do that >> so, that -- that interaction with regulators in the hands of astrazeneca. not involved in that except to support. i would have thought that the fda will want to look at the data seen by the mrha, do their own deliberation on it given the fact that this vaccine is deployable in a way that none of the other vaccines are, it's really easily deployed cold chain is four degrees,

could be distributed by general practice, in a variety -- distributed in a variety of ways i think the fda would probably be pretty interested in seeing whether it, too, can make a positive recommendation. in the end that's really up to them that's what we have regulators for, is to take independent decisions. >> professor sir john, two of the questions that often get asked as it relates to this vaccine, whether it's from the fda here in the u.s., or around the world. one was that moncef slari said for one there weren't enough old people enrolled in your trial. the other one is questions as to whether it's totally safe. there were cases of transverse myel myelitis and multiple sclerosis during the control can you address those two concerns >> yeah. i'll start with the latter one there was a massive safety database with this study i think 75,000 patient months of

safety data. there were some events, indeed there were a number of events. many of them occurred in the control group. there was really only one that occurred in the treatment group that caused a pause in the study and where we looked and evaluated it carefully the data monitoring safety committee went through all the appropriate hoops to make sure that there was no evidence that it was causally related to the vaccine and gave it a clean bill of health. that then went back to the regulators here, that allowed us to proceed with the trial. the level of trouble here is very, very low indeed. there's really very little adverse effect risk with this vaccine. >> i'm still trying to figure out why a two-dose shot would be approved by regulators, sir john, if the one dose turned out to be much more effective, and

why it's sort of confusing who gets how many doses and what the east fficacy rates are. were you able to figure that out? >> yeah. so the -- the efficacy, which the mhra has approved on, 70% efficacy, the same as the efficacy that you get after a single dose. it's important to remember there are other characteristics of vaccines that are equal important as the top line news on a press release, and one of those is durability, the ability to create the best plausible antibody response that's likely. it will last longer. and what we know from immunology, a single dose can often produce levels of antibodies that will protect you had the short term but they wane after a relatively moderate length of time high quality antibodies come from boost and that's both

high-quality antibodies and the generation of a group called memory b cells, the way your body recognizes the infection. so the crucial thing about the second dose was about durability and the nature of the immune response it's very important to have that second dose. >> professor sir john, clearly there's been a lot of headlines over the last three weeks or so about this new strain of the virus. reached colorado, in fact, yesterday. do you think the vaccine will protect against that >> yeah. so, of course, that's the $64,000 question we're looking, obviously, actively, because we've got all the samples taken from people who have been vaccinated and can check to see if the antibodies we generated with the vaccines can actually neutralize the new strain of the virus and those experiments are going on right now. we think they probably can

but we just want to be absolutely sure. we'll also, of course, given the level of december ♪ uk with the new variant, whic is now reaching 70% to 80% of all the diseased in london, for example, we'll have lots of examples of people who have the vaccine, who get exposed to the virus and will be able to tell quickly whether, indeed, the vaccine is protective against that strain. a more worrisome strain is the south african strain, spreading very quickly in south africa it's got some rather chunkier looking mutations that really do change the electro static nature, which will mean it's going to be pretty hard tore neutralizing antibodies.

look, this is going to be a can game of cat and mouse. if we need new vaccines, we can do them. we're ready if we need to make another vaccine, to approach it. just to be clear, i doubt that will require the full kinkal trial protocol it will probably involve initial studies and be able to be approved after that. >> fairly reassuring 70% efficacy rating would be historically very good but we have these other two that are more than 90% efficacy if i get your shot how will i know i'm in the 70%? do you recommend people get blood tests to make sure they're not part of the 30% where it doesn't work >> very important point. the two trials are very different. the two trials had completely different end points you can't compare one number to the other number this has been a mistake that presses me from the beginning.

they started with different populations with people. in people with severe disease, it works very well and less well with people in less severe disease. the two populations are different in the way that would make -- efficacy end points were also different during the two studies. it's very difficult to compare these straight across on top line figures now the most important thing is that we have had -- the most important thing is to stop people from getting this disease and dying from this disease. we had only two people they clearly had the disease before they were vaccinated and the other one developed a vaccine in

eight or ten days. it was re early on it depends where you make the cut as to when you would expect to have antibody levels that will protect you. >> professor sir john, to wind things up, how impressive do you think it is that a knot-for-profit institution develops this vaccine? where do you rank it on the scientific developments you've witnessed in your career >> obviously i'm a bit biased on this one you'll forgive me for that, i suspect. this has been a pretty substantial and impressive effort from a great team of scientists sara gilbert, who really did the

development of the identification of the vaccine, who had been working on mers before, and andy who ran the trials owe ai whole bunch of people who ran the trials did, the development, preclinical work. it is really, really impressive. there's no other university in the world who has done that, particularly done it in that sort of timeframe. so i'm very, very proud of the team it's an exceptional output it does show, i think, how really important that publicly funded base that exists in america and in the uk actually is to make sure you got that capability, that you can pick up these programs and run with them when you need to. >> hear, hear. congratulations again, professor sir john good luck with the rollout with astrazeneca. professor sir john bell from oxford university there. >> thank you so much bye-bye. still ahead on the show, from a tesla acquisition to a

trader exodus, taking a look at some of the boldest predictions for wall street in the new year. plus, a reebok buyout in the cards for 2021 rapper master p and former nba player join us next.

>> welcome back. it's time for a cnbc news update with leslie picker hi, leslie. >> hey, wilf, thank you. here is what's happening at this hour in california, governor gavin

newsom calling on schools to resume in-person education starting with the youngest students he is promising $2 billion in state aid for improved testing and better ventilation of classrooms. in georgia, investigators have audited the signatures on more than 15,000 absentee ballots and found no evidence of fraud. georgia's secretary of state says the audit disproves the only allegation of the trump campaign against georgia's signature match process. and in norway, houses teetering on the edge of a ravine after a landslide smashed into a residential area near the norwegian capital. 11 people are still missing. more than 900 have been evacuated. and dawn wells, who played mary ann on "gilligans island," has died from complications due to covid-19.

she was 82 years old that's your cnbc update for this hour back to you. >> baron davis and master p teaming up to make it big for the reebok brand. >> quick check on yields for you. before retreating. lower yields mostly across the board. .925 17 education & technology is a leading education technology company in china it creates a more efficient, effective, and engaging personalized education experience for teachers, students, and parents. we are so honored to have 17 education & technology join the greatest new economy companies on nasdaq to make the world a better place.

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the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home. bitcoin mania still on check out the price, up to new record highs, 28,845 scaling new heights. whether it's the weakness in the dollar, strength in stocks all of that has helped propel bitcoin this year up almost 400% more than 300% the value almost quadrupling with a lot of big investors getting interested in the crypto currency hip hop business mogul master p

miller and baron davis is looking to make a deal with adidas to buy reebok it would make the shoe giant the first black-owned major sneaker brand. joining us now is rapper and no limits founder master p and nba all-star baron davis welcome to both of you master p, what is the state of play where do negotiations with adidas stand right now >> well, right now, for us, we just happen to be able to have a seat at the table as african-americans, because we are the ones who -- my deal is, we'll change the game with this, make history from our culture, where we come from, negotiate billion dollar deals. this is just a blessing. and it's going to take a while this is a company that is struggling the only way this company could

turn around is with us, being owned by african-american energy, because this is what we need we buy tennis shoes. this deal is going to open up deals for other african-americans. this is going to take me and my career to the next level master p was able to do a deal like this. even if adidas don't want to close this deal with us, we'll be able to do banking deals, open up other avenues. my main thing is being able to educate our people, show them that these deals are possible. and we put our trust and faith in the lord, we're going to change the game. i'm looking at not only with me and baron, we'll be able to bring shaq to the table. i got into the food and product business we're going to be able to open up other avenues and doors i also want to be able to market and promote other small business products

so i'm starting a challenge to give our culture an opportunity to say let's market it out if they don't give us this deal we'll create multimillion dollar deals in our community, in our culture. >> a lot to talk about there just in terms of the reebok asset, if you areg going to continue to pursue this, adidas bought it in 2005 for 3.8 billion. what do you think it's worth you mentioned it's been struggling. >> yeah. this is a struggling company we would not pay 2.5 million for this company it doesn't make sense. that's what i mean by educating our people i'm going to be one of the richest guys in the world. plant no seeds, educate ourselves on financial literacy. i think this company is worth maybe $500 million so, when we get down to the terms, we're going to show adidas why this company is where it's at and why they should sell

to us. allen iverson was the model, the face of this company we're going to change that why should he be sitting around, waiting on money when he's getting 35 million a trust fund? they sold that company for $3.8 billion to adidas. we're going to change the narrative. i feel like this company, and any companies out there, we're going to be able to acquire those companies now. like i'm just excited about that, because this is one of many like i said, we're going to open banks. me and my other partner, james lizzy, rap snacks, uncle p cereal open ing up avenues for african-americans to go after big deals where we didn't think we could do it i just love that we'll educate our people and show them we're not going to buy companies for $2.5 billion that would never happen. >> and so if adidas wanted more for this asset, would you and

baron consider launching your own brand rather than buying what you're saying is already anyway a struggling brand? >> yeah. so the great thing about this, right, reebok, if you look at all the major companies, we need this brand nikes, under armors. we're going to create these other brands i have my own brand right now. what yeazy did for adidas we don't want to go in there and get a deal but give it to other designers, partnerships. by us buying this, this brand already has distribution so we know if you look at what allen iverson done for this brand, he is the michael jordan of this brand. imagine if michael jordan owned nike and had shares in t i don't know if he has shares now but i'm saying, looking at it, where would he be? we are the people that buy tennis shoes, african-americans, latinos. we buy a lot of tennis shoes

not only start and create our own brand but have the opportunity to get a brand that has equity value still and that's out there, that we can efurbish, give it a makeover reebok is going to go black. we're going to help other people create brands and invest into us this is only the beginning. >> baron davis had some audio issues glad we fixed your shot and welcome to you wanted to talk to you about this reebok deal. master p has been talking about allen iverson. obviously huge intellectual property there, shaq pumps there's a lot you could do what do you see as the future for reebok and how to turn it around and why it's been struggling >> reebok lost its luster when they really got out of sports and got out of sports performance. i was tied to reebok, i think,

for four years at that time, it was all about innovation reebok were taking chances and a lot of the athlete shoes, lot of the entertainer, rapper shoes. just like cultural collaborations were happening at a time and a point where you know sports, basketball, music and entertainment was trying to figure out how do they all play in the entertainment space for me, i think bringing pack of that essence back, right, these athletes that we know now are mul multi, their own creators. when we say cultural ownership, we want to be able to really empower the youth, to be designers to understand the brand and also inspire professional athletes to take ownership in their brand we feel like reebok is a great

opportunity and a legacy play that's recognized globally in over 40 other countries. and to have that ability to be the collaboration brand for athletes, for other cultures, for this new african-american eye on inclusion, right, and how to build a company, you know, based on, you know, black owned and black owned inclusion is, you know, a golden opportunity and our culture will support us because the culture has already been there to really spend the money and help reebok grow to where it is now. >> and, baron, culture is one side of it sports, of course, another side of it. under your ownership, would you see reebok as mainly focused on basketball, or are there other sports you already have in mind and stars from those sports you would like to bring into the fold >> yeah. i think sports -- you know, sports is also a huge

entertainment platform so when you're looking at basketball, football, hockey, lacrosse, mma. and then also the sports brands, right? a lot of these street cultures, sports brands that are popping up with these young and dope artists that are creating for our other brands we talk about sports holistically, imagine all the great things we can do in golf, putting our culture in golf. e-sports when i say sports i think that basketball is definitely a lifestyle culture. sports in general has this lifestyle and this culture inside of it that allows, you know, us to be collaborators, you know, from the start. >> master p, are you -- i feel like you're sort of criticizing the whole sponsorship deal as it is right now you talked a little bit about kanye and yeazy under adidas and

jordan under nike. i'm all for black-owned businesses and more talent-owned businesses jordan wouldn't be able to have the scale, manufacturing capability, the technology, the retail partners, all those things that come with being under nike to make it so big. >> that's what i'm saying. it's important for us to have ownership in it, because we've only been the face to these type of brands. and we actually built these companies by african-americans purchasing and now we're saying we don't want to just be consumers. we want to be producers. we want to be able to put money back into the community from these brands that our culture built. and i talked to president of sports for rock nation, raymond brothers he talked to me about finding new young talent, like baron said being able to control the narrative. we've never been able to do that i'm taking a page out of

reginald's book. he was able to acquire billion dollar companies, being one of the first african-american billionaires that i know of, saying you have to start from somewhere. [ poor audio ] sports and entertainers. i'm saying let us be owners. let us be able to rebuild our community. [ poor audio ] being able to take a company like reebok and other companies even if we can't do this company, that we are going to go, we're going to educate our culture. just like i got in the music business, planning to sell hundreds of billions of records. [ poor audio ] we can partner up with the right people we can put these deals together. this is going to be an african-american owned majority of the deal.

that's the way it needs to be. it can't keep being lopsided so we don't have control and we don't control the narrative. we could build more companies and more brands like reebok with african-american people. a lot of these ideas come from us that's the only thing i'm saying [ poor audio ] >> guys, we're out of time also, the tech connection isn't great. keep us posted on this deal and any others thank you so much for coming on to talk about it master p, baron davis, good to see you both. up next, restaurant sales slow top idea for 2021. those stories and more when we go straight inside the market zone next. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home.

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just about ten minutes left in the trading day commercial-free coverage of all the action going into the close. mike santoli here, as always, to break down the crucial moments of the trading day and josh brown from ritholtz wealth management let's kick it off with the broader market off the session highs. dow is currently on track for a record close-up 114 points still up nicely, mike, for the week it feels a little holiday trading. what are the themes? are we watching washington and those stimulus checks? >> certainly watching them but not all that sensitive in terms of price moves the market is more or less enjoying the tail winds of the seasonal period and the fact that strong trending markets

tend to finish strong against the idea that people have jumped all in and have a lot of gains in the faster-moving stocks right now. some of them got trimmed back. that's the dynamic going into next year. >> i'm in sweat pants, you can't see the bottom half, thankfully. josh brown, up at the moment given the outperformance tech has had two years in a row, does that make you worried it can't happen for a third year? >> great question, wilfred by the way, i'm super jealous you had master p on. sara, did you ask him if he has seen my demo tape i sent 20 years ago? i was grand master p back then. >> i believe it. >> no, i'm dead serious. to wilfred's point, tech has

been outperforming for five years. a very long period of time it's definitely a concern and people are starting to think about where the puck is going to be take a look at the leaderboard top three sectors, materials are this close to a massive breakout having a huge day, another breakout after several breakouts for that name. there seems to be no sellers there. take a look at the second best performing energy, and then you've got industrials in the top three. people are thinking about a global recovery next year and they're buying the economically cyclical sectors one thing i want to spotlight that coincides with that quic y quickly, emerging market stocks. on an absolute basis, they've already had a major breakout now on a relative basis versus the spy, versus the s&p, you see emerging markets i like to follow the iemg etf,

by the way iemg ratio chart versus spy is now breaking levels we haven't seen since january of this year, prepandemic. it's not just chinese stocks mexico looks great brazil looks great all of those things are kind of tied together. weak dollar. overseas markets ovutperforming the u.s. market right now. big moves in materials watch this space people are looking at these as what the market could favor next year and they're not trying to be overly tech right now you can see that in the fund flows. >> but, josh, all of those themes, pretty much all of them that you mentioned, require the dollar to continue weakening do you get worried that's already a consensus call for next year? where the dollar has softened 6, 7% already >> it could be and that certainly could reverse. that's what makes this game a

game worth playing just when it seems like you found the key to the market, they change the locks, right i do think that a lot of people are thinking about the dollar as a secular weakening story, something that plays out over time the evidence of that, by the way, does tend to happen in four and five year strikes. we had a period of time from '03 to '07 wasn't a bad time for u.s. stocks but it was a great time for internationals, specifically emerging that was a weak dollar pooep period relative to the euro. so you could see that kind of streak play out overt over the course of years just because we had it in the second half of this year doesn't mean it's over i do feel that a lot of people believe that's where we're headed the herd has been right on technology for a long time the herd has been right about not fighting the fed for a long

time i do think that the crowd outsmarts the contrarians except key turning points do you want to bet this is the turning point and everyone is all in, short the dollar i don't know that you want to make that bet right now. >> shares of caterpillar meantime jumping today, leading on the dow after its price target to $220 from $206 bear called caterpillar its top 2021 idea, demand in key markets are set to rebound and caterpillar's 2021 comps will be ease toy beat. mike santoli, some of the reasons that play into that call would play into what we were talking to josh about as well. >> exactly earned adjusted, more than $11 a share.

i think it's pretty much a paint-by-numbers call on that front. we have to see if demand actually does manifest in the caterpillar type machine, machinery type businesses as the economies come back. >> let's turn now to restaurant stocks that industry seeing big declines in sales and traffic around the holidays this year with the covid surge kate rogers has more new details. kate >> sara, that's right. december is typically a very busy month for bars and restaurants. not the case this year for the week ending december 20th. sales and traffic saw their worst weekly results since mid june sales dropping by 16.9%. traffic down 20.9% year on year. with covid cases spiking around the country, varying restrictions in place and weather getting cooler, things like lick won't turn around any time soon. full service concepts continuing to struggle more than limited and fast food concepts and older diners above 65 are staying home

in larger numbers and avoiding dining on site the restaurant association says 110,000 locations are now closed either temporarily or permanently. 10,000 of those closures have happened in the past three months alone while independent restaurants continue to struggle, fast food really doing well this year. some of the best performers of the year, wing stop, domino's, and shake shack. back over to you. >> kate rogers, thank you very much josh, what about the public restaurant stocks? are you still buying them? hasn't been too concerned with falling traffic looking ahead to next year and also gaining market share. >> yeah. i've never bought them i've just never been an investor in these names they remind me of the apparel stocks where they tend to be like in style and then out of style. and it's really tough to call those turning points when that's going to happen. i've never been an investor in the full service dine-in national chains. i think they continue to be

challenged i'm in shake shack i love chipotle, domino's. these stocks continue to work. they don't require the reopening, but the reopening is not necessarily going to hurt, right? the reopening, i think, is important for some of them, more so than others, but they'll all benefit for that but they can wait for it the chains really can't. if you need somebody to sit down at a red lobster and put the stupid bib on, you might have to wait until june for that those stocks are not moving in advance of that happening at the rate that the qsrs are i'm not in those names i don't really follow them not a fan. think it's easier to make money elsewhe elsewhere. >> at the two-minute mark for the trading day. mike, what are you seeing as we head into the close? >> pretty positive skew. we've had a bit of a weak patch. prior two weeks has been a net increase in declining volume,

overadvancing volume revival after, like i said, three days banks against utilities. everyone is positioning for higher yields and better growth. it's almost a 9%, 10% swing there in terms of relative performance. very twitchy 22, 23 people are definitely hedging toward some january risks, something like the georgia r runoff and such has a little bit of an instinct, protect the downside after a very good year. wilf >> just under one minute left. we're splitting the difference between the highs and the lows of the day today dow currently up 100 points, was up 190 at the high only up 50 points or so at the low, which came at the start of this hour. we've had a nice little roefr in the last hour or so. .2% gain for the dow

less than that for the nasdaq. russell rebounding today only one of the four indices in the red so far this week the worst, communication services also soft dollar day positive day for gold and silver, a very positive day. 7% for bitcoin dow is up .25% nasdaq up .14% sarah? >> record close on the dow another record high. welcome back to "closing bell," everyone i'm sara eisen here with wilfred frost and mike santoli second to last trading day of 2020 there's the dow, up 73 points. new record, closing high, up .25%. up about 6.8% for the year for the quarter up almost .10%, third straight quarter of gains. s&p closed sort of flattish.

strength in groups like energy, materials. weakness in communication services, technology and consumer staples the nasdaq, the big winner of 2020 up more than 40% closed higher, up 19 points russell 2000, a very strong run lately, small caps doing well, up 1%. big winner after it got sold hard yesterday down 2% coming up this hour, bradley tusk is here with his outlook for 2021 and the companies he's putting on his radar financials in focus. a top portfolio manager outlining risks for next year and three stocks that could see big gains. the market day, josh brown of ritholtz wealth management is still with us, robert nobles joins the conversation welcome back, robert first, mike, i'll turn it to you on the rally we saw in small caps how is this all setting us up for 2021 trading, coming off a

strong now quarter and year? >> yeah, powerful move in the small caps, in a lot of the riskier, more cycleal years of this market. what's interesting is the overall large cap index, we look at the s&p it's been on an orderly guide path higher. along the way you've seen a lot of wild parabolic, speculative moves. then you saw a little bit of a shakeup in that area the last several days meantime, it's been very much absorbed, perfectly fine by the large cap index. almost a sense out there that you could have these mini purges most be nine is that is how you bleed away we'll see if that continues to happen bounce in the ipo, etf, small caps bounce 1% arc innovation, etf after it goes down 9%, up 2% today. those are the toggles of kind of

the fringe where the fast money is going then you have the rest of the market, which is kind of comfortably hovering near the highs. >> mike, profit taking rebalancing typically happen before the end of the year or can it happen early next year? >> different sorts happen at different times. certainly some people out there crossing fingers that nothing crazy happens to the downside so that they can sell into the next tax year on the other hand, you've probably seen a lot. a lot of it sort of happens over this stretch what's interesting is traditionally the january effect was small caps outperforming large caps and laggards outperforming. that's not exactly what we're entering january with, in terms of a backdrop. who knows how that plays out if

we do get a rush of new flows? >> how are you positioning your portfolio for 2021 >> thank you for having me on, sara next year will be another good year for the financial markets we have three themes that we have developed that have guided us for 2021. this year, the economy struggled but stocks performed strongly. next year we believe the opposite will occur and the economy will perform better relative to the stock market if you think about it, using the long-term trade of 2% of gdp, an historical returns of 10% for the stock market we think the economy on a relative basis, will outperform stocks and so, you know, as the momentum builds after a slow first quarter and the economy will probably finish at about 4% gdp, and likely returns for stocks will be near historical averages so, we still like stocks and

bonds and cash we think things will get pretty good our first thing was that the economy outperforms the stock market as the vaccines take hold and customer contact jobs reopen and spending moves back in that direction as customers -- consumers move back to their prepandemic lifestyles i'll tell you, our second theme would be that the art of deal making returns and that will be that companies will seek out growth in the form of scale and other companies in doing so they'll pursue mergers and acquisitions and we think this will carry over to washington, the biden administration in an effort to gain support for infrastructure spendling use compromise and also to gain changes to health care but our last thing we think has potentially the biggest impact

on the markets next year, and that would be the fact that the consumer mind-set transforms from being homebound to anywhere but home so those are the ones we're looking at to be big time changes going forward. >> josh, do you think next year is a year when eps and individual stock performance gets rewarded much more than the big macro technical themes >> i kind of feel like that was the case this year but i see that as an interesting argument right now for people to have with themselves, because this market really provides all different sorts of opportunities. a lot of people are kicking thesz that they missed out on this big macro trend of rates coming down, mortgage rates coming in, and everyone spending tons of money on their homes now you have home depot spending a ton of time on the next two weeks at the potential support does not look great and could

absolutely break down technically any day now. if you disagree with that and you want back in to that bigger macro trend because you think it has legs into next year, you have a beautiful opportunity in home depot you don't have to buy it at at same -- old-time high. look at zoom, 40% off its all-time high. if you were kicking yourself all year that you missed that big trend, here is your chance go ahead and buy it half off sale wayfair is down 34% from its high square is 10% off its high, like that so, you have that opportunity now if you miss that big macro trend and you want some of the leading names, they're lower, way lower in some cases. if you're not interested in playing that game and you want to own stocks for a five and ten-year outlook and you don't think this pandemic stuff is really going to matter for most of that period of time, you still have opportunities in individual names whose businesses are going to endure

beyond this period and they're not part of this risk on, risk off, you know, work from home, work from anywhere like i feel like all of those options are on the table for you right now. you don't have to pay a record high for every stock that's what's changed. so while the market made a new high today, internally, you have all different sorts of setups, depending on what type of investor you are. >> josh and robert, thank you both for joining us. happy new year to you both. >> thank you. >> happy new year. >> big master p. astrazeneca and oxford university's vaccine achieved emergency approval in the uk today. sir john bell oversaw development of that vaccine. he weighed in on how vaccine makers may tackle mutations of the virus in light of the strains discovered in the uk and south africa. >> this is going to be a game of

cat and mouse now, ongoing if we have to make new vaccines, we can make them now that we've done the initial work i'm sure our friends with rna vaccines can do the same we're ready if we need to make another vaccine to approach it and just to be clear, i doubt that will require the full clinical trial protocol. it will probably involve studies and then be able to be approved after that. >> joining us now, biotech analysis at oppenheimer. thank you for joining us why don't we start with the astrazen he cana vaccine approved in the uk today do you expect that and the j & j vaccine to ultimately get approval here in the u.s.? and given the relative cost difference between that and pfizer and moderna, is that something that could damage those stocks in the future as we get into next year, if they are approved, astrazeneca and j & j?

>> thank you for having me glat you showed that clip earlier. we can speculate all we want a better way to maybe think about this is look at the vaccines approved and in the markets already. you look at the flu vaccines, there's 20 manufactures that make them. range of prices are as little as $5 to and as high as $75 when i went to get my flu vaccine, my parents got the higher version, i got the cheapo version, excuse my language, about $5 that's the risk benefit profile of the vaccine and where you are as an individual are you an adult, healthy, immuno-compromised, your child so, the more vaccines we have, the better it is we need hechlt terogenearia and

the ones that are cheaper. >> we need them to get distributed faster, especially in this country, where operation warp speed wanted to do 20 million by the end of the year we're at 2 million how do they speed that up in the new year where are you pointing blame why is that happening? >> yeah. look, sara, it's a really good question, you know the way i think about 2020 and 2021 is like two hops to a game. we just got the first hop done tremendous things we were able to establish, getting vaccines approved in record time, vaccines with really good efficacy and safety. and, you know, there have been some other good things that happened in the first half of this gachlt now we're transitioning to the second half of this game many believe we can knock down this pandemic in 2021. in order to do so in the second half we have to come up with a different game plan. that game plan will require more

coordination between the federal government and state government, more resources between all the governments and the federal government also. and just coordination. in our focus on getting the vaccines approved, we might have taken our eye off the ball a little bit in terms of the coordination that was required between the federal government and the state governments and the resources required in the second half we do have >> let's pivot back to the sound bite we played and these mutations. i don't know if you saw the full interview. professor sir john bell was very constructive that the colorado strain, uk strain won't be much of a problem with you this south african strain could be. what's your view as to whether the rollout of vaccines could be derailed like the one in south africa >> wilfred, look, there is that possibility. i don't want to play down any

unnecessary -- there's always an interesting entity we all live in for example, the flu vaccines, again, other types of viruses. many companies, scientists, in general humanity have dealt with vie are yous that mutate all the time while i don't want to downplay the seriousness of these mutant strains, we have a lot of expertise and science. >> thank you very much for joining us. >> thank you. >> good to see you. >> happy new year. >> happy new year. stepping into the future boston dynamics releasing its latest robot video innovations that could come next year and companies to watch. we're back in 90 seconds

welcome back 2020 was certainly a strong year for ipos outperforming in broader market. however some recent listings are on pace to win the final trading week of 2020 door dash, airbnb among the week's biggest losers. bradley tusk from tusk

investors, early investor in tesla and lemonade bradley, that was you selling during that lockup >> you know, i'm an early-stage tech investor. once we got into the public markets and my lockup expires, i try to know my way in and get out of the place i don't really know as well. >> were you surprised at the excitement over ipos was that sustainable into next year >> so, yeah, surprised at the level of investment you've seen in it. to know whether it's sustainable, i think, figures out why is this happening in the first place? three reasons in my mind you could point to one would be people really, really confident, certain types of behavior come back after the pandemic for example, airbnb is almost three times the value what it was precovid people obviously strongly

believe travel as soon as it's safe to fully do so again because obviously it's not been a great year for airbnb in terms of activity. door dash also had an incredibly strong ipo in that case, investors clearly believe that the behavior of ordering in will set into a place where it's basically a permanized thing and people are always ordering in, whether they go out to dinner or not. it's not just a question of behavior, locked in or people decide to change it's been a bleak year, right? global pandemic, really divisive election, social unrest. just a tough, tough year and in some ways when people invest in tech ipos, whether it's airbnb, doordash, or driving up the price of tesla, in some ways what i think they're really saying is we have hope for the future. we believe things will be better than they are today. and these companies in some ways

are manifestations of that hope. i know this is a little metaphysical, conceptual for "closing bell" but investors are still human beings and people want to believe that things will get better. >> bradley, "closing bell" welcomes the metaphysical conceptual ideas like that. >> thank you. >> one thing i want to ask bradley next year, more broadly for the next decade, do you think we'll see more of an exodus from big cities like san francisco for tech companies >> yeah. look, it's easy to see why, for example, a tesla, an oracle, drop box would move from san francisco to austin, right in austin you have a fun city with a lot of entrepreneurial talent, great academic base,

five other tech companies. it's seen as a very liberal place. politics of austin are not that different from the politics of san francisco. texas as a state has no income tax. it's incredibly cheaper to live and work there regulatory burdens are much less and, third, if you are a resident of san francisco, los angeles, new york or any big city in a blue state, your tax dollars are really used to subsidize people in rural communities, smaller cities, things like that when you live in a place like austin, where there is no state income tax, whatever you pay locally stays in your community, schools, hospitals, anything else the value proposition is really, really strong. no reasons for-to-expect that to change. >> let's talk section 230. i see it's one of the items listed in your predictions so, do you think this will actually be revoked, go through the legislative process? i know president trump is making it an issue right now.

>> yeah, it's a great question i think something will definitely happen on it. clearly from an administration standpoint, biden can ask agencies to come up with various rules that could change it ultimately, you're probably going to need legislation. if you had to bet on what's the single piece of bipartisan tech legislation that can pass it is to repeal section 230, because both sides are convinced facebook is out to get them. republicans really, really believe there's anti-conservative bias on the platform democrats believe it's been the greatest organized tool for republicans in decades, if not ever they each, for their own political interest, don't want to see the platform continue as is when both sides are aligned at least in having a common enemy, which in this case it's facebook and some of the platforms. >> if that happens, what does it do to face book's valuation? does it half it? >> well, i don't know.

it depends you have to think about that in tandem with the ftc ant prosecution. it may be the ultimate result is to split facebook, instagram and whatsapp into three companies. some people believe that actually would be a greater valuation than all three of those companies being the site of facebook today. if facebook is legally liable for what it's users say, that will change the nature of what's said on the platform n theory that will be lot less exciting, that would drive down engagement and revenue. if i were facebook, one thing i would push for is if congress is going to take away section 230 protection and potential make you split up into three companies, libra has been stalled in congress for a while now. if they could get that approved, that would give them new

sources. >> great to catch up as always, bradley. thanks for joining us. >> thanks for having me. mike is having a look at the growth of etfs and what that means for the market one analyst's financials will need help in 2021. he has picked out some undervalued dunts with the sector that's coming up here on "closing bell.

another strong day for wall street mike santoli for the recent surge in etf flows, mike. >> there's a seasonal aspect into this. 50-day average smoothed out of daily net flows into etfs. it's a sentiment indicator, short-term sense of the public's attitude a lot of this stuff has been at year end this would have been 2016, fourth quarter there also after an election it's not necessarily a wrong way indicator since the people have rushed into the market just in time for it to roll over in general, when things are running quite this hot, forward returns for while they remain at those high levels are not particularly great you have to wonder if, again, things like that they've gotten

slightly ahead of themselves one other point, it's an absolute dollar. overall market value is up so much that, in fact, we may have to raise the thresholds but pretty much by any measure higher than it's ever been in the last 12 years. wolf >> mike, thanks for that banks have under perform this had year, save for notable exceptions like morgan stanley year to date kbw banks 15% really is up that much needed to check the chart to make sure. we'll be dcuinisssg banks and the outlook for 2021 in a minute it's a thirteen-hour flight, that's not a weekend trip.

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down around 15% in 2020, s&p up around 15%. had a strong fourth quarter. joining us now to talk about the top picks is david hess of hennessey funds. great to have you join us, as always before we dive into your picks on the bank front, stocks have clearly been strong this year, despite a weak economy what do you make on that high level for next year? >> well, you know, the markets done well because there's been a lot of stimulus. the fed has provided money the federal government is providing money. the economy has done remarkably

well, given the disruption that we've had really and we all know what it is, and i don't want to repeat what everybody has been saying for six months about it. i think at the end of the day, there is tremendous wealth out there. home prices have been up stocks are up. bonds are up the only thing that's hurting is the employment side and that's being helped along by the government and the feds. so when this thing is over, which may be six months to a year from now, i think the economy is just going to be booming. and that's what the market is kind of telling us. >> so, would that be a good rirn for banks then >> well, i was looking at your promo about the bkx being down 14%. that's a kind way of saying it's been completely awful. i don't remember a year this bad in terms of relative under performance versus, let's say acres bank

so, i think generally the banks need a better yield curve. and we've been fighting that for a decade and hopefully we'll start to get that. they need better loan growth you won't get better loan growth until there's better yields. we need a tremendous amount of m & a to nationalize the infiltration of the fintech specter in to this space your last guest was saying if facebook can't make money doing what they're doing, they'll get their libra thing passed i've got to own facebook in my fund now it's like this industry is being attacked tremendously, and that's why, for example, i remember pay pal they're eating everybody's lunch. you could say that about a bunch of other names you need consolidation i think that's what we've seen this year.

and the small cap fund i run, which is up for the year -- i got lucky here a little bit, but it's been aided by a number of significant, creative acquisitions and i think we'll see a lot more of that. >> what kind of targets? pay pal has already double this had year you think there are more gains there? >> this is like owning visa ten years ago. it's like owning mastercard ten or 20 years ago. we all know how that has performed. it hasn't been up 600% a year but certainly it's performed well you could say that, you know, about square or about any other of these sort of payment systems. you could put apple in that category to some degree. you could put google into that category to some degree. although they're much bigger companies. but that area is going to continue to grow and i think it's going to be an area where the bigger banks, the traditional lenders are going to have to fight to either get back

or to find a way to enter because it's the wave of the future. >> david, next year, your top picks, wells fargo on the list, so 2021 is finally the year of turn around and outperformance for them >> i've got three picks. wells fargo basically is -- it's been poorly run for a number of years. they're finally getting it they're working a lot harder than i am to fix the company and that usually works in financial services you want to have them working harder than you. they're working very hard to fix this thing i think the next 12 to 18 months it's either going to get fixed or it's going to get bought. i have pay pal we mentioned pay pal that one is a met faphor for fintech. i've owned it since the ipo will and continue to own it my third pick there is capital

one, which is basically a midcap bank that needs to benefit from consolidation. and i think, again, you're going to see a tremendous amount of that in the next three to five year years. you just can't compete there's no way you have any rational reason to exist you need to be 30, 40, 50, $100 billion to rationally survive in this parkt of narrow spreads, the fed controlling the pricing of all your assets, regulatory structure. you need to get bigger i think that's an opportunity for people who invest in financial services. >> you think biden administration is going to be friendly toward bank mergers and the fed is going to allow it >> well, i think the fed will allow any merger that, you know, is not crazy meaning two banks getting together they're going to allow that. that's what you need

you need to have bigger banks. i don't think the biden administration is going to hurt us if anything, if they become more against the banking industry or antagonistic, they'll create more acquisitions, because the little guys will just get out. i think you need bigger banks across the entire country to really help finance what the government is going to have to, you know, finance in terms of deficit spending you need bigger banks to finance all of that. it's not just little banks or little loans again, if it's not on your phone, nobody cares. and that's why, you know, robinhood is growing, why pay pal is growing, why square is going. nobody is going on to the jp morgan, you know, on their phone and trading stocks or buying bitcoin or something like that that's what people are doing that's what -- that's the

incremental demand for products, and these little banks, and even the bigger ones just don't are it they're falling farther and farther behind fwl big changes from you, david, talking about adding facebook to your fubd and paypal is one of your favorite picks. singing a whole different tune david ellison, thank you happy new year. >> you're welcome. happy new year, yeah rob cox is here with his new predictions for next year. we'll talk to him about a few of the more controversial, provocative ones coming up on "closing bl. el

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time for cnbc news update with leslie picker hi, leslie. >> wilf, in southern california, at least one case has been identified of that more contagious strain of coronavirus that has been found in the uk and colorado governor newsom made the announcement during an interview with dr. fauci an increase of nearly half million vaccines have been

administered since monday. senate majority leader mitch mcconnell says the senate will not move quickly to vote on increasing covid-19 stimulus checks to $2,000, even though president trump supports the larger payments. >> the senate is not going to be bullied into rushing out more money into the hands of democrat rich friends who don't need the help we just approved almost a trillion dollars in aid a few days ago it struck a balance between broad support for all kinds of households and a lot more targeted relief for those who need help. >> and that's our cnbc news update for this hour back over to you, wilf. >> leslie, thank you for ta. a big tesla takeover perhaps. bold predictions has wall street buzzing ahead of 2021 and we will run through some of the most surprising of them. we're back in a couple of minutes.

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welcome back the new year brings resolutions and predictions. reuters global editor rob cox with a few bold calls for 2021 rob, top of your list, daimler, tesla. that's interesting because i think you had a daimler, bmw deal last year what's your deal with daimler?

>> that didn't happen. the basic idea is tesla with a $660 billion market cap, bigger than all the next four largest car make rs in the world combined, is going to do what we call -- basically called an aol. they'll buy -- they're going to do the equivalent of aol did with time warner where they buy real assets. if you look at tesla, they've got a .8% global market share. it's extraordinary when you consider how much market cap they have. so the idea is, okay, if you look around and think what is the industrial -- what is their time warner going to look like it will be a company in the luxury market business and one that has productive capacity but one that could be taken over if you look at it, bmw, you've got vw, other impediments. nobody ever buys a japanese company and survives look at daimler, it's got a pretty open structure. you would have to get used to

owning or having a supervisory management board that, kind of thing. basically for $75 billion is daimler's market cap today add a 40% premium to that. you're looking at $105 billion which elon musk could do without even, you know, like having to even ask his shareholders. if they issue stock that's over 20% of the market cap, they have to ask shareholder approval. don't have to do it. doesn't even have to ask shareholders for it and gets a 40% plus premium to daimler shareholders and in an instant quadruples his capacity. that's our big auto call, shall we say >> it's fun to speculate about of course, the stock has been the best performer in the s&p. has only been in the s&p for a little while 7% this year has elon musk ever expressed any interest in combining with -- taking himself private, yes, but what about others? >> yeah at 420 a share

he did say something in early december i believe he was in frankfurt, where he had done the conference that was broadcast from frankfurt and he basically -- he didn't say yes i'm going to buy daimler. that's the kind of thing he might do in a tweet. he basically did suggest that that's a possibility and if you're on his board of directors, think about it. you're look at this stock. going up, as you say, sara, 700% nobody is valuing this thing on the basis of like fundamentals really why not use it, again, the same way that aol did, to buy real assets and essentially saves your business? >> rob, i do love your quick comment there of small issue of having to conform with a german supervisory board. of all the people that might struggle to conform to that, maybe elon musk. there's a lot of hurdles to get over for that deal anyway. let's talk about some of your other picks. m & a, also potential in the

airline space. >> we had a view that basically you could see the big four u.s. airlines go down to three. now, there's been a lot of -- when you saw consolidation in the airline industry last time they all got into trouble, there was quite a bit of concern about competition. actually, if you look at ticket prices, they have continued to trend down you have the weakest of the bunch, american airlines you know, depending on how much further that pandemic-related travel problem is, and really the extent to which people actually go back to business travel, which is, i think -- everyone i speak to in that industry, whether it's hoteliers,hotel companies, travel companies, all of them are basically saying well we're thinking like 30% of our business travel business is gone permanently. that's you and me doing internal meetings i'm not going to do that anymore by getting on a plane. american airlines is the weak

one. the question is, who buys it southwest culturally very difficult. you could kind of see united, which is also a pretty struggling airline, relative to delta possibly getting together with american. they would have to dwest into a bunch of routes. it's not that different when you look at the way mobile carriers have gone down to three, the magic number in which regulators will say no further. we see that one. and that largely comes down to just how much more money american airlines is going to lose. >> rob, want to boost your credibility. we did have one correct prediction from last year. >> pandemic, right, where we predicted a pandemic >> no, nobody predicted that you said softbank would be targeted by an activist and right after that, elliott management got involved. >> yeah. >> that was a good call. the tech call this year, this is interesting. amazon, apple, netflix to buy

cinema chains. >> yeah. >> we talked to i max ceo. they're clearly struggling why would the streamers want to get into this business >> if you look at the buyers here, potential buyers, amazon almost $2 trillion market cap. apple, $2.2 trillion market cap, disney, half a trillion. at&t basically they all need to figure out a way to distinguish their streaming services from everybody else right now it's content, content, content. what if you could bundle access to the theater with your streaming subscription maybe you go in once or twice a month to go see wonder woman whatever it's called, ww 84 there live rather than watching it in -- aren't we all going to go crazy sitting on our couches watching netflix or streaming? at some point, we are going to get out of this pandemic and people are just going to want to get out and be somewhere and the cinemas, they're not great businesses

they really make all their money by selling you, you know, $400 boxes of milk duds, half of which end up on the floor. and you stick to them as you're trying to leave. they're not great experiences at the moment our thought was if you could bundle these with some scinemark, together they ar worth $4 million it is just a drop in the bucket and one way to set apart theirs from another by giving you a streaming experience a big chunk of entertainment venues tt rehawe hit hard by pandemic shutdowns details when we return

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relief is finally on the way for thousands of live entertainment venues that were shut down by the pandemic. >> here is a pop quiz.

what do the flu fighters, billie eilish and willie nelson have in common these are just some of the people who lent their names to help out places like music theaters and clubs >> without our help, small venues may never reopen. >> $15 million was set to help recoup losses. they will be 45% of their lost revenues and none of this can be used for large or publicly traded companies 90% of these venues say without this help from washington, they might never reopen back to you. >> thank you last night we spoke to

two-time nba star. what they told us after the break. you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today. see yourself. welcome back to the mirror. and know you're not alone because this. come on jessie one more. is the reflection of an unstoppable community in the mirror. (upbeat music)

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we had nba star baron davis

on the show. they are making a bid to take on reebok first on price and then on how reebok lost their way. >> i think this company is worth maybe $500 million so we are going to show adidas why this company is where they are at and why they should sell to us. >> i would say reebok lost their luster when they got out of sports and sports performance. i was tied to reebok for four years. at that time it was about innovation, taking chances, rapper and entertainer shoes >> i think the big news from the interview is the $500 million starting bid

pr price negotiating. adidas bought it for 3.8, but obviously it has lost market share since then an important point, and feechb th even if they don't succeed, they are out to make deals and take ownership as business people to encourage people to not just be sponsors, but to own businesses which they feel like they need to do in a meaningful way. >> i wondered if coming off before you bought it, it would bring more bids. but that's a way to negotiate. a bit of reversal in terms of

the underlining indexes. the russell re-aligning. >> i think the question is is it building up towards a further momentum surge into january and then we figure out if we are going to back off? >> final trading day of the year is tomorrow. that does it for us. "fast money" is next >> this is "fast money." i'm melissa lee. tonight the most astounding price action one of our traders has seen in 25 years what this stock did and why it caught his attention what happens when people start going back to the office we will ask. and another bonus hour of "fast money" coming up at the top of the hour. send us your deepest burning