quick final trade from everybody. bryn >> gold. >> farmer jim? >> boeing. >> boeing, all right. >> pete? >> fortuna silver. >> joey? >> kip. >> that does it for us first trading day of 2021 off with a bit of a whimper. that does it for us. "the exchange" begins right now. >> thank you, scott. hi, everybody. welcome to "the exchange" and in the span of just a few hours we've gone from the everything rally to the everything selloff. the 2021 is starting off a pretty sharp market downturn down 627right now, down more than 100 at the lows just a short time ago more than 2% declines for all the major averages, so don't look here for any kind of rotation or reopening play the no it's pretty indiscriminate the dow is having its worst start to the trading year since

1932 we don't like those comparisons. let's get straight to it with mike santoli who is monitoring all the action for us. hi, mike. >> hi, kelly pretty stark reversal. we did open higher the market almost always opens higher, by the way, first trading day of the year. did come down. the didn't do too much damage. look at a one-year chart of the s&p 500, we we are no longer in meltup mode but definitely nothing like meltdown. what we did do is go below the break-even level for the santa claus rally period that's one thing off the boards in terms of bullish implications if we don't close above that tomorrow, but we have stayed above the level that capped the market in know a lot of folks looking 3640ish area that would change that story and kind of any gate this whole december breakout period take a look at treasury yields they have backed off a little bit. here's a similar story if you go back a few months. we've not quite broken this general line of uptrend here, but maybe it's a little touch and go at this point at.91 probably wouldn't want to see

this get back down towards .8 or it would change the whole story about the reflation and growth acceleration piece that we all pretty much are looking form the volatility index a real pop right here h.already elevated relative to the quiet grind higher of the market, but you can see it doesn't really register that much compared to what we were looking at last year, but with the market at the highs had and really in this gentle phase you would expect more downturn. people are definitely bracing for some kind of tactical risk, maybe into the inauguration and maybe it's fourth quarter earnings and more shutdown fears, kelly. >> striking because i look at many so of the biggest movers. tesla still positive today if tesla is not down on a day like this. but it's interesting when you say about the vix because 2% selloffs, you know, they are not exactly garden variety, but that's a big move, and imwonder what you read into the fact that, you know, the vix which is never quite settled down after the pandemic is so feisty today. >> i think there's a combination of people definitely looking to

lock in some of the gains from last year. there's definitely some deferred selling happening today. if you look at the faang stocks in particular, they wouldn't necessarily be where you would go to if you were worried about an election or macro risks they are really kind of a skimming away of profits so there is a lock-2-in type of instinct out there plus, we just had this tremendous shock ten months in the rear view mirror ten months maybe is seemingly like a long time, but that's something that does have aftershock effects, at least in market psychology, and i think that there's a general sense out there that a january, february air pocket in the markets was not to be unexpected necessarily. >> yeah, it's a super weird -- super weird trading session. you have some of the worst performers in the s&p. carnival and norwegian okay and then you look at the nasdaq, the worst perform they are is peloton so the high flyers are getting sold off the stay-at-home plays are getting sold off, reopening plays are getting sold off any pattern emerging to you so far in the session

>> not really. seemed like recent winners were getting sold harder. in a new tax year which could be one reason for that. the flight to quality into tesla, there's nothing else that really does stand out except for a little bit of skimming off the top. banks are weak, too, with the yield compression, so tough to really pluck out a narrative theme. >> yeah. all right. mike, we'll see you in a minute. thank you, sir, mike santoli there. are we starting to see real cracks in the real and what a real it's been let's talk about that, what could be some of the causes, katarina sim nettie joins me now, senior vice president at morgan stanley private wealth manager and doug ramsey is with the huthol group welcome to you both. let me start with you. for some context, we're coming off a two-year stretch in which the nasdaq is up 80% and the s&p i think up 35. so in done the text of -- for months we've been talking about how the fear and greed indexes are at all-time highs and we know what's going on with valuations and look how much zoom is down from the exa. the software names have

definitely been telling you that some kind of correction is coming, but what kind of correction do you think this is if it's more than just a one-day reset? >> kelly, thank you for having me on the show and happy new year i'd be really surprised, of course not we've had quite a big rally. a lot of large-cap names, specifically specifically in ten got a little bit ahead of them we expected some type of correction, some type of a selloff and so now we're experiencing it and the key here, the real question is not what is happening today and what sectors are down today but what we can expect from this year, and quite frankly despite the short-term uncertainties, we are finding ourselves in the bull market, so this correction, this bit of a selloff, whether it's short term or longer term should be viewed as nothing but a buying opportunity, an opportunity to reposition the

portfolios. >> and, i mean, doug, here's the question where else do you go, right? mean, we just heard people talking about how treasuries, i think it was bryn last hour saying why would you want to go into treasuries? it's hard to go into corporate debt right now i mean, all of these valuations, when we were talking about the everything rally, that included bonds. not a lot of value left especially if we're talking about inflation pressures today. what are investors supposed to do, sit there in cash and hope that this is the big one >> i think some cash is okay we're at our minimum allow habel in bonds i agree that, i mean, corporates, risk/reward looks really poor. treasuries look really poor. you see inflation getting anywhere close to that 2% fed goal, so i think it's difficult, and equities and especially the large-cap growth stocks are priced off those incredibly low yields, so don't see a whole lot of value there i think it's okay to have some cash, some gold, and -- and to

have an equity hedge we're around average exposure right now in terms of equities and we always -- not always but currently we have an equity hedge as well against -- against our locks. >> doug, i look at your notes here, and i think it's interesting some of the points that you're making you know, maybe interesting in a bad way for people who are long right now, but you're saying, you know, that optimism among traders is even more extreme than it was at the tech bubble peak you say for what it's worth a lot of famous bubbles have popped around the beginning of the year, japanese stocks in 1990 and the nifty 50 in 1973. do you think large-cap growth will be next on that list, or if not the whole market >> you know, i certainly would put large-cap growth stocks in that mix among historic bubbles. i mean, there are about 50 times earnings right now that's ten points above where they were. you mentioned the nifty 50 top of early '13

on the other hand, they went to 70 times in early 2000, so that's the problem with these bubbles is sometimes they are easier to play on the upside than it is to try to short thermo, so, i mean, certainly there's something about the turn of the calendar did, and we noticed that really first if i guess the currency markets that sometimes just caused a massive reassessment in the bubble assets so is this had the peak, i don't know the market is very broad maybe we have a little bit of pullback here and then a run to higher highs later this spring where we start to see some narrowing of the market. that would be like the traditional template and maybe it's just, you know, the rate of change in liquidity. the money supply growth starting to come off its federal balance rate and just the rate of change in liquidity to be the trigger, but i think that's probably yet a few months out, at least.

>> yeah, and the fed is doing everything it can to tell people, you know, we're not going to do a premature tightening and so forth, and that's why i think that's going to be the big interesting battle is probably too strong but face-off this year is between the data heating up on the supply side and policy-makers not wanting to respond to that too quickly. the flip side, katerina, is that they get a market where stocks just keep going to the moon and everything else does, too. what do you think is going on with real yields how how does that play into the places where you want to be a buyer right now? >> kelly, we believe that rates are going meaningfully higher this year. perhaps towards middle or the end of the year, an this is quite frankly when we look at equities this is the story here, and today might be a non-discriminatory selloff, but would we think that should happen right now well, it makes sense to take profits off the of the big mega tech names there are pockets of opportunity in equity markets that are going

to benefit from the tailwinds of prior rates, specifically financials, specifically the cyclicals. we believe that small caps are better positioned than large caps we believe that there is opportunity in sectors like industrials, like consumer staples. there are a lot of pockets of opportunity here, and the question here on when and perhaps there's going to be some correction before markets start going up again, but the story of this market is going to continue to be the story of recovery. >> doug, let me ask you a final question here. i'm going to try to thread the needle a little bit because this is wonky we're talking about, as katarina said she thinks rates are going up and today in the tips rate, as peter boockvar said, we're at 2% so that means we're getting back up there so that means the real yield has been lower than it's been during the entire

pandemic it's minus is.1% ful yields are at fresh lows why shouldn't the market shake today's correction off and start moving to new highs? >> well, you know, again, i think it's a question of what you own within the market. small-cap stocks historically have done really well in negative real-yield environments gold and silver have done well in that environment, but i still think that there's an assumption that the fed is going to tamp down that long end, but if we start to see the actual inflation numbers pushing towards that 2% assumption that's already in the t.i.p.s, there could be a long adjustment and long duration assets and the i'm really squarely focused on the large-cap stock stocks there. they will see significant multiple compression i do agree with the idea that you're heavier in some of the value sectors, the recovery reopening sectors, but i do think there's even much better

value in mid-and small caps than in large-cap value stocks. much better value. >> all right >> wonderful thank you both for joining me today and didn't expect it to be quite this rollicking of a session but here we are. doug ramsey and katarina sim ho netti. more americans chose to fly over the holiday season. will there be any names coming out on tap we'll take a look at bookings, airlines and hotels next marriott is the down 5% right now. plus, the money keeps pouring into georgia and one of the most consequential senate races in years. we'll look at where we stand and what the polls are saying and let's take a quick look at where we are in markets with energy trying to eke out a gain and real estate, the worst performer down nearly 3% that will tell you what's going on with rate, utilities hit as

well and industrials and tech also down more than 2.5% we're back in a couple

welcome back to "the exchange."

we're watching an opening reversal as every part of the travel industry is being affected 2021 could be a make or break year for the sector. what are top plays that investors may want to consider buying right now for a look at the booking names i'm joined by tom white, senior analyst for internet services at difficult. averages davidson and another with the eyes on the skies, the managing director of global airlines at raymond james and patrick scholes is tracking the hotels, manager of activities and leisure at truist securities tom, let me start with you especially on a day like this, which bookers should people of consider picking up for the year. >> >> yeah thanks for having me, kelly, and happy new year look, i think the main thing that investors when it comes to the online travel stocks that people need to keep in mind is that the industry is going to recover, but this recovery is not going to be linear we think exiting 2021 we're close to more normalized levels, but probably still a bit below

say the fourth quarter of 2019 you know, against that backdrop, you know, we think a company like airbnb is probably the safest stock to own here we think that they have got exposure in all the right places when it comes to leisure travel in particular which we think is going to come back more robustly than corporate travel and there's questions about whether the pandemic has led to maybe some long-term kind of demand destruction, and also because airbnb has got the most unique and varied accommodation inventory out there that speaks to the broadest number of potential travel use cases including some novel ones that have popped up during the pandemic that will work from anywhere, for example. >> it's amazing to me, tom, that your top pick and one of the few names that you actually have a buy on is airbnb which you've initiated given the valuation that this thick old. that really tells you something. neutral on both book and expiedia you say lyft even though it's

adjacent to kind of your main coverage but is another one of our favorite ideas for 2021, right? yeah look, you know, we're generally positive on both booking and expiedia we've got a neutral rating but they are both great companies. again, we think that the visibility in those businesses over the next three quarters is -- is a little bit less than -- than what we see with airbnb and airbnb has proven over the last quarter to its business is more resilient and adaptive been pressured by the pandemic but nearly the same degree as booking.com and expedia. lyft is an interesting one it's one of those names that really has not benefitted from the pandemic at all. a lot of people, you know, haven't even opened their lyft app since the pandemic really started but in some ways viewed as the purest example of north america or u.s.-centric reopening, and, you know, lyft rides are very much closely tied to daily life, and we think

that's going to snap back quite quickly. >> fascinating airbnb and lyft. tom, thanks so much. we appreciate it tom white. let's turn to the airlines now after the lockdowns have been pressuring the stocks for the past year, the xal is down over 5% in today's selloff and the 2020 losses are reflected in the screenings, 324 million passengers went through airport security checkpoints which is a fraction of what we saw in 2019, but yesterday tsa saw the highest checkpoint volume since the pandemic hit delta ceo says he expects to be cash flow positive by the spring here to talk about the airline place is an analyst hat raped james. i'll boil it down for people your top picks are allegiant, alaska and skywest, is that correct? >> very domestic-focused this is still going to be a transition year and the first part of the year will look a lot like what we've seen leisure

very far and very domestic focused and as we get into the pack half we'll get international demand as well. >> explain what vfr is are you saying people have time to wait before they pick up names? >> not necessarily i think especially for airlines you want to buy it when sentiment is really negative vfr is demanding friends and rell testifies and leisure and that's very domestic oriented. we're definitely see the pattern of anything, you know, around a holiday weekend, you're seeing good demand there but in a non-holiday weekend demand is really weak so, you know, that's why our three top picks tend to be domestic focused, aliege ant, alaska. >> yeah, and we see declines of

5% to 6% plus today, perhaps an opportunity. the thanks so much again, on the larger cap side, i don't know if you preferred united southwest underperformed on american let's appreciate it. talk about our journey through the travel industry bringing us to hotel and those stocks lower including marriott and the average traveller is inching to get out of the horse managing director. when who should they pick up and who should they avoid? >> i continue to like the more leisure-centric names within the hotel-related universe certainly like others have said a moment ago there's a tremendous amount of pent-up demand for thereby you're travel, and really the names that i like are reflective of

that not just leisure travel but domestic leisure travel and a couple of names which are move -- wind hamm hotels get 70% is from their -- and then the pent-up demand would benefit the decent valuations. >> you're looking to all colloquially say the time share industry, but it's more attractive to you than some of the traditional hotel names, is that white is that why you're referring to the risk of the need for estimates to go lower? >> absolutely right. when i say risk of investments going lower, that will be more for more of your business travel and group and convention-centric

companies. many of those are the public hotel reits, also companies like marriott, hilton and hyatt certainly we see the trajectory of the recovery again, most pent-up demand will be lushui. the followed by the business travel going to take some time to recover and it won't in any why i the first half of the year and -- and that's going to take year to get back to 2019 levels and interestingly betalk about getting back to 2019 levels many motels stocks right now after the strong rall rewe saw in the fall are real we only off 10% from their on average from the pre-covid highs so it does tell me that there's quite a bit of priced-in and very high expectations >> that's fascinating. so, again, retail-led market rebound and retail-led vacation

rebound. wyndham destinations, grayer mott and grand vacations can as well the patrick, thanks so much. coming up, we'll get the latest on amazon, berkshire hathaway and jpmorgan's joint health care venture. if you haven't heard, haven has disbanded. we'll speak about that scoop and the safe haven trade is on today as investors pile into gold and silver gold is seeing it highest press since november and the don't forgot you can still watch up live on the go using the cnbc app any time "the exchange" is back in a few. (upbeat music)

- we did it! (crowd cheering) - [narrator] wherever you start, snhu is where you can finish. (crowd clapping) (crowd cheering) - here we go. - [narrator] and it's it. - [group] yay! - [narrator] you did it, high five! - southern new hampshire university. - [man] that gets a hug. (laughing) - look at that! master's degree, i did it!

- i did this for my children. i am very proud of myself. - [narrator] finish your degree at snhu.edu. welcome back to "the exchange." let's get a check on markets this afternoon an ugly session to kick off the year lows down 724 points and look at that, sprung back nearly 300 that's a 1.5% drop very similar declines for the dow, s&p and nasdaq today. energy managing to eke out .75% gain today but everybody else is negative real estate the worst performer, down 2.5%, and as mentioned there's not a lot of difference between the reopening states, the stay-at-home names take a look at the faang names,

apple, netflix, amazon, alphabet all moving lower netflix the worst performer and casual restaurants seeing a drop, denny's, chipotle's and starbucks moving lower and denny's by 7% and boeing is lower following a downgrade to underperform at bernstein today. they are talking about sales pressure around the greenliner and a potential bigger than expected problem with the plane's fuselage boeing down 7% zoom hass been tough the last couple of months pinterest, moderna, tapestry, other bright spots today let's go to sue herera for a cnbc news update. >> good to see you, kelly. happy new year. new york's governor andrew cuomo warning hospitals they will be fine federal they fail to use the coronavirus vaccine they get within a week of receiving t.cuomo also says the hospitals will be denied further

shipments of the vaccine if they do not comply. two top british health officials are recommending the country's covid alert level be raised they say that britain's health system risks being overwhelmed in some areas unless action is taken to slow the spread of the coronavirus. near land op, five teenagers have been arrested following the fatal stabbing of a 13-year-old boy. four boys and a girl, all aged 13 or 14, have been detained on suspicion of conspiracy to commit murder. and actress tonya robert has died west known for her role in the james bond movie "a view to kill." she also co-starred in the final season of "charlie's angels. younger viewers may remember her from the sitcom "that '70s show." tonya roberts was 65 years old kelly, you are up to date. i will send it back to you. >> rest in peace sue, thanks very much. >> you got it. >> now to some news in the health care space. cnbcnews.com the blockbuster

health care collaboration known as haven will shut down by the end of next month. the companies launched the venture in hopes of disrupting the health care system by making employee health care more accessible and affordable. this was all just three years ago. maybe that tells you how unrealistic that goal is let's welcome in the reporter who broke the story for us, hugh son. hugh, what gives >> yeah, one of the issues that they had, what they found was although they call it a pretty good incubator for idea, improve outcomes and, of course, reduce the costs in american health care which is obviously out of control. they went ahead and said they were experimenting essentially on their own employee bases whether they lived in amazon's case predominantly in seattle or with chase and club in new york and berkshire hathaway with, you know, their own boys like geico where they are based and found a lot of their earnings will didn't actually apply to the broad group and that it became

somewhat unwielding. three years out into this effort i'm posed to dramatically disrupt health care. they found that it was better to go on their own. >> you also make it sound like the challenges were logistical trying to get the through companies -- was there anything in the early efforts that suggested that their goal is not possible. >> it's laudable what they want to do. the three ceos at bath aye way, chase and amazon, titans of the industry, and they wanted to basically improve health care for their own employees but also for the rest of us, and so, you know, it obviously came with a lot of pressure, a lot of attention. you know, the day it was announced, you know, there was a mat -- a -- a mass hit in a lot of the health care stocks. we should give them credit for trying i do think though that, you know, that credit, that pressure

made it difficult for them the structure in which they created, essentially a nonprofit, you know, some have reported that essentially the fact that you couldn't give people, you know, equity in this company, that you couldn't give people super high salaries, that that was potentially an issue for them, and so i think, know, they basically found let's pivot and let's go forward with these projects and let's continue to collaborate where it makes sense informally but let's not call it haven anymore. >> yeah. i remember they had the high-profile ceo who was it that left i think last year. >> right. >> but now in retrospect, always when you see a ceo departure you wonder if it's a sign of bigger problems and now it clearly was. while they are replace these efforts on their own, there's meanty that they can achieve without working together doesn't mean it's hopefully for the rest of us. it's more affordable and stream

hind system. it doesn't sound like the three biggest players could come together and do anything to address it. >> in may they were in the midst of a search for a successor ceo and this move obviates that, but clearly that's a sign, you know, of -- of difficulty internally, you know, that's hard to see from the outside the fact that they had, you know, elevated turnover, you know, people who reported to him also left as well. other signs of turbulence internally but when you talk about how difficult it is, you know, for the rest of us, this is clearly -- this is my personal opinion but this is really a sign of how difficult a nut this is to crack you know, outsiders, you know, people who don't really know the industry look at it and say, well, look, amazon and chase and beth away what can they

accomplish it's obviously harder than we thought. >> hugh, great stuff great scoop, appreciate you joining us to talk about it. that is hugh son from cnbc.com coming up here after a quick break. with only about a third of vaccines distributed right now or administered, we'll get the hatest numbers and what the health of operation warp speed and the their roll and crude oil is fallingow aer lerft trading at a level not reached since last february. we're down about 21% we'll keep an eye on it. we're back right after this.

welcome back let's turn now to the vaccine rollout. new numbers from the cdc out just moments ago show that more than 15 million doses have now been distributed but only 4.5 million have been given to people the disappointing pace is leading health officials to explore alternatives to get shots into arms faster meg tirrell is here with the very latest. meg, welcome back. what are we learning >> reporter: hi, kelly, well the new numbers are not inspiring a

whole lot of confidence it you're looking at less than 30% of the dose is that have gone out actually getting into people's arms, and that's a little bit of even a slower pace than we've seen in the previous update but the expectation is over the coming weekes that should increase. we heard from the cdc last week about why the initial rollout is rocky. she noted these are new vaccines and have slightly complex handling requirements and public health departments are incredibly strained and health providers as well with just taking care of covid patients and now trying to handle this massive vaccination campaign on top of that and, of course, the winter holidays. we heard from drr robert califf this morning only on the street who pointed out that he expect that the numbers will start to look like a hockey stick graph pretty flat at the beginning but should start to shoot up over the coming weeks which is what everyone hopes for there's a lot of discussion about how to get more vaccine available for folks, and there's a few ideas about how. operation warp speed's

dr. slaoui talking about the considered that you could give two half doses of moderna's vaccine for those aged 18-55 and in the uk they are talking about space out the first and second doses of both the pfizer and the astrazeneca vaccines to at least 12 weeks that's eight weeks more than was tested in trials, at heat pfizer vaccine or nine weeks for the pfizer vaccine so that's raising some eyebrows. in terms of supply, you know, everybody wanting to make sure that more vaccines are available. moderno up with a um increase saying they expect the baseline will be 600 billion with the top being is billion doses previously they planned on making 500 million and do plan to deliver 200 million to the u.s. by the end of the second quarter. kell >> what, meg, is the hesitation around those half doses or

delaying the second doses that you mention mentioned. >> that's mainly is, enough the what the clinical tlulgs have showed dr. slaoui is against deviating from what's been proved in trial and is more comfortable with the half dose because they have seen trial data suggesting the immune response is the same, but actually spacingles doses out, specifically for the pfizer vaccine, that's not tested, show what pfizer has said and what health officials here in the u.s. have said is they don't know for certain what the duration of the you-minute will be after 2 is days and they have asked the public to put so much trust in the scientific process that their argument is why deviate from that as soon as you -- you get the vaccine on to the market. >> yeah. that's a tricky one, but in the meantime, you know, every day

that passes you just go there's -- come on, we've got to do something there eat gone to be a better way. meg, appreciate it. >> meg terrelle with the latest at this hour. stocks sinking in the first trading day of 2021. the dow dropping 700 at the lows and down about 501 right now walgreens, boots, walmart are some positive stocks and boeing is the worst performer, down 4.5% we'll take a look at the risks affecting the market next, and did bitcoin tell us something, near the $35,000 market, but it dn 'sowabout 2% today have we seen the top we'll discuss that right after this

♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work.

welcome back markets are skidding lower this hour with all three major average down more than 2%. the dow down 724 at lows

just under 500 right now in terms of the point decline if you're looking for reasons we do name a few maybe, the georgia runoff tomorrow could hand senate control to the democrats and increase the scope of president biden's agenda also, some inflation pressures emerging with the market pmi manufacturing report today noting that selling prices increased with the sharpest rates since may 2011 still, you're not seeing a huge movement in bond yields but bob pisani is tracking all the latest market moves. michael santoli is back with a look at these and some of the other risks that have been building in the market bob, let's start with you. what are you hearing from traders about what's driving the action today >> well, i think the important thing is look at the markets we have almost a 2% takedown of the whole market cyclicals, growth stocks, value stocks, you know it doesn't really matter most of the market is just down, so what would account for this yeah, maybe it's some concerns about the georgia election, but listen to what meg said. that's very telling. the vaccine rollout isn't going that well. hopefully they are going to straighten that out but this

could imply the economic growth rates won't be as strong, maybe the, numbers are not going to be as strong and i think the important thing here is this makes a lot of sense i know we're all living in the secretary half of 2021 when everything will be fabulous but it will be a pretty retough covid winter and stocks are really, really perfectly priced right now. so none of this sounds absolutely crazy to me given what we've been seeing with the rollout so far >> that's a good point, mike i mean, the vaccine, the covid itself means the risk and we can look at hard hit the hotel names, airlines and other names are today. that's not only place we're seeing the selloffs. is it -- i mean, is it the senate election tomorrow i don't know if that just explains the kind of selling behavior that we're seeing today. what do you think? >> not necessarily in itself i do think it probably creates an excuse for buyers to sort of hold off a little bit. there seems to have been some deferred selling meaning people pushing gains into -- into the new year there was a sense out there

though, i think the context matters a lot. three or four or five weeks back, we were able to be saying and we were saying that the market looked a little bit stretched technically and the sentiment was getting a little overconfident but it's very difficult to fight the seasonal uptrend in december so this would make a lot of sense as an adjustment based on an overbought market and overloved market once you get into the new year you lose the seasonal tailwinds but also to bob's point, you know, about time is ticking away for when the acceleration probably needs to happen i don't think we're at a critical moment yet but every day passing was bullish back when we were waiting for the vaccine because we're a day closer hand now every day we don't have any progress towards a return to normal, seems like it's complicating that picture i don't know what traders bullish or bearish are fearing in the georgia runoff. democrat control might mean more stimulus or split government is considered to be more of a

bullish. it's an excuse of a known catalyst right out ahead of us >> that's kind of the point that jimmy pethokoukis was making this morning is stimulus more important, regulatory trends or some other larger things? bob, go aed half i was going to point out as we look at many so of the tells in the market take a look at zoom, 350, granted in the green it was at 588 at its 52-week high, bob. so there has already been a pretty sharp correction in some of the -- of the highest of the highest flyers this year what were you going to say >> >> right. that happened a couple of months ago because we saw the move away from necessarily the stuff benefiting on the work from home towards the more cyclical part of the market, but today, just look, this is enormous volume in broad etfs, groempt and value. they are selling off the thematic etfs, the e-sports, the cyber security and social media,

they are telling them off n very large. there's an overall takedown of exposure in the market and that makes some sense going along with the severe covid winter around the vaccine rollout and maybe earnings not quite as strong just on the georgia runoffs, look, we all know there's conservative democrats that are going to be control of that. if that happens, if you get two democrats winning in georgia, you'll get a sudden drop in the market, but, remember something. they are not going to get any major legislation. we won't see dramatic increases in taxation rates. i just don't see it here i'll tell you what the tell is, tomorrow the general retail traders, they have bought every single dip for the last six months as modest as the dips have been if we come in tomorrow and nothing moves that much, you'll see this will be another short-term trend we'll see if this has legs, these concerns. >> that's a great point, bob they have and we'll see if they are coming out in force maybe

already today. we've off the lows bob pisani and mike stole, appreciate it. did bitcoin come off, the cryptocurrency touched almost 35,000 after its record-breaking weekend run and has since slumped down 7% now. kate rooney has more on this for us now kate >> hey, kelly. bitcoin kick off the new year with some wild swings, the cryptocurrency hit an all-time high, near $35,000 on sunday this morning it crashed about is a% it's now trading around 31,000 analysts say that quick drop in some of the equally quick spikes higher over the wokened have been accelerated by lower supplies of cryptocurrencies take a look at the prices have soared since september the amount in surge has gone the other direction. buyers or sell verse an outsized effect on prices while bitcoin's 2020 real was driven by new institutional

investors getting, in an lifts say sunday's rally was likely driven by what they call weekend bit coiners or retail investors, small buyers now have an easier way to get in thanks buyers havy to get in. there were more than 38 million smaller transfers of bitcoin into personal wallets last year, nearly double the amount from the big rally three years ago. kelly. >> we're looking at google traffic and trends and the interest is not where it was then, even though it's so much higher and we're seeing spi spillovers into other kritios, too, right >> right others up 30%, 40% over the past two days investors are now looking for

the next big bet if they missed out on bitcoin so atherium seems to be that >> very much appreciate it >> coming up, the race is so heated that merely half a billion dollars have been enspt on ads in you the last tjust th months we'll get a sense of where we stand right after this and in an emergency, they need a network that puts them first. that connects them to technology, to each other, and to other agencies. that's why at&t built firstnet with and for first responders

the emergency response network authorized by congress. firstnet. because putting them first is our job.

welcome back tomorrow's runoff election in georgia will determine the balance of power in the senate with that, what could happen with tax reform, infrastructure and more, we're talking big stakes and big money as the race to sway voters heats up. ylan mui is here with more >> over 3 million ballots have been cast through the mail or early in-person voting according to targetsmart, about 30% are between the ages of 18 to 29 and about 40% are black.

now, this is important because clearly this race has divided the country. we saw that with the controversial phone call between the president and georgia secretary of state and the outcome of this election is going to be determined by turnout and mobilization so that's why vice president mike pence has already been stumping in the state today on behalf of the gop incumbents, senators david purdue and kelly loeffl loeffler turnout is about 68% joe biden will hold a drive-in rally this morning for the democratic candidates. that rally will be in atlanta where the turnout rate is more like 80% of what it was in november right now democrats do have a slight edge in the polls, but they are still within the margin of error so, kelly, this is going to be a nail biter that determines not just the arc of policy for the enough congress but also for the

enou new administration >> and on that new, ylan, what would change if the senate does go blue? >> reporter: so if the democrats get 50 votes in the senate, their menu of options embasxpans dramatically they'll have control of the agenda, which items to actually come up for a vote we saw how important that was when mitch mcconnell did not let democrats even vote on the $2,000 stimulus checks so controlling what comes to the floor. and also they could use the process of reconciliation to push through certain types of big legislation. they're sort of limited in the kinds of legislation they can use with that process, but it is a very powerful tool and one that republicans used to push through those 2017 tax cuts. so we see how important having even just 50 members of the senate can be, even if they don't have a 60-vote majority. >> exactly

no, i feel like it's a big deal. we'll see how you the market reacts to it and how the race comes in it will be exciting to watch thank you very much. >> the senate runoff in georgia is one of the three factors that morgan stanley sees as a reason for a market downturn. a downfurn turn is what we have today. we'll be following all the action next offern "power lunch" and we'll be talkinggorn to veor jared polis of colorado. i'll join tyler mathis for that right after this quick break re . re . excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style.

♪ some things are good to know. like where to find the cheapest gas in town and which supermarket gives you the most bang for your buck. something else that's good to know? if you have medicare and medicaid you may be able to get more healthcare benefits through a humana medicare advantage plan. call the number on your screen now and speak to a licensed humana sales agent to see if you qualify. learn about plans that could give you more healthcare benefits than you have today. depending on the plan you choose, you could have your doctor, hospital and prescription drug coverage in one convenient plan. from humana, a company with nearly 60 years of experience in the healthcare industry. you'll have lots of doctors and specialists to choose from. and, if you have medicare and medicaid, a humana plan may give you other important benefits. depending on

where you live, they could include dental, vision and hearing coverage. you may also get rides to plan-approved locations; home delivered meals after an in-patient hospital stay; a monthly allowance for purchasing healthy food and beverages; plus an allowance for health and wellness items. everything from over the counter medications and vitamins, to first aid items and personal care products. best of all, if you have medicare and medicaid, you may qualify for multiple opportunities throughout the year to enroll. so if you want more from medicare, call the number on your screen now to speak with a licensed humana sales agent. learn about humana plans that could give you more healthcare benefits. including coverage for prescription drugs, dental care, eye exams and glasses, hearing aids and more. a licensed humana sales agent will walk you through your options, answer any questions you have and, if you're eligible, help you enroll over the phone. call today and we'll also send this free guide.

humana, a more human way to healthcare. good afternoon, everyone happy up in year and welcome to "power lunch." i'm tyler mathisen along with kelly evans. stock kicking off 2021 with a selloff after hitting record highs today. the dow off the lows as you see there at 30,153. so investors, are they ready to buy the dip like they did in 2020 plus tesla bucking