one, and the resignation of cabinet members. meantime stocks pushing to new highs. futures are pushing to more records at the open. and bitcoin, says that it is remaining volatile, if that means going up, after smashing past $40,000 yesterday, and it is jobs friday, we'll talk about the impact of the pandemic on the labor force as new cases and deaths hit the highest level ever as january 8, twub, a2021 and "k box" begins right now. good morning, everybody. i'm becky quick along with joe kernen and andrew ross sorkin. and even after everything we've seen over the last couple of days, the market has continued to march higher.

yesterday market setting new highs once again, in fact the nasdaq closed above 13,000 for the first time ever and the dow closed above 31,000. let's take a look at where things stand right now you will see even after the dow is up more than 652 points over the last two sessions, it is indicated up another 75 points this morning s&p futures indicated up by about 9 1/2 and then the nasdaq indicated up by about 38 so very strong momentum that is i continuing and treasury yields, remember earlier this week the ten year finally crossed above 1% for the first time since march this morning it is also continuing to climb. the yield of the ten year sitting at 1.083%. and that has been a big factor why at least some areas of the market have move higher including financials and president trump acknowledging that joe biden will be president but did not take responsibility for the mob of his supporters who breached the capitol. straight over to and i monday

j eamon javerss with more. >> yeah, it took more than 24 hour, but president trump released that video twitter last night in which he finally conceded that he had lost the election, that the new administration would be coming in on january 20th he pledged his support to the incoming team. he also spoke directly to the rioters who attacked the capitol under his name on wednesday. here's what he said. >> for those who engaged in the acts of violence and destruction, you do not represent our country. and to those who broke the law, you will pay we have just been through an intense election and emotions are high but now tempers must be cooled and calm restored. >> we're also seeing a wave of resignations inside the trump administration highlighted by two cabinet secretaries, secretary of transportation elaine chao and secretary of education betsy devos, both

resigned, both placing blame if the riots on president trump's door step. both saying they could not continue under these circumstance bes it is it is a question whether we'll see more resignations, but they join a slew of west wing aides including the deputy national security adviser, chief of staff to the first lady, and others inside the white house who have resigned in protest over the president's behavior all of that lending the final days of the trump administration an air of near total collapse as the president struggles to pull together his team to keep more defections from happening. tragically last night had a statement from the capitol police that one police officer has died now as a result of his injuries, they say that he was physically engaged with the protestors at the capitol, returned to police headquarters and collapsed there. he died yesterday and the

capitol police putting that statement out overnight and that adds an additional element of tragedy to all of this, bringing the death toll from the attacks on the capitol to five now from wednesday's violence up on capitol hill the blame all being pointed at president trump. the question now is whether there is enough momentum politically in washington to move forward with either the 25th amendment which would remove the president from office or another impeachment on capitol hill there is talk about both efforts. but neither one seems to be likely at this juncture just given the fact that both of them take time, there is a procedural rigamarole to go through in both cases. it is not clear that there is support for it in the cabinet or with the vice president in terms of the 25th amendment at all so those options look unlikely the "wall street journal" guys,y called for the president to

resign >> so just walks us through what you see the next -- i guess we're at 12 days now looking like i saw the report also by kayla tausche yesterday that pompeo and mnuchin apparently had spoken about invoking the 25th amendment but decided not to go through the permutations of what may or may not happen here. >> well, look, democrats are extraordinarily angry, there are members of congress circulating impeachment draft language nancy pelosi the speaker of the house said if mike pence does not move forward with the 25th amendment to immediately remove the president that the house could move forward with impeachment. i think that that is a possible process. but it takes time as we saw the first time the president was impeached. this is a weeks' long procedure and you have just days left in

the president e's tenure. the political and social question here is whether removing this president with a few days left in his tenure benefits the country more it costs the country. there is a cost to doing that in terms of inflaming his supporters, inflaming those very people who stormed the capitol wednesday and reigniting another round of potentially violence clashes. versus the security of not having a president who is widely viewed in the capitol as unfit for office retaining control of the nuclear codes, command of the u.s. army and all the authorities legally and otherwise that the president has. so you have toweigh those two thing in the balance as you decide what is the right course of action for the country here and i think that there will be a lot of weighing of the balance and a lot of soul searching here in washington the next 24 hours. >> okay. and i monday skreamon javers, a.

shifting gears, how did we say hyundai? what did we decide >> i thought it rhymes with sunday >> remember in the past we had good ones. >> hyundai i take no -- >> it is spelled weird >> i have pronunciation issues every day. i'm well aware of them >> are you good with hyundai >> hyundai >> let's go with hyundai anyway, we have to move on now no, we didn'on't the auto maker first said that it was in early stage talks with appleover potentially working

together to develop an electric car, but then it walked back its statement saying only that it had talked with in its words potential partners, eliminating any reference to apple hyundai representative told cnbc that discussions are at an early stage, nothing has been decided. affiliate stocks also jumped sharply on the news. wow, look at that. that is jumping already. shares of apple right now, take a quick look and we can talk about this i have mixed feelings. i think apple could make a pretty good car itself in the past ten years ago i would have said hyundai? but now i might say hyundai. because if you've been in one or even a kia, unbelievable strides. they look pretty good now.

and i think the quality is there. so it is not insane maybe to consider hundryundai -- now thee not even mentioning apple at this point >> so are they walking it back because they don't want to upset apple. it is either they had real talks or they never really had them. >> my guest is the first >> we keep hearing it together, apple and car. >> where there is hope there is fire sometimes >> my lease is almost up, so -- >> so you might go from a porsche to a hundrhyundai? >> i was thinking of tesla actually what is it called, i can get that -- where it go zero to 60

in like negative two seconds >> ludicrous >> thinking about it but i don't know you can't shift a tesla. >> i just wanted to say, i think an apple car would be great, but everything that i've read about an apple car, the innovation is actually going to be hopefully -- or was supposedly in the battery, meaning that apple spent all this time, you know, dealing with processing and processing power in laptops and obviously in phones. and if they could nail that in the car, that would be pretty great. and i will tell you, the kia telluride, i look at that all the time with great admiration also the palisades i think is pretty good. >> so on my i phone, if i go down to draft kings twice, i'm down to like 4%. so maybe they want to do something with their stupid iphone >> is that a reflection of the apple iphone or how long you spend on draft kings when you're there? >> it is jerry whensquar scary

weekly like totals, it is like wait a second, that can't be >> of screen time usage? >> yeah. that can't be right. anyway -- let's tell you when another big story that is out there. beg will be boeing will be paying $2.5 billion to resolve a criminal investigation into two deadly crashes of the 737 max. boeing will admit that employees deceived aviation regulators about safety issues that led to those crashes. $2.3 billion will go to compensate the families of the 346 people who died in the crashes as well as boeing's airline customers. the settlement offers a detailed narrative of what boeing did including refusing to cooperate with federal investigators for the first six months of the inquiry. and boeing acknowledged two former pilots deceived the faa

the pilots provided incomplete and inaccurate information about the new flight control system which resulted in important data being withheld from the faa and eventually pilots. the prosecutor said that they did not find pervasive misconduct involving higher level officials. but this has been a long time in the making boeing shares town whdown about cents. when we come back, getting you ready for the jobs report. and we have a huge lineup of guests today including dick parsons and mellody hobson, vice chair of the starbucks board and member of jpmorgan's board as well "squawk box" will be right back. ♪ ooh la la by cherie

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welcome back we have an update on the pandemic the united states reported a new single day record for covid deaths at 4110 deaths yesterday. new cases also set a record at nearly 269,000 this week alone, the united states has reported more than 1.6 million new cases and 19,000 new deaths new york governor andrew cuomo warning of potential shutdowns if the uk variant spreads in new york he said the danger is a surging hospital aigs rate aation rate d

infections among already strained hospital staff. in the meantime los angeles hospitals are already facing a surge of patients. ambulances have to wait hours to drop patients at emergency rooms. hospital beds are being crammed into gift shops, cafeterias and conference rooms answd the wait for the icu beds is more than a day in some cases. on the vaccine front, the sooed says that nearly 21.5 million doses have been distributed and the number of people who have gotten one dose is 1.9 million and economists are looking for a gain of 50,000 jobs and unemployment rate of 6.8%. that report is due out in just over two hours michelle girard is code head of global economics and michelle, in terms of what we should look for and how we should put it in context with the rising market prices we've seen this week >> there is a couple things.

obviously the labor market is suffering vilt of a resurgence in the virus which has put a pause on the pace of hiring. we actually think that we could see decline in employment for the first time since april and even at least the stall in the decline in the unemployment rate i think though it is important to draw a distinction between what is happening now versus say what happened last march and april in the sense in a while the labor market has certainly suffered as a result of the renewed spike in the virus, we are not seeing the broad base, you know, shutdowns in activity that we had seen and in fact we had data this week from the ism that manufacturing and service activity improved in the month so i don't think -- the point is that while these numbers this morning i think will be disappointing, the vaccine is a game changer and i think you see

companies and even consumers remaining optimistic broke, you know, where we'll be in several months >> where do you think we'll be in several months? i mean, if we can get the pace of vaccinations up, i guess that changes the game pretty significantly. >> it does and it really is dependent on how quickly we can get the vaccine distributed and how quickly therefore consumers feel comfortable to reengage. the good news is that we've seen a lot of activity in terms of spending on goods that it is back to levels in many cases that you had seen prior to the virus. of course it is spending at restaurants and in the retail sector that has lagged, where there is an awful lot of room for a strong continued recovery. and when that happens, it is highly dependent on the vaccine. but consumers are sitting on a

lot of cash, the stimulus checks, even in the wake of a weak labor market, the savings rate is extremely elevated, double digits. and there is a lot of spending power that can be deployed the question is how quickly can we get consumers to feel comfortable enough to put that money to work. >> moisture of the gaiyou watchy closely. how much of the optimism we've seen this week do you think is coming because people are anticipating much more stimulus because of the democrats taking the senate >> i do think that there is optimism that with what is seen as the blue sweep that we will see more stimulus. i hate to be -- to dampen some of that optimism i do think that this is a very

different situation than what we had talked about in november when we talked about a blue sweep. we talked about a blue sweep in november, and that was based on some assumptions that perhaps the democrats would have a larger majority in the senate, which would really give them the ability to pass a lot more stimulus through, a 50/50 balance with the vice president breaking the tie will make it still i think challenging to have massive stimulus. i think that there is more hope that we will find agreement in some areas, but i guess we're not quite as optimistic as the market seems to be that the election results here in january in georgia are as much of a game changer. but i do think that that is what you see not only in the equity market, but of course in bnd yiel bond yields rising in anticipation that we'll see more debt being issued to fund a significant amount of stimulus

and i think some of the expectations are out of siync with reality of what a 50/50 split in the senate will actually mean. michelle, thanks for your time today. and coming up, elon musk passing jeff bezos to become the world's richest person we'll show you how musk reacted to that news and as we head to a break, check out the price of bitcoin, it smashed through the 40,000 threshold yesterday. take a look, we're at 41,103 these days, we want sophisticated but simple. cutting edge made user friendly. in other words, we want a hybrid. and so do retailers. which is why they're going hybrid, with ibm. a hybrid cloud approach with watson ai helps manage supply chains while predicting demands with ease. from retail to healthcare,

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elon musk now the world's richest person and at least he was able to do it before he was 50. 49 years old his net worth hit $195 billion yesterday surpassing jeff bezos thanks to a surge in tesla's stock price. musk responded on twitter saying strange and then back to work. so much for heading to the s&p at the top as we heard so definitively on that day >> what is the pe ratio? >> i don't know. are you a fan boy or not any am

the ultimate fan boy now i even think flame throwers are making a comeback. did you see leo using the flame thrower in that movie? flame throwers are making a -- no, the pe, this is -- >> pe ratio is 1616. >> so what is the pe rashl i don't rash yoe of a company that doesn't make money infinity >> you, buti don't know, but wio i think it is like 90. >> but amazon always said that and was it wrong >> no, but -- >> when it was trading on revenue growth >> i don't know. as you know, i've been a fan boy of tesla and elon musk for a long time. i haven't necessarily been a fan boy of the stock because, look -- >> you should have been.

>> by any normal measure, it is overvalued >> you shouldn't admit that you weren't a fan of the stock or the overall market because it has proven you that you should not are -- you should have been worried about missing out, not losing money but maybe now is the time. >> i'll admit when i'm wrong and which is every day every day i have to admit these admissions >> what about a company that loses money that has an unbelievable valuation market cap in that is i that is infinity >> and we'll see a lot in the spac world too >> and someone on twitter points out that you can use -- there was video of a guy shoveling his driveway with a flame thrower. didn't have to lift it, just -- didn't throw his back out. >> welcome to 2021 >> i didn't even think about that what a great idea.

no, i agree with you, it is the fed, it is the ev, just the fantasy of an all ev world and tesla leading the way with solar powering your grid that goes into -- it is all that stuff coming up, more fallout from the breach of the capitol by a mob. talking about the responsibility of business leaders next and as we head to break, here is a look at yesterday's s&p 500 winners and losers i made a business out of my passion. i mean, who doesn't love obsessing over network security? all our techs are pros. they know exactly which parking lots have the strongest signal. i just don't have the bandwidth for more business. seriously, i don't have the bandwidth.

glitchy video calls with regional offices? yeah, that's my thing. with at&t business, you do the things you love. our people and network will help do the things you don't. let's take care of business. at&t.

it is a nothing thing. doesn't affect the outcome, doesn't affect the transition, but it is a position i really enjoy doing, but you can't do it and i wouldn't be surprised to see more of my friends resign. >> we didn't have to worry i think about national security. i think the national security apparatus will work well, but i do think that we should take a longer term perspective on how

to make certain that we once gasoline b again become a beacon for democracy and not a laughingstock. >> what happened yesterday is a disgrace and as an american, i'm embarrassed. you know, i didn't vote for trump in '16 i voted for him in this past election november. today i'm sorry i did that >> there is a certain modicum of adult leadership needed to run a significant organization of any kind, whether a university, church, synagogue, mosque this is below that line and we shouldn't tolerate it. >> in the wake of wednesday's violent breach of the capitol, business leaders are speaking out in condemnation of the rioters' effort to disrupt american democracy joining us with more on reactions and where american

leadership goes from here, jeff sign field dean for leadership studies at yil schoale school o management jeff, you've been spending from what i understand the last several days if not weeks on the telephone with many of the boldest faced named ceos in america talking about this crisis that seems to be engulfing the country. what are you hearing >> i'm hearing great fear and revulsion. it was nice to hear david rubenstein say that he has confidence just now in that clip that you showed in the nation's national security apparatus. he would be an outlier even though he was condemning of president trump as well in that clip, that there is widespread fear that the greatest threat to national security right now is our own commander in chief and these ceos are all worried about putting in the guardrails. and they were felt justified in that belief by the catalytic

action of dick cheney getting all former living defense secretaries all ten of them to say this is a time of great danger and warning the pentagon to not get drawn into any of the transition hijinx of this outbound president so ceos are really worried even before this insurrection on the capitol, the morning before, we had several dozen ceos call me and ask could we arrange one of our informal early morning zoom calls i think they come to me instead of one of the major trade associations because they figure i've got nothing to lose if it doesn't work, but -- >> jeff, isn't there an element that all of this is a little too late, that all of the statements that we've heard over the years, whether it be from the brt or elsewhere, are a little, you know, a little too ambiguous that led us to this moment

a lot of people may want to speak out now, and by the way, many of them are speaking out to some degree, but not really speaking out what do you think -- you study leadership what do you think the role of a leader should be, a business leader in this case? >> it is an interesting point that you make. candidly just between us, andrew, when we saw ken frazier of amerimerck take a courageousn post charlottesville and there was some response that you and i were tracking and then a lot of people joined him, of course bob iger of disney, but the bedrock of america came fairly soon. at&t and walmart and others. but there are a lot who didn't and we had the press releases falling all over each other to get to us before the close of the market because the dam was breaking and everybody wanted to be on the right side of history. we're seeing that now too.

in fact president trupresident said all the rats are jumping off the sinking ship but i'm not. so we're seeing a lot of people wanting to be on the right side of history you and i and probably most everybody has been flooded by these protestations against violence well, you know, what ceo will say they are pro violence other than maybe wwe and national hockey league? of course they will make those statements but i endorse national association of manufacturers very clear statement calling for the invocation of the 25th amendment, impeachment or the president's refg nafgs a resignation and the "wall street journal" demanding that the president resign, it would be best for everybody that is staggering the "wall street journal" of course is no bastion of progressive radical inch and similarly, as you think of the national association of manufacturers, the business round table formed as a centrist

reaction against the very historically right-leaning national association of manufacturers 50 years ago, and of all the organizations that they should be the one to come out like this,timmons, i'm impressed. 100% at our informal caucus say that they will no longer fund the seditions supporting gop congressmen which is half of the gop house and 25% of the gop senate that is astounding and these are people who have followed through in the past on whether or not it had to do with assault weapons in stores or having to do with immigration issues over the summer or the auto industry up on epa rollbacks or even the energy issues they have challenged things that you would have thought were not in their self interests because

the business leaders have rich to the occasion as corporate statespersons. >> the question i'm asking, have they really. and the secondary question i think one of the reasons that they have been concerned about speaking out more publicly or more aggressively about thises way this manufacture association has for example is because you look at the vote of the last election, and you look at 75 million plus people and i think ceos say to themselves i don't want to be on their bad side and what is that going to mean to my business >> and that is true with any guest that goes vchv show or journalist you will have reprisals of angry people that write to you but the truth matters and that is what is making a difference right now. we have seen that these ceos -- josh hawley's largest number one assumer, $12 million, a guy named humphreys from missouri, i

think he is an auto parts manufacturer, just came out and said he is cutting off all funds of hawley and he is ashamed of being his biggest supporter. josh hawley of course the first senator to call for this conspiracy nonsense. so the truth matters and they have to call people on this. and we'll see advertisers, certainly the lincoln project is ready to go on this, to start to identify of those 120, maybe 140, six, maybe eight senators, to no longer support them. and frankly, if we were on a different network, i'd wonder about who will advertise with maria bartiromo and lou dobbs in advancing fails conspiracy theories and so i think that we'll see the business community take very strong stance on this and they have to follow through on that and when we see that the one-offs -- it is a anything

mistake it presume the business community was ever enthusiastic about this president they didn't know him when a back in the 2005, 2006, when he was there, a lot walked out. sure, they raced him to the white house. but most didn't support him. 70% are republican but most did not vote for him but they thought we'll give it a try on tax issues, trade issues and regulatory roll back oigs. when he decided the divide and con cor conquer, nord vford versus gchl lock heed versus boeing, they got wise to this so then after 2017, when these business advisory councils metalled dometa metalled tu melted down, first time that the business community refused to

call to action of a commander in chief. under jfk, when he called them a bunch of s.b.s, o.b.s, he had a better relationship with the business community and so this business community are following through. sin 2017, they stepped away. frankly, when you take a look at names like tillis or hat d-- >> jeff -- >> right up to barr this weekend, they all thought they were the loved favorite child of donald trump he doesn't love them, he doesn't hate them, he -- >> jeff, we have to continue this conversation in the next several days together. but they are playing us out. >> that is very cruel of them. >> great to see you as always. love your perspective. thank you.

when we come back, much more on the markets haed of tahead ob report in the meantime let's take a look at the biggest winners in the s&p pre-market tesla making the cut, it is up by 3.9% this morning to $848 that me elon musk the richest person in the world. wonder houch thw much that has u today.

welcome back u.s. equity futures are indicated higher this comes after closing at record highs yesterday in fact tdow closed above 31,00 for the first time yesterday, the nasdaq above 13,000. so significant milestones hitting along the way. you can see right now, dow futures are indicated up another 104 points after gaining more than 650 over the last two trading sessions s&p futures are up by about 13 and then the nasdaq which was the big gainer yesterday, it was up by better than 2.5%, indicated up another 54 points this morning and that doesn't even show you some of the big gainers you are

seeing if you look at something like bitcoin which is up by more than 5% or tesla shares which we just checked out, they are up more than 3.9% so some big gains continuing on the end of a pretty america the. next week cnbc has a huge lineup from the jm morgan health care conference starting monday morning with the ceo of biontech. and also the theys of gilead, ely lilly, lab corp, and mid tr medtronic. and that is coming up monday and tuesday. and coming up, stocks continuing to hit all-time highs. so keep buying, sell, where should he be putting your money to work? we'll talk much more next. subscribe to our podcast you will get interviews,

original content, and behind the scenes access. look for us on apple podcasts or on your favorite podcast app ansucre sd bsibtoquawk pod today.

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capital management, didn't go back to 20 twice, it went to 40, that's a joke, ryan. >> i caught it, joe. >> that's good we decided to change our segment a little with you because you want to talk about the beginning of the move to value, and i guess you're pulling the plug on this type of action that we're seeing and all the momentum plays that have led the market in the past year or so my question is you're pulling the plug did you have the plug in did you own anything did you own tesla? do you own any of the stocks they're saying not to own anymore? >> do you own any bitcoin. >> i did not participate in the bitcoin trade. you mentioned tom lee, i was one of the people saying we're going to have the v shaped recovery. that was what the easy money was made nobody believed the market was

going to recover earnings estimates back then were completely off. gdp was down way less than everyone expected on wall street, so i think the big money here, joe, has been made, right? tesla up over 700, 800%, wherever it is today the reality of it is most of that trend is probably over at this point if you look at it historically, the s&p 500 is up over 50% over the last two years it's very hard to put another double digit return behind that. it's only happened five times since 1928, and as the economy has reopened, and really look at, you know, back in november when the vaccine news came out, value has been outperforming growth by 6% over the last three months so that rotation is already starting to happen >> and you think it's going to continue you point out apple, amazon, microsoft, facebook, alphabet may have all peaked. >> well, they did. >> versus the rest of the market you say, in fact, investors should sell the s&p 500, the reopening of the economy will

result in a broadening of the rally with a rotation away from megacap tech why sell the s&p, you're saying it's a broadening of the rally but you're using the word rally. are the overall averages going up, you just think you should emphasize value now versus growth >> the other problem too with the s&p 500, you know, i came up with a new acronym over the holidays after too much eggnog, and that's fat gam, the six stocks that drive the performance of the s&p 500, you know, facebook, apple, tesla microsoft, apple, google, they account for 24% of the index, and the reality of it is they don't really participate in the reopening of the economy per se. you know, those stocks are already trading at extremely high multiples they've got regulation issues coming down the pipeline, and the reality is they benefit the most from us being locked inside i don't think we're going to be ordering more stuff off amazon when the economy reopens

the bottom line is you're at a point if you want to participate in the reopening of the economy, you've got to own old school stocks that you're not going to get that exposure. there's 494 stocks in the s&p 500, they're just not, you know, the waiting representation is so low there that you're not really going to get that reopening trade if you own value stocks. >> so you like energy, among other things, you like small caps small caps have been participating to some extent, no >> up 100% since the bottom in march, but you've got to also remember, they did nothing for two years, from 2018 to 2020, around november. you know, those markets were pretty much sideways, you start looking at commodities they have been in a bear market for years. energy at 70% below, prices that you had in 2014. so a lot of these sectors are coming out of a bear market whereas if you look at growth, you know, growth has been at the zenith now, really building over the last couple of years, and you start looking at multiples,

historically, they're just so high, and you and i know, joe, remember back in '99, 2000, it didn't end well. eventually when multiples get that high, if you bought the s&p at the peak in 2000, it took you until 2013 to make money in the s&p 500 again. it's okay to be earlier. >> there was not much e back then there's more terms and conditions now things aren't quite as much of a stretch. you can't deny some of the stuff we're seeing just a lot of asset, stocks, a lot of commodities, things just look like they're on stilts. obviously nothing grows to the sky. thank you, ryan. and happy new year. >> thanks, joe happy new year, nan. >> andrew. >> when we come back, social media companies locking president trump's account after the capitol hill riot.

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president trump finally conceding the election and condemning ri condemning rioters that stormed capitol hill there are growing calls for impeachment. we have the details straight ahead. futures this morning pointing to even manufactuore g. and today's report could tell us a lot more about the impact of the covid lock downs on the economy. we get that jobs report coming up in just an hour and a half. plus, pfizer's vaccine appears to be effective against newvariants of the virus we will speak to dr. scott gottlieb about the vaccine rollout and the battle against the pandemic as the second hour of "squawk box" begins right now. good morning, and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. take a look this morning at u.s. equity futures, about 2 1/2 hours before the market opens.

of course we're going to get those jobs numbers which could move this around a bit the dow looking like it would open up about 81 points higher right now. nasdaq looking to open 47 points higher and the s&p 500 looking to open about 11 points higher 8:30 eastern time today, the jobs report will be released economists expecting a gain of 50,000 jobs and unemployment rate of 6.8% those are the numbers to beat, if you will. joe? >> yeah, still very important and very interesting to watch. a little bit, i don't know, when there's an election or something happening, it always seems more interesting to watch those friday numbers i have heard about them. oh, yeah, we need to know, obviously. with the covid bounce back, and everything else and where we are in that process. it is amazing that we just heard someone say we'll be at full employment not that far from now. they called full unemployment

5% though it's still important to monitor these things, but it's sort of a lame duck jobs report. >> it's not just a lame duck it's backward looking in an economy that's changing so rapidly, too that's been the issue we have been sitting with. we definitely want to get a check to see what happened as some of these lock downs began again. we are looking at a number that's going to be outdated. >> as the vaccines are rolling out hopefully. anyway, president trump acknowledging that joe biden will be president, but didn't take responsibility for the mob of his supporters who breached the capitol. eamon javers joins us with more. good morning. >> good morning, joe, it took more than 24 hours for the president to acknowledge that after the riots, but acknowledge it he did. the white house produced this video. the president recorded it in private, and released it on twitter last night here is the moment where he acknowledged the results of the election

>> congress has certified the results. a new administration will be inaugurated on january 20th. my focus now turns to ensuring a smooth, orderly, and seamless transition of power. this moment calls for healing and reconciliation >> reporter: so words of healing from the president of the united states even as his staff and cabinet members continue to resign we now have two cabinet secretaries who have resigned in protest of the president's behavior on wednesday during the riots, elaine chao, the secretary of transportation, and betsy devos, secretary of education, both placed plblame t the feet of the president of the united states, and we have seen a host of west wing aides, the deputy national security adviser, the first lady's chief of staff has resigned, all of that adding an air of chaos to the final days of the trump administration meanwhile, guys, tragic news late yesterday, the capitol

police put out a statement saying one of their officers has now died as a result of wounds that he suffered during the melee on capitol hill. they say the officer was physically engaged with demonstrators on capitol hill, went back to police headquarters and collapsed there. he died yesterday, the capitol police say and separately the fbi is offering a $50,000 reward for any information on who it was that placed the apparent pipe bombs at the headquarters of the republican national committee and democratic national committee during the course of the rioting and rampaging on wednesday. so the investigation now beginning, the political fallout continuing as nancy pelosi and house democrats are talking about moving forward with another impeachment of the president of the united states an open question now of whether there would be enough republicans to vote to remove him from office in the senate. that political dynamic seems to be moving moment by moment, still seems unlikely at this

point, but it's a very fluid situation here in washington, guys back over to you. >> yeah, there's not a lot of time there's not a lot of time. and it's not going to be a 25th amendment, i don't think i think pence said no to that, right. >> reporter: yeah, i mean, that's the indication we're getting but you're seeing calls from the "wall street journal" editorial page. >> that was for a resignation. >> reporter: calling for the president to resign. a column from peggy noonan, calling for the president to be removed from office immediately and making some grim historical comparisons to other leaders in world history. you know, those things can move the need needle wiand we're seeg payback to supporters who blocked the electoral count. take all of that into consideration, and you may have

some republicans moving on the idea of an impeachment and removal but we haven't seen it yet, joe. >> right we have learned in the last four years that 12, how many days we got, 12 days normally isn't a long time. but there have been certain weeks that were like six months long in terms of news cycles but i remember when we were coming up to the election, it still seemed that it was far away and i bought a carton of milk that was after, you know, the date on it was after the election, i bet i could almost find a quart of milk that is past january 20th, maybe, so that's how close it is i just don't see how you could do the impeachment. >> the historical question, joe, here is what message does it send to the future and what signal does it send to future presidents if this president is not impeached and removed in the

wake of his conduct on wednesday. and then the short-term security question is does an impeachment and removal further inflame tensions and make the situation more dangerous in terms of trump supporters that we saw in action on wednesday how will that group respond to an impeachment and removal all of that has to be taken in the balance of what's the best course of action for the country today? >> i think you have to worry about whether, you know, we're going to move on january 20th, and that would be residual i'm not sure it would be great for nancy pelosi to do it again because there's another election in two years i'm not sure who benefits. i mean, obviously people talk about the nuclear codes and who knows. i don't know, it just doesn't seem like there's enough time and it's going to be over before we know it you know how i know that, eamon,

because of weekends that you always talk about. by the time you tweet weekend. >> it will happen. >> it's already monday by the time you tweet a weekend, it feels like it's already monday have you noticed that. there should be three-day weekends. >> blink and you miss it the anticipation of the thing is better than itself. >> the opposite of getting a shot where my son or my kids, i tell them, look, the anticipation is much worse than the shot it's much worse. becky. >> hey, eamon. just in terms of either impeachment or the 25th amendment, they seem like long shots because in either case you need congress to vote by a 2/3 vote that's like 291 votes. they didn't even get that in votes in the house this week to certify the pennsylvania elections. >> that was even after the rioting. >> to get 290 plus votes in either of these situations seems

completely unrealistic i think we talk about that too much because i don't see any way that that happens. >> it does seem unrealistic. the thing about the 25th amendment, it doesn't necessarily require congress if the vice president and cabinet were to move forward with the 25th amendment, the president could contest it, and congress would have to vote, and there's a time clock, and it looks like the time clock is longer than the president has remaining in office. so at this point, they could vote and sort of remove and table the vote for a long period of time that extends past january 20th, and that's the end of it, if congressional leadership. >> and the vice president is the acting president while they sort it out >> that's right. that's right, so mike pence would have control of the government during that period of time you would have an angry president trump claiming that he is the president and pence is a pretender, and that could be an

awful, and you know, disturbing dynamic for the remaining -- >> especially with the cabinet that you're already seeing so many people leave, and you have all of these acting members of the cabinet. i don't know what would be a majority of the cabinet. what would be considered a majority of the cabinet. none of this has been tried before. >> there's a real question about acting members, and who has to actually support this. is it the acting, only the confirmed members. that's something that lawyers and constitutional experts would have to get into that said, i don't think there's the appetite in the trump cabinet and with the vice president to move that way right now. you have to think out all of these scenarios. all of this is at least plausible at this point. >> eamon, thank you. we'll check in with you again soon another day, another bullish wall street session that saw record closes for all three of the major indices. this morning, we have more of the same, the green arrows, dom

chu joins us with the biggest movers. >> you almost don't want to look at your 401(k) statement, you don't want to look now because it seems took up and away. you said the three major indices are in play. all three hit record highs i want to note that the russell 2000 small cap index thhit a record high. the last three months in that period, 2020 was very much the year of the nasdaq 100 and the nasdaq composite, a huge outperformer in the last three months, the s&p is up a respectable 11%. the nasdaq 100 as measured by this etf is up 12 1/2% look at the small caps, up 30% during that time the small cap rally has been something huge to talk about we'll see if that continues. one of the stocks we're watching this morning one of the trades, it's chevron. if you look at chevron shares right now. they have been a huge und underperformer, they're getting an upgrade

they're putting 113 price target they like better free cash flow prospects. they think that the under performance is an entry point. they say it's a buy equivalent ratings. chef ro chevron one of the stocks this morning. we talk about tesla and bony tesla has outperformed bony with the massive bony rally we have seen over the last couple of months if you take a look at huge spikes in both stocks, since the pandemic lows if you look at tesla stock, it is up over 1,000% since its lows in march the respective lows for bony here up only, i can draw that one over here, roughly 750% there, so if you look at that, tesla is also getting an overweight today right now andrew by the folks at ever core, the inline or a neutral rating, a $650 price target. it's a mea culpa

bony bitcoin is over a trillion dollars, right in line with alphabet, the parent company of google back over to you guys. >> thanks, dom, appreciate it. when we come back, we're going to talk about the role of social media in politics. the president's ban on twitter lifted but wednesday's events at the capitol seem to have stiffened the spines of platforms who many times gave the president a slap on the wrist. that conversation is next. before we head to a break, though, let's get a check on the markets, where we are right now, the dow up about 98 points nasdaq looking to up 60 points higher, s&p 500 looking to open about 6 points higher. back in a moment save hundreds on your wireless bill

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the problem on facebook is different is that it amplifies echo chambers on purpose and by design if you're somebody who for whatever reason feels disenfranchised you can find a corner of the internet where you can amplify your worst fears and unfortunately 90% of that activity now happens inside of facebook the reality is i think we've all realized after today that section 230 is a fig leaf, that there is no way that these companies can hide behind it that facebook is a publisher, that they should be held to the same account as any television station or any newspaper and that's okay. and they should just figure out

how to adapt the product and move on. >> that was on cnbc yesterday talking about facebook coming after the platform, said it will block president trump from posting to his account for at least the remainder of his term. joining us now to talk more about social media, its role in politics, and what should come next, jonathan greenblatt, ceo of the american defamation league, and kevin o'leary, a cnbc contributor, good morning to both of you jonathan, i'm curious as, you know, you've had a campaign now for quite some time around facebook and around social media more broadly, but it also -- you've also seen the power of social media on both sides in terms of a decision being able to be made by a mark zuckerberg or a jack dorsey that has huge impact, and i know that, you know, there's two sides to that. >> sure. i mean, look, social media has

done certainly some positive things, and services like facebook have connected people services like twitter have allowed information to flow faster let's be clear wednesday was a dark day for democracy. and those rioters that coordinated attack on capitol hill, it was enabled, it was facilitated by the social media services which have literally allowed president trump and some of his fellow travelers to spawn disinformation, to incite violence and literally to encourage sedition as people storm through the capitol. look, i worked in washington for many years i testified before congress many times. i could never imagine that the temple of our democracy would look like a scene from the road warrior. this was incredibly disturbing and twitter and facebook and the others, they need -- they need

to permanently ban this president because i got to say, i saw the lead-in to this segment. this is not about politics and social media this is about principles and social media this is about our nation's purpose in social media and as i have said on this show before, they need to abide by the same standards as every other media company and treat their users accordingly. that's the least we can expect from them. >> kevin, who do you think should be making these decisions? >> so the only reason jonathan can say the things he's saying, whether you agree with him or you don't, is he bathes in the freedom of expression and freedom of speech given to him by the constitution of the united states which says we the people, not you the person and the whole point is that there's a cost to free speech. it's the lunatic fringe. it's the 1%. they have a voice too.

and for generations and hundreds of years, you'vehad to deal with that. there's always going to be the haters there's always going to be the lunatics but would you in any way impede free speech i personally do not want a ceo of a company telling me what i can read or hear i don't care if it's doherty or zuckerberg or anybody else something else that has been lost in this crazy week we have had, and i don't endorse any of this activity at all, but the backbone of american small business that i participate in is social media. we would have not got through 2020 without having social media and digitization to allow us to connect directly with our customers. where does $0.80 on the dollar of that go right now, it goes to facebook because they have geo locked advertising if i have to shut my doors down, i can geo lock advertising for 100 miles around it. let other technology replace it. i don't care which technology is there because we know it's very

volatile and it changes every decade but we cannot shut down facebook we'd be shutting down america. so let's come up with a better idea. >> kevin, here's an idea, the u.s. constitution. let's start there. freedom of speech is not the freedom to slander and kevin, freedom of expression is not the freedom to incite violence, that's not protected speech. you can't do it on "squawk box." you can't do it on "the new york times," and i'm sorry, you shouldn't be able to do it on facebook and i have been a small business owner myself small businesses existed before facebook they will persist after facebook to suggest that social media is critical for the u.s. economy to function, i'm sorry, even if you believe that, and i think that's a stretch, this isn't about some a argument in a constitutional law class. this is real life. this is literally armed militias storming through the u.s. capitol because they were egged on by the user of twitter who despite serial violations was

not taken off the platform like there are real world consequences to online speech. and there are real world results like five people dead by what happened there, so i am all for free speech, the adl has been fighting for the first amendment before you and i were born but what we're talking about here should not be confused with the first amendment, and lastly, if president trump or in alex jones or if any one of the neo-nazis who we saw literally desecrating the seat of our government, they want to spew their venom, they want to spout their violence, let them do it somewhere else jack dorsey, mark zuckerberg, sun they don't just have an obligation to their shareholders, they have an obligation to their children and grandchildren. they need to look them in the eye and say what side of history was i on in the moment when it really counted. >> you know, look, i agree with

much of what you say, and i'm proud to be able to say that you can say this in our society. you can say whatever you wish, and you are. you can't do that in many other places but going back to facebook that you're attacking and twitter, there are millions of men and women and their families that use those platforms to feed their children that's how business runs in america. this isn't a speculation, jonathan this is a fact you will see it quarter after quarter. you can't begrudge this anymore if you don't have retail you need social media. that's fine. >> kevin, can i ask a question, though, can facebook work for small businesses like yours and the ones you own without donald trump or others and let's say others that try to incite violence or try to incite anything, and the second thing is you're a private enterprise

guy, you decide who you want to do business with, who you'd let in the store, and who you won't. as long as you don't discriminate based on protected classes, you and i would agree you can make those decisions this is not a, you know, free for all. >> it's not perfect, and it never will be, and social media is a relatively new platform it's only been 20 years in the making and so we have to adapt to it. if you want to press 230 itn it and you want to litigate, i understand that, this is a separate debate. this is a don't throw the baby out with the bath water. what happened this week is horrific there's no excuse for it, and it was empowered by social media platforms,the very same platforms, is my point, that provide for millions of others families to run their businesses and this is very important 60% of our economy so i realize that, you know, people want to blame everything on social media, and maybe

because you're supporting a lunatic fringe with it, that is the price. that is the cost of freedom, my friends. i'm sorry, but that's a fact. >> i'm sorry like i think the time for arguing about moral relativi, t about incitement and violence. we need to recognize that facebook has 3.2 billion users we're talking about one of them. we're talking about one of them who should be suspended and taken off the platform, not temporarily but permanently for the kinds of violations, kevin, just so we understand one another, that other users have been removed for the same goes for twitter and the other platforms. i mean, look, i don't believe -- i believe we need to reckon with the reality that the exception for political, you know, figures needs to be replaced by a very simp simple, all men are created equal. >> are you telling me you want the right to decide who i should

hear and see from, you want that, you the person, not we the people, i'm sorry my friend, i can't get there. >> kevin, there's a reason why you don't have white supremacists on shark tank you could if you wanted to, you make those decisions, your producers do with every episode and every season, all i'm saying is if you go on shark tank and incite violence, you should face legal consequences and what i would say to you is facebook and twitter need to reckon with the legal consequences, having a person on the platform who incited violence if you violate terms of service, you're off that should apply to me or to you or to donald j. trump. >> look, i understand that, and it's a very delicate time, and of course we don't put white e supremacis supremacists. >> they have a right to free speech. >> but the point is social media gives the individual a voice, and what i'm hearing you say, jonathan is if you don't like that voice, you want it wiped

off the map. that is not what the constitution says. >> no, you are hearing me say if you break the law you face consequences if you violate terms of service, you face consequences and today on facebook and twitter, on twitch and you tube, there have been remarkably lax lackadaisical about enforcing their own terms of services. >> we have the laws. if you want to change the laws, push through the 230 i get that make it the law, and then you can do it. we have laws and we have to abide by them, and by the way, democracy is working this week, next week too. it's right back in action and we're going to have a transition it works. >> i'm sorry, there are five people dead and it didn't have to happen, kevin it didn't have to happen >> guys, we're going to have to leave the conversation and debate there, though i know it will continue. jonathan and kevin thank you for joining us this morning. great to see you both. becky. thanks, andrew

coming up, former citigroup chairman dick parsons on the chaos in capitol hill, the markets and much more. we'll be right back. time now for today's aflac trivia question. in july of last year, which beer replaced budweiser as the official beer of the nba the answerhecn'ssqwk wn bc "ua box" continues coach saban... i crutched out to the mailbox and there it was - a medical bill for twelve-hundred dollars. i had no idea i'd have to pay that. that's right. it's hard to know exactly what your health insurance is going to cover, so you gotta protect your blind side. aflac! aflac pays you money directly to help with expenses health insurance doesn't cover. really? aflac. get help with expenses health insurance doesn't cover. get to know us at aflac.com.

closing the books on 2020

payrolls, did the holidays boost hiring where could new covid strains and vaccines continue to impact the work force december employment numbers today. watch "squawk box" anytime on demand now, the answer to today's aflac trivia question. in july of last year, which beer replaced budweiser as the official beer of the nba the answer, michelob ultra >> it's all right. lower carbs. lower calories still to come, former citigroup chairman dick parsons talks wall street and capitol hill. and surging covid, we'll speak to former fda commissioner

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this way to health insurance. enroll now at coveredca.com welcome back, everybody, our next guest says that he's concerned the country is tearing at the seams right now and that the markets are in a melt up and that concerns him too. joining us to talk about that and so much more is dick parsons, senior adviser at providence equity partners, also the former chairman of citigroup and the former ceo of time warner dick, i have always thought of you as a statesman and a voice of reason, and we could sure use a little of that right now thank you for being with us. how do you feel about things after this crazy week? >> first of all, how are you, nice to talk with you. and i'm probably feeling like most americans are feeling right now. a little bit of a sense of shock

and sadness, and also a sense of embarrassment in terms of our country around the world you know, tv is a powerful medium, bringing those images and that crowd storming the capitol. >> what needs to happen now? because, you know, we're just wondering what comes next, what would you advise >> well, i'm hoping that the incoming president, and i think his natural skills run towards healing, and that's what we need now. we need some healing words, and words of unification i think there will be a lot of time in the next week spent -- can you hear me, becky >> yeah, dick, we can hear you, but i think we're having a little bit of freezing up on the feed right now let's try and talk this through,

and maybe we can correct some of the technology on that i don't know if we can improve the feed at all, but what you think needs to happen next, coming from the incoming president, let's say the next 13 days, there's so much focus on that right now should we be focused on that should we be focused on january 20th and beyond? >> i think we should be focused on january 20th and beyond there's a lot of speculation to whether the 25th amendment should be invoked and impeachment, but as a practical matter, there's no time for any of that. i just think that the incoming president has to really have has a high priority bringing this country back together, at least starting the process >> how does he do that well, you start with words, you know, he's the one that says a president's words matter, and they do. and i think, you know, speaking to all of the country, including those people who happen to think

donald trump should still be president, speaking to everybody, and assuring people that he is going to be the president of all of us, and that he's got some plans to bring in those folks who felt or who feel like they have been abandoned or overlooked or ignored. i think it's going to be an important part of his program. >> there were some moves yesterday, including his announcement that he's looking at merrick garland for attorney general. i mean, that would be, a step like that, saying they're looking for moderates, people who are willing to work with both sides of the aisle. >> yeah, i think first of all, i think that's a brilliant selection. and i think that, you know, in fact, joe biden is a moderate. joe biden is not, you know, sort of on the far left he's in the extreme middle and the kinds of people he's bringing in are talented, thoughtful public servants, and that's what this country needs

now instead of people who are focused on their own political lives and agendas. >> dick, part of it is trying to end some of the divisiveness in this country, and look for unity, but the other very immediate issue is trying to deal with this pandemic because while we didn't talk about it much yesterday, we did see the highest death toll in the nation yesterday as a result of covid so that's what so much is hinging on, getting that under control, getting the vaccines rolled out appropriately, and making sure that our economy can recover from the massive hit it's taken it seems like a lot of jobs need to be job one. >> i think on the covid front, i mean, what we're seeing is what all of the public health officials and doctors have predicted, a huge spike after the holidays and i think if they are correct things should start to abate around the middle of this month. now, what we need and what we've

needed from the beginning is some leadership at the national level that helps give all of us some guidance how to act and react, and we also need the states to come togetherin a wa that they can coordinate the rollout. i'm right now down in florida. we left new york because guess what, i can come down here and i can, you know, schedule a vaccination in a matter of days. in new york, they're still busy trying to hand out the vaccines to the various dispensers and nobody can tell you when they're going to get their allocation or how much they're going to get. every state is different, and frankly, it's a bit of a mess because there's no coordination, no national leadership i think what biden has in mimind is doing just that, providing

some national leadership, guidance >> i know that florida has said that anybody aged 65 and up can get it if they make an appointment. you've got an appointment for sunday to go ahead and get your first vaccination. >> yep, i do you know, and it's orderly and sensible i don't know how florida sort of stole the launch on everybody else but you go online, you make an appointment, you get an appointment, you get a certification number for what time you're supposed to show up. you show up, they give you a vaccine, tell you to come back in three weeks and you're done for the day. >> yeah, it would be nice if the rest of the country could move to a system similar to that sooner rather than later what do you think about american business you said about this call for leadership, and there have been a lot of business leaders who have spoken up and who have stepped up what is their responsibility at this point >> well, i think their

responsibility hasn't changed, you know, corporate leaders have responsibilities, not just to their shareholders but to their employees but to their customers and those responsibilities remain in tact i fear, you know, one of your colleagues, andrew, wrote a piece, i think, yesterday, where he calls into account some of our corporate leaders for what he regarded as complicity encouragement of the trump administration to sort of engage in some of the craziness that they have over the last four years. but they're now sort of, you know, calling the president to account. the major responsibility, of course, is shareholders employees and customers. but i do think the corporate community as a whole can play a role and is beginning to play more of a role in terms of being almost a moral compass for the country. what is good, you know, i don't want to say what's good for business is good for america, but in point of fact, what is good for business is good for

america. and that's more than just making money. it's being responsible corporate citizens and i think there's more of a focus on that today than there has been in my business lifetime >> dick, you mentioned that you think that there's a melt up taking place in the markets and that concerns you. what is it that you're seeing, i mean, other than the obvious than hitting new highs every day. what makes you think that -- >> you know, we're into a sort of a buy everything mode, you know, everything is going up and money is pouring into the market, driving, you know, the weight of money driving things higher and there seems, in my judgment there's a kind of a disconnect that's growing between the growth in the market and the state of the real economy. and eventually the state of the real economy is going to catch up and i am concerned that we could see, you know, a bubble

bursting and, you know, the markets falling precipitously, and this has happened before after melt ups the market always crashes, and you know, if it were to crash at a point in time and we have other issues like the pandemic that we're dealing with or, you know, a seriously injured global economy, it could portend a lot of difficulties for us going forward. i worry that, you know, the market is sort of disconnected itself from the real economy and what we're seeing -- >> if i had a conversation -- >> just seeing the weight of money push everything up >> you know, i had a conversation with the celebrated investor yesterday who when i made that argument said, well, the interesting thing is if you look at how much money we're spending as a federal government, and how much more likely we're to continue to spend, you could make the argument that inflation has come again. if that's the case, the market

is your hedge for that the market is the one place to be for that scenario, maybe it makes sense to continue to see stocks rising to new highs. >> well, you know, this goes to one of the reasons i think the market is moving up now is because people are convinced that, okay, now we've got a government that can function in washington, and what's likely to come out of there more in terms of monitory policy, more money for more people, and that's likely, you know, and we're going to move to $2,000 per person as opposed to 600 and all that sort of thing, and that money is going to be spent, and it's going to go into corporate coffers, and profits will go up and earnings will go up and the market will lead that, but, you know, at some point in time, somebody has to pay that, and that's when i think inflation becomes a real likely outcome, but that's not going to be for a

while, so in the interim, people are jumping into the market and saying, well, you know, i'll see the correction coming and i'll get out ahead of time, but maybe you will and maybe you won't but secondly. >> right. >> for those, you know, this helps those who are in the market, you know, half of our citizens aren't. and, you know, wealth gap is going to grow and the haves and have notes are going to become more and more distinct, and none of that is going to help in terms of pulling our country back together. i'll tell you that i think, hopefully, that the new administration will focus on how we can have a more equitable allocation of society's bounties the way i put it how we can equitably spread the wealth so we don't have this dramatic and growing start, differentiations between haves and have notes that's at the core of our

societal problem right now >> yeah, dick, we got a lot of problems that we could spend more time talking about. we hope to have you back soon. it's always great to talk it you, really great to see you. >> it's nice to talk to you, becky, and happy new year. happy new year to your colleagues, too. >> happy new year to you thank you very much. >> and the fellows. >> thank you very much. >> talk to you soon. >> okay. take care. >> andrew. >> thanks, becky coming up, when we return, sofi is announcing going public by a spac, we'll give you the detail after the break. take a look at financials with rates moving higher and the prospect of more government spending it's lifting the sector you're looking at the bank stocks across the board up and citigroup up 1%. we're back in 60 seconds

welcome back to "squawk box," sofi going public via a

spac, valuing sofi at $8.65 billion. the company taking, contributing along with his cofounder, ian osborn anthony noto is going to continue to run the company after the transaction closes he a t reweavlomo coming up "squawk box" returns right after this with dr. scott gottlieb save hundreds on your wireless bill

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news out in the last half hour u.k.'s medicine regulator has approved the moderna covid vaccine for use. the u.k. has been administering the pfizer and astrazeneca vaccine. pfizer's covid-19 vaccine appears to be effective against new variants of the virus according to a study conducted by the drug maker. that study has not yet been peer reviewed for the latest on the battle against the pandemic, let's bring in former fda commissioner dr. scott gottlieb, he currently serves on the boards of alumina and pfizer, and he's also a cnbc contributor. the new variants, scott, are similar enough in the spike protein to where the opposite finding would be more surprising, at least to me, than this finding that the vaccine does appear to be effective. do you agree with that >> yeah, i do, joe you know, the vaccines are producing what's called a

polyclonal effect. it's the spike protein in these vaccines so you're producing antibodies against many regions of that spike protein. the mutations are mutating selectively. what's concerning about the south african variant and perhaps the scottish variant is they mutated the region on the spike protein where we developed some of our best antibodies, receptive body domain. that's the domain where we develop what's call neutralizing antibodies the worry is if you change that region of the spike protein enough and the antibodies that would traditionally target that part of the virus are no longer operative, no longer as effective, the antibodies aren't as good. that doesn't seem to be the case yet, and it's also probably not going to be the case probably that you're going to see a sudden mutation where it's going to obviate the vaccine in a span of one season. what you would likely see if this virus is able to mutate in ways that invade our counter measures and vaccines is that the vaccine may lose

effectiveness against certain strains but not others but it wouldn't be the situation where you go into a season and it would be entirely ineffective or that we wouldn't see that coming, so i do think this is not like the flu vaccine but we're going to need to have a better surveillance system and we're going to probably need to update these vaccines over time. >> does it seem to be really efficient at mutating more so than other viruses, scott? is there a reason to worry about a more deadly strain down the road, not just one that's more contagious >> perhaps i mean, you know, we don't really know with this strain what's going on. it appears to be more contagious, it appears that with the u.k. variant at least that what you're doing is you're shedding more virus, but that's early experimentation. we don't really understand why this strain is spreading more readily, but it's possible that you're going to see strains emerge that are more pathogenic, that either cause a more severe

disease, they bind more tightly to certain receptors so, you know, i think many people seem to be surprised that the virus is mutating this quickly, but the reality is that we've been with this virus now for a year it's infected millions of people around the world, and it's been subject to selective pressure, so this is about the time that you start to see these new variants emerge. i think what this underscores is we need a very good surveillance system with sequencing that allows us to detect these variants, no one there emerging, becoming prevalent, and then update counter measures, not just the vaccines but also the antibodies. >> hey, doctor, the last time we spoke, i think maybe it was wednesday. you made a comment that i think got a lot of attention both online and elsewhere i got e-mails and calls about it actually, where you seem to suggest that you were more concerned than you have been about what the time line looked like, that actually the time line of getting back to quote unquote normal was perhaps going to be very different, and i was

wondering if you could explain that you also put out a comment on twitter related to it. >> well, you know, there's two scenarios. there's one scenario where we have a very dense epidemic which we're going through right now. you know, at some point we will peak in terms of the number of daily cases and we may peak at some point in the next week or two. now, deaths and hospitalizations are tragically going to lag that peak in new cases, but at some point we're going to have so much infection, and we'll have vaccinated enough people that the virus is going to start to burn itself out. it won't go away but prevalence will decline by the end of the this month we'll have infected probably about 30% of the american public, and maybe vaccinate another ten, notwithstanding the very difficult rollout of the vaccine. you're starting to get to levels of prior exposure in the population where the virus isn't going to spread as readily we're heading into the spring and prevalence would decline readily as we get into the backdrop of the spring and summer with that much immunity

in the population. the u.k. variant takes hold here, and that extends how dense the epidemic is and also increases the rate of infection you're going to see over the course of the spring and summer, might not go away entirely that's why i think we're in a race against time with this vaccine trying to deploy it as a bok stop against this variant before it takes hold the other part of this equation is let's say we have the more optimistic scenario, we have a relatively quiet spring and summer, prevalence is low, life gets back to mostly normal, what does next fall look like, and i don't think next fall is back to twanl 2018, i think it's a new normal. we're more vigilant about respiratory pathways in the workplace, we do things differently, back to work, back to travel, we're doing things differently. people are wearing masks but it's voluntary we're not crowding people into small spaces, conscious of air quality, taking temperatures in public venues, public asked to fill out symptom questionnaires, things will be different at least for one cycling i think we have to get through one cycle with this, trying to

do normal things, and preventing an outbreak, and next winter probably is going to look like a really bad flu season. i think the best case scenario is it looks like a really bad flu season where we don't have hundreds of thousands of covid deaths but there will be tens of thousands. we won't fully extinguish, and i don't think we'll get the vaccination rates up where we need to be it's going to be hard to vaccinate the public right now, there's more demand than supply. at some point, probably sooner than later, there's going to be more supply than demand and we're going to have to work at it. >> i want to try to get any temperature up a little. if i'm 96 every time, am i okay. don't answer that. i know it's okay it's amazing, i don't know where we got that 98.6 number. scotts, thanks, we hope to see you again soon andrew. >> a lot more to come. coe-ceo and president of aerial investments, melody hobson is going to join us we'll have that conversation next

pod we're a half way to the jobs rert we'll bring you the action at 8:30 eastern "squawk" returns after this with a big hour ahead eleven. why do an expense report from your phone when you can do it from a machine that jams? i just emailed my wife's social security number to the entire company instead of hr, so... please come back. how hard is your business software working for you? with paycom, employees enter and manage their own hr data in one easy-to-use software. visit paycom.com for a free demo. hon? first off, we love each other...

good morning growing calls for president trump's removal from office after wednesday's mob violence

at the capitol the president admitting for the first time he lost the november election meanwhile, markets pointing to gains at the open after across-the-board record closes yesterday. and it's jobs friday, economists expecting a barely positive number, the data and expert analysis coming up the final hour of "squawk box" begins right now i just heard someone's phone. whose was that good morning, and welcome to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin you're the one, you're copping to it, beck. >> it was an alert my phone, it's not my phone ringing. it's an alert. i don't even know what for

>> i heard that alert. have you seen the geico guys telling you not to turn into your parents you can turn off your phone here i don't have that on my phone. you all have that on your phone. i'm reading a book about submarines, who else does that my dad, yes, your dad. u.s. equity futures at this hour are indicated -- >> do you know this guy, no, you don't know him, stop telling him how to back up. >> the waiter doesn't need to know your name. >> we all see the blue hair. don't look >> he has blue hair. he has blue hair nobody knows what we're talking about unless they watch tv that's progressive, isn't it, that's not geico anyway, treasury yields at this hour as you can see with the averages up, treasury yields are maintaining that move above 1%, but just barely, and this has become, i guess when it does

stuff like this, bitcoin hitting new all time highs this morning, well above $40,000 unbelievable i remember when i asked katie stockton, i was joking i said do your charts indicate 50,000 for bitcoin, and i don't know maybe they did maybe that was in the charts, becky, i don't know. crazy. >> all right let's talk about what's happening in washington. president trump admitting for the first time that he lost the 2020 election. in a video that was posted to twitter, he condemned wednesday's violence at the capitol and said he'd now focus on ensuring an orderly transfer of power, this comes as his secretaries of transportation and education both resigned and calls grow to either invoke the 25th amendment or remove trump from office or impeach him for the a second time. >> it appears markets are undaunted. we saw it in may after the death of george floyd, and again this

week for insight and commentary on this apparent disconnect, we're joined by mellody hobson, co-ceo of ariel investments, it's great to see you so much to talk about since the last time we had an opportunity to do this here on "squawk box," and i wanted to start with this idea of the disconnect but i also know you have some pretty interesting views about what's happening in the investment world and where people should be thinking about putting their money, but let's get to that in a second how should the public think about the disconnect issue >> the disconnect between how the market is doing and what we have seen in washington, is that the question >> yeah, yeah. >> i asked bill miller this question yesterday we had a great conversation with a bunch of value managers and bill said something that i thought was really smart he said nothing changed in terms of the market outlook yesterday. nothing changed in terms of company profits yesterday, earnings, nothing changed. that's now a couple of days ago. i think that point is the right point. the market, you know,

anticipates the future and in looking at the future for american businesses, global businesses, despite the travesty that we saw, the images that are hard to forget that i never expected to see in my lifetime, despite all of that in terms of the under pinnings, the foundation of the u.s. economy, nothing changed. >> so when you look out, i mean, and you look at the companies that have done well in the markets, clearly the growth companies have been the great winners of this last six months, this last year or so, and people keep talking about value, that there's going to be this moment that we've got to get into value. you think now is that moment >> first of all, growth has trounced value for 13 years. it has been unbelievable but the pendulum has swung way too far. when you just look at all of the stats, everything from the multiples on the market, to the

kind of out performance we have seen for growth stocks recently, versus the historical norms that we should expect, we're in nosebleed territory. we have started to see a crack in the 4th quarter in the early days of 21, and i think we will see that continue with value starting to take the lead. value should do better in a recovering economy we looked at 14 recessions since the great depression value out performed in every single one of them, every single one across all sectors it tends to do better when profits are rising, when rates are going up, which we anticipate at some point will happy. so i think better days are ahead for value and the wind will be out of the sales for growth, especially if you see rates rise. >> do you look at this, though, as a great rotation, meaning that the growth stocks lose to the benefit, if you will, of value or that value just starts

to emerge as a more popular class, if you will, of investment >> that's a really good question on the one hand, i'm concerned about some names just don't make sense. i mean, you know, the one that we talk about so much is tesla, the valuation, the market moved last year over 700%. literally having a market cap bigger than the entire auto industry, there is a disconnect there where you say there's probably a crack ahead for some of those stocks that are just in heavy heavy territory. but they don't have to break for value to do well, and i think that's your point. you continue to see the overall market do well, just growth not do as well as value will do in this next phase of economic recovery >> we keep talking about value, but let's just break it down for the viewer what kind of stocks are we talking about, what kind of companies? >> well, we're talking about a lot of companies that have been orphaned in this current environment, especially, and it was interesting, when we had

this conversation yesterday with some of the greatest value managers around like mario gabeli, bill miller, like david hero, like john rogers, their point was they would probably see more leadership among small cap value than large cap because small caps have been trounced in the last decade versus their large cap brethren there are a lot of names out there. john was a big nan of nielsen, he talked about some of the media names that still haven't done very well, and that's an example of a stock that has been left behind but has a lot of opportunity ahead of it. there have been some smaller names that have had a big move but are still believed that they could still do well, names like kkr and lazard, so i think there's a lot of opportunity because so much of the market's attention, as you know all too well, has been on the faangs and on the big guys and on the growth stocks. >> we keep talking or have been

recently showing the bank stocks which have been on the rise, part of that has to do with what you're talking about, i think, is the prospect of what you think the fed may or may not do. my question is when do you think the fed is actually going to move if they're going to move at all? >> i don't know that answer, no one does, however, what i would say is we do think that there will be more demand on a going forward basis in terms of this economy, and i think because of that, you may see more inflation sooner than what the fed has stated in terms of this two-year period where they would be keeping interest rates low you know, we're anticipating some kind of consumption boom. people have been locked up for so long, the savings rate for the typical american is higher than it has been there is money there despite the unevenness in terms of where there is true devastation in this economy, in terms of lower income individuals this consumption boom could lead to, again, more inflation than we anticipate, prices going up,

pricing power being there, and ultimately the fed needing to move >> i'm curious, and i don't know if you asked, you know, you put this great group of luminaries together, what everybody thinks of bitcoin we have been talking about it virtually every morning for the past month, month and a half just because it's been remarkable, like tesla, in that way, we're now over 40,000 this morning. >> the one bitcoin holder was bill miller, andhe was the one who said that, you know, he believes it is a state of the art breakthrough in terms of just the system itself, and thinks that it is, you know, it has legs, and he was the one who was most bullish on bitcoin. the others had no opinion. i probably would be less excited about it, but, you know, that's what makes for different portfolios. >> what was the biggest surprise that came out of that conversation yesterday >> the biggest surprise for me was there was a lot of -- there

was a lot of agreement around a couple of points, one, that more stimulus will be needed, and this is people with different political persuasions, et cetera, but they all suggested it needed to be more targeted, that the sort of broad based stimulus will not work and it really needs to go to the areas, the industries, the individuals, the parts of the geography in this country that really really need it. and i thought that that was a really good point. they were also indifferent to what republican or democrats hold congress, the house, et cetera i thought that was interesting you know, we all said we would have thought the market would have reacted to the democrats taking the senate, and yet there was a lot of indifference there even amongst the managers. that surprised me that i would have expected the market would have preferred a republican senate and a democratic house,

but they said they didn't think that was going to matter long-term and maybe that's back to warren buffet has that famous statement, markets are stronger than governments. >> before we let you go. we have had lots of conversations about trying to improve diversity on boards and managements at corporations across the country there seemed to be movement in a way we haven't seen for quite some time. nasdaq coming out with its proposal recently. i'm wondering whether you think people are going to start investing, and i wonder whether you do this, whether you actually look at the boards of companies today or the management teams of companies today and look how we invest. >> we won't avoid them, we'll invest and absolutely advocate for change, and we can look at 40 companies over the past

almost 40 years. we're 38 years old at ariel where we have affected change and led to a diverse director being added to the board we think that is in the best interest of the company and the best interest of the shareholders and so we think that this is not a fleeting moment this is something we'll continue we are very much supportive of what the nasdaq has done, adena friedman is being very brave and bold there, just as david solomon was when he talked about goldman not bringing companies public without diverse boards. a seat change has happened, and i think that it will be odd to be a company in 21st century business without a diverse board. i think it will be very odd. >> mellody hobson, always great to see you thank you for a readout and taking us inside the room of the conversation yesterday, and we will see whether this great rotation happens, and we would love to continue this conversation with you in the

future thanks. >> thank you so much bye. >> joe boeing agreeing to pay $2.5 million to settle a 737 max related criminal charge. details coming unep xt

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welcome back, everybody. boeing will pay 2 1/2 billion dollars to settle a criminal probe into its 737 max jet phil lebeau joins us right now he has the details on that front. phil, what can you tell us >> this is how a lot of people thought this case would end. the doj has been investigating what happened with the certification of the boeing 737 max going back to 2015, '16 and '17 all the way up through when it was first put into production boeing has now settled this case with the doj essentially entering a deferred prosecution agreement, and that means that if they meeting the terms of the agreement over the next three years, the charge for conspiracy to defraud the faa will be dropped. as part of the agreement, boeing will pay 2 1/2 billion dollars where will that money go 3 buckets here 1.77 billion will go to 737 max customers, we're talking about airlines, leasing companies. another $500 million will go to the victims' beneficiaries

by the way, peter di fazzio, the representative who has been hammering says that's a slap on the wrist boeing ceo dave calhoun sending a letter to boeing employees last night announcing this settlement saying i firmly believe that entering this resolution is the right thing for us to do, a step that appropriately acknowledges how we fell short of our values and expectations remember the boeing 737 max was grounded for 20 months, and that's why we're showing you all the way back to march of 2019. that's where the stock was when it was grounded by the faa you see where it's trading today. remember, it reentered commercial service in the united states just last week at the end of last year, the 28th, and you're going to start to see more maxes entering commercial service, not only here in the u.s. but around the world, but for boeing, the important thing is that they have put this criminal probe by the doj behind

them >> phil, thank you very much it's good to see you >> you too. when we come back, the final jobs report, looking at 2020, economists expecting a barely positive number. we'll get to that in just a moment but first, check out these four dow components take a look. what do they have in common? well, for starters, they all hit 52-week highs yesterday. and they're all indicated up once again this morning. stay tuned, you're watching "squawk box," and this is cnbc turn on my tv and boom,

it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪

coming up, the reason we call today jobs friday the government's december employment report is due out in just minutes our all star panel is standing emhe"sawbo r going to get to th wn quk x"eturns th wn quk x"eturns right after this at least geico makes it easy to bundle our renters and us even more...yeah, hee for bundling made easy, go to geico.com

welcome back to "squawk box" on cnbc, we're just a few minutes away from the government's december employment report ahead of the data let's bring in our jobs panel kate moore, black rock's head of thematic strategy. nela richardson will be with us, hopefully, we've got an audio issue going, but i saw her now we just need to be able to hear her chief economist at adp's research institute jason fuhrman is out of the pod storage unit, into an actual room, former economic council adviser's chairman, currently professor at harvard's kennedy school are you in cambridge, jason, just so i know.

>> i'm in cambridge. >> you are excellent, and our own steve liesman. steve liesman is with us, and i know, steve, i hope -- are you at home? are you going to get the info right on time or do we have to worry about technological problems for you because that's a big job you've got coming up. >> it's always an issue. where i am, i don't want to break the illusion created by television. >> secret, undisclosed location where you are protected. >> udl, it's called. remember that, udl >> you're like keefer sutherland, you could be the last remaining person that we need to run the entire government if something were to happen >> ready to take over. >> kate, what number are you looking for today? >> joe, i'm going with kind of a flat number here i mean, i think there's a reasonably high probability, which jason mentioned when we

did the jobs panel in december, there wasn't a lot of seasonal hiring, and manufacturing contracted and the virus shut down a lot of the economy, i don't think it's going to have a big impact on the equity market, though, even if the number is weak. >> okay. jason, i was reading your comments and, you know, you're a word smith, and you're worried about some of the jobs that don't come back being aus ossified, which happens to my legs sitting here. they don't rest on anything, and when i try and get up, it literally feels ossified, and that's very concerning to me that some of these people are going to have issues after some of these things come back. anyway, what's your number today that you're looking for? >> i agree with kate's agreeing with what i said last month i'll go with minus 50,000, what i'll be looking at is under the hood,

you said, joe, that ossification in 2021, we're going to have pent up demand, but the question is how quickly can people get in new jobs, people that can't return to old jobs, what can we do for that, speed up the demand, speed up the solving the virus. >> okay. so vaccine issues, we had dick parsons on earlier, he said he went to florida to get the vaccine because there are places, is it the demand or the supply there are people ready i wonder if we're really dropping the ball on getting it out to everyone who would take it right now so that's what it is dependent on, don't you think, jason >> absolutely. it seems like we're indisputably dropping the ball. 3/4 of the vaccines that have been delivered aren't in anyone's arms, that's crazy. >> especially if we have it. steve, i'm going to -- you know, just so i don't want someone talking over the numbers, but you need an extra 30 seconds,

should we do it at 30, or right at 8:30. >> i can't do it any earlier, joe, as much as i would like it. my forecast is there will be. >> right my forecast is there will be growth in the spring, joe, as you know >> yeah, i know. >> chance the gardner. >> a couple tough months ahead of us. >> it's time for whatever you got. >> is it here? hold on. hold on. just refreshing. down 140, joe, is the number here, unemployment rate unchanged at 6.7%. down 140,000, i'm going to go right away to the establishment part of the survey, tell you where the jobs were and where they weren't you had employment, leisure and hospitality declined wow, i have to reread this number twice, 498,000, 3/4 of the decrease in food services and drinking places, 372,000, that's because of lock downs that are out there

also down amusements and gambling, moving on, private education down by 63,000 in december it's down 450,000 since february government employment down 45,000 looking at the components of that, local government, excludeing education down by 32,000, and state government education lost 20,000 jobs federal employment increased by 6,000, the issue of state governments and their budgets. other services losing 22,000 professional business services increased by 161,000 large gain in temporary help that's good, i guess, up plus 68,000 computer systems, things like that, retail trade did add 121,000. i'll leave it there, joe going into it, the high frequency data was very very mixed. we had a couple of points that we have been following that were positive a couple were negative very difficult to seasonally adjust i have to dig into the seasonally adjusted number the issue of ossification, which

has two more syllables than you want for television, is a real issue, and really the word that's been used is scarring the worse things are, the more people that remain out of the work force, the more we'll have to sort of dig our way out of the hole or a steeper slope to climb when we do come back in the spring, joe. >> it's a great word, but you're right, and tv is supposed to be able to be doing something else and understand what people are saying, jason, it reminds me of the mummy, which i don't think anyone likes to think about that in the morning, so this is not, this is worse than you thought, jason, at this point >> it is a little bit worse than i thought, you know, we should be, you know, we're still, i don't know, around 11 million jobs short of where we should have been at this point in time, and you look, since the summer, the labor force participation rate is down people have not entered the work force over the last six months the unemployment rate is 6.7,

but that still conceals some of that unusual exit above and beyond what you would normally see in a recession this size of people from the work force a lot of that unemployment now is increasingly long-term unemployment we know those people have a hard time getting back into jobs. some of them give up some of them take jobs at lower wages. so, you know, this is a concern. we're going to have growth a couple of months from now for sure we're going to have some great growth later this year the question is at the end of the year when the dust settles, you know, how much of the damage is still there i'm worried that there will be a decent amount if it's still there. >> growth in the spring, you're playing right into steve's being there analogy. nela, are you with us, and you have audio >> i am. >> i'm going to go, since we didn't get to talk to you about your forecast, i'm going to let you forecast what you think the number is going to be now, and we already know it, so you're

going to look like a complete genius you're expecting minus 140,000 >> yes, i was expecting 100,000 job loss we saw with our adp numbers, 123,000 private payroll jobs lost we thought it would be around that 100,000 negative number, and this is consistent with an increasing correlation with the rising covid cases this has forced a lot of states, local municipalities to roll back their reopening plans, and we're seeing it in our data hit leisure and hospitality hardest. and so this number, unfortunately, is expected, and it's consistent with this cooling winter trend and rising new covid cases that we have been talking about for the last couple of months. >> hey, kate, every year when the holidays come around, we get brick and mortar retailers higher and i can't imagine they hired anyone this year, what's

that number and how does that play into this, how much of this >> joe, i was actually just looking at the retail data and numbers. we get retail sells next week, that's an important piece of data, i think, for the consumer story, but you know, the retail hiring was a little better than i expected frankly in december, i thought we would get close to no seasonal hiring, given the fact that so many people were making purchases online, something more consistent with the november data. it was pretty good the one thing i'm very focused on here is the continued improvement in the manufacturing side we're adding jobs there, maybe the magnitude of the decline in travel, leisure and hospitality is greater than we would have anticipated, but there are still these parts of the economy that are doing well, and i think the manufacturing jobs and the better than expected hiring and retail are two parts of it and kind of echo some of the data we saw from the purchasing manager indices this week.

i have to tell you, despite this print, i'm still feeling pretty constructive on economic recovery and actually on companies doing the right thing in terms of right sizing the labor force, hiring just the right number of people to continue to maintain margins and focus on the bottom line >> steve, you seeing anything? you look very diligent kwhae what else you got? >> i'm trying to do the calculations that i have been keeping together here and i'm just about to hit the plus sign and equals sign here, and i'll tell you exactly what it is. 13.7 million, and that's the total of the people who have left the work force, which is 3.8 million, and the decline in total payrolls, which is 9.8 million. so 13.7 million people there's been, i forget who said it, maybe it was powell who talked about the idea that don't get fooled by the 6.7% unemployment rate. it's actually worse than that,

and it's interesting, i don't begrudge kate being constructive from a stock market standpoint, it's probably the right call here i don't make those calls it's just that the economy has -- the market has found a way to do better than the economy because of its kind of ability to look prospectively down the line. we talked about this yesterday, joe, the flood of liquidity into the markets and the idea that, look, this economy can't operate and the markets can't prosper with a lot of people unemployed and out of the work force for at least a while anyway i don't know wlorhether or not there's a catch up or anything like that, and then there's a really weird thing, i don't know if jason wants to talk about this, but at some point, layoffs are terrible for the economy and they cause growth to go down at another point, and kate was kind of alluding to this, laying off workers and right sizing companies for their businesses is part of the process of healing. i don't know when that moment or that inflection point happens.

i think right now these layoffs in december are probably part of a downturn because you have the renewed lock downs, the resurgence of the virus. at some point, you could have further deterioration in the labor market as businesses right size for the reality that will exist when we get back to a more normal economy >> he referenced you, jason. go ahead. >> i agree with you, steve, but when you're 11 million jobs short, and when you have the pattern, which is month after month, you have jobs gained, and now we have actual jobs lost, it's hard to look at this and think it's a productive reallocation of economic activity i do think that's one of the things that will come out of this, but it's such an incredibly thin silver lining. i think it's more important to focus on, you know, problems >> hey, jason, i want to just

real quick, joe, if you don't mind, i want to get to jason on this idea, we haven't had a lot of time to talk about this, but there's now going to be a democratic senate, are $2,000 checks coming, jason, do you believe, and what's the impact of that, joe, i don't know if we can get kate an answer on that, too, but that could be a pretty big deal. >> the big economic news this year was the democratic senate and in terms of the short run, it's very strong for economic growth i think we're going to get the remainder of the $2,000, we're going to get more money for states and localities, more money for vaccines, and extended unemployment insurance that's an extra, you know, 5% of gdp in fiscal stimulus >> wow >> on top of -- maybe a little bit less than 5% on top of the nearly 5% we already got, so we're going to have a lot of demand in this economy in the first half i think a lot of that will end

up in saving, and people will spend it out over a longer period of time but we're going to have an unprecedented amount of money in bank accounts as people hopefully go into a summer where they're able to spend that money. >> kate, you're nodding? >> yeah, and i would sort of add on to that, like we have a number of tail winds really supporting the equity market at this point you know, you have more fiscal stimulus to come you have easy monetary policy and a tremendous amount of liquidity. you've had the strong manufacturing activity, which i think was reinforced by the december, continued job gains in that sector. you have mostly a healthy consumer, although i do recognize that it's going to take time to completely absorb everyone who has been laid off during the pandemic. and i think going back to this point, you have companies that have demonstrated impressive and consistent discipline and resilience in a challenging economic environment you put this kind of perfect storm together, you've got policy, economic expansion that

will come once we get the virus under control and strong fundamentals, it's hard not to be bullish, and i recognize the challenge individuals are having as a result of the pandemic and the lock down. nela, you have the last word i'm going to give you the last word. >> i hate to be a little bit of a dark cloud on this really sunny long-term outlook which i fully support but in the meantime, we have some key issues here that could have permanent effects. we're not seeing in this month, the loss of workers in the labor market we're seeing now, joe, a loss of firms. we're seeing small firms actually exit because they are struggling to survive under these pandemic-like conditions, and this is where ppp is so vital. we have seen at adp that ppp eligible were able to add jobs 3% more than they otherwise would. it's critical going forward. we have to make sure that the firms survive because you need people to pay people and so all of these good things

that we're hearing in terms of the long-term of the economy still depend on getting through the next few months. >> nela, thank you thanks to our panel. >> hey, joe? >> what's up we're doing the -- we're flashing around on the zoom. quick, steve. >> real quick, i just want to make a very quick point. you know we have gone deep in the weeds on the high frequency data we tried to follow, and what got it right but the old adp. i wanted to make that point that they pretty much nailed it. >> and kate moss, jason fuhrman, steve, did you see jason's backdrop you worked in moscow, right, is he in some moscow office building, would you say? >> my wife keeps telling me to put the picture up maybe i'll do it today. >> can i send you a dark side of the moon poster, how about a vintage hope and change. >> that wall is too straight >> what, jason >> the wall looks too straight, joe. >> you've got a 12 gazillion

dollar endowment at harvard, and that is, what happened, the bell tightening >> i'll just put this one up. >> oh, that's better i don't know about that. anyway, thanks you took down the big maga poster and then you got that thank you. thank you one, thank you all jason's never smiled that much i've done it i've done it let's get to andrew, i'm going to toss it over to you thank you. >> thank you we will get to cnbc headquarters, let's go straight over to jim cramer, get his thoughts on the jobs report. i want to also get your sense of what's going on in the markets right now, jim. >> sure, andrew. well, look, i think that where the economy didn't grow or shrunk makes a lot of sense. it's funny, earlier this week i heard becky talk about how it had been a certain long period of time since she talked about covid on a given day obviously a day of horror for our country, and this is covid

you can't do anything with a lot of the businesses other than close them or pause them or have them go online, and off brick and mortar, as joe said, you just can't i mean, it's just too dangerous, so i think we're seeing a lot of that i actually don't see any sort of growth in the economy until we're vaccinated i am jealous of people who get to florida and get that vaccine: dick doing that was really kind of a revelatory situation. so look, i'd rather be with dr. goth ledr. dr. gottlieb about what's going on than the economists because gottlieb holds the key as far as the regular market, look, the market is about tesla and how tesla can keep going higher because it got included in the s&p and everyone has to chase it as long as tesla goes higher, there's a whole group of stocks that are not value stocks that are hyper growth or miracle

growth that keep getting buyers. as much as everybody wants to buy value, what do you want to do, continue to buy the bank stocks you have to face the fact that tesla is a revolutionary one of a kind thing that none of us has seen before and giving us an umbrella to buying a lot of other stocks. >> but jim, how much of this is just driven by fed policy, and how much do you think jay powell looks at tesla stock price, looks at bitcoin and says, okay, maybe we got to do something here with this punch bowl? >> i think that when we beat the covid, he certainly can take a look at it until then, i can see a situation where the country goes on national lock down just when -- and i think a lock down would be wrong, by the way, that kind of lock down. just if powell decides to tighten. that would be a disaster look, we have a president that's not really focused on covid. but i think that a lot of the country lives in fear. there are other people who don't

know that they should be living in fear. so i think that when it becomes so obvious as dr. gottlieb talked about, we get some sort of herd immunity, we have a country that's sec the country, the country >> jim, if these $2,000 checks go out, how much of that $2,000 do you think goes into bitcoin and tesla. >> a lot i think bitcoin is metaphoric, so is tesla. look, there was a company that did a blank check company the other day that did a deal, offered a lot of shares, should have gone down, we see a lot of demand for companies that we never thought could get any sort of a backing plug power, and one last night, look at that stock that stock was at 3 last year at this time. it does have a technology that is favored by president biden. i don't want to be all over the map, but let's just say there's a lot of money chasing too few

stocks was jay powell horrified, if president biden says we have to shut the economy down because we're going to have a huge number of people die, i don't know whether jay powell shouldn't stay on the sidelines and this is one of these things that's just casually what has to happen andrew, i mean, i live in fear of this thing every day. i think we're all kind of like the people who are sensible about it and listen to it, people who have family members who are not better, who are long haulers, i think they know, look, this is a life changing. i think if jay powell is going to say, you know what, we have to raise rates and president biden is to say we have to stop this with a national lock down, it's a poorly timed lock down because tesla went up a lot. >> you think a lock down is coming >> i fear a lock down. i fear a lock down until we get the vaccine because i think that there are people within the administration, listen, we're so close to the vaccine if j and j doesn't come up with a billion viles in the next three weeks, i just think that

we're what stuck with is a situation where you and i are going to get it. >> how comfort, though, are you that enough people are even going to take the vaccine or, and i'm not confident about this next part at all, that there's going to be enough testing because there's going to be two levels to this one is a lot of people hopefully will take the vaccine and we'll see whether enough of them do, and then there's going to be a lot of people who don't, which means you're going to have a massive testing program different from the testing program today, and there's very little investment in that. >> yeah, because we're stupid at i'll get out we have an administration that don't care okay i don't know what to say what, that the operation warp speed was good but everything else has been pretty stupid. look, we had an outbreak of smallpox in this city, in new york city, in 1947 we vaccinated 6 million people in three weeks 6 million people in three weeks in this city so you tell me that we have some

sort of policy this is not revelatory i'm not saying anything other than the fact of what people talk about i'm going to florida to get the darn thing next month. i am i've had it. >> but then you're also not saying to sell stocks. that's the thing i'm trying to understand here. >> there's not enough stocks to go around. the stock market is not divorced the stock market is reflecting the strength of individual companies. there's 500 companies in the s&p, probably 400 of them are doing better than we thought i am not doing -- i think it's really important to say there's nothing that i am talking about that is revelatory if you're -- i have family members who are long haulers it's changing their lives. i think there's a lot of people in this country who don't wear masks, who don't believe that this matters and maybe they're going to be very lucky, and at one point we're going to have more people die from this thing than the civil war i saw vice president pence saying there were five people who had it in a movie, that was

hardly a documentary, that was done by barren sasha cohen i don't know, i find we all got to be realistic about the farce that's going on, not just on the tragedy of the capitol steps but the idea that you and i going t. we're all going to get it. we're going to get the vaccine this is like the stand, my friend it is like the lincoln tunnel scene in the stand we got to stop kidding ourselves. did you hear what gottlieb said? he said everybody's going to -- he just talked about a third of the country -- >> unless we get the vaccine >> unless we get the vaccine we can be very good, but someone is going to give it to us if we're not careful. you're younger than i am i bet you got a good shot. you'll do better >> we're all hoping. we're all hoping jim, we'll see you in a couple of minutes with the gang on "squawk on the street" in a minute and much more on the markets following the labor department's

jobs report. dow futures, they're up. and the index is on pace for the best week in six and monday, don't miss an exclusive lineup of guests from the jpmorgan healthcare conference, the ceos of biontech, gilead will join us on "squawk box. catch bristol-myers squibb ceo on "mad money. stay tuned we're right back after this.

coming up citigroup will la out with us, three trends to watch in 2021. stay tedun you're watching "squawk box" on cnbc cyber attacks are relentlessly advancing.

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all the major averages are looking at nice gains for the week and that say bit of an understatement that keeps setting new highs. joining us right now is david bailen, chief investment officer at citi private bank you're long in a lot of different areas. everything from the emerging markets to what you've been looking at with the cyclicals globally you like dividend paying stocks and this is the one that really caught my attention. you like reits, the real estate investment trusts. why? >> i'm actually having trouble hearing you. sorry. >> i don't know if you can hear us yeah i'll keep talking. we'll see if we can get that connected or fixed if you can hear me cheerilcleart me know. >> i can hear you now. >> i can hear you. let's start with reits, why do you like real estate investment trusts >> right now you're going to be dealing with a very low interest rate for a very long period of

time and it is very hard to get high levels of income so if you think about what's going to happen in a variety of structures, dividend infrastructure or warehousing, you can get growth of income and income there are certain areas in the residential area and residential mortgages which are still beaten down and they'll provide income and high level of appreciation and i think that clients probably underestimate the value of income in their portfolios right now and i think we want them to have some exposure there in lieu of bonds >> will you have three trends for 2021 we only have a couple of minutes. let's try to run through this quickly. you think esg investing is going to be a big deal this year. >> it is because we have seen four times the amount of investing in -- investments go into esg and so companies that are going to benefit from climate change, benefit from carbonneau tra neu and electrification of cars and the heating and air conditioning of homes, all of those things i think will be big trends in 2021 and 2022

>> you also like the companies that you call hyperconnectivity enablers i guess those are the companies for cloud computing and beyond >> right and also remember the ability to make robotics go -- the ability to take and automate everything taking place, the internet of things in our individual homes as well as in industrial situations there are lots of people who benefit along the supply chain we think that will be a re exponential growth area, four times the amount of spending in that area over just four years. >> what about the dividend paying companys? why do you think this is going to be a trend this year? >> right so this has been i think the biggest surprise technology is great. you look back over the last 20 years, half of all of the gains in the market have been reinvestment of dividends and dividend stocks for the last 18 months have done terribly. you have to identify the dividend pay where earnings will agree and where div den idends grow and banks and insurance

companies and healthcare companies prevent those opportunities. so what you've touched upon is there are all of these different areas where the market is not expensive. and where clients should be putting money now and that's really why we're excited about the market, for the next year. >> david, thank you so much for your time. it is great to see you today >> good to see you. >> it is friday. finally, this weekend, finally made it. we'll see you back here on monday morning right now time for "squawk on the street." good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber stocks not far from new highs as the president acknowledges that biden's term will begin a week from wednesday some democrats call for impeachment, december jobs down 140k, the first negative print since april. road map begins with the day of records. new highs for covid cases and deaths stocks rally to all time h