further and the environment will stay positive. >> all right, keith, those are soolgting words, as we now are down 300 though. hopefully, thanks, we appreciate you coming on today. and we have moved noun, down 300 points, negative on the dow. >> from all-time highs though. as we have pointed out we're going to do it all again tomorrow hopefully, hopefully we'll still be around. make sure you join us tomorrow the "squawk on the street" is next good monday morning. welcome to "squawk on the street". futures are weak amid the tension in washington. democrats preparing impeachment proceedings. corporate america responds further to the capitol attack. our road map begins with possible impeachment, as the house readies a vote potentially this week. what big tech silencing of the president says about its influence and an exclusive with the chairman of the new york stock exchange, in just a few moments.

all right, jim, just you and me today. let's hit the table. is the weakness this morning about dc or is this about citi and jeffries talking about 2% tenure at year ends >> i think that there's overseas, the market turned down pretty violently and in the really a reflection of us. i think the markets have been keying on a couple of things, tesla, keying on oil, keying on the bound market, obviously, and if i see these things turn around, i would be more bullish, but i think it's a consolidation, and when you listen to the speak of the house on "60 minutes" last night, basically just saying the president is the most dangerous man, you've got a weak of danger, and the markets don't like that. >> we talked about election risk, going into the vote, in november and actually in october, right we were reading the notes from jpmorgan and the argument at the time, or the worry at the time was that a. g. barr would

impound election results and an olderly transition, how do we describe election risk or inauguration risk at this point? >> i think there are a number of people with an undercurrent that we think is legitimate and finding out on facebook, it was an inside job and i think there are a lot of people in america who believe that something happened and we need to know what really happened in the capitol before we can make a judgment on what's going to happen on inauguration the stories do seem to indicate that there was some critical gaps this week, on wednesday, the stories this weekend, make you feel like, okay, we really don't know what happened, and i think that level of uncertainty makes it so that we don't know what's going to happen on the inauguration and obviously they will be better prepared and it would be terrible if they weren't but i'm waiting for mer iic garland to come out and say listen, we need to have a commission to figure out what

happened and biden needs to come out and say listen, we need to what is going on with the vaccine. these are things that are worrisome, carl, the number of case loads is just incredible, what really happened on wednesday, very uncertain. impeachment, or is that crazy? we don't know. and then on top of that we have the tenure but i think it's washington that is in control. and it won't be in control ten days from now. but we got to get there. >> you mentioned some of the health care stuff. we just heard from the doctor on "squawk" over the weekend saying the strategy needs a reset at the same time, though, jim, on a positive note, analysts are hopeful on j & j, as we await p-3 data, and remdesivir seems to work on the new stream, and how much imbedded news could there positively be? >> the principle who runs the conversation, and i talked about it friday night, and i talked about j & j, with one shot, and

obviously a company that could produce far more than anybody are suspects and she said listen, it's mid february, so obviously, it would be a huge surprise if we got something before that, but she certainly is not expecting it. but i never heard her say anything about eli lilly and eli lilly alzheimer's, the news is pretty stunning on a normal day where we didn't have washington, i think we would be talking about the idea that there is a 32% slowing of this loss of cognition in alzheimer's, and that's extraordinary, and we have never seen anything work for alzheimer's and that would have been the focus if it weren't for the fact there were so many things that happened on wednesday and what happened with social media but normally, the story would be eli lilly. >> yes, we'll get to social media and the tech ban, a little bit later. to your larger point though, jim, on a normal day, we might also be talking about the two dozen companies who are raising guidance this morning, i mean

lululemon and dave and busters two of them. >> it's all over the place and i think the notion is the consumer is strong, it's coming out. and they're obviously, there are so many winners right now, that it is hard to believe, other than the fact that there's an exhaustion of winners though, lululemon, that was truly great, i guess there was someone who said no, that's not enough i see a lot of companies, basically saying, look, things are good and they need to say that things are incredibly good in order to be able to raise the needle, but i feel very strongly that you can buy the weakness, i just don't know if you want to buy the weakness the first day of the weakness >> right, right. speaking of the weak, it's going to be a big one. we're going to be getting biden stimulus plan on thursday, which he said would be in the trillions. and ces will be on the back burner but we'll monitor that. and it will all lead up to bank earnings on friday we did hear from citi and jpmorgan over the weekend through a political lens, as they sort of revisit their

policies on their political action commits but what do you think the story will be when the banks finally print? >> some good notes this morning. bank of america upgrading from buy to neutral at citi and the theme is there is more leverage, the steeper yield curve, you mentioned that at the top of the show, higher quality in terms of credit risk, levers, expense capital, these are things that want you to buy the group, even after the move of the last few weeks, well behind the rest of the market, i think a lot of people feel this is not a dangerous group because unlike so many stocks, they are nowhere near their highs so many people are adverse i think to buying stocks at their highest after this remarkable run so the bank's still depiction of companies that are well off their highs >> yes, and that's not stopping names like tesla from getting more attention today, it's b of a, they go to 900. new street high.

and jim, the line in the note basically argues highest stock price in a capital intensive business leads to cheaper capital costs and higher stock price. >> i thought this was the true virtual circle that you're always talking about with the stock which is the higher it goes, the more money it can make because it's offering stock. this is so funny because there's a note, a downgrade of salesforce today, and the salesforce downgrade is they keep issuing a lot of, it's called hungry hippo is what they regard salesforce as, they keep positioning stock as able to buy, and that's not light, versus the idea of issuing stock in order to be able to build and i think that people feel that as long as tesla, a lot of the analysts feel that as long as tesla is raising money, they can continue to build more cars than we thought, as long as they can build more cars than we thought then the estimates have to go higher, and this is just credit suisse saying the same thing, and this is one of those things, that carl, this can't go on every day there is a moment where someone says, didn't i hear that

already? and i think we're at the "didn't i hear that already" moment. >> that's a great point. as you sait said,, as you said, cs goes to 800 and the wave of target, it got kicked off by jonas, at morgan stanley when he went to 810. >> look, i think you get a siege where it's like okay, is this thing going to be able to go to 1,000? is there too much stock? is that the wall i do feel that at this point, if tesla comes down a little bit, carl, that would be good, because i think it's losing, i know that the analysts are saying it's a virtual circle but at a certain point, you need real buyers to come in, and they can overwhelm their own stock if they keep issuing stock. >> jim, let's squeeze in big tech over the weekend, of course, twitter bans the president, google suspends parler, apple, takes them off the app store, aws stopped serving them the site has gone dark i think

as of this morning twitterer is the only big name that is down meaningfully premarket, down seven. >> and some analysts are saying looks this is going to slow growth i don't see how it can i think there are a lot of people who literally knew that the president was, the most important person, and you had to keep checking him, and then you had to check people who talked about him, and you just had this endless wave, this web that the president created, and then it was like action and reaction, so i think that the surprise factor of going to twitter, which was of course the president, is gone i haven't checked it look, it's suspended i've been looking at sports, carl i always think the president first. now i'm looking at what is going to happen with eagles and their team, man. i do believe that, carl, twitter's got to come up with a new thesis very, very quickly because i think they always, they never talked about the power of trump in bringing in

people, i am telling you the real donald trump was a great sales person for twitter >> all right it takes us back to last week, no doubt, that there could be a risk, and we see the president's ban leads to that. when we come back, the chairman of the intercontinenta ange, jeffrey sprecher will join us on the other side of the break. wrap wra

exciting news.

bakkk. a digital marketplace owned by theinternational exchange, a publicly traded company, the merger withes vpc impact acquisition holdings joining us now, in a cnbc exclusive, jeffrey sprecher, intercontinental exchange chairman and ceo as well as gavin michael, the ceo of the company itself welcome, gentlemen good to see you. >> thank you, jim. >> thank you. >> this is the most exciting area of the market right now and we know that because cryptocurrencies, we're all looking for any way to so-called play it, or be the actual crypto itself or whether, square, pay pal, is this a direct way, if you want to invest in the concept of cryptocurrency >> i think it's even bigger than that, jim. we got into this busines because we were interested in the block chain. we were interested in what was going on in the crypto space so years ago, we started back as

a real venture-backed company within our firm, but as we got into it, we started to see there are all kinds of digital assets beyond cryptocurrencies that you and i deal with. we have airline miles. and rental car miles reward points. we have restaurant points. and points from coffee companies. and all kinds of merchants that are rewarding us in different ways and we started to think, what if we could create essentially a wallet, a depository institution, where you could put all of those assets in one place, and then because we're an exchange, underneath it, we could trade back and forth so that you could convert one set of rewards to another set of rewards, and use them fungbly for spending >> i didn't know how big this division was i didn't know all of the affinity programs. but if i want to own intercontinental exchange, don't i want all of this

to me, this is very, very exciting >> thank you i hope you do own intercontinental exchange, by the way. and you and i can talk offline about that but no, you know, one of the things that, my job, and the job of the management team here is to create value for shareholders and we have this great little company inside of us, and i don't think it was being recognized or rewarded by our own investors. and so we said to ourselves, this great vehicle now, that the markets have created, that we have helped contribute to, called the smack, might be the perfect vehicle to give more exposure to bakkt so people can make a direct investment, but we will still be the majority partner. intercontinental exchange will still have a value inside of bakkt. >> that might be an alternative way for people who are a little more conservative. gav gavin michael, let me bring you in, bakkt ceo and your

background at citi bank but you were the former head of technology, so what do you bring to the equation if you have that kind of experience at citi >> good morning. thanks, jim. look, a real understanding, not just how technology operates and how we scale a venture like bakkt to meet the demand that we expect, but also a regal understanding of what, a real understanding of what the changing consumer landscape looks like, how customers expectations are rising and how we use digital means to meet and exceed those expectations. >> the market for bitcoin, as we saw this weekend, isn't at all orderly, you can bring some order to the market, my experience that the bitcoin, that the weekend is the wild west and you shouldn't think of doing it are you going to be 24 stl/7. >> absolutely. it has to be 24/7. and when you bring together customer loyalty, loyalty today looks like a set of cards. we're putting it on the phone,

where we're allowing you to accelerate the shift to digital assets and payments. we're enpowering you to use your digital assets for every day spending think about buying your morning cup of coffee at starbucks using unused airline points orbit coin and that's what our app enables. our app enables customers to convert the digital assets in entirely new ways. >> when nfl players ask to be paid in bitcoin, i wonder why we're not all paid in bitcoin. >> steven mnuchin, talked about the new york stock exchange and objecting what to do with the china securities and is it the role of the government to tell you what to do >> well, the new york stock exchange is a very highly regulated company. and we're navigating, like many companies, how we deal abroad, and we've got the president's

actions going on, we have congress passed some legislation, we have the accounting standards boards, looking at china, we have the s.e.c. that directly oversees us, it's looking at the security, and in that amalgamation, we are trying to navigate and do the right thing for this country, and for the markets, and it has definitely been complicated much like they're trying the strategy of the country. but i would think that this, i will say this to you, jim, and you know this because you go into that building, we wrap an american flag around that building and we do that purposefully and we are uniquely american and we want to export the best things about this country abroad, but we want to do it in a way that's best for our country. and that's what you're seeing us trying to navigate right now. >> i believe in that and i have for 35 years. but i am confused. i don't really know what's best for the country. do we want those chinese companies raising capital in our country? or do we want to shut them down?

what is the right way to deal with this situation? >> it's interesting, and i thought a lot about it, i'm sure you have, too, which is as our society, the united states, has always wanted to help the downtrodden, no matter what country they're in, we want to help people get ahead, it's one of the things that we uniquely export is our giving and our big hearts on the other hand, as people rise up, we don't want them to turn against us. and so there has to be some balance in there and that's what i think we're looking for, is how do we help the rest of the world for the benefit of our own people, and how do we make sure that the rest of the world respects what we've just done? and that is not a seamless process. but i will tell you that the new york stock exchange, was there during the civil war, during world war one, world war ii, korean war, vietnam war and continues to put that flag in front of the building, so i'm confident that we'll figure out

how to muddle through this >> jeffrey, you're pointing to the exact right issue, and you're a bit about being uniquely american is so well taken, goy into the building, too, let's be more direct. what needs to be the response to the president and his speech prior to the attack on the capitol? the legislators who tried to challenge the count? the protesters, the rioters themselves how firm of a stance will you take >> i'm confident that we're going to wrap that building in the american flag. that, i can tell you i know we will survive this. this company was formed when the united states was formed the very first listing we had was the bank of new york which was alexander hamilton's bank and the very first loan that they made was to pay the salaries of congress so this institution is the united states. it represents everything that's good about the united states and notwithstanding the fact that we're going through an internal debate, i'm confident

to the outside world that we'll represent everything that's good about our country. >> will you comment at all on the president's actions? >> no, you know, i think, as you started at the top of the show, the capital markets are doing phenomenally well. the capital markets forward looking are saying this is all going to work out. there are better times ahead and you can see it in the collective stock prices of our market, so i have confidence in those markets that we run, and i'm, you know, very positive about what's going on in the future >> okay. so jeffrey, obviously, so much going on in georgia itself i thought it was really interesting that your wife, senator kelly loeffler, was the first ceo of bakkt and she was kind of caught up in this troerks and maybe it's not a kroeshs, some people think it

is, about trading stocks as a center, and i struggle, i don't know what the right thing to do is, do we just say from now on senators can't do anything with stocks like i'm allowed, i'm not allowed to or is it just like look, as long as there's sunlight, and there's disinfectant, you can make your own judgment i'm not sure what the right thing to do, jeffrey. >> thanks for asking me. you know what's been crazy about that narrative is that because i'm eight chairman of the new york stock exchange, and because kelly was the head of marketing for the new york stock exchange, we're actually prohibited from trading stocks, and we don't even have a brokerage account that allows us to direct stock trading activity so when we made a disclosure of all of the mutual founds and managed accounts that others are running for us, somehow the narrative in the politics was that we were insider trading which the reality is, she is the one senator that has actually, that is actually prohibited from

trading any stock. >> boy i'm glad i asked you that, because i think that has not been the narrative one narrative that i want to go over which i think is incredibly positive, i think younger investors getting in, and here we can use the moniker robin hood, but aren't you just astonished that so many people want in after a long period where young people almost seemed to object to capitalism and stocks >> it's one of the most amazing trends of 2020 and you know, a combination of digital literacy, by young people, coupled with the pandemic that kept people at home, caused people to think about, you know, the investment market as a vehicle for entertainment, and for wealth creation, when people aren't working, and that combination has just taken our market to new heights. i've talked to a lot of very senior people on wall street, and i believe it's a trend that is not going to go away. in other words, we have created

a generation of young people that are in the market, that we think over their lifetime will stay invested in the market. >> gavin, thoughts >> i think we, as you take that realization of the market into account, we're helping consumers realize value that they have in assets that perhaps they didn't know that they held. you know, digital assets like loyalty points have no real value to a customer if they can't expend them in a variety of ways. and that's what bakkt is bringing to this new generation, to these emerging customer segments and that's what's so exciting about the proposition that we're talking about this morning. >> boy, i've got to tell you, for those who want to find a way to be able to invest in crypto, and invest in points, and invest in everything digital, we may have found it. i want to thank so much, gavin michael, who is bakkt's ceo, and

i also of course want to thank old friend jeffrey sprecher, intercontinental exchange chairman and ceo gentlemen, thank you so much for coming on "squawk on the street". >> thanks. we havea lot of research t get through this morning a big call on united airlines, jetblue, delta, american, along with other calls on exxon, crm, kohl's, ralph lauren, and of 'r binoeg. wee back in a minute

. let's get a mad dash with jim on this monday >> we're talking to jeffrey sprecher, gavin michael, with this new bakkt and we mentioned china security you want to know what china security is high, it's not alibaba, anymore, after what happened publicly. and neo, we had neo day and weekend, and the electric car battery that people like and we saw the idea that what is going to happen is, a real challenge

to tennis. now, if the market grows from 2 to 3% ev to 10% ev as a lot of people think, there is plenty of room for both, but this has really captured the younger person they trade this thing like a banshee. people think nio, when you look at where it's come from, it is the next tesla and the next tesla has been probably something that is the greatest search that the younger people have embarked on, and they think they found it in nio. >> i had a discussion with my kids over the weekend, who informed me, jim, they don't ever expect to own a combustion engine vehicle and i guess we shouldn't be surprised >> the first thing i thought is how could these analysts be so out of singh, and this of course morgan stanley, how could they be out of singh and if we're not going to drive cars that are on gasoline, then we're not going

to want to own an oil stock and i think that's what is going to happen in the next two or three years. so go ahead, buy exxon, knock yourself out, i'm with your kids >> there's the opening bell, jim. and the s&p 500, at the bottom of the screen. we'll see what leads at the open but just to follow-up on your note on exxon as they go to whoe overweight at morgan stanley, largely about underperforming chevron and they think the dividends get covered and 8% they think probably compress, as concerns about the dividend itself abate in their view. >> right i think it's really rather incredible that we could four weeks ago be worried about the fact that, we pretty much assume that the dividend could be cut of one of the greatest companies in america, but you know what, when i look at it, there is $230 billion in market cap that's been lost here so it's entirely possible that this one short term could continue to rally. longer term, i come back to the

idea that the oil stocks are just a trade, not investable, typically under an administration that does not favor drilling everywhere, shorter term with less drilling, with president biden discouraging drilling and longer term, i think it is the funds themselves, that are driven by esg that might not want to show that they own exxonmobil >> right jim, a lot to unpack on boeing this morning bear does make it a top pick as they're bullish on the return of air travel and the call, with the return of air travel, it is probably a second half story, given some of the hiccups that we're seeing now with vaccine distribution. and then of course, the crash out of jakartawhich i'm sure w will check in on later this morning. >> let's find the black boxes and see what was said. but i think the notes that are positive are why the stock ran from 160 to 200, and saying look, if anyone gets vaccinated, people can go places and there is obviously a plane shortage of

everybody going places because we're so pent up, the pent-up demand could be extraordinary. and we have to look the at second half notion, the black box of the crash, a terrible thing and more important, the point of view of the stock, not of the people, because money can't be conflated with the loss but with the stock, carl, the vaccine itself and when i listen to dr. gottlieb this morning, and he's so good, i said to myself, wow, if they could figure this thing out, it would be a first hal story. but it doesn't sound like they are. and the thing obviously is the distribution of the vaccine, which is pretty shameful, i think. >> yes, although biontech did raise their 2021 capacity to 2 billion doses which is a lot, and we mentioned gilead and the hopes for j & j, although it sounds like that won't be a january story which we have been hoping for. >> i was hoping it would be when they announced their quarter i do think, carl, that making the vaccine is not the issue and as dr. gottlieb said, one

day there will be a vaccine glut it is this uneven distribution system and that's a polite word. and they have a vaccine in a lot of places throwing the vials out because the stuff is already bad. and a lot of people are saying this is not the way to do it, and it may be president-elect biden who will have a better way, but right now, there's far more vaccine than there is, at this very moment, people who are lining up to get it because we're all pretty much discouraged. i live in new jersey, i don't know anyone who has registered and i don't know anyone who has gotten it. so it does seem to be a real free for all with florida being the greatest. east coast, you get it west coast, it's chaos tallahassee, no one seems to be getting it it is kind of a microcosm of what's going on in this country, right now, carl. >> yes, we're going to talk to the governor of west virginia later on this morning which has done on a relative basis a good job of getting jabs into arms by targeting local pharmacies and not necessarily the chains but more on that in the days and weeks to come, jim

tenure, almost 113 today, it's mike wilson at morgan stanley saying rates are the wild card. and the s&p earnings, for the year, warning about higher corporate tax, and trimming the numbers for the following year, and year-end remains 4300 but again, the focus on rates is not ending. >> and i think that's why the bank stocks are a buy, every time they get, i think the one thing that is certain, carl, there's not a lost money come out of the market, a lot of money coming in, it is shifted around different places and obviously the young person's money is going to what is considered to be the most cutting edge, i think that's a fair way to put it, but i'm not as concerned as either gentlemen, because i think that the stability in washington that might happen, could actually be a great positive i think that the rancor got to people in the end. i think that wednesday may have been the pinnacle of the rancor and if there is a little bit of calm, i can take higher taxes. i think that the notion of a

kind of a police force within a police force is going to be the new theme, in terms of investigating what happened wednesday. we've got to see what the new attorney general merrick garland, appointed by biden, does, i think both sides of whatever happened in washington, we want to be able to express what did occur, but mostly, i think that if we get just the end of the endless challenges, whether you like president trump or hate president trump, how about a focus on how great companies are doing, despite the pa pandemic i think that would be positive i really do. >> i love that, jim. you remind me of what nile ferguson said yesterday over the weekend out of bloomberg and rather than worsening the country's polarization, the events of the past few month, not days only, but months, have in fact restored the center ground and that's what you think the markets are countsing on. >> yes, i really do. there were so many house republicans who obviously are not part of the situation, but that was even after the trashing

of the capitol, but i think the trashing of the capitol really hit home, and the narrative is going to be, carl, if you're in favor of the election results being overflown, where,over thrown, where are you in terms of trying to break the government, not cause violence, but to break the government? and i think that yes, that is one of the events that i think crystallized things. and to be candid, not having the president on twitter is welcome when it comes to the stock market hate him or like him, you had to constantly check your twitter account to see whether the president, who i think was arbitrarily capricious in the end, although some people have always been his style, what is he saying about china? pompeo is really making, saying taiwan is the issue, people have to recognize that taiwan semiconductor, the most important semiconductor company in the world and you don't want china to capture, that i think the president's hard line on

china continues and we talked with jeffrey sprecher and saying what is right to do for the country and what do we do what is right for the country, and do we shut down china, and there is so much confusion and focus on the bank stock, focus on eli lilly, and focus on the idea that maybe boeing will come back, and that will happen if there is center ground obviously center ground is what you might want first unless there are people who really do favor the idea that this should never be a coming together there should never be unity. there should never be a view that lincoln espoused even at the height of the civil war. >> well said, jim. peeking of all of that, speaking of the names, there are a lot of firms out this week with top picks for the year, and jpm, disney, verizon, our parent, comcast, timo, and american tower. favorites for reasons within their specific silo. but this is a nice sturdy list of favorites for the list jpm

says. >> and that's what you go to tomorrow, and late in the afternoon. i thought the disney call was really terrific because that's the coiled spring in the group and they're talking about even more people signing up, disney plus was obviously a great success. and it is incredible for those who watch football there are advertisements for cars there are advertisements for insurance. and there's advertisements for telephone companies. and they're relentless it is, i mean, a week, six games and they were remarkable because that's what you kept seeing over and over again and a reminder that those industries are really competitive. but the timo has pulled ahead and verizon is good if you want dividend it is kind of an exercise in stock, right wait a second, things are dicey with that dividend, but they think they'll be able to do well with hbo and verizon, you don't have to think about and the growth of t-mobile is extraordinary and people didn't count on it and continually underestimated by wall street, in part because t-mobile

management is no longer as promotional as it used to be and also as fun as it used to be >> right not as colorful as it once was with john no longer there. the other one that struck me, jim, sort of talking about the street, counting on a recovery, throughout the year, the upgrade of unp and canadian national over at bernstein, they go to outperform rail volume they see overdelivering for the next two or three years >> this is a stock, and our friend stephane talked about this endlessly, correctly, yoon pacific has done a remarkable job of cutting expense, and they do this precision railroad, and now we see resumption of trade with china, and more aggressive way. it is really yoon pacif yoon pat carl, it is hard to imagine a recession developing, some people talk about double dip and it's hard when you think of that chart and you think wait a

second, how can this trouble be really in trouble if the rails are doing well and they're all doing well, and some of it is cost, and some is relilkts there is a sense that the rails were not a great way to ship things, and they really have gotten their act together. yoon pacific has been able to take out a lot of costs. they also, i think the note was great, that we saw, they preannounced on friday, talking about the idea that there could be additional capacity, without spending more, and a lot of people thought, carl, that union pacific was going to be in a spend cycle. the spend cycle is over. they're going to be back just into a heavy buyback, they have one going on, this is a winner stock, a lot of people feel they missed it. they haven't union pacific goes higher. >> interesting the other buyback, that i saw this morning, jim, was out of bny. another $2 billion we'll keep our eye on that as well >> yes >> increasingly a story. >> i have giovanni >> yes. >> there are a lot of people who thought after the myocardial buy, celgene, bristol myers was

going to go on a spree, the negative rap, like the negative rap by salesforce this morning, i think that gee vanny, it show with the buyback, they're generating a lot of cash with the anti-cancer franchise and eloquist and i watch football, and i say, that's bristol myers, and she says so what, and i say no, no, this is important. and i think she's right, the became is worth focusing on more than the ads back to you, carl. >> oh, my gosh, the browns first post season win on the road since '69 is that amazing? >> oh, my. and only up by 12. and i think the whole country was right at that moment saying it's going to happen again, el-foldo, and it didn't. carl, i thought that was one of the most exciting games i've seen >> unbelievable. congratulations to the folks in

cleveland. so we're obviously off of what the pre-markets suggested, dow down 163 let's get to bob pisani. >> 4-1 declining to advancing stocks. take a look at the sector. it's the cyclical groups that have been doing so well that are weak today energy finally cracking a little bit. great week last week materials, consumer discretionary. cyclical group, tech and the banks week after an excellent start. and defensive groups like health care for example and consumer staples, they're essentially flattish just to show you the energy stocks here, what an amazing tear we had in energy. most of these big energy names, the high beta energy names like occidental marathon, apache, they're still up almost double digits, even with the declines today. exxon is down a little bit because of the morgan stanley upgrade. and remember something, oil was on an absolute tear last week, 47 a week ago, closed around 52, and back down to 51 today. but it's really been a drtremens

move up for emergency and the defensive groups as well and the market group, we discussed them throughout the morning on cnbc. higher rates, tensions in washington and overvaluation. i think it is a technical indicator but it is amazing. big momentum over all. and of course the reality is the covid winter is here we saw that in the friday jobs report the u.s. labor market essentially stuck. we need to get the vaccine rolling out a little bit quicker to get us through this covid winter so the question is, how much more momentum does all of this cyclical play, the value, the small caps have, and look what is going on, as we go on, just one week into 2021 here overall here, the sector leadership, it has really been strong and put up the sector leadership for 2021, and energy stocks, bank stocks, the russell 2000, all tremendously moving on the upside here, and emerging markets have done well, as the dollar has been weak and

semiconductors has been present for a long time, so these are the cyclical groups and the small caps that are leading us forward, and the issue is, how much more do we have, given what's going on. the big story is friday, on the earnings report, we put that full screen on earnings back up and i think the key story is while we're expected to be down 9% more sober commentary than you had at the end of the third quarter, when there was much more optimism, and a little more guidance that was more positive, i think it will be a little more sober. we saw this with bed, bath and beyond last week december sales on the flat side. and given what's been going on with the lack of stimulus, in december so it's first quarter, second quarter, guidance is going to be, a whole debate here about what goes on, with the covid winter, versus hope for the reopening and the question is how much more guidance are we really going to get? we've been complaining about the dearth of guidance in the third quarter, and in the, potentially in the fourth quarter now, but the question is what happens in the first and second quarter, i

think you're going to find companies being fairly cautious in the near term we'll get a much better sense on that, begin on friday. carl, back to you. >> we're looking forward to all of that commentary, such a great source of information, bob, thank you. let's get to rick santelli as we focus on rates welcome back, rick >> thank you good morning happy new year if we look at a ten-year, going back a week, pretty much everything we need to know on interest rates is right there in front of us, of course, the big notion is why? and there's a raevariety of reas that rates could have popped and lots of supply, because we're doing lots of spending, and the real issue here, is of course, the numbers, and the politics of the senate, and that opened up on wednesday, the 6th last week, and we can see clearly a change in the trajectory of interest rates, and if we look at a one-month chart, excuse me, a chart going back to mid march, you can see where we're aiming

most likely, everybody is thinking we're going to the 119, 120 level, but don't be so sure. we really have some good momentum here. rates have turned up outside of the two-year today, already to either unchanged or long maturities, which have been leading the way, are actually higher on the session at this point. now, many are scratching their head, what's going on with the dollar and i've heard so many stories everybody's short. and all of that may indeed be true but come on, folks, interest rates are going up if you look at of the dollar on top of ten's and you can see what happened on wednesday, when rates started to go up, they pulled that dollar when it makes total sense and you open up the chart at one month, it jumps out at you in terms of what interest rates have done to the dollar. and certainly the fact that the most enthusiastic trading position of late has been on the short side of the dollar, that just gives it a little bit of an added thrust now how far can it go? well if you look at a four-month chart of the dollar index, listen, i don't think some of the bearish tend sisencies of t dollar has changed the modern monetary theory, we

have mostly all three branches of government in the democratic category will lead to a lot of spending, the markets are agnostics. they're not upset, they're looking at everything in a nonemotional way and what they see, spending, spending, spending, so if you think the interest rates are going to continue to go up, most likely the dollar will get a free ride for a while at least on some of the fundamentals that caused many investors globally to short of as of late. carl and jim, back to you. >> rick, we'll talk to you in a bit. as we go to break, watch lilly. leading the s&p this morning all-time high. the positive news on the experimental alzheimer's treatment in a mid stage trial stocks up better than 10%. we're back in a moment woo! you are busy...

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let's get to stop trading with jim right. we don't want to give short shrift to the conference we spent a lot of time talk about we are waiting, amd. amd is, i'd say, the paradigm company right now of what hasn't moved during this incredible chip rally that's because it's gieg zi links and it stalled the stock the other stocks in terms of just chips is in nvidia, that's part of the nio platform and that matters, too. those are both stocks that have failed to participate in the rally, carl. who knows? maybe they are value placed, so to speak, versus the rest of the group. the ces is very interesting. >> looking forward to the day we can all go back and have it in person that's for sure. jim, as for the markets at

large, early session low down 266. o art thought that there was some mild disappointment in the color of confrontation as we do expect the house to rule ooll out the impeachment proceedings later this morning. >> there are people reluctant to jump in on the decline because they are looking at washington if it weren't washington, obviously it would be very different. but washington is, i would say, prevalent in people's minds. people say why don't we wait and this could be a difficult week until we get to earnings on friday i know if you are a bank stockholder, you want to have those stocks cool off. >> all right so tonight bmy >> yes, bristol-myers has done so much in the last few months to reinvent the company, yet it doesn't get the headlines. why? because it's not involved with the vaccine. it's got some ip that it offered. one of the most exciting companies, medtronic, they are doing incredible things.

not just pacemakers, for heaven's sakes they could solve so many things because they are willing to go in the brain i want to talk about the brain, which of course no one knows a thing about after all these years of doing medicine. the brain remembers. the brain remains the most opaque part of our body. >> finally, jim, we almost made it through the hour without mentioning the fed but liesman talked last week looks like they will maintain 120 billion a month through year end. we will get a lot of fed speak working through friday how much of that do you expect to color the conversation we're having about the turmoil in d.c. >> i think every time we get any sort of, any even an inch on the ten-year, that matters i don't know how focused they are in terms of what destabilization, what that means to the psyche of the country obviously, if you look at the big cap companies, they are doing quite well the unemployment rate is just unacceptable

>> yeah. and the number on friday, very difficult, even though it was largely due to hospitality and leisure, jim see you tonight. >> thank you. >> 6:00 p.m., of course, "mad money" with jim cramer another hour of "squawk on the street" less than three minutes away stay with us

♪ ♪ good monday morning. another hour of "squawk on the street." i'm carl quintanilla david faber has the morning off. a little selling to start the week we prep for bank earnings on friday the dow is down 133. also watching the house as they prep impeachment proceedings markets in the red despite record highs last week, investors continue to weigh ongoing political turmoil in washington. >> west virginia governor jim justice on stimulus, rising covid cases, d.c. unrest and how he sees working with the biden transition and bitcoin hitting the brakes plunging this morning alongside the cryptocurrency market in a movie racing more than 170 billion in value we are going to start the hour

in washington. no surprise as the city is still dealing with the fallout from the attack on the capitol on january 6th. eamon javers has more on that. good morning. >> good morning. i am told that the white house is discussing the idea of having the president come out before cameras today to talk about his complaints about big technology companies and their decision to remove him from many of their platforms. that discussion still ongoing. no decisions have been made to have the president come out and speak just yet but we are expecting in the next hour house democrats to move forward with their effort to pass a resolution calling for vice president mike pence to move on the 25th amendment and remove president trump from office today we expect just after 11:00 this morning steny hoyer to move forward with that resolution through unanimous consent. we expect that will be blocked in the house by the republican party. that resolution calls on the vice president to remove the president. they are asking vice president pence to respond within 24 hours

here if not, democrats say they will move forward with impeachment legislation and bring articles of impeachment to the floor later this week. that vote could happen as soon as wednesday then the question is, where does it go from there? in the senate, they have to have a trial, remember. the president has to have the opportunity to present his defense here not at all clear that could happen before january 20th when joe biden will be sworn in as the next president of the united states but this is a much different pee impeachment debate than a year ago because a lot of republicans are now calling for the president to resign or suggesting that they will vote for impeachment this time around some of those images of the horrific violence that we saw on wednesday, i think, are really shaping this debate, carl. as you saw, some of those police officers really fighting for their lives against this crowd of trump supporters on capitol hill remember, these republican lawmakers who will be voting on this fled, many of them, in fear for their lives on wednesday that's going to color this

debate and shape whether or not a lot of republicans will vote to impeach and remove the president of the united states still unlikely that could happen before the president leaves office and president-elect biden takes over, but we will watch this it all begins in just about an hour's time, carl. back to you. >> i am going to take -- thank you for bringing us the latest turning to the markets stocks lower this morning despite record highs last week as investors continue to watch that ongoing political turmoil in washington and hope for further stimulus senior portfolio manager now, valerie, good morning. let's start trite there. the drama that we are seeing in d.c. right now, any impact on the market, especially given the fact that we are seeing major averages take a breather to start the week >> i think that investors are certainly concerned about what's happening in washington. we are all concerned i think that in a very unprecedented situation with the level of violence that we saw at

the u.s. capitol and the reality is that, if these violent confrontations continue, which is a possibility, that could be significantly disruptive to the economy as well as to markets, not to mention the need to control the covid-19 pandemic. so, yes, it is absolutely troubling. >> yeah, of course, one of the other big stories that emerged over the weekend and into today and certainly some of the names under the greatest pressure are big tech names that i see are within your portfolio, whether it is apple or amazon or google or facebook. i guess how are you assessing those names, particularly from a business and potential earnings standpoint, as an investor, given everything that we are seeing play out and what that could mean in terms of add dollars and user metrics >> well, the reality is that for the advertising-driven technology companies, you know, google and facebook in

particular, i think that the underlying fundamentals of those businesses are actually quite strong because people have moved online in terms of their advertising and desire to connect with their audiences and, you know, i think most people don't understand that political advertising is actually a very, very small component of what drives their top line and they have been under pressure for quite a long time from investors as well as other stakeholders to do a better job at content monitoring, and i think that they were simply basically backed into a corner given recent events to take the steps that they did. >> valerie, on the jobs number friday, obviously somewhat discouraging it's been pointed out over the course of the weekend as people dug into the internals that it was kind of sector specific, net-net, and if the argument goes that you beat covid, you save the economy, that's leading to narratives that say you could

be looking at a boom in the second half. is that sort of your base case >> i think so. i looked at the numbers pretty closely, and there are significant variances by industry and sector. what you saw is significant weakness, as you would expect, in hospitality and restaurants and those types of services that have, quite frankly, been forced to close again because of the upsurge in the pandemic. but there is real strength in retail trade there is strength in warehousing and transportation there is strength in a number of areas that imply that the economy, the underlying economy is actually improving. so i think that once we get past the covid pandemic, that we could be looking at a brighter future ahead and i think that's really what the market is pricing at right now. >> yeah, i think along those lines in terms of that discussion for 2021 is the interest rate discussion and what we are seeing in the treasury market right now. what is your outlook for 2021 as we see an economic recovery, i guess, take root and potentially

move a lot stronger, a lot faster than had perhaps previously been expected >> well, i think that the fed has been pretty clear in terms of signaling we will probably have lower rates for longer. i don't anticipate that will change anytime soon. so i think that the market is pricing in, you know, a low interest rate environment for the foreseeable future and we have to see how long it takes for the fiscal stimulus to actually kick in, so to speak. so i think that interest rates will probably be low for the foreseeable future that's my outlook right now. >> speaking of stimulus, we are going to hopefully get more granularity on what the president-elect wants to have happen on thursday in your mind, is it a large delta, the difference between a $600 check, say, and a $2,000 check? >> yes, that's a big difference between $600 and $2,000, particularly for -- >> i don't mean the check

itself, by the way i mean the net effect on markets and the economy. >> well, i think the net effect on markets in the economy may not be as significant as the impact in terms of societal impact, so to speak, because the covid pandemic has affected lower income cohorts most severely and so that's the cohort that really needs the assistance. now, what we have seen is many companies that serve that market, they have actually performed quite well, but that's actually because we have had fiscal stimulus. so i think it's important that we get the stimulus in place so that we have a broad based recovery across all income groups. >> small caps or large caps right now? >> i think a balance of both is prudent. we have seen a real rl ally in small caps, which have competed in prior years and through 2020. but what we have seen in the market is that we have seen

value, momentum, and quality all perform quite well and so i think it's important to maintain a level of diversification because there are multiple levers in terms of the factors that are working right now. >> how about u.s. versus international? >> i increst primarily in u.s. equities obviously, i am focused on that area i think there is still room for growth in u.s. i have colleagues focused on the international equity markets more closely. >> valerie, thanks for joining us, and happy new year. >> thank you, happy new year to you. >> carl. >> when we come back, beginning today a wider range of essential workers, including teachers and those above the age of 75, are going to get their first covid-19 jabs in new york today. we will talk to the head of new york's largest health care provider and what's changed in a moment they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster?

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u.s. covid-19 hospitalizations numbering more than 100 k for the last 40 days as states try to ramp up the pace of vaccinations through vaccination sites and expanded eligibility groups let's bring in michael dowling who has helped us keep pace of the events changing ever since the pandemic began michael, welcome back. thanks for the time. >> thank you so much delighted to be here thank you. >> i wonder if you can walk us through new york city and new york state, these changing guidelines on 1b

first off, i guess what has been your reaction to the back and forth between the mayor and governor do you think it's straightened out now? >> remember, it's in all new programs like this, as large as this one, end up having a rocky start. at the beginning the first couple of weeks you are trying to figure out how to deploy staff, thousand deal with pfizer vaccine, which is very, very complicated to administer, more complicated obviously than the flu shot, which i don't think many people know you have to set up the distribution sites you have to get your process in place just to make sure you do it correctly so obviously the first couple of weeks you are going to have that now i believe it's getting straightened out i believe people are getting better at doing it it's not unusual at the beginning of big programs like this it's a little bit complex at the beginning right now we are a much better position, i believe. the next couple of weeks and months i think this will go much more smoothly than the first couple of weeks. no surprise here

it's what happens with all new programs >> all right so what i hear you saying is it's growing pains, obviously, on something logistically we have never faced as a country. i would imagine we could start doing 1 million a day with no problem? >> well, it all depends now on the supply of vaccines i mean, the fellow government gives the state x number of vaccines every week or so, and the state only has a couple of days of notice when they get that allocation. and then we, on the delivery side, only have a short period of time also before we have to start vaccinating with the new allocation this is part of a problem. so the issue will be supply. i don't think going forward the issue will be the distribution sites or the process by which we can to it and how many we can do it will be the supply. so, for example, i give you in north well, i have the destbution network in place so

i, in long island alone, can do up to 20,000 vaccinations a day if i had the supply. and so the issue will be the supply, as i have mentioned just a second ago and, remember, everybody that has already got the vaccine will have to get it again and this is something that's often lost in the discussion publicly everybody gets two doses i already, for example, have vaccinated 50,000 people, but that 50,000 have to get a second shot if there was a one-dose vaccine, then i would be adding new people all the time. so right now i am adding new people at a slower pace because i got to use the volume of the vaccine to revaccinate people that have already been done. and that has to be taken into consideration. i do believe, for example, in long island where there is about 2.5 million people that would be

eligible for the vaccines, we could definitely have all of this done by july. if we have enough vaccines because 2.5 million means giving 5 million doses of the vaccine we know how to do this, and so supply will be the issue and that is why president-elect biden has been talking about releasing large quantities of vaccines over the next couple of weeks. but what we have to be careful of is we reserve enough vaccines for the second dose. you don't want to, in my view, i don't believe you want to be just giving the one dose and forgetting about the second dose that's not a smart thing to do. >> yeah, certainly that has been a debate not just here in the u.s., but other countries as well i am curious, giving the conversation we are having and the fact that you say supply is the key to this, i wonder what you think of governor cuomo coming out and saying he is going to find hospitals that are

slow to vaccinate? >> well, yeah, i think he is putting the pressure on, which i don't disagree with him on he is saying we have to move quickly. it's important to do this. this is one of the best cures for covid. so he did put pressure on. everybody has actually increased their production and their vaccination rates since then it's also important though to remember one thing, that if i get a distribution and allocation of vaccines today and you look at my numbers today, i have a lot of vaccines that has not been used because they won't get used for the next week you have to be careful of the timing looking at the numbers because i would like to have a large reserve today of vaccines, which would make it look like for somebody who doesn't know how this works, that it would say, oh, you have a lot of vaccines, you haven't used them. but fi had a lot of vaccines, i could plan better for the next week or two so i could get the deployment of may staff properly

allocated, et cetera the governor i think was right in putting the pressure on everybody listened we pay attention to what the governor says because he has been the quarterback objen thes issues the last several months as a result, i think the processes are getting much, much better as you know, he has expanded a number of facilities that can do the distribution and the vaccination like pharmacy and others, which he will be talking about this week. but, again, it all comes down to me the biggest single problem going forward will be supply of vaccines. >> yeah, so i guess to put a fine point on that, we had dr. robert kay wilive on last week. he suggested that distribution and the trajectory of that distribution could look like a hockey stick do you see it the same way >> yes yes. i think, you know, as i have indicated to the governor's people, i actually was on the phone with them this morning, is

give me the large numbers of vaccines, give it to me in time. let me know well in advance. of course, the state is constrained because of the federal policy on this but tell me in advance and i can plan out very -- you know, constructively over the next couple of weeks so we can get this thing done as quickly as possible. >> meantime, we are seeing the covid case count increase here in the state of new york what are you seeing in your hospitals and in your medical facilities around the state? >> well, we look at the stats from every facility across the state on a daily basis, and right now we are in a pretty good place i mean, the numbers are pretty flat overall there are pockets up and down. but at northwell right now i have 1250 cases, covid cases that's pretty static now for about a week i do anticipate that within the next week we will see a bump up because we have two weeks getting into two weeks after new year's eve so i will be surprised if we

don't get a bump up in the next couple of days but if we do, we are ready to take care of it. we know how to take care of it there is no really dangerous hot spots at all with regard to covid. now, this is something else to keep in mind if you are running a large hospital system or even an individual hospital, you are handling normal business you are testing people for covid. you are dealing with covid cases and you are also vaccinating at the same time. this is a lot of work, and it's complicated. so people often think that all we do is just vaccinate these days, but we also have all of these other things to take care of at the same time. we will do it. we will take care of it. it will be done and it will be done successfully. >> finally, michael, are you along with a lot of other hospital systems wrestling with this question of how vigorously

to pursue legal -- sorry, medical payments from patients through legal remedies after having given a lot of patients time during the pandemic >> right yeah, probably you are referring to the story that was in the paper last week, and just let me take a few moments on this the last thing we ever want to do is actually take legal action against a patient for nonpayment the only times we do it is that -- and we only do it to people who we know have the ability to pay we never take legal action against anybody that has income less than $140,000 a year, and we only take legal action when people completely fail to communicate with us. i do think that there is an obligation that people have and should have that if you have the means to pay, you have an obligation to do so. and at least kmup indicate wico

with us. if you owe money and you don't communicate despite multiple opportunities to communicate, we take action. during covid we suspended all legal action during covid except in one case, and being transparent about this we had one hospital that is a relatively new hospital to our health system. we hadn't integrated all the back office functions yet, and that hospital did do, take actions during covid if they had been fully integrated with us, that would not have happened. we have now stopped all of that. there will be no more legal actions. everything is suspended all of covid going backwards and going forward. but i want to get back to a central point. it is unfare to people who pay money and who meet their obligations to pay when you have other people out there who basically completely ignore and say, i am not going to respond to you, i am not going to pay, i don't feel an obligation that's not a proper value to be

promoting. you have an obligation because these are deductibles and coinsurance that, you know, put in place by the insurance companies. not by us. it's the insurance companies that push the obligation down to individuals. >> yes. >> i am very sensitive to the issue and the hardship it causes and we do our best to make sure we do not take unfair advantage. but people do have an obligation and a responsibility to pay for that >> certainly not specific to medical bills, that's for sure michael, we appreciate your time, as always. thank you. >> thank you so much appreciate it. >> j.pmorgan's annual health conference today sitting down with biontech and gilead this morning alone. meg. >> hey, well, both of these companies integral to the covid-19 response. gilead's ceo talking about how

they are seeing higher sales for 2020 unfortunately, because of the winter surm. here is what he told us about sales of remdesivir. >> hospitalizations have quadrupled since october and we are just learning now that one out of every two patients in the hospital are receiving remdesivir, which is really important because, as you know, that reduces the hospital stays by up to a week. it also reduces the chances of patients going on to more severe illness and dying by 70% if it's given early in the hospital. >> now, you guys were talking about vaccine supply we talked with biontech's ceo this morning they of course are pfizer's partner on the covid vaccine in their presentation at jpmorgan they included an updated forecast for how many doses they can produce this year, up to 2 billion doses potential tensely. that's up from 1.3 billion forecast previously. we asked about their ability to

pivot quickly if any of these new strains of the virus prove to be problematic for the vaccines he said so far they don't appear to be. but here is what he said about their speed. >> the message on the technology has one advantage. it could, with the vaccine, it could be adapted relatively quick quickly. so we can change the sequence of the vaccine within a few days and quick deliver a new vaccine within six weeks in principle. this is technically possible and if this is needed, we would go for that. >> so six weeks there potentially, guys, if needed we, of course, hope it's not another big drug development news, eli lilly providing an update from an early to mid-stage trial in alzheimer's disease. you see the stock up there more than 11% we have lily's ceo joining us around jpmorgan tomorrow, dave ricks, and this afternoon we

will have ceo, the biggest maker of genome sequencing equipment lots to talk about in terms of tracking these variants. >> it's going to be a packed week interesting headlines from those interviews that you conducted as well one in two patients for gilead, that's incredible. don't miss cbs's exclusive interviews it is an all-star lineup meantime, a west virginia delegate resigned over the weekend and is facing federal charges for entering the u.s. capitol alongside rioters. governor jim justice joins us. he calls the move a scar on the state. he will talk about the turmoil, the transition, the vaccine and more so stay with us. (♪ ) keeping your oysters growing while keeping your business growing has you swamped. (♪ ) you need to hire

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it is now time for etf spotlight. a look at communication services select spider fund, ticker xlc social media companies have continued to make headlines around the lengths and the chaos

in the capitol last week down another 1% plus today one name that's moving sharply this morning, twitter. it is down about 7% after the company permanently suspended president trump's account. the company saying it took the action due to the risk of further incitement of violence the stat from "the wall street journal. president trump's 89 million followers account for 48% of the platform's base of monetizable daily active users a lot of questions around that "squawk on the street" will be right back stay with us to defend against dark forces attacking your organization,

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of an ambitious effort to reach at least 2 million shots a week in what he is calling a race against time johnson says that while people are excited about the vaccines, they cannot become complacent. officials say the national health service is facing a significant crisis with the next few weeks expected to be the worst of the pandemic. in hard-hit southern california, what's being called a vaccination super station is open in the tailgate lot of the city's major league baseball team they are hoping to do 5,000 drive-through vaccinations a day for priority health care workers by the end of the week almost 1,200 deaths were reported in the state over the weekend bringing california's total toll above 30,000. brazil has recorded more than 200,000 deaths during this pandemic second only to the united states but as summer gets underway there, the pandemic isn't stopping large crowds, as you can see, from coming to the famous inpamema beach.

back to you. >> look at that video. thank you. all right. a number of companies, including marriott, are rethinking political donations after the siege on the capitol last week >> marriott one of the first companies to take a stand suspending donations to lawmakers who did not, who voted against certifying president joe biden. a strongly worded statement issued by marriott, the world's largest hotel operator we have taken the des infrastructuretive events at the capitol to undermine an election and will be pausing political giving from our political action committee to those who voted against fertfication of the election gop lawmakers who received contributions from marriott in 2020 include republican senator josh hawley of the tune of $2,000, $10,000 to house minority leader kevin mccarthy, minority whip steve scalise. they will not receive money from

marriott going forward it is worth noting that contributions from marriott in the past have been evenly split between republicans and democrats. so this move is certainly significant. also worth noting, the ceo has not shied way from commenting on policy matters whether it's immigration, the travel ban, the u.s./china trade war and the negative effect that trade tensions have had on the broader u.s. hospitality and travel sector, and most recently sorensen playing a role in pushing for financial relief for struggling hotel operators amid the ongoing pandemic and since that statement from marriott and that action that h been taken, other companies have joined from goldman, citi, tech companies taking a stand and responding to those unfortunate events that happened last week on capitol hill. back to you. >> thank you very much. obviously, a lot to talk about this morning with west virginia governor jim justice. the vaccine rollout, the

transition, attack on the capitol and more governor, good to have you back. good morning. >> thank you guys for having me. appreciate you. >> i want to start with the vaccine because a lot is being written this morning about west virginia if i am not mistaken, all of your first doses have either already been administered or assigned to a name, and a lot of people wonder if that's because of certain decisions you made about opting out of large federal contracts. >> well, if i could just tell you real quick, this won't take but a second, but west virginia has been a model all the way through this if you just think, we were the first in the nation to test the people in our nursing homes and our assisted living. we kept economics of the whole situation in the state going well and everything. we are first now to vaccinate all of our nursing home recession and staff as well as our assisted living. and as we have gone forward now, we had to make a really big pivot and everything, a pivot away from really going with the

walgreens and the cvs to going with our national guard and what we know we can get stuff in people's arms. this is all about age and age and age. that's just all there is to it and so if you can just imagine this little state with some really, really smart people and all the stuff that we are doing, today, today, right as we speak today, we don't have, you know, vaccines in warehouses sitting on a shelf we have got them in people's arms today we have 100% of the vaccines that we have received that are either in people's arms or have a nametaged to the vaccination they are going to get in the next couple of days now what we need in west virginia, we need nmore vaccine. we stand ready to be able to help anybody in the nation and tell them, you know, the little secrets we have and what we have been able to do to make this happen here.

>> yeah. cdc i think has now named west virginia as the number one state for administration per 100k population based on today's numbers. that's an achievement. is it something that is specific to your state, governor, or is it a model that you think other states might try to at least adjust and adopt >> well, the whole secret to the whole thing is just this you know, and i said this to our national guard and i said this to our leading medical experts, but i said, you're about to get caught in something here and you don't really know you are about to get caught. and what you are about to get caught in is just this we are going to awaken to the fact that we are trying to develop a plan on how to give out the vaccines, and while we are developing a plan people are dying. people are dying all over the place. and absolutely so what do we really need to do? i hate to say it like this, but it's as simple as just this.

if i say, how many cows are in that field count the cows don't count the legs and divide by four. just count the cows. and with all of that being said, what we did is we reacted to the fact that we would have vaccines sitting on the shoefls and we reacted to the fact that age, age, age was driving this and these are the people that were dying and we aggressively got after it and these great people in the state of west virginia are making it happen. >> governor justice, i love hearing that these vaccination rollouts in your state are going the way they are i hope other governors are listening to your secrets and how you are making this happy as quickly as you are i want to shift gears a little bit. you are a republican governor, you are a supporter and i believe a friend of donald trump. i want your response to the things in the past several days, the riots in the capitol building or whether it is president's accounts being suspended indefinitely on many social media companies' platforms.

>> well, let me say this first and foremost i am a friend with the trump family, and truly i am more of a person that is respectful to the presidency of this great country. what happened with the attack on our capitol, you know, with people that are just out of control is despicable. that's all there is to it. there is no other way around it. i absolutely understand the frustrations of our president and the 75 million people that supported him and everything i understand that level of frustration. but absolutely we have got to step back and take some deep breaths and realize that we are americans first and foremost we aren't democrats and republicans first and foremost we are americans for crying outloud, this makes us look terrible beyond belief now, you know, from our president's standpoint, i think what we should always do is be respectful of the job that he has done he has done so many good things.

but absolutely, where we are going here, anybody would have to say we got off the rails, did we not i mean, that's just all there is to it. we got way beyond the partnership amateurs we should have been and when it really comes right down to it, i hope and pray that what we will do as americans will step back and be americans. >> governor, derrick evans is a republican, west virginia state lawmaker who resigned after he was arrested, after filming himself inside the capitol last wednesday. do you think that those who have been arrested and will probably go to jail are going to serve as examples to those who might want to do something like this in the future >> well,you know, a long time ago, and i got white hair, so a long time, you know, there was a program, "laugh-in." i think at the time they had a dumb bunny delegate evans is a dumb bunny that's just all there is to it

to run up there and film yourself and go through all that and everything, i mean, that's nothing but a dumb bunny and so from my standpoint, i don't know delegate evans. he is newly elected and everything but from my standpoint, you know, if you are going to do that stuff, you know, really and truly you ought to suffer the consequences. >> governor, president bid-elect biden plans to lay out on economic agenda on thursday. there could be more stimulus proposed by him. what are the expectations for you in terms of additional funding for your state where would you want it? what would you need, if you need >> well, absolutely. you know, we are not immune to suffering through this pandemic. i mean, it was a cannon ball to us, like everybody else and everything in fact, we even had to move, you know, the filing date for our income tax into another fiscal year. so it really doubled down for us now, we got through it, you

know, and i am a real believer that you first and foremost got people out there that are really hurting. i mean, you know, if you just think about, if you were sitting out there trying to pay your utility bill or car payment and you were unemployed because of this terrible pandemic or a restaurant owner that absolutely, you know, has just been paralyzed, and on and on and on, there is an absolute mega need for the stimulus now, i have got to say this. i pleaded with our president and i pleaded with everybody that we have just dinked around forever, and that's all there is to it with the stimulus package that just came out. it should have been out a long time ago too many people out there are really hurting businesses and employees and people that were really suffering. so, with all that being said, at the end of the day, you know, our state surely needs dollars as well, but with that, you know, we have got to be smart in how we appropriate certain

things let me just end by just saying just this. the biggest thing that we can do in moving forward to stimulate our economy is not just jump start it with a few bucks a day. we have to jump start our economy with a national infrastructure program we absolutely can really jump start our economy with that. and i hope the biden people listen to that and everything, and they move forward and everything, and i look forward to working with them because, you know, i am first and foremost an american i just want good stuff for our country. that's the only reason i'm here. >> governor, we love hearing from you the country is watching you and the effectiveness with which you are administration the vaccine thanks for your time, as always. as we head to break, shares of office depot odp corpse are scoring as they offer to buy the retailer for $40 a share staples first tried to buy office depot five years ago but

called it off in light of antitrust scrutiny we will keep an eye on that story. the dow down22ig n st with us of office depot odp corpse are

retailer for $40 a share

one of wall street's biggest bulls is on high alert why he fears a looming meltdow tradingnation.cnbc.com. more "squawk on the street" coming up.

welcome back to "squak on the street". stocks are pulling back today with most s&p sectors in negative territory as you can see. one lone stand and that's health care consumer discretionary stocks are among the worst performers and few of the lig laggards in that sector are the technology-related names like ebay, like tesla, like amazon. you can see all of those stocks in the red but keep an ayon travel and leisure names.

underperforming, including las vegas sands, booking holdings and carnaval earlier this morning they gave initial guidance indicating a bigger many expected loss from the previous quarter consumer discretionary has opinion an underperformer after being a top sector in 2120 more "squak on the street" after the break. see you then more "squak on the street" after the break. see you then 0. more "squak on the street" after the break. see you then ♪ you can go your own way

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welcome back to "squawk on the street." bitcoin down 15% wiping off more than $200 billion from the entire crypto market in terms of value after a huge valley. one regulator warns, quote, investors should be prepared to lose all of their money. a bitcoin bull and the co-founder of humble ventures joins us now >> thanks for having me. >> it's pretty incredible. friday bitcoin trading at almost $42,000 and now we're down to about $31,000 and change right now. why the tumult over the weekend? >> bitcoin has grown over 400,000% now $600 billion

today we saw some profit taking investors liquidating. if you're a bitcoin bull and you have a low time preference you know corrections are normal. so like me, like many others, i'm not phased by this >> for others who are new to this, maybe strap on your seat belts. the dollar has been strength strengthening a bit here it does seem like it's oversold and was right for this bounce. the trajectory seems to be weaker, whether it's that or fears around inflation, how is all of that playing into the monster rally in general in bitcoin and other cryptos? >> according to the crypto exchange, bitcoin addresses with over 100 bitcoin, they accumulated more than 47,000 bitcoin in the month of december alone.

the reality is that usd is losing 2% each year with this current inflation rate i think long term you'll see more institutions adopting bitcoin as a global value and an inflation hedge. i think a great example is micro strategy where they announced $1 billion in total bitcoin purchases in 2020. >> something at that got my attention that you wrote i think on media recently bitcoin is financial freedom for black america. what do you mean by that >> i believe that we're going to see a lot of skepticism turn into curiosity i think this asset won't just be limited to the early adopters, but a group of people, a fnew group looking to capitalize on economic empowerment and regaining financial independence why continue to buy into a traditional financial system that's been excluding you for decades and if not centuries

>> what is it going to take to see some of this volatility smooth out in bitcoin? >> i believe there's a lot of opportunities and enterprises for investors to join and participate in the best performing asset class i think one way is through tokenization and digitalization. to digitally represent real tradeable assets will disrupt industries and turn the world into investors by giving access to a whole other group of people to participate in this new financial system that has seen the merge of crypto. >> okay. so coins aside, on a day we're seeing it announce it's going to go public as well, what are other opportunities out there? where are you putting your money to work more broadly

>> absolutely. i believe companies will supply this constant presence of skin in the game to consumers by rewarding them with bitcoin and crypto a few examples is lolly. my wife uses lolly but she doesn't fully understand it in term they have turned this casual shopper into a passive investors. also we saw i believe last week that the first player to be paid in bitcoin bitcoin monetary network to turn a traditional paycheck into btc. i think it has really opened up the door me personally i'm an age-old investor in republic, one of the first platforms to allow to you digitize tokens and a great equity as well

>> you believe this is here to stay not a bubble. >> not a bubble. and if you have a low tide preference and don't mind going down this bottomless rabbit hole that is bitcoin, i believe you'll find a lot of value out there. and through these companies and our investments we are seeing that bitcoin's power will be shared with the world in a whole new way we've never seen before. >> harry, thank you. >> thank you breaking in just the last couple of minutes american expre express, the latest company to suspend contributions to lawmakers who opposed the certification of the election joining the likes of jpm, citi, marriott and others. "squawk alley" will start on the otr def isrehesi oth bak ! ! no dad, it's a video call. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app

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