31,057 the nasdaq is under. approximating, still down about 1%. >> key sectors energy up. health care up, financials are up that might be enough today to offset some of what we are seeing in the red hots pulling back. >> we have a big week, beginning of earnings season as well thank you for watching "power lunch. we are going to be with you all week "closing bell" starts right now. >> it certainly does morgan and josh, thank you very much i am welcome to "closing bell," i'm wilfred frost along with sara eisen stocks were sharply lower to start the day. we are well off the worst of the session right now. let's look at what's driving the action the political fallout from last week's violence remains front and center corporations taking action it looks like there could be sufficient votes for impeachment in the house more stocks are rising like banks, energy, retailers, and momentum winners like tesla have fallen apple is down about %. nasdaq the worst of the major indices. bitcoin was down about 20% at the lows of the session.

helping sendment, more than two dozen companies raised guidance despite of course record high covid case numbers in the u.s. the dow down 50 points or so well off the lows as you can see from the chart. >> down all day long we have a lineup of guests coming we willi speak exclusively with richmond fed president thomas barkin who just became a voting member at the start of this year at the fed his thoughts on the recovery, future aid, and a whole lot more. plus, business leaders reacting to the riots on capitol hill chamber of commerce leader tom donahue joins us with his thoughts on how far companies should be going right now in response to the unrest on the earnings front you won't want to miss our exclusive interview with arnold donald the ceo of carnival. his take on the future of cruiselines, demand for travel and much more coming up. let's focus on the stories we are watching. one hour left of trade mike santoli tracking the market

action we have a team of reporters tracking down the corporate blowback from trump from some of the country's biggest companies. mike, we will start with you and the market the comeback we have seen from energy at the top of the list. >> the cyclical sectors, ones tied to the economy are holding the whole market together. t'was there was a little bit of a shakeout this morning, the s&p down almost 1% in the early going. the dip was very much bought the low for each the last four weeks has been intraday on monday i guarantee people know that i am betting people are betting that could be five in a row. this acceleration last week threatened to get thing slightly overheated not so much but you are watching out for something like this, one of these spikes that puts in the end of a rally it is hard to say if we are there now because the s&p, the broader market is absorbing a pullback in some of the high momentum names and some of the solar stocks, among others that so far is holding together. the treasury yields have had no give whatsoever in their march

higher you see it reaching almost 1.14 at this point. again this is looking jumpy and grabby, isn't it, kind of like it did a couple of months ago. i think you have to want for the fact this is pretty much testing the upper bound of what has been this climb higher for a while right now. the bonds themselves in price terms are looking very oversold. it would not be a surprise really to see some kind of a bounce in bonds and maybe this yield move moderate a little bit. wouldn't be a problem necessarily but maybe an occasion for cyclicals and financials to take a break as well did want to take a look at some of the higher flying sectors over the last month or so. you see it barely -- micro strategy a software company that has become a bitcoin play bus they raised money and put cash into bitcoin, slow roll offer. tesla down significantly although not all ev plays are. moderating of some of the excitement in this area. plenty more air into these

stocks the s&p over this period is only up 3.5%. you can see some of the rotational action tinning to happen that would be a benign way i think for the market to digest its garngs if it doesn't all have to correct at once. >> i wanted to bring up the dollar. >> yeah. >> it is strengthing, over the past few sessions. we have been telling you it is a crowded trade betting against the u.s. dollar. if we start to see a more serious snap higher for the dollar, how big of a red light could that be for stocks and bonds and commodities, the everything rally that's been underpinned by the weakness in the dollar which has been a system lative support? i think it would be a test of the inflation rate which encompasses all. you have really seen precious metals having a harder time. now it seems like bitcoin has come in. of course bitcoin is operating on its own dynamics.

clearly the weaker dollar has been one of the cover stories for the rally if bitcoin at this point, it seems to me people are treating the dollar bounce as just the bounce. as you say, sentiment is negative, everyone feels like the inputs are there to have it continue to go lower we will see if it develops into anything more than a cursory rebound. that's the point at which you have to decide whether those trades are gone too far. >> thanks mike. let's turn now to the corporate response to the riots on capitol hill. we will begin with social media companies. twitter taking a major step over the weekend permanently suspending president trump's account. julia boorstin joins with us the latest. >> twitter preventing trump from reaching its 88 million followers and that platform is sending that stock down 6.5% today. facebook, which has indefinitely banned trump from posting to his 35 million followers there, that stock is off about 3.5%.

it benefitted far less from trump's presence on the platform facebook's coo sheryl sandberg today explaining its move to block trump at a righter's conference. >> we have clearly established principles that say you cannot call for violence. in this moment we took down those posts that were calling for violence immediately in this moment the risk to our democracy was too big that we felt we had to take the unprecedented step of what is an indefinite ban i'm glad we did. >> the social platforms are sure to face heightened scrutiny of their power. german chancellor angela merkel saying she opposes twitter's decision to ban trump and private companies should not be the ones who decide limits to free speech. president trump is no doubt impacted by the loss of his social megaphones that will limit his ability to conduct

business post presidency. meantime, parler is facing backlash of its own from well established tech giants. josh lipton with more on that company. >> parler had become increasingly popular in 2020, that app was downloaded 10 million times more than 25 times the number in 2019 now big tech cracking down google removed parler from its app store. apple did, too, saying posts included calls for violence and that violates app store rules. for example, screen shots of the app viewed by cnbc show users threatening to bring bombs to aws data centers apple saying in a statement there is no place on our platform for threats of violence and illegal activity tim cook's company has removed apps before for content violations like info wars and telegram but parler's ceo fighting back

saying we can't just write a few algorithms that will quickly location 100% of objectionable content but that doesn't mean we haven't been effective up friday afternoon it seemed that apple and amazon and google agre agreed. other tech companies including payments start-up striper taking additional steps in light of last wednesday's events deirdre bosa has more. >> cutting off the trump campaign's money flows that's arguably one of the most sequential moves by tech because it cuts off a lucrative source of income. that's what stripe did paypal and shopify also taking action they no longer sell trump official merchandise paypal deactivated accounts of groups who were using the platform to coordinate payments

to those who funded the rioters' actions. amazon went a step further and took the app off the internet all together by cutting off its cloud computing power and citing violent posts. parler suing citing unlawful business interference. airbnb is out with a statement saying it will uphold its community policies and ban violent hate group members when they learn of souch memberships. >> thanks for all of those angles so much to discuss julia, i wanted to come to you first for twitter and facebook in particular, are there any tones from their statements that suggest they are apologizing for what part, small or otherwise, they have -- they may have played in leading to the point that we reached last week? >> well, you know, wilf, it's

interesting because shirl sandberg was asked that very question in the righter's conference in which we participated today i can quote her directly she says she knows that facebook took down a anone, proud boys stop the steal but she advised her enforcement was never perfect. she assured there were still things on facebook but believed these were largely organized on platforms that did not have their abilities to quickly pull down and identify hate speech. i believe she was applying to the likes of parler. she didn't say the fight was free of such speech but pointed to some of the other platforms. >> i wonder how much harder life is going to be for these companies now that they have set this precedent and what they are going to do. they are being called out for not going against other people

or companies that promote hate speech why now? and what sort of precedent is it going to send for them >> right critics -- you certainly hit on a point. critics say this is too arbitrary and that they didn't really have these reoad maps in place. amazon cut off the cloud computing power. that's big news. you can't access parler on the internet i think all of this is pointing to what happened over the last four years, why don't we have regulation why are we leaving it up to the tech companies to decide, julia said that is a point that angela merkel talked about today. the short answer is we have been watching years of congressional hearings of these tech ceos coming up and explaining their policies but there hasn't been a ton of transparency on the lawmakers' side, hasn't been a lot of cohesion we are simply not there. it feels -- look at the performance in terms of stock

prices a lot of investors believe this is very far off, the regulation because lawmakers just can't agree. perhaps it gives it new urgency. but we will see if lawmakers become more focused on this in the biden administration, if it leads to real action and real regulation. >> de, josh, julia, thank you all very much for that sara, just to round it off, the share price moves, down 4%, down 7% feel relatively small if your expectation is that this is the straw that breaks the camel's back and leads to regulation that classifies these companies as publishers going forward and angela merkel is indicative of a leader who is not in the political picture here at the moment but if you are leading to that level of regulation, 4% delines is de minimus, i would argue. >> maybe yeah, maybe it is just a reaction purely to the controversy and the fact that some of these platforms are going to lose a lot of users and

face boycotts and have a lot of angry people as a result of banning trump and some of his supporters maybe that's the focus today but larger point, yeah, regulation is going to be the question. >> either way, both moves today are wide nasdaq down the most, just over 1% s&p only down .6 dow only down .2 pars as we stand. much more on corporate america's response to the capitol riots throughout the show including a conversation with chamber of commerce ceo tom donahue >> just ahead we will speak with the ceo of illumina. keeping your oysters business growing

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across the globe biotech firms like illumina have been a

resource in detecting variants in the viral genome. they are going to be part of the annual health care conference. meg tirrell has more. >> francis desouza ceo of illumina, thank you. tell us about the disconnect between what the street was looking for, whether it speaks to the strength of the business, if it is an affect of the pandemic tell us what to except for the coming near. >> the news we put out today is that we released our q 4 results, which were very strong. much stronger than the analysts expected frankly, stronger than we expected internally. we are coming into q 1, into 2021 with a lot of momentum. so the analysts when they put together their projections put together we believe for 2021 based on it being generally a

post pandemic year the way we are seeing the busy involve and the market evolve is that we will really be dealing with the pandemic for the first half of 2021 and it was the second half of 2021 that we will see business return to normal. while we are really excited about the strength we saw building in the business from q 2 of last year to q 3 to q 4 as we looked into 2021, you know, we are projecting -- first we are reinstating guidance we feel good about the momentum in the business. we feel there is some predictability now in the market and we put a number out of 17 to 20% growth rate in terms of revenue. and we will continue to update that over the course of the year again the assumption is that the first half of the year we are going to be still working our way through the pandemic and the second half of the year will be the new normal >> can you help us with how to think about how you are helping track these new variants of the virus? you have this partnership with helix to detect the uk variant

also known as v 117. you looked and found 51 of the 54 first cases that we found in this country of that variant are you looking for the south african variant, too why haven't we found it? is it possible we are missing it tell bus the surveillance you are doing? >> the current pandemic has highlighted the role that genomics and illumina have in infectious disease and public health so we have been very actively involved in the surveillance of the pandemic as it's played out. right at the beginning our teams were auld called out by the public health shoorts in wuhan in december of 2019 to help identify the source of this uni don't know origin. in january, our sequences were used to sequence and publish the first viral genome of safrs cov 2. since then we have been working with cdcs around the world as well as national health systems

to identify the emerge epps, the prevalence, the mutations associated with the virus. as you pointed out we are working in the uk with their sort of national surveillance initiative we are working with the government of australia. in the u.s. we are partnered with helix and the cdc to look for the emergence of the virus and then the strains that emerge we -- our technology powered the identification of v-117 has part of the surveillance that was working in uk. working with helix, the helix team identified 51 of the 54 case of the v-117 here in the u.s. there is less sequencing happening in the u.s that's something we need to address. if you think about how much sequencing we need to do to have an effective surveillance capability, it is probably about ten times more than we have today. and that's, i think, partly responsible for us being, as a country, slow to identify mutations as they emerge and be able to track as they spread

throughout the country >> it's sara, francis, thank you for joining us can your genetic tracing help identify which therapeutics are especially effective and maybe more importantly which therapeutics that are already in circulations like remdesivir, are resistant to the covid-19 virus? >> sara, you bring up a really important point. what our technology does is identifies the mutations that are emerging and a lot of the tools we are using to fight the pandemic, the testing tools or the pcr testing tools for example, only look at specific points on the virus they don't look at the whole genome if those points mutated then you may find in a the testing tools you are using are no longer to catch the virus in your community. so the virus has escaped f you like, the testing tools. so it is important to understand how the virus is mutating, what

impact it will have on testing tools, on vaccines, on therapeutics what you are seeing -- pfizer has put out some interesting studies so far -- is that these companies are looking a the mutations as they emerge and doing the work the assess does this mean for example, the vaccines are still effective in pfizer's case they came out with a statement saying from what they have seen so far their vaccines are still effective against v-11 it is important whether you are a therapeutics delivering company or a testing company or a vaccine distributor that you stay on top of the mutates. >> is it possible that we will see mutations in the weeks or months or years ahead that might prevent us from getting back to normal as we hoped later this year >> i certainly expect, biology tells us the coronavirus will mutate viruses mutate two or three times a month. not as much as influenza but

they are mutating. the way biology plays out the mutations that make the virus more transmissible will take over they will mew at a time. the more transmissible mutations will be responsible for a bigger number of cases in our communities. it is dependent on the mechanism of action of the vaccine or the therapeutics some vaccines are less susceptible to escape because the part of the virus that they target is not the part that mutates more frequently. again it is very specific to the therapeutic and very specific to the vaccine. again, i don't want to forget, we should also be looking at the diagnose stick tests because you will end up with a false negative problem where you might have the test saying that we don't have the virus in our community whereas what you might actually just be seeing is that the virus has mutated and that the positions you were looking for have changed that's why it is really important even as part of a surveillance that you do a sampling of both the positive

results you get in the community so you identify the mutations in the virus but also sample the negative results you get using pcr and take that sampling and sequence them to see if they are really negatives or are you getting a false negative because you have seen a mutation. >> you will have to keep us posted on all of our wonch francis, thank you for joining us here on excel we appreciate it and our thanks to meg tirrell as well >> thank you for having me >> good to see you 36 minutes or so left of trade. look at the markets. we are down. dow has taken another leg lower. off session lows we were down more than 200 but down 91 points thanks to the banks, energy, health care, those are all sectors doing well tech is not having a great day tesla is town about 8% or so first time we have seen that kinds of deline in a while for that year. big tech telg selling off. still ahead, president-elect biden expected to unveil his economic stimulus plan on

thursday, just days before the inauguration we will ask thomas barkin a if you tivong member of the fed how much help he thinks the u.s. economy needs. we'll be right back. stay restless with the icon that does the same. the rx crafted by lexus. get 0.9% financing on the 2021 rx 350.

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as america grapples with riots at the capitol last week corporations continue to speak out not just with words. a growing list of companies from wall street banks to health care firms are halting their political contributions. joining us now, u.s. chamber of

commerce ceo tom donohue head of the 2021 state of the union business event kick off tomorrow >> thank you for having me. >> to what extent do you think companies should speak out more than they have or less? is this divisive across political lines or is there unanimous support towards these political actions? >> i think companies are speaking out in part because they are being called by the press. and there are items that they want to talk about i mean, everybody is very disturbed about the events of last wednesday they are very concerned about how we got there and they want to do something. as you just indicated, many of them are making it clear that they are going to think about their political donations. they have had an easier year to think about it before they would

start preparing for the next election i am sure that the reason that thor going to think about it is they are going the watch and see how these people that are a question with them behave, evolve, and conduct their affairs for the next, you know, ten or 12 months it's a very emotional thing for a lot of people. and it is not over >> do you think this will finally lead to serious regulation of social media platforms? i ask because to what extent do the businesses that you represent rely on those platforms and broader internet platforms to promote their businesses and if they suffer, the social media companies, will it hurt business in america? >> you know, it's very interesting because most of those companies are private companies. therefore, they can let on whatever they want or keep off whatever they choose but in fairness to many of those

companies, the politicians have been asking them to take steps as they recently have for a long time that's half the politicians. the other half of the politicians aren't asking them to do that but i do think the idea of limiting people's ability to talk in ways that question the legitimacy of our government and the founding principles under we operate is something that we ought not be inviting people to have in the way it has been happening. an intellectual discussion, a discussion on a historic basis -- all of that is fine but we all know the difference of what we've experienced here in the last month or so. >> so, tom, i guess the question

is, what are you willing to do about it. >> we have seen a number of companies kluge marriott, dow, pause funding political contributions for those senators and i think other politicians, house members, that supported this effort to -- not to contest the election is that something the u.s. kmam is looking at doing? >> sara, yes but this is very simple for us because we wouldn't spend any money on political activities other than research and stuff like that with any candidates for at least ten months or a year so we have a little more time to figure out how we are going to do that, how we are going to recommend to our companies what they do. and it is very clear that we are very upset about what happened but one of the things we are trying to do is be patient, to

get ourselves together, to key what happens in the next eight days in the government and then, in a thoughtful way, make a plan on how we deal not only with what we do with our money, but how do we deal with what we do with our influence. >> do you feel complicit for having backed some of these senators and overwhelmingly backing the republican party, tom? i think they are real questions being asked of business leaders, not just for political contributions but businesses in general going along with president trump and some of his business hend friendly regulation regulations -- and led to this insurrection. >> first of all, personally, the chamber has nothing to feel complicit about. we have opposed this administration on all number of immigration issues, trade

issues, government structure issues, tariff issues. we're not somebody that was sleeping in the white house. we dealt with the members of the government we dealt with the cabinet officers i believe we did so on a very clear and aggressive way and we were not in any way complicit any more than cnbc is in the stuff that they have been publishing during this whole time >> tom, switching focus a little bit, what are your members saying in terms of how optimistic or pessimistic they are for 2021 and the economy and to what extent that relies on there being further fiscal stimulus early in the year once the biden administration takes power? >> first of all -- you know, i have done this now for 22 years.

and the one thing that i would say is that i am more and more convinced about my members they are resilient they have been extraordinary in the last almost year in dealing with this pandemic and keeping the economy afloat and you know, we are in a situation where maybe 60, 70% of the economy is doing very well we are doing a great job of creating jobs. companies are -- small companies are being created at a rate faster than they were in the year before. we are doing a great job in help ing companies deal with the pandemic by what we have been able to do up on the hill to get the right things in the bills and the wrong things out it is clear, however, that there are still 10 million unemployed people and that's for a group of

companies that are not going to get well until people are out and around we are working very hard with the people that are putting out the vaccines it is very hard for them right now, by the way. they are also treating all of these patients so i feel good about our companies. i feel very, very good about what we are all doing, the work on the pandemic. and i think there are a group of things with a new administration we are going to be able to work on very quickly. i think we will all work together on the pandemic we will all work together to get a good infrastructure bill and very important -- and i congratulate the president-elect, we are going to support an immigration bill. because while we have people that need jobs we have massive numbers of jobs that need people if we are going to expand this economy. >> good to hear your optimism, tom.

thank you for joining us >> well thank you. >> it was good to have you. >> stay tuned tomorrow you will hear a lot. >> okay. tom donohue, u.s. chamber of commerce. bitcoin, it was above $40,000 yesterday. today, it has now dropped to below $32,000. it's 15% fall. we will discuss crypto's volatile start to 2021. as we to break a quick check on bonds for you yields are mostly moving higher. the ten-year yield moving around 1.13%. even though stocks are selling off. bonds are, too higher yield is certainly helping the banks. "clongel wl rht cksi bl"ilbeig my retirement plan with voya keeps me moving forward...

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welcome back time for a cnbc news update with sue herera hi, sue. >> hello wilf. good to see you. here's what's happening at this hour, everyone in a memo to law enforcement agencies across the nation the fbi warns of possible armed pro-trump demonstrations at all 50 state capitals starting this weekend. while the memo summarizes possible threats, it doesn't

mean the fbi expects there will actually be violent confrontations in every state. today michigan voted unanimously to ban the open carry of guns in that building although concealed carry will still be allowed in april a group protesting coquid restrictions entered the capitol. house democrats are firming up their plans for this week as they try to have president trump removed from office before his term ends next week. majority leader steny hoyer is telling leaders to come back to washington for a vote tuesday night on a resolution urging vice president pence to invoke the 25th amendment then on wednesday, the chamber will consider impeachment. you are up to date that's the news update sara, i will send it back to you. >> sue, thank you. we've got 20 minutes left before the "closing belclosing l here's where we stand in the

weekend. we have been lower all day after a solid week of gains, the nasdaq pulling back about 1.3% because of technologies, coming up, shares of eli lilly spiking today. we will reveal the good news that sent that stock higher. when "closing bell" comes right back yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.

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16 minutes until close health care is one of the three sectors higher today shares of eli lilly soaring after releasing new date on its alzheimer's drug meg tirrell with more. meg? >> sara, well, this was a major upside surprise here for eli lilly. it is a phase two trial, a relatively small trial and the stock is up 11% on this news essentially, what they found is that this drug, which targets the plaques in the brain showed in a clinical trial to slow the decline in cognition and function with patient with early symptomatic alzheimer's by 32% versus placebo they have an ongoing trial and are going to talk to regulators

about what is next you are also seeing boosts today in biogen which has a similar drug in front of the fda you see biogen getting a boost of 6.1%, too, just on lily's data. >> meg, thank for that we should mention we are selling off a little bit as we approach the close. back down 125 points on the dow, lows were down 200. twitter tanks and bitcoin plunges after a huge rally we will take you insidthe e "market zone" next, with 15 minutes left in the session. and in an emergency, they need a network that puts them first. that connects them to technology, to each other, and to other agencies. that's why at&t built firstnet with and for first responders the emergency response network authorized by congress. firstnet. because putting them first is our job.

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♪ >> with 12 minutes to go in the trading day, we are now in the "closing bell" "market zone. commercial-free coverage of all the action going into the close. cnbc markets commentator mike santoli leer to break down these crucial moments of the trading day. today we have jim la camp back as well. we will kick it off with the broader markets. major averages lower across the board. still off the worst leflts of the session. dow and s&p on set to snap a four had-day win streak. higher treasury yields cone insiding with already some concerns about stretched valuations and high valuations what do you think it is? >> i think certainly aggressive valuations and also heavy momentum flows into some of the red hot most favored names of this risk bing that we have been in i think it is a sense there is parts of the market that have gotten very overheated in a hurry. you saw a lot of that coming off today. tesla down 8%.

the solar stocks down 3% bigger question is, can it be sequest sequestered? isolated we saw this in december where a lot of the stuff came off the boil the broader market held together fine and gave way to a cyclical trade up to a limit. we tonight know when this limit is as to when yields will pinch. but we are not there yet. >> gdp in 2021, does that suggest the markets should go higher >> i am constructive on the outlook for gdp. i think gdp could be far higher than what wall street is estimating up to maybe 6% what the problem is, when you talked about valuations, the problem is, the enemy of valuations is rising interest rates and inflation. so if you look at the crb index, it has had a breakout. the icm reports from last week

they showed big commodity price inflation. cyclicals versus defenses they are pushing to more inflation as well it is more iffy. it shouldn't be a surprise the dollar has been week, and 20% of all dollars in u.s. circulation were printed last year so we don't really know what the unintended consequences of policy are going to be but right now it does appear that inflation is going to be a dark cloed i think the market looks okay here i think the market looks constructive i don't know we are going to go higher but we may have a hard time gathering much momentum from this spot given the big move we have already made with interest rates going up and inflation going up. >> twitter and facebook lower dodd twitter permanently banning trump's account and facebook blocking his facebook and instagram accounts indefinitely. it is written today we have always wondered how much of

twitter's growth came from the trump bump now we will find out jim i come to you first. i mentioned this earlier in the show, down 4% and 7% respectively, those two stocks what do you think that move is pricing in serious regulation over the next 12 months? or not yet >> that's a great question there has been a lot of talk whether there is going to be a lot of anti-trust stuff going on with the very, very large tech companies. historically the democrats have been more anti-trust oriented. that does make some sense. they rattle their sabers but the reality is that the technology industry has been friendly to us onhow that's going to go beyond the social media we are going to have to deal with regulation perhaps in the banking sector, in the energy sector it doesn't mean you can't make money in all of these sectors. it means you have to know which devil you are dealing with when it comes to regulatory steps,

missteps, and what's going to be harmful and what the unintended consequences are going to be these things all had a big move, wilfred, and it shouldn't surprise anybody that this new uncertainty about the possible threat of legislation against these things will give investors an excuse to take profits here by and large, these companies are probably going to do fine. but there is a new level of uncertainty here that investors are going to have to grapple with. >> yeah. not to mention loss of users and just how that affects the fundamental business. >> right. >> i want to hit bitcoin moving lower, sharply. doubleline capital's jeff dunlap on "halftime report" earlier today. here's what he had to say about bitcoin and big tech. >> i don't like things that are up on a stelt like that. just like i didn't like the super six back in june or september. but bitcoin to me is now in sort of bubble territory in terms of the way it has been acting

>> bitcoin prices plunging after the huge rally in recent weeks kate rooney has more on the big move >> sara, bitcoin is reversing course after crossing 40,000 just last week. in the past day or so, the cryptocurrency has lost more than $9,000 in value it's down about 11% today. analysts tell me this is likely due to some profit taking after a record run in the first week of this year it is still up 300s in the past 12 months. we have seen new signs, though, that the retailing exuberance is back in the crypto market. according to apex clearing three of the top five most traded stocks among younger traders last week were crypto mining and blockchain >> jim, what do you think? bubble or not? bitcoin. >> anytime you have a market that's gone north of a 45-degree

angle i am always skeptical of buying that market there in terms of bitcoin, the big argument is, does it have really any intrinsic value versus what happened with all the money printing going on around the world. i mentioned we printed 20% of all dollars in circulation just last year. so the weak dollar, sara, has been a big theme for a lot of plays. it has been a big thing for the emerging markets, which rallied. a big theme for the commodity-related areas which rallied, gold and silver and at the top of that list is bitcoin. if you look at the history of bitcoin, it has been extraordinarily volatile so is it a bubble? i don't know i think that's a rather subjective term. is it something that has moved north of a 45-degree angle at a very accelerated rate, and investors should therefore be cautious absolutely. >> we should also mention they did say the supply and demand equation for bitcoin is

favorable if more institutional investors continue to embrace it though overall he won't optimistic my question is the this. how many days in the last three or four months have we seen bitcoin down this much -- i guess none at all if it is down 15 to 20%. but it is a test of whether there is profit taking to come in the wave of recent entry into it. >> it doubles within a month it tells you it has a little of speck laigs money in it. nothing has changed for bitcoin except for tack of massed option bitcoin is owned by a small percentage of overall owners they can dump any moment i am not saying they are doing it right now but it is very different from other assets that are much more widely distributed everyone is fighting over the marginal bitcoin which is constrained in its new supply.

it is almost a real world experiment in kinds of crowd psychology and appetite for a new asset class which has some utility but has the price completely outstripped whatever ow tilt it might except as a replacement perhaps for gold. boeing shares under pressure after one of its planes crashed in indonesia phil lebeau. >> more questions than answers at this point about what happened with the 737 that crashedon saturday off the coast of the indian ocean. you can see the wreckage on the sea floor. because the plane is believed to have intact when it hit the water there is a lot that could give investigators clues the black box and the cockpit data recorder and the cockpit voice recorder will be retrieved and then they will have more mourns look at shares of boeing

keep in mind this 737-500 crashed just four minutes after takeoff. unusual. unclear if there was even a may day signal the plane was just six years old and according to the company it was in good working order. and this is a plane guys that has a strong safety record once we get the black boxes it will provide a lot of answers as to what may have happened here. >> phil lebeau thank you boeing taking 20 points off the dow. mike has more on the internals with two minutes to go in trading. >> a positive skew beneath the surface. prices are down but more volume to the up side than the downside so the average stock is outperforming the index. it is mega cap growth, tesla and other names dragging the numbers down

the dollar still has potential for suggesting it is attempting to put in some kind of a base. it is putting a damper on some of the reflation trades out there, and gold as well. look at the vix. it actually has had a continued bid to it as we have seen recently up near 24 again you have this hedging around locking in gains as well as perhaps potential unrest that everyone has at least one eye on as we get toward the inauguration. >> under one minute left in the session. well off the lows is the key pointed. though still red across all four of the major indices the dow is down 100 points or so the low was down 267 the s&p is down .66% the 2345kds down 1.2%. the russel fraction ally lower had been positive just a few moments ago. cyclical names leading the bounce off the lows earlier in the session. communication services because of twitter and facebook at the

bottom of the pile today consumer discretionary and real estate down over 1%. the dollar had been stronger still up .5% off its highs. gold up about.5% and bitcoin as we have been discussing down sharp lesion 12% at the close at the close, all three indices down at the close. >> that will be the first down day in five for the s&p 500. coming off of those record levels welcome back, everyone, to "closing bell. i'm sara eisen here with wilfred frost and mike santoli, cnbc senior markets commentator look at how we finished up the day on wall street after solid gains last week to kick off the year we pulled back today. health care names, merck, walgreens led the day. jp morgan, goldman sachs and financials did well. apple and coca-cola were the losers apple down about .6%

wilfred went through the winners, energy, health care eli lilly the biggest gainer on the s&p 500. the nasdaq down 1.25%. still up for the year as are all the major afternoons but a pullback on tech weakness. pullout out of tesla, amazon, facebook, alphabet -- all the winners. coming up this hour, richmond federal reserve president tom barkin in his first interview as a fed voting member on whether there is a risk of too much stimulus being ejected into the economy. we are talking fiscal ahead of president-elect biden's big proposal on thursday first, jim la camp is still with us liz mullins joins the conversation first to mike. on a pullback day what stood out as far as what could have

staying power if this was a market that had gone too far, gotten too stretched >> i think you hit on the large cap tech weakness today. we have been looking at bond yields and their relationship to the mega cap growth stocks it is not necessarily an eternal relationship that yields are always going to inflate the valuations but it was a story on the upside back in the summer if you look at the faang-type stocks, the qqq names, nasdaq 100, they have not made new highs for a few months now there has been a underlying rotation or a net benefit to the old economy type stocks, the cyclical names, that continued today. yes a lot of hot money favorites like tesla, like bitcoin, like solar did have money coming out. what you had is coinvestor risk. in other words the stuff that is going down, they own some of the other related names. and those things come down as well as people pull back in risk that's the main part that i would see. i think the market is at the

point where you can consolidate and cool off or overheat from here if you go directly higher >> liz, to what extent are you worried that growth stocks will getg ahead if yields keep rising >> mike made a good point where it is not always a perfect relationship where if rates stay low growth stocks can keep going. i think the trend of rates is moving in an upward fashion. i would expect yields to move up over the first half of this year i think right now the bond market is pretty inconsistent with the optimism that we have seen in the stock market yields need to catch up to that optimism and get to a place where we are not so worried about the future anymore and get to the fact that we expect the economy to recovery in the south carolina, accelerate into summer and hopefully market and operating fundamentals can stand on their own two feet. as the yields start to move up you are going the see pressure on growth stocks you are going the see pressure

obviously on high quality fixed income but i will take that any day if it means that the economy issing to better. >> is it a reason to get out of those stocks, liz? is that what you would be recommending the tech -- >> i don't think it is necessarily a reason to completely exit tech there is an underlying theme of digitization that accelerated during the pandemic that didn't going to go anywhere, right? you never go backwards in technology but it could be a time to reevaluate your exposure to tech are you exposed to the companies that are going to have exposure as we get back the an open society. contactless buying, and signing mortgages digitally. those are the tech names to go for. >> i wonder what you think would be a surprise for market participants now sure, it would have been six months ago but a lot of those

inflation linked trades, banks and commodities rallied very hard in the last couple of months. >> they have it is a great question i think the level everybody is going to start paying attention is 1.5% on the ten-year treasury the corporate yields on the investment grade side are still negative i want to touch on big cap a lot of people owned those stocks for years because that was the momentum trade now it's not the momentum trade anymore. but a lot of people didn't want to sell at the end of last year for capital gains purposes you may see that a lot of these big cap tech names are sources of liquidity as the rotation continues into value into small cap materials and the economic recovery plays all that means not necessarily that you shouldn't own them but you are not going to have a lot of momentum in those names and you may have better uses for that money here and there. while i do think rising interest rates are a threat to big cap

tech going back to your question, i don't think they are going to necessarily run away from us. i think the surprise really happens maybe in '22, '23, as the economic recovery starts to build and they are still printing a lot of money, which they probably will i don't think necessarily think it is going to be a big issue this year, but the ball is starting to roll in that direction, and weneed to pay attention to it. >> ten-year note yield, 1.139. tloins today jim la camp, liz young, always good to talk to you. let's turn to the question of the federal reserve joining us is richmond fed president and fmoc new voting member thomas barkin president barkin thank you for joining us >> thanks sara glad to be here. >> i want to start with your outlook and how you are feeling as we look into 2021 with the economy cloeg down here a bit with you with more vaccines and

more stimulus on the way >> i think it has all come into a lot clearer focus at least for me over the last few weeks we know what is happening with the virus, which is cases are escalating and that will hurt us in the first quarter, maybe first half. would know we have a vaccine and hopefully that will be rolled out in time to help us in the second half. we know what happened in the elections. and i think we got a lot clearer sense on the fiscal side i think you are looking at a second half that's going to be very strong. the question i think is how do we get through from where we are today to that second half? i will say, while it might be bumpy i think there are back stops here in particular, fiscal will be a back stochl i think elevated savengs are a back stop. i think the potential for more stimulus potentially. inventories are low, which is another back stop. while i see bumpiness i think we have got back stops here for the first half of the year.

>> i want to ask you about the second half, which you said is looking strong that's pretty much consensus it is a powerful combo, getting the vaccines and all of that stimulus president-elect biden even talking about trillions more what about the risk that the economy just comes roaring back, and with it so does inflation? how likely is that of a risk factor for 2021? >> well, i think when we look at the numbers in the south carolina -- in the second quarter we will see stronger numbers because comps were week. and the camps in the third quarter were strong so that will hold it back a bit one of the things i tried to dig hard into is all of the excess savings? what happens when people are free to spend again? it is surprising you don't see it coming into the economy as powerfully as you might guess. in part a lot of what we have given up are services. while i might need a haircut, i don't need two

a dentist appointment, but not two. those take a while to get back into the economy some of the thing like rent are going to take a while to adjust. at least my forecast, while it comes back i think you are more likely to see it sports oends spending over several years rather than it be some big episode in the fourth quarter. >> rich clariet said he didn't expect any tapering in the bond purchases in 2021. is that your take as well. >> we have given outcome guidance not date guidance there are scenarios certainly where we see strong recovery and unemployment and inflation but there are lots of scenarios where we don't. >> it is a little big, the substantial progress if we do see a very strong second half of the year and with that hopefully a much lower unemployment rate.

then how will the market know when the parring back of that $120 million a month in bond buying actually come >> well, i think the chair said in his press conference is that our intent is to communicate well on this i think we have learned lessons, certainly, from six or seven years ago. and he was on the committee, of course, at that point. and i expect us to do our best to communicate well there. unemployment was 6.7% when we gave that guidance inflation was 1.4% it's still both in the same place. so i think you would need to see substantial progress against those numbers toward our goals before the discussion gets on the table. >> you reported saying last week you felt the spike in government spending is likely behind us even despite the results from the georgia runoff if we did see a trillion plus of stimulus at some point in h 1 -- in the first half of this year,

would that come as a surprise for you? would that increase what your forecasts were for inflation in the year ahead >> i was actually giving a talk on year over year spending one of the points i made is i see business investment being tronger this year than last because i think they can invest with confidence. consumer spend, as i said we will see what happens in the second half of the year. the point i was making is that government spending is going to be down year over year even if you take the trillion dollars that you assume and add to it the $900 billion that's still going to be less than we put into the economy this year, the $3 trillion that was passed in the c.a.r.e.s. act. >> i wanted to ask you about the recent dollar weakness is that something you welcome, because it helps achieve inflation goals and helps the u.s. recover faster. is there a level of weakness that gets too extreme and might worry you? >> i am trying to stay focused

on our mandate i am focused on unemployment and inflation and what we need to do here to try to move the needle on both of those i am not really focused on the dollar. >> are you focused on bitcoin at all? >> i'm not but i take it that was a pretty big conversation in the segment right before mine. no, we are focused on when we influence. >> what are your views on bitcoin in a broader sense, as to whether it is a threat long term to the dollar and whether or not a currency like that that clearly is starting to get significant attention should face regulation or be reeled in a bit? >> the question as to is it a threat to the reserve currency, the dollar has a set of characteristics that are powerful including the full faith and credit of the u.s. government behind it so it is hard for me to imagine something replacing that without some sort of similar back stop i just haven't heard a story

behind bitcoin that would suggest that >> yeah. what about the notion of just the excess that we are seeing in certain pockets of the market. the froth we are seeing. the appetite for ipos, the spacs, the gold rush we are seeing there how do you view those things do you feel at all that the fed is responsible for things like that that we are seeing in the system by implementing super easy monetary policy, lots of stimulus, and a back stop against the corporate bond market >> well, you know, we wake up, look at our mandate, look at our numbers and we see core inflation at unemployment. i at least say in that environment it is important for us to go as hard as we can to try to achieve our mandate and bring this economy back to the potential that we know it has.

i don't in that role try to focus on markets just because i think it is going confuse the mission here i think it is hard as an investor certainly in my portfolio, too, to understand where to put your money in a world where bond rates are low. and -- but i certainly hope and expect that people are going to make good decisions. >> what, ultimately s a bigger fear for you right now a double dip recession in the u.s. or inflation getting out of control? >> i think i have a lot of faith that what we have heard on the vaccines is going to play out. so i think this economy will come back. i think we have the tools to keep inflation under control what i am more focused on is actually what's happening right now in the economy to our work force. in particular, to students in the work force i have seen some numbers in the last week or two that suggest that enrollment in pre-k and

kindergarten is significantly down i have noticed that engagement in learning, remote learning, is a challenge. and community colleges which do a lot to prepare people for the work force, their enrollment down there is a generation there that i just worry whether they are going to get a path to the work force that we need and for me and our mandate of maximum employment, that's something that i am focused on >> where do you see the unemployment rate ending the year how much progress are we going to make? how much do you think is permanent damage >> unfortunately, the unemployment rate is not a great measure for the situation we are in right now because while the unemployment rate is elevated at 6.7, i do think we are going to have a lot of jobs come back. you saw almost 500,000 jobs lost in retail and hospitality last month -- leisure and hospitality which you can easily imagine coming back with the vaccine

a bigger issue is participation in the work force. if you had held participation constant, unemployment wouldn't be 6.7, it would be 9.4. you have to look at employment to population. that's taken a big hit i think we will make a lot of progress this year, as i said if you can bring the economy back in the way i suggested with a vaccine arc lot of those jobs will come back but i do worry about adjustments that businesses have made in this context could be automation. could be decisions to streamline and thin down, could be small businesses that are exiting. and the employees in those businesses doesn't seem to me are yet getting the training and the help they need to get into the next career. so that is something i am watching closely that is what i am mosted concerned about in the economy right now. >> i wanted to ask about small business in particular janet yellen, who is nominated to be the next treasury secretary, former fed chair z tweet out about small business in react to the december jobs

report where the economy actually lost jobs we are getting another round of ppp, small business loans, starting today downing that's enough to help get small business back and start recovering and contributing to this recovery? >> well, it's a tricky thing to try to pour money into the small business segment and hope you hit it in the right places of course that was tricky the first time it will be tricky this time. you know, you need propositions for the businesses on the back end. so i think there will be, you know, some restaurants, including some of my favorites, that sadly aren't making it. you've got small retailers i think that's -- many of them who have gone out -- i think it is more of a sectoral shift as people continue to move on line. on the other hand, in the third quarter we saw record -- not record -- new high levels of new business start-ups so my hope is that, you know,

those people who have sadly been put out of work are going to find their entrepreneurial energy and get into business he is that where the economy has struggled over the last ten years. the start-up rates dropped meani meaningfully my hope is some of these start-ups have the potential to be successful. my hope is that the ppp bridges the small businesses that are successful tonight other side. but not every business is going to make it nor do they ever, you know, even in good times. >> something we will watch tom barkin thank you very much for joining us we appreciate your time and thoughts president of richmond fed. wilfred. up next, carnival's ceo on the cruiseline's big quarterly loss and whether he has seen an increase in bookings since the rollout of the coronavirus vaccine. we are back in 90 seconds.

we are getting a news alert on walmart kate rooney with the story kate >> hey, sara walmart is launching a new stand alone fintech company. the retail giant announcing just now that they are partnering with ribity to develop what they call modern and affordable financial solutions. it is going to be a separate stand alone company that's majority owned by walmart. they say they will offer financial products for employees and customers. no word yet on when exactly when this will launch or if it is

banking products or payments walmart's partner here ribity cap talent is one of the best known vcs. >> interesting, kate thanks so that. >> shares of carnival closing in the red today after reporting an adjusted net loss of $1.9 billion for the fourth quarter though carnival did say demand for cruise travel is picking up. advanced bookings for the first half of 2022 are high. joining us, carnival's ceo thank you for joining us. >> thank you for having me >> when is your sense of when things will be back to normal and your sense of us from for the number of times that date has been pushed back. >> it is a global pandemic

we have been affected because we have been on pause, voluntary pause for many months now. we are all working hard. the conversations are about resumming, the resumption of cruise w. the advent of vaccines w the increased number of rapid testing, low-cost testing techniques with improvement in treatments and so on, hopefully the world can defeat this pandemic and we can all get back to normal so we are hopeful that by the end of the year we will have our ships across our fleet around the world sailing. >> is there a moment arnold perhaps before that or in order to get to that particular stage where you will be able to cruise only if passengers prove they have had the vaccine is that something you are thinking about. >> the vaccine is at the early stage as you know in terms of distribution, et cetera. we will obviously be in some appliance and follow whatever

the regulations are by the various authorities in the many places we go but we haven't predetermined any specific criteria around vaccines at this point we will let that evolve. we will do the right thing in the best interests of public health at the time. >> arnold, i know you have continued to be optimistic about future bookings, talk about pent up demand. but now that we are -- if you don't start sailing really in the u.s. until march we are looking at, what, a year of no cruise do you worry that the longer this goes, the longer people get used to not doing something the longer the psychological impact will be that changes behavior and they might not come back >> just the opposite we don't have a demand problem we have robust demand. our bookings as was mentioned in the opening of the segment here are at the high end of the range as we go into 2022

we have lots of regular cruisers who haven't been able to cruise for almost a year. they are all anxious to cruise again. we are going to start with staggered sailings we can't bring all the ships back at once so there is going to be more demand than there will be ships for a period of time i think longer term the future for cruises is bright as ever because people still want to travel they still want to experience. and once they feel that it is safe and regulators allow it, they will be doing that once again. >> you were speaking a bit on the earnings call about reducing your fleet update us on the scale of that what size will your fleet be by the start of next year relative to whether it was before the pandemic. >> we are exiting 19 ships, which is about 13% of our overall capacity that's an acceleration of ships that were less efficient and

overtime we would have exited but we have accelerated since obviously they are not generating revenue now and we can avoid in our cash conservation mode that we are in from a burn rate -- you know, we can avoid the layup costs by exiting those ships. so about 13% of our capacity at the same time we are taking on new ships and we are excited about carnival mardi gras go it has the first roller costar we have taken that ship. we have taken a new ship in the uk for our p and o brand eye owna ask we have taken costa for endsa for our acosta brand in europe we still have new ships coming we exited about 19 ships and we were all we were previously north of 100 ships and later this year we will be in the 90 range in terms of ships globally.

>> speaking of cash -- around, we talked to you after the c.a.r.e.s. act last name now that we have another stimulus package passed, $900 billion, airlines are getting another $15 billion, second round of aid for payroll relief of i don't think cruiselines are in it again. do you think that's fair, and harmful to the u.s. economy? >> i think, look, cruises -- you know, one job on a cruise ship is estimated to generate five to seven jobs in the rest of the economy. i think that's where the focus needs to be, on those other jobs we have done the very difficult things we have had to do we raised over $19 billion of capital over the past few months to give us a liquidity reason rate through 2021 where if we had no revenue we would be able to get through all of 2021 but it is important, i think, in these stimulus packages to look to those that are impacted by fact cruise is not currently occurring. and that, of course, includes

travel agent professionals, you know, people working in ports, you know, taxi drivers, small restaurant owners, et cetera i think if the stimulus package helps those people ultimately it is helping us. >> arnold, have you been pleasantly surprised by your ability to raise that $19 billion despite the climate? will you be able the raise more? >> we have the best balance sheet in the industry. we have the capacity the raise more if we need to or to rebalance between equity and debt and so on but bottom line is pleasant would not be a word i would use. no one likes borrowing that kind of money certainly we always like to have raised it at lower cost than what it was. but it was necessary we did what we had to do we are conserving cash our team has really stepped up,

very proud of them and we have done an outstanding job with operations because our ships are still at sea you know, we have crew on board. we repatriated 90,000 crew members at a time when it was very difficult to do so. we got that done the ships have minimal manning they are operating they have to be the highest priority for the health and well-being of everyone we have crew working very hard with minimal numbers of them on ships to that. our company has been very resilient and i think again the future for cruise is very bright. >> i wanted to pivot you in the time that we have left to the business issue of the moment, which is how to handle the unrest that we saw in congress last week. in your sector, marriott made the decision to suspend political contributions to lawmakers that voted against

certifying the election. i noticed in your political contributions this last cycle ted cruz was one of the biggest recipients have you made any decisions about that are you thinking about it? >> we haven't made any public decisions but look, first of all the actions we all witnessed were absolutely deplorable and no doubt, like many, many others i feel strongly that those perpetrating those action asks anyone involved in provoking, encouraging or being come police with it those actions cannot be ignored and should be dealt with with the full force of our laws having said that, people in the united states and around the world have experienced one of the most difficult years in memory and it's past time for all of us to come together to address and defeat the health threat that is this pandemic, to elevate together our standards of social justice, to work together to energize our economy, and together to promote the welfare of everyone.

so in cruise, we bring very diverse people together from all around the world and all walks of life. and through cruise experiences, they often discover what they have in common, and they learn to celebrate the differences rather than to fear them we need to do the same in our every day lives and pull together to effectively address these very real threats you know which affect us all. but we will be taking a look at everything we do and act appropriately. >> arnold donned, we always thank you for taking the time, especially on business update days like today to share with our viewers. thank you. >> thank you. >> seema mody is very excited about the mardi gras ship and the roller coaster on the top deck we will accepted it over to mike santoli to look at the valuations of stocks versus bonds. timely. >> talk about the enter play between bond yields now going up and equity valuations. mike wilson at morgan stanley has a couple of ways of looking at this.

this is a standard way, whether there is a valuation cushion between equities and bonds based on what stocks are doing this says yes. when this is higher than this line it means stocks are less expensive versus bonds and therefore you have a little bit of a cushion very cheap in early part of the last decade. less so in 2018. still a one percentage point buffer here. the regime changes for the entire '90s stocks were expensive and still went up. but he is also looking a of the inflation expectations market based inflation has been on the rise. that usually compresses equity based valuations this isn't really a prediction for the next move in the market but it is an answer to those who say we have a lot of room yields can go much higher before equities look expensive f. inflation is to be believed it

is the ultimate determinant of whether or not you can count on the market holding these valuations >> that will be the question of twub mike, thank you. up next it is not just big public companies taking action against the president. his own business is facing blowback a look inside trump, inc., right now. a reminder watch or listen to us live or on the go on the cnbc app we'll be right back here on "closing bell. i feel like we're forgetting something.

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here's quhaes happening at this hour special stepped up security arrangements for the inauguration of joe biden will begin this wednesday instead of the day before the ceremony. homeland security secretary chad wolf says what's known as national special security event operations are needed sooner than expected due to the capitol riots and the quote evolving security landscape, end quote. wisconsin officials are taking what they call proactive cautionary measures ahead of possible protrump demonstrations including placing wood over the windows over the first floor of that state's capitol building. the state department today redesignated cuba as a sponsor of terrorism coming just days before the trump administration departs. the move appears designed to complicate any effort by joe biden to improve relations with cuba. here's an example of a large group of people working to the to do something positive with no machinery available

hundreds of villagers in india joined together to pull a truck up the side of a gorge after it fell 70 feet from a narrow road. and they did it eventually it took a while, but they did. sara, back to you. >> wow good video sue, thanks. last week's capitol hill riots are costing president trump a political price. now he's starting to pay a big price when it comes to his businesses we will share details on that when "closing bell" comes right back area homeowners

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back saying this is a breach of a binding contract and they have no right to terminate this agreement. trump's courses across the pond also getting bad news today. the operators of the british open saying they will not stage any championship at trump's turnberry course in scotland at least for the foreseeable future now this comes after jll, which had been helping trump sell the d.c. hotel announced they are, quote, not going to be involved at all in selling that hotel shopify also saying today it will no longer host trump's on line store that was for the trump orgz merchandise and generated about a million dollars in annual sales. sara >> robert frank. thank you. up next, tackling e-commerce fraud. equifax making a push into online protection with its latest acquisition, which moved the stock sharply higher we will discuss with the ceo after the break. walmart just announced it is

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welcome back wi faction making a push into e mers fraud evenings aquiring count for $640 million. equifax's ceo joins us right now

in an exclusive enter view good to have you back. the stock went up on the news friday how does it fit in with what you do, consumer credit data >> the combination of count's real scale in e-commerce and the data that they have, they will see 32 billion transactions a day a. massive scale of data combined with equifax's data address this is digital macro or on line macro that was happening precovid and has been accelerating with covid. consume remembers doing more things on their phone, on their tablet and on their computer with that comes the requirement to identify who they are and having more data, their email drais ip address, cell phone number, their ship to address, enhances the predictability of that and reduces fraud. >> is it possible that in five year's time shlg once the transition is complete in fact

people will be safer even if we are using digital devices more often than we were five or six years ago, but once the transaction is complete in fact our data will be more secure than it was rather than more exposed as it is currently >> we think so it is a reality that the world is going to digital. and operating the way we have been doing during covid. having more data around that secures that transaction for the customer and for the consumer the make sure there is no fraud for them or for the business credit card fraud last year it was $6 billion having more data around who is interacting helps minimize that. on the e customers side it is a massive amount of fraud that happens from people taking over accounts and then using someone else's name to order something and then shipping it to their address versus the individual that was really on the account

so data elements creates more signals to manage fraud through e-commerce, through banking, insurance, and across the board. >> if you look at a long term chart of your stock, mark, 2017 -- people still remember, it was one of the biggest consumer data breaches we had seen 150 million americans' personal data compromised but it is a blip on the stock chart. it has gone straight up. you are trading near a record high what is happening with the underlying business? have you managed to recover from that, and grow during this pandemic time? >> it was certainly a challenging time in 2017 i joined soon after the cyber event as you know sara and we worked on transforming the business we spend $1.5 billion over the also three years moving our technology and data to the cloud. we think it is going to be transformational in our ability to bring safety to our customers. in 2020 we haven't reported our

financial results yet but we had an analyst call in december and we are going to have the highest revenue growth in the history of equifax in 2020 you know based on the value of the data and analytics that we delivered to our customer so it's a business that has pot count really adds to that by bringing in some new data elements that will broaden our capabilities and fraud which is one of the verticals we participate in. >> mark, do the new digital banks use the data as traditional banks? are they lending on the same requirements as traditional banks would? if so, is the growth you're seeing from them faster, slower, similar to traditional banks and kind of tied to the economic cycle or not >> the big mac crow beyond digital and contactless is around more data really if you look at our industry over the last two, three, four, five years, the

addition of alternative data, more data elements really enhances the predictability of every decision the fintechs or the digital banks or credit card companies doing business are hungry for alternative data we believe and the industry does, too, is more data results in better decisions. as we bring more data elements in like a count acquisition, pay net acquisition we made in 2019, those enhance that decision and result in a better result for the consumer and for the business that's interacting with that consumer. >> mark, thanks for taking the time to talk to us about the new deal. >> thanks a lot. >> mark begor. up next, barking on the market earlierin the hour we spoke to richmond fed richard barkin. the rest of 2021 when we come back new year's resolutions come and go.

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know as we head into a new trading day. "closing bell" will be right back at fisher investments, we do things differently and other money managers don't understand why. because our way works great for us! but not for your clients. that's why we're a fiduciary, obligated to put clients first. so, what do you provide? cookie cutter portfolios? nope. we tailor portfolios to our client's needs. but you do sell investments that earn you high commissions,

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i really need to start adding "less to cart" and "more to savings." sitting on this couch so long made me want to make some changes... starting with this couch. yeah, i need a house with a different view. and this is the bank that will help you do it all. because at u.s. bank, our people are dedicated to turning your new inspiration into your next pursuit. earlier this hour we spoke with thomas barkin and got his outlook for the rest of 2021 >> you're looking at a second half that's going to be very strong and the question i think is how do we get through from

where we are today to that second half? and i will say while it might be bumpy, i think there are backstops here, in particular fiscal will be a backstop. i think elevated savings are a backstop i think the potential for more stimulus, inventories are low which is another backstop. while i see some bumpiness, i think we have some backstops here the first part of the year. >> overall, a pretty rosie outlook from tom barkin, the richmond fed chairman who does get a vote what's the fed going to do about it everyone expects the economy to be strong in the second half of the year with vaccinations he wouldn't go there on whether this year was a factor or not unlike the vice chair who said we're not going to do that this year that is going to be, i think, one of the biggest questions for the fed and the markets which is

it's going to be so strong the fed is going to have to take its foot off the gas pedal. >> i would say to his point, when it came to inflation he suggested things would filter through over the course of a couple of years as opposed to immediately. took that as suggests they don't need to take off the pressure. either way, it's picked up a lot over the course of the last week or so. i did think of all of the stocks that bounced in today, the cyclical names of banks and energy was clearly the most pronounced today. >> without a doubt people feel as if they need to add exposure in those areas. you know, i agree that it was a relatively rosie outlook you might quibble with the construction of secretary half to me the market is geared up for something that's an acceleration that starts before that i'm not saying he's that precise about his outlook. to me the market feels like in the springtime we're going to see a lot of that pent-up

demand, built-up savings start to be unleashed. i agree the fed does not agree to budge whatsoever. it's whether the market tends to over anticipate the fed's incremental tightening moves, not whether it responds. >> ten-year ending at 1.45 s&p down 2/3 of 1% that's it for closing bell "fast money" starts right now. i'm melissa lee and this is "fast money. tonight's trader lineup. tonight on "fast," the record rally taking a breather. the banks kick things off at the end of the week. we'll break down the key things you need to watch. plus, a crypto crash bitcoin falling 13% today. one analyst has a way to play it he said this payment stock will thrive even if bitcoin continues to dive. we'll bring you that name. the chair woman is taking the mound to pitch her next best name we start off w