glitchy video calls with regional offices? yeah, that's my thing. with at&t business, you do the things you love. our people and network will help do the things you don't. let's take care of business. at&t. welcome to "power lunch. i'm morgan brennan and josh brown will be joining us operation warp speed unleashes entire supply of doses and the cdc lowers age requirement to get more shots in more arms.

we've got more on that big story in a moment. twitter and facebook purnlipurnging more accounts from platforms after the siege. former fcc commissioner robert mcdowell to see if more regulations are coming and what they could or should look like later, a big week for ipos petco to posh mark this week's largest debuts we start with a shift happening in the market and dominic chu has more on that for us. >> i do, morgan. look at what's happening right now with one key trend we've been seeing over the course of the last several months and that is the outperformance of small cap stocks and the transportation stocks on this idea that we have optimism surrounding the vaccines for covid-19 and the economy perhaps getting more traction in 2021. the transports and the small caps tracked, you can see fairly closely throughout the course of the last 12 months the small caps were

underperforming in the fall and now you can see here have now regained some leadership position with that, so we're watching to see if the small caps continue the uptrend and the outperformance over the s&p 500 and the nasdaq composite in the last three months. one of the big drivers of that is the interest rate complex here's the reason why. look at these particular yields. two year yes has been anchored well around 13 to 15 basis points however, the 10 year note yield and the 30 yearlong bond yield both at the highest levels we've seen since march and that has led to, check this out, a bigger difference between short and long-term rates. that's important for many financial institutions, especially banks the so-called yield curve, the difference between the two year in treasury yield and the 10 year treasury yield is now here at the highest level since the middle of 2017 and what is that all mean the banks are doing really well. check this out the outperformance of the bank etfs and the financial etfs has been notable

the bank etf ticker kre is, by the way, at the highest level in a year up 3% over the course of that one year span and then up 2% for the financials overall but it's this real outperformance in just the last three months morgan, josh, that's been massive. that's something to watch in the coming months. interest rates and those banks we'll send back over to you. >> kicking off later this week look for some comments on that front too. dom chu, thank you josh, it feels like a good place to start the hour, right i mean, reflags nation higher rates transports, small caps, record highs. >> dominic is right. this is the biggest story in the market the last week to week and a half and what you're seeing here in addition to the charts he just showed us, the breakeven rate on the 10 year inflation expectation. that's now at the highest level of march of '18. think back to march when stocks were bottoming on the 23rd, 24th, 25th uncertainty whether or not, can

they really bottom bonds don't believe in the recovery and we hear thit is smr than the stock market. it's nonsense on stilts. it got it right early. the bond market is getting back to where it was in march of 2020 it took the bond market nine months to realize what stock market investors have realized which is that this is a natural disaster-driven recession and it's not something bigger than that and the response is bigger than anything we've ever done. you combine those two things, the bond market was wrong. the bond kings who are on the air were wrong, the stock market got it right. >> yeah, to that point, it's been interesting some of the inflation commentary we've gotten from fed officials. two more just today. non-voting members today but commentary about that given as you mentioned, we're talking about a pandemic and we are talking about just an incredible tidal wave of stimulus. >> that will be the next wall of worry and we'll climb it but the next thing will be oh no, there's inflation. after ten years of trying to

will inflation into existence, now we're going to hear that's a problem that people are seeing jobs come back and raises in their salary that will be the next la menation, but i think stock market investors will get past that >> raises in the salary would not be a bad thing for sure. >> to some >> yeah. cdc expanding guidelines for the covid-19 vaccine opening up to ages of 65 and 75. meg tirrell has more on that and what it could mean for the vaccine rollout. meg? >> we're already starting to set people 75 plus became eligible for the vaccine and today now, governor andrew cuomo said making four changes in terms of how the vaccine rollout should go one, expanding to more groups. people over 65 and those with co-morbidities with some form of documentation set by the governors. also, encouraging states to

expand the channels for vaccinations, where people can get help with that a third one that's really key is releasing the entire supply of vaccine doses right now and not holding the second doses back in reserve anymore. that's something that the biden team said they wanted to do and now the trump team says they are going to start doing that as well fourth is that in two weeks, they say they're going to change the way the federal government allocates vaccine to states to now be based on the number of people in the states over age 65 and also how much of the vaccines are reported to be used in those states. encouraging states to both improve the use of the vaccines and also their reporting of the use of the vaccines. however, two weeks from now, we'll have a different administration it's not clear how they're going to do things in terms of the getting more doses out there and not holding any back, that puts more pressure on the supply chain to ensure they can keep delivering and will have the second doses

pfizer's ceo on "squawk box" saying he's confident in the manufacturing pace and capacity they're doing right now. here's what he said about that. >> we will increase dramatically our production for this year up to 2 billion doses and feel comfortable we'll be able to deliver that that was the result of multiple steps that we took, but this is where we are right now so i feel very comfortable but the context that we have, we would be able to deliver >> reporter: so saying up from 1.3 billion saying with their manufacturing has been able to do is along the same miraculous lines of what their research and development team was getting their vaccine to market so quickly. morgan >> it's pretty incredible to hear these numbers meg tirrell, thank you for more on who's in line right now to receive their shots, nbc news medical correspondent dr. john torres. thank you for being with us

today. >> you bet >> just to pick up on what meg just said there at the end, i mean, this is essentially unprecedented in terms of this vaccine rollout from development to production. now as we go through distribution and i realize there's some hiccups on that front as well but no one has ever really run a vaccine campaign at this scale, at this size this quickly. given some of these changes now in terms of cdc guidelines, the fact that the supplies are being released on a bigger broader scale, how confident are you that we're going to see some of the bottlenecks ease >> morgan, i think we see these ease up as the weeks go on and what a lot of experts are saying including dr. fauci is that the initial rollout happened over the holiday season and so that was a big issue behind why there were so many problems because a lot of people simply weren't working during that time period but now that we're out of that holiday season and we have a better understanding of how this rollout should go and needs to go, we'll have a better understanding of what needs to be done to do that and they're

starting to put different things in place like meg mentioned. look at distributing it differently in states depending how much they're using it. in other words, getting it into the hands of people actually getting it into the arms of people that actually need the vaccine and so i'm confident over the next couple of weeks, you'll see huge changes. a lot more masked events as eve drop the age and people getting it to the most vulnerable first and getting to everybody i'm very optimistic we're going to see this happen very quickly. >> was it a mistake to prioritize people 75 and older given the fact that most 75 years old do not have much contact with many people whereas an alternative approach would have been, look, of course, we want to minimize the risk of death but why not focus on people more likely to spread it and arguably, those people are easier to get to and give it to. you can do it right in the workplace. is that something in the medical

community? >> it is, and it's something i talked to a couple of experts last week about. they said they knew when they get the first phase, the health care workers, they were essentially, they could go to the hospitals and give the vaccines and they would send out emails and people could get their vaccines because that's where they were. they knew it would be 70 plus and now is your time to get the vaccine because a lot of them simply don't have emails or pay attention to the emails. a good way to get a hold of them they knew it would be a difficult thing and what we learned over the last couple of weeks, we need to get through the bottlenecks and open up the distribution to more to get it quicker at the same time we work on those that were having difficulty getting to and finally stabilizing on right now and that is what you'll see over the next few weeks happening open up the distribution they'll get it to more people, get shots in arms more because as a lot of people said, myself included, that vaccine in the

refrigerator and freezer isn't doing anybody any good it needs to be in somebody's arm. >> dr. torres, i wondered, just focus on another demographic and that's children. moderna said they've begun testing the vaccine on adolescents young as 12, but in terms of that process and those studies and when we could potentially see data and a rollout to younger people and children, what do you expect i would assume that there's going to be a lot more checks and balances around that process. >> there are going to be definitely a lot more checks and balances because when it comes to children, we want to be extra careful to make sure it's safe and usually do it on adults, which we've done and then lowering the age and right now, pfizer and moderna say we look at 12 and above. pfizer's 16 and above but look at 12 and above. the difficulty comes in the 1 to 11 years old and what's happening now, moderna in operation warp speed and novavax said novavax is having a hard

time recruiting these adolesc t adolescen adolescents. only around 800 a day. that's moderna, 800 a day. compare to novavax, getting 8,000 adults a day so it's very hard for them to recruit these numbers of adolescents and going forward, probably delayed into 2022 before they get it and hope the 12 and above get it by this summertime when they get back to school in the fall and protected as well as their families. >> dr. john torres thank you for breaking down the latest developments with us. we appreciate it >> you bet coming up, facebook and twitter purging thousands of accounts on their plat forms after the capitol chaos. will the bold moves bring more regulation that's been under pressure the last couple of days. we're going to speak to former fcc commissioner robert mcdowell about this and plus, netflix throwing down the gauntlet in the streaming wars, promising at least one new movie every week this year.

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more than 70,000 accounts associated with qanon and removed content related to stop the steal. did they wait too long and is more regulation for big tech ahead? those are a few questions to break down here for "power lunch" exclusive. robert mcdowell, former commissioner of the fcc. thank you for being with us today. >> thank you for having me. >> specifically, i want to hone in on section 230. that's been the debate topic around these platforms for quite a number of years and this discussion about the possibility of regulation. it's certainly the calls have gotten louder now here on the heels of everything we've seen in the past week, but if you actually were to just fully revoke section 230, you're essentially, i think, green lighting these companies to more widely police the content on their site than is already taking place right now so it almost seems like rather than revocation, it needs to be reform does it happen what could it look like? >> it could happen you know, the tragic horrible

events from last week could increase the odds of some congressional legislation. before that, you had across the political spectrum to ted cruz and candidate joe biden even earlier last year all calling for either scrapping the 230 liability shield or reforming it and now i think we are seeing more energy behind that concept. it's really tricky though. i would caution folks to make sure they don't make decisions in the heat of the moment, be thoughtful and deliver it because this is a very complex issue. there's a lot of variables at play here. i don't think my old agency, the fcc, is going to lead the charge on this for a number of reasons. the trump executive order from last may 28th directing the department of commerce for rule-making at the fcc at this issue and the fcc chairman, the current chairman, just said late last week, would not be pursuing anything before next week. and two democratic

commissioners, jessica and jeffrey starks have both said that they do not agree with that initiative that could change if on a bipartisan basis especially from the democratic side of the aisle if the fcc gets some pressure to try to do recalule making under section 230. anniversary of the telecommunications act of 1990s signing by bill clinton was last week there's a whole debate regarding whether the fcc has rule-making authority under to do more rules, issue more rules under section 230 or is that really the role for congress with the fcc effectively be legislating if it tried to interpret good faith content moderation and otherwise objectionable, a lot of key phrases in section 230. so we'll see but there does seem to be a lot of energy behind doing something on a bipartisan basis and so therefore, pay attention. >> commissioner, this is not about one group thinks or

believes in, this is not about one group believes in prayer in school and the other group doesn't. this is literally criminal activity, inciting, organizing and promoting riots and mob violence why would this be an fcc issue it seems like it would be law enforcement and i guess as an extension of that, is facebook a publisher or is it not and why do they get to play both sides why do they get to tell one group we're a publisher and then tell lawmakers they aren't when that looks like it will be an opportunity for them at a given hearing? what is the right answer from your experience and your breadth of knowledge in this field >> a lot of great questions there all rolled into one. forgive me if i don't hit on all of the question but that's part of the great riddle of section 230 and sort of the folks at home, are you a publisher like a newspaper or cable channel like cnbc, therefore you have

editorial discretion to reject or accept different content that others like myself may want to put on your channel or are you more like a newsstand where you're selling different publications by others but you're not liable for any illegal content. >> which do you think they are >> yeah, so section 230 says they're a hybrid so they're allowed a lot of the editorial discretion there's this sort of otherwise objectionable wording that the justice department just last fall was trying to figure out, how do we narrow that and so it's difficult when you have asked for third party content to be posted to your web site, and might not be the usual suspects, social media platforms everyone was talking about. it could be consumer reviews of retailer or local broadcasters when people comment on news stories and things of that nature so they're all protected by liability of section 230 which, of course, led to a tremendous

american economic success which is the growth of the internet space. so i do caution folks to be careful and reasonable and thoughtful before trading here it's not simple as they're treated as a news channel when it's the whole idea, the whole business idea is to allow others to post to your site, third parties. so should be liable for that or have the lines of a notice and take that? the digital millennium copyright act which with proper notice, can take down copyright infringement con tent. that's a model two pieces of legislation were introduced last year on section 230. so how will it sort out remains to be seen but i think the odds after last week, it's increasing that something will happen. >> it certainly would seem investors are right there in that camp with you robert mcdowell, thank you for breaking down a complex topic for us i'm sure we are not done talking

about it. >> looking forward to talking you again about it later still ahead, companies roll back political donations general motors charges up and netflix's new plan to make sure you are still watching that's all coming up on today's power rundown after this quick break. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪ that came from me. really. my first idea was "in one quarter of an hour, your savings will tower... over you. figuratively speaking." but that's not catchy, is it? that's not going to swim about in your brain.

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it's time for today's power rundown where josh and i go through some of the satisfactto the day you absolutely need to know and the first we start with is general motors. unveiling an all electric van as part of the new business unit called bright drop with the first 500 vans going to fedex beginning this year. mary joining earlier with more on their plan for evs. >> both commercial vehicles and personally owned vehicles are going to be very important over the next couple of years as there's more vehicles out, which as you know, we plan to have 30 electric vehicles out by 2025 that's going to give customers a lot of choice and then, of course, from a moving goods, i thinkthere's a huge opportunit to disrupt the way packages move today with electric vehicles >> i mean, this is fascinating to me, josh. it's perhaps no surprise that we have seen not only gm but other

established automakers and some of the new upstarts that are going public through spaks and the like $850 billion market for parcel food delivery and reverse logistics by 2025. >> the last mile is going to be really credible and if you can own that or a big piece of it, there's a lot of profitability to be found there and i think that's what you're seeing, you're seeing companies like gm, first of all, by the way, i'm a shareholder. i bought it on the breakout from the high 30s i'm still in it. i like this better than any of the other ev stocks because i think i have a bigger margin of safety here and a lot of different ways to win. the critical two things that mary barra is doing right now, great job communicating with growth investors she's rocking leather jackets every public appearance. >> i noticed that too. >> i wouldn't hate if there were a nose ring involved, just saying, but more important than that, throwing around big numbers, talking about spending $27 billion plus over the next

five years and she rejected wall street's call to do a spinoff of the electric and the battery she's keeping it all in house and transforming the company instead. mary barra knows exactly what her road map is. a little bit of a misstep with the clown from the cola, but other than that, i'm happy to be a shareholder here i think this is going to be a transformed company by the middle part of this decade >> i think she actually talked to her, addressed the stuff as well in the interview. the only thing not getting attention, fascinating to me, personal mobility, that cadillac is going to be launching landing aircraft. >> i dare you get into one of those. >> i would 100% get into one of those. sure i'm going to get into that. >> flying cadillac. >> with uber and they already exited the business but now gm, cadillac. >> i don't know.

they have a lot of cool stuff coming out i'm a big fan of what she's doing. >> stocks at record highs today too. netflix taking on hollywood in a big way. plans to release a new movie every single week in 2021 and the streaming giant dropped a trailer showing off stars like ryan reynolds, gado, i think i'm saying her name right, dwayne "the rock" johnson and 70 planned movie releases for 2021. what do you think? we talked about the content wars. >> i watched, what are they call it, sizzle reel. i was like, okay, okay like the rock. ryan reynolds. i don't know one thing though i would say is, what's interesting is what's going on with at&t because hbo max is not getting the same reception that netflix's slate is getting that stock is going to take a new low probably this week so i think netflix, the ball is still in their court

they could still win 2021. i don't know that. the other streaming services are making that much of an impact yet. >> i don't know. i'm still getting through cobra kai myself love that show political giving after the capitol hill riots companies including google, microsoft, jp morgan and target halting contributions the all political groups as a result of last week's violence while others like amazon, airbnb, ge, and comcast halting contributions to those encouraging violence and disrupting the electoral process. this is really, the opinions and the actual politics of it aside, this is fascinating to me because i think in the midst of a broader, bigger broader esg movement that's afoot, the fact you had a shift in mission from the round table to be more focused on all stake holders, perhaps the timing of seeing more public stances taken like

this is not surprising. >> i have to tell you, i have no respect, we're going to hold all political donations until people forget and stop asking us. i have a lot of respect for that second wall. put that back up mastercard, morgan stanley the companies specifically saying, if you were part of inciting a riot in our nation's capitol that led to five people being killed or dying, we are not cutting checks to your pac, you, your campaign i have a lot of respect for that stance this is not partisanship this is not republican versus democrat if you were among the irresponsible politicians propagating lies and inciting violence, i don't think that your shareholders want you cutting checks to those people and your employees certainly don't. so i think the companies on the second wall deserve a lot of credit for what they're doing. they're taking a pro-american, pro-public safety stance and that's what they should be doing. >> definitely injects the private sector and the role of the ceo more into the spotlight

around issues like this. >> if we say corporations are people, united does, let's be human beings and say we're not down with this, right? so i think some of these companies are doing that. >> all right ahead on "power lunch," a huge week for ipos we'll lay out the key names you need to watch and later, one under the radar indicator that could point to big gains ahead for peloton's stock. we're going to be right back with a bang, energy and change came to every part of our universe. seismic or small, it continues. change is all around us.

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welcome back, everybody. i'm sue herera here's your cnbc covid update at this hour. dr. anthony fauci said today the government is expanding its recommendations on who should be eligible for the covid vaccine because it was initially too rigid with its categorizations making the process less efficient. >> right now, we're not going to abandon the prioritization but when people are ready to get vaccinated, we're going to move right on to the next level so that there are not vaccine doses that are sitting in a freezer or refrigerator where they could be getting into people's arms. >> here's an example of that

inefficiency hundreds of senior citizens lined up in their cars starting ten hours before a first come first serve drive-through vaccination site was scheduled to open. some were ultimately turned away a half hour before opening when that site reached its 500 dose capacity brazilian researchers now say china's vaccine is about 50% effective. initially said it was 78% effective. royal caribbean extending royal suspension of cruises through the end of april due to the coronavirus. you are up to date, guys, i'll send it back to you. nice to see you, by the way. >> so nice to see you, sue, as always i want to talk about the faang stocks by the way. the prevailing narrative about the bull market, primarily bed by 5 to 10 and if they stopped

rallying, we would be in big trouble and most things that become popular narratives turn out to be completely false this red line is not apple, facebook, microsoft, ach l appld google it's the iwm substantial of 44% versus 7% which is below the s&p 500 for those faang stocks and that's just indicative when we get these ideas what's driving the market, how easily that kind of thing can shift and change and before you know it, you're in an entirely different type of environment. i want to go to one of these faang mag names in particular. this is netflix. we'll focus on this purple line, 200 day moving average looks like we're coming to something of a decision point here netflix has been consolidated along with the rest of the large cap tech names

haven't been able to make much headway, hasn't quite broken down either. this level is about 465 where the lines cross and possibly if we do get a breakdown below that level, which is 200 day moving average minus about 10 points from here, that could be a moment where the bears take control but bigger picture, ignore the purple line, you're still in an uptrend and i would really wait for that level before taking action netflix still has a lot of ways to win here if your long consolidation periods are not that rare when it comes to these type of stocks that go through five, ten, 15 year up trends they have these consolidation periods that are healthy but i think that's an area where the rubber might meet the road and that's what other people should be watching and you should too. >> they're raising their prices and too with a movie we were just talking about, a movie a week being released, certainly seems like there is stickiness to be had there. i would to go back to the faang

mag there. underperformance or lackluster performance. >> they're running in place. >> bullish you see that as bullish given the fact it's been more? >> i think that's not bullish necessarily for the faang mag stocks i think that's wildly bullish for the secular bull market we've been in since spring of 2013 these were the stocks that led us almost all the way here they stopped rallying. some of them are even in down trends but they've become unnecessary because of the rotation we're now seeing into industrials, health care, the home builders have been going for a long time. now you're getting participation from retail. material stocks. if you're a bull and you look to stay constructive overall, this is exactly what you want to see. you want to see that handoff without a lot of carnage having to take place first. if he has stocks come back, that's great we really don't need them right now and that's tremendous. >> yeah. all right. good breakdown there

ipo mania, in the meantime, from last year, leading into 2021, several new offerings due out this week. leslie picker is joining us now with a look at those numbers and what we can expect leslie >> hey, morgan we're not seeing the typical early january respite this year with several large ipos in what could prove to be one of the busiest weeks all year about $4 billion worth of issuance is expected to hit the market over next three days alone. firm is kicking off tomorrow by posh mark and parent company of petco and by friday, you'll see trading in online gaming company and driven brands and i haven't even mentioned the half a dozen spaks also listing this week so far, the heightened demand from 2020 does appear to be carrying over to this year affirm for the high end of the range and above according to a source familiar with the matter.

the aftermarket performance could also impact the demand for the very full pipeline of ipos that are waiting in the wings. just yesterday, compass, the real estate platform announced its confidential filing. cnbc reported that oakley is preparing to go public as well and a direct deal model that should come recently tyly soon and other companies like roben hood on the horizon. no sense it will slow down anytime soon. >> thank you going to keep you busy this week josh, your take on the ipo market right now >> i think one of the things that's most interesting about the ipo market this year is that we haven't got to the point where we've had enough there's still appetite for big deals. airbnb just being the latest example. i think that's what you want to watch. get a sense of when have we gotten to the point where it's too much risk appetite and there's too much demand and things have to break well, let the prices tell you.

that hasn't quite happened yet i think we still have time before we get into that area, but we've been working our way up there as quickly as we seem to be able to. probably not that far off. >> to that point, we're seeing secondary offerings announced by zoom zoom's up today. i think up something like 3% right now. lemonade, similar story, although that stock under pressure but my gosh, the run we've seen in that name and even with some of the recent lock-up expirations we've seen snowflake and lemonade come to mind stocks held pretty steady in the midst of those expirations >> yeah, and i think what's important to point out there is that many of these companies that we're citing started out their lives as public companies with a low float so these were companies that only a sliver of the available shares became public to begin with which enabled the first day pops and those high share prices relative to the ipo price.

and so even when you do drop a spot secondary, it's not that big of a surprise and it really doesn't wreak that much havoc because even with that secondary, it still remains relatively small float versus some of the larger tech giants that we talked about previously. so i think they can hang high here >> some good context there stocks soared last week. energy sunk, but this is a new year up 14% january 4th. >> is there more room to run >> is there? >> i don't know, we'll have to wait and find out. >> let's find out after the break. >> see you in a bit.

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welcome back to "power lunch. from last year's worst to this year's best energy taking the lead as the top sector so far in the new year up around 14.5% since january 1st. is this rally sustainable? joined by mark teper of strategic wealth partners and christina of chantico global and good afternoon to you both mark, i'll start with you. is it sustainable? >> this is a very tricky sector. morgan, in my opinion, i think this is no longer a buy and hold sector it's more of a trade i don't care what time frame you use. the energy sector has been underperforming the s&p over any of the time frames by double digits annualized, right you'll likely continue to see a shift away from traditional energy towards clean energy but here's the opportunity oil has found support. unfortunately, it's because of a reduction in supply rather than an increase in demand. oil is down about 3% now year over year whereas energy stocks

are down about 30% year over year, so there's definitely the possibility to catch up. my favorite play here is diamond back it's a pure play on the permian. down 30% year over year. they're a low-cost producer. they're one of the few companies that can actually make money if oil were to drop back down to the $30 to $40 range and got a pretty decent dividend as well. >> i want to get your thoughts on this. >> so if you look at kind of where we are in terms of oil demand, oil demand in terms of barrels per day averaged about 100 billion precovid and after covid, fell to 92 billion. so the estimates are that we'll probably recoup two-thirds of the demand and that's good except that we went into covid with already a massive inventory of excess supply of oil and during covid, guess what those inventories grew it is going to take us about a year to burn off the excess supply we have sitting in

inventory before we can see support to oil prices. and so while i think that the moves in oil prices right now are based on the expectation that we're going to see demand grow but not taking into account we've got a lot of oil to work through before we're running any kind of a shortage so prices are probably going to be somewhat soft and the long-term trend as mark said, that trend has been down we have seen technological innovation in oil that's been driving down prices for a decade so i think it's a challenge. i think the rotation into clean energy is probably the play for the next many years. >> so then does that mean to put a fine point on it, you would steer clear of the energy stocks, gina >> i do. yes. >> all right we're going to leave it there. gina and mark, thank you for joining me for more "trading fact" follow us on twitter at @tradingnation. peloton up but did anyone who wanted one buy one looking at the data. stay with us

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peloton was one of the hottest stay-at-home stocks of 2020 it is more than 400% in the past year kit keep going diana owe election mass exclusive day that may have the answer >> josh, i'm calling this the shipping container indicator we've got exclusive numbers from import genius showing the number of shipping containers with peloton equipment coming into the u.s. ports in both november and december was up over 400% year over year this includes bikes, treadmills, shoes, yoga mats, and apparel. according to peloton's last shareholder sales were up over

100% in fiscal q 1 we know they were having trouble keeping up with demand in the summer into the fall some of this is backlog but they are reporting they are up 114% year over year for the january quarter and 100% for the march quarter. are they front loading in anticipation of strong demand as well i talked to the folks at peloton. they said they couldn't comment on the data but didn't refute it. >> you know how i feel about freight and high frequency data points tied to freight. >> it was for you, mogan all for you. >> i think this is really fascinating. i guess one of the things i wonder because you follow the fitness industry so closely is how it does speak to how peloton fits in with all of these other competitors right now, especially competitors like

brick and mortar gyms that are also offering their own on line services. >> there is a lot of on line streaming content out there, no question so much this year than ever before but we appear to be holding their own in this space. as we see gyms reopening and when the vaccine gets distributed you may see some of that move back to the gym. but a lot of the surveys say most people, while they will go back to the gym they are going to continue to also work at home as well. they are going to keep some of that share of the at-home fittanness market. but maybe they will introduce something new in the coming year, another piece of equipment we can play on you never know with them. >> i think people that made that dollar commitment, $2,000, $3,000 to buy the equipment they will keep pieing the $10 a month. because what do you do if you don't? because then it is literally that you have accepted defeat?

i don't know we have one in the basement right now. >> you might sell it wall street cares about the arr, annual recurring revenue i think they will be fine. i think it is a great company. but a great company and a great stock are not always sin on nows the market cap on revenue it is outrageous there hasn't ever been a good publicly traded fitness top. doesn't work out i am not long peloton. i missed it the whole way up so take my opinion with a grain of salt i can't imagine them ever having as good a quarter as the christmas quarter from 2020 which we will get results from i think it is the high water mark for the company maybe forever stars growth rate? we will have to see what they say as far as earnings. >> if you see millions of these

bikes for sale over the summer, like, even if they still have great revenue and earnings, the bears are going to seize on that i think it is going to be a harder year to be in peloton than last year was. >> the dow is bouncing between positive and negative territory all day. it is hugging the flat line. >> make a decision >> well get you set for the final hour of trading and look at one group that is outperforming today. stay tuned for that. 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

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markets are largely hugging the flat line here with both the dow and the s&p fluctuating between gains and losses but in an extremely narrow range. the outperformers we have already talked about today josh has been the russell 2000. the small caps, up 1.5% again. >> i also think you have an interesting undercurrent where it is like a tug-of-war for the top of the charts between the reopen stocks and the stay-at-home stocks. etsy is the pest performer in the s&p, up about $25 a share. but then nipping at its heels, names like uber. you have got shake shack, two stocks that i own that clearly are relying on the reopen to reach their full potential so there is a lot to love for everyone big day for energy names, big day for consumer games like gap, under armour, stocks that have been left out for a long time. when you see this level of breadth across all these sectors, especially consumer related sectors i feel like the

tone of the tape even though we are not decidedly green is darn good. >> it is not just consumer related either some of the stocks that hit fresh highs today have been industrial names, deere, carrier, fastenal. going back to shake shack, how does that speak to the fact we have been seeing positive preannouncemen preannouncements. >> it is a company that needed to good to see it. >> i guess we will celebrate with a burger. thanks for watching "power lunch. "closing bell" starts right now. >> thank you morgan and josh welcome, everyone, to "closing bell." i'm sara eisen with wilfred frost as always. major indices mostly flat but sharp moves within individual sectors. the russel is surging up more than 1%. what's driving the act the house moving forward on impeachment plans. the white house announcing plans to accelerate vaccine delivery in stocks, tesla snapping back