. it is 5:00 a.m. at cnbc global headquarters and here are your top five at five. we begin with the stage being set for the second impeachment of president trump as he faces further crack down from the tech sector we're live in washington with the very latest. then we turn to the increasing political tensions in washington ushering in a wave of caution among investor, and stocks find themselves in a bit of a holding pattern. and a developing authority as one of the top officials in the federal push for a coronavirus vaccine is now announcing his exit. and president-elect biden

apparently tapping a very familiar name among the financial sector to lead the s.e.c., and we're set to get our first major ipo of 2021 as the strong momentum of public offerings keeps rolling and rolling into the new year. it is wednesday, january 13th, and you are watching "worldwide exchange" right here on cnbc ♪ ♪ and a good morning, i am frank holland in for brian sullivan, here's how your money and global markets are setting up their day. we begin with stock futures. slightly higher, pretty much flat, this after stocks finished flat yesterday as traders increasingly find themselves in a bit of a holding pattern they remain lower for the week after monday's slide financials, they were the big winner yesterday amid rising rates with goldman sachs climbing 3%. jp morgan, and bank of america climbing 1 1/2% along with

charles schwab which hit an all time high. speaking of rates, let's look at treasuries, the benchmark ten-year yield is hovering at 1.127%, close to its ten-month high, which is the pre-pandemic highs, and continuing, we're keeping a close watch on bitcoin, and whip saw action it's crazy in recently days. look at this chart right here. it's now holding in the 34 to $35,000 range as of late right now, you see it's up about 4 1/4%, volatile to say the least, let's go worldwide now with julianna tatelbaum in our london newsroom with a look at the early trade in europe. hey there. >> frank, good morning well, it's a similar picture here in europe to what you're seeing in u.s. futures after a sluggish started we've got some positive momentum building and now every major market is trading slightly higher on the day, but overall, the magnitude of the moves is fairly contained

the french market is out in front, up about 0.4% the spanish market holding up well, up 1/3 of a percent. the laggard, the swiss market, hovering around the flat line. yesterday we saw strong demand for the cyclical parts of the market, a little bit of a retreat in profit taking of the names. two stocks i want to highlight in particular. here's a look at carre four, and french canadian super market, k couche-tard, that is one stock i want to highlight. the other stock is telefonica, these shares up again nearly 10%. the spanish telecom firm telefonica has sold its mobile phone business in latin america to infrastructure operator, american towers to 7.7 billion

euros in cash. a lot of deal news for you this morning. overall european markets edging higher. >> did you say mobile instead of mobile you have been in europe quite a while. >> i'm confused now, frank. >> mobile, you're from new jersey, aren't you >> i'm from boston, so not far >> not far thank you very much. sorry to critique your accent. now to the latest shake up in the federal government's covid-19 response. bertha coombs has much on that and the morning's other top stories. good morning, bertha. >> good morning, frank, always picking on us boston girls operation warp speed chief adviser, dr. moncef slaoui has admitted his resignation his exit came at the request of the incoming biden administration sources say slaoui would stay on in his role for a month to help with the transition. it's not clear who will take over that role the first big ipo of 2021 set to

begin trading today. firm holdings pricing its stock offering above expectations at $49 per share raising $1.2 billion the installment loan provider as a result will have a market value of nearly $12 billion during its debut, and is the first of several companies to go public this week after what was a hot 2020 for ipos. shares of urban outfitters, however, getting hammered in the premarket after the apparel retailer reported disappointing holiday sales. the company also announcing current ceo trish donnelly will be leaving at the end of the month. urban outfitters naming sheila harrington, current ceo of the free people brand as the new ceo. urban outfitters, their stores, they're the kind of places where you want to go and wander and discover, and that's hard to do in this environment. >> very interesting. i'm 6'4", i'm a little tall for their clothes. i haven't been in unone of their

stores for quite a bit investors reacting to the c suite, thanks a lot. now to washington as the house prepares to vote on a second impeachment hearing nbc's tracie potts, she's in washington with the very latest on that. good morning, tracie. >> reporter: good morning, the argument that the 25th amendment should be used to remove the president went nowhere, a lot of debate last night. it was approved in the house but in the middle of the debate, vice president pence sent a letter saying he doesn't think it's the best thing for the nation that opens the door for what is happening today. the first time in america that we have seen a president impeached twice, and it's likely to happen. we now know the nine democrats kwho who will lead the charge for impeachment, the charge that the president incited the riot on capitol hill the president now responding calling it quote absolutely ridiculous that what he said in that rally just before thousands of people marched to the capitol had anything to do with the riot

that ensued. as the president put it, people don't think i said anything wrong but he will be charged today with democrats and now five republicans who have come out publicly saying they will vote yes for impeachment the time line here is we're expecting two hours of debate, and the final vote likely in the afternoon. the big question becomes what happens with impeachment it's a charge, an accusation by the u.s. congress but it's the senate that holds the trial. "the new york times" reporting that mitch mcconnell, top republican in the senate, privately is backing impeachment but he wants to get the president out of the party the big question is will he bring the senate back early to hold trial before joe biden is sworn in frank. >> hey there, tracie i also saw that report very interesting turn and development in the whole situation. i also saw previous reports that senator mcconnell said that they

wouldn't even begin these impeachment proceedings until january 19th is that still the same time line >> january 19th is when the senate is supposed to come back. now he's getting pressure to bring the senate back early to try to do this, or at least get it started before inauguration you know, a lot of things are coming to a head at once here in washington this impeachment, this historic impeachment, whether or not they'll try to squeeze in at least the beginnings of a trial before inauguration, which of course with th creeping in to cb the rally for the stocks, the outlook longer term, ben evans is the managing director at medially global advisers, ben, thanks for being here. >> thanks for having us. >> ben, let's just begin with what we're seeing today. yesterday the stocks, they ended

flat the futures are pretty much flat today. slightly higher. we're seeing the dollar bounce and bond yields move higher. what does that all signal to you? >> it signals that the outlook remains firm for markets what you saw yesterday if you look inside the index, it was energy, it was materials, the banks, those are all up 1 1/2%, and actually spilling over the european session today, too, so there's an expectation of yes, there's a worsening pandemic but there's also a vaccine rollout that will accelerate, so the confluence is going to lead to a point where we're going to get a full reopening of the european economy. that's what i think markets are anticipating and why the strength of the markets will remain despite some of the political uncertainties, for example, we're witnessing in d.c. >> we're seeing some of the indices showing some all time transports at all time highs, but those in particular are tied

to the reopening, the dow transports benefitting from some of the work-from-home play, with ecommerce, what do you say taking over until wef what's happening in the transport and low gistics sector in particular, because it's a supply chain we're drawing on to get the vaccine out there, to get it distributed, i think that sector will be leading right behind it will be the banks, will be the leisure and hospitality. i think this is the transition we're making transports first, and then banks will take over by the second

quarter. >> you sent us notes you had an interesting theory about bitcoin actually being tied to the recovery, not only tied to it but influencing it. can you kind of explain that for us >> it's an interesting development. bitcoin really is in its own world. now we see a bit of a correlation between bitcoin and the financial conditions index, equity and bonds and commodities, and i found that notable because nowadays it's always money getting into bitcoin and viewing as an alternative asset class, and taking a portfolio position is that reason, influential on the markets and the pandemic has shown that the digital services and demand for digital, you know, servicest, too, plays a role, and therefore the volatility we're seeing in bitcoin, which will remain high, i think, could affect markets,

and we saw that at the start, for example. >> before i let you go, you mentioned digital disruption is one of the biggest themes in the 2021 market, and 2021 economy. can you talk some sectors and some stocks that are going to be beneficiaries of that trend? >> yeah, i think it's particularly ecommerce sector, frank. that's where, you know, ecommerce was something like 10% or so of gdp latest estimates more like 20, 25%. there's a whole range you think of internet companies, when you think about anybody who uses ecommerce, i think, as a big deal going forward, in addition, like digital in itself, all companies have to use now digital platforms to get their customers to their products so i think that, too, will be an important driver for markets it's like a secular team and lastly it's of course just the pandemic affecting the way we work, you know, so the stay-at-home trend wills not

dec necessarily disappear. >> ben eemons, thank you very much thoughts about bitcoin we appreciate it. taking delivery out of the ordering equation. plus visa banning in it efforts to take over a start up amid antitrust pressures. and the editor and chief breaks down the top concern in the markets and where investors are putting their money. a very busy hour still ahead tus. "worldwe chge idexan" rern

today's big number, 1 $188.2 billion that's how much shoppers spent online during the 2020 holiday season up over 32% from the prior year according to adobe analytics >> welcome back, people buying online and going to the retailer to get it. those type of transactions, they more than doubled in 2020, call it click and collect or bopus, buy online and pick up in store. it's been the biggest driver for ecommerce market share according to a new report. they share the data exclusively with cnbc. it shows the big four click and collect retailers, walmart, home depot, best buy and target they saw numbers double. the result, a 3% gain in market share. that translates into roughly

$23 billion more in revenue in 2021 if you extrapolate based on those 2020 ecommerce numbers e marketer is forecasting big box stores making more gains, coming mostly from mall-based retailers. >> click and clak inside of a mall, there's the most friction to the pickup experience even if you have it available, mall-based retailers are really in the worst position. they're losing share as a result of that. >> amazon, it still gained about 2% of the ecommerce market share in 2020, largely due to prime subscriptionsincreasing by 15% the retailers placed 900 amazon hub lockers at locations around the country to enable click and collect in residential areas the parent of victoria secret all in malls, expected to face increased pressure as the trend continues. still on deck on "worldwide

exchange," as billions are wiped out amid the recent slide we're going to break down what's ahead for cryptocurrency when "worldwide exchange" returns stay with us nature's bounty unleashes something exciting. say hello to a drug-free way to ease stress. stress comfort. a gummy supplement with lemon balm plus saffron, to naturally boost your mood. stress comfort from nature's bounty.

exchange," it is 5:20 on the east coast this is a live look at 30 rock here in new york city. right there, the ice rink, also the area where the famous holiday tree usually is.

now we're in 2021, a brand new year let's get a check on this morning's other top headlines, we'll toss things over to phillip mena, live in new york actually at 30 rock. >> i sure am right here thank you so much. overnight acting attorney general jeffrey rosen released a message on the insurrection on the capitol calling it an intolerable, shocking and tragic episode in our nation's history. he said that afternoon more than 500 law enforcement officers and agents from the fbi, atf and the u.s. marshals rushed to secure the capitol. he said to expect more charges against the rioters and issued a stark warning against planning any further attacks. there will now be two trials in connection with the murder of george floyd, the first is set to start in march. on monday, a judge ruled that derek chauvin, the minneapolis police officer accused of killing floyd will stand trial alone while the other three officers who were accused of playing a role in floyd's death will stand trial together in

august the judge cited limited space because of covid as the reason chauvin is charged with second-degree murder and manslaughter he faces up to 40 years in prison if convicted. and finally super bowl winning quarterback aaron rodgers revealed that he will be a guest host on an upcoming episode of jeopardy. rogers who won an episode of celebrity jeopardy in 2015 called the late alex trebek a hero of his. frank, back to you. >> that's a great piece of trivia that he won back in 2015. i think he won 50 grand for one of his charities i'm curious how he's going to take over the hosting duties aaron rodgers is known to be a little snarky sometimes. >> i think he can be i think all of his focus is squarely on the los angeles rams right now. he'll worry about that one later. >> absolutely. i think that he's hoping isn't until march, when the season is over. still on deck, the house gearing up to vote on whether to impeach president trump for a

second time. eamon javers is standing by with the very latest. and a reminder, you can always watch or listen wide on the cnbc app "worwi ehae"s ckn lddexcng iba i just a moment.

green arrow's futures point for more gains in stocks in the open in washington news, the house voting to call on mike pence to remove president trump from office and bitcoin continues its wild ride, now on track for its worst week since march, just days after hitting an all time high

it is wednesday, january 13th, 2021, and you are watching "worldwide exchange" right here on cnbc. welcome, i'm frank holland in for big papa, brian sullivan, here's how your money and investments look right now as we're halfway through the 5:00 a.m. hour stock futures, pretty much flat, slightly higher right now in the early trade. this after stocks finished flat as traders increasingly find themselves in a holding pattern. the major averages remain lower for the week after monday's slide. not a holding pattern, the russell 2000, the small cap index up 1 1/2 this week, up 8% this month, keeping that 2020 momentum going dow transports seeing plenty of movement, climbing nearly 1 1/2% yesterday. its fifth positive session in the last six it's up more than 4% to start this year, and oil, it's continuing its rebound, climbing nearly 2% yesterday to its

highest level since last february, right now, we're seeing oil and gas in the green. now to some of this morning's top corporate stories. bertha coombs and back with those headlines and more hey, bertha. >> hey, good morning to you again, frank visa dropping its planned $5.3 billion takeover of fintech software start up plaid. the decision comes a couple of months after the justice department filed an anti-trust lawsuit saying the tie up would limit competition in the payments industry. president-elect biden is expected to name gary gensler as his pick for s.e.c. chairman he has experience as a regulator, ran the trading commission during the obama administration, and served in president clinton's treasury department. and you tube is suspending president trump's account saying he uploaded content that

violated its policies. the white house was also issued a warning for violation, and told that it could face the same suspension the president's account has nearly 2.8 million subscribers and normally posts several videos a day truly unprecedented, frank back over to you. >> you know, we're definitely in historic territory right now thank you very much for those headlines. we appreciate it as always. a new survey shows that the state of the nation is the top concern for investors in 2021. for more on that, i'm joined by caleb silver, the editor and chief of investopedia. thanks for being here. >> good morning, frank, good to be with you. these are engaged investors, people active with their own accounts, and they know what they're doing. they have been very bullish, going into december, they are bullish but the last week has scared them back a little bit, and now their number one concern is the state of the nation and civil unrest it used to be covid. it used to be the elections but

now that that has passed and we saw happened in capitol hill, it's the state of the nation 60% of our readers, about a million and a half readers that we surveyed are concerned about that going forward most are kind of in a goldilocks form they expect more gains in 2021, we have more respondents now expecting some losses, steep losses because of the political uncertainty. so this is generally a very bullish crowd, but they become a little bit scared and pulling back a little bit in just the last few weeks since we have seen how things played out in washington, d.c. and what they're worried about going forward again is that civil unrest, and what's that going to mean for markets and policy uncertainty so well. >> i like the way you're tacking the bull by the horns on this one. we were just showing your survey results, like you said, almost 60% of your readers finding the state of the nation the top concern. what do you think is causing this we talked about the bifurcation of the market, main street and wall street, and the market isn't responding to the turmoil,

why all of a sudden do you think your readers see this as a concern? >> because we have seen things we haven't seen before: you said it to bertha, this is truly historic times we have seen things unfold on television and at the nation's capitol that we couldn't predict. they saw the blue wave coming with the elections in georgia, right after that is when we began surveying them they are concerned a little bit about the rise in taxes. i think everyone we have surveyed pretty much believes there will be a rise in income taxes and corporate taxes going forward, and political uncertainty in terms of the size of the next stimulus is there going to be a bigger stimulus passed and what's that going to mean for the landscape, and they have been sitting on 40% gains for the last year. >> stimulus is definitely a factor, especially with president-elect biden saying stimulus could be in the trillions, so obviously that's spurring a lot of thought when it comes to investments. as we mentioned, historic times, a lot of turmoil, and generally that may change the way people balance their portfolio, and this year we have seen some of that we have seen commodities red

hot, real estate red hot, interest in cannabis where do stocks rank as a preferred investment right now >> our investors love that home cooking, and they love stock so they think large cap u.s. stocks is where that action is going to be. they're very favorable towards the big caps that represented so much of the gains in 2020 and a lot of them are sticking with those. we surveyed them on what their favorite asset class would be going forward, and it is u.s. equities, followed by international equities, especially emerging markets and bitcoin, the favoritism towards equities is strong they love their stocks and a lot of them are older folks who have been in the market for quite a while. very loyal to the dividend paying blue chips that brought them their returns over the last decade or so. >> it's interesting that you say your readers are mostly older people i saw right there, u.s. treasury is only 1%, saying that's their preferred investor, and generally they like the security of fixed income investments and a lot more people who are younger are jumping into the

market for the first time as retail investors cannabis is the other thing that sticks out can you talk about bonds and cannabis, why the more interest in cannabis of all things over bond bo bonds. >> cannabis is a growing market, talking about decriminalization. several states opening for legalization you can see the markets with cannabis stocks and to be clear, our readers are old and young. we have a strong proponent, especially in the news letter readers who are older folks who have been in the market for 20 or more years, and seen different cycles cannabis, they believe is a growing market they have seen what happened to the stock prices in the sector, and they believe there's going to be up side because of the decriminalization, and legalization, but that remains to be seen in terms of bonds they know where interest rates are going to be. theo

they are rise to go a certain extent. >> before we let you go, let's talk sectors, we're in the middle of a pandemic health care is a crucial part of our economy globally, what other sectors are your readers interested in and think have the biggest upside for 2021. >> large cap tech. like i said, they love that. that was the horse they rode in on, and they're very faithful to that. we asked for any stock, one stock that they could hold on to for the rest of 2021, the number one, frank, tesla number two and three, amazon and apple. these are loyalists that like the big caps. >> people like the home cooking and work from home economy, there are three stocks that address that not tesla, but that's a whole thing. >> caleb, i'm a big fan of your site thanks for your time, appreciate it. now the latest out of washington and the push by congressional democrats to remove president trump from office eamon javers joins us live with the very latest. >> good morning to you, frank. it looks like this will now be a

bipartisan impeachment effort today in the house of representatives. we expect the house to vote as soon as late this afternoon to impeach president trump for a second time. some of the movement on the republican side came late yesterday after liz cheney, a member of house republican leadership said she would vote to impeach she is of course also the daughter of the former vice president dick cheney, here's her statement from yesterday she says there has never been a greater betrayal by a president of the united states of his office and his oath to the constitution i will vote to impeach the president. over on the senate side of the aisle, "the new york times" reporting late yesterday that mitch mcconnell is quote pleased that democrats are moving to impeach president trump, believing that it will make it easier to purge him from the party. late yesterday, the house voted to push for this resolution, calling on mike pence to invoke the 25th amendment and remove the president from office. pence sent a letter to the speaker of the house yesterday

saying he will not do that here's what pence said he said under our constitution, the 25th amendment is not a means of punishment or usurpation invoking the 25th amendment in such a manner would set a terrible precedent so that leaves us with this morning's events on capitol hill where we do expect at 9:00 a.m. considering the process for impeachment on one article of impeachment, of incitement to insurrection, and we expect that vote to take placelate this afternoon. we expect it to pass, and then the question, frank, is what happens on the senate side how quickly can they move forward with a trial are there the votes to impeach and remove the president of the united states on the republican side there we don't know the answer to that question right now, frank. back over to you. >> thank you very much that's a great question. we have seen previous reports that senator mcconnell said the impeachment trial couldn't start in the senate until the 19th that were before the reports that he was actually on board or supporting it. what is the realistic time line,

do you see it happening beginning before the inauguration or after the 100 days time line that we have seen from representative clyburn, is that more likely. >> senator schumer, the democratic leader saying he could use emergency provisions inside senate rules to move something to the floor very quickly as long as mitch mcconnell is on board with that. if schumer and mcconnell get together, they can move it to the floor quickly. under the constitution, they have a trial of the president, and presumably that would take time to allow the president to present his side of the case we heard from the president yesterday. he said everything that he said in his speech to that crowd before sending them off to the capitol was perfectly fine and he said experts have looked at it, and you can imagine that would be his line of defense in an impeachment trial we just don't know how quickly all of that can happen, frank. it's a real unknown. >> i have said it all nomorning,

we are in historic, unprecedented territory. >> it's staggering. >> eamon javers. bitcoin on track for its worst week since march we'll talk about the volatile start to the new year. that's coming up. first as we head to break, a few of the morning's top headlines, american towers buying telecom towers in europe and latin america, the deal carries a price tag above $9 billion the u.s. will require all international airline passengers to show proof of a negative covid-19 test before traveling in to this country the cdc says the order will go into effect on january the 26th. and disney looks to be gaining on netflix in the streaming wars new data shows consumers spend about 6% of weekly streaming time on disney plus in december, that's well below the 28% of time people spend on average on netflix but still photnotable tt the netflix number is down from

the previous year. mandalorian probably a factor. stay tuned you're watching "worldwide exchange" on cnbc has the hydrating power of 5 jars of a prestige cream, which helps plump skin cells and visibly smooth wrinkles. while new olay retinol24... provides visibly smoother, brighter skin. for dramatic skincare results, try olay. and now receive 25% off your purchase at olay.com brand power. helping you buy better.

what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley. welcome back to "worldwide exchange," it's 5:40 on the east coast, a look at a very colorful times square, but as normal it's pretty empty out there not a lot of traffic with the vaccine being delivered around the u.s. this year, we're hoping that's going to change. in the first few days of 2021, bitcoin had its best start

to a year since twoo2012 hittina record high on friday, rebounding yesterday, it's still up over 300% since a year ago, so what are investors supposed to make of the short-term fluctuations, joining us is anthony pompliano thanks for being here. >> thanks for having me. >> i think volatile is a euphemism. this is quite some action on this chart but you actually believe that holding bitcoin, it gives people more control over their investments, and you actually call it beautiful i have never heard that term for bitcoin. can you kind of explain your thesis here. >> from a price perspective, bitcoin was trading at $10,000 in october of 2020 it basically went up 400% in less than 90 days, and a 20% retracement. it's pretty natural. when you go back to the 2017 bull run, bitcoin in 2016 and 2017 more than 20 x'd in price

had five corrections of over 30%. so naturally what you're going to get is kind of these mini boom and bust cycles but over a long period of time, even just one year in 2017 bull narcotic, you had a 20 x in price, and so the having in 2020 kick started the next bull market i think what we're seeing is this is kind of the first correction, but it's still higher than it was in october of 2020 and we're going to continue to see it move higher and higher in the coming months. >> so anthony, you agree it's volatile, we're going to agree there. there's many boom and bust cycles i think the question everybody wants to know is what is the true worth of bitcoin and is it in any shape or form tied to the value of the dollar. we have seen the dollar bounce and the bitcoin fall >> well look, jerome powell and the federal reserve ran a $3 trillion market campaign for store value or hedge fund assets in 2020, and whether you believe inflation is going to occur or not there's a fear of inflation

so investors are moving campita into precious medals, bitcoin, et cetera. and i think bitcoin has been the biggest mover, and we're seeing the price point follow we're watching bitcoin go from a contrarian trade on wall street, and next you'll see corporations everyone from fortune 500 companies on down will put bitcoin on the balance sheet, and central banks around the world will put this in their reserves we're transitioning from retail t to institutions. if you compare it to something like gold it's a 10 x improvement from a technology standpoint low hanging fruit. and then if you start to look at as an actual decentralized currency, can it rise to global reserve status that's the question investors around the world are speculating on, and we'll find out how the

market plays out in the coming years. >> can it be a global curve currency, is that the trajectory of the asset >> i think it will be the next global reserve currency. every fiat currency has the same structure. basically it's controlled by a group of people. it is devalued over time to kind of incentivize people to get out of the currency and invest or consume. bitcoin comes along. it's the only currency we have that has one decentralized, and two it has a different structure, deflation naary in nature when you look at this, sound money or gold, really lasted for thousands and thousands of years as money in 1971, we decided to get off the gold standard and build the financial system we have today that's a relatively small blip in history that we don't have small money. >> agree agree on the one point i don't mean to cut you off.

a small portion of time since the gold standard but bitcoin has a smaller track record, could it be replaced by other kr cryptocurrency >> i think bitcoin is by winner when it comes to cryptocurrencys. others are serving as digital currencies bitcoin as a currency is by far the winner a currency is a belief system. will people accept it and do they believe it has value, and a network effect, the more people that use it, the more value it accrues, and utility it has. bitcoin's network effect has set in, and has the escape philosophy when it comes to adoption there's 100 million people who use bitcoin, and you're starting to talking about retailers using, large institutions on wall street. i think we're just getting started when it comes to main street adoption of the asset. >> a lot of applications for block chain. we'll have to see you

cryptocurrency develops. we appreciate that insight thank you very much. on deck at "worldwide exchange," the ipo rush, the names looking to go public at the start of 2021, if you haven't subscribed to our podcast, you should, "worldwide exchange" every day in audio form and if you missed us, check him out on apple, spotify or other podcast apps and we will be right back. these days, we want sophisticated but simple. cutting edge made user friendly. in other words, we want a hybrid. and so do retailers. which is why they're going hybrid, with ibm. a hybrid cloud approach with watson ai helps manage supply chains while predicting demands with ease. from retail to healthcare, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm.

exchange," financial lending company, a firm is going public today, and it could be the first of many names to watch in the coming days. leslie picker joins us now with more on the ipo rush hey, leslie. >> hey, frank, good morning. this could actually shape up to be one of the busiest ipo weeks all year it's only the second week of january. a firm kicking things off, pricing its ipo about 11% above a range that had been boosted earlier in the week. that ipo at $49 a share, raising

more than a billion dollars for the buy now, pay later platform: that price tag makes the firm worth $12 billion, quadruple the last private funding round from less than two years. another $4 billion worth of issuance is expected to hit the market over the next three days. just three days, frank posh mark, the parent company of petco expected to make their debuts and, then by friday you'll see trading in online gaming company, and driven brands that doesn't include the oh, half a dozen spacs that are also listing this week in addition to operating companies. investors are certainly willing to pay up to get allocations in these ipos right now, and that has kept the deal flow spigot open again for the current environment. just yesterday, compass, the real estate platform or actually this was two days ago, announced its confidential filing. cnbc re cnbc reported last week that

oakley is going public ads well and that should come relatively soon, and there are other companies, like coin base, robinhood, also on the horizon, frank, so it is definitely going to be a busy start to 2021 while this ipo window is still open. >> we can see. leslie, just curious all the uncertainty we see right now in d.c. and everything else, does that impact the desire of these companies to go public >> isn't that just remarkable, the fact that we have seen so much chaos on the political stage and yet these ipos, issuers have been basically unfazed by that. not only are they coming out in droves but investors are willing to pay up for that the big reason is that often the ipo market mirrors just the overall market, so the fact that the overall markets have risen and have remained steady throughout this whole thing has led issuers to think, okay, this is okay, i guess i can go out now. now, i will say one thing, it's not that people aren't paying

attention, and i have heard incidents of companies that are actually pushing their ipos from say the second and third quarter, they're moving them up because they're a little bit worried about volatility they're worried that the ipo market could close because things look so good for issuers right now. >> picker shaping up to be a busy day and a busy 2021 for all this action. we appreciate it as all. don't miss the interview with the cofounder and ceo max levchin on "squawk alley" at 11:00 a.m. eastern. your next guest is generally optimistic about 2021, and expects a significant rotation this year, and says there are some early signs that's already starting to play out david katz, chief investment officer at matrix asset advisers good morning, how are you? >> i'm good. >> let's jump into it. what is the rotation you see unfolding? >> last year you had growth dominating value by the biggest

margin since 1979. we think that has to end because it's at value extremes and the things that pushed growth are slowing down, and the things that hurt value are reversing. we're starting to see it since the 4th quarter, value has been outpacing growth growth has slowed down a lot, and this year you see financials start to do a lot better financials have a disproportionate exposure in the value indexes. we think they're poised to leave the market this year, and we think technology can do fine, we think it's going to slow down and participate with the market rather than lead the market. >> let's talk a second about the russell 2000, we have mentioned on the show quite a bit this year, and it's the best performer so far this year what have you attributed that to, and why are so many people saying it's all about large cap tech when small caps are the outperformers. >> small caps had a bad nine months last year, and as people started to look toward the economy opening up toward the covid vaccine and a better 2021 economy, they started to talk

about, look at things that were most leveraged to the up side, so they're starting to do better, they're catching up, we think they're selling reasonable valuations right now, but again, we think there are parts of the russell 2000 that are expensive, primarily the hot technology stocks, and we think the duller value stocks are selling at a pretty reasonable price. we're looking for a pretty big rotation to boring the previous spot was just about ipos on hot technology type companies. we think that's an area that's very risky the stuff we think is a lot more interesting from a stock market perspective going forward is the dull, the slow and steady, we like financials, health care, utilities have been horrible we think they're poised to do much better. you get a safe, 4 1/2% yield, which we think is going to be a good thing this year, especially since money markets are at zero. we think telecom will start to do better, industries will do better, so there are lots of places to make money, but the watch word for this year is

going to be conservative we also think dividend stocks which were miserable in 2020 are going to be a very good place to be in 2021. >> you're bringing plenty of excitement let's focus on the dull sectors for a moment you mentioned utilities and als in your note, you mentioned consumer staples, all the work if home, using more power and eating more at home. where do you see the up side there for those, or the specific stock that is you see gaining? >> both specific stocks and the group, so we think that the stocks have done so poorly of late, even though they had a great run in the first quarter and second quarter of last year, they have lagged for the last six months we think they're going to start to play catch up coca-cola is a reopening play, half of the business comes from stadiums, restaurants, we think you can get a good yield in coca-cola, in terms of utilities, they're doing well, whether the economy is open, closed, they're justmaking nic earnings and paying that out to

investors, yet nobody cared. utilities did poorly, and started this year poorly we think they're at about 15 times earnings very good yield. dull but we think dull is going to be good, especially if some of the more speculative sectors start to slow down we think the stay-at-home plays, like the zooms of the world, all of a sudden their businesses go from 50% growth to 30% growth, and at 100 times earnings, you have a lot of risk that can go down those are the things we're most worried about. >> you say value has been outpacing growth since september 30th do you see that trend continuing and how do interest rates play a factor >> we do think that trend continues and we think it accelerates this year, and basically you had a guest which talked about the last 14 recessions, and coming out of the recessions, value outpaced growth, 14 out of 14 times, and with the rising environment. we think the things in place with the economy really come together for value starting to do better, and to slow down growth at a minimum, we think it's

going to be a pretty level playing field but right now for new moneys, we think your best bang for the buck is in the value stocks. >> you mentioned new money, a lot of people who are retail investors jumped into the market during the pandemic, if you were going to start a portfolio, what two sectors would you start with >> right now, we think health care is very good. and we think financials are really going to be one of the leaders. but we think if you're a new investor, you can diversify. you might want to buy an s&p etf and high dividend etf, that will protect you and you'll do well in the upcoming year >> we appreciate the insight, and some of the stocks you mentioned. we appreciate it thanks for your time. >> thanks a lot. have a great day. we're going to take a look at futures, flat in the early trade right now, we're vright now, the nasdaq up slightly, the s&p taking a dip into negative territory. that does it for us on "worldwide exchange. "squawk box" is coming up next thanks for watching.

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good morning, vice president pence rejecting calls to remove president trump from office. congress proceeding with an impeachment hearing. we'll take you live to washington. you tube blocking president trump's account due to potential of violence. and we're set to get our first major ipo of 2021 as a strong momentum of public offerings keeps rolling into the new year. it's wednesday, january 13th, 2021, and "squawk box" begins

right now. good morning, everybody, welcome to "squawk box" on cnbc, i'm becky quick, along with joe kernen and andrew ross sorkin. yesterday was a bit of a back and forth session, some up, some down, we ended the session higher dow up by about 60 points. s&p up by 1 1/2 points but that was enough to push the average above 3,800 where it had fallen below the day before, and the nasdaq was up as well. this morning, nasdaq is indicated up by about 10 points but the dow is down by less than a point and the s&p is giving back that 1 1/2 points that it gained yesterday we'll see where things go. obviously a lot of people waiting to see how the rest of the political landscape unfolds. keeping a close eye on the treasury market. you know that the tenure has been a steady upward progression.