look at this game stop this is one of the wildest short squeezes we have seen. >> looks like a video game chart. >> speaking of chewy it looks like the founder of chewy is now involved in game stock on the board of directors. that was enough to spark this. >> stocks in the final hour of trade. fading gains, close to the flat line that's it for "power lunch." "closing bell" starts right now. >> thank you morgan and josh welcome to "closing bell." i'm sara eisen the dow is up just 20 points nasdaq is trading at record high russel is jumping. let's look at what's driving the action one hour left of trade trillions of new stimulus or just hundreds of billions? investors are awaiting president-elect biden's economic plan coming late they are afternoon. johnson & johnson helping cyclicals, reopening plays,

energy all higher. momentum stocks are also surging. the hot run for ipos continues today. petco only up 65%. posh mark more than doubling, affirm up again. 59 minz minutes left of trade. >> looking like we are going for two record closes still just about off the highs as you said. we have a big lineup coming up later in the show we will speak with former cdc director dr. tom frieden about the encouraging vaccine data from j&j and what he thinks about the idea of an immunity passport in america and aphria jumping on the bask earnings ceo irwin simon will join us and later we will be joined by former xerox ceo ursula burns with her thoughts on the unrest in washington and how businesses should react first to the big stories we are watching mike santoli is tracking the market action.

ylan mui has details on whether the covid relief pack can get through congress. mike, the market is flat. >> muted reaction in the big cap indexes right now. the s&p 500 operated below last friday's high for the fire four days but it has been going sideways we have either russell 2000 case or nasdaq 100 days today is a russell 2000 day. large cap growth, source of funds all the action is happening outside the big cap indexes in the racier stocks, the high concept names, speculative stuff, new stuff that's where all the buying seems to be. we talked about the fiscal stimulus is it baked in is it not? look at discover financial, ally financial, an auto learned,

discover credit kad cards and paid etf they happen to be up exactly the same amount over this stretch. above theirpry covid highs these are levered to whether we are going to get $2,000 checks whether there is going to be investment in infrastructure this angle tells you the market has been moving in this direction. it is really about the size and the shape of the package not whether there is going to be one or when it comes we mentioned the russell 2000. we often talk about it as the old economy macro driven risk appetite tell. it is all determining whether we are going to be in a cyclical market there is 2,045 stocks in this index. plug power, penn national sports game, caesar's sports bething. run is sun run, a solar stock.

and darling is an map products rendering business, racing-highier because it is a biofuels play. it is not main street economy stuff plodding around. even the on of the russell 2000 implies a speculative push into high risk high reward names. you would think if it was al call weighted index you would have one/1,000th of each stock this shows you we have a clustering of some of the frothy stuff in the russell 2000. that's one of the reasons why it moves in such a volatile way these days. >> clear upward momentum in recent weeks on some of those areas. the fact that the vix hasn't fallen low 20, does that mean there is still more room to run? >> it could be, for sure i mean, there is room for it to come down more if we stay in this kind of very orderly uptrend where it rotates as opposed to pulling back

sharply, yes, you would think that has to create a drag on the volatility index also one of the reasons that all those areas of the market have such upside energy is so much this speculation in the options market that drives up pricing in general for options the implied volatility of options. that's what goes into the vix. it isn't tell you people are afraid it is telling you people are bracing for sharp movements one way or another but there is room for it to continue to bleed lower if the overall market stays kind of calm. >> thank you mike santoli. we will see you soon. president-elect biden slated to unveil his plan to get the economy back on its feet in just few hours. ylan mui has a look at whether his proposals can make it through congress >> biden essential low has two choices here first there is good old-fashioned bipartisanship two sources are telling me that's going to be his starting point at least for the first covid package. he wants to work with republicans to get the 60 votes they would need to pass the

2,000 stimulus checks, state and local aid, and funding for the vaccine. then there is also budge reconciliation now this could be a backup if democrats and republicans can't reach a deal or democrats could use to it pass an even bigger bill later on. s that special process that allows them to pass bills with just 51 votes, which is conveniently how many they are going to have. there are strings attached including that it can only be used for revenue and spending measures that would rule out spending money to state and local governments or even to the cdc. you also have to commit to how big the package is out front and hope the details work out later on the process involves both chambers to vote twice, once on the price tag, then on the actual legislation there have been big sweeping bills passed using this process, the tax cuts and jobs act, the affordable care act and both of the bush tax cuts.

clearly it is a very powerful tool but it is also a very polarizing one. >> eylan, this is to get us through the depths of the pandemic and out it. then what? we are expecting a separate infrastructure plan and an immigration plan, all coming soon >> biden said all of these are his priorities we will have to wait until tonight to see exactly to see how he rolls them out n what order. certainly the focus is what a new covid relief package would look like. you are hearing from some republicans as well who say they want to see democrats move alone on their process for the $2,000 checks as a stand alone bill so battlelines are being drawn tonight we will get detail on what the policy and the political strategy might be. >> ylan, thank.

meantime, fed chair powell weighing in with his thoughts on the recovery early this afternoon. steve liesman has the details. >> jay powell saying the time to raise interest rates is no time soon he acknowledged that a rise in inflation is coming and that's the forecast of many economists but he dawn employed its signi significance. >> now is not the time to be talking about exit i think another lesson of the global financial crisis is be careful not to exit too early. and by the way, try not to talk about exit all the time if you are sending that signal, because the markets are listening. the economy is from from our goals. >> powell noted tremendous slack in the job parkt from unemployed americans. new jobless claims hitting a five month high with jobs jumping 150,000 in florida and

illinois arizona and new mexico saw increase of 10,000 as the surge of the pandemic makes its way through the economy. powell said he is optimistic for the medium term and that the economy to top its gdp from before the peak but he is set fast in that the fed is in in rush to ease policies sfoochlt perhaps all things considered less specific than clarida was yesterday, and will be the a little less dovish of the margin >> i don't think so. i would suggest there is not a whole lot of space between the fed chair and the vice chair on the issue of where we are going. i would hardly think that the vice chair would be more dovish than powell. i think there was a difference in the questions that were asked, how they were asked clarida gave a very specific speech about certain formulas and ways of arriving at details

about fed policy he was more specific by design i think if asked the same questions the same way i think powell and clarida would be this the same place. >> thanks for that much appreciated. >> pleasure. we have got 51 minutes left in the session s&p 500 just dipped in the red dow is only up 24 points at the moment the nasdaq is up a quarter of a percent. russel holds on to 2.5%. as of now, the u.s. has administered 11 million vaccines according to the. >> caller: that's still way below target. we will talk about a former cdc frequenter tom friedman about how to speed up the process and how quickly j&j's shot could come to market and starti being used you are watching "closing bell" on cnbc.

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♪ you can go your own way ♪ it's time you make the rules. so join the 2 million people who have switched to xfinity mobile. you can choose from the latest phones or bring your own device and choose the amount of data that's right for you to save even more. and you'll get nationwide 5g at no extra cost. all on the most reliable network. so choose a data option that's right for you. get nationwide 5g included and save up to $300 a year on the network rated #1 in customer satisfaction. it's your wireless. your rules. only with xfinity mobile. shares of johnson & johnson are up by about 2% today it. comes as the company released early trial data on its one-shot covid vaccine showing a promisingimmune response in both young adults and the elderly. trial data is expected next month. joining us now, dr. tom frieden, the cdc director from 2009 to

2017 good to into you how optimistic are you after this johnson & johnson data? when could this vaccine start to be used? >> first off the laboratory data is encouraging but laboratory data is one thing. human data is another. until we have the results of the clinical trial which we may get as early as next week we won't know there were media reports just yesterday that joinl has had unexpected manufacturing difficulties and that could delay rollout of the vaccine we also aren't sure that a single dose will work. but the data from yesterday was encouraging because it showed that the immune response was strong and even got stronger for up to two months after the initial vaccination. >> if single dose does work and given that this doesn't have to be transported at such cold temperatures, could it be game changing in terms of the pace of getting american vaccinated?

>> i think unfortunately there is nothing that's going to be game changing. no one thing is going to turn this around. we are still going to have to wear masks socially distance vaccination is going to be a many month process in the united states in fact what we may see, what i hope we will see in a best case scenario is success vaccinating nursing home residents and staff and people over the age of 65 such that by late february, sometime in march you would begin to see substantial reductions in the death rate even if cases continued to spread the big wild card here is a variant like the b-117 variant from the united kingdom which took a bad situation and made it much worse we need to double down on protection protocols because vaccination is not going to magically make this go away. >> no. but it is supposed to help it has been such a bump doctor, when it comes to vaccinating.

i can't speak for all states, but new york and a number of other states are having trouble. why is it hard to figure out whether someone is eligible to be vaccinated and where they can do it? >> to be frank, we have a national program that hasn't done this well they handled it like a grocery delivery program what's the temperature and the stocking cadence instead of a vaccination program where you do a detailed plan figure out every spot, how many they can do today, who is going to go today. how you communicate with the public it was only weeks ago when congress approved resources for states to begin the planning process. the money hasn't hit the system yet. we are looking at weeks to potentially a month or two of continued rocky rollout. we do see areas of hope. we see the numbers picking up. we see the vaccine relatively well accepted by large numbers of people. no significant safety signals. large numbers, over a million people vaccinated in nursing

homes and other long term care facilities we are seeing some progress. but, clearly, there's a lot of cleanup to do in how this vaccination campaign is being rolled out >> i get the blame on the federal government, but dr. freeden isn't some of it just the fact that we in this country do not have the sort of national universal health system that we see in some many other countries, like in the uk, like in israel and it is not cut out for it we have for-profit privatization. which is not a judgment. but when it comes to something like this, it is not that helpful. >> the way i think of it is you have got a problem that's relatively easy to solve, and one that's harder to solve the relatively easy one is poor management of the pandemic response by the federal government you need an organized science-based response that communicates consistently and accurately with the public i think we will have that in the coming weeks the harder part is exactly what you say. we do not have a strong primary

health care system in this country. and really, we suffer for it we suffer avoidable heart attacks, strokes, kidney failure. we suffer avoidable infections and hospitalizations and we suffer the failure to vaccinate effect effly through primary care but really this is a great opportunity. lever let a crisis go to waste we have the chance to change the way health care is delivered in this country and make it more patient focused so that everyone can have a family doctor family doctors can be adequately compensated. and they can help get us through this pandemic and more resilient for the next it's kpngtly as you say. in countries where there's a systematic way of linking people to their primary care provider or family doctor, they get an appointment, they go, and they get vaccinated it is not that big a deal. here we have to do so many work-arounds with large mass vaccination programs, hospitals, community vaccination sites,

walmart, cvs and other pharmacies doing vaccination programs we will get there but it is going to be longer because we don't have a strong primary public health care system. >> doctor, cnbc carried out a survey about vaccination and evidence that people have been through the process. there wasn't that much support whether americans should be required to show proof what's your view on that and the likelihood of whether we will get to a point where a vaccination passport is a thing. >> i think a vaccination certificate is something you should have the right to have. if you get vaccination and you want proof of vaccination you should be able to get that in a way that it may be required by some countries in the world in order to travel there or some workplaces but i wouldn't be aware of a system that requires people to get that because you are going scare people away from getting

vaccinated there is one group of people we have to be seriously thinking about that the people who work in nursing homes. residents in nursing homes are susceptible to death from covid. you want to make sure everyone working with them is vaccinated, and is wearing a mask at all times and you want to make sure that all the people who both live and work in nursing homes are vaccinated >> dr. tom frieden, always good to hear from you >> thank you. we have got just about 40 minutes left before the "closing bell." looking at session lows right now. the dow, s&p, and nasdaq all going negative declines on the s&p by about a third. the russell 2000, though, going strong it is actually seeing intraday high, up more than 2%. surging for the small caps. after the break, watch this teace, soars of virgin galactic

afr a firm launch as space exploration etf. we will discuss other names that could take off, next lots have t. i just don't have the bandwidth for more business. seriously, i don't have the bandwidth. glitchy video calls with regional offices? yeah, that's my thing. with at&t business, you do the things you love. our people and network will help do the things you don't. let's take care of business. at&t.

five, four. >> command engine start. two, one, ignition >> looking to invest in launches like this? well, it's getting a little easier and it has virgin galactic shares rocketing higher today as well as other space companies. the reason

call it the kathy wood effect. a filing revealing that her company arc invest is launching a space exploration etf. the stocks in the fund haven't been named yet but arc is coming off of a wildly successful run in 2020, returning more than 170% last year now has 17 million under management the fund best none for its bullish position in tesla, the stock accounts for more than 10% of its weighting which helps explain the outperformance the new fund to be ben have itting from products or is youras passes that include beyond the surface of the earth. four categories, orbital care owe space, suborbital, or construction stock this is a niche little stock

everyone thought she was crazy saying tesla would be going to,000 and now look at the money following her. >> her flows are massive they exceeded year to date i shares inflows on a net basis, $4 billion it is largely tesla, there is a genomic funds, a gene editing business they are huge holders of lots of small stocks office combination of things huge big themes, disruptive themes that are benefitting from forces we are seeing in the economy. also with transparency it is an etf you know what stocks are in there on a relatively timely basis so you can chase and frunt run. here, there aren't that many pure space related plays people are betting first and figuring out if they end up in the fund later. >> i was going to ask if it was

going to be an etf or a actively managed fund it could have a smaller fee. or is it going to have to hold everything in this space >> largely it will probably hold a very large percentage of the market we don't know if it is going to dabble in the aerospace companies that also have space companies. that could be. but it would be a significant hoeder of a lot of the pure stock companies. it is a niche. and most low one all about the distant future as opposed to business today. >> mike, thanks for that as sara said, much credit to kathy wood and arc for that bullish position on tesla. much more strongly and earlier than many others. still ahead the debate over social media's response to president trump raging on as snap chat permanently removes him. meial ferguson joins us on that ahead. before we head to break, a

check on bonds the ten-year remaining at 1.1 -- it is up to 1.13 again, ticking up over the last hour or so while stocks in fact are near session lows weheaj aras t morvege lor. we are back in a couple of minutes.

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welcome back down .2 on the s&p 30 minutes left. shares of petco moving higher in its first day of trade it opened at $26 a share, compared to ipo price of $18 now at 27 up 53% today another red hot ipo today, posh mark opened at 57.50. now trading 92, more than doubling, 131% higher today. meanwhile, shares of the real real are also higher showing strength in the online resale market real real up 10% today >> every ipo is up

time for a cnbc news update with sue herera hi, sue. >> hello sara. good to see you. here's what's happening at this hour, everyone a group backs joe biden's plan to mandate facial coverings for all air flyers the justice department announced terrorism charges against 14 leaders of the so-called ms-13 gang prosecutors say they directed a wave of violence, including killings, from behind bars. the ufc will no longer punish fighters for using marijuana. in most cases. fighting under the influence of cannabis is still banned but using marijuana for pain management and even relaxation will now be allowed. and siegfried fish bacher has died he was half the iconic entertainment duo known as siegfried and roy. their magic act and white tigers

were a mainstay on the las vegas strip for decades. he was 81 years old. you are up to date that's the news update sara, back to you. >> sue, thank you. 29 minutes left before the bell here's where we stand in the markets. dow has gone back into positive territory, just barely hovering around the flat line. so is the s&p 500. nasdaq popping into the green. the action today is in the small caps look at the russell 2000, up 2.3% session highs, on track for a record close shares of aphria popping after reports this morning we will talk with the ceo about what a biden administration and congress could mean for pot legalization that's coming up after this break. first up is this exquisite bowl of french onion dip.

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word from the gnomes that president-elect biden's stimulus package to be unveiled tonight will be $1.9 trillion. that was in the range we were expecting. we have an exact number as reported by the "new york times. $1.9 trillion. that's a lot yeedle are going higher. the cyclical trades and small caps rallying today. what else is rallying? pot stocks aphria in particular reporting q 2 earnings with a surprise profit and a revenue that beat expectations joining us, aphria ceo irwin simon. welcome back good to see you. >> good to see you, sara govern >> this is a big number. is this pandemic-related demand for cannabis or what >> first of all, absolutely demand and with our great brands, our great product, our great innovation, our great distribution both in canada and europe with our medical,

consumers want scannabis and more and more consumers want the product for pain, more and more anxiety, sleep, and recreational it shows you the demand, consumers want to buy recreational and san business. >> i was wondering if you think it is specifically tied to covid-19 and the lockups that we are seeing happening again and the fact that people are spending more time at home and potentially are a little bit more anxious as we continue to deal with these record case numbers? >> you know, i don't think it's because of covid i think that is just the change in the way consumers are living today and realize what cannabis does for them. and it can give them a good high it can help them with all of the other medical attributes that i talked about you know, in canada, there is now close to 1,200 stores, so it is also availability and the distribution of the products the other thing is what we have

done a great job, sara is, building our brands, consumers trusting our brands, knowing they are getting a product that has gone through quality control, that has gone through regulation, and that it's priced right. >> was there, irwin, a little bit of a disappointment in the canadian adult use business? >> i don't think there was a little bit of disappointment for one of the things we have gone through, and sort of -- this is about two and a half years now that cannabis was legalized. what we are going through is trying to get the balance of inventory and demand you know, we had some out of stocks as we built out our inventories you know, in some of the provinces. and just in regards to visibility, that's where some of our supply issues were but i have got to tell you, it is amazing that some of the numbers i looked at at prerolls and vapes, et cetera and what consumers are consuming today in those products. >> you are joining with till ray soon you were on with us in the

announcement of the merger i don't know if we spoke to you since it looks like the democrats are going to get a slim majority in the senate. what is your expectation at this point for what we are going to see as far as decriminalization or even legalization at a federal level in this country? >> listen, timing has been good for us in regards to announcing the sweetwater deal and legalize igs with the ability to grow our drink business and come out with herks, the c drinks and getting it through distribution, whether through stores that sell alcohol, beer, et cetera in regards to till ray and aphria coming together it creates the largest revenue cannabis company in the world today. there is a lot of intel from till ray that help us from a medical and recreational standpoint in canada and europe. with that, we do with sweetwater and we do with manitoba harvest have a good business in the u.s.

i say this sara, i get asked this question all the time now that you have a democratic senate and a democratic congress and a democratic president i think changed have change asked moved up within two years. i think something will happen, whether it is a safe bank act will pass, whether medicalization of marijuana will possible something will happen within the next year with cannabis. we heard talk about it being used in wwf, wrestling and you hear it from all the sports, cannabis will be used for pain you talk about how many trillions of dollars the deficit will be with regards to biden's new budget what could contribute a lot to that deficit is legalizing cannabis at least the most recent gallup poll is 68% of americans want san business legalized

>> do marijuana-based drinks replace alcohol? do they compliment alcohol will the two be in the same drink? are they alternatives? >> i think they complicate it. i think, again, if you go back and look at thc drinks they don't have a lot of calories, drinks that don't have a lot of hangovers and drinks that allow you from a health that doesn't have some of the effects of alcohol. i think they are slightly complementary. you have seen what happened in regards to the vodka selzer business and hows that has grown. i think that comes up there in size and consumption that those have. >> now that you have sped up your time frame and a lot of investors are getting bullish about the idea that the democrats are controlling the government and the administration on legalization, what's that going to look like when and if it passes in the u.s. are we going to see money being

raised mergers? what happens to the industry >> i come back and i say this here, you know, exactly what happens. i think a lot of the big consumer packaged good companies look and see, hey, do i partner with the right company how do i get into it from a drink standpoint, from a consumer products, from a personal care, and from a medical standpoint with that, aphria and till ray together, why are we positioned so well? we are number one in canada. number one in regards to medical in europe. we have a footprint in the u.s we sell into retail, convenient store supermarket, mass merchandisers. with that, we have gone through two and a half years of learning of how to good, safe cannabis products listen, i think in regards to speed up demand there would be nothing wrong with us being able to export our products out of canada and selling them to the u.s. beer does that today so i think there's a lot of learning and there's a lot to be able to do i think the aphria till ray

combination is in the best position to be able to act very quickly. i am asked all the time. you don't have a strategic mso, you don't have a partner out there. i think if legalization happens in some way we will be able to pick and choose the right way and the right thing for aphria till ray together. >> they are both up 20% right now. thank you for joining us to talk about night thank you for having me have a great day be safe out there. >> you too. up next, shares of game stop surged more than 1100% this week and delta's ceo weighs in on the vaccine rollout. those stories and many more when we take you inside the "market zone" next s&p just negative as we speak. a reminder watch or listen to us live or on the go on the cnbc app

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we have got 13 minutes left 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 here to break down these crucial moments of the trading day. and today we have got barbara duran with us. let's kick off with the broader markets. stock losing steam into the close. the dow and nasdaq both hit all-time highs earlier at the moment, s&p and dow just in the red nasdaq holding onto slight gains. the russel leads the charge, up 2.4% mike, off the highs, off the lows also, overall, still holding on to what is close to record highs despite various signed of progtiness

certainly signs of frothiness. also all kinds of cross currents it is a robinhood day, take from the rich and give to the poor. 70% or 80% of the volume is to the up side on the new york stock exchange and you have the equal weighted of the s&p 500 up nicely as well, .6% of this broadening out has been a theme for a while. it doesn't necessarily inoculate the margaret from a sharp pullback or a crux correction because we have this build up in overbought seasons and all of that froth i think that's why the indexes have been stalled and sideways but are not giving much ground. >> if you look what the we learned today, the fundamentals. it is jay powell, the head of the fed saying now is not the time to be talking about an exit and expectation and anticipation

ahead of president-elect biden stimulus package tonight which the "new york times" is reporting is going to be $1.9 trillion it is stimulus, stimulus, stimulus the market is flat does that mean it is all priced in for the short run, we have i don't think it means we are going to have a major pullback we never know when we are going to get the catalyst for a correction but when mike is talking about the churning about i think we are going to continue to see that, roiling under the surface as people look for value at this point people are uncomfortable how far and fast things have come knowing what typically happens at that point which is some sort of selloff. today as you mentioned the fed recommitted to long term holding rates low, and then a $2 trillion stimulus package being proposed tonight by president-elect biden, this is huge so it is hard to not to continue

to be bullish even though i think the big risk here, and that people are talking about is inflation trade. even that, i think -- could be and see pickup in inflation. 10 million unemployed, worldwide under capacity the forces that were in play before covid are still in action the fed couldn't get to us 2%. into right. >> so i think it is going to be a bit of a fright, and that could be the excuse to take some profits. i think things will reassert themselves. >> you are not in the inflation camp. check out stairs of black rock down 4.3%. 4.5% now despite reporting a quarterly beat on the top and bottom leans the ceo larry fink joining "squawk box" early this morning to weigh in on thepotential fo a corporate tax hike he said i wouldn't be difficult for them to take larger taxes but did say he would like to

know where that money is going. >> if that money is used for large-scale infrastructure, that will create a huge amount of jobs that will also stimulate the economy in very large ways if a corporate tax cut is only used to temporarily bridge americans who are unemployed, that mean is -- that only has a short-term consequence so what we want to see, if indeed is there a large corporate tax increase, that that money is used for a long term purpose >> mike, i think you have a lot to say on this over to you. >> you know, the dollars go in and the dollars go out of the government there is more that go out than come in through revenue. you don't get to earmark your tax dollars for a specific purpose. all the money is fungible. we are talking about a tax

increase that would raise $75 billion, $80 billion in a given fiscal rear. we are earning multitrillion dollar deficits. we are learning we can issue cheap debt by the government and not think about how specific items will be paid for if you think big government needs a spending priority let's do it. but let's not think about it like i would count fans a tax increase if i could have a say in where it is going billionaires say it all the time, i just want to know where the money is going that's what the government does. et cetera hard to isolate that. >> you commented whether they would perform well off the back of their earnings given a strong run into it. clearly they haven't down 4.5%. a be in other banks reporting

tomorrow and a sign that earnings season might not bring the richness of stocks that some hoped. >> there is always some sell on the news type situation even if you have good respects that happened the last two quarters black rock is all the right places asset management is great. asset management has been doing amazing. huge inflow. things are going right everyone assumed it was going to be a great quarter it was and it is giving back some of its gains. >> delta shares rallying despite posting another big quarterly loss phil lebeau has the latest >> i know the fourth quarter was ugly investors know it was ugly and it will be that way for all the airlines thaels not the focus the focus is where are you in q 1? what do you expect for the rest of the year? these why you see shares of delta moving higher. the cash burn is the key focus in the first quarter they are

suspected to burn between 10 and $15 million a day. that's roughly where they are in the fourth quarter spring and summer they are providing guidance for revenue. >> we need the vaccine to move at a faster pace for us to hit the recovery targets we all want to see in that's the key, not only for delta but for all the airlines they expect there will be an increase in the number of people who want to fly. they think there is pent up demand provided we start to see an easing in the number of covid-19 cases around the country. many expect that in the spring. >> the etf is up, still off its levels prepandemic are you a fan of the airlines? >> the easy money has been in the airlines when we had the vaccine news in

november the airlines went up 30%. right now delta has a few points in the near term at the year end delta will be much higher as they all will, for now, we still don't have visibility on how long the business traveler, the international traveler will stay away i think it is going take a while for people to get vaccinated although could be happening in the next months and also feel confident enough to do it. we have seen an increase but the lows are still low right now i wouldn't rush to get in but if you want to position somewhere in here you can buy and it hold it and it will be much higher i think at year end. >> if you looks at the best performing industries right now, it is airlines, and the s&p as we speak, airlines, oil and gas, metals and mining. where do airlines fit in >> in terms of popularity they are at the forefront, along with the cruise lines and the hotels. it is all trades as a group

based on the real term dynamic once the vaccine hit it was all about progress towards vaccine valuations -- they are in cash burn mode. they are going to be in cash burn mode indefinitely they have all issued enormous amount of equity and deb they are down less than you think if you look at the the stock chart because they have added to their share undercount so heavily really to me their trading is a binary do we get a reopen are we getting back to 2019 levels of travel before terribly long or not? they are back to being trading stocks for the most part. >> yeah, every time there is a release on trial data out of the vaccine makers how about game stop? continues to be one of the hottest stocks on wreath so far this year. josh lip ton with the details. josh >> sara, shot one way to put it. game stop has now surged 100% so far this year. since the lows in april, fearly

1,400% a couple factors at work a giant short squeeze going on ryan cohen is joining the board. he's a young guy who has enjoyed a lot of success in 2011, remember, at just 25 years old he cofounded which youy just six years later sold it for $3 billion to pet smart. investors are betting he can replicate that success there are skeptics who say selling ball game food is a lot different than selling video games. >> what an extraordinary move. when was the last time we saw a stock move on the back of a board appointment like this? >> it also fits another theme, which is there is a tremendous hunt on right now for had reshorted stocks you have this as a catalyst, the idea that you can be brought back to life and also some older retailers have had amazing runs. game stop has a big shortage because people assumed the business model is just about doomed in terms of physical

stores selling physical games. however, take bed, bath, and beyond they came back from that mode, too. the management chain you have the spark heavily shorted groups have been one of the strongest groups in the market right now that to me is the pain of people betting against the stocks you are looking at in that chart. >> mike, two minutes left. we are at the lows of the session. the dow isdown 70%. >> breadth is positive that tells you the positive before, selling the mega caps that are heavy in the index. 3 to 1 declining volume advancing. that's usually a strong day. it shows you most of the selling is happening in the biggest names. look at semiconductors versus software this is month to date, of course also year to date. 10% higher in eer in semis. they are running hot relative to the relative trend

a good sign. software, quality, they have been giving back surrendering some of last year's gains. the volatility index it has been easing back to some degree but bouncing up and down around this low 20s, mid 20s area right now. so still people on alert for potential jumpy moves each if right now sentiment more or less is all lined up in a bullish direction. sara >> one minute, just a little over a minute into the close look at where we are lower, but just fractionally across the major average, dow, and s&p, and nasdaq. second day in a row. that actually sets us up for a lower week heading into a friday would break a four-week win streak demanding on what happens tomorrow there is the s&p 500 it is down a third of 1% consumer staples and technology -- it is really technology and consumary discretionary and skuks services that are worst performers. staples are weaker, materials, health care also energy is at the top of the list having 3% move higher continuing

its very strong run, up 17.5% for the energy group so far this month. the russell 2000 stayed strong all day long even through the close as the rest stock market faded. up 2%. a record close for the russel 2,000. the only one of the big four treasury continuing to rise and the cyclical reopening plays continuing to work in this market perhaps on the the vaccine date we got from j&j last night. >>well to "closing bell," i'm wilfred frost along with sara eisen and mike santoli closing near the session lows, the dow down 70 points s&p down .4% nasdaq also down, .1%. the russel, the outperformer, up a full 2%. significant outperformer energy up 3% real estate financials and industrials also in the green. the rest in the red. technology the worst performer down 1%. facebook down 2.5% taking its

loss fosser the week to 8% coming up ursula burns on the business world's reaction to last week's capitol hill riots and whether the government should limit social media companies to limit misinformation. barbara duran is still with us and tom lee joins the conversation as well tom, i will come to you first of all. the vix not falling below the 20 level, which we have discussed with you so many times, hovering a little above that. if and when it does, is that a last hurrah for markets? or is it the start of another prolonged upcycle? >> yeah, it's important for the vix to break to a new low. i think, wilfred, it would be a signal of a regime change. because we are coming off a high volatility period. 2020 average vix was 29.5, the third highest in history people were navigating last year through basically a tsunami and

storm. a drop from the six is going to bring money both from the economy and institutional. i think it would be bullish. >> mike, if you look at the catalyst today good news on the vaccine front from j&j apparently good news on the stimulus front, at least in the bond market. we saw the dollar sell off when the "new york times" reported $1.9 trillion is what president-elect biden is going to lay out and to put sugar on top you have jay powell the federal reserve chair saying now is not the time the talk about exit or higher rates. yet the market didn't do a whole lot. there was a time in the recent past where that would have fueled a huge valley. >> a time in the recent past from lower prices when that would have fueled a big rally. that is a lot of the news the investors already had and the market has already acted on. things are there for an economic

acceleration look at visa, just to pick one favorite growth stock, down 3.5% a lot of the faang-type names backing off on no real news. it shows you the instinct to back away from the big index names that have done so well last year and sprinkle it around some of the more cyclical areas. who knows how well that can go while the overall indexes remain undisturbed or if we have to have a little bit of rockening because of some of the wild behavior happening in smaller cap and ipos i don't know why that would happen tomorrow, because it wasn't today you infer know when that's going to happen. >> what sector looks good that hasn't run up too much average lot of them have gone up the one that i am in favor right now is the financial area. the banks have had a good run but things are lining up very nicely, particularly if you expect rates to back up for a bit. that will benefit all bank, regional and the big money

centers. of course we had good news last month in terms of the big banks, some of them being able to buy back their shares for capital ratios and it looks like all these big reserves are not going to be needed so they will start to bloe flow back into earnings i like the financials. they are a typical cyclical play and the wind is at their back and they have a lot of upside. the jp morgans and the bank of americas of the world. >> i think we've lost tom -- lost sara's mic briefly. let's move on and talk bitcoin the boom of course has helped the gray scale bitcoin trust asset soar over the last year. kate rooney has the details there. kate. >> gray scale has seen a flood of new institution ool interest in cryptocurrencies. it saw its assets rise 900% and

use it as proxy to invest in bitcoin. the company kicked off the year with $2 billion in assets and ended with more than $20 million. gray scale's bitcoin trust has become a popular publicly traded way to get exposure to crypto without winning the coins themselves institutional investors, hedge funds,an do youments and pension funds made up 80% of gray scale's inflows for the full year the surge in demand from high net worth buyers is seen as a key kell rant to bitcoin's rally to back near 40,000. back to you. >> kate thanks for that. tom, do you think that bitcoin pulls back significantly before it rallies again i know you are a long term bull. or would you be all in in the short-term how do you think its performance in the year ahead will compare with gold? >> yeah, bitcoin -- anybody who is investing in bitcoin should

expect hyper volatility, meaning a 40 or 50% drawdown in any year could half but it is no different than a s&p having a 10% drawdown. i don't think anyone should try to tactically trade around that because 2021 is the year after a havening, which is a 2017 equivalent 2016 is a havening and 2017 is when bitcoin went parabolic. this is the year that would be most similar to 2017 if bitcoin went up last year it should do better this year i would encourage people to try to stay focused long term and try not to time bitcoin. but expect big drawdowns and oh, i'm sorry on the gold side, yes, it should outperform gold. >> sorry go ahead go ahead. >> i was going to say i think younger people prefer digital gold over the yellow metal >> it certainly seems that way

what about investing in a firm like gray scale, as kate was laying out >> i think it's a great way for people to use -- to take financial assets and acquire exposure to bitcoin, either through a product like gray scale. another product is bit wise, which is founded by hunter hoarsely, but they are similar companies, where you have a chance to acquire those assets at net asset value and then subsequently sell it using the etn. gbtc is the gray scale equivalent, and -- >> barb, do you like bitcoin >> a month ago i said i don't get bitcoin. but i get the supply/demand. you only have a limited amount of supply which comes ott periodically and the demand is huge and going to increase you have got it on square, on paypal's platform. you have institutional

investigators, although that's 1% or less and you have got retail. i think there is much more to go but i still consider it very speculative, speculative because you will have draw downs last weekend i think it was down 20% before recovery. i think he is right, i think it is just going to continue to appreciate. >> speaking of a lot of action, and potential speculative activity, this week's ipo frenzy continues with two big ipos today and another set to price its offering leslie pick eert jones us. >> petco a 55-year-old slow droe indented loss making retailer is up 60% in it is debut today. posh mark has been anything but trysty pricing above its range and more than doubling in its debut that comes on the heels of payments prior affirm's near doubling yesterday a remarkable move by that company as well.

and it doesn't end here. we will get pricing from mobile games developer play teaka tonight as well as driven brands, which owns chains of auto repair shops. sources i have spoken with expect more of the same from those deals, really a carryover from 2020. >> tom, what does it say to you that a company like petco was able to climb more than 50% on its debut. it is not necessarily a tech company. it is saddled with a lot of debt it is not a brand-new sexy company. et cetera not a fintech like affirm what does it say about the environment? >> well, it does show a lot of enthusiasm part of me says that's a little alarming but we also have to keep in mind for the last ten years households saved $3 trillion 94% of it went into bonds. barely any money went into the stock market the number of stocks has shrunk in the last ten years. so i think there is shortage of equity if investors are coming back

into stocks, one of the more convenient way is to buy ipos. so this could be again just more of a sign of a regime change where the equity culture is coming back. but yes, it is obviously grossly mispriced when you see huge moves like this. >> the number of stocks may have declined but the market capitalization greatly increased. when you make the argument of a lot of savings and high amount in money market funds which other people often cite, is that as strong as argument as it perhaps could be given how much capitalization of listed equities has rizzen? >> i would say so because households save between 300 and $500 billion a year. imagine if someone is taking that money and deciding only to put it into bonds over year. in the meantime, their stock portfolio intrinsic value grows because of earnings. they are deciding to essentially sell underweight equities for the last ten years i think the world is pretty

grossly underweight stocks >> hmm tom lee, thank you for joining us barbara duran, good to see you always up next, meial ferguson on whether big tech has gone too far by bnianng president trump from social media. boughs his outlook on bitcoin. when "closing bell" comes back in just 90 seconds

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twitter ceo jack dorsey tweeting yesterday following the social media giant's decision to permanently ban president trump from its platform saying he does to the celebrate the ban and saying it sites a precedent that is dangerous meial ferguson from the hooverer institution tackles this in his latest piece entitled the tech supremacy, silicon valley can no longer conceal its power meial joins us now good afternoon to you. thank you for joining us. >> thank you, wilfred. >> it is a great detailed read the key part that stands out for me is whether social media can continue to claim they are not publishers we they take this sort of action and remove the president of the united states from their platform. what is your take on that part of the debate? >> well, wilfred, i have been arguing for four years now that there is a fundamental problem

that the legislation of the made 1990s, particularly section 230 of the communications decency act is completely an act rowist innic now that the tech companies which were fledgling or non-existent then are now the biggest companies in the world we have an acknowledgment by the course in which the public sphere or public square is now essentially controlled by a handful of companies that have such great power that they can exkplud the president of the united states from the public square that can't possibly be healthy for democracy whatever you think of president trump's actions in recent weeks i think the key point to make sheer is that we certainly knew there was a problem four years ago. but unfortunately, legislators did nothing to address this fundamental anomaly, which allows the network platforms, the biggest corporations on the planet in terms of market capitalization to say, well, actually, we are network

platforms if anything bad appears, if content that is harmful appears on our platforms but we are also publishers when we feel like kensorring or excluding content. it is a completely unsustainable catch 22 as far as i can see. >> you mentioned and you made the point in the article that despite some of the warning signs legislators and president trump failed to act in the past four years to prevent the situation that we are in now do you expected by tony fail to act in the next four years also? i guess as an added poept lawmakers those in power might look at it and say they are helpful to me while i am in power and kick the can down the road a little bit? >> i think in some ways the decisions have already been made even before joe biden is sworn in to pursue big tech through the anti-trust channel that is to say, to take actions against the big tech companies alleging anti-competitive

practices. now, my view, that is a very, very long, blind alley, because it is quite possible that these actions will not, in fact, find against the big tech companies or will find only against facebook and force it to part with what's app and instagram. but that doesn't address the completely different question of whether or not it is right for access to the public square to be controlled by a handful of unaccountable billionaires all rather annoyingly younger than me located on the west coast of the united states. so i don't think this is going to be addressed by the biden administration especially as, as you rightly observe, it's in the interests of democrats if the tendency is for the network platforms to skew to the left and predominantly to restrict conservative or right wing content. so i think we are going to waste the next four years on anti-trust actions and nothing will really change

and it is dangerous, you know, because even if at the moment the big tech companies lean left and tend to regard right wing content as offensive, there is no guarantee that will always be their orientation. back in the 1990s there were staunch libertarians, you may remember a time when twitter was the free speech tool of the free speech party they may find that they themselves are on the wrong side of the new masters of the universe >> it is hard to argue with your point that they have a lot of power. however, i think it gets overplayed, that they have silenced president trump, and they are the only ones that control the public square. i mean, twitter has, what, 20% of the u.s. population everybody has a tv twitter has not silenced

president trump. the man has a briefing room, and a press pool within steps from his office at any time so i'm not sure -- i feel like people are giving them too much power, and this criticism from the right that they have been silenced doesn't really hold up. a congressman is arguing on the house floor. about big tech, and i was watching it on national tv. >> presumably, the same argument wouldn't apply if the television stations began to exclude the president and other politicians. you see, it's illustrating perfectly that a different regulatory framework exist for the internet platforms as compared with traditional media such as television and newspapers and that's the anom aly that i have been trying to point out for all this time. it's very convenient for a company like fake or twitter to

be able to say n response to any legal action, well, no, no, we are not publishers we are just platforms. then to proceed to act as publishers -- this is a really important point, you know, sara, because the supreme court recognized back in 2017 that these aren't just private companies, that the internet is now -- in the words of justice anthony kennedy, the public square therefore, it can't simply be okay for platforms have which very, very large access to voters to decide who has access and who does not, especially if they don't do it in a neutral way but do it in a way that clearly skews to the liberal side. >> what about a broader point on this topic, meial? what about their al goes and the way that they push certain stories to certain followers do you think that that's something that needs to be looked at again and potentially changed? >> the problem is that these

enormous network platforms are insuspectivized by their business models to maximize user engage men and how do you do that we know that you do that with sensational stories, fake news, and extreme views. a quite separate program which goes back, again, more than a few years, is that our politics has been in some ways increasingly polarized by the way that the network platforms operate. but i think that's a separate issue. the key point is, particularly since 2017, since charlottesville, it has been more and more the case in a the platforms have felt that they can expand the definition of what is offensive under section 230 to determine access to the internet and the culmination of this -- it is an astonishing thing when you come to think of it is that the president of the united states finds himself excluded, particularly excluded from the

platform which he has consistently used for years to get his message to voters. i observed somebody commenting today that trump's most recent statements did appear on the the internet yes, it did, because what he said was altogether more emollient and more moderate than what he had said last week if he had continued in the kind of inflammatory language that he used back on january 6th, would the same video have appeared on line no, it would not i think we need to recognize that we have crossed a very important rubicon here when the decisions as to what is politically acceptable, politically offensible or not are made by a handful of people running the nation's largest corporations anybody who thinks that's okay has a strange understanding of the relationship between democracy a free press, and our fundamental right as citizens to free speech. >> meial ferguson, great discussion we wanted to get on to bitcoin but we are out of time, alas

hopefully you will come back son. >> with pleasure. up next, mike santoli will look at surging investor sentiment and whether that means stocks will continue to rally. as a reminder, you can always watch or listen to us live or on the go cnbc we'll be right back

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welcome back let's get up to mike for a lock at market sentiment right now. >> wilf, we always look at it. now it seals like it is much more in the foreground because it is generally looking bullish. this is the investors intelligence weekly poll of financial and advisory services. it has been running a long time. bulls minus bears, close to 50%. this is the highest range of the last several years reminds me a little bit here you go, early 2017, after an election, nubo market, the rest of it, whatever you want to call it it was not a trading trigger saying everybody is too bullish it was not aible but gives you context and lowers the threshold for the surprise that would cause the market to pull back. this is the put/call ratio, when it is lower people are much more bullish. this down here goes all the way back to the year 2000.

in the late '90s to be common to be in this range we are seemingly in a new era that looks ache the old era of the '90s upside risk appetite we will see if it turns into a contrary signal as it has been in recent years when it got this low. but not yet. >> you have been warned. up next, former xerox ceo ursula burns on the reaction to the violence in washington including the social media ban of trump we'll be right back.

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we are less than two weeks into 2021. already proving to be a historic year and not for the right reasons. president trump becoming the first president ever to be impeached twice after the house of representatives voted last night to impeach him for inciting last wednesday's desly insurrection on capitol hill many business leaders and industry groups condemned the rioters for sieging the hill, the first such breej since 1812, and many companies are pausing their political donations. joining us now, ursula burns, former xerox ceo >> good to see you >> how are you feeling about the outlook? we are in a strange place coming off the eye lens last week, the second impeachment of president

trump yet at the same time so much optimism around vaccines and growth and getting back to normal with stimulus what does it look like to you? >> i actually try to focus on the positive and i will start there with the points that you just pointed -- two points that you pointed out. stimulus -- business is still going. it's driving it's trying to make progress it's planning for the future people are investing and as soon as we get continued deployment this vaccine, another piece of good news, we have one, two, or three, better deployment of the vaccine, i think we will start to see some uptick in the economy on a more broad base so that's very good. we also have come through a completed election we have a couple of days when we can actually swear in a new president. but georgia is done. we have clarity about the governing structure of the united states. that all -- not all seats

filled that's also very good. i think that we started the year on a positive note then we got this interruption of this insurrection inside of our own company of people who just do not agree with the facts. the facts of the matter are that the election has been called fair, free, balanced election, and we have had inability for people to accept the facts on the table incited at the highest level of our country and our government and it's actually an interesting pause because who would have thought this would be the biggest issue we would have? who would have thought we would have people storming the capitol building and that that would be the news bit the news bit for the first time a black senator and a black minister that was the news bit. but it was overrun by this -- i

call it oddity in america. most of my friends overseas see it as an oddity as well even though it is very concerning >> i was going to ask about the view from abroad since you had been living in london, running a foreign company. what are you hearing from your fellow business leaders there? >> four categories, four things pretty consistently. one is horror. horror like, my goodness. i just cannot believe that this is happening it's a little bit of a stunned kind of approach, in a negative side a negative stunned it is like this is a place and this is a system that we had counted on almost like been lulled to sleep that this type of activity for this reason would not happen that's one second is just amazement at the lack of pof preparedness.

how could it have gotten that far without one of the bess-armed nations in the world able to control it the third is gloating a little bit. america is like the new york yankees. they are needed so people can beat up on them. the yankees, you need them, so people can beat up on them the baseball but now countries are saying, see, you are not as big and strong and such a moral leader as you thought you were. look at what is happening in your own country so there is a little bit of throating with the hope that we get our act together very season everywhere i go. i live in the uk i spend a significant amount of time traveling around europe people want, need, hope for a strong and consistent u.s. they know we have things on the fringes. but one thing that we have never been able to question, at least in our lifetime is when someone

gets elected you put them into power, you go through a transition, and you then go on this is, i think -- people are hoping this is just a temporary kind of a -- that we have lost our manipulated for a short amount of time that's what people are saying. >> what's your take on the reaction by social media companies. have they gone a step too far do you feel like? do you think they should be taking more responsibility themselves for the state of division in america and around the rest of the world based on the way that they push news stories to their users >> yeah, i think have they gone too far? absolutely not we don't allow people to incite violence actively. we don't want people -- we don't allow you to sit and a movie theater and yell for fire or beat up all of the people who are not like you we don't allow that kind of -- we don't condone, and we don't facilitate that type of

disruption and the social media platforms have to take responsibility, have to treat -- it doesn't matter whether it is the president or me or joe in the street if they can get a bully -- a strong bully pulpit and they can get a voice behind them that is contrary to order and law, they have to be stopped i think it is absolutely appropriate. president, whom ever, if you are using the platforms to push lies and incite violence i think it is a requirement that you take it down. i think it is a little bit too little too late. we knew there were bad stories, untrue stories -- a crescendo, this was a crescendo of a set of activities over time that we could have gotten in front of earlier and maybe should not have gotten in front of earlier. i am not in these businesses and don't know all the issues and concerns and first amendment

issues they have to deal with, but they have to be more active than they have been and definitely smarter than they have been. it's kinds of like we have given everyone dynamite and different them no rules on how to play with the dine mitt i don't think it is responsible to say i'm done, free speech takes over we need active participation by the leaders of these very powerful business tools to absolutely engage on how do we protect democracy? how do we protect broad based democracy and just not let the first amendment run over us. >> yeah. and they are private companies so it doesn't exactly apply like that ursula, i wanted to ask you about ceos broadly you have this been active in the broad diversity alliance trying to push them to put more black members on their board we have seen companies in the wake of this violence pull

political donations to lawmakers who failed to certify the electoral college results r. ceos up for the task, for the activism that clooients and customers and society at large is putting on them are you finding they are up for it and that change is being made in a positive way? >> i think they are up for it, broadly. on average, they are up for i would. i think obviously some just don't believe. so they are lagging. i am not going to name any names but some of these ceos just don't agree with the progress that's being called for. but i think they are up for it they are being -- they are leading the way -- they are starting to lead the way not being forced into the corner you know, so many examples of bad news that you have to act. some of them are taking the lead governments -- state and local governments are, businesses are as well, the literally not

support liars, not support bad people that's what their shareholders, that's what their customers, that's what their communities that they do business in are calling for. business can no longer say, my job is to make money for my shareholders, and everything else is for the government, or for the citizens or for the community. that's no longer appropriate environmental needs, social needs, educational needs, health needs, infrastructure needs, all of these needs are the responsibility of a collective of citizens and groups in the countr country, in the united states, to be responsible for. fortunately we have some -- we have on average excellent ceos that when we give them the responsibility, expectation and responsibility to participate and to be a partner around the table for solutions, they are willing and able and absolutely very skilled in actually adding

their voice to a good outcome. so i'm feeling very optimistic about in some ways the permission that's being given to ceosto start to be broader, to start the actually say, yeah, this is not good, this is not good, this is good and let's move forward i'm feel optimistic. i started 2021 feeling optimistic and i'm continuing to feel optimistic across the board. i think we have come out of a really difficult 2020. into jaw. >> you we all know this -- health reasons it is politically difficult, socially difficult what we are primed for -- if you look at day one, we had a vaccine, a series of vaccines that, with some organization we will be able to deploy from day one, we had a financial system that still worked it still works it's not great, and it is definitely not balanced. from day one we had such bad news and performance about the disparity gap that we have, the parity gap that we have creating

this dig disparity in america that people were no longer able to sit still and then we had, you know, the pick -- the peak, the tip of it is when we had people who just didn't like the outcome breaking the law and we had a pushback across the board in this country that said, no more no more. right now we have to act this part looking towards the future building for a better america taking the things that we learned over the last four years and absolutely putting good things to work and eliminating the bad things that's where we are in 2021. and i am really optimistic that if we just don't -- the board diversity action alliance is one of the examples. don't take your eye off the ball this is a nation, a great nation we have to continue to perfect it and make sure that we can live up to our fullest potentialal. >> ursula, thank you for sharing that message with us and with

the audience today we always appreciate it. >> everybody's heads up, guys. thank you. >> still the come, bank stocks have been on a red hot start to 2021 great fourth quarter as well we discuss whether you should still be long those names ahead of earnings for the sector, which start tomorrow

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kevin see freed and his son hunter gave themselves up to u.s. marshal prosecutors say they entered the capitol through a window that hunter had broken. you are up to date that's the news update this hour wilf, to you. >> sue, thanks. big banks gearing up to report results from tomorrow morning. the key things every investors needs to look out for. that's coming up next.

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bank earnings beginning tomorrow citi, jp morgan and wells fargo on deck to report. pnc financial as well. here's jason goldberg to discuss. great to see you thank you for joining us i guess the first question for this quarter for this sector as a whole is will there be reserve builds or releases. >> we don't think there will be reserve builds the top 20 banks had $65 billion through loan loss reserves in the first half of 2020 and have yet to see loan losses emerge in part because of all the fiscal stimulus we have seen through last year as well as into the tail end of the year. i think there is a potential releases just giving economic data has i think been better than most banks expected you have got additional stimulus as well. on the flip side you are cognitive of the fact that covid-19 cases continue to rise

and there are additional kind of business restrictions and shelters in places in various markets in the country netanyahu, we think the reserves is for releases rather than builds >> what will you be looking snore we are expecting a guess a bit of a messy quarter, but a lot of focus on the outlook and what these banks are planning for in terms of recovery what should we watch >> certainly in the forecast in particular the outlook is always in focus and you know, given the big reserve build on the last half of last year earnings in banking in 2020 are going to be down 30%. sharp decline. however, i think looking out over the next two years additional earnings should be in excess of 50%. a nice rebound and we think that's going to be a function primarily of lower loan loss provisions as well as share buyback acceleration as the year goes on

also as the vaccines take hold we think loan growth will pick up capital will remain robust into 2021 it could be another good year of results. >> the sector has had a great run over the last three over the last three months or so. a lot of the banks are where they were prepandemic now. is there much left in terms of up side in the shore term and do you think bye backs are as good a call as they sounded like two months ago given that share prices have accelerated so much? >> we do think the rally could have some length -- despite the service on the back part of last year, it was still the second worst for bank stocks in our 8-4 dataset. while the ones continue into this year. relative evaluations are still below historical averages. if you have it early, we think you could built a space for

expansion as capital picks up and as thingsshift from reserv to reserve releases and we see an up side trading and day-to-day earnings can sometimes be dicey protect the share bye back, look at the fed's current time, the bank, the buy back half to one percent of their shares on average in the first quarter as the year goes on, we think the restrictions get eased somewhat further and you could see that case of buy back accelerate most banks buy back five to 10 pr of their shares for this year >> jason, thank you. >> anytime >> for joining us. jason goldberg >> shares of beyond meet jumping together on back of its new partnership with taco bell coming up. ♪

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now we'll talk about the omar king, sort of, teasing the restaurant's plan to go beyond meet on a meat item item soaring on the news. closing up by nearly 14% taco bell's move comes on the heels of kfc and mcdonald's announcing plans to launch their own plant based meat items this year the fast food chain is planning to bring back its popular potato items on march 11th. they were cut from the menu last year because they caused longer lines for customers and more demands on employees when taco bell had to shift entirely to drive-through. i think it's a good, bullish reopening play here, mike, not just stocks, as they have been doing well, but they're back to the sticky videos to get people excited about new menu

motivation like bringing back vegetarians. >> it's a totally good sign that they're not just talking about taking care of our employees, etc. also i think a lot of brands are so smart about essentially reading the feedback coming through the social channels and deciding, ok, the customers want this to come back. using it just more kind of aggressively than defensively and trying to manage a brand >> i was wondering why the potato was still unpicked and under the earth rather than above ground he wants details either way, it's got us talking about it on the show i'd definitely worked. >> right >> pivoting to the markets, mike, basically the session lows, but as you said s. good breadth. >> new 52-week high ms. the nasdaq was down. we talked about the hyper concentration of this market

there were five stocks responsible for all the moves. we have the unwind of that going on right now it's in concert with yields trending higher and this idea that we probably were underexposed to the economic recovery theme now who knows how long that can go who knows if this is just for stalling a moment while the mark takes a break. we will have to see. >> mast money starts right now >> tonight's lineup, tonight on fast, talks pulling back from record highs for years on earnings will this be a major moment of truth for the rally? the setup straight ahead plus delta takes flight as the company seize a big return to the friendly skies le should you get on board later, an out of this world trade in the options market. what it is and why it shows the zie's the limit in washington's new space race breaking news out of washington.