tuesday. "squawk on the street" begins right now. good friday morning. welcome to "squawk on the street." i'm carl quintanilla david faber and jim cramer futures are weak ahead of the three-day weekend and the market is somewhat underwhelmed, macro, retail sales, downed 2-1 ex autos and gas. the road map this morning begins with bank earnings and jpmorgan, wells and citi, pnc, all crossing the tape, plus president-elect biden's big stimulus plan. we will have details on the nearly $2 trillion plan to boost the recovery from the pandemic and of course, we're keeping an eye on ipos. a lot of momentum. there the biggest debut of the year on tap. online gaming company, after two monster debuts yesterday, carl, it just keeps going.

>> yes, what a week. let's dive right into the banks, guys. jim, a lot of moving pieces, jpmorgan of course the most important among them what do we need to understand about what they said about reserve releases and sort of the near-term uncertainty that's reflected in the reserves that are still there. >> i look at jpmorgan, like i look at all of these, citi, too, i'm just going to be tale of two cities, which is that there's before the vaccine, and then after, and citi believes it will roll out more slowly, and jpm, i'm just going to say, this is one of the greatest quarters that i have ever seen, and the stock was justifiably up, and then citi reports and then wells fargo and charlie sharp who runs wells fargo is not a promoter. he is an operator. he told it like it is, which is he is still nowhere near where he wants tobe and that's why the stock is brought down. when you have a ceo who is as blunt as charlie sharp, and he

says we're not there, you can't say he's there and i think charlie brought things down by being just -- >> but although, jamie dimon is pretty blunt as well i mean you don't get a lot of shading with him at all and they had a good quarter, right? i mean obviously, reserve releases. >> right. >> certainly helped. but you think that the tone for the banks is going to be led by wells fargo? even though we all know wells has been in a very different set of circumstances >> well, it would be wrong i mean wells is about to be, i think, the sanctions against wells, are going to go away. sharp is talking about things. but dovetail the retail sales with what happened with these guys, with all the banks, people are not spending, they are saving okay it is unprecedented savings. so i think that it actually hurt all these banks that the hunkering down is not a good

thing for a bank they need people to take a loan. carl, we have the best balance sheets that we've seen in a long time with the stimulus, i wish it were targeted stimulus because it is really the people out of work who need it because when you look at the numbers from these three banks, the people who have jobs are doing fabulous and they are not spending because there is nothing to spend on. >> look at jpm credit card spend, q3 down three, and before that, q3 was down 8 and before that in q2 was down 23 directionally the numbers are moving in the right direction. >> well, yes, but i mean actually citi's not, not as strong as that, in terms of spend, i just think that what we all kind of felt at this point was that maybe the fourth quarter was robust for finance we saw more deals. there were incredible number of ipos but it wasn't strong enough to offset even the 8% david, i still think that the

theme is vaccine, vaccine, vaccine. >> yes well, that's probably true let's not forget though, financials have been incredibly strong since really late november, sort of after thanksgiving where jpmorgan got to the buyback significantly, and we saw a huge rally off of the lows and what was a terribly performing group for much of 2020 >> and we're not reopen yet. that's the problem i mean carl's right about the progression. but everybody bought these stocks saying we got to buy them now because of the reopening that's coming and then this is a rude awakening because you find out wow, maybe i jumped the gun. >> net interest margins still plays an important role here and jpmorgan's income, net interest margin income is not going to be what it was, back in 2019, when you would imagine, rates were not particularly high, but they were higher. >> well, it's carl, it's a real wakeup call for the people who said, you know what, i've got to get in these stocks, because not this quarter, but the next quarter's going to be much better because of the vaccine. and it looks like that they're

going to give up some of those gains. they're not going to give up all of those gains because we're close to a massive rollout, typically when you think about when you think about the democrats are saying and i think biden will say we will give the money to people and we will get this vaccine done. he's going to need a lot of help and it's not just the government which obviously hasn't done a good job i think it that if you have a positive attitude when we will get jabs, you buy every one of these after they're down and a negative attitude, then you can't touch them. >> do you still -- >> we're going to talk. >> $3 billion, at jpmorgan, i just want to, we put it up there earlier, dimon's comments, does it make people wonder whether they're still quite concerned about the performance of the economy? yes, they had, obviously they had reserve releases but credit reserves 30 billion, continue to reflect near-term economic uncertainty, is that something that you think is concerning here >> i think that language was off-putting.

i would have loved to see the uncertainty will soon be put behind us. he did not say that. they're all, when you speak behind the scenes, they'll say, hey, what do you think everyone's going to be vaccinateed so we can get more bullish, meaning we're not bullish yet, and i think that that's actually a prudent position carl, you know that the country is hanging on when they can get immunized. and so are the banks. >> yup i know, jim. of course, we had dimon also say we could see a healthy economy by summer. we had powell yesterday saying we could get back to the peak fairly soon. and then jpmorgan this morning, jim, we expect 2021 to deliver the strongest year of global gdp growth in over two decades, as mass vaccination permanently severs the link between the covid virus and economic activity we remain overweight equities, commodity, and credit. so they're doing exactly what

they're saying people are waiting to do. >> yes look, these stocks are going to go down because they ran and people felt somehow that all of the commentary would be that we're about to have a happy days are here again, mike corback from city doesn't feel, that it will roll over time, and i think that is kind of, unless we get this thing under control, the roll over time will leave a lot of people, i think on the sidelines and going to make it so people jump the gun david, jumping the gun, ahead on what was an administration that kind of checked out since november, not so >> no, not at all. jim, the backdrop of course is it has been a terrible week in this country in terms of deaths from covid there is a continued concern about these other strains that are clearly here that are more transmissible. thankfully no more deadly. but still, more transmissible ultimately means potentially

more deadly because more people will get it and therefore more people will potentially die. before we get to that point, where we really do have a lot of the population immunized >> look, when you look at all of these, it's such an undercurrent, you know, the unprecedented operating environment that charlie sharp is talking about, and the required work to put our substantial legacy -- wells fargo, is why that stock is going down and it is hard to go and buy it knowing what he is saying but i'm telling people that you should buy it, after it goes down, because we are going to get vaccinated, we are, i hate to focus endlessly on it, but that's what these quarters are going to be about. so let's just wait if you want to own them, i think you can get a better chance. but the numbers, other than for wells fargo, david, they're not going to be coming down. >> i think what you want to do with the strategy, with the stock price up, get everybody short and then appeal to the

reddit crowd and then off to the races. then you can have another gamestop. >> you're saying jamie dimon is a vendor of x boxes and play stations, he would be doing better >> no, i'm just talking about, making a point about the market right now which is interesting with pockets of the market where battles are being played out short sellers and former hedge funds and the crowd you talk about so often that either watches us or seeing something having to do with us but has no idea exactly who we are. >> do you think they should get together and take out the shorts in gamestock. >> all is fair in love and war. >> it worked. >> might makes right. >> might makes right. >> when the stock sold short and gamestop, not as big as citi, jpmorgan. >> no, it's not. i was just making an allusion to it. >> david, you're the most hated guy on the boards right now. >> i am going to watch myself walking to my car. >> you were negative about something. >> i wasn't negative

trying to show a little reporting, carl. >> what people are focused on, the younger people are moving stock, the merrymen are taking stocks up, as if, i don't know, the '90s >> the late '90s and carl, it's interesting, you used to get the hate mail a few days later when we questioned valuation or things of that nature, and now it's immediate on twit s, twitter, so you get immediate reaction, but it's similar in tone. >> immediate feedback. if the key is effectiveness of vaccination, we will hear from the president-elect later on today. citi field dodgers stadium. disneyland turning into mass vaccination sites and i know you have some more intelligence on how important those kinds of venues are going to be in the months ahead. >> i checked last night, the ceo of honeywell, a great supply chain, logistics man and i spoke to dave tepper at length today, the owner of the panthers, and

he's making his stadium available. what do they want to do? they want to get aspirational, 10,000 a day, and we should just listen we should just listen to where he was last year versus now. >> we're trying to back engineer ourselves right now and that's what you have to do is try to figure it out. and certainly ruined their environment and setup right now. it's brand new. >> you talked to joe it's a good topic. but this is a game changer, isn't it >> you have to be careful because it may be a game changer so you just got to be cautious two weeks ago, you reported a virus, it was one thing and it is a different environment right now. so it is what it is. >> well, i got to tell you, now on the other side. i don't want to say he is wildly bullish, but he's very constructive, he saw this coming, he knew to get out, and now, he feels that there are pockets where you should be in, pockets of incredible, of very reasonable valuations, and i think it's important to recognize that a guy who knew that it was going to go lower

because of the virus, is now taking a more positive stance. but remember, he's also taking it nis n-hi-- it in his own hans they are saying the government is not going to do it. the way we have it set up is not going to work. we're going to take it in our own hands and vaccinate people and work with the governor and i think our hope is more teppers, more people, and more damchecks, who say we know the government can't do it. we want to work with whoever we can, give us the vials, we will get it in people's arms, and that's very, very bullish. and i think that they can make a very big difference, carl. this is not one-off. tepper and a damcheck are early. we will see in every city and they can't take it anymore and take it into their own hands and get it into people's arms. >> that is a lot for corporate america and just the private sector in large jim to take on vaccine logistics. trying to reform campaign

finance. save american democracy. i mean in addition to the quarter. i mean american business has its hands full >> they're up to it. i think that people are starting to realize, mark was right, the ceo of salesforce, i know the stocks aren't reformed, david, it's okay, business is the greatest force of social change and i think it's very new. young people understand. it old people don't. the ceos now feel it is an imperative that they get involved and do things it's no longer an asterisk now it's front and center. and i think it is rather amazing. and we all have to wake up to the idea that who is distinguishing themselves during an era of difficulty and i think it is the ceos, whether it is getting out and doing the right thing, whether it is a political donation, or solving something that government seems to be punting on, which is the vaccine, which is the most important thing that we can talk about, because if biden gets 100 million, that would be great, but he needs the teppers and the

damchecks, you can't use the public health system the public health system has 15 minutes per person waiting in a tent. 50 people a day. it's crazy tepper's going to do 10,000 a day. my money's on tepper although not to pick the panthers >> talking about solving huge issues, i thought you were talking about the climate crisis. >> i'll get to that. >> you can say the same thing as well. >> i'll get to that. >> corporate america has certainly taken more of a lead there as well. at least the last few years. that's going to change with the incoming - >> that will change with the incoming administration. which obviously has made it a center piece and part of it is economic policy not just approaching it from one side, but sort of the whole approach >> remember the late ceo of travelers, david >> yes >> he said that global warming was going to change the whole world. how long ago was that? >> many years ago. >> many years. and for flooding, so many

different things. >> late great genius who understood david, while the people on the boards don't carl, back to you. >> guys, we're going to break down the stimulus proposal as proposed by the president-elect last night in a few minutes talk about some of the reaction that it's getting this morning on capitol hill. rick santelli brought your retail sales earlier this morning and now he has more. hey, rick. >> yes, capacity utilization, industrial production, and we're not even done with those release, university of michigan coming out at the top of the hour 74.5 is the current utilization rate for the month of december, far outstrips the expectations of 73.5 and follows sequentially, 73.3 74.5 is definitely the best post-covid-19 reading that we have had, that takes us all the way back to a february reading when we're just shy of 77. now, on the industrial production side, also triple expectations, and expecting up

0.5. ended up 1.6 up 1.6 that is the best number going back to july when it was a little over four and it really does underscore the two states of the economy, and anything that has to do with kind of mining energy, the industrial side, manufacturing, all doing much better, in a covid environment, than a lot of the service sector of course, and it really gets to show up in some of these numbers carl, jim, david, back to you. >> rick, we'll see you in a little while rick santelli, a lot of macro out today. we'll dive into the stimulus proposal and more to get to on the banks this morning and we'll talk about some of the calls on the street as we get a downgrade of spotify out of citi and walmart's e-commerce chief retiring right now and more on atitfure weekh tus don't go away. n minutes until w. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile-

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>> president-elect making his stimulus pitch on television last night a lot of responses around the hill and the street this morning, jim, goldman this morning says we don't think everything in this is going to pass but we do raise our q1 stimulus estimate from 750 to 1.1. >> there you go. it's liquidity as david tepper told me, as long as you have the fed being easy, and its liquidity, liquidity sloshes around, it is very hard to bet against this market there are many places, we talked about faang, faang inexpensive stocks, so i think that what he said and what powell said versus what the tape is saying today, let the market come in, if it wants to come in, but boy, if i felt that biden's comments, with the exception of obviously some sort of soak the rich thing that he has to say, i thought what they said is there is going to be money in people's hands and when there is money in people's hands and they have jobs, you know where that money goes >> it tends to go to the stock

market. >> and 5 trillion on the sidelines and which is more than a trillion than what we had. >> it is unclear and some of those numbers may be a little, not misstated because they're correct but not necessarily reflecting exactly -- >> again, if you're a 27-year-old and you get that check and you're gainfully employed, david, those people, they come into the market now. and they love stocks and we cannot overlook that. they love them >> listen, what did you spend the last minute and a half talking to joe about at the end of "squawk box," right sports betting by the way in new jersey, you can do it on this thing. >> not in new york. >> not in new york we're over here in new jersey right now. how different is it for some 27-year-old to be betting on a game and betting on whether gamestop is going to go up another 10%? >> i have a program that of draft kings. why? because they're the same sports betting is the same as stock investing right now. stock trading. and i think we all have to recognize that and i think that as any business

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week down in about five weeks for the dow and the nasdaq, as futures are a little bit soft on the bank results energy though for the week up 75 faanawr d ay the leader today. more "squawk on the street" in just a moment. to defend against dark forces attacking your organization,

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time for "mad dash," and ready for the last trading session of the week. two minutes from now, apple is the focus. >> remember, when we used to talk about apple all the time? >> yes. >> remember when it used to be the key to this market >> yes >> well there are a couple of notes this morning, talking about iphone in china, going to be incredibly strong, and some of that is huawei's inability to produce phones, obviously a huge competitor, they don't have all the parts, remember, president trump has made huawei's life very difficult, but i think that when we see, doubling expectations, people think that the number for it, it's going to be 18 million in china, it could be double that, and goldman is raising the price target, and apple has to turn for this market to turn today, if you see apple turn up, you actually

could have an up day because a lot of stocks are going to be following the umbrella of apple. >> interesting >> yes >> now we should note two of the other largest market cap companies, or a number of them, but facebook, down 10% so far this year, amazon, only down 4%, but obviously a different performance at least for the very early going here than it saw for much of 2020. >> but you see the moffett note how these stocks have become cheap? agreeing with david tepper these stocks are no longer ten times sales, as we see, you know, david, we've seen these stocks, have you seen poshmark >> yes yesterday, up well over, what it was it 140%? >> was it for real real? >> was it for real real? no, it was poshmark. >> i'm finding a lot of stocks selling at 10, 20, 30 times sales. >> yes. >> and then facebook sells at a very reasonable, alphabet, back out to cash, sells as a

remarkable - >> yes >> yes >> yes. >> a yes man. >> yesterday, b of a, yesterday b of a made alphabet their top faang pick for the year, jim, replacing netflix from last year in large part because it has feeled up to what the overall indices have done in tech. >> and you have the ones that fall behind. how about zoom bernstein, with a conviction about unified communication. zoom has been awful. and then they did that offering. and it's been going right up carl >> so obviously, breadth a little bit negative this morning as we hang on to 3780. at the opening bell, the big board, desktop metal acquiring vision tech at the nasdaq. mobe gaming company playtika, the largest gaming ipo of the year and we will speak with the ceo later on "squawk alley," and crm among them but jpm is the

worst performer at the open. >> it is nonsensical the best of the banks. it is amazing that has happened. it has a a big run and people who see it, it must not have been a good quarter, they are wrong. it was a goodquarter it is just that the stock ran. it is very important for people to distinguish between a good quarter and a quarter that's not so good, when a cohort takes everything down. >> i know. but i do feel like we go through this almost every bank earnings season and we sit there and say these are really good numbers and then we look and the stocks are down 2, 3, 4 >> if you want a stock that's hurting today, it's walmart. >> yes >> and do you think that's having an impact >> i have had mark lorry on the show and a genius and a visionary and now the e-commerce is strong. >> and leaving at the end of the month and remember jet.com, which he bought and he took over

the entire e-commerce strategy. >> he is a visionary fantastic. >> the jet.com guy who basically put walmart on par with amazon and for him to leave is a huge loss and owning this, i'm not is happy to say that but he had a view of what would happen in e-commerce that was equal, i will say, this equal to jeff bezos. >> equal really equal >> to bezos? >> yes >> come on come on. >> you come on >> all right you who are killer of many stocks, look, i met him many times, he had a vision that we would be putting goods in people's refrigerators it came true he had a vision. david, he had a vision you think he's mo green. >> mo green had a vision, too. nothing wrong with that. >> well, he did until he got shot in the eye. >> yes >> yes

>> it's all right. mark lorry, mo green >> anyway, that does matter. and look, i understand that the tape is down let's look at tech to take it up, carl, because we will watch zoom, watch apple, these notes were amazing i cannot believe that zoom's got the zoom phone that is doing so well look at this thing back over 400. even though they did a huge equity offering. i think zoom is another stock to watch and money may be going back to old tech facebook knows really bullish. >> we mentioned earlier, jim, the sell note out of citi on spotify and pretty clear that the premium subs are not as of yet as of q3 benefitting from the investment of podcasts and the title of the report is it is not just not working >> that was incredible to get to a sell one of the things i would say about sbpotify, the whole way, with the direct listing, the street has not been behind

spotify. spotify is doing a lot of original thinking. but calling into question, spending a lot of money on getting talent, it is a first time, i mean a lot of people feel that the joe rogen move, carl, was very, very bullish and it looks like this says it wasn't that's a change, carl, in the dynamic. i want to know more about this because the stock has been a real winner and wall street has not stuck by it. i think the company is good. >> i think maybe they're moving a little too quickly at citi to make a decision about a longer term strategy? >> you agree with me that's exactly where i was going. and he is a good analyst but i think it is too early to predict the demise no, i'll never do that too early to say the company is a sale they've done so much right look at that chart and you never hear anyone say buy spotify. i'm in spotify's camp. i'm not selling it not that i own it. i wouldn't sell. it speaking of medium, more

broadly, sorry, carl, worth noting, i mean again, this is a strange year so far with the handful of trading days, a few more than a handful, viacom, discovery, andmoffett nathanso upgrades discovery and knapp two different sides here, one value, one growth, but discovery's already up 25% this year this year. viacom up 23%. i mean it has a respectable market value $20 billion. >> advertisers coming back, carl that's what is going on here you see many notes, and you know, the word, in terms of length, if advertising comes back, these stock, the so-called also-ran stop stocks will really benefit. and and i like the note. >> and moffett nathanson says despite the recent runs we think discovery and snap have opportunities to accelerate their revenues and profits that are still underappreciated by the street very bullish very bullish

>> the mark's a little out of singh, carl, with the commentary from the analysts today for certain. >> a little bit, jim energy is really, and carl, to some degree, for the broader weakness, in addition to the banks, would he did have this note, whistle-blower, we did have this note, whistle-blower note, at the permian, exxon is down 3% after hitting levels that took you all the way back to june. >> the whistle-blower complaint that they're being pressured for unrealistic assumptions, i find it's interesting, we got to look at how other companies are looking at that particular basin, that is the most lucrative basin in the world and there are a lot of people who feel that the, that the valuations are dramatically under what is going to be pumped from the delaware basin permian. so this news is a bit odd. they're saying that exxon basically pressured them but that is, i want to know, everyone else is telling me that, that is saudi arabia

>> right. >> well, it can still be, but it doesn't mean that you aren't overestimating even then >> excuse me for taking the exxon side for the first time ever but i did, i want to know more >> understood. >> listen, let's not forget. stock up 18% for the year. energy and finance have been such poor performers for 2020, for much of 2020, and then they started to surge toward the end of the year and into this new year but exxon also under some pressure from activists. we'll see whether they come to some sort of an agreement with the eshau and some of the others in terms of capital spending, and in terms of spending, and even, jim, in terms of their approach on climate, which we'd expect perhaps there will be some more emphasis on that. >> bloomberg did a great piece on how they punted on carbon capture. apparently occidental, there was something positive about occidental >> that is really saying something. that is a first in years. >> oh, my god yes. >> and when you look at exxon,

there is an interesting discussion in the fourth quarter, is the dividend out and the discussion since the year began, is the dividend safe. but nothing has really happened. going from 47 to 52. and i am suspicious about this group. i think it's the trade i think chevron is real. i think pioneer's real and i think we will hear an anti-fossil fuel assault from this government like you wouldn't believe and i think it will be paramount to almost all issues except for the vaccine. >> the other thing jim, i wanted to get from you today was the take on rates overall. and this week alone, the president-elect has said we got to do this large spending now, while rates are at historic lows, and bob ruben saying we should do an ultra long bond, something you've been calling for, i think years now >> yes >> that's one. >> it's time. >> head fake or not? >> it's time before they start going up, it's the right thing to do. bob ruben, one of my bosses at

goldman sachs, totally right, i mean i pushed gary cohn to do a 50 or whatever year. you have to say it's for something or else congress won't go for it. it has to be targeted. you can do the 50-year infrastructure and america will buy that and you could do global warming bonds and america would buy it. >> climate change. >> global warming. >> climate change. >> i mean, all right climate change >> call it what you want but i do think the climate change is worse, which is anti-climate change because they did a ground water issue. >> but you think you could do issue debt for all sorts of different purposes >> absolutely you could. >> and you could do so for long term. >> absolutely. and gary cohn did believe it in the end but gary left and i don't think that secretary mnuchin was into it, i know he wasn't into it >> you implored him to do it, any number of times during your many interviews and he just gave you the heisman. >> he completely gave me the heisman. >> actually he taunted me. >> he did. >> he kept telling you, we don't

have to do that that. >> he took his helmet off and slugged me. >> i think it is the right time. because i think rates have to go up the long has to go up a little bit. housing demand remains off the charts the kchb homes quarter was the best quarter this year, no one focused on it and that is a great bellwether of the company. toll brothers says the best market they've ever seen ever so i think eventually the rates have to go up. >> strongest market ever >> on cars, right, guys. >> i'm waiting. >> wedbush, sorry, guys, today on cars, wedbush takes tesla to 950. their bull case goes to 1250 even though i think they remain at a neutral we have a report out on electric, guys, that tesla is asking the work force to clear out the inventory of all of the existing s's and x's and an interesting thing out of reuters about the automaker shut

downs as it pertains to chips. the industry telling the wire service that they believe some of this is down to the pressure that the white house put on chinese factories. it's now resulting in obviously this downtime. >> i'm not buying that at all. i think it's taiwan semi which underspent didn't realize how much, taiwan semi is the most important semiconductor conduct ner the world and people are saying why are you focused on some little whatever taiwan semi is a $657 billion company that a lot of companies use in order to get chips. and they upped their capital spend yesterday to a level i cannot believe 25, 28 billion why? because they are the ones. it's not even their fault. i mean how could you ever have thought we would have a shortage, david, we were at, we had a glut of chips, five months ago. >> yes. >> now we have an incredible shortage of chips. who could have possibly foreseen that i don't want to blame them too much. >> no, look at the move in that stock. look at the move in the group as well >> the demand -- >> anything chip related.

>> the demand is off the charts. >> for everything. for auto chips, for pc chips, pc market is incredibly strong. incredibly strong. i think dell's a buy, david. dell's gone done dell will have a good number. >> it probably will. by the subject of mr. gelsinger, we did get the 8-k with his pay package and if he succeeds in getting the stock price up, he will be immensely wealthy, $100,000 if the share goes up 200% it aligns to a large extent with shareholder performance. five year duration roughly 75% performance-based is his pay package. and you know, moving up at various points, 20% relative to the s&p, 30% on 30% appreciation and 40%, 50% appreciation and on from there but the point is, gelsinger does well, he does really well, and obviously shareholders will benefit. >> the situation with intel versus amd, carl, everybody is all jazzed about intel and i

think that's great they've got some great leadership and everybody therefore thinks amd has to do poorly and lisa su when she comes on, the ceo, why did i sell it and oh, yeah, there is a new guy at intel, these things are battleship, they can't be turned and we will talking to gelsinger a year from now and say how is it going, and these are complex things and nvidia is doing amazing stuff. they had a great ces presentation that stock is finally gotten its mo jo back mo jo being a term that we use when we're on reddit, because david, you mojo, emojis, a lot of negative emojis next to your name on reddit >> there are you bring together and spac, and ev, it is like nuclear fission it is like putting to the uranium 235 or whatever it is to

make the bomb. it's just crazy. put reddit in and that's the fuse and boom. >> you are ready to kill the tilray deal? >> i got nothing on that why? is there something worth looking into >> i know if it is going higher -- you're really going to do this? you're going to threaten, you're going to put me in danger. >> i take it back. >> by the way, you're in league with me apparently didn't you hear? we're in this together yes. >> we're not allowed to trade the stock. >> we should point that out, carl i think every so often, especially for our newer viewers or people who watch us in other ways or a youtube stock, we can't own stocks or options or short stocks and we can't open corporate bonds and can't invest in hedge funds basically can't do anything. >> checking accounts. >> yes. >> etfs. >> and mutual funds. >> and checking accounts >> yes >> and real estate >> and restaurants >> yes >> real estate. >> we're going to reopen

i'm shooting for cinco de mayo >> we're going to reopen >> i will be there >> we're putting people back to work we're not going to tolerate this we're going back >> i hope, i was thinking of you this morning, jim, the comments out of chipotle, that they see more normal levels of dining by early summer >> and drinking. >> and i think jim will take a plunge. >> and drinking. the margins of a liquor versus that stupid door dash stakeout i like door dash. >> no one ever likes i would like to take a couple of margeies and my margi lemonade stand was closed down. >> we can't wait we're all going back on day one with you when that happens. >> yes, sir. >> in the meantime, it is the worst week for the dow and the s&p. since about halloween. let's get to rick santelli this morning. hey, rick. >> good morning, carl. yes, you know what watching equities of course, they have a big influence on interest rates and look at the

week, and easy areas to point out. one 18 yield basically has been the high yield, and if you open the chart up to march, you can clearly see that right at mid march, we hit a level of 119 that's obviously been a breaker. let's go to long chart nine years let's go back to 2012 and this is the most important chart. and see all of these important bottoms. in july 2012, july of 2016, in the mid 130s, 150s, 158, all of these bottoms are very significant. and right above us we know that we're going to be consolidating, you want to pay attention. if you look at the s&p and the chart for one month, as i pointed out earlier, you can see that the equity marks are definitely doing much more upside, much more selling pressure to the treasury complex, and when stocks take the foot off the gas, with regard to the upside, it's back of it. the real notion is what happens when interest rates maybe keep going up and stocks don't. that's something we will have to pay attention to in the future

finally, on the foreign exchange side, here's a dollar going back to a week ago wednesday, when it may the intra-day 32-month low at 90, the reason this chart is important. this is the intra-day high, we're getting close. if you want to watch that level. carl, jim, david, back to you. >> thank you, rick. still to come today, big tech facing a backlash over social media and free speech. we're going to check in exclusively with former tiktok ceo kevin mayer coming up later this morning on "squawk alley. early session low, dow down 217. don't go anywhere. competition beat us, again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday.

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keeping your oysters business growing forhas you swamped.d. you need to hire. i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at indeed.com/promo either plan to travel in 2021 or they are currently planning their travel plans right now as we speak but what they are telling us is the first trip, they are yearning for was taken away from them they are innot yearning to go t

times square they want to see their friends and family and spend time with them so mass travel is going to be replaced by meaningful travel. >> that's airbnb's brian chesky at reuters echoing what he said before, some argue out of self-interest, that travel will never return the way we knew it then. >> i think a lot of people recognize that they've sampled airbnb during this period. i think found it to be inexpensive, a relatively clean way versus, say, a hotel i disagree with brian. i think that there is going to be a happy days, post-world war ii feel. if you look at the cruise lines, they are booked up for 2022 in a lot of cases people want to go places, do things, pent up, a lot of cash and i think that they won't necessarily go back to the way 2018 was, it will be different but look out i think we are going to be on the cusp, david, of a boom when

we get immunized. >> yeah, in all sorts of different ways people just out all the time going crazy, traveling, doing anything. >> are you making fun of me? >> no, i will be at your restaurant i might even pay for my drinks. >> that's never happened >> well, it's your restaurant. i mean, come on. >> wait, i paid for a drink. >> you did. >> by the way, we do pay as i recall, we once went to his restaurant, carl and we paid for his restaurant. >> my daughter went to the restaurant, the bartender didn't know it was my daughter, he said, this place is great, what kind of tip do i leave >> no wonder we got invited. >> let's to it again so you can pay. >> we will take a break here we are back in just a minute

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♪ it hasn't been a standout week for stocks at larm but some of the individual leaders on the s&p got a lot of chatter it'sy up 18. wl ke b, oxy, intel and viacom. weilta areak back in a minute , intel and viam

we will take a break back in a minute c, intel and vi. we will take a break back in a minute i, intel and vi. we will take a break back in a minute 18 gm up 17, oci, intel and viacom. we will take a break back in a minute

trading." >> i know the departure of mark laurie was a surprise to me but the company assures me it's the right time, the infrastructure and strategy is this place and

working, still able to ven fit from his advice because there are no hard feelings and this is true, an entrepreneur at heart, entrepreneur wants to get on with the next thing. i think walmart is very inexpensive. but, look, they may say that everything's great and i am sure there is a lot of build out but i just, when you sit with mark laurie, he comes up with ideas that make you billions you want that on your team >> yeah, i was just looking at a profile that i think rico put out i hope that people think of walmart differently than four years ago. >> he changed the culture. well, they are the commerce king they are the only guy that can rival amazon mark laurie did that they didn't have that before he got there. it was a really smart move it turned out to be inexpensive because -- when they bought jet. that's how good he is. i want to believe everything is terrific i think walmart is incredibly

undervalued, carl. incredibly. >> all right how are you going to close it out tonight? >> the new companies spacs and whatever, i got upstart and porch. entrepreneur, brilliant guy. we are doing -- it's housing, basically, technology. there you go and then i got to watch to see what david does with all these stocks that i follow on the wall street bets board. >> wow jim, we will see you on tuesday. and tonight "mad money" 6:00 p.m. eastern time, of course good friday morning. welcome to south korea i'm carl quintanilla worst week for the s&p since late october as energy and banks sort of weigh things down this morning. the dow is off session lows. rick santelli has walked us through retail sales, now consumer sentiment. >> yes, business inventories for

november business inventories put in another positive another, another expansion, up 0.5% equaling expectations. this is the fifth expansion number in the series and that's important because we need inventories, we need the supply when the demand starts to pick up post-covid-19 vaccination the money ball number of the week potentially january preliminary read on university of michigan sentiment 79.2 this is a bit of a miss. and since this is the january preliminary in a couple of weeks we will see the advance and this could -- orthe final, this could definitely change. it is following a final read on december that was 80.7 so definitely we are not looking as good here should it stay at this number, 73 -- excuse me, 79.2, it would end up being the weakest since november here is something fascinating. if you look at the ip flakes numbers here, the one-year inflation, 3%.

literally a half a point higher than the last look and the five, ten-year look 2.27 points. on the current conditions that's 87.7 down from 90 and on expectations 73.8 down from 74.6 everything eased back except for the inflation hotter than expected david faber, back to you. >> thank you it is a big morning for bank earnings let's go to wilford frost. you have all three of the big ones for us. i note, shares of wells fargo down 7.5%. i know they just began the conference call there. i don't know if it's people digging deeper into the earnings prior to the call or something that perhaps was said at the top of the call, but that is notable, wells fargo's loss, given what has been generally a weak sector this morning after those numbers as well from jpm and citi. >> that call literally just

kicking off. that has been building or falling over the course of the last couple of hours as opposed to from the call itself. jpmorgan call wrapping up itself banks, the key point for the sector so far is banks are no longer adding more to protect against potential bad loans due to the pandemic. provisions for bad loans for q4 were benefits for j.p., citi and morgan only a very small initial step relative to the pvisions booked in the first three quarters of 2020 this led to a bottom line beat as they release the reserves jamie dimon said while we recorded record profits of $12.1 billion we don't consider the reserve take down of $2.9 billion to represent core or recurring profits however, if the economy recovers, this won't be a totally one-off occurrence jp morgan released 2.9 million

in reserves. they have 30 billion held. on the economy dimon said it would be cloudera the next two quarters but by summer we could have a healthy economy citi also both had strong fee income led by investor banking and trading while net interest income soft again. wells fargo as you said, david, trading down about 7% now. not only are they more exposed to net interest income and don't have as much trading in investment banking there are underlining company specific issues for example, expenses, a billion more than expected pushing the efficiency ratio up significantly. need to listen to that call now which just started to get more details on precisely why wells fargo is so much worse for the sector as a whole, these banks rallied very, very

strongly november and december and early january. so that's something to keep in mind wells fargo's cfo will be on closing bell later. >> still up 7.3% to your point for this year, even with that decline that we are mentioning charlie scharf saying our financial performance improved but the results continue to be impacted by the unprecedented operating environment and the work to put the legacy issues behind them at wells they have work to do, don't they >> yes the question we have this is when will that tone from charlie scharf, the new ceo, change? and quarter-over-quarter it doesn't happen so, you know, he has been there since october 2019 well over a year now and we haven't seen the tone change we have seen added costs continue to come through of course, we also have had them limited by the restrictions the fed placed on them in a pandemic, the one aspect that could have been good for big

banks to take market share, they couldn't do that it's been a very difficult circumstance for them. it will be interesting to dig into that call which has just started and speak to the cfo later. >> i am curious, to go back to the recapturing, i realize that they are still quite large sums of money sitting there in reserves for potential bad loans. but at a time where there is this focus on forbearance for consumers, for example, and what that's going to look like especially as we now have a biden stimulus proposal as of last night, i am curious how does it speak to how much potential more pain there could be in the near term in terms of those billions that continue to sit there untouched, and especially at a company like jp morgan where i realize investment banking and trading operations continue to be the bright spot. >> the key point is there is not expected to be more pain now in the short term that's why we have had reserve

releases there are strict rules, cecil accounting principles that dictate, and that's based op forward looking expectations where whether loans will turn bad. that important change of direction is they don't think things will get worse from here. the question is how quickly they will be able to release those reserves, get the benefits of having overprovided last year if indeed the economy improves and that's the outcome and that will dictate how quickly that feeds into the bottom line in terms of the factors that have pushed banks strongly the last couple of the months, one was the permission to do buybacks we are back up at record highs for the stocks it's not like the buybacks are the game changing positive that perhaps they could have been buying back really cheap stock if they had been permitted last quarter. one of the other factors that i think is playing, the moves in these banks eps beats with the

share price down significantly for wells fargo at least. >> a key point wilfred, thank you. president-elect joe biden unveiling a $2 trillion coronavirus relief plan last night. eamon has more for us on that. >> officially clocks in at $1.9 trillion. they are calling it a rescue plan and saying this is just the beginning. there is going to be another recovery plan after this in the biden first 100 days they say this though is the immediate need in terms of funding and economic stimulus. they are starting with this 40 billion plus piece that's designed to speed access to the vaccine across the country they want needles into arms across the country and they say that's key to all of this. there is a $1 trillion here in direct checks to americans including $1,400 direct payments to americans that pluses up the $600 from the last stimulus bill to get you to the even $2,000 number that people were talking about. they also want an extra $1,400

per week for unemployment. for businesses there is whquite bit as well. there is $1.5 billion in small business grants, also $35 billion in small business financing and $350 billion in here for state and local governments. that's important, the biden team says, because so many of the states have been hurt by the absolute evaporation of their tax revenue and are facing significant layoff of essential workers if this situation continues. the idea from the biden team is to get the vaccination process working. they say it's much worse than they thought in terms of the federal plan right now then get the virus under control and then the economy under kroll. the question is whether congress is going to go for a price tag as big as $1.9 trillion. there are a lot of things that republicans objected to last time around, guys. we'll see whether washington can turn a page here or are we going back to the same kind of fighting over the stimulus we saw in the winter

and fall back to you. >> it was a long wrestle over the h.e.r.o.e.s. act thank you very much. in the meantime, what a week for ipos from a firm and poshmark to petco, now playtika. leslie has more on that. >> what a week indeed the biggest doles, poshmark, poet co, playtika and driven plans pricing above the range. poshmark, petco trading dramatically higher on their representative debuts. we will see whether playtika and driven brands will carry that torch of aftermarket performance much of the 25 ipos this year playtika has raised the most the gaming developer sold nearly $2 billion worth of shares last night and this morning driven brands which owns meineke and take five oil change raised more than $800 million last

night. so far we have seen 24 deals priced with proceeds over $8 billion now, that's the most ever by a long shot for the first two weeks of a year which is usually a sleepy time for ipos not so much in 2021. the every ipo raising more than $100 million has priced above the marketed raek this year and on average surged 56% since going public just yesterday poshmark jumped 142% op we on wednesday affirm doubled petco, a 55-year-old indebted retailer gained 60% in its debut. clearly this is one the hottest ipo markets we have seen in a long time. are these deals all simply m mispriced or lacking discernment from investors now, it's probably a little bit of both with an emphasis on the

latter question there. either way this pricing dynamic is keeping the window wide open for now, but that could change especially as the recent deals start posting earnings and releasing stocks from walkups. that could cause the recent ipos to come back down to earth carl. >> something we have seen examples of, of course, in recent months. leslie, thanks you have a busy morning ahead. do not miss "squawk alley's" interview with playtika's cofounder. driven brands will join cnbc after their ipo at 12:30 p.m. eastern. david. >> yeah, carl, after the break, interested in banking with bitcoin? well, soon you can we are going to talk with the first federally chartered digital asset bank about that new designation. and their outlook for the industry more than that we are back after this new projects means new project managers. you need to hire.

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welcome back to "squawk on the street." bitcoin taking a breather this morning, up 900% in two years as constitutional retail investors warm to the asset. our next guest leads a company that allows institutional investors to invest. co-founder of anchorage, the first federally chartered digital asset bank diogo, thanks for being with us today. >> thank you for having me. >> let's break this down

what does that mean? you got this designation this week when we take about the first federally chartered digital bank dealing with cryptocurrencies, what does that mean? what does that enable you to do? >> well, it means that for the first time institutions have a company that has both the technology and the regulatory clarity so that they can build products in crypto that was not the case until wednesday. >> yeah. i spoke to michael yesterday, 2 to 20 billion in assets under management last year for that bitcoin trust, most institutional. you are operating and focusing on that institutional realm as well what are you seeing in terms of demand what are the type of, i guess, products and infrastructure that these constitutional players that are in large part driving the rally we have seen looking for? >> anchorage is a regulated digital asset platform

we allow coninstitutions to bui trading, borrowing, lending in all these other lock chain activities we actually have quite a few different compliant profiles we have hundreds of clients. two examples, institutional investors, think about large vc firms or crypto funds, horowitz that want to invest in the bleeding edge of crypto assets, and the other side, for example, visa wanted to build products in crypto we have seen a massive difference from three years ago where institutions were coming to anchorage to ask what they should do in crypto and now they are coming to us with concrete ideas of what they want to build on your platform and asking specifically how they can build it. >> i wanter are people coming to your platform to help them find their bitcoin? and i mention that simply because i think a lot of people have seen the statistic. i don't know if it's correct as much as 20% of so-called

stranded, people forgot their passwords? is that a real thing and what can you do about it? >> unfortunately, it's a real thing. bitcoin is a very distinct asset. it is digital in nature. it is a instrument if you think about the fact that owning bitcoin is equivalent to having -- to have this pass phrase almost like you have in these online products, you have to remember the pass phrase. remember, people are terrible at remembering their pass phrases but this is part of the reason why anchorage exists the custody technology that we have built has a proven track record for years moving billions of dollars on chain. this is part of the reason why this announcement wednesday is so important we finally have the ability for the institutions that have been sitting on the sidelines either because of safety concerns or lack of regulatory clarity, now they can actually come in and offer these services

if you think about it in 2020 we have had paypal come out with offering crypto buy and sell to their clients. we have had square do the same anchorage has been seeing a huge influx in nio banks and challenging banks seeing that the millennials want to own crypto assets and now they know that they actually have to provide these services and they are looking for a partner to do so. >> when i think of something like a bank charter i think about regulations and compliance i wonder what your outlook is in terms of regulations for the crypto market especially as a new administration in the u.s. takes hold next week. >> the national bank chatter is the heiighest watermark we can have it moves crypto from a piecemeal regime we were in to the federal level. this is actually good to have this high-water mark for crypto. any crypto companies or any companies that were in the sidelines not being able to feel like they knew what the

regulatory status of digital custody or stable coin issuance or even participation in these decentralized protocols now they know we are at the same level as all the other national banks and able to provide these services with very explicit regulatory clarity. >> so quickly what does this conversation mean not only for the price of bitcoin, but also for the volatility >> i think this means that there will be a lot more institutions participating. we have seen that in 2020. if you think about the narrative in 2017 with the price of bitcoin rising primarily fueled by retail, in 2020, three years later, you have a very different narrative. this narrative of bitcoin has a value, has really started to get into the companies if you think about square and micro strategy, publicly strayed companies taking positions in bitcoin out of their treasury for the explicit purpose of

capital preservation it really doesn't get better than this. there is going to be a lot of companies to follow suit. >> diogo monica, thank you for joining us we look forward to updates how this is progressing. >> thank you for having me. let's get to our etf spotlight. the ticker there is xle. down more than 25% over the last 12 months. the pandemic did pressure oprics and demands. one core holding moving is exxonmobil which had a nice move, by the way, lately but it's down today. why? well, news out that the sec has launched an investigation of the company. the wall street journal saying it's tied to a whistle-blower complaint last fall that alleges the company forced employees to overvalue a key asset in the permian basin. saudi arabia, so to speak, of the u.s., is t wheay many put

it "squawk on the street" will be right back

space tourism with 2021 poised to be the year it finally happens. we talk a lot about virgin galactic, but today the focus squarely on jeff bezos's blue origin people telling cnbc the company is aiming to fly the first crude flight to the edge of space in air april on the heels of a flawless test flight. the new shepard capsule atop a new rocket, that flight the company's 14th to space. lasts ten minutes. crossed the carmen line 62 miles b aboard earth onboard a dummy named mannequin skywalker and 52,000 postcards from kids. it's the first of two such exists before people potentially climb inside that automated capsule for crewed tests for more details you can turn to

cnbc.com there is a great write-up there. but also it really speaks to in general what is shaping up to be a gangbusters year for space exploration. we have another spacex launch. sir richard branson has a key test there is a big test engine fire test for nasa's sls rocket for which boeing is the prime rocket lab test this is just over the next couple of days and we do have all of these key space tourism initiatives that are looking to become reality this year, pushed back in part by covid but this year in general as well i'd also note that some of those space names that are publicly traded that ran up yesterday on the arc invest space etf filing news are also taking a breather today as well. but in general keeping an eye on

those names, carl. >> yeah, definitely going to be up to the private sector as the government has more pressing needs on planet earth in terms of stimulus spending. an exclusive interview with kevin mayer, his first since leaving disney and joining and leaving tiktok of course lots to discuss about big tech and free speech. "squawk on the street" is back stksret sst. oc a aseion lows no dad, it's a video call. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most and $0 commissions for online u.s. listed stocks. don't get mad. get e*trade and start trading today.

i'm sue herera here is your covid update. the death toll in the united states is again near 4,000 it is the third straight day it has been close to or above that

mark total confirmed u.s. deaths are approaching 390,000, and the global toll is just short of 2 million. although experts do believe that there are many more deaths that are not included in the official counts. health officials around the country had hoped that they would get an influx of vaccine doses when the federal government announced this week that it would begin releasing production that had been held back for second shots, but this morning "the washington post" reports the trump administration had actually started sending out whatever was available at the end of last month. so, in essence, there was no reserve left to send to states and this is why states are desperate for more doses in a scene being repeated in many parts of the country, long lines this morning at a first come, first serve drive-through vaccination site in north carolina as that state increases eligibility to those who are aged 65 and older. you are up to date carl, i will send it back to you. >> sue, see you in an hour.

the president-elect last night unveiling his stimulus pitch. the street and capitol hill responding today in different ways our steve liesman is going to unpack what was in the proposal as well as look at what happened with retail sales this morning hi, steve. >> yeah, carl, good morning. there is a connection. the big decline in retail sales for december is providing impetus for the stimulus plan. the 0.7% decline far bigger than wall street expected it was the decline in a row. follows yesterday's huge jump in unemployment claims. there are two clear signs the economy is weakening before the promise of the vaccine takes hold steve blitz from ts lum barred writes, timing is everything, and biden's $1.9 trillion covid relief plan is arriving just when the economy is taking a turn for the worst there is debate about the $1.9 trillion size of the plan and the potential cost, but here

is the economic thinking behind it first of all, the government has the ability to borrow cheap and could pay for it through higher growth as long as the growth they get is higher than the interest rate paid, the spending pays for itself over time. not spending results in less growth and higher deficits through worse economic performance. and people who lose their jobs, they don't get the time back that they lost so you need to act fast. a big lesson that democrats drew from the response to the '09 financial crisis was not that government spending doesn't work they didn't spend enough relative to the decline in growth from the crisis but there are potential down sides. if it doesn't work, if you don't get better growth, you end up with higher deficits, higher interest rates, a weaker dollar and inflation. not the take so far from the fed. officials held the line for low rates and massive asset purchases, but if the biden relief plan is adopted and successful, it could bring

forward the date when fed officials feel the economy is strong enough withstand some easing of the fed's monetary policy all this is fortuitous i will be talking about these subjects and more coming up at 1:00 p.m. eastern right here on cnbc carl >> steve, it's been a great week of work by you as we continue to get all kinds of pitches from fed officials. thanks. meantime, let's check in with jim stewart of "the new york times" about what the president-elect said last night. good to see you. >> good morning. good to see you. >> we have talked for a long time how the market loves stimulus when is it too much of a good thing as we watch the way in which yields, for instance, have reacted to news like this? >> well, this is definitely, i think, a much bigger number than even, you know, many ardent democrats were expecting

i think it's given the recent weakness in employment and retail sales, there is probably a good case for significantly higher spending. i think at the moment with interest rates so low where they are and the deficit not having really created much upheaval in the bond markets people have been pushing out those numbers i mean, they have been getting bigger and bigger before they start to worry about inflation and higher interest rates. now, there is more chatter going on about this. i have been hearing more lately and i think that immediate reaction to this almost $2 trillion proposal was it's going to cause trouble down the line but i think that's still a minority view. >> right i was looking at some of the responses, for example, from kevin brady. and house gop leadership and the general tone is here we go again, trying to recapture what they didn't get in the h.e.r.o.e.s. act, a grab bag of goodies from the democrats do you think that slows down

what the president-elect is trying to get? >> i don't think so. i know kevin brady and i have a lot of respect for him but he is one of the traditional deficit hawks that have been dwindling in the republican party and given the data that's come in in recent years, i don't think the deficit is going to play right now as a major political issue, although there remains a cog for every republican but not enough to really, i think, block this. i think the -- i was actually pleasantly surprised that there weren't more kind of grab bag items attached to this most of this is very targeted to covid-related problems of a finite duration, which means, you know, you can say, oh, i don't want to raise the unemployment benefits that much, but it has an endpoint and it is to address the crisis situation. there are a few things that do not fit that mold like raising

the minimum wage that would be going -- that's not specifically a covid issue i think it would be wiser for the democrats to strip out some of these, you know, these wish list things and maybe they will in the negotiations. i don't think anyone thinks that this proposal is going to be enacted word for word the way it is now. >> no. and then, jim, we go from this proposal to the next potential one, of course, focused on infrastructure something that much of corporate america certainly supports even if their tax rates go up a bit any sense at this point from your perspective in terms of how much resistance there is going to generally be to the biden agenda so to speak beyond this bill >> well, there is going to be, i think, some resistance you have got the big spender people who don't want to even spend on the infrastructure. but i think that, they blocked, you know, trump's attempts to get some infrastructure spending

going, but they are not in a position to do that now that the democrats have the control of both houses. i do think republicans will put their bodies on the train tracks to try to prevent any boost in the unemployment that makes it more lucrative not to work than to work, and they are very opposed to bailing out what they consider big spending blue states that's kind of the third wheel and going forward, i think the infrastructure pieces are quite promising. i think there are a lot of republicans that would like to see that by the way, speaking to one who lives in new york, that new moynihan station is sensational. it shows that, you know, you can actually do something. the government can do something that is effective and stunningly good looking and such a pleasant experience for anybody who is going to washington on amtrak. anyway, to me it inspired the idea, i am a big supporter of infrastructure spending. >> only 30 in the making from

when patrick moynihan actually proposed it. but -- or even more. but it is a beautiful structure. jim, you know, you follow taxes very closely we have those conversations oftentimes what about the willingness to raise corporate taxes at this point, and/or the willingness on the part of the republicans to see anything in terms of tax rates moving higher? >> i think higher taxes are going to be a hard celine with democratic control maybe some of the corporate modest tinkering with the corporate tax and certainly fairness issues, as we talked before closing some of these loopholes could, you know, raise a fair amount of revenue. but i don't think enough to pay for this ambitious second wave of legislation that's being proposed i think things like a drastic increase on the capital gains tax is just not going to happen anytime soon again i think the idea of significantly raising taxes at a time when the economy is in distress is not a sound idea

i don't think you are going to find much support tore that. so i would expect significant tax increases to be pushed pretty far down the road. >> really quick, jim, i mean, biden did last night reference the amount of wealth that the top, say, 10% has made specifically in stocks you don't think that wealth is due to be taxed at some point? >> i think it very well might. but i just feel, you know, trying to raise taxes at a time like this, i don't care who, you know, who you claim to be targeting, it's through the wealthy have done very well in the stock market, but there is a large swath of the country that's not that wealthy, but they still own stocks, and every single one of them i have talked to is opposed to raising the capital gains tax. so i think you are going to run into some stiff headwinds there. >> jim, it's going to get interesting in the coming weeks. we hope to check in with you more often

see you soon. >> thank you as we head to break, playtika co-founder and ceo robert is going to john "squawk alley. it's the biggest initial public offering of this year so far we have had quite a few of them already. not going to want toiss mthat "squawk on the street" will be right back

as big banks kick off this earnings season one strategist lays out the sectors that could be biggest winners this quarter. find out on tradingnation.cnbc.com more "squawk on the street" coming up.

competition beat us, again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. got to do something. workday! i think i got something. work... hey, rob, you're on mute. hello. [all] hey... there he is. workday, the finance, hr, and planning system for a changing world. ♪ch-ch-changes♪ new york city is severing ties with donald trump our robert frank has that story for us robert >> good morning, david new york city and maybe chicago because what's happening is that chicago councilmembers are proposing a low that would remove the trump name from the trump international hotel and tower in downtown chicago. now, it's unclear whether this

will pass or be effective. chicago's actually tried tore years to remove the 0-foot-tal trump letters from this tower. because the trump organization actually owns that property outright as opposed to just having a marketing agreement, those efforts have failed in the past now the president saying the sign is great for the city of chicago. so he is not backing down. prices for condos in that tower falling as much as 40% since 2016 with 48 condos in that building currently on the market revenues at the hotel down by a third even before the pandemic now, new york, as you mentioned, also ending its $17 million a year contract with the trump organization and stripping the name from the two skating rinks and carousel in central park as part of that contract as well as the trump golf links at ferry point. trump organization has said it will fight the decision. now, since the election, the

trump mainame has been removed m six residential buildings and three hotels, including a hotel in toronto and panama. we will see long term what effect this will have on the trump empire, the trump mname ad trump's business. >> i was calling it the wolman rink anyways in central park thank you. >> it's like the tappan zee bridge in westchester. visa and plaid calling off their $5 billion deal after protracted and complex litigation around antitrust concerns we will discuss the fallout, fintech space. plaid's ceo is going to join us right after this break

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thanks for here. >> a lot has changed in fintech, even in the years since you struck that visa deal. you look at affirm's ipos yesterday, square and paypal a with regard years. did that changing landscape factor into this decision to call off the visa deal >> well, the reality is plaid is a different business, that the world we live in, the fintech market especially is a completely different market than 12 months ago. and ultimately the decision with visa was a mutual one as we looked at the upcoming regulatory timelines it might have taken another year or more to clear the deal. but the reality is when we look at the market itself it's such an exciting time in fintech. we have seen massive consumer adoption shift where consumers are experiencing digital finance for the first time and we look at the market, look at the business, we really couldn't be more excited for the next phase of growth

>> and plaid is now a pretty big target for growth. equity investors, of course, spacs sponsors, tweeting at plaid this week. there are a ton of memes on twitter about bill ackman looking at plaid is that something you guys would consider going with a spac and if not, what's the next step from a fund-raising transaction and our focus right now is on the core business and growth and we're heads down working with our customers in the banks, to help solve this shift in consumer demand we're not focused on the longer term path. we haven't spoken to any spacs >> something that actually happened on the jpmorgan conference call kate pointed out to us where jamie dimon mentioned your company by name and not in a particularly good way, saying people who improperly use data that's been given to them, like plaid, you

can expect there will be other battles to take place here, seemingly getting ready to somehow take you guys on saying that you are not using the data properly what's your response >> it's something i would love to address for us consumer confidence has been at the core of what we do our focus is allowing the data to be collected in the way they need to permission it and take control of their financial life by taking control of their data. for us we're very excited to continue partnering with many financial institutions, as you might have seen in the past. we announced a partnership with jpmorgan for a more secure data exchange and a dozen other financial institutions for us it's a partnership between fintech and the financial institutions, and we're very excited to continue to evolve the way consumers

think about security and the financial institutions experience it. >> you mentioned you have a partnership with jpmorgan. what will you explain that he's getting incorrect and choosing to call you out by name in the conference call? >> i couldn't hope to comment for jpmorgan but we spend a lot of time and are eager, call me and solve any hesitations. across digital finance and financial services, the way they're thinking about how do we interact with data, think about scaling data and think about meeting this changing consumer demand, we're in a c change and seeing financial institutions having to fully reconsider their dig dig digital strategy we're very excited to continue with the evolution of

understanding how data can better help in digital finance >> zach, it's morgan i realize you're not necessarily looking at a merger or some sort of -- as being a takeover target again right now but i do wonder at a time the ipo market is the hottest it's been in many years if you are thinking about going public >> yeah, as i mentioned previously we're really heads down focused on growth and the back half of 2020 especially as we lock at 2021 seeing the surge in consumer demand for digital finance we're focused on capturing that excitement, that growth, and delivering the products that our customers and the financial institutions themselves need to continue scaling. while it's something we may well consider down the line we're not in an immediate rush to get to the public markets and are reinvesting in growth, reinvest in the mission as we scale for the long term. >> and, zach, it's kate again.

i have a question about debit. that was a big issue for the lawsuit against the visa and plaid merger plaid doesn't have a debit product yet. now that you're not merging with visa, is that something that plaid plans to get into? >> i won't comment on the visa side but from the plaid side we were surprised by the doj allegations. we don't build debit cards that was not on our road map and so the focus on debit from that side was a little bit surprising to me we are very excited for the continued growth of digital payments and partner with companies to help make those payments easier. the debit bit was a bit surprising to me >> and being zach, one last question from me, there are reports this was plaid pulling the plug on the merger based on

not necessarily antitrust issues, more on the price tag and what axios called buyer's remorse. any comment on that in thames of the valuation of plaid a year ago versus what you might capture in the public markets or through more m&a >> it's a great question, the decision to end was a mutual termination that we filed. as we look at our market and our company we couldn't be more excited about the growth that occurred the change in consumer behavior means that fintech is prime for another few years of growth which is exciting to us. as to what the valuation might be to things like that a heads-down on building business and over time if we have anything to report or share we will share with you. >> a case against you from the department of justice, you are now planning to debut a rival service essentially to visa in

some way that will charge less than visa does or is that not a correct assertion? >> what i'll say is we're not building a debit card competitor or our own version of a debit card that was not a thing we were building and still are not as we think about the opportunity in front of us there are many potential vectors to expand into. but the allegations from the doj on the way that we or they surmised we competed with visa was a surprise to us >> kate, thank you for bringing him to us. >> thank you so much for having me >> that was huge after the break, guys, "squawk alley's" all-star lineup begins we'll kick off with former tiktok chief kevin mayer his firstn't view since leaving disney, joining tikt aleintiokod avg kt stay with us

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♪ ♪ i saw you looking for the sid door ♪ happy friday welcome to "squawk alley." i'm jon fortt with carl quintanilla and deirdre bosa amazon's head of devices joins us as we close out consumer tech week and the former acting chief of homeland security chad wolf will join us one of the most interesting voices in streaming, there's this movement in consumer tech of upstarts nipping at netflix's heels and disney plus and tiktok are major names. >> and that is where we will start this hour. julia boorstin joins us now with kevin mayer in an exclusive interview and, julia, this is his first since taki