>> you just bought that, right >> yes, sir, right. >> good stuff. jason quick, and then brenda quick and then steve. >> zimmer bio med, upside for elective surgeries. >> brenda? >> pfizer, 11 times earnings. >> buys? >> vestas wind systems. >> all right. thank you for watching, everybody. i'm brian sullivan in for kelly once again. inflation, rising rates and stimulus, and oh, my. can the federal reserve handle this delicate balancing act with $7 trillion tax dollars on the line we will speak with the boston fed reserve chief. walk through no problem. the market is so strong that the

buyers are doing something that they have not done since before the financial crisis and what that is ahead. can somebody reboot the movie "war games" because the biden spending plan is planning to spend a lot on cybersecurity, and we will show you some names that could spend out, joshua. all of that is ahead, and right now, let's dig deeper into the markets and on a friday where it is one of the weaker weeks, mike santoli that we have seen, and maybe some disappointment around the stimulus, and what work? >> well, brian, the markets are due to have a little bit of the slippage after coming into the year hot. and a half year decline to the broader s&p 500, and the small caps are down 1.5%, and the whole week is fatigue with the mega cap stocks and hyperactivity coming off of the boil. and today, the intraday off of the s&p 500, and where we are finding a little bit of support

here around 37.50, and that is the year to date and break even level to the short term trend line. so buyers came in before people had to start to ask the question if this is a larger breakdown. and obviously, you have to see how the rest of the day plays out. and also, some of the recent hot ipos and manifestations of the speculation fervor is giving back. and you can see here the big percent gain from the ipo prices and the slide of the pash m-- poshmark, in petco. and looking at the run there and the improvement in the banking sector was clearly in prishgs br -- price, brian. >> yes, and brutal day for wells fargo in the pricing and the stocks. now, straight to steve leishman who is standing by with the boston federal reserve president

with a timely interview. take it away. >> yes, standing by, and virtually pleased to bring in boston fed president eric rosen grand to the exchange. and neither of us know when the interviews are going to be booked what the news is going to have been the day before, but in case, you the first guy out of the box that we get to ask about president-elect biden's 1.9 trillion, with the "t" stimulus plan, and i am wondering how you as a monetary policy maker feel about this proposal that size. >> thank you, steve, thank you for having me, and good to be on it is a big package, but i think it is appropriate. so, the economy is in a low right now, and we have had a series of pretty weak data, and the last jobs report highlighted a loss of 40,000 jobs in unemployment rate staying at

6.7%, and if you are looking at where it is impacted, it is really those areas affected by the pandemic, and restaurants and bars down 372,000 jobs, and amusements and recreation down 92,000 jobs, and all indicates that we need to do more to support the economy. so while it is a very big package, i do think that until we get to the point where people have been vaccinated, where businesses have been bridged and where many of the unemployed workers have come back to work, we need the expansionary fiscal policy, and to the extent that it targets those parts of the economy and those affected by the pandemic, it is the appropriate action for fiscal policy at this time. >> eric, as the fed maker, you have the dual responsibility of the fed prices, and this is going to affect you on the back end when it comes to the mandates. is it possible too much stimulus, and possible to create

inflation down the road that you have to worry about? >> so, we can't continue to spend trillions of dollars, and my expectation would be as we get closer to full employment we would get a tighter fiscal policy. so, we do have to consider fiscal policy when we are thinking of what appropriate monetary policy is, but closer to zero, we can consider this policy in the way that monetary policy can't with fiscal policy. so it is closer time for fiscal policy to be more restrictive, but we are pretty far from that time, but that time will come hopefully in the next couple of years. but i think that the mix that we have right now actually on fiscal and monetary policy is appropriate. >> when you look down the road at the forecast on the outlook and i do want to get to that, does the idea that a large

package this size, relief package this size could pass bring forward a date that you could think of a, reducing the amount of asset purchases or b, raising interest rates. >> so it is going to help support the economy, and the main problem right now with the economy is not that we don't have stimulative policy or fiscal policy, but it is that we have the wrong pandemic policy. so too many people are infected and we are being too slow to get shots in the arm. so, last night, it was made clear that they are focused on making sure that we ramp up the number of people who get vaccines. i think that economic forecasting between now and september is really forecasting how quickly do we inoculate a sizable percentage of the population, and the economy is driven by public health concerns, and that is exactly why you are looking at the retail sales and the last employment report, and until

people are feeling safe to travel to go shopping and to stay in hotels, you won't get a full recovery of the economy, and that is determined by public health. >> let me get you to drill down into that outlook, and i'm guessing that there are two distinct pieces of the outlook, and one is the next few months, and then it is beyond that when vaccines begin to be more widely distributed and walk us through the kind of numbers that you are looking at in the next few months and then what happens as we get more widespread distribution of the vaccine. >> in the next six months i would expect much lower than we anticipate because of the challenges and in getting high percentage of the population inoculated. so, i am expecting a weak first quarter, and some improvement in the second quarter. but i am expecting a strong second half of the year. now, that depending upon how quickly we are able to bring down the infection rate, and get

the inoculation going, and that is something that we don't have a lot of historical data, and there is a huge standard error of predicting that, but in the second half of the year, there are a number of reasons of why i am optimistic, and so we have a situation of where the savings rate is above 12%, and for those people who have not been badly impacted by the pandemic, they have had a lot of poor savings, because they have not been able to travel or go to restaurants, and the stock prices are up, and the real estate prices are up, and i do expect more positive payroll employment as time goes on, and so fiscal policy as we discussed is highly stimulative, and that means that the consumption is strong s and if the consumption is strong, the economy is going to be strong, and in addition, low interest rates means that the residential investment is likely to be pretty strong, and the firms are thinking differently about their investments. second half of the year, i expect it to be stronger.

>> eric, i have a broader question about the markets i wanted to get to, and you mentioned real estate, and i wanted to question somebody asked this morning and it is a great question, if the real estate question is so strong, why is fed buying mortgages and shouldn't you get out of that market, and go to the treasuries >> it is strong because we are buying the mortgages so the individuals looking to buy the house, you wouldn't have strong residential, and those things are correlated. you wouldn't have strong residential investment if we didn't have low interest rates on mortgages. so this is the time where it is very important that we have residential investment come back strongly, and so i think that it is appropriate to be buying both nds and treasuries. >> and so the 10-year yield is breeching what i would call the

psychologically insignificant 1% level. so is there a point, a level that you can give us that you think about where the fed might become concerned about the rising yields relative to what it is trying to accomplish and come in and do some form of operation to tamp down the long-term yields >> i mean, we aren't going to focus on one yield, but focus on the overall economic impact is. so we do have to think about how quickly the long end of the market is going up, and whether that is going to dramatically change our expectation for the path of the economy. i'd say that the increase that we have seen to date would not be enough to do that, and i would also say that one reason that it has not moved up more is because we are doing those purchases of long term securities both the treasuries, and the mortgage-backed securities. >> eric, you have been a fed president who has not been shy about talking about the concern of the market, and the level of

stocks. and the relationship of those stock values to fed policy, today, the market is down, but mostly it is up, and up strongly, and does that level of concern of the federal reserve monetary concern you these days? >> my financial stability concerns happens what happens when the economy is stronger than it is today. so it is not surprising to me that when most forecasters are expecting a strong second half and subsequent years to be reasonably strong, and when interest rates are very low, that means that as theset prices will be higher and that is not the same as when employment rate is higher. so my instability concerns are in a different direction right now. one of the reasons that we had such problems in march that we don't have the infrastructure, and by that i mean things like the money market funds being

appropriately regulated and the ability to make sure that the treasury and the mbs market functions efficiently even when lots of people are trying to sell, so there are infrastructures are starting to be resuming, and there are problems in commercial space, and looking at the hotel space and retail space, and there are problems in the loans, and you can see it in the cbm markets and leaching into the banking portfolios as we see the forbearance of the course of the year goes, so i am in the near-term looking at the sectors hithe pandemic, but in longer term, looking at the employment areas that were hit by the pandemic longer term, and

looking at excessive risks. >> eric, we will have to go, and i want to thank you for the appreciation for your time. and you and the boston fed have taken the lend ing facilities that were closed, and you ramped it up, and so i wanted to ask you if you have been in talks at all with the incoming biden administration about resuscitating the lending facility >> the only talks with the transition team, we did talk about how the main street program was structured, but it was not talking about what we would do but more of what we had done. >> do you think that it should be revived >> i think that the program was very, very useful and could have done a lot more lending. i think it is a little bit challenging at this stage to

recreate the program. it would require a 133 designation which requires the treasury and the board to require that we were in exigent circumstances, and we are not there right now, and this fiscal policy is targeting more funds to small and medium-sized businesses and the willingness of the federal government to provide direct aid to businesses is probably more useful than a main street lending program at this stage. >> eric, it is always a pleasure to talk to you, and i wanted to thank you for joining us this afternoon. >> good to be with you, steve. >> brian, back to you at, i guess you are at hq. >> well, i'm at the sullivan headquarters, steve leishman, which is like the leishman headquarters, and if anybody thinks that the fed is not going to keep the feds low long, they must be dipping n because every

single speaker has said it the rates are going to be low for a long time, right >> i think that you are right. i think they are playing like rope a dope, and you throw at them the stimulus and the throw at them higher rates and stimulation and higher growth and vaccines, and nope, i am not changing policy, and you are astute there, brian, to see that there is a unified front on the part of the federal reserve to party the blows against the easy monetary policy and they are keeping it the way they are for the moment. >> and i have to say that powell has put them all in the same group, and the honeybadger, they don't care. everything else, steve leishman -- >> well, they were a couple of outliers, brian, but bos stick started to talk about the outlier, and then last week, i

talked about it about, and then r rosengren, still said, no. >> and pay attention to the rates and the qe rates, and this is a bigger deal to the equity markets. so thank you, steve leishman. >> and so with a big biden spending plan out there on the congressional table, are there stocks to hit around the plan. and joining us now are the capital ceo, and jamie cox, and degus, we don't know, is it going to be 1.9 and the republicans fight back or come in at 1.6 or 1.4, and your thesis, investable areas around it, and those that include a thermo fisher for testing or cw for education and what else? >> yeah, so, what else brian, as you are looking at the

raising the federal minimum wage to $15 is first of all going to raise millions of people out of the poverty level, and this is going to increase the economy. that is good all of the way across, but we have a couple of companies out there who are already paying $15 per employees and that is amazon and costco, and those are winners, because all of the other retail companies not paying the $15/hour will have to squeeze their margins or increase costs, so those are two plays that you did not mention that will benefit from the federal increasing the federal minimum wage. as it relates to what you said with the cdw, and $350 billion is going towards the governments and another $170 billion going to k-12 in education. cdw provides computers and software for the public and

education. ultimately, this year alone, the government increased 6%. education increased 33%. so wuntsonce again, that compan going to do well in this regard, and lastly, thermo fisher, that i have the gold standard in the pcr covid testing and another $50 billion going for testing. so that is going to be a painted really good picture for the companies. >> and also, they own the freezers that go down to negative 180 celsius the store, and they are $120,000 each, and i know because i mistakingly stuck my fingers in one. and in five days not only is the president leaves, but so is peter navarro, and pro trade war, and he is also departing. do you think that this is going to open up not only obviously trade with china, because the

ports in california are at record volumes already but investable opportunities >> oh, absolutely, brian. if you are looking at the world economy as it is sits right now, the emerging markets including china are accelerating out of the pandemic faster, because they went into it first. and china had the first in, first out recovery, so you will be seeing the asian economies continue to outperform both the eurozone and the united states, and both in 2021 and maybe even into the future. there are a couple of places where the emerging economies are ahead of us and one is digital payments, and so you have some of the largest in the world, and if you are listening to jamie dimon in jpmorgan, they are talking about the fast-moving competitors changing the landscape of finance, and they are coming from asia and not necessarily coming from the u.s. so in my view, that is what we will be seeing a lot of that. but here is the thing they took from the interview that steve

did with rosengren and he said that the investors need to pay more attention to the inoculation rate than the investor rate. so the monetary conditions not only in the u.s., but around the world are so supportive of fiscal stimulus that they are probably not going to have a 1.9, but more. so people when they are making the investment decisions, you need to realize that the governments are going to fill the hole with fiscal policy better than they have in the past. >> a spread sheet 11,149,199 people as of this morning have been vaccinated and it is up half a percent everyday and starting to speed up the rate of vaccinations. and degas, so that point, jamie dimon said we could have a healthy economy by summer if this continues, and are you a believer in that >> i am. i think this is going to go over into the looking at

infrastructure and sustainability, and that is the theme going forward. >> good stuff. degas wright and jamie cox, i hope you are right, because summer sounds right. all right. a lot to do on this friday. no open house, no walk-through, no problem. what home buyers are doing again that may make some very nervous. plus, making money moves in the new year. sharon epperson is here with the smart strategies to make sure that you can retire in style. i made a business out of my passion. i mean, who doesn't love obsessing over network security? all our techs are pros. they know exactly which parking lots have the strongest signal. i just don't have the bandwidth for more business. seriously, i don't have the bandwidth.

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no activation fees, and no credit check on the first two lines. get a $25 prepaid card when you switch. nationwide 5g is now included. switch and save hundreds. xfinity mobile. well, the 2020 housing market was one of the hottest that we have ever seen, probably not surprising as everybody in big cities who had the means moved to where they felt safer. but check out this stunning stat from red pen. 63% of home buyers said they made a bid without ever seeing the home in person. they believe that can continue this year as well. now to join us to dig into this and other 2021 housing predictions is daryl redfeather, and is this a one-year pandemic

phenomena or home buying insanity or the new way? >> thank you for having me. i think it is the new way that people are buying homes. we have had the technologies like the 3d scans and 3d tours and the pandemic has pushed people into adopting that and they can put in offers much faster if they do a lot of the search online and then put the offer in when they feel confident enough to make that move. >> well, okay. so i have a lot of questions here, daryl, because the last time that we were talking about this was 2006/2007, and i said that we are doomed, because everything is going to collapse, and then of course, that is what happened. so is this that again or more of a technology change and less panic buying that could get us into some trouble again? >> well, a lot of it has to do with how many people are moving right now. if you are move nog suburbs or moving across the country, it

makes a lot of sense to do the searching online because to get on a plane to see a home is imp impractical, and so if you can put in a offer, you have the big advantage, but we don't need to ring the alarm bells right now, and a lot of it is natural demand of people wanting to move. >> but, okay, and i understand, and daryl, the tools are incredible it is a totally different world than 13 years ago in terms of the way that technology works, but homes are living, breathing things. right. the floor creek, and you didn't realize that the bathroom ceiling is quite so low, and maybe that is my house, but you get the point, daryl, that the buyers, and don't you need to physically get into the home to test drive it in a way >> well, what some buyers are doing is to have the agent to go see the home in person, and do a

video call at the same time, and the agent can put the phone up to the floor so you can see that skid on the hardwood floors or look at the ceiling and tell you exactly how high it is, and so there is usually somebody going to see it in person, but people are relying more and more on that, because they tontdon't wat be the one to travel and see the homes they are interested in. >> and daryl, for obvious reasons, we have all been focused on covid and the pandemic, and covid is going to be gone at some point sooner than later hopefully, and demographics are destiny, and we have the greatest demographic tailwind in the history of the united states, and 85 millennials in the united states, and the first of whom are going to be turning 40 this year, and 10 million people bigger than the baby boomers and covid might push the plans forward and how much of a millennial wind is going to be beyond housing in the next couple of years? >> with remote work, a lot of people are realizing that they

have more homeownership opportunities available to them. so if you are moving from a place like seattle where i am from to wisconsin where i moved, you will see that homeownership is a lot more attainable, and affordable if you can bring the salary with you, and that is going to open up more homeownership opportunities, and people leaving the cities and the condos behind and the rentals behind, there is a lot more condo inventory on the market, and those are great starter homes for the young people looking to buy a home in the city. >> you are in sconi now, daryl >> yes, williams bay, wisconsin. >> well, i spend a significant amount of time in wisconsin myself, and i look forward and we will hang out on the la mars cheese castle or at some point. >> that sounds great. >> really appreciate that. and lou perine's gas station there in kenosha. look forward to that. looking past the headlines and you will see that the new

covid plan is not focused on vaccine and stimulus, but also at one of the biggest threats out there, cybersecurity. we will look at the numbers and the names that could benefit from a potential $9 billion infusion. and the under the radar name that has jumped 20% this week without a lot of fanfare, and who is your stealth weekly winner i am told that the show calls it the friday find. we will reveal it to you. bitcoin is down 3500 we will be back after this.

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all right. welcome back. this is how the friday money looks in the markets and here they are in the red. this is the dow industrials coming back and they were down over 300 points at one point and yesterday at the end of the show, we talked about how there is a big options day, and on those days we see more volatility and often times ending in the red, and that starts at 1:00 or 2:00 and that is when it hits and rolls over and has to do with the options hedging and gamma squeezing and things that i don't want to talk about, but the dow is coming back 80 points right now, and we will see if we can power back. and health care, and comm services and utilities the and real estate in the green. and united is leading the declines there, and united is down but not as much as it was off 4.5%.

many of the week's big gainers are pull back today including a name like an etsy, one of the hottest stocks in the market, and online shopping, and lot of of that for masks which etsy no doubt sells a lot of, and down 4%, and 15% gain on the week for that stock. and check it out, bed, bath and beyond is a big stock story, and that, those shares are down 5%, and not as much as they were after the heavily retailer rallied more than 40% this week, and they scaled back and maybe the shorts are put back ons, an we are seeing them back down 5%. step back on the stocks, and cnbc news update with sue herera. sue? >> thank you, brian. this is what is happening this hour, everyone. there are now more than 2 million confirmed deaths of covid worldwide. nearly 1 in 5 has been in the u.s. even as vaccination efforts pick up speed, the number of new

deaths remains near record levels. nancy pelosi says that members of congress may be prosecuted if an and/or arrested if any members of the capitol helped out and that they need to be aware of domestic threats. muriel bousbowser says that there is going to be a new normal after the riots. and that 200 people have been identified after the attacks an more than 200,000 tips and over 200 arrests. on february 12th, the deadline to file returns is april 15th. to speed up the return, the irs is urging people to file their returns electronically. you are up to date, and good to see you, brian. >> thank you, sue herera, and i

look forward to seeing you in person one day. >> one day. >> hey, it is going to happen. we will get there. and time for the friday find, and that is the check under the hood of the big stock mover that did not get a lot of attention this week or so, and this week is a tasty one. taste shack, the shares are down, but if you not been paying attention, the shack is up 20% on the week, hitting the all-time high, and the company is giving the upbeat sales outlook of four days ago, and many closed and fast food is the only option for many, and it is booming along with shack. look at the weekly sales numbers per shake shack store. in the second quarter, the average store had $45,000 in sales and in the third quarter, $58,000 and fourth quarter, $62,000 per store per week. now, factoring in the average ticket and call it $25, and that is about 700 additional customers per week, and of course, with this booming fast

food, also some growing health worries down the road, but hey, for today, that is the friday find, and the investors are having a good week. coming up, what is the best way to maximize your retirement dollars in the still scary and uncertain times? well, do not fear, because sharon epperson is here. and covid is pushing many smaller colleges to the brink, and how one school is dealing with its own dire financial situation.

>> another big story involving exxonmobil and shares are down at one point and down more than 5% and a slight bounceback this afternoon and it is coming after a report this morning that exxon mobile is being investigated by the zez and "the wall street journal" says that the investigation stems over a claim that exxon may have purposely overvalued a key oilfield in texas. the story says that some employees say they are forced to use unrealistic drilling assumptions on the field that would make it look like the field was worth more than it truly was at the time. worse, the general reports that the employee who stepped up to

complain was ultimately fired. exxon did responds in the last hour writing this, quote, the claims made by an alleged whistle-blower and reported by the "wall street journal" are demonstrable false, and actually and full reports are represented by the permian and actual have been demonstrated to the communitiment they will not discuss the job status of individual employees, but whatever the beef with "the wall street journal" in the story may be the allegation comes at a rough time for exxon investors and right when the oil is on the rise, tanand analysts are finaly more bullish, and four upgrades already, and this is as they watch the 7% dividend, and today, one of the worst big cap stocks today and keep an eye on xom. saving more has long of course been a top financial resolution for the new year for millions of families, but yet some americans may try to reach

that goal a little bit differently this year. cnbc personal correspondent sharon epperson is joining us with more. sharon >> well, brian, about 40% of people say they'll be in financial survival mode this year. focused on just dealing with the day-to-day money matters according to fidelity, but many workers are trying the figure out the best ways to keep putting money away and maximize the retirement savings. >> reporter: 31-year-old angel tran works in cybersecurity, and her main focus is her own economic security. >> my top goal for 2021 is to be better about investing. >> she is saving as much as she can in the retirement accounts so she is well prepared later. >> i have to play catchup, and i can max out the investments. >> the most you can contribute to an ira is $6,000 and you can

max out at $19,000 in the 401(k) and you can go up to $6,500 catchup over age 50. >> it is bigger risk, but it is a return. >> and the author of "not your money, but your life" and figure out what you can control in your financial landscape. >> where you pay to invest and where you put those investments and what type of accounts you invest in. >> and then build on what you already own. >> that is what tran wants to hope to have. >> i want to retire with a lot of money and be financially free. >> roger ma says one way to become a more independent

investor is to buy the funds that make up a target fund, like national fund and international fund and stock fund and buying those investments on your own may give you handle of investing while making sure that your accounts are diversified. >> sharon, iwon't let you go just yet. people are asking for a friend, and if people have more money than they can put away beyond the 401(k)s and the iras and the two most well known, other tax-advantaged ways to save given that certain taxes may be on the rise? >> well, this is a good one that people need to look fourth. if you have a high deductible health plan, look into setting up a health savings account, because it is triple tax savings and you put in the contributions tax free, and the money grows tax-deferred and you take out the money in retirement tax free and you to use for it medical expenses or health care

expenses, but keep in mind, those are the most expensive and the highest expenses that many retirees have, and this is a great way to save for retirement, and you can pay for the medical expenses now if you need to, but if you don't need to, you can invest that and then you will have that money to pay for expenses in retirement for the medical care. >> all right. good real world and practical advice for taxes being a hot topic this year. sharon epperson, have a great friday and take care. >> you, too. >> and of course, a lot more to this than just a two to three-minute tv segment so go to cnbc.com/invest in you to read more about that. all right. coming up, 170 billion for schools and 50 billion for covid testing and 9 billion for cybersecurity. we will look at what joe biden's spending plan might mean for cybersecurity stocks and which ones might benefit you the most. and cnbc's "american greed" is back. the first episode will look at the trials of michael avenatti

and remember that he dominated the airwaves and crimes ranging from tax evasion and trying to extort nike. that is going to air january 18th, 10:00 p.m. eastern. we will see you right back on this show in two minutes. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪

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all right. welcome back. and one potentially overlooked of joe biden's spending plan is going to be on cybersecurity, and his rescue america plan includes $9 billion to help fund the infrastructure agency, and that going to give a boost to stocks that were on a red hot run this year. and one-year performance palo alto 51%, and fireeye up 28%,

and zscaler, and there is likely to be more room to run on these stocks, and welcome in thing in manying director of equity research at web bush securities, and dan, how much of that price performance that we showed was on the expectation of money thrown at the sek ter already in the wake of the big hack in washington, d.c. >> well, it is a great question, because the solar winds hack, and it is one of the biggest black eyes that we have seen of the cybersecurity sector ever. this is just, and we are only in the first or second inning of this playing out. looking at the spending incremental spending last night $9 billion, that is a jaw-dropper, because it is going to add fuel to the terms of spending, and we are talking about what we think could be 25 to 30% increase in spend across federal and i think that biden came out swinging on cybersecurity of what we saw on the solar winds hack, and

smarter moves will benefit a handful of these players front and center. >> and who are the handful >> well, i think that front and center is telos and they federal played a lot of the federal agencies and zscaler has heavy exposure to the federal government, and also some names from the re-rating perspective, you could see growth potentially in some of the names going up 40 to 50% in terms of what we are seeing not just on the federal, but across the enterprise given the sophistication of the hacks of the solar winds is what i think is going to be the first step of the massive spending increase. >> dan, pallontier is not there, and where is that? >> well, i do like it, but what we are seeing in terms of our

checks it is more zscaler or others because they are potentially benefiting from what we have seen with the hack, and with all tides, the all boats will rise. going into this year i still think a lot of these names reevalulations continue to stress underestimating numbers by potentially 10%, 20% >> are they all kind of the same or literally critical differences between a zscaler and a palo alto that we need to focus on >> zscarler are taking everythin to the cloud

paloalto and you have a firewall existing as well as moving to the cloud. a handful of three to five niche players and you look at a sale point attenable and the golden child here in federal they play in a lot of the black ops and more dod spending. that's why in our opinion this is still an under the radar sector even though the stocks have to move, i think it only just started >> yeah, good stuff, dan i have big names there and part of the plan that may be overlooked a bit, dan. have a good weekend. thank you very much. >> you, too. all right, still ahead, some colleges in crisis, the pandemic wreaking havoc on enrollment and funding. we'll take a look at a state school that had to slash its budgets while students stay home. don't forget, you could watch us live anywhere while you're using the cnbc app. don't have it, you can download it today we're back right after this.

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all right. welcome back to "the exchange. the pandemic pushed many colleges and university to the brink. with smaller, regional schools being vulnerable scott cohen joining us with a

look at one such school and what they're doing to come back scott. >> yeah, brian, one of those schools is the university of california santa cruz. before the pandemic as many as 20,000 students roamed the campus nestled in a redwood forest overlooking monterey bay. today it is pretty much dead, nearly all instruction is virtual. >> i really feel like my college experience was kind of taken away from me i feel like a lot of students feel like this, as well. >> they felt better over the administration building, as well, where they say support from the state this year is cut by some $20 million and with few students on campus that is just the start. >> it doesn't include the other parts of our budget, which are tuition and fees that students pay, research grants and also our auxiliaries which are our housing, dining, parking >> altogether a nearly $160

million revenue hit out of an $830 million budget going into this year. nationwide, moody's projects revenue losses of 5% to 10% this year and enrollment declines at 60% of public universities and 75% of private schools now, the university of california system of which uc santa cruz is a part, just announced a return to on-campus instruction this fall but right now, brian, the fall seems a long way off >> it is, but right now is when you have to start planning so, what, if anything, do we know about what high school seniors are planning for the fall i know myself, scott, and i'm sure you do, it's a really, confusing hard time. some of them are thinking i'll take a gap year and just do a post-grad year they don't know what's going on. >> and a lot of them are just kind of stuck in their tracks right now. a survey by an outfit called carnegie and it said that only

one-third of students had applied to all of their choices. so, they're sort of holding back now waiting and seeing the hope is that we get through this by the fall >> yeah, scott cohen, thank you very much. by the way, banana slug no known predators was a motto they had scott, thank you that does it for us on "the exchange" this week. stick around for mega sites from stores to pharmacies could vaccine rollouts look very different across different parts of the country we'll get a look at how they're unfolding digitally next on power lunch. that's after the break we'll see you monday have a great, long weekend

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claim your seventy-five-dollar credit when you post your first job at indeed.com/groomer welcome to "power lunch" and happy friday i'm morgan brennan josh brown is joining us for the hour. here's the 2:00 take out jpmorgan and wells fargo, we'll tell you what the rough start to that earning season could mean plus, states are struggling to ramp up the vaccine rollout and why the digital response in the u.s. has been a crag and what can be done to speed it up later exxo