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 exxon sinking into an

sec probe into the company after the stock's big run we start with biden unveiling his 2 trillion relief plan to bail out the economy steve, what were the headlines >> morgan, thanks, yeah. boston fred president to comment on president-elect joe biden's massive $1.29 trillion relief proposal from last night rosengren called it straight up appropriate. >> it's a big package, but i think it is appropriate. 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 an expansionary fiscal policy >> rosengren referenced this morning's much weaker than expected retail sales report and

the december decline in unemployment is calling for fiscal stimulus and expects a rough next six months before the economy turns around and delivers strong performance in the second half of the year. additional stimulus did not change his outlook for keeping rates low and for continued large-scale purchases of treasuries he's also not moved to act yet by the rise in treasury yields >> we're not going to just focus on any one yield we're going to be focused on what the over all economic impact is. so, we do have to think about how quickly the long end of the market is going up and whether that dramatically changes our expectation for the path for the economy. i'd say that the increase that we've seen to date wouldn't be enough to do that. >> rosengren joined several other fed officials this week saying despite the vaccine and expectations for a turn around in the second half, they have no plans to alter policy and also adding that is also true with his big stimulus package,

morgan, possibly on the way. >> it is interesting we did get a lot of commenten a r and some of those comments and i realize some of those comments from nonvoting members but some comments suggested that you could potentially see a taper begin to take root as soon as later this year. i realize that maybe that's not the consensus, but does it speak to the fact that there is this very active debate under way >> you know, that's a great question by the way, an astute observation and worth thinging about it that way, morgan. a couple weeks ago or beginning of last week i want to say comments by several officials who said maybe we want to think about tapering later this year and think about what happened afterwards guys like vice chair who i interviewed from the council of foreign relations i'm not thinking about that and the subsequent commentary and looks like there is an effort to

counteract those initial comments by those people who started a couple weeks ago making those noises about possible tapering. you know, and then, palo yesterday who when you cover the fed, morgan, the rule is whatever the chair says basically goes and he was pretty clear yesterday that he's not thinking about tapering. he said that's too soon to be having that discussion right now. >> you covered the fed, so we will listen to you steve liesman, thanks for joining us have a great weekend so, how will stimulus impact the consumer will it be enough as steve mentioned? retail sales falling for the third month in a row, but so far this year retail stocks seeing a bump, including the beaten down department store names what do you think? >> look, i've always looked at these stocks as though they were reopened stocks. and let's not kid ourselves. many of the names in the retail group were challenged prior to the pandemic and to a large extent estimates had been ratcheted down substantially which then gave them the ability

in many cases to beat expectations they were beating very much lowered expectations but that was enough to buoy these stocks from the late summer into the fall now they hit this point where unemployment numbers started to tick up and the weather and, of course, worse and worse news on infections and i think that's just been enough to keep people out of the stores and this is the result i think if you're a long-term investor here, you're probably in the names that are very good omni channel you're probably not focused on department stores, for example you could still find many, many big winners within the space i think retail you've got to be really specific. you don't want to own the xrt. >> it is interesting you could make this case about the data we saw this morning, as well there is essentially this bifurcation playing out in the economy and manufacturing seems to be recovering or holding up better and services not so much right now. but i guess more broadly looking at what we're seeing in the markets where the major average all poised for their first down

week or largest down weeks since the end of october how would you categorize what we've seen is this consolidation here or something more >> i think when you have a huge run which we clearly did and people look at the market and say, wow, everything is going vertical no stocks to own we reached a point where 90% of s&p names were above their rising ten-day moving average. that's as overboard as you get you get a hangover it doesn't mean we're in a bear market, again. all it means is you had to have stocks consolidate some of their gains and digest on the next run, they won't all come along for the ride. you hope that most of them do. in the retail space, again, i think it will pay to be selective. you really want to focus on the companies that have gotten apps, e-commerce and pick up in the parking lot, et cetera the companies that have done that well. i can't imagine the scenario where they take a back seat to the companies that haven't that is how i would be thinking about this if i were looking into the retail names. >> well, bank earnings continue today. we had three more heavyweights

really kicking off earning season in earnest today, you could say. jpmorgan lower despite a massive beat topping results on both the top and bottom lines the real blow out was better than expected credit and record trading revenue. citi and wells fargo also in the red but delivering more mixed results. beating on earnings but missing on revenue and also releasing $1.5 billion in reserve for credit losses. a move bigger than analysts had expected wells fargo, though, also missing on revenue and declines led by corporate and investment banking revenue. down 7% year over year i mean, wells is just, the consumer scandal stuff is just still there for wells. but i'm curious about jpmorgan because it was such a strong quarter and it is trending lower and you're in that stock, right? >> i'm in the stock and best performer over the last six months look, this is not the highest data play in the space if you're saying, oh, look at the selloff from the banks and

i'm looking for an opportunity and you're probably looking at regionals. but if you're an investor that is saying, i want to own the most dominant, the most protected franchise, what that means is you want to own the one that is investing the most in technology nobody is investing in tech like ja jamie diamon in this space when they want to own that when they can be in paypal, square, lemonade and all of these companies that have tons of roadway ahead of them. where does that opportunity come from it is coming directly out of the hide of businesses like wells fargo. for me, i really don't care if it falls twice as much as it has today. it is not attractive as a growth investor i'm looking for companies that are investing in the future and not trying to repair their errors of the past >> ipos that pop 100% and get you out of bed i'm just referencing our conversation yesterday >> i need 100% a day or else

don't even bother ringing my phone. >> okay. well, as i mentioned, stocks are on track for their worst week since october but some key names seeing some massive runups this week i think we just kind of teased that mike santoli is here to break it down >> i did want to take a look at this little bit of a split in the markets right now. russell 2000 and backing off today and the nasdaq 100 down 1.75%. remember pack in the summer which the nasdaq was this momentum vehiclet that was going nuts now it is the wall flower and thought doing as much. all about the small stuff and the new stuff and what is moving fastest. here are some of the big winners on a week to day basis what unifies these things aside from the fact that they're up? there's a story attached always a big narrative thread. gm is getting a little bit more credit for the electric vehicle. kind of maybe halo effect from

tesla and the rest bed, bath & beyond and new management and maybe if this period didn't kill it, what would? finally cannabis and senate controlled by democrats and people think that is going to be a big deal so, all that stuff is working. some of it is cooling off today. finally treasury yields on a weekly basis holding on to most of the gains since january 4th but definitely moderating and spike up on tuesday and that's come back. also something that has gone a long way and consolidating it seems, guys. >> all right, mike santoli, thanks josh, want to get your thoughts >> i think that is a really great chart that michael put up. i know michael is a fan of animal spirits and they were talking about where is all the capital for these mini bubbles coming from? well, the faang stocks which is $6 trillion worth of market cap are flat for six months. so, you have money coming out of stocks that have stopped moving and that's what is fueling probably a lot of the activities

and stories like bed, bath & beyond and when you talk about $6 trillion. i know we throw trillion dollar numbers around all the time, but this is a huge, huge pool of capital that could continue to leak out of the market cap stocks as they continue to trade sideways or even down and find the home in some of the 5 to $50 billion companies that seem to be the new leaders in this market i think there is a lot to that story and a trend that could continue for a long time it's not surprising that small caps to lead us out of a recession. happens almost every time. >> crazy i was just looking at that chart. up another 9% today. getting ready to merge and talk about animal spirits, right? >> animal spirits all over the place and more evident than ever in small and mid caps. all right, coming up, not a smaller mid cap, a large cap exxon sinking and taking the energy sector with it.

the worst-performing group today down 3%. more on that. plus, states are struggling to ramp up the vaccine rollout from the lack of doses to a lack of technology. we'll talk to the u.s. digital response organization about getting the process online that's coming next i'm made to move. but these days, i'm not getting out as much as i'd like to. that's why i take osteo bi-flex. it helps with occasional joint stiffness, while it nourishes and strengthens my joints for the long term. osteo bi-flex. because i'm made to move.

the global cdeath toll from the coronavirus as the highly transmissible variant will

become dominant in the u.s. and all as we get new reporting about the number of available doses. meg tirrell joins us with more >> a huge debate over whether the u.s. government should continue to hold back the second doses of these pfizer and moderna vaccines in order to ensure that they'd be there or just release everything all at once of course, the biden team had said on friday of last week that they were going to release everything that they had and then tuesday we heard this from secretary alex azar. >> we can now ship all of the doses that had been held in physical reserve with second doses being supplied by doses coming off of manufacturing lines with quality control going forward, each week doses available will be released to first cover the needed second doses and then cover additional first vaccinations >> guys, there was an assumption

by states after this that this would mean a lot more vaccine would become available for them to order governors are now discovering that is not the case kate brown the governor of oregon tweeting, quote, last night i received disturbing news from operation warp speed. states will not receive increased stockpiles because there is no federal reserve of doses. now, the "washington post" reporting this out today and essentially saying it's because operation warp speed had already transitioned into using the second doses and that there isn't this reserve guys, a very confusing situation and it seems like a communication problem. the one real confounding factor here, though, is we talked with pfizer ceo on tuesday who told they're making millions of doses per day and they've got some in their freezers right now that aren't being used and aren't being ordered yet. so, we're still working to get to the bottom of it, morgan. >> that's exactly where i was going to go with you and i remember hearing that interview and the comments from him tens

of millions of doses in freezers i'm not quite sure, where is the disconnect happening here then >> what we know is that there is a major problem in getting the vaccines out there and administering the vaccines we're seeing a bumpy process here and it sounds as if the states at least somehow aren't ordering all of the vaccine that could potentially be available to them but even that is confusing because you see states then like michigan, which are asking for the permission to order directly from pfizer to get more doses. so, there's some real disconnects happening in the communications here at least it does sound like pfizer is making millions of vaccines every day. they are releasing them for use in the united states and, so, the supply is growing and that really needs to be, you know, sent through the chain and put into people's arms >> hey, meg, probably a lack of leadership we don't have a national plan to do anything. testing, tracing, now vaccinating. so, it's been left up to the states some of the states tried to get

a little bit too clever so they wanted to be very specific about who they were going to give the shot to first, they wanted to do things like truck drivers and first responders unfortunately, we only had nine months to prepare. they didn't have a list of these people on how to reach them. now they'll open it to everyone and mass testing sites which should have been day one, fine the antibody shots from eli lilly and regeneron. only 25% of those have been given, nobody understands why other than every state is doing its own thing. a lot of bottlenecks and leadership issues change very rapidly over the next week is that what you are hearing from people about the lack of communication and the various break downs that are preventing arms from getting the shots? >> there is absolutely a hope that with the new administration there will be more coordination with the states. one of the big problems that we

really have been hearing about over the last few weeks with this vaccine rollout is a lot of these local leaders saying, wait, i was supposed to do this. at the county level, there is this remarkable op-ed in "washington post" or in their own words piece written from a county leader in florida that said i had no idea this was going to be my job and sort of that communication that needs to be happening and one thing we have heard from the incoming biden team is that they really want to be more involved with the states to be kind of doing things together. but whether it goes perfectly smoothly right from the beginning, probably not going to be you heard the biden team warning that is not going to happen. >> this is exactly the conversation we'll pick up with our next guest meg tirrell, thank you have a good weekend. how do we fix the problems we're seeing with the covid-19 rollout? worked with partners in 36 states and territories to wrap up the digital end of that rollout. rafael lee is director of the

health program and joins us now to share more on the challenges he's seeing and the solutions that are being implemented or could be implemented rafael, thanks for being with us today. >> thanks for having me. >> i mean, i think to sort of take a more macro level approach to this. this has been unprecedented in terms of the vaccines and unprecedented time frame in terms of development to approval, unprecedented production ramp and unprecedented logistics roll out. and it's happened despite the fact or in spite of the fact that we do have state level governments, local municipality governments and all sort of other agencies and entities that maybe aren't in the 21st century when it comes to technology and i.t. services, right so, that's like a key piece of the puzzle that i would imagine is contributing to this bottleneck >> yeah. well, so, my organization the

u.s. digital response is a nonpartisan effort that connects from the private sector to do pro bono work with government and organizations that respond to the crisis. we worked across 36 states and territories with more than 180 government nonprofit partners. everything from vaccines to covid testing and unemployment insurance through security and so forth when we talk about technology, the actual story we're talking about is delivery. that good technology enables policy to get delivered to the folks that we are serving and the solutions that we work on whether it made a meaningful difference in the lives of those people at the right time >> rafael, if i could put you in charge today, what is the first thing you would do >> communicating a plan across all levels of government is the first thing that comes to mind there is the part the public see and the part we don't see. they're all facing similar

challenges from the point of view of an individual person on the ground we see the websites that tell people when they or their loved ones are eligible to get vaccinated and where they should go and scheduling and then all the stuff we don't see, right. like the systems that track and manage inventories so we know where doses are and where sites are running low. we have to keep track of who has a vaccine and collect patient information ahead of time and decrease likelihood of no shows and more likely that people will return for their second dose we need places to have vaccination sites. in some parts of the country companies are planning in addition to the pharmacies and hospitals they're partnering with so, working across levels of government to coordinate this unprecedented effort is top priority >> one state or municipality that you would point out and say this is the model. this is what everyone needs to start doing right now? >> we don't tend to pick out

individual states or counties. but i would say that one thing that we've been able to do is connect states and counties to each other so they can learn from each other. >> i'm curious what you think of the possibility now in the midst of everything we're seeing in terms of the vaccine efforts and just covid efforts in general. when you have a president elect biden who comes out last night and unveils a stimulus plan that includes $10 billion for cybersecurity and i.t. upgrades for government how likely it is that we actually start to see some of that funding made available and some of those changes actually made. >> the funding is a really big deal i would say that technologies across the country gave a big cheer when we heard the american rescue plan includes more than $ 10 million as we've seen time and time again, policy without delivery isn't useful and what's it for the new administration is

thinking of delivery, as well as policy >> raphael lee, thank you for joining us keep us posted i know your teams are working very hard on this. >> thanks so much. still ahead, space docs rocketing higher and new etf and new filing for an etf. we'll talk to space capital chad anderson about investing in the final frontier plus, bitcoin falling as much as 12% right now. right now hanging around 36,000. rrcy brown dabs into the crypto cuen the wild month we've seen and the wild month we've seen and more after this break. which is why they're going hybrid, with ibm. a hybrid cloud approach with watson ai helps manage supply chains while predicting demands with ease. from retail to healthcare, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm.

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welcome back to "power lunch. bitcoin back in the red after a wild week of highs and lows. josh is over at the telestrator. >> the first thing we're showing you is the one month up 85% effectively a double and more than a double if we were to go back a couple days so, you are absolutely seeing a draw down today. but let's just keep come context about how rewarded people in bitcoin have been. what i want to show you, though, standard deviation let's advance this what we're basically saying is even though modern portfolio

theory came from the 1950s and this concept that risk and reward are related and you could build a portfolio with different assets that do different things at different times, you'll always have something that is more and something that is less volatile let's look at the s&p 500. this is back to mid december so, 30-day standard deviation and about o.5% on any given day that is the average move you've seen not terribly volatile. gold is actually 0.94 or 0.95. let's talk about bitcoin this is 4.4%, 4.47% standard deviation which, obviously, you're talking about almost ten x what you've seen from the s&p 500 and significantly more from what you saw from gold now, higher standard deviation and volatility, it's not a negative, just a fact about this asset class and, in fact, when you say risk and return are

linked, if you want the big returns, you have to endure bigger risk or bigger standard deviation in this case great lesson or reminder for people as they try to figure out how much of each thing do i want to own this is a pretty good way to guide yourself >> this is a great chart right here and i like you compare it against gold, too. all that volatility, though. for a trader such as yourself volatility where there can be losses and also make the money, too, with all those moves. >> we're seeing hedge funds and family offices coming into bitcoin. they have to figure out, am i 1% or 5%. what am i doing with this? this is a really helpful way to visualize the ups and the downs. >> cool. josh, thank you. >> my pleasure ahead on "power lunch" investing in infiniti and beyond more and more eyes are set on the stars as big investors bet on space space capital managing partner

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until the close and the start of a long weekend, a check on the markets right now. major averages are in the red, although off lows of the session. the low for the dow had been down 379 as you can see right there. down 88 points right now s&p is down about 0.04% and the nasdaq is also down o.4% there this is poised to be a down week for all of those major averages and the largest weekly losses since that last week of october, just to give you a sense of the movements we had been seeing in this market to start off the year energy stocks are leading everything lower and that is actually where we're going to start this next conversation the oil market is closing for the day. we'll go to leslie picker for those numbers. >> hey, morgan also, in the red today is oil finishing the day lower with wti and brent both down more than 2% on a weekly basis. prices are right around the flat line even after hitting their highest levels in nearly a year

earlier this week. prices have been rallying for the first couple of weeks of 2021 as producers have been trimming output and vaccine distribution has raised hopes for demand recovery. but today oil traders are watching china specifically as rising covid cases trigger lockdown measures, policiy slowing that recovery further. back over to you >> all right, leslie picker, thank you. exxon mobile stock taking a hit today as "wall street journal" reports on an sec probe. allegedly the company overvalued some of its assets the company responding saying the claims are demonstrably false and the stock has been on a tear recently. it is up nearly 40% in the last three months despite the big drop we're seeing today. a number of analysts, my next guest among those analysts that have upgraded exxon. upgraded back in december. roger reid, good to see you. >> hey, morgan, good to see you.

thanks >> want to get your thoughts on this whistleblower case that we got news of today and given the fact that you do have a price target of 53 and outperform reading on overweight, i should say, on exxon mobile and what this does to your investment thesis >> i don't think it really changes anything in our investment thesis. i mean, as we noted in a note we wrote this morning, you know, reasonable people can disagree on the valuation of a given asset even within a company. you know, exxon is making their statement on and we don't really see it as a major change the company had a very aggressive plan in the permian which we really didn't agree on but consistent with the way they're valuing the asset. >> roger, it's josh brown. is exxon making a mistake and not pivoting harder towards future fuel sources like shell

or bp seem to be is exxon strategically not thinking about the future enough in the way in which they're currently allocating resources, et cetera? >> you know, it's a good question, josh i think it's a consistent question across the sector who is doing the right thing it's a little too early to say we cover companies that are much more aggressive and cover companies that are definitely more careful or conservative keep in mind exxon has put an awful lot of research into the biofuels and algae side of things and staying down the liquid fuel track as opposed to going down hard the ele electroification side and i would look at it as kind of bifurcated that way. if you talk to these companies about why they haven't gone harder into wind or solar, they'll tell you that the returns aren't as attractive in those areas as they are unconventional >> companies in that space

within the next five years at the present trajectory larger market caps than the larger integrated oil the argument that there is not as much profit there, that is not what the stock market is trading on right now unless the last 12 months is an anomaly, i mean, we went through this with tesla and the original manufacturers in the auto space. do they not see that is a potential outcome here solar companies end up with larger market caps than oil companies? >> i think it was yoga berra said predictions are hard, especially about the future. >> sure. >> but what the market likes are opportunities and growth creates potentials and the issue right now on the macro front is an assumption there is not much growth and a fear of contraction. we're not in the contraction side of the story. we believe there is going to be

growth at least through the end of this decade and if you believe that, i think you'd have a slightly different view of exxon. you know, consistent with our upgrade of the name and generally positive view for the sector but, you know, high growth, potential sky is the limit growth and you see in some of the renewables i totally understand why that is attractive to a segment of the market at this point >> and, finally, i mean, just to that point you made, we're up best performing over the last three months sector in the s&p is energy. up 33% despite it being a down day for the oil and gas and energy stocks more broadly i am curious if there was one name you like the best, what is it right now >> so, the top pick that we put out was shell for 2021 in the integrated oil space and the rationale there was the company made a lot of hard decisions and we like the overall outlook for

lng which has gotten off to a tremendous start for this year, better than we would have anticipated. but it plays into that theme so, that's how we're thinking about it >> roger reid, thank you >> thank you let's go over to the bond market now rick santoli tracking all the action >> hey, josh we had powerful numbers early in the day and retail sales were on the weak side but when we came to 9:15 eastern industrial production and you could clearly see on intra day of tens that right around 8:15 central, 9:15 eastern, the market started to run up a bit and then lost a bit of its focus look at the three-day chart. you know why, on wednesday and thursday, we had 113 high yields and see that kind of two-day double and we couldn't get there today and it definitely brought in some buying yields. one positive this week that has given us a time-out on higher rates and long-dated auctions

because rates have gone up and given a concession one week of tens, you know, we were at the same level, last friday as we were yesterday. net changes about down four for the day and the week and if you look at what is going on with the dollar 89.20 low. look how much we moved matter of fact, look at the next chart. look like the dollar may close at the highest several in over a month. that definitely wasn't expected when we came into 2021 jb, back to you. >> thank you, rick, have a great weekend. stay positive. test negative and we'll see you next week. zoom video is up near ly 500 since the start of last year can one of 2020s hottest stocks keep this going. bernstein calling it one of the top picks. we'll discuss that bold call next keep it here alright, who can break this down for me? coach saban... i crutched out to the mailbox and there it was -

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welcome back, everybody. i'm sue herera here's your update at this hour. the latest numbers from the cdc show more than 1 million covid vaccinations yesterday bringing

the total to more than 12 million out of more than 31 million doses distributed so far. and today the cdc is warning the faster spreading coronavirus variant first discovered in the uk may become the dominant version here in the u.s. by march. it's believed to be roughly twice as transmissible as the version circulating here now as cases continue to increase apple stores closing in texas, north carolina and georgia. stores in california have been shut down for almost a month. the pandemic is causing a substantial reduction in the average u.s. life expectancy researchers at usc and princeton estimate life expectancy at birth is down just over one year to 77 1/2 years. the lowest it's been since 2003. the drop for black and latino populations are even bigger. you're up to date. that's the update, morgan, i'll send it back to you.

>> sue herera, thank you now over to seema mody for trading nation >> buernstein making a predictin and the stock builds on its 400% rally over the last year now on pace for its best week since october. is there more upside ahead craig johnson and daniella shea. what do you make of zoom's plans to become more of a marketplace in 2021? if successful in these three areas, where does it take the stock? >> i think it's a fantastic plan, seema. zoom was already at the forefront of the work from home movement even before it happened and as they're continuing to innovate and expand and move into the webinar arena and telecommunications, i think there is a lot of potential for growth here and i think that the general public isn't really

aware of that at this point. so, i think because the fact that the stock has pulled back so significantly from the highs it will give us a great entry point for some long-term growth. >> craig, you're the technician here what do the charts tell you? can it reclaim its all-time high of $5.68 a share >> i don't think so at this point in time. i have to take the opposite side of the trade i looked at the stock and you broke up the support line in tact and momentum and a break below 337 is going to start a whole other leg lower. i don't think this is going to be a big winner here in 2021 there is a lot of competition out here for video conferencing. zoom is great, but, again, what is really unique versus microsoft team products and others out there, i'll pan this one and you'll see a break below 337. >> there we go, a buy and a sell craig and danielle, thank you for joining me follow us on twitter for more

realtime analysis. morgan, back to you. it has been a big week for space. virgin galactic is up 25% for the week that's despite a drop right now at 6.5%. we're going to break down how you can invest in space. that name is not the only way. we'll speak to chad anderson, coming up next and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> during bull markets, many traders find themselves attracted to small cap stocks because they have a tendency t have a higher beta meaning they generally move up faster than the broader market but don't overdo it on the small caps because they're also more vulnerable to pullbacks. i'm anjona payne and schwab is the better place for traders

welcome back to "power lunch. space stocks taking off this week as arc investment ngt filed a space etf. it's fry afternoon i can speak. virgin galactic, max r technologies, and via sat all seeing double digit gains this week alone

and yesterday blue origin launched a successful test flight of its space tourism rocket blue origin is aiming to fly its first passengers as early as april on this. -- not first passengers. first people for more, we are joined by chad anderson of a firm that invests in space-based technologies. good the see you today. >> good to be here >> we are really starting 2021 off very strongly when it comes to space the first place i want to start with you is the investor side of this we did see the names in this industry that are publicly traded rally on that kathy wood news, this arc invest news this week but we have a number of names that are in the pipeline to go public as well. >> that's right. investors interest in this category is higher than it has ever been. and 2020 was a really -- a huge year for space, capping off what was really a record decade

we are looking through the preliminary data for year-end. and it looks like there has been almost $180 billion invested into the space economy over the last ten years that's up from basically a baseline of zero private investment in this sector. so a ton of growth over the last ten years, particularly over the last five years. and, you know, it's a record for -- across the board. infrastructure, despite covid there was a ton of investment into the launch and satellite hardware and of course as the world goes more remote we are seeing a lot of investment into geospatial intelligence applications. companies and governments want to get access to information and incites. >> i want to get into that piece of puzzle as well. but first, i am curious. i know you are an investor in this company, but how much of this is spacex effect and what we have seen in terms of the pushdown or the drawdown in

launch costs and just in general the attention that that has brought to this industry more broadly. >> yeah. you could say was the spacex decade they are the player as morgan stanley called them. they are the market leader to be honest, fit wasn't for them breaking down the barriers to entry, bringing down launch costs and publishing their pricing ten years ago we wouldn't be where we are today spacex is a key player they have done a lot over the last ten years but we are expecting even bigger things this year and going forward. the two big ones obviously are star link. they are broadband internet service from lower orbit and they are reaching rural areas. they have got nearly $1 billion from the federal subsidies from the rural opportunities development fund and we might see that come fully on line this year, which is

going to be big news in terms of the ecosystem and the types of companies that can build on top of that infrastructure and of course starship that's going to be taking us to mars in the next few years according to elon i am all in for that mars trip >> are you >> let me ask you a question for somebody that's more in the conservative investing spectrum but wants exposure here, because if you look at the few stocks that are space-related pure place, they are all very expensive, volatile stocks are there any publicly traded companies that have a big space component that you think the market has not yet fully appreciated where you are not making a 100% bet on space but you want benefit from some upside are there any places you would tell investors to look at. >> new companies are coming. ten years ago there was no private investment happening here i has really increased over the last five years. what we are looking at here is

really new it is going to take five to seven years for these private companies to get capital and then make their way to the public market. but, honestly, in going back, you know, tying this into the arc investment also, i mean this is a great time to be launching that etf because, like you mentioned, there is only a handful of publicly traded stocks to choose from, but we have a couple of new companies coming to the public markets over the next few months via spac i think that space companies make attractive acquisition targets for spac so we are going the see more of those in 2021. i do also think we are going to see at least a couple companies, pure play space companies going public the traditional route as well so -- so the etf's getting started right at moment where there is going to be more than -- more than a few to choose from. >> yeah. and of course we do have some of these big tech players like amazon or microsoft that are doing more space-related stuff

especially with their clouds as well chad anderson, we have to leave the conversation there for now i am sure it is only the first of many in what's going to be a big year for space thank you. thank you. >> stocks are lower today. the dow off its worst levels day. it could still be its rswewot ek since october. "power lunch" will be right back sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today. my retirement plan with voya keeps me moving forward... even after paying for this.

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just a little over an hour left of trading for the week as you can see all the major averages are lower to end the week the dow down.3%. the s&p down half a%, 37 7 and the nasdaq down .6%. one of the names that -- one of the many names i think in what is essentially a sea of red today that is down pretty significantly, spotify it's down about 6.5%. >> this stock made a record high last week. it is now down 30 points from its hi citi has been at a neutral rating the whole way up. they effectively missed it and now they are taking this opportunity to downgrade it event future to neutral. and now they are going to actual sell they are going all right we are spending money on the proceed

yum podcasts and we are not seeing a monetary return >> apple might be ready to launch its own podcast subscription service, too. pressure there next week is going to be a holiday shortened week a big week, inauguration quickly, anything to keep in mind. >> be safe out there we will see what happens during inauguration. >> it has been a great week with you, josh. thank you for filling in with me on "power lunch." >> thank you, morgan. >> that's going to do it for us. "closing bell" starts right now. >> stay positive, test negative guys, thank you wech welcome to "closing bell," wilfred frost along with sara eisen. stacks falling, let's look at what's driving the act a pullback in momentum names, recent ipos and small caps the russel down a full percent after what has been a strong week and strong one. retail signaling trouble in consumer spending. nrf data showed a surprise surge

in holiday