just hours time. the bidens are expected to arrive at saint matthew's church shortly for that we should check very quickly on the markets ahead of all of this we've been watching the dow which is indicated up almost 100 points right now we've seen green arrows all through the morning as wall street awaits. >> there's air force one. >> eyes on washington this morning. not on wall street. >> on wall street as well. and there is the plane. >> the plane is in the air. >> the plane is in the air air force one. for that last trip for president trump. that does it for us today. make sure you join us tomorrow but right now, "squawk on the street" will be picking up coverage it is an historic day, a transfer of power, the president departing joint base andrews with about three hours to go until joe biden is sworn in as the 46th president of the united states the president-elect now at a church service, with kamala harris, who will become the first female vice president.

good wednesday morning welcome to a special edition of "squawk on the street. i'm carl quintanilla with jim cramer and david faber with features relatively solid this morning. jim, it's been a long road to this day we've talked a lot about election risk over the past few months but we are about to witness what america's famous for, that is a pea peaceful orderly transfer of power. >> i think we're all beleaguered. a transfer of power, coupled with a well defined plan to give us vaccines as they roll out will make it so this market can go up tremendously everything else, i think, is just, i'm not saying, it's irrelevant, but you can't get this economy open until we figure out how to get the vaccines from pfizer, and from moderna, into our arms and once the president's in, and there is a fine plan on that, a defined plan on that, i think there will be rejoicing. right now it's catastrophic and chaotic and anything that indicates order will send this

market higher, david >> we're talking about 100 million vaccination, in 100 days >> yes >> and that's been the target now, and so he will be held to that but to your point, jim, there's going to have to be some significant changes, it would seem, in a way the vaccine is administered if they're going to be able to successfully hit those targets consistently, a million people a day. >> where are all of the organizations that came on and told us that we could just get appointments what happened to them? why are they not coming on why isn't walgreen's coming on and saying listen, man, sorry. how about mckesson where is the bottleneck? we know they were making millions if we were to follow a vial from pfizer to wherever the heck it goes, i think we would find it is taking a circuitous route, carl, that does not put it in our arms and if it did, if we didn't have to rely on all sorts of people to sign up for it and i think that we would say now

there's a path, now we can get there and that would be an incredible part of a new inauguration, new president. >> jim, i'm curious, if we are going with the narrative, the course that this is now joe biden's pandemic, how much time does the market allow him to demonstrate that daily vaccination rates are in fact accelerating is this a thing that the market is willing to wait a month for obviously the administration is going to try to lower some expectations and say look, we've got to get into the agencies first and find out exactly where we are, with the data that we've maybe not been able to see in the transition >> i think that because of the overpromise of the 100 million, i think that it's going to be a clock that is unlike any we've ever seen. where there is a belief that right now, there is a plan, david, when you set out those expectations, i think the clock starts at noon and it is not going to be

anything that can be avoided it is going to be front and center, more than anything involving cooperation, with congress, and more than these executive orders that are going to maybe return the, i don't know, how about the arctic natural wildlife, are we going to keep that, you know what it is, david, it is clock ticking, so that our grandparents, our parents, and us, are going to get something in our arms and we're going to return to the way things were, not exactly in 2018, but close. >> i'll take 2019. for that matter. >> that's a boom year. >> yes >> jim, we focused on it we will continue to, in terms of the rollout of the vaccine and you're right to obviously point that out and by the way yesterday, during testimony, janet yellen, a number of people pointed to that as well, as being thekey, firs thing to deal with is the pandemic, and then everything else will follow. >> do you think, david, it's time for someone to come clean, and say where the vials are? in each state? i mean pfizer and moderna,

they're not just, they're making things, and they're making millions and millions of vials, but what happens to them after they leave >> i don't know, jim >> does anyone >> i thought that we knew where they were. you're telling me we don't >> kind of >> okay. >> i mean i think it's not a secret i think it's just wide open. i wish, i'd like to hear from mckesson wouldn't it be great maybe they know where it is. maybe merlot at cvs knows where they are. >> in three hours we have a new administration that will be responsible for all of these things and i know what jim is talking about where you had the mayor of new york say by thursday the city will run out of doses even though many people have appointments to be showing up to get it so you hope those kinds of things are resolved across the country, if in fact there are shortages of doses that are supposed to be put into people's arms, as they have been

successful, at least hopefully in getting appointments to do so >> a couple of bright spots, guys, this morning, one is that pfizer and biontech did public some data that suggests that the vaccine, as it exists now, does elicit an immune response in the u.k. variant we've been looking for some numbers on that. and the other, jim, along with the other executive order, is the president-elect will sign on his first day, numbering about 15, one of them will create a covid response team that reports directly to the president. so maybe the compression of responsibility, that you've been looking for, will yield some results. in the not too distant future. >> i mean, look, there is a level of foolishness about the idea that there are people who can handle it, that they really can't, the facility i went to, i don't know,can they do 100 a day? it's not clear we need to have mass inoculations a lot of people in business recognize that we're going to have a business, maybe we have a

business/washington partnership. but we have to go back to the great country we are, which is a country where we have to get out of the state business, the idea that this is a state matter is ludicrous, and i think that we're the laughing stock of the world because somehow we have made it so individual counties in our country are tasked with giving us vaccines and they've never been tasked with anything like this. at least we had places like cvs and walgreen's, that had delivered vaccines, they've understood the flu vaccine, maybe there are some that are being delivered, but carl, if he's, if the president gets this going, i think a lot of people are going to give him a lot of leeway, but if the president doesn't solve the vaccine, then david, what will happen is all of the money goes again to the restaurants, that can't open, the theaters that can't open, all of the other companies that can't open, it's so much better to solve it, than it is to keep

giving money to people who can't open. >> and continuing to save lives as we continue to watch president-elect biden, still, for another less than three hours and the service there. but 400,000 deaths 100,000 deaths just over the last 36 days, carl so that's the key reason to solve this thing is to save lives. >> absolutely. absolutely >> by the way, nbc news reporting this morning, guys that the deputy press secretary confirms the president did leave president-elect biden a note, nbc has asked for more details on where the note was left and what might have been said, but we'll be looking for some signs that trump left some indications about his hopes for the coming administration, he did mention the incoming administration in his remarks, at joint base andrews and didn't mention biden by name. your larger point, jim, about solving the pandemic itself, versus the rescued funds meant to ameliorate the pandemic is exactly what yellen got to

yesterday. >> she was terrific. i think that she, i compared her to tom brady, just because sometimes i like to use these sports personalities she never got touched. she wasn't sacked. she got rid of the ball very quickly. she's an old hand. i think the press indicated the republicans were pushing back. i don't think the rep caption were -- the republicans were pushing back i think they were defer shall. and look at the china virus and what does president xi hate more than anything else, the china virus, okay, from china, but the press is filled with articles about how the biden administration is going to get tough with china carl, that's not going to happen they're not. i mean this is not about shutting down huawei it's about having please more civil rights back to you, carl. but being tough on china is just lewd rouse. >> that's going to be interesting, jim tony blinken did say yesterday that the approach to china by the trump white house is one of

the things they did right so we will be looking for any signs of a pivot there. we mentioned yellen of course in her confirmation hearing yesterday. she did give us a glimpse of what the biden white house would do from an economic policy standpoint and we have more on that this morning. >> good morning, carl. donald trump has left the building and now the focus of washington, d.c. and the nation turns to the incoming biden administration as this biden administration's going to try to get its arms around the economic crisis left by the covid virus, as they try to ramp up that virus response that you guys have just been talking about. take a look at the economic team that biden has put in place. now, all of these people are still going to need to be confirmed in the senate confirmable jobs, but you talked about janet yellen, she testified yesterday on capitol hill, laid out her vision for the economic recovery, and she talked about some of the highlights of things that the biden team is going to want to do take a listen. >> i see, for example, extended

unemployment insurance, snap benefits and so forth, as having a very large book. of course, in a way, the biggest bang per buck comes from the money we spend on public health, to make sure that we have widespread vaccinations quickly. >> so now that big question here, politically, in the building behind me, is going to be, can that $1.9 trillion package that joe biden is proposing get through congress, and get signed into law, by president biden, how quickly can that happen? what compromises might this biden team have to make? we've already herald some of the republicans yesterday talking about their concerns about the amount of spending that the biden administration is contemplating. remember, this is being billed by the biden team as a first effort in terms of the 1.9 trillion spending package. they're also talking about later on, infrastructure package, that would have a lot of road, bridges, and all that sort of

thing, we do imagine that members of congress will like some of that because a lot will go to their states and districts so that might have some favorable footing as well. we're going to have to watch for the vote count, the politicking, the compromises and all that to come, but for now, the next couple of hours, guy, will all be about the biden swearing in, and all of the pomp and circumstance back to you. >> all right, amin, thanks for that and to your point about compromise, jim, it has been well telegraphed that the invitation to mcconnell by the president-elect, to church this morning, is supposed to be reflective of what will be a larger effort to try to share power in the senate, and compromise on things rather than ram them through >> well, look, it would be i think the american people are owed that, now, we don't know whether senator mcconnell has control of his own caucus, but i think that the idea that you go back four years, there are many people who wanted to shake up things, and i think that there are a lot of things that needed

to be shaken up but now i think we need repair, and unity, and look, i'm no constitutional scholar, but david, the constitution is really about one country. it's not a state by state red, blue, it was never meant to be that i mean, you know, it's just not. >> i believe you, jim. >> you do? >> yeah, i do. >> this is a new regime and you and i agree, it is a new day. >> it is a new day no doubt about that. as we countdown to vice president biden taking the oath of office to become the 46th president. >> well, 46th. in advance of that, guy, of course, we have an opening bell, we will talk about some of the earnings that are trickling in netflix last night, big mover after announcing subs surpassed 200 million for the first time interesting cash flow story over there. we'll talk about penguin and morgan stanley and our -- p & g,

and inauguraonayn caus enti d oseucwh we continue in at and that we created rapunzl. the rapunzl app was designed for high school and college students to simulate stock portfolios. they're able to buy and sell stocks in real time. thanks to nasdaq's cloud data solution. if somebody tells you just download this app and you could potentially win a scholarship, and you're learning, it's like, yeah. information is key. having access to information at your fingertips on your mobile phone, on your desktop, or here on the screens, it really allows us to showcase what's happening out there. and so we pitched the idea of: why don't we host an investment competition on this newly built rapunzl platform? it was really cool to just sit there and like watch how the market really works. what i won was real money. so my first year of college, i ended up going debt free. data information being put in the right hands can literally change a person's like way of life.

netflix is up big in the premarket after sub numbers exceeded 200 million for the first time after the news overshadowed the quarterly earnings miss, and netflix says on last night's call, they have a lot more viewers they hope to get. >> u.s. being the most benefitted market, we're still

under 10% of television viewing time, with netflix so again, there, we've got a lot of subscribers, here in the u.s., but we still have a lot more viewing time that we would like to earn with an im beddable service and im beddable content. >> nice round of upgrades this morning, jim, including wells which goes to 700. >> this was a remarkable quarter, because when you hear the kinds of things they're talking about, with the free cash flow, you have to go back and think, wasn't this company supposed to be overspending and wasn't this company supposed to be no ability to go long term and individual content that was going to be good, every bit of that is true, when you go over this comp score, when you think about it, if you give the people the best product, george clooney, starring, directing in the midnight sky, i guess i'm going to watch that because he already told us 72 million households are going to choose to watch it, and when you give them product, french language

series, then that's going to - >> love that. >> that's what i say drives cash flow and drives more. >> cash flow is the key i think in a way that perhaps netflix is being looked at in a way that it hasn't been previously, at least delivering on the promise that many people doubted five years ago. which is that this would become a free cash flow story let's not forget they're talking about a free cash flow break even and even at least discussing the possibility of buying back stock, or returning capital to shareholders. yes, they need to have a certain amount of debt, because they need a certain amount of cash available at all times, in order to continue to produce at the rate that they are but you know, to those who once questioned whether this could be viewed in some ways as a cable company, as in producing a lot of free cash flow, and levered up to a certain, to a fairly high degree, well, i think they're proving it right and in part, jim, they're doing so because churn is so low you have hbo max wonder woman's been out there. it hasn't hurt them. disney plus.

growing enormously hasn't hurt them and so they are proving that they're not going to grow as fast as they can but they're not going to lose subs >> it's an international company. carl, this call is about how well they're doing in europe how well they're doing in asia how latin america is still good. they have done something that i never thought could happen we watch subtitles we watch all sorts of things that we never watch. they understand how to do programming. they can do international programming. i find that's very different from hbo very different from anybody. when they talk about disney, and welcome aboard, you guys have done a good job, it is almost, i've never seen anybody as con genal, i mean it's like hey, glad to have you, welcome into our world. it's remarkable. i wish everyone would listen i mean this is, they're putting on a clinic of how, i mean it's all very andy reid-like, everybody loves andy, andy is

saying hey, listen, i hope everyone is doing well, it would be terrific, i hope they're not yawning as i talk, because i see, oh, hi, david david. i put you to sleep i don't know you're not putting me to sleep leave me alone i'm fine. >> leave you alone. >> i watched that midnight sky it's all right. >> just okay >> just okay. >> really? >> i liked it. it had some faults a lot of faults. but it was fine. i enjoyed it clooney. i mean he had a beard, he was very old kind of looked a little like - >> very old. >> old. >> i would say yes >> we can reviewthat >> that's why it's not my profession there were some gaps, how about that, carl >> some gaps >> you made your statement, and now i want to take - >> nobody saw me on, until you pointed it out. >> i was stunned. >> you are the only one. >> i wish you were back in that

place you were, the secret bomb shelter that you came from, for man months >> don't knock bock shelters >> i hear the great -- bomb shelters >> i hear that stupid, i hear the great mu civic, david, still wrong, never in doubt. >> at least he's got a sense of humor. >> he has been stubborn over time >> talk to you later, guys >> an important day, be sure to watch cnbc special coverage of the inauguration today, of joe biden, hosted by shep shepard smith. "squawk on the street" is coming right back

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welcome to the capitol this morning on this inauguration day as the president-elect tweeted a few moments ago, it is a new day in america of course, special coverage, all morning long, here on cnbc, as we talk about the inauguration, the pandemic, and the economy. and the markets, in the months to come. back in a moment

as we countdown to the biden inauguration, good time to bring up jim's investment themes for 2021 zeroing down on one, jim >> i think that there is one, which is if you go to 5 g, we are in a collision course, the likes of which i don't think we've ever seen it is a worldwide chip shortage there's simply aren't enough chips to go around it's not vaccine like, life and death, but it's not just auto, there simply are not enough chips to make every single

device we have we ended up getting a real bottleneck at taiwan semi. and spending 25 to 28 billion to open it up when i talk about 5 glg, i'm talking about a hog, a monster that is devouring all of the chips that would have gone normally throughout the system, whether it is 5g for apple or towers, and 5g, to make sure the world is connected to each other, that is the single greatest bottleneck theme, other than vaccines, at this very moment, also affects a lot of other areas including e-commerce and everybody needs more chips i've never seen a shortage like this. >> it's interesting, is there a particular area of chips that's truly in short supply? >> hpi automobile >> right >> i mean i don't think that there is a major ceo in this country who, when asked what the problem is right now, who has anything involving devices that wouldn't say we can't get the

chips. >> well, internet of things is of course a theme that we discussed in terms of 5g and not just about being able to download a movie more quickly. >> right. >> on your phone it is really the applications, the enterprise, given the lack of latency, are going to be dramatic, as this really still slowly moves into the enterprise, into a factory, into a workplace, in some way, into places where ought make is very important, to -- where automation is very important, to jim's point, and chips are even important to communicate with the 5g signal, essentially. >> right. >> and jim, always worth mentioning, $95 billion, including clearing costs was spent by the, we don't know who yet, actually, but verizon and at&t, amongst them, on that spectrum again, to help with their 5g >> yes, 95 billion >> that's incredible >> the amount of money spent, and carl, the automobile deerls and you watch gm, the thing that is making it so they may not have the blowouts in the first half is they can't get the

chips, because the automobile business, i was listen to the mayor this morning, the automobile business, the housing market is the hottest. only two months supply we are just in supply, with many things, with vaccines. >> we're going to talk about that more in a second. there is the opening bell, as we're just south of the opening of 3800. and here, your discussion of cars, jims, reminds me of oppenheimer going to street high tesla, 1036, at 486. meantime, mercedes is unveiling the first electric compact suv in europe, called the eqa. but the point from oppenheimer on tesla, jim, is that in their words, the advantage of all of the cycles on the road, a million vehicles on the road is, going to come back and pay them back, in terms of li-dar down

the road, and they think it is an opportunity faster than competitors. >> an amazing article today about vw and how they're just not there. they talked about there is an nvidia person there and nvidia has a lot of chips that you need, a dominant producer of a lot of the dominant electric stuff in audi but you keep looking at the stuff that missed the cycle and the companies and i think gm is very excited >> you're joined by investors. i mean forget about tesla. only up 21, 22% for the year gm's up 34% this year. that's probably the best year gm's ever seen and the month isn't even over. >> they're doing a remarkable job. and people seem to think, mary barr seems to be doing a remarkable job and when people think, wait a second, when you see the cars, it's too late. gm has gone parabolic. look at the last two weeks look at, whatever, since the beginning of the month. >> because that's doing much

better >> there it is >> that's what happens when they do well. >> they do well. well, they've announced a lot of things they've announced a lot of things >> yesterday, of course, the announcement that microsoft will be an investor, in the cruise division for lack of a better word of gm propelled the stock higher >> and i think it is doing better than the spac eds that you talk about all the time. >> uh-huh. >> you talk about. >> i do. yes. not going to now >> okay. >> not going to do it. not going to go there. >> carl, there are companies i mean clean energy, everybody is very excited about clean energy, and the president-elect is very interested in things like hydrogen. clean hydrogen so those stocks have moved up justifiably. i mean the president is trying to make, this new president, is making a equipment to areas of alternative power that says listen, he's going to make it so all of those big fossil fuel companies that keep going up

don't be so sure, carl, that that's the place to be, when you have a president who is deeply committed and believes in it i know this is -- believes in global warming believes in global warming believing in climate change. carl, this could be remarkable i mean the only other people who believe in that are the utility companies. who are so afraid to do president trump's bidding. >> jim, i'm glad you brought that up because yesterday the u.s. chamber of commerce, nation's largest business lobby, came up with some comments that said not only did they applaud us rejoining the paris accord and of course, rejoin a bunch of different things, the world health organization with some of these eos, today, but didn't discounts or necessarily criticize the idea of market-based credits for carbon. so the president elect is going to be, they're going to be finding business on this one or not? >> i thought that was shocking because i had last night, i had a really good company launch,

and they're talking about putting a carbon statement on everything they made not unlike the calories that you see on the side of whatever you eat. david, this is the start, i think this is the start of people saying, i want to be carbon neutral myself. >> that would be fascinating i wonder how the system would work, and whether you could really trust whatever the number would be, that was put on a particular product. >> could we just say, hey, listen, jim, did you ever have to find fault in it? >> yes >> why don't you give me 24 hours and then find fault. >> i'm a very fractious person i can't help it. >> when you buy one of these lock detective devices, and they will be identified as this much carbon and this is when people are focused on carbon and i think the era of let's not care is over. at 12:00 >> carl, don't forget the beginning, at the early stage,

the obama administration, of which of course the incoming president was the vice president, there was an opportunity to put a price on carbon they had a potential deal in the senate mccain was there and they lost it they kind of blew it and we've been living with the outcome ever since but they were close. they were close to having a bipartisan bill that would have put a price on carbon back then. >> well, look, carl, we've had tremendous reduction in greenhouse gas, but a lot has to do with the fact that oil prices collapsed and a lockdown but the idea that this has become a focus is going to change what people care about with stocks a lot of this has been happening, carl, you will see a lot of stocks have had tremendous moves, whether it be plug pal, or whether we see tesla, of course, and any of the ev engines, rivian, but carl, this is a new world and the people who have been buying these stocks are the merrymen they're far more adept at knowing where the country's going than people give them any credit

but i think the notion of finding out what's on the label for carbon is something we're going to be doing in this country within the next two or three years. >> david, i did want to give you a shout-out on jack ma, you told us he wasn't in any serious trouble a while ago. bob is now back close to a two-month high. >> reacting to him surfacing at least, in some fashion showing up as we said, a number of times and there he is -- >> you called him out. >> we d the stock went up, when we first said that he was not missing, we made the point, and now, had he disappeared, so to speak, from public life? yes. as perhaps the most, at the most well-known member of the business establishment in china and in his absence, it was noted and i've said many times, he's lying low, and we said it back on what it was january 5th, take a listen >> he is being less visible

purposefully and you can expect that that will continue to be the case for some time. he ran afoul of the, as jim just said, the government, the prc. stock's up since then. stock is up another 6% carl, as you just noted today, on his re-emergence so to speak but he will keep laying low. mistake no mistake about it. he will not be criticizing the government in any way shape or form for quite some time as they try to figure out what they can and can't do and whether it could undertake another public offering, another, try to go public yet again, perhaps in this year. >> well, even as you, one of my most salient points, did you catch the bottom 224 to 267, if you went to the other guy's station, other than the fact that some of them seem to be focused on that incredible left wing invasion that drove the capitol, i do think that that was one of the great calls of all time >> jim, thank you. >> it was. >> it was a big company.

>> big company it's important and we don't want to lose sight of that. i hope we can sit down with jack ma at some point and talk about what it is like to go through all of this? >> what do you think of the relations with china do you think there will be a lot of finger pointing and do you think president xi will be waking up one day and president biden will be tweeting the virus is out of control. >> there are a lot of things that incoming president biden will be doing on day one but he won't be turning tariffs over. >> i believe, carl, that the chinese are watching us, they're saying okay, listen, we understand that the rhetoric is still not that good, but we're going to place the biggest order for boeing planes in history and that makes it so that it's not just corn anymore. we're not just in kansas anymore with this guy. >> you like that >> i just got a smile out of david. >> he's just appeasing me.

>> thank you. >> he's trying to dig out. >> trying to dig out. >> it's better when i'm sitting next to me then he can't really see me. back in the day when you can sit side by side and now he can look at me all the time. >> we'll get there. >> you think so? >> i have a new mask today i try to bring a new mask every day. this is a particularly good one. >> we can't stay apart for that long. >> we can't. >> it's definitely a faang day. >> yes. >> we got a new record high on the nasdaq netflix is leading the s&p and there's a nice halo around things like facebook and alphabet >> i thought faang was dead. i've watched it on many shows. faang has been pronounced dead so many times and the one that i think people want to start realizing, it is going to have a blow, one of the greatest quarter, will be amazon. look at amazon up 81% 81 points. david, amazon is going back to its high, david. >> back to its high? >> because it turns out we like

amazon carl, we like systems where we pay money, flat fee. netflix is a bargain we love a bargain. amazon is a bargain. apple service that we pay for. that comes up in the middle of the night at 3:00, but don't worry, i'm up, i see you, apple, that's a bargain, these are what people want, they're getting bargains and paying up for them and i think that's far more important, carl, than any anti-trust organization or szar, as soon as i hear czar, i think about the dolphin, i think about to the filming station and the storming of winter palace, let's skip the word czar, carl, i don't think that word works anymore, the czar had a real bad run in the end >> you know, to that point, jim, you know, the names that did well in the pandemic, obviously, centered around tech but they also centered around, for instance, grocery stores, and today, there is a call, as morgan stanley cuts kroger, they

cut albertson's, they say looming shift of spending back to services, and that means that some of these mature businesses may have overcomped. >> i saw that downgrade of albertson's and i said did they look at how well the company is doing? target, $13. i mean wow i found that, i actually found that, i think that all of the things that albertson's is doing that is right. not everything just goes away. people go to the supermarket i think the supermarket, sorry to say this, but i do, david, i require a bit, i find it, you know, i don't like the, i like social distance, and a lot of the aisles are too small albertson's at least are wider >> if this new variant that is more transmissible is really around and throughout the country as the cdc says may be the case, we have people thinking, more seriously, about what, you know, how long they want to spend in the store and things like that. >> right so i disagree with the

albertson's call i think these companies have adjusted i think they're doing a good job. i think that the calls that i'm more concerned about we had an upgrade today, we had a big, big piece on peloton, and it's simply, the reaction to yesterday's negative on peloton, of course, they've been working on it much longer and i get that but i do like the bernstein call about colgate not coming up with spend. and we have not spent one second talking about -- >> talking about procter & gamble. >> i knew where you were going. >> i know what you're thinking before you think it. come on. >> what you are in my cerebellum or something >>yes. >> organic sales 8% >> and people didn't like it, david. they're sick of everything >> because it went up a lot. i mean it's like goldman sachs they had a great quarter who cares, you know. >> well, p & g to your point, take a look at where the stock is right now i don't have a chart for you it is down a little less than 1% >> i mean carl, look, these

companies are, we should circle back to, and people are just, you know, proctor was in that 70/90 range forever and broke out and people are saying wait a second they want to own the cars though, carl that is where the action is. i have to tell you, jim farley, he is so humble, but he is ford versus ferrari he's that guy. great movie. >> yes >> i like that one >> great picture and ford is right up there with a lot of the faang names in leading the s&p today, up about 3% or so so fairly solid market open, as we of course are just a couple of hours away from the inauguration of president biden. let's get to bob pisani. hey, bob >> good morning, guys. happy wednesday. happy inauguration day yes, the new high on the s&p 500. some of this election. some of this stimulus. and some of this frankly earnings numbers are coming in really strong. the analysts are wrong they were underestimating,

they're going to raise numbers that's a big positive for the markets. as you can see, of course, a shot there of congress, china is the lead here. and i think that's very important to note that i know that everybody thinks the u.s. is doing well, but china has actually been far and away the world's best market so far, so meeting with that mchi, a very broad, china etf, that's what you're looking at, technology stocks have been strong, but particularly the semiconductors have been market leaders energy, we're getting close to a new high on oil. banks have been flattish ever since the earnings came out. and most of the time doing great but not moving the stock prices. huge run-ups consumer staples flattish. and none of these stocks are doing anything after their announcements, but remember, zions up 50% since the election in november. 50% for a lot of these regional banks. u.s. bank corp with flattish

numbers. not a big mover. bear in mind this is not unusual for banks to flatten out after the earnings season semis, no, jim had a great point about chip shortages out there but every day, the new high list is littered with semiconductor stocks shall the usual names teradyne, broadcom, texas instrument, again at 52-week highs. i want to point out what is going on, this is bringing up the overall estimates on the s&p 500 which are fabulous so morgan stanley for example earnings of $1.81 the analyst estimates were $1.06 do $1.51. not a single analyst got close to the estimate on morgan stanley, and this is way, way off, and this is not usual zions had the same thing the analysts were all off. and how about jb hunt. that is not a bank stock that is a transportation stock they had, decent numbers, $1.44 and what happened with that? well, the analysts estimate was $1.20 to $1.40

not a single estimate got a transportation stock right overall. here's the important thing, guys, 43 companies reporting and so far beaten by 18% that is a very good number and that was last quarter, beaten by 19%. let me just point out, carl, that we are getting a global rally right now. china's been the big market leader overall and we've also seen south korea, japan and europe doing really well and the united states is the laggard up about 2% so far on the year. global market rally. carl, back to you. >> all right bob, thank you very much bob pisani, when we come back, a look back at what to expect in the first 100 days of biden presidency before we go to break, look at the fixed income markets treasury, ahead of the biden inauguration, yields are apparently going to the upside and home builder sentiments coming up out in about 15 minutes a look at the action in the 10-year sends the treasury secretary, janet yellen's confirmation hearing yesterday morning and we will finish with a look at the dollar index back in just a moment.

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what can we expect in the first 100 days of a biden presidency we have more on a closer look on that hi, kayla. >> hey, carl the incoming biden/harris administration has a full policy slate laid they are defined by reversing policies by biden's predecessor, donald trump. later in oval office, she signing 15 executive orders, compared to four for the last predecessors on the first day. the covid response is going to be front and center. they will centralize the government's effort, institute a federal mask mandate on federal property extend regulatory protections for renters and student loan borrowers, rejoin the world health organization and resign the u.s. into the paris agreement in addition to a slew of other actions while the administration will unveil a reform bill, the

informing secretary expected to brief the press following all of these actions, she said this morning biden's first legislative goal is that massive economic relief. >> the urgency is getting a package passed to get relief to the american people to get vaccine money out there. to insure people are getting checks in their maim boxes that's where he will spend his political capital. >> reporter: she says the administration will revoke transgender military service and so-called mexico city policy on non-profit funding secretary of state said yesterday on capitol hill he is interested in a longer and stronger nuclear deal with iran. now, it remains to be seen whether these policy reversals will be met with similar legal challenges that plagues the initial rollout of the policies by the trump administration, leading to uncertainty and protracted court battles they are saying these executive

action, mainly the reskringd of the keystone xl pipeline will kill jobs. where reason impeachment trial will figure into all of this the vice president-elect kamala harris in an interview with npr before resigning her senate seat on monday says she believes it can happen with another priorities we don't know what house speaker nancy pelosi is going to send up that article of impeachment, thus triggering the trial. there has been some suggestion that they could wait so the biden administration can hit the ground running on some of these other priorities, carl. >> it will be interesting to see how the senate does chew gum and walk at the same time. thank you very much. jim, i don't think i have gotten to you on keystone and how firm you think biden is on this, obviously, we saw canada's reaction yesterday, what it means for the sector >> it's completely unnecessary there is a huge amount of oil coming in from canada, more than in a long time more than a million barrels per

day. thank you for this information just this morning. but i think that the pipeline is, it's just, it's an abt traction carl says it's scraps and it goes for a great deal of money for the chinese in terms. >> starting to get some arrivals, guys, at the capitol we will keep our eye on that and get you picture as soon as we can. remember to stay tuned for cnbc's special coverage of this inauguration hosted by shepard smith in just over an hour at 11:00 a.m. eastern time. in the meantime, "squawk on the street" is coming right back

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exiting the church service this morning, the president-elect dr. biden, kamala harris and doug emhoff at the theater of st. mathew the apostle. in the meantime, with see arrivals at the capitol. we have the record highs, the nasdaq, the corerd s&p don't go away.

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zblrnlgs. jim, what's coming up on mad mon? >> we have renewable energy group. and quickstone, many are saying this is the mekt moderna, if it isn't and they have a solvent

getting at the new strains, i think it could be huge and the stock is flying. we have to get the vaccine in people's arms. period >> we have been really clear about that, today, jim >> we are dealing with the county commissioners they don't know what a vaccine is whatever >> yeah. ye yeah >> nice people, david knows when people are called nice what is that, david? >> not nice. >> thank you >> you are welcome >> see you at 6:00 "mad money" with jim cramer 6:00 p.m. eastern time. welcome to a special edition of "mad money". in just about two hours, joe biden will be sworn in as the 46th president of the united states we will have more on his arrival at the capitol all hour long in the meantime, stocks on this

historic day hitting all-time highs. the nasdaq and s&p take a look at they sent his inauguration back in '17, with the nasdaq largely outperforming the dow and s&p. >> yeah. charm. that's right you are seeing tech and consumer discretionary precious doubled under president trump. we have seen this rally in the averages since election day. on this historic election day, let's bring in uvb financial director of floor operations art, it's great to have you here given the fact that you are really a treasure trove i think of historic am and experiential context and knowledge, with six decades on the floor of the new york stock exchange, i wonder how you are thinking of this day and what it means for the market >> well, it's clearly a very important day. it will be important for the nation and the market. i think what we're going to look

to see, first of all, given events of recent days, where we have a little bit of a sigh of relief rally after the actual inauguration that power has transferred peacefully, then i think the markets will begin to focus on the senate, itself, and how will the senate operate? will schumer and mcconnell get together and have an agreement we had a somewhat similar situation years ago, if you want to do the treasure trove of history. trent lott and tom delay laid down some rules of the road so that the power could be somewhat shared it's going to be interesting the senate will be the key from everything from tax legislation on through and that will be important to the market the vice president under the rules of the senate can break a tie. so that gives a slight edge to

the democrats. but if i remembermy civics class correctly, that's only when something comes to the floor so we may have a battles to keep the program from getting to the floor and we'll see about the filibuster so the real events to look forth is how does the senate function and, therefore, how will the progressive wing of the democrats and fought do and finally, morgan, the other thing we watch out for, almost every new president gets a geopolitical press so we've seen the north koreans rule out some missiles and whatever let's see if mr. biden, woes very experienced in government, but will he be tested geopolitically smr yeah yeah that is a key point. i will just note that we were playing, showing you images a few modems ago of the marine band musical selection right now. we are looking at images of

d.c., carl >> indeed. that was just a moment ago, former president obama and first lady michelle obama. obama said congratulations to my friend, joe biden, this is your time so we will see, obviously, a round of support from those with whom the president-elect has worked before. >> yeah. absolutely as we do look at these images as the inauguration festivities, although may be tapered down, slightly different festivities given everything we've seen from covid to recent unrests are beginning to roll out here i do want to get your thoughts on what we have seen in the market since election day. the dow and s&p up some 13%. the nasdaq up more than that how much of the move as of late in the market have we seen are they tied to hopes of stimulus, especially given the fact when you look across the world internationally, we've seen

major moves in other market as well >> there are two factors i would say 90% is based on the stimulus going back to compromises between mnuchin and pelosi and the hopes that that would bring. the stimulus, a strong stimulus package in the united states is not bad for the rest of the world either we are the key trading partners for many of these countries and secondarily, we have the reemergence of our friend jack ma and that has got the chinese marks up and running so i think the stimulus has been affected both here and abroad and will continue to be, you know, after the president's supposedly brief inaugural address we'll get to see the specifics of some of those proposals and traders will then start looking to see what

sectors or stocks individually will benefit from them. >> art, as you are that talking, i am sure you can hear the band. we saw former president clinton and hillary clinton and former speaker ryan is on the scene i did want to get you on rates and whether or not yellen to you, yesterday, telegraphed a new way of thinking about federal debt whether or not an ultralong bond is really possible this time whether or not we should stop looking at debt-to-gdp whether or not the vigilantes will be right in the end >> well, i think the vigilantes will only be right if the viewers want one thing to look for from a cache of historic probes and things to watch out, you can't have inflation simply because have you more money, simply because it goes up or the debt goes up people have to lend it or spend it so, watch the velocity of money

between banks. if the velocity does not go up, you will not have an inflationary threat. as to your comments about yellen, she's in a unique spot even though she's going to be, hopefully, secretary of the treasury, having been the chair of the federal reserve gives her a certain non-partisan aura. i think that's why they were asking her to float some of those trial balloons because it makes them look what less partisan yes, she did sound like she was an ad herent to a modern monetary theory if the rates keep them low enough we can run up the debt and it won't be onerous on the taxpayers because we will be borrowing money almost for free. not negative rates, certainly darn close to it. >> all right how much good will is baked into the market right now what i mean is as we watch the inaugurations begin, the process begins for the 46th president.

i mane, the fact that there are discussion around everything from not only stimulus in the near term to the possibility of infras infrastructure, changes i guess you could say reform to tax reform, regulations expected to be rerolled out on a number of industries right now how much of that potentially affects the market whereas it doesn't seem to be, it seems to be shrugging it off right now? >> well, it is, it's all built into the stimulus, morgan. the rumors are that this may be not just this package, but the ultimate biden program for infrastructure could be almost as big as the eisenhower highway plan and that was massive and helped change the country now it may be in the field of electronics and may be more 5g and stuff like that, rather than all concrete and bridges

but it is thought to be massive and i think that's why the market is holding out so much hope for what's going on it's skipping the regulatory problems, et cetera. we'll know in the first couple of weeks if we begin to hear from the more liberal part of the democratic party, the elizabeth warren and aoc side. if they begin to make noises and inroads that they want regulation much stronger then that could have an impact on the market >> all right, art cashin, thank you for joining us today. >> my pleasure >> along with the keys to the white house and the nuclear codes, president trump is handing off the u.s. economy, to soon to be president joe biden our steve leishman has a look at what that handoff looks like, steve. >> good morning, president-elect biden and harris economy in a deep hole, actually worse than he came in as vice president in

2009 with high hopes for a rebound brought on by a new round of fiscal stimulus and the promise of vaccines. putting this handoff in context, when president bush left office, the economy lost 4.3 million jobs in the prior months obama gained 2.5 million jobs. the handoff to biden, an economy beset by the virus and lockdowns that shed 9.4 million jobs job losses would deepen from more than a year after obama took office. but it would never get as bad as they are right now the hope, the combination of massive stimulus along with the vaccine will avoid a long subpar recovery in fact, the latest cnbc wrap-up shows growth ticking upwards estimates substantially since sa month ago. that comes down to president-elect biden announces his 1.9 trillion stimulus. the big turn around is expected in the second and third quarters

with the average gdp forecast at 7.4, 8.1 respectively. some forecasts like goldman sachs and barclays see double digit china-like growth in the second quarter now for the fourth year, an estimated gdp growth off minus 3% in 2020 they give what i to 5.7% this year still above average trend near 4% in 2022 the challenge for biden with so much fiscal money directed to the recovery he could be limited by deficit concerns to enact new policies and programs and he will need the private sect oar to step up and take the reigns in a long way. the fiscal monetary will likely be rolling off, david. >> steve, i think it's funny, i think the avid chart you'd like to show us it goes to the reference at the beginning of your report is how does this look from the last handoff from a republican to a democratic administration in

terms of growth or lack thereof? >> well, so, 2008, we first we saw the first decline in growth and that deepened in 2009 and it got better in 2010 you look at what happened when obama handed it off to trump, you had subpar potential growth giving way to better growth in 2017 and then you can see this minus 3% expected and giving what i to something like 5.7%, the estimate for this year, as all that fiscal stimulus works its way through. >> steve, thank you. let's continue this conversation, bringing the fed chair under george w. bush and under president's clinton and obama, gentleman, good to have you both i'm start with the gentleman who worked in the republican administration, mr. hubbard, give me your sense in what you heard and your expectations are for the $1.9 trillion plan we are hearing about that congress will be considering soon in

terms of trying to help the recovery from the pandemic >> well, i think it's very important for president biden to do what he is starting to do, which is focus on renewal and recovery i think the focus on public health and economic stabilization is important i do think some of the elements work the idea that checks that so many have their jobs haven't lost wages would not be the best piece. i do commend it going big. i think that was a mistake made in early policy in the financial crisis and our new president doesn't appear to be >> james, maybe perhaps that mistake was made by the incoming obama administration early on there. the idea that you should have gone bigger. are we going to go big and get even bigger, programs, with an infrastructure bill that follow this is one if he is successful if getting near 1.9 trillion at

first? >> there is no question this is a package to use ben's word, you know, recovery and renewal i think to use president biden's words, you will have the response of the crisis and the health and the relief people need and then the build-back better part comes, which is the manufacturing jobs, it is huge infrastructure, it is building up the care economy. so, yes, i think you are going to see very big. they are giving out three messages number one, there is still a lot of risk in this recovery we just lost 140,000 jobs. some people think the unemployment rate is closer to the 8-to-11% we are still down 9.4 million. as i learned painfully, when i was nec director, unexpected things can happen. a new strain of the virus, global impact. number two, there's biden's very focused on into k recovery

even if the gdp number sound okay, we heard the feds say that for the bottom workers, there is 20% unemployment that's near depression levels. finally, i think they believe, rightly, in my opinion, that this is the time to go big on relief and jobs and that with interest rates at such historical low levels and the ability to have such low interests service, that is benefits of going big, deficit finance right now, far outweigh the risks of getting impact on the deficit over the next three, four years >> yeah. we continue to watch arrivarrivs not sure who is in that automobile glen, let me go to you, on an unfortunate outcome i think many would agree over the last ten months, this pandemic has actually served to widen the gap between rich and poor in this country. a wealth gap we have been

dealing with for some 20 years now and talking about is a significant problem. a, do you agree that's the case. you have to look no further than the performance of the stockmarket over this period of time, b, what would you say the biden administration needs to do, to address that problem again that we have been dealing with, for 20 years >> it's a great question the pandemic has simply accelerated a lot of things that were going on in the economy already, one of which is incoming wealth. i think it's an opportunity for the fuad minstration to build bridges, to focus on training, to focus on infrastructure and new opportunities for people left behind, it's exactly what the country need, not talk about the future >> yeah, glen, i just want to follow up on that for a minute as we continue to upon tore the arrivals right now in the capitol. all this dead we are talking about, whether a stimulus package, a potential

infrastructure bill, i mean, it's going to need low interest rates to help keep it going given what we have seen in terms of the ballooning of the deficit, which, by the way, was the argument of the trump administration, not getting to the delivery of that but on the other hand, what we've seen in terms of easy monetary policy really over the last decade is that whole debate over income equality and this divide between this idea of the rich getting richer, the poorer getting poorer has been in part because of monetary policy and low rates. i am wondering how those two things get balanced by this administration >> well, it's a tough question i think monetary policy is not the tool to fight that it can actually widen it to stimulate the economy. fiscal policy is what's needed i wouldn't worry so much about why it's fiscal policy despite the pandemic, after you are fighting a war but i would worry about painful

programs that are very long term and create long-term spending. i think incoming treasury secretary yellen we will look at the overall budget after we get the pandemic under control that seems like the right order to me. interest rates, there is no guarantee they are there forever. >> some of the executive actions will center among immigration. i guess given the fact that that is very much going to be in the spotlight now. let's play out the economics around what that could look like, especially if you do layout a path and congress picks it up, for those dreamers to become citizens more quickly >> well, i think these are probably areas where glen and i disagree, which is that a more humane immigration policy that fits our values, that recognizes dignitary of all people who are here is also one that is

fundamentally going to have strong of our economy, for our labor force. so i think this will be one component. if you go back to something, glen was saying, i think in some ways you will see some more debate about the relief package. i understand people like glenn would pick apart some pieces of it >> $18 minimum wage? >> i'm not going to put words in glenn's mouth. that may be a place we disagree. i support a $15 minimum wage but i do believe that on the whole this plan is targeted to the people who are in the greatest need. i think we are going to have to make sure that people stay in their homes until we're at recovery but i also do think when you get to the second package and people are talking about infrastructure, a green infrastructure, climate, efforts that are job creators. the manufacturing message, the

made in america manufacturing renaissance, and the view that these amazing care workers who have always been so important to our lives should be paid with respect and dignitary. i think that is going to be a place where i will imagine there will be a lot of republicans are going to say, i do not want to be opposing this major jobs plan that could speed us back to full recovery because the one place where monetary and fiscal policy together can help is it's not just getting to full economy, it's the speed to get there that can affect how much scaring there is for young workers going into the work force and how much unemployment is long-term unemployment which glen and i know has much more devastating long-term effects on people and the economy. >> glen, i am curious to know, speaking of climate, it was striking to hear yellen talk about climate and how it will be the center of jobs creation

policy how is biden going to work around legacy energy and not alienate that audience it was a treacherous moment in one of the debates do you see that as fraught as all? >> i think it's typical. it's hugely important. climate change is an enormous problem facing the country and the world. the president is focusing on that the elements of it it will be encouraging new technologies andal turntive energy at the same time at some point putting a price on carbon. i am very interested to hear the administration's views on that i think having climate run through the entire administration is a good thing you can't just compartmentalize. >> and gene, quickly, what do you give them in terms of chances based on what you have in your experience and we look at the senate leadership, which will be 50-50 in terms of votes,

we will look at the vice president incoming there is bernie sanders, senator there, again, what do you think their chances are getting their agenda passed? >> well, i think georgia was just a game changer. because while there is no doubt that soon to be president biden, it feels nice to say for me that soon to be president biden wants to do this fast and bipartisan and in regular order we all know that he has the option of reconciliation, which means he can pass this with all democratic votes that's not his intention, but everyone knows he ultimately can play that card you just showed bernie sanders, he's the new chair of the senate budget committee most administrations major budget things are often reconciliation i still think he's going to try to get as many republicans on board. that's his first intention

but i do think that does guarantee a certain degree of success in getting i think well over a trillion dollar relief package here and as i said, i think there may likely be more bipartisan support for a major jobs package in part two >> it's interesting to hear you say that because when you do talk about reconciliation, the fact that you don't have to have as many lawmakers on board to get some of that policy through with that process. there has been so much focus on the fact this is a split congress it's very narrowly held by democrats and the centrists will have a lot more power. but with the reconciliation tool, does that still remain the case when you talk about something like an infarrar deal or tax changes >> well, almost always you can do more without reconciliation have you as to worry less about

technicalities of something being extraneous or incidental but i guess what the reconciliation does say is that in the end of the day, if you could get all 50 democratic votes and no one's suggesting that that is easy, but there are enough difference between where a bernie sanders is and a joe manchin is but i do believe at the end of the day, that does offer a fallback way and i do believe that you can do more through reconciliation than people have done in the past certainly in things like child care in terms of student relief, in terms of obviously infrastructure, those are the kinds of still solid kind of clear budget areas that would uncontroversially fit in a reconciliation package that's why people are building in a package that there will be a significant impulsive and

packet one way or the other. however it works out on these boring you know process decisions. >> as we watch some of the motorcade work its way to the capitol this morning, glenn, china, we did hear yellen yesterday say they are a -- they are the most important competitors to the u.s we've heard the chamber of commerce denounce the tariffs that the trump white house has put in place do you think the market is over estimating the pivot vis-a-vis china? how much of that do you think is linear from the prior administration >> well, i think the pivot is one of a degree in scope, not probably linear. so i do think while the objection to the tariffs, the biden administration was somewhat skeptical on china trade, too what i am excited about and optimistic for is the biden administration's willingness to engage our allies in confronting china on key issues, which china

has not been a good actor on the local stage. i think that is worth some optimism >> finally, gina, do you rule out joining the administration >> well, you know, i'm actually doing this from santa monica with pretty nice weather my wife is a television writer here so we're pretty happy. but you know public service is my heart so you know, i'm not making shermanesque statements. >> we look forward to having you back one way or the another. thank you both >> sure. guys, as we watch some of the pictures and the president-elect's motorcade arriving at the capitol. let's walk through some of the rivals we have seen and the ones we expect to get hi, elon. >> reporter: hi, carl, we are awaiting for the president-elect a to arrive here he will be arriving we are told

on the east front of the capitol behind me. we've seen some of the vips make their way through underneath the senate chamber on the senate capitol and over to the west side of the capitol, we will be hearing president-elect bind give his inaugural address obviously, he is no stranger after serving 36 years as a senator, chairman and ranking member on the foreign relations committee. on the judiciary committee so this is really a homecoming of sorts for him even though this is his first time arriving as president-elect. now, we do expect mcconnell to attend this inaugural event as well you can see, i believe, biden is getting out of the car as well we lost a little bit by some of the many black cars that are in front of me. but he will be soon making his way over to the capitol there. i can see him just out of the corner

guys >> there we do see the president-elect, elon, and dr. biden as well. i do wonder if in d.c. the church service with mcconnell today is truly being seen as some canary in a coal mine as far as cooperation regarding policy, just good will it's not well known, but mcconnell was the only member of gop leadership at the time who went to biden's sons funeral and made that out to argue that there is a special relationship between those two men. >> well, indeed, they do have a long working relationship. that was a particularly touching mo emt that mcconnell attended beau biden's funeral there mcconnell also gave a very moving tribute to joe biden back in 2016 as he was leaving officer and as the senate was passing the 21st century c.a.r.e.s. act, which included some money for cancer research that biden

, had personally fought for. he sort of joked that joe biden had overcome a stutter when he was a child. ever since then, he never stopped talking. that was a sort of a moment of levity in the senate and underscored the long friendship the two of them had. two understand each other, know that they can work together even in a very difficult environment. >> yeah,somebody who overcome stutter myself, that warms my he heart to hear those personal stories. as we look at these pictures as we look at the president-elect and the vice president-elect arrive here stand at the steps of the capitol and walk up, everyone is wearing masks. obviously, the pomp and circumstance there it looks very different this time around for this inauguration day i was wondering if you could walk us through, i guess how busy or fought busy potentially it is in the area today given

everything we have seen between the pandemic and then, of course, most recently all of the social unrest. >> well, certainly, there was strong covid testing protocols in place for anyone who was inside of the security perimeter. biden has made it clear that we will pursue a mask mandate, at least for federal properties and federal grounds from day one of his presidency, which will begin in just a little bit you can see them waiting there as they are masked and standing in front of the capitol. one of the things that has been difficult for him to sort of navigate on this momentous day is insuring that it meets the moment and also doesn't forget the tragic pandemic that we are still living with. that's why you saw them give those remarks in front of lincoln memorial the other day, remembering those who have lost their lives to covid, also trying to move forward and find an answer to the horrible

tragedy that has cost so many people their lives >> guys. >> just a quick mention here how important some of these pictures are. the appearance outdoors. with know at the security apparatus is thick but it's very important for americans to see this is not enforced indoors because of the riots on the capitol a couple weeks ago. i want to ask you two things, one is biden's journey, well documented failed presidential runs, running senate judiciary, counted out during the primaries and in part because back and forth with a woman he chose to be his running mate. pretty remarkable, she, too will have a momentous day in american history. >> that's absolutely right, obviously, she is going to be the first female to be sworn in as the vice president. she will also be sworn in by the

first person to do so as a sitting supreme court justice sonia sotomayor. the first woman to swear in the first woman, they will be historic occasions one of the things that helped propel joe biden to win that democratic nomination was the support of congressman jim clyburn in south carolina. so the black community has been an extremely important part of his rise to the white house. that is something we are seeing with the selection of kamala harris to be his vice president. the first black woman to be vice president as well. so this is a time in history race relations are extremely tense. biden says he wants to address that during his first 100 days in office. it's the focus among his executive orders he will be putting in place in the coming days and weeks so that is an area you can see

focus on and attention in the next few days. >> thank you for bringing us the latest on the ground we know we will continue to monitor. we are counting down to the inauguration of joe biden. we will continue to have full coverage in a bit. first our any scott wapner has a guest. >> he is the ceo of -- joe biden, you worked very hard to get joe biden and kamala harris here he's going to be worn in, in 90 minutes. your thoughts as you watch with the rest of us >> i think it's great. i think what i'm looking forward to is just normality just that things will hopely get back to normal look, i think it's great for everyone, you know, i'm looking forward to it.

>> you said last month at a conference -- there's mitt romney, senator romney standing there as well. you might play a role, quote, on the economic side with the biden administration i'm wondering if you could tell us what form you feel that will take >> i think it will be more just helping out. as you know, i'll know some of the people, it will lend out i think hopefully at times, where over the course of the next year or two, if somebody asks for your advice, you will be able to do it. i don't think there is no formal role whatsoever. >> you haven't been talking to them about certain policies? >> no, not at all. >> are you thinking at least what president biden's policies will look like now that the democrats have taken control of the senate something that i know from our prior conversations you didn't expect was going to be the case. >> no, i didn't.

i thought best case was it would have been 51-49. so, i think the fact that now democrats control the senate, i think you will be able to get more things done, but, ultimately, i think what the president is going to want is for people to be working together and i think you guys have talked about it on your show earlier, that, yeah, they can get things done. i think they'd rather it's much more bipartisan. >> do you think that is actually going to be the case i know the president-elect has said that is what he is hoping for. and he is going to be making that case in his speech today in his inaugural address, a case for unity, how likely do you think that is given the climate in the country as it exists today? >> i don't know, scott i think hopefully at the end of the day that is what is going to happen ultimately, if you are a republican, you will know that

democrats can get something done so if you want to have a voice and you want to be heard, then ultimately you will have to sort of come along and people will try to work together i think it will be interesting to see what will happen in the first 100 days are republicans going to want to end up working together or are they going to want to try to fight for the next four years? >> yeah, the president, himself, is going to have perhaps an interesting battle to manage as well, marc, within his own party and thinking about how he may be pulled to the far left side of the democratic party by aoc and some others as well. how do you think he is going to and a half date that and how might that shape the way he try is to make policy? >> i think you look at it, it was clear that most americans are in the middle. the democratic party has moved a little bit to the left i think for president-elect biden to be successful, he's going to have to end up really governing more from the middle,

with a touch of, you know, some help on the progressive side but i don't think it's going to be a progressive agenda at all >> are you surprised at all by how the markets have reacted since january 5th when it became clear that the democrats would, in fact, have control of the senate >> no, not at all. because i think what was clear was that once democrats were going to have control of the senate, you were going to have a larger stimulus bill it's really not that complicated. you will have 2 trillion going into the economy it's more than ever gone in, so because of that, the market's view that as extremely positive and it is, it just is positive the amount of exam that's going to be there so we don't want to fight the fed at all. >> despite the fact that he has talked about raising taxes, not sure which exactly we may be

looking at down the road, he suggested the corporate rate could go up to 28. there is a suggestion in the capital gains rate can happen as well you said they should raise taxes to deal with the deficit in your words a little bit yeah, i think taxes will go up i don't know what the amount is. do they go up 5% or 10% from where they are they will definitely go up but the problem will you have is the deficit will mushroom. because of the amount of capital and spending that will go. right now i think that itself what they need to do rates are so low, so i think you are going to see this huge amount flowing into this system. the fact that taxes go up is irrelevant, relative to the amount of money that will be in the system that's why the market is positive about that. that's how it will be. you will have positive gdp in the next years or two. >> i think some pals don't think

it's that relevant if you talk about changes in the capital gains rate, carried interest and how all of that may follow through in the years ahead. there could be a change for many, many people on wall street >> yeah, that's wall street. when you are looking at it for most americans, what most americans are worried about is not wall street. what they're worried about is that for them, things are working. so if you got this stimulus checks that are coming if you got capital going into the system, if you've got positive uv, that's great for the vast majority of americans it may not be good for americans that don't want their capital gains stock going up, nobody is, i don't think congress or the president will be focused on that they will be focused open how are you helping the vast majority >> you have good visibility into china. what do you think the relationship is going to be between the bidened a men strikes and china?

>> i think it's going to be better just because there is going to be more dialogue and you are going to have less threat. i think this administration is still going to be taking a pretty hard stance, but at the very least, i think china will know where they stand. >> lastly, before i let you go, as we continue to watch dignitaries arrive for the inauguration of joe biden, marc, your thoughts on a changeover in the sec. i'm not sure if you know gary genzler as all, know of his record or what you think of it but how do you think people in wall street and the seats you sit in and should be thinking about a new sec and what that may look like as we see the soon to be chuck schumer making his way down the staircase as well >> i don't know gary as well i know his reputation. >> marc, we'll talk to you soon. thank you for your time.

carl, we'll send it back to you. >> scott wapner, thank you very much with marc lasry there, as we see people filing in, filling the seats. we saw patrick leahy a few second ago it will be interesting as we turn our attention in the next hour to the inaugural address and gauge the degree to which the incoming president tries to reassure those who did not vote for him. he has done this a couple different times in smaller settings, obviously, but they have a vested interest in the continued growth of the recovery, the economy, the market itself. we'll see, how much of that stitching he tries to weave into his words. >> there are no challenges facing soon-to-be president bind, carl as you point out a large number of americans who believe incorrectly, of course, that

there was fraud in this election there was not. but they had been stoked as the majority leader or mitch mcconnell said yesterday by the president, the former president, son-to-be trump. we will see how far president biden will go to reassure them or at least bring them back to reality. i can guarantee you won't hear the words american carnage in this speech. >> yeah. >> i think wording is going to be everything, especially because you did have more than 74 million americans that did not vote for biden, speaking very specifically to the point that you have an incredibly divided country right now. as they unfold before us it's going to be a very busy afternoon after his inauguration

for our president-elect biden the 46th president when he officially becomes that, with something like 15 executive actions expected on day one this afternoon. there is focus on everything from revoking the permit for the keystone pipeline, implementing a national mask mandate on federal property, reversing the travel ban from several largely muslim and african countries immigration will certainly be a focus in general.l addressing racial equity, calling for extending the federal eviction moratorium until march 31st. a pause on interest and principle payments for direct federal loans until the end of september. can i go down the risk we are i don't knowing the paris climate accord all of that is expected j you this afternoon into the next several days so this is a president who will be hitting the ground rung and certainly has a very busy a

agenda >> we'll be watching to see what kind of immigration package biden is going to be sending over to the capitol. meanwhile, guys, the reaction is coming in from various parts of the business community, the chamber of commerce today ranks the chamber strongly cautions against a return to excessiv regulation or anti-competitive taxes of the historic strength of our pre pandemic economy made possible in large part because of pro-business policy and regulatory relief that unlocked growth so markets, obviously, are hopeful and optimistic about the future, david, but it's going to be wary of policies that undo some of the growth we've had. >> yeah, well, you heard it in our conversation as well in terms of with gene and glen in terms of taxes and whether how much they may go up on, of course, morgan, it's strange to think of beyond the tax bill of

2017, other ljs lative accomplishments. there are many executive orders. there was a great deal done as a result of trade with china and so many other things there was sentencing reform i think, hard to remember, a lot beyond the tax bill, of course, which the president trump point to the many, many times as a freight success. although, there were others who argued not so much given it did not seem to pay for itself as secretary mnuchin said it would so many tames. >> yeah. there was the tax reform i don't know if you mentioned the regulatory deregulation rollbacks we saw as well, i think going back to those comments carl did read and how many of those we will now see reimplemented. in the meantime, though, taking a look at markets, we are at record highs, the s&p, the nasdaq is up more than 1.8%. the s&p as well is up more than

1%, carl >> we got a look a moment ago as the senate is at the capitol today. not marco rubio, he won't be able to attend because he is looking at confirmation process. tom daschle joins us, a former senate majority leader from south dakota it's great to have you with us >> i'm looking at you. thank you. >> i'd like to ask what you think the address needs to accomplish this morning. then i'd like to follow and ask what you think the senate needs and will do as it is s on the receiving end to a lot of proposals in the coming weeks. >> i think it has to be addressed and i know will be addressed is one of unity of ability to come together to recognize tremendous challenges we face as a nation, to realize the history we have just experienced and to do as much as

possible to create a consensus, that's not easy. if anybody can do it, joe biden wi will >> former president clinton and senator clinton making their way to their seats as for the senate, leader daschle, can power be shared effective live in this environment or not >> well, the last time we had a 50-50 senate, i was fortunate enough to be the majority leader i had a remarkable partner in trent lott we worked through a lot of challenges together. it took us about three weeks to get to the organizing resolution completion, but we were able to do it, in part, because we trusted each other we talked with each other. we involved each other we talked to our caucuses and brought them together. that same effort is going to have to be a big part of the challenge of the two leaders

now. working together, which i know is always difficult, especially under these circumstances, it's really going to be essential they've got so much on their plate. they have an impeachment, the covid crisis they have a robust agenda. they have the challenges of overcoming what we just experienced within the last two weeks. all of that together presents challenges that trent lott and i didn't have but have to be addressed successfully. >> senator, as we did just see those images of the clintons and to your point, does this feel like setup that you experienced or are there some key differences, given the fact that it's not just the republican party that has gone through some major changes fundamental changes in ideological changes but also democratic ones >> that's right. time doesn't stand still and we've seen a lot of change in the last 20 years. i would say social media has been one of the biggest factors and catalytic in creating the

kind of political circumstances we are facing today. >> for, we will just take a moment to listen >> the honorable hillary rodham clinton. sn♪ ♪ >> senator, just to bring it back to you. pardon the interruption, but as i'm sure you can appreciate from your own experience, we are continuing to monitor this in real time as breaking news but just to get back to your point and the thought you were just making. >> i was just going to say, i think that the social media consequences of the last 20 years aims the dynamics and the environment around politics a good deal. it's not the only thing. but that has caused some of the polarization that i think we are

experiencing now just the absence of the president's tweets in the last week, i think it demonstrated just what an effect those tweets have had so, we got a lot of work to do recognizing that the times are a lot different. >> well, yeah, but, senator, given the legislative agenda that's administration starting, of course, with what they're hoping will be a very large relief bill and followed after by infrastructure, what advice, if any, would you give them given, as you said, you went through a similarly divided senateat 50/50? >> my hope is that the president will do what he's doing today. he's really put a real emphasis on inclusion, on coming together, on unity and that is going to require a day-to-day effort. there's no simple solution here. if i would wish anything, it would be advice i've given other presidents in the past and that is invite us down once a week, invite the leadership to the white house every tuesday

morning at 8:00. let's just explore just what could be done in that given week let's talk about coming to the state of the union united around some ideas -- >> we're taking a listen here, senator, just for a moment, as we watch the clintons and the bushes descending soon to be followed by the obamas sorry to stop you there, senator, as we watch the last three presidents prior to president trump who will not be attending the inauguration, probably getting ready to land very soon in florida vice president pence will be in attendance go ahead sorry to cut you off, senator. >> i was just saying that i think it's important for a real effort to reach out, to try to coordinate and collaborate together to do as much as they

can to create a chemistry, a personal chemistry, whether or not they agree on every one of the issues, but a meeting every week down at the white house inviting the leadership to camp david to talk about the agenda for the coming year, having joint caucuses in the congress where the two leaders come together as trent lott and i did. i think you have to do those kinds of things. create the kind of climate for comity and accommodation and compromise that is going to be so necessary >> senator, i mean, i think to that point, part of how we got here -- one more time we'll just listen in. ♪ >> ladies and gentlemen, the 44th president of the united st states, the honorable barack h. obama and mrs. michelle obama. ♪

♪ >> all right, senator. we're going to pick it back up there, as we do see former president obama and former first lady michelle obama enter now and joining the other former presidents as the ceremony continues. part of the reason i think the key reason for why we got to where we are today, whether it was at a moment in time, the unlikely election of donald trump, and the last four years we saw, whether it's the election now and this moment we're in there's been a lot of talk about k-shaped recovery has been the erosion of the middle class and the working class here in this country. i realize there are fundamental differences in the two parties and how to address that, change

that, fix that, but i do wonder how much of that situation from a socioeconomic standpoint now needs to be the focus when we do talk about something like healing or reunification >> i think it's absolutely essential. it's clearly one of joe biden's highest priorities, addressing institutional racism, the chasm of the economics in this country, the real need to understand the importance of some of the basics -- a good education, a good health care system a recognize of a good job with a good minimum wage. all that have is on the biden agenda and i think we'll get the kind of priority it truly deserves. ful we do that we're not going to address some of the fundamental challenges we face in our democratic republic today. >> meantime, senator, we do have wheels down, air force one in west palm beach. a look at the chief justice and

the others as well it reminds me of the clash 2003 saw but to a larger degree the way judicial was redrawn by the executive in the past four years. i wonder if you see any of the policy goals that biden is coming in with meeting resistance from the courts >> i think there's always that realization that we have the checks and balances in our government for good reason that was designed by our founding fathers that system of checks and balances works well sometimes. other times it needs correction and review and obviously i think we're going to go through both, success stories and challenges as we face the next four years there is a conservative court especially on the supreme court right now that will be in evidence as some of these decisions come down. some of those decisions can be rectified by new statutes and new executive orders

the systems of checks and balances we've revered for 200 years is an important part of the democratic process >> as you're talking, a brief picture of justice sotomayor who will swear in the vice president-elect later on today senator, it's great to have you. thank you for the guidance and wisdom today see you soon >> okay. >> tom daschle meantime, kayla, we're beginning to see the end of the officials coming in and maybe the beginning of some family members as well. >> reporter: yeah, we are expecting that procession to take place momentarily as elon mentioned earlier, everyone has been covid tested before being allowed to sit on the dais up here on the west front of the capitol a very limited footprint here. history being made on several different fronts, carl when the president-elect took office in the senate in the early '70s he was the fifth youngest senator then. today he will be the oldest

president inaugurated into this office it was something that came up multiple times on the campaign trail, but he has proven to be a viable candidate, a very vivacious and energetic during his transition keeping long hours and a packed schedule. we will see how he governs from here he's been described as a weathervane of sorts, has always had a sixth sense as to where the party is going and what issues will be of highest importance, and he's been able to be malleable in that sense and drift in that direction. worth noting, he almost didn't serve in his senate seat back in the '70s because of a fatal car accident where his first wife and his daughter naomi died. he was absolutely shattered. of course he is no stranger to personal tragedy he said perhaps it was that emotion that was within him, he told stephen colbert several

years ago that would disqualify him from serving as the commander in chief but certainly in this moment in time that is something that resonated with voters as a mass period of mourning is under way. 400,000 dead in this country and now there is a leader taking office who is personally acquainted with that type of tragedy, carl. >> kayla tausche, thank you for bringing us that context on this historic day carl, we continue to keep an eye, as there are more arrivals, more people setting up and preparing for this noontime ceremony and in the meantime we are seeing the markets continue to rally, carl. >> i was just thinking, we can't take our eyes too far off what stocks have done today maybe, morgan, taking some heart in the orderliness of the proceedings.

♪ ♪ ♪ ♪ >> we are about to hear the introduction of the vice president, mike pence, whose appearance here today, of course, collides with the absence of president trump, the first sitting president not to attend his successor's inauguration in more than 100 years. our coverage is going to continue of the inauguration with our own shepherd smith.

and good morning on this historic day we're less than an hour away from seeing joe biden take the oath of office and become the 46th president of the united states a new day in america, says mr. biden. these are live pictures from the capitol where the ceremony is about to official begin. distinguished guests continue to file in. presidents obama, bush, clinton and their wives all there already. there you see the sitting vice president, mike pence, and his wife expected to arrive at any moment president trump, of course, is not in attendance. mr. biden called that a good thing. now all inaugurations are by their nature historic, but this one will stand out for years and generations to come. for one america is about to swear in its first