capitol hill two democratic senators from georgia will be sworn in around 4:30 chuck schumer will take the majority gavel we will see whether they confirm any of the biden administration nominees so they can get to work on day one thanks for watching "power lunch. "closing bell" picks up on inauguration day coverage right now. thank you. welcome, everyone, to "closing bell." a very special edition i'm sara eisen with wilfred frost. history in america the 46th president of the united states, joseph r. biden, taking the oath of office three hours ago. now the presidential motorcade is set to depart arlington national cemetery. we'll travel with -- they will travel with full armored guard to 1600 pennsylvania avenue where he will enter the white house for the first time as president with his family. vice president kamala harris will enter the building next to

the white house shortly thereafter soon after they'll get to work as we speak a new record high for the s&p 500. communications services, tech higher some strong earnings numbers the nasdaq is up the most. 2% but, wilfred, we could be looking at record hot closes for the dow, s&p, nasdaq, and maybe even the russell >> the russell just a few points away the president actually took office just over three hours ago. we are about ten minutes of schedule back then we are about ten or 15 minutes behind skej unite now. we'll have all of the highlights as he leaves arlington national cemetery and arrives at the white house for the first time as president a building he knows all too well we have a great lineup on this historic day to help break down the inauguration and how the biden presidency could hit the markets. we'll speak with eurasia group's ian bremer and others with their outlook for the market and economy plus hear how labor leaders are thinking about the new administration when we are joined by the afl-cio president.

we'll talk with former obama white house senior adviser valerie jarrett to get the latest on which direction she expects someone she knows very well she expects president biden to take in the white house u we have highlights from president biden's first speech in office and a look at how this could affect his agenda and tracking all the markets. let's begin with president biden's inaugural address. >> you never expect a lot of policy specifics in an inaugural address and this certainly didn't include many either this was emotional, heart felt, pitch from joe biden directly to the country, a message of unity here biden saying we have to end this uncivil war that pits red against blue and saying that today despite the violence we saw on the very spot he was standing just two weeks ago biden saying today democracy has prevailed. so a message of hope, unity, and

sort of trying to rally the country here from biden, who did speak directly to some of the economic anxiety that people across the country feel. here's what he said. >> many of my fellow americans view the future with fear and trepidation. i understand they worry about their jobs i understand like my dad they lay in bed staring at the ceiling at night wondering can i keep my health care? can i pay my mortgage? thinking about their families. about what comes next. i promise you, i get it. >> reporter: so biden is saying i get it and the team that has to get it done is his economic team led by janet yellen his pick for treasury secretary. we'll watch to see if any of the senate confirmable positions have any difficulty on capitol hill as they go through the confirmation process no indication of that so far but this is the team that is going to be tasked with dealing

with this $1.9 trillion economic stimulus and covid relief bill that the new administration wants to push through as the center piece of their rescue effort designed to restore economic stability in the united states and then later in the administration pushing for a massive infrastructure spending bill as well those will be the two big economic initiatives that we see from this administration in the first couple of months we'll watch to see whether this new tone in washington that we're seeing today, wilfred, will carry over into some of the lawmakering up on capitol hill or whether we see a descent back to the gridlock we've seen over the past couple months. >> as you said a clear message of unity for the domestic audience a message was there for the international audience as well one line that stood out we will lead not merely by the example of our power but by the power of our example. saying also that we will repair our alliances, referring to international alliances. and some of those early executive orders tilted in that direction with the w.h.o. and focus on the paris climate

accord as well >> reporter: absolutely. this is a president who says the united states needs allies and rejects the america first approach of the trump administration he says that in order to confront some of these large challenges the united states has we have to work in concert with allies in nato, for example, allies in the pacific dealing with the chinese economic and military threat there. so this president has a task laid out for him here of repairing some of the frayed alliances over the past four years, the nato allies who feel a little bruised and batteredb the american government over the past couple years. now biden is going to come in and set a new tone and we'll see whether he makes his first international trip, where he chooses to go, how he chooses to highlight that but you can imagine that inside the white house they're already thinking about that now even as some of the biden aides have just gotten into the building and are unpacking for the first time right now, wilfred. >> thank you >> reporter: you bet. >> the festivities and historic

events are not over. the democratic winners of georgia's special election will also be sworn in today tipping the balance of power in the senate >> reporter: we have already heard a lot of soaring rhetoric today about the surge for common ground abthe need to reach across the aisle but that is going to start with navigating the nuts and bolts of how to run an evenly divided senate both chuck schumer and mitch mcconnell are looking at what happened in 2001 as a blueprint. back then trent lott and tom daschle were running the show and one of the most important decisions they made was put an even number of republicans and democrats on each committee. that set the tone that power was meant to be shared though in the case of a tie vote in committee the bill could still be brought to the senate floor. now, the two men have also had a special hotline to each other during their time in office. it was literally a red phone but it is not clear the same working relationship exists today between mcconnell and schumer. things are even more complicated because of the impeachment

trial. mcconnell wants an assurance democrats will not get rid of the legislative filibuster for the next two years at the same time, democrats are also dealing with an incredibly slim majority in the house progressives are already pushing to make those $2,000 cash payments recurring and they're warning leadership not to squander the leverage they do have meanwhile the moderate blue dogs, fiscally conservative democrats, are urging the administration not to forget the nation's debt path is unsustainable once the pandemic is over. so, guys, the theme of biden's inaugural address was unity and that message is going to apply not only across the aisle but also within his own party. back to you. >> good point. you touched on some of it, ylan but what is the feeling about the $1.9 trillion stimulus plan biden has laid out and how quickly it could pass and whether it could indeed pass >> reporter: i think it could pass the house fairly quickly and the hope is there could be some sort of legislative text or a bill by early next month the question is really what then

happens in the senate. what we heard during janet yellen's confirmation hearing i believe just yesterday was that republicans have real concerns about the overall price tag of the bill they're worried it is not targeted enough to the emergency need at hand and they are concerned about spending another nearly $2 trillion after they just spent a trillion dollars in the last package and that money has yet to run out so i think it is going to be difficult but not impossible to gain bipartisan support and this is going to be a test of biden's approach, his leadership, and his working relationship with republicans over in the senate >> ylan, thanks so much for that meantime stocks claiming on this inauguration day with the s&p 500 and nasdaq setting record intraday highs all three major averages set for closing, the russell just about there for one as well. mike santoli tracking the market action as always for us. >> kind of a resumption of the trend since october 30 which had been on pause for a couple weeks. one year the s&p 500 shows really steady, basically the same angle we've been operating

on for a while here's what we've been talking about. for about ten days to two weeks the s&p was sort of stalled out and consolidating and perhaps today with mostly the help of the very large nasdaq stocks netflix kind of clearing the way for people to rediscover faang and faang related stocks is what is carrying the s&p right now. look at a four year glimpse of the s&p 500. this obviously captures the trump presidency and what is really interesting is not necessarily the overall performance, which was certainly good 15% a year or so, annualized i'm looking at this right here, this acceleration into january of 2018. that was after a year of anticipating the tax cut bill and things like that that doesn't look too different from this angle here this is not -- this doesn't show all percentage gains the same so this is not quite as steep as it would otherwise look that was really a huge vertical acceleration and i think also after the 2018 sell-off you also had something like that going into the first quarter of next year what it raises the possibility of is somehow you do get these big, strong, early year flows

especially after a change of administration and maybe that somehow creates a little bit of a break down the road in the first quarter. this is the economic policy uncertainty index. when this is up it means policy is much more uncertain we have a lot of things outstanding in terms of fiscal stimulus not so much the fed. other periods like this when you had a lot of uncertainty the early part of the last decade 2011, debt ceiling, fed, all the rest of it that is actually bullish on a forward going basis. once you have a lot of uncertainty the markets are looking at all these different issues in play as you get it resolved it tends to be better for the market. so this is a renaissance macro basically saying above this line it tends to be okay. obviously assuming that the market hasn't already priced in the positive implications of when it gets resolved. that is something worth watching as well, guys. >> mike, clearly netflix a crucial factor today the stock is up 18% as we stand in boosting a lot of the big cap tech stocks as you said. is morgan stanley also showing the flip side that even if you have strong earnings if you've recently had a strong run there

might not be that much more short term run for up side >> yesterday goldman sachs, morgan stanley today the flows have been so intense as people try to chase exposures in financials, cyclical stocks, small caps, financials all these areas that have really been on the run for two months that was at the expense of large cap growth which of course was the preoccupation of the market last summer. i think part of it is the set up into earnings. part of it is just we were due for a little bit of a retracement of that trend where everybody was grabbing for those cyclicals and were ignoring some of the large cap growth stocks you saw the flows out of things like the nasdaq 100 fund recently and now of course spilling back in. >> thanks so much for that off the break eurasia group's ian bremer on how the rest of the world is viewing america's new leadership and more. a big show still ahead that was a live shot of arlington national cemetery awaiting president biden's departure to head to the white house for the first time as

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welcome back president biden and vice president harris are currently departing arlington national cemetery enroute to the white house, a journey likely to take between 10 and 15 minutes. we will keep you updated on that journey and certainly the arrival at the white house in due course joe biden of course was sworn in as the 46th president of the united states earlier today and is already getting to work intending to roll out a number of executive orders focused on covid-19, climate change, and advancing racial equity. those actions include re-engaging with the world health organization, rejoining the paris agreement on climate change, rolling back trump's environmental actions, and reversing the muslim ban joining us now for more is

eurasia group president ian bremer thanks for joining us, ian good to see you. >> hi. good to be back with you >> so if there has been significant damage done to the image of america and american democracy over the last couple of weeks, to what extent have today's events reversed that >> they help and i think different buckets depending who you are around the world. if you are canada or mexico as upset as you've been by the last couple weeks and even the last four years you don't really have a choice i mean, you're going to align with the americans because we're overwhelmingly powerful. you're overwhelmingly integrated with us. in europe, there is going to be a honeymoon but there is increasingly the sense of what they call strategic autonomy that emmanuel macron is increasingly driving a reality that they don't believe they can count on the americans as much as they once had and furthermore they are not as aligned in terms of policies on climate, on technology, which is becoming a really big issue, as well as on

trade. and even with the honeymoon and even with the biden rejoining a lot of international organizations, multi lateral initiatives, you'll see the europeans will have a ceiling on how much they can reintegrate or are willing to reintegrate with the americans. then you have an asia, american allies, that are increasingly concerned primarily by china getting a lot more powerful and a lot more assertive that growing strategic reality as the united states and china have relations that are confrontational, were under trump, are going to be under biden, is really hard for them to navigate. so this is a world order where it is much more complicated than just saying, okay. biden is in. now we go back to status quo anti there is no status quo anti. >> just watching live pictures of president biden's motorcade leaving arlington cemetery heading to the white house what stands out for you of the early executive orders are you surprised by any of

them things like rejoining the paris climate accord will that go down well with allies in places like europe >> of course i mean, the paris -- leaving the paris climate accord was literally opposed by every other country in the world given how divided the world is it is actually hard to pull that off. so it was, as much of a lay-up as one could imagine for biden to say he is rejoining paris, for biden to rejoin the world health organization, anthony fauci is going to a w.h.o. executive committee meeting i believe this weekend i mean, leaving the w.h.o. in the middle of a pandemic is pretty much an obscenity from a policy perspective that is welcomed, too. so you have a lot of those easy things to do and certainly those countries around the world that are most committed to rule of law and multi lateralism here i'm thinking germany, japan, south korea, thinking canada

they're going to be much happier in this environment. last year we didn't even have a g7 summit. the g 20 was kind of irrelevant. you'll see much more engagement keeping in mind biden and his team have been around for a long time and their personal networks with the leaders of most of america's allies are pretty deep and long standing. that personal connection does actually matter. >> sort of a controversial question, but is it really in our best interests ian to return to a multi lateral strategy on a foreign policy front i think a lot of people would argue that president trump did have some foreign policy wins in the middle east which didn't get talked about a lot certainly confronting china. so do we want to go back to the way things were? confronting for instance china with our allies which never seemed to work >> so a couple points on that. first, on some of the biggest wins like on china and taking a harder line on things like

technology where we didn't really have a policy under obama/biden, not only has that been successful and brought american allies together with the u.s., but the incoming biden administration has agreed it's successful same thing is true with the abraham accords. you know, you had john kerry secretary of state saying it would never happen until there was an israeli/palestinian deal. there is no such deal. there is normalization anthony blinken, jake sullivan all said, yeah we want to support that. let's keep in mind that when americans talk about multi lateralism frequently what they're talking about is not surprising or embarrassing allies, not tweeting suddenly when your own team doesn't know what the hell you're doing and instead sitting down in a room with them and saying okay. here are our perspectives. we're the most powerful country so we're going to do things the way we want. it's not as if the biden team are truly multi lateralists but they do believe that american-led international

architecture tends to result in more american interests than leaving that architecture. we are the ones that created the world health organization after all. we are the ones that created the world trade organization after all. there is a belief that those institutions actually benefit multi national corporations that are the wealthiest ones are based in the united states >> obviously though the immediate concern, ian, is covid-19 and fighting that here in the u.s. and then helping the rest of the world. so dr. fauci says we can achieve herd immunity hopefully by this fall if the vaccines continue to get distributed at a faster rate and people do take them. what about the rest of the world? how long is that going to take >> longer. i mean, you know, i see the fact that the medium and lower income countries are not going to start getting significant distribution of vaccines until after the united states and the europeans have most of our populations

covered. and, you know, that is not a surprise the wealthy countries bought up in advance as much of the vaccines as they possibly could. this isn't coordinated with some kind of global government. these are largely private sector initiatives supported by wealthy governments. now, under biden, you've already seen an announcement from tony blinken the incoming secretary of state that the united states will join the co-vaccine initiative and you'll be able to get some support to bring vaccines to lower income countries. but again, it is going to take longer they also don't have the same supply chain, the cold chain supply chain they would need which means most will not be able to get the moderna, pfizer vaccines which are the most effective. instead they'll have to have the as astrazeneca, j & j, chinese vaccines which won't provide as much efficiency in response. so the difference, and in the same way we're seeing a gap between rich and poor in the way we've not been able or able to

rebound to the coronavirus economic crisis in the u.s., you're going to see that gap grow between wealthy countries and middle and lower income countries as vaccine distribution is truly unequal. >> ian bremmer, thank you very much for joining us on this inauguration day we appreciate the analysis as always. >> a pleasure. we've got just under 40 minutes left of trade. dow is up more than 200 tracking for a record close still ahead, kyle bass with his thoughts ohow esenbin pridt den should approach relations with china. stay with us on "closing bell. labradoodles, cronuts, skorts. (it's a skirt... and shorts) the world loves a hybrid. so do businesses. so, today they're going hybrid with ibm.

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we're back stocks climbing on the first day of joe biden's presidency. s&p 500 and nasdaq both set intraday record highs. we are set for record closes as well for the s&p, the dow, and the nasdaq as things stand the russell 2000 at 2158 is just fractionally in the zone as well we could have four record closes on the first day of joe biden's presidency let's have a look at the final market score card under president trump. the nasdaq was the big winner climbing 140% since trump's inauguration in 2017 the s&p, 70% the dow around 60% we have a live shot of the ongoing journey from arlington national cemetery to the white house getting much closer of course now to the white house. expecting arrival in about the next five minutes which we will

bring you live of course when it happens. in the meantime though, we will take a quick break and be right back with that arrival and of course what is set to be four record closes for the market on this first day of president biden's term area homeowners

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president with his two surviving children and a number of his grandchildren. you know, it is very dirfferent than normal inauguration days, but there is still a lot of splendor and symbolism and significance here. >> reporter: this is a much shortened version of the inaugural parade we're used to seeing in previous years but we are going to see some of the ceremony you're talking about. the president will receive a presidential escort from 15th street over to the white house we're told every branch of the military will be represented including the u.s. army band, joint service honor guard, commander-in-chief's guard, fife and drum corps from the u.s. infantry's third unit the old unit, the same guard that protects arlington national cemetery and the tomb of the unknown soldier as we watch here and wait to see where and when the president might decide to get out of that limo that's been a decision that's fraught with all sorts of timing and security

considerations in past years even more so this year even with washington, d.c. on as much of a lockdown as it is. this is a fascinating moment to watch because it is joe biden, the former vice president, now president of the united states, entering the white house complex. a complex that he knows so well and has spent so much time in. of course, there is the famous photo of him in the situation room photos of him with president obama side by side during those eight years of leadership. and now he takes over as the man in charge and you wonder as he sits in the back seat of the beast there, for the first time, it's his limousine, how that weighs on him and how this experience is different in order of magnitude different from the vice presidency, itself. the building he's familiar with. the policies he's familiar with. the personnel in so many ways he is familiar with but the leadership mantle is just different this is a job unlike any other

job on planet earth. biden has been as close to it as just about any candidate has ever been, but this is a different role for him and we're watching him accept that mantle of leadership now with the shortened pomp and circumstance of the inaugural parade that we're used to seeing but, nonetheless, we'll see some pomp and circumstance here, sara. >> as you said, it is now his limousine. has an updated plate as well, 46, to show case that factor >> reporter: right. >> as you said, he knows the white house very well already but it is now for the next four years at least not just his office but also his home we saw his emotional good-bye yesterday to say he was a proud son of delaware. but the white house will now be his home and office for the next four years how quickly will he be getting to work? we know the executive orders that are due to be signed. are they already typed up and on his desk waiting to be signed today? tonight? >> reporter: i would imagine those executive orders are in the oval office now just about

ready to go. the staff has been in there. the bidenstaff has been in the white house for about three hours as you see the motorcade there coming down 15th street, passing by the treasury department, just underscoring the scale of the economic challenge that biden will face as well as he deals with some of the executive orders and when janet yellen takes over that treasury department as soon as she is confirmed which we expect should happen without event this is an administration that will be dealing with an economic crisis that is by logical in its foundations -- biological in its foundations unlike any in the history of this country and dealing with it at a time of intense national division. and the treasury department is going to be called on as you see it there behind the president's motorcade is going to be called on to do extraordinary things. they're talking about $1.9 trillion in spending and that is just the first tronch according to the president of the united states.

there's going to be more spending behind that so this is an administration dealing with challenges the likes of which we have never seen even though this is a president who comes into office, wilfred, in an emergency environment that is maybe reminiscent of the economic emergency in which he came into the vice presidency back in 2009 and the financial crisis that was precipitated by the wall street meltdown of 2008. so he is used to dealing with crisis but this is a crisis on top of a crisis on top of a crisis, wilfred. >> a whole nother beast from the 12 years ago financial crisis. seeing the motorcade still passing the treasury department. i guess when it gets to 15th -- when it gets to pennsylvania avenue that is where it will stop and we will see presumably the president with his family, vice president, and her husband, walk down pennsylvania avenue. it struck me when you said that, you know, when he was president

before, he'd been in that white house. this is a whole different role president trump when he entered sought to undo so much of what president obama and vice president biden had done and now here it comes president biden through these executive orders and through a number of his policy actions wants to undo what president trump has done. how difficult is that going to be how much can he actually do on that front >> reporter: well a lot of it can be accomplished by executive order because a lot of what president trump did at the end of his term was by zekexecutive order and those can be simply reversed trump was a president who viewed himself as the mirror image of barack obama who decided sort of the main thrust of his presidency would be undoing the obama legacy and compared himself in public and in private to president obama time and time again. i don't think you'll see thap kind of rhetorical comparison from biden to trump. but you will see the reversals

from biden to trump. that reflects just the incredibly divided nature of american politics and the pingponging of policy happens because we are in a 50/50 country right now which is represented literally by a 50/50 split united states senate whichever party comes into power is going to try to do everything they can to undo what their predecessors have done you heard now former president trump this morning talking about the things he viewed as his gre greatest accomplishments including tax cuts and deregulatory effort the trump administration put into place. i don't think you'll see a re-regulatory effort by the biden administration as intense as the deregulation we saw from trump but you will see new regulations from the biden administration as they grapple with the role of the federal government in a covid crisis in an economic crisis in a polarized and divided american political crisis you know, the team, the biden

team just released their list of acting u.s. officials who are now in charge of the government, names heading up every single government agency as of today. and that is sort of underscoring the sense of difficulty that they feel they might have in terms of getting a lot of these people that support the biden team passed through the senate and confirmed. that can be a lengthy, time consuming, and sometimes controversial process. they have the acting officials in place they put the names out now to let the american people know who is running this government right now as joe biden takes the wheel. so to speak. and we'll see momentarily here if he gets out of the beast, the presidential limo. >> we're waiting for that. thank you. stay close we have seen the motorcade come to a stop just outside of the treasury department at 15th and pennsylvania avenue where we are waiting for president biden to step out with his family and make their walk down pennsylvania avenue to 1600 to the white house for the very

first time as president. in the meantime let's get an investor's point of view on all of this as we look at stocks, trading at record highs. we're set to have four record closes kyle bass joins us from hayman capital. we usually talk to you about the u.s. and china relationship. you have praised president trump's confrontational, tough stance against china i'm not sure how you feel overall politically but what are your thoughts as you watch this historic day today and the markets' hopeful celebration along with it. how are you feeling? >> i mean, look. i feel great i think america has taken a step forward and i know people like to talk about the division in our country but if you look to the place where there was unity, you look at the place whether hong kong or china, the hong kong human rights act, you look at the unity you're seeing between outgoing secretary of state pompeo and incoming secretary of state tony blinken all agreeing on china's

aggressive actions against its people being genocide and crimes against humanity the tough stance on china has passed with unanimity through the house and senate so i look through the divisions to where we have unity and we need to keep moving forward with, you know, tony blinken just said tuesday that china poses the most significant challenge of any nation state to the united states i think you are seeing continued rhetoric and i think we will, like these are just facts, right? these aren't political sides challenging one another. they are just facts of the situation. i'm enthusiastic about biden's energy and climate plan and what it will do for our country and what we can do as investors around that and excited for the continuity in that secretary of state position >> china imposed sanctions on mike pompeo, peter navarro, and a few others today do you expect the biden administration to come out quickly and condemn that, keep

quiet about it, and what kind of impact could it have on the market if the tone to start this administration between the u.s. and china is as challenged and testy as the last four years >> i mean, look, wilfred, the way i see it is everyone that receives sanctions from china should receive a medal number one. and number two, what do the sanctions actually mean? nobody cares about chinese sanctions. i bet these people don't have bank accounts in china i bet they don't travel there very often i mean, it is the most repressive, evil regime in the world today. i think you'll see tony blinken and curt campbell and jake sullivan come out and tell us how it is. all we need is the truth we don't need any political smearing either way. we just need to hear about what is exactly happening and what the united states is going to do to protect itself. i think the new team coming in is incredibly capable of doing so >> there are still tariffs on $370 billion worth of chinese exports that come into this

country costing american consumers and american companies. are they accomplishing anything, kyle should they stay >> yeah, i think, let me give you an example of a tariff that is absolutely necessary. if the chinese nation state decided they wanted to put our aluminum business out of business the number one import into aluminum smelting is power. they can just give free power and real estate to the smelters which they did and took our capacity utilization from 85 to below 60% in one year our entire aluminum business was about to go out ofbusiness, sara so there are certain tariffs that must be enacted against nation state actors that aren't acting economically but out of malice, acting in a way in which they're looking to dominate various industries this isn't just a textbook view of whether we should embrace globalism or not we have to do things that protect our economy. >> we of course have markets at record highs expected to have four record closes as we await

the president and first lady stepping out of the motorcade any minute now it seems. how much do those record highs, kyle, and the market highs we've seen of late more generally, rest on this big stimulus bill, $ $1.9 trillion passing and passing fairly quickly >> so i see the next four to eight years being more of the same from both the fed, the treasury, and the government we're going to have to keep expanding the central bank balance sheet. we're going to have to keep running huge deficits, which means that, unfortunately, the natural consequence of that is the rich are going to continue to get richer, the poor are going to stay poorer, and the middle class won't be able to move up. they won't be able to reach. and a move in minimum wage just creates $15 hamburgers that's great and all but what that means is we're going to see inflation. and i think we'll see significant inflation in food, land, and housing, and cars. and that's a tough environment to invest through except we're going to see nominal stock

prices continue to move higher i still think we'll continue to see record highs in the stock market for years to come >> kyle, we've got to break in here and take the president biden -- we don't want to miss this moment. of course it is very historic. >> by all means. >> his first walk to the white house. just hang on tight if you would. we're seeing president biden there, dr. jill biden his wife, where he is joined by his family, his two surviving children, hunter biden, his spouse melissa coen, their four children i believe, ashley biden his other daughter and beau biden's children will be joining them as well natalie and hunter walking hand in hand there down pennsylvania avenue from the treasury department to the white house where they will enter for the first time as the first family we have some of the historical significance of this moment. >> reporter: sara, this is a gesture to sort of normalcy in

washington, d.c. even amid a pandemic, even amid its security crisis, even amid an economic crisis you're seeing the president and first lady walking down pennsylvania avenue surrounded by family a celebration really of their family as you see them all holding hands, a celebration of country as the president and first lady will enter their new home for the first time here in just a couple of minutes and, you know, it strikes me just watching this how many of these we have seen over the years and how many versions of this we have seen and the one little detail that leaps out at me in watching this are the secret service agents behind joe biden there. i've stood a few feet away from some of those same men, who were standing a few feet away from president donald trump during his four years in office now they're protecting joe biden as we see him make a move here to the sidelines some of the supporters and members of the media gathered there and it looks like that might be al roker from nbc news. we'll have to wait and see

al roker has made a habit of pulling aside presidents and vice presidents on the inaugural pathway. we'll see if that is in fact who that was there just couldn't quite catch a glimpse. but look, the secret service protecting this president just as they did the previous president. and that just represents the continuity of democracy and of official washington as the handover has been, despite all of the drama and trauma, today the handover has been relatively smooth, guys >> i think it was al roker. >> it was we believe on the side there. didn't pause for any comments. >> got a fist bump >> which is more than most with this tightened security. different terms as always. but as we've been saying throughout, it's gone smoothly there has been plenty of pomp and ceremony this is a moment that is watched by all of the world. and one of the other things that people will be focused on as well as these executive orders that are due to be signed on his

desk today is who are the first world leaders he speaks to around the rest of the world and exactly what the tone is with those leaders. >> reporter: sure. you can imagine we'll get a read out from the new white house press team as soon as the president does make some of those phone calls. we'll see shortly as the president here making another jog to the side not sure, this is another -- oh, mike memoli of nbc news we can listen in somebody covering joe biden for a long time and knows him just about as well as any correspondent out there. the president is relishing this, guys i think it is safe to say. he is enjoying himself he's running to the side to talk to the reporters, talking to the supporters talking to people who are going to be covering him over the next four years and here it is the president of the united states heading over to the white house campus that is just a couple feet ahead here as the president and the first lady enjoy their walk. now joined by other members of

the family as well >> his arm around his daughter there walking in and the first lady just to the other side. and going over, again, to greet another maybe reporter or supporter. you're not there, or no doubt you would be top of the list >> i would be shouting vociferously trying to get their exclusives here. you can't blame them as you see the president just enjoying the moment a light jog for the president of the united states heading toward the northwest gate of the white house where we expect he'll turn in between the white house and the eisenhower executive office building where so many of the white house staffers have their offices. this is a president who doesn't need a map to the complex as we were just saying, wilfred. he knows his way around. he knows how these things are done this is his moment and he is clearly enjoying it. >> and has so much washington experience both in the executive branch and the legislative branch the past two occupants of the white house, some have suggested

for different reasons, didn't have the necessary experience on day one. that is not an accusation you could throw at the 46th president of the united states >> reporter: there it is as the president walks through the northwest gate on the white house complex on to the north lawn this is a restoration in many ways it was the obama/biden administration now it is the biden/harris administration and joe biden is on campus right now. and you can imagine that he's going to bring back with him so many officials from his previous time in the white house and democrats now have an opportunity to reverse much of what they see as the damage of the previous president's legacy and the president here just enjoying the view of the honor guard as he walks down this is a multi service honor guard featuring the flags of all the states of the united states. the president making his way past the north lawn.

camera positions where so many members of the media will be following him and no doubt criticizing him and questioning him from time to time. and it appears he's pausing and maybe talking to some of those members of the media or maybe talking to some of the soldiers and airmen who have been gathered for the honor guard there. let's take a listen.

>> just taking in some of the sounds there as president biden and his wife dr. jill biden make their way up to the white house on the grounds for the very first time as the first family, the president and the first lady they're stepping outside the white house. let's just listen for a moment ♪ [ hail to the chief

♪ ♪ >> the 46th president joseph r. biden and his wife dr. jill biden and their family joining them there as he turns to enter those doors, the pomp and ceremony is over and the work begins >> reporter: absolutely. striking to me, wilfred, as you watch that, we're so used to seeing the new president walk up the steps under the north portico into the white house to be greeted by the outgoing

president of the united states and there you saw joe biden and the first lady not greeted by anybody outside the front door of the white house in fact, the previous president skipped town before the inauguration, so biden left there to sort of be a self-greeter in many ways and let himself into the white house into the front door. now he is in the white house residence. >> he knows the place. >> he is in the white house residence. they'll have a chance to take a breather here, unpack, go lie down on the bed for a minute if they need to after all the excitement you can imagine that the president will be in the oval office in the west wing before too long we do expect to see a number of other activities this afternoon and this evening including a press briefing by the new press secretary jen psaki in the briefing room about 7:00 p.m. a resurrection of the daily press briefings which languished under the previous administration. this administration feels like they've got a lot to say and they'll start saying it at 7:00

tonight, guys. >> that is just what i was going to ask you the other striking element here is the difference, just in the men, president biden versus president trump, personality, style, the warmth there, the hug to dr. jill biden. so different from that day four years ago. and the press briefings are back how is this going to be different for you and other members of the white house press from where it was the last four years? >> reporter: well, i mean, physically it is going to be very different there is so much interest and drama throughout the trump administration but the press briefing room became just shoulder to shoulder jam packed. like one of wilfred's old rugby scrums in there often. you had to shove your way through the crowd in order to get a question answered. now in the era of covid it will be entirely different. the briefing room will be sparse though there is an enormous

amount of interest in the new biden administration there are strict new rules which went into place today at the white house in terms of social distancing, mask wearing, covid safety, and all the rest the number of reporters will be restricted who have access to the new president and to his press team so when you see this jen psaki press briefing tonight it will look like maybe a half emmepty briefing room compared to the shoulder to shoulder shout fests we had under the trump administration that will affect the mood, the tone, and everything else. but it is as much to do with the virus and safety precautions around that as with the level of interest in this administration. >> for sure. thank you very much. >> far, far higher than anything in my rugby. not really the right comparison. just quickly as we watch the vice president due to enter the eisenhower executive office building, just find it a little ironic after of course four years where we've seen tweets so

reg regularly from the president about the level of the stock market that we'll have four record closes most likely as we stand with five minutes left >> true. >> do you think this administration will be as focused on the stock market or more on economic line items per se than stock market line items? >> reporter: i tell you, i think they'll be absolutely focused on the stock market they'll want to know what the dow is doing every day and won't say nearly as much about it. this administration knows the political reality is if you talk about the dow on the way up then you got to own it on the way down what they want to do is focus on the long term, economic realities here they in private will want to know what the dow is doing each day but you will not hear this president i don't expect talking about it on a regular basis, you know, taking credit on updates and the loike as we watch kamala harris the new vice president pulling into the executive complex here she has an office in the west wing as the vice president she's got a very nice office in

the eisenhower executive office building she also has a very nice mansion of her own just up massachusetts avenue, the vice president's mansion at the naval observatory which she will presumably be able to get to at some point tonight for the first time but there is work to be done between now and then, guys >> thank you very much stay close as we await the vice president and her husband walking to their offices kyle bass still with us, hayman capital. we just left on the note of the markets, which is somewhat ironic given president trump warned if biden got elected the markets would crash. so far that is not true. we're headed for four record closes any moves you're making given the new makeup of congress, the new administration, where the priorities lie are you changing the portfolio at all >> yeah, i mean we're going to focus on energy alternatives, emerging energy alternatives to hydro carbons as well as the old

hydro carbon networks. i think the new energy and climate plan from the biden administration will be very positive for our country in the long run they're going to cancel the keystone pipeline. probably not going to allow any new hydro carbon pipelines in which creates some interesting value for the incumbents, the ones already in place, as well as the new technologies, solar, wind, hydro, and the transmission lines that are going to need to be put into place to get things from say the panhandle of texas and oklahoma to the tennessee valley authority. there will be really interesting things to invest around that i think the biden administration is going to set forth in its early days so i'm pretty excited about alternative energy >> 90 seconds or so left of the session awaiting vice president harris stepping out into the eisenhower executive office building we're set for four record closes i think the russell still in the right territory. what are the market internals showing you today? >> you have actually up/down

volume mostly matched along the way. this has really been the large cap growth stocks reviving after they've really been napping for a few months that's one of the elements of this day is we've had this rotation throughout the market it kept the indexes supported. but it is mostly not so much about breadth today but much more about the leadership. what is interesting is the volatility index has finally given way. clearly there was at least a little residual apprehension getting through this day uneventfully seemed like it mattered. you do see the vix falling down toward 21. pretty much the low of the last several months and that is a net bullish sign we'll see if that can continue >> as we head into the close, president biden getting a warm welcome from investors on wall street we are tracking for four record closes the dow is up a percent. the s&p 500 up 1.5%. the nasdaq is surging today up 2% thanks in part to netflix huge beat on earnings and a good outlook propelling that stock up

17%. that is really what's helping technology stocks, faang, all of them seeing big moves and alphabet the parent company of google, amazon, all higher but it is a broad based rally here into the close for the s&p, the only sector lower is financials everybody else up. communication services, consumer discretionary, and real estate topping out the list there almost goes the close and again, another strong session on wall street. microsoft leads the dow. jpmorgan lags. you are seeing strength in other names like apple, sales force, nike, mcdonald's, visa, a lot of focus on the $1.9 trillion stimulus package and the cluimat change and other policies from the biden administration >> as sara said, four record closes on inauguration day for

the s&p, the dow, and nasdaq and russell. welcome by the way to the closing bell i'm wilfred frost with sara eisen and mike santoli cnbc's senior market commentator. the dow up 0.8%. the nasdaq up 2% the russell up about 0.5 of 1% just getting into the territory needed for a record close. of course president biden will probably want to mark his market performance from election day as opposed to inauguration day because markets have surged already over the last couple months coming up guggenheim's global chief investment officer scott minerd on whether he is still bullish on stocks for the first quarter and how biden's economic team could impact the world's markets. joining us, our guests, mike, to you first of all and as we've been saying through the session led today in part because of netflix and the faang names surging but record highs on the first day of a new administration

>> yeah. i do think it was, you know, the market was not exactly holding a lot back but didn't do much for the last couple weeks at the index level. it's been mostly about a lot of the fast moving, smaller, speculative stocks today it was the old leadership that essentially resumed what they had been doing a few months ago. it's interesting because it is not so much policy driven, right? this is not the kind of market action you would see if people were all of a sudden discovering the fact that we have, you know, $1.9 trillion fiscal stimulus on the table. it is much more about the market kind of ebbing and flowing and finding a way to stay supported because the flows in are so strong and the dips have been so shallow and this was the turn of the big growth stocks. and i don't really think it was necessarily people deciding the news of the day was the reason to do the buying but it didn't hurt >> notable investors joining cnbc all day long to sound off on what they expect for the markets in a biden administration take a listen. >> we have a very difficult situation out there because i

think in the near term it's hard to fight the market. you. >> you have extraordinarily stimulative fiscal and monetary policies all of which i think is pulling demand forward but somewhere along the way we'll have to pay for the party when the party is over. >> you're going to have $2 trillion going into the economy. that is a huge amount of money, more than has ever gone in so because of that the markets view it as extremely positive and it is. it just is positive. the amount of capital that's going to be there. so you don't want to be fighting the fed at all >> the stock market is clearly looking ahead. at this point i think looking ahead into 2022 or 2030 or 2050 depending on the stock but i think that everybody is in agreement that there will be pretty robust economic growth in 2021 coming out of this. >> josh, do you share the optimism >> well, chainos didn't sound

optimistic but i would be disappointed if he did i've been hearing the mythology about how we have to pay the piper and the party is going to end. i've been listening to that rhetoric for i don't know, 11 years? i'm still waiting to pay the piper for the last big rally that took place from 2009 through 2016 before we had any sort of cyclical slowdown in stocks so we, you know, we've had periods of time where volatility we asserted itself this year will be no different it's not a bold call i'm not going out on a limb saying that we're going to see a 10% draw down at some point. start tomorrow for all we know that's not why i think most people watching this are investing. because they think the next 10% is definitely up i think if we just focus on the fact that there's a lot of stimulus and the intuitive trade is working all of the things that you think will benefit from the reopening of the economy, those are the stocks that have taken the lead since the vaccine has come along

and now you've got participation in the faangs, too it is really the best of all worlds and every time one sector gets ahead of itself, there are three more sectors right behind it and as long as that rotation continues, you got 92% of the s&p 500 above the 200 day moving average today. 92%. you have broad participation and you have a new administration who are going to try to do a lot of things and so i think this is really a period of time where we acknowledge the fact markets are up a lot but we also acknowledge there is a reason why. you might get 40% s&p 500 earnings growth this year. you might get 6% or 7% gdp growth this year what should markets be doing selling off? >> sara, the risk to that constructive view for the medium to long term is that maybe this time around this next decade compared to last decade inflation does pick up more meaningfully and rates do pick up more meaningfully such that the valuation multiples get

compressed is that a fear that people should have? >> it is definitely the hot topic year to date the question of whether inflation and the backup in yields we're seeing are going to be an issue there is a risk that is being pulled forward from what we originally thought was a 2023 issue to perhaps a 2022 issue. some inflation for equities is positive it means that the world is reopening and people are going back to business there are structural trends to consider when it comes to inflation, these headwinds such as negative demographic, higher productivity, and the key is also the slack in the labor market as long as we aren't seeing a rise in wage inflation we're not concerned about inflation in the short term >> there are other risks to consider, josh it's not just inflation and higher rates how about higher taxes, something president biden has made clear he wants to see on corporations, on the wealthy, potentially on heirs not sure how much is possible to get done there's that there's covid-19 which is still very much slowing economic activity and killing a lot of

people in this country and vaccines that are rolling out at a much slower pace than expected i mean, there are risks here to this rally, which is trading at a record close, josh what do you make of them >> you need there to be risks. if there aren't any risks and people don't feel there are any risks we would be doing ten a day right now. wow have biotechnology stocks becoming 30% or 40% of the s&p market cap you would have too much risk on behavior i don't really feel that people are behaving that way in general. i think a lot of the wild risk taking is in very specific areas like electric vehicles and some of the cloud software plays. it's not really, when you see alphabet today which i'm long have this massive breakout, 6%, #please% move today, that is pent up. that stock hasn't really been able to do a lot for six months but earnings estimates are going

higher and it's a reasonable multiple given its growth rate i don't look at that and go, bubble bubbles are in much more, smaller, cordoned off areas, companies not even in the s&p 500. russell 3000 names i acknowledge there are risks and i hope some of the risks present themselves because i have stock to buy. so, i mean, as long as you have that mindset, that absolutely, so what is the next tape bomb? i think you're dead right. the next tape bomb is going to be corporate tax or 1% tax rhetoric that's where it will come from, the next thing that will spook the market i agree with what kyle had to say about the rivalry between us and china. that'll heat up. look at chinese stocks right now. going vertical look at the fxi. look at k-web the chinese unt net names. they're going up 3%, 4% a day at this point is that china ratcheting up

stimulus inside their own stock market to make a point i don't know but i think taxes and china are going to be the two big risks and then covid we're unfortunately very used to living with that i don't think that is a new shock. >> and as we watch as well here the vice president and her husband are closer than ever now to entering the eisenhower executive office building. i believe you're able to rejoin the conversation before we pivot back to the markets. a hugely, hugely significant moment as well for of course the vice president right now >> reporter: enormously significant here you can see the vice president and her husband making their way down west executive drive and into now the eisenhower executive office building where the ornate and formal vice president's office is. just behind her of course is the white house itself as she ascends the steps to where she

will spend the next four years working on all of those intractable problems for the u.s. government that we've been talking about. and, wilfred, it strikes me as we watch kamala harris ascend here, literally, how different a political figure she is from joe biden who we were just talking about as intimately familiar with all of these buildings and all of these byways, kamala harris until 2017, was still th attorney general of the state of california she was in the senate for a couple years, resigned from that position as a u.s. senator january 18th and now entering the building as vice president of the united states she is a new face and a new force in american politics it will be fascinating to see what she brings to this job. because unlike biden, she is somebody who does not have decades and decades of experience with all of these people, with everything in the city, and with everything that's gone on in those rooms over the past several years

a fascinating moment in american politics as you look at the split screen between the eisenhower executive office building on your right and now panning over to the white house itself there on the left, wilfred. >> kamala harris the 49th vice president just entering the executive office building of course the first female vice president, the first black, and the first south asian vice president making history in so many ways as we look at a live shot of the white house, itself, where the 46th president joseph r. biden has just entered 10 or 15 minutes beforehand making significant history himself. thank you for that let's just pivot back as well to mike santoli and the markets discussion we've been having how crucial, mike, is it that both these two people and their teams successfully find consensus on a stimulus bill relatively soon for the marngts the levels they're at at the moment >> i think it is largely baked in i think it would be initially just a challenge to a market

that is arguably over believed at this point, short term, people pretty much embracing the economic growth story. it is probably going to happen no matter what we have all of this pent up savings, the extra stimulus that is supposed to go to households if this bill passes. certainly at least a marker in people's minds who are buying a lot of the economically sensitive stuff. i think it is important. it's not the make or break issue for the market more broadly speaking i don't want to look for one specific type of headline that is going to change the story. it is more about the context, the preconditions. everyone pretty much believes this thing is going higher and all the forces are behind you and there is basis for that. it is a high liquidity environment. financial conditions are very easy and you have the early recovery forces active in the eek u. could it be one of these years that the real economy out performs the stock market after last year when we had this great market year and the real eek u w -- economy was back on its heels? maybe. it is hard to see what will

change that tone those are some of the things you want to look out for >> just to show you how focused this market is on the reopening play right now check out shares of proctor & gamble. they came out this morning with such strong earnings 8% sales growth. they raised their guidance for higher growth. double digit growth in a lot of the categories people are still spending a lot more on hygiene and cleaning supplies mr. clean, tide, all the household brands surging and the stock is down 1.25%. consumer staples among the worst performing groups of the day this is all a look ahead to what happens after the pandemic >> it is and the markets unwilling to extrapolate the high, top line growth figures into the future, you know, proctor & gamble did certainly build in a pretty big valuation premium relative to its own history, relative to the market back when things were going great and it was very much a stay at home play. it is one of the biggest holdings in all of the, you

know, kind of conservative, lower volatility type. all those things are no longer the fashionable trade. i think that is why you are giving some back as well as just having, you know, people assuming the numbers were going to be good and more or less positioned for it. so it was a kind of what have you done for me lately type response >> yeah, the same with the food companies. blow out earnings and the stock goes down. thank you for joining us on this historic day we appreciate it coming up, much more on president biden's impact on the market and the economy joined by guggenheim chief investment officer scott minerd we'll also talk to afl-cio president richard trumka and former adviser to esenpridt obama valerie jarrett back in in 90 seconds. through the year 2021. - i knew snhu was the place for me

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welcome back records seeing four record closes on inauguration day and joining us now in an exclusive interview scott minerd the firm has nearly $300 billion in assets under management scott, good afternoon and thanks for joining us >> it's great to be on >> let's talk about record closes on the first day of a new administration in the short time how much more upside is there versus being timed for a bit of a pull back? >> well, i mean, look. at this stage i don't think we're likely to get any pullback

that matters i think 5% would be a big surprise at this point the market not only has good momentum under it but at the same time we have another stimulus package that will be coming to the senate and to the house to get passed and the federal reserve is basically backed away from any of its hawkish talk over the last two weeks. that sounds like a good backdrop for risk assets. >> does more stimulus mean weaker dollar and therefore some of the trades that have been strong in the very short term like signals, commodities,bank doing well continuing? >> i think that the trend in the dollar is for more weakness. there are long cycles in currency and it seems like the dollar peaked out here for the time being but, you know, stimulus in and of itself should actually be good for the dollar.

it should help prop it up. at this point the dominating theme i think is monetary policy and the fact that the fed continues to provide so much money every month in asset purchases is probably the thing underpinning the weaker dollar >> as a growth outlook improves, scott, we are seeing interest rates move higher, these yields, the ten year above 1% just a little bit i don't want to make too much of it but something worth watching. what is the level if it keeps going higher that could have broader worries for the market 2% something below that >> well, sara, i don't really think we can get the ten year note much back above 1.5%. there is so much cash out there and at the same time the federal reserve doesn't want to run the

risk that it going to derail the stimulus out of housing. so then of course you get into the technicals of what is going to be going on here, you know, treasury bill issuance will be falling off. and so the federal reserve may in and of itself have to let its bill portfolio roll off and increase the size of its asset or bond purchases. i'm not so worried about long term rates our models show 1.5 should be sort of a terminal level and the risk is actually on balance at rates sometime of the year will go lower >> do you buy bitcoin or gold at this stage or both >> i came out on bloomberg and said a while ago i thought a fair value for bitcoin is around $400,000 that was when the bitcoin was at

20,000 when we have a doubling of a price of an asset in the course of a month, we're prone to having a setback here. for the time being we probably have been put in the top for bitcoin for the next year or so and we're likely to see a trace back twooward the 20,000 level >> you're not supposed to go on other networks to make big calls, scott punished for that but we'll forgive you. >> sorry about that. i forgot never mind >> what type of growth rate are we looking at for this year for 2021 let's assume we get the $1$ $1.9 trillion in stimulus. what does gdp look like? >> i just worked through this yesterday with my economic team. if you fed all the growth through in one quarter of the stimulus you'd be talking about

a 40% annualized gdp number in one quarter. of course we're not going to get that the reality is some of that money is going to get saved. some of it is going to get spread into the second quarter so -- but i, you know, wouldn't be surprised to see a growth number north of 8% for the calendar year. a lot could be front loaded. there's also been a lot of pent up savings and a lot of people who are getting stimulus checks don't really need it but yet they're saving the money for precautionary reasons. once we get to the second half of the year and the pandemic seems to be more under control, i think people will use it as an opportunity to spend on any number of things they deferred purchases on during the pandemic >> it's been a lost decade for many international industries. does that change over the next decade are you bullish on bearish

international equities ndices? >> i think so, wil i think that is the more interesting story. when i look at the u.s., tech has had such a great run value, small cap, energy looks a lot more interesting to me when you look overseas, these indices have lagged so much. once we put the pandemic behind us if my -- if i am correct that on balance we're seeing a weakening trend for the dollar, for u.s. investors, you know, foreign stocks, probably represent a much better value than a lot of large cap stocks in this country today. >> scott minerd, we'll leave it there. thank you very much. >> great, sara nice to be on. >> inauguration day, scott minerd from guggenheim up next mike santoli looks at what is happening fuel big market gains around the world. plus afl-cio president

esenbir trumka on whethe pridt den and congress will be able to reach a stimulus deal we'll be right back. 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.

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>> we're fixated on u.s. policy, change of leadership here. what it means for the economy and fiscal policy. well, this grab for risk we've seen the last couple months has been global and supports the idea it is a broader liquidity move, repricing of risk assets everywhere the s&p 500 has done fine over the last six months but if you see the emerging markets etf this is the equal weighted s&p essentially the median u.s. stock as well as emerging markets and the japanese stock market have all kind of taken on a very similar trajectory of especially over the last couple months what is the backdrop there very loose financial conditions. very visible in the high yield right now so essentially the effective yield of the high yield index is down at a record low, another record low about 4.25%. it doesn't really qualify as high yield anymore clearly, we had this massive scare, huge dislocation of the market feds said we'll be there corporate balance sheets held up better it is very difficult for the

overall equity market to get into deep trouble very soon unless this changes in a big way. this is happening even as treasury yields have inched higher, guys >> i'll watch. mike, thanks president joe biden comes into office with the support of richard trumka and he is calling on the president to put workers first. from safety and access to free covid vaccines to appointing an equity czar. richard trumka joins us now. great to see you on this historic day what would you like to see president biden do first >> you know, first, thanks for having me on there is hope in working people's hearts today because dignity and humanity and optimism and compassion have been restored in the white house. we needed a day like this but in the days to come we need much more as you mentioned we need a workers first agenda we need bold and decisive action to address the inequality of

income, inequality of opportunity, and inequality of power. we need democrats and republicans alike to work together to get the pandemic under control to keep workers safe and then get rid of our antiquated labor laws that prevent workers from getting fair wages and fair benefits and economic security. >> i wanted to ask about the minimum wage when it comes to leveling the playing field for workers and boost wages, something you mentioned. it is a pillar of president biden's economic stimulus package raising the minimum wage to $15 we already see what, almost 30 states have done that. how many workers would that actually benefit in terms of higher wages >> it would help millions of workers out there right now that are getting less first of all there is the timing of when the states get the $15, some states have stretched out over a lot of years but it would

still not affect the other ones. millions of workers would be benefited by that. the economy would be benefited by that because the workers would create demand and that demand would create jobs >> are you encouraged by a couple comments yesterday by treasury nominated secretary janet yellen that you don't think it would have a big impact on unemployment? i'm sorry. say that again. >> would a national minimum wage create unemployment? >> no. i think it would do exactly the opposite we've increased the minimum wage 30 some times and every time we do it somebody says it's going to create unemployment it really doesn't. workers get more money in their pockets. they spend the money they create demand and that demand will create jobs. that's how we spiral upward by increasing the buying power that workers have and increasing the minimum wage would do that >> so you're clearly in support of that one.

wanted to ask you about other early specific policy actions that president biden is taking, canceling the keystone xl pipeline reversing that decision and that construction. is that going to cost a lot of energy jobs? >> that's going to cost some jobs look, it is nothing that is a surprise he said he was going to do that last march or last may so we knew it was coming the timing sort of set us back a little bit that will do away with some jobs hopefully in place of that we'll put in a very big infrastructure bill, a trillion dollar infrastructure bill and make up for those jobs plus a lot more >> what are you looking out for in terms of policies with china specifically do you welcome the tone of the last administration toward china and would you like to see it continue >> i think the tariffs, the 232 tariffs should stay in place for

a while because china has cheated. they have created an over supply and dumped those things. until we get those under control i'd like to see them change. the last administration thought we could do that alone and we simply couldn't. it has to be a multi lateral approach we have to join with our allies in europe and asia and japan and australia and other places and all of us address the problem and say to china, look, you're going to play by the rules or we're not going to play with you you're not going to be able to dump your supplies because when it's only us they send the oversupply to somebody else and they send it into this country so they bypassed the tariffs i think keeping them and keeping them honest, getting them to look at currency manipulations they've done over the years and making them play by the rules is a policy we should address and adhere to and i think this administration will do that. >> richard, thank you for joining us great to see you.

>> thanks for having me on i really appreciate it. up next former white house obama senior adviser valerie jarrett on president biden's plan to rejoin the paris climate co a wldeah acrdndor hlt organization

stocks rallying on the first day of president biden's term. netflix shares staged a big rally after reporting earnings last night on this show. the streaming giant reported strong subscriber growth and

announced it will be cash flow positive after this year it ended up 17%. alibaba shares higher after founder jack ma made his first appearance in three months in a video speech during a charity event. ma had been critical of china's regulators and had not been seen in public since the company started a crackdown on some of his businesses the stock enjoying a 5.5% jump today >> yeah, few billion dollars in market cap added op be that appearance up next former white house senior adviser valerie jarrett on president biden's economic agenda and reversing many of president trump's executive actions. r? captain ahab to help you find a parking spot? thar she blows! whoops! loading zone. darn it. pull hard to starboard! too small! seriously? because it...ugh. oh! follow him! steady... steady... oh! thunderation! to the northern lot where there be parking spaces

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welcome back it is time for a cnbc news update with sue herera >> hello good to see you. here is what's happening at this hour everyone. the u.s. chamber of commerce a group representing many american businesses says it strongly supports president biden's plan to require masks and physical distancing in all federal buildings and on federal lands secretary of the army ryan mccarthy resigned shortly before president biden took office. mccarthy led the army through investigations into a murder and sexual assault at fort hood but also faced questions for the

national guard response to the riot on capitol hill china has sanctioned nearly 30 trump administration officials including secretary of state mike pompeo and economic adviser peter navarro. china accuses them of interfering in internal affairs and describes pompeo as a, quote, liar and laughing stock and clown, end quote and joe exotic the self-styled tiger king did not make former president trump's pardon list. his backers were so confident he would be pardoned that they hired a limo and a hair and wardrobe team to pick him up from prison. however, he is still behind bars you are up to date, sara back to you. >> all right disappointment for his fans i guess. up next, breaking down biden's policies former obama white house senior adviser valerie jarrett with her take on what is ahead for the biden administration and the new congress "closing bell" will be right back

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tone of cautious optimism on america's path forward during his inaugural address today. this as he inherits an economy ravaged by covid-19. biden intending to roll out at least two executive orders today focused on economic recovery will extend the federal eviction moratorium through march 31 and also extend the pause on student loans through september 31 congress also expected to vote in coming weeks on his $1.9 covid relief plan unveiled last week joining us now is valerie jarrett former senior adviser to president obama. great to have you on a day like today. welcome. >> thank you so much good afternoon what an incredible day it's been >> you are the perfect person to talk to. you have been there during the obama inaugurations, during the transition, helped lead that they have so much they want to do, the biden administration, immigration plan, infrastructure deal, a green new deal, stimulus plan how do you decide what takes

priority and what can realistically get done >> well, the good news is we now have a president and a vice president with experience managing and multi tasking president biden, such a pleasure to say that, obviously served for eight years as vice president. oversaw the recovery act when we had our last economic crisis back in 2008-2009. is used to managing multiple issues at one time and so i think what he's demonstrated is it is important for us to be able to move down parallel paths we have to get control of the covid-19 and the relief package he announced he is asking congress to pass has money in there to help with not only the production of vaccines, getting our supplies in shape, improving our schools, another trillion dollars to relief for families and unemployment as well as other relief for folks who are struggling then money for our communities including local, state, and

tribal governments and our businesses who are struggling. and so that has to be moved forward at the same time as we are trying to get our economy going again. he has said over and over again they won't really be able to get going until we control the virus which is why another executive order that he signed today leading by example is to say in all federal property he is going to mandate masks be worn we know the science proves it is effective. and we need to see more people doing it >> yeah, i'm not sure if people will actually listen but it is a different tactic from the administration he's also set this week to call on congress to take up a new immigration plan with some sweeping proposals including a path for citizenship this has been tried before we still have a very divided congress is this time going to be different in terms of being able to get it over the line? >> well, i sure hope so. the fact that things have been tried before is no reason not to

try them again if they are the right thing to do. this is definitely the right thing to do. by executive order he can give certainty to the dreamers who have been hanging their lives in balance for the last four years but he also believes we should have comprehensive immigration reform certainly the business community has been supportive of that. the advocacy groups have been supportive of that many in law enforcement have been supportive of that. we just need the will in congress to move forward now that the democrats do have a majority in both the house and senate, and president biden has made it very clear he intends to reach out to both sides of the aisle, as demonstrated this morning by inviting bipartisan group of legislators to worship with him and attend the ceremony and it was heartening to see so many who did show up even a few who were questioning the legitimacy of the election still showed up. so i do think and this addresses the issue of the masks as well, you need leadership at the top to set the right tone.

and people will follow a good example. he will be a consistent messenger, believing in science. you mentioned the importance of climate change rejoining the climate, paris accord, that will address climate in a global way not just one country but nearly 200 countries from around the world, putting john kerry in charge of that, first time ever to have someone who sits on the national security council as his stature focused on climate change. these are all ways in which president biden is going to tackle issues that are so important to the american people and, yes, he can do more than one thing at a time and he will challenge congress to do the same >> valerie, do stick with us we want to bring up the live pictures of what's going on at the moment i think we can see the vice president. entering the senate. let's listen in for a moment >> and a scertificate of appointment to fill the vacancy created by the resignation of former senator kamala d. harris

of california. [ laughter ] [ applause ] yeah, that was very weird. okay the certificates the chair is advised are in the form suggested by the senate. if there be no objection the reading of the certificates will be waived and they will be printed in full in the record. if the senators-elect and senator designate will now present themselves at the desk the chair will administer the oath of office >> ylan just talk us through the order of play here as we see the new senators sworn in. an amusing moment there as well given one of the seats being filled was formerly occupied by the new vice president >> reporter: that's right, wil we'll see more history and more firsts being made this afternoon as we see the senator who will

be replacing now vice president kamala harris alex padilla the first latino from california also seeing the two democratic senators from georgia sworn in as well, jon ossoff the youngest person to be sworn into the senate since joe biden himself the first person born in the 1980s to be sitting in the chamber. we'll also be seeing raphael warnock the first black senator from georgia so more momentous moments here as we take a look at the senate floor. this is going to be really important not just in obviously diversifying the democratic caucus in the senate but also tipping the majority, giving them that 50 vote threshold they need along with the vice president being able to cast a tie-breaking vote to be able to push forward joe biden's agenda in congress. whether and how often they'll have to use that tie-breaking vote remains to be seen.

biden has said he would like to achieve bipartisanship at least at the beginning, guff it the old college try if you will. but woel' have to see how many republicans are willing to answer his call for unity and for common ground in this moment it's possible we could see both in the senate as both in the senate as soon as tonight. senators have been alerted that they should stick around in case that does happen but certainly nothing confirmed just yet as we wait to see if any of biden's nominees will get a quick vote on the senate floor. guys >> it looks like three senators got sworn in all together there. signing oaths of office right now live on the senate floor just remind us now that it's completely split, the senate chamber, what that means that biden can do and what he can't do in terms of the rules and the technicalities >> so what is open to them is a process known as budget

reconciliation however, there are limitations to the kinds of bills they can pass they have to be revenue and spending measures. there are some strict regulations around what exactly that encompasses we heard already today from senator bernie sanders who said he's going to push very hard for the $15 an hour minimum wage if he can't get republicans to support it, he can put it in a budget reconciliation bill they'll be pushing the limits on what is usually included the other issue that they're going to be confronting immediately is how to constrict the chamber. there are the ground rules of play that republicans and democrats will have to agree on. they'll have to reach some kind of compromise and how quickly they're able to do that and what that sort of negotiation process looks like will set the tone for the type of working

relationships that senators have over the next two years across the aisle. >> thanks for that more historic being made there chuck schumer beginning some remarks. we're going to monitor those valley jarrett's with us valerie, i want to pivot back to the new president, a man you know very well you also have experience in taking up an important role on day one. i just wonder what you think is going through his mind riling now. what do you think -- what are the emotion he's experiencing this evening >> my guess is it's a range of emotion. this is a person who has run for president twice before and not been successful. then he became vice president and now at this important point in our nation's history, he's been given the confidence of the american people, so i know he must be proud, honored, humbled and ready to work.

and the good news is the team has been working now for several months, which has enabled him to hit the ground running i know that he will organize his government in a way that calls facts and science and delivers on the promises he made in the course of the campaign and stays true to public service, which is what has driven him for the better part of his entire life and what a perfect, perfect way for him to go into office with a partner who's breaking all kinds of glass ceilings, now vice president harris by his side who will be a very important part of the administration >> what about you valerie? a lot of familiar faces coming into the biden/harris administration is that something that you'd consider >> i have the most important office that there is, that you and i share, actually, and

that's the office of citizen i spent about half my career in public sector and about half in the private. i'm looking forward to helping the best i can from the outside. >> valerie jarrett, thank you for joining us on this momentous day. >> stay safe >> we appreciate it. still ahead, talk about an election cycle president biden could be stopped from bringing his peloton bike with him to the white house. the reason why and what peexrts have to say about it when closing bell comes right back get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

president biden moving into the white house today, but there have been some questions about his peloton and whether it should accompany him for the big move the potential problem. it's an intercept connected device with a microphone and camera that could be hacked. priced can likely keep his peloton but the secret service and the national security agency will likely modify the bike's technology i think the cyber security risk, guys, is obviously very valid, but the stupider controversy was over whether it was seen as a status symbol or something

i think "the new york times" didn't really go with his joe from scranton image which is absolutely ridiculous considering that our last president came from golden elevators. >> and what standards are we going to hold folks to he's been in political life for 50 years, it's not like he's necessarily been living a gilded life it is interesting, the fact that there is such attention to the information security here and i guess people don't think about peloton, when you're bringing that into home, you're potentially giving access to people who know how to do it the stock was up almost 4% today. >> the latest model has a moveable camera. it's a fixed camera there's only so much they can hack, i guess. >> you know far more than i. >> it's not mainstream peloton but they're less criticized than when they first came out

i was an early author. >> you have to do something when you can't to go gyms the image has been helped by we learned a lot of people are paying that -- >> exactly >> not in the $2,000 lump sum. >> listen, it costs less than a snow mobile, which -- regular people have out there. i'm not going to take credit for this observation people did appointment out when president obama came into office he fought to keep his blackberry, he was so attached the people were not happy about it the white house security said no they made it very limited. he only had certain people he could contact. that might be the smartphone world. because there's the stock. >> peloton becoming less elite was probably the way to frame

it should we say we're hearing the first three executive orders will be signed at around 5:15 p.m. mask mandate, paris climbed accord and racial equity "fast money" is next and for more coverage on this historic inauguration day there will be an extended version of the news with shepard smith after that there will be the inaugural special at 8:30 p.m. don't want to miss any of that we're out of time on "closing bell." "fast money" starts right now. >> this is "fast money." tonight's trader lineup. on fast, the biden bounce. stocks sore to record highs as joe biden takes office we are breaking out our presidential portfolio each trader has a new name they're betting on plus we're drillin