another weekend. >> apple is interesting. just want to say, it has been a pleasure to be with you on the "power lunch." thank you, morgan. >> the pleasure has been all mine thank you so much for getting dressed and wearing a suit jacket and a tie anyway that's going to do it for us >> see you later morgan. >> that does it for us, for "power lunch," thanks, guy, "closing bell" starts right now is this. >> welcome, everyone to "closing bell" on a friday. i'm sara eisen with wilfred frost. stocks mostly lower to close out the week, sharp moves under the surface. value underperforming, financials, energy and industries are all weaker. investors weighing the same issues that have been in focus all week vaccine rollout, stimulus negotiations corporate earnings the other driver coming in better than expected but with any weakness stocks are punished hard ibm and intel today getting dinged on the euphoria side,

game stop as they were just watching it was up as much as 70%. i think now only 40. the money pouring into spac continues, bitcoin green recovering some recent losses. 59 minutes left in the session we are also awaiting this hour president biden. he is set to sign two new executive orders related to the economy. we will bring it to you live on food stamps and stimulus checks. >> indeed, we will we are just lower as we stand on the s&p 500. we have got a big friday lineup coming your way. professor jeremy siegel is warning of a looming inflation whisk. but david rosenberg has a different take they will debate that with us coming up. plus, two of 2020's hottest trends are colliding today as used car seller car lots hits the public market for a spac we will speak with the ceo in just a bit and jashl association of manufacturers leader jay timmons has a message for president biden regarding the keystone xl

pipeline he will join us to deliver it. first the big stories. mike santoli is tracking the market action. kayla tausche has details on the president's upcoming executive orders on the economy. and better that coops has information on vaccines. mike, let's start with you markets essentially flat. >> churn underneath the surface netting out to not much action on an index wide basis today on a one year basis, look at the angle we came into 2020 on right there, we had a very strong fourth quarter we came in in this very kind of orderly uptrend. it is similar. if you were to extend that out you would have a basically parallel line. the mark has been bumping up against that and hugging it. if you wanted to draw this one here, it is a 3% range that's all we have been in for a while. so far even this pullback are a high we had a couple days ago didn't really change the

equation so far you have a lot of rotation happening under the surface. not much damage just yet to a market that still looks overbought out and overloved the global picture very long term wanted to highlight the all country world index. look how steep that recovery has been a lot of people are drawing a line, looks like that. tells you are you are approximating the longer term uptrends on sol of these thing it is a healthy picture but should surprise nobody if you get bits of pullback the bottom line, macro valuation wise look at free cash flow yields that the stock market is sporting when these are lower, free cash flow means how much cash flow kbided by the price of the stock. we are much more expensive than we used to be. 25 times lower for the nasdaq look at where carpet yields are. 2% real corporate yields if you account for inflation are close to zero. that's why people are able the

say you can still own stock at these levels even though we might get a correction or whatever else might happen, simply because you have the baseline profitability's going to be growing in the years to come >> that run-up of all country world index, pretty stark. i hadn't seen it drawn like that recently though one could say on a ten-year view the underperformance versus the u.s. is still significant >> absolutely. yeah, if you looked at it percentage-wise, it would look a little bit less dramatic, that real steep surge that we have seen in the last couple of months, but no doubt about it. it sill has a lot of room to make up relative to the u.s. which of course is part of the -- as well >> mike, thank you. president biden any minute now expected to sign new executive orders we've got a shot of the podium it's already up. so we are expecting this to happen soon. they are focused on the economic recovery kayla tausche joins us with some details about what we are about to see

kayla? >> sara, these two executive orders aim to expand existing programs for children, low income americans, and federal contractors specifically where the executive branch can these two executive orders do sort of a miss lany of things. they boost food assistance through the usda they boost snap allotments for some of those food stamp programs they let workers who are working in unsafe environments where they could be exposed to covid accept unemployment benefits or qualify for unemployment benefits if they do not -- >> i am going to account you off, kayla, we are going to go to the white house and president biden. >> -- job and economic crisis in modern history the crisis is only deepening it's not getting better. it's deepening yesterday we learned that 900,000 more americans filed for unemployment 900,000. they joined millions of americans who, through no faulter their own, have lost the

dignity and respect that comes with a job and a paycheck. so many of them never thought he would ever be out of work in the first place. just like my dad did when he used to lie awake at night when i was a kid staring at the ceiling, unable to sleep because he worried about whether or not he was about to lose his health care or whether we were going to be -- to have the money to pay mortgage because of the economic circumstance he was in and now a lot of these folks are facing eviction, are waiting hours and their cars, literally hours in their cars, waiting to be able to feed their children as they drive up to a food bank. this is the united states of america. and they are waiting to feed their kids folks who are able to still keep their jobs, many have seen their paychecks reduced and they are barely hanging on. and wondering what's next. sometimes the anxiety about what is going to happen next is more subsequently than what -- cons

consequenceal than what actually happened but this is today, in america. these are not the values of our nation we cannot, will not let people go hungry. we cannot let people be evicted because of nothing they did themselves we cannot watch people lose their jobs, and we have the act. we have to act now it's not just to meet the moral obligation to treat our fellow americans with the dignity and respect they deserve this is an economic imperative, a growing economic consensus that we must act desizively and beldly to grow the economy for all americans, not just for tomorrow, but in the future. there is a growing chorus of top economists that agree that in this moment of crisis with this -- when the interests rates are as low as they are, historic lows, it is smart fiscal investment, including deficit

spending, and there are more urgent than ever you know, and that return on these investments, in jobs, and racial equity, is going to prevent long-term economic damage and benefits that are going to far surpass their costs. if we don't act, the rest of the world is not standing still in terms of competitive advantage and competitive possibilities relative to us our debt situation will be less stable according to these economists and investment in our people is going to strengthen our economic competitive as a nation and help us outcompete our competitors in the global economy, because we are going to grow the economy with these investments. wall the covid-19 package that passed in december was a first step, as i said at the time, it's just a down payment we need more action. and we need to move fast last week, i laid out a two-step plan of rescue and recovery to get through the crisis and to a better and stronger and more

secure america the first step of our american rescue plan is a plan to tackle the pandemic and get direct financial relief to americans who need it the most you know, in just a few days -- it has just been a few days since i outlined this plan it has received bipartisan support from the majority of american mayors and governors. businesses and labor organizations have together welcomed it as an urge ebt action that's needed even wall street firms have underscored its important. in fact, an analysis by moody's estimates that if we pass our american rescue plan, the economy would create 7.5 million jobs just in this year alone that would be on the way to the more than 18 million -- i think it was 18,600,000 jobs they believed would be created over the four-year period with our build back better recovery plan.

with our american rescue plan the economy would return to full employment a full year faster than without the plan. even president trump's now -- not some liberal organization -- president trump's top former economic adviser, kevin hassett, said, quote, he absolutely is in favor of this rescue plan. this almost doesn't have a partisan piece to it we are seeing the support because this plan takes a step that we so urgently need, more than just a step, a number of steps. it funds big parts of the covid-19 national strategy that i released yesterday -- that we released yesterday our national strategy puts us on a war footing to aggressively speed up our covid-19 response, especially on vaccines and testing, and reopening our schools. i found it fascinating yesterday the press asked the question, is 100 million enough? week before they were saying biden, are you crazy

you can't do 100 million in 100 days well, we are going to god willing not only do 1-million, we are going to do more than that but this is -- we have to do this we have to move. the american rescue plan also includes economic relief for most americans who are in need we are going to finish the job of getting a total of $2,000 in direct payments to folks $600, which was already passed, is simply not enough if you still have to choose between paying your rent, putting food on the table. we will extend unemployment insurance benefits for millions of workers beyond the deadline that's now set i means that 16 million americans who are currently relying on unemployment benefits while they look for work can count on these checks continuing to be there in middle this crisis the american rescue plan also addresses the growing housing crisis in america. approximately 14 million americans, 14 million, have fallen behind on rent, and many

r risk eviction if we fail to act there will be a wave of evicks and foreclosures in the coming months because there is nothing we can do to change the trajectory of the pandemic in the next several months. look, this would overwhelm emergency shelters, increase covid-19 infections as people have nowhere to go and can't socially distance. the american rescue plan asks congress to provide rental assistance for millions of hard-hit families and tenants. this will also be a bridge to economic recovery for countless. mo and pop landlords who can't afford not to have the rent. but they can't wait. so on inauguration day, i directed my administration to extend nationwide restrictions on evictions and foreclosures. those crises are straining the budgets of states, and cities, and tribal communities that are

forced to consider layoffs and service reductions among essential workers -- police officers, firefighters, first responders, nurses they are all at the risk of losing their jobs. over the last year, more than 600,000 educators have lost their jobs in cities and towns the american rescue plan would provide emergency funding to keep these essential workers on the job and maintain essential services look, it will also help small businesses that are the engines of our economic growth when you say small business, most people think the major corporate entities are the ones that hire everybody. these small businesses are the glue -- and they are important, but these small businesses that hold the community -- they are the glue that hold these communities together they are hurting badly and they account for nearly half of the entire u.s. work force. nearly half. our rescue plan will provide

flexible grants to help the hardest hit small businesses survive the pandemic and low cost capital to help entrepreneurs of all backgrounds create and maintain jobs, plus provide essential goods and services that communities so desperately depend on. look, our recovery plan also calls for an increase in the minimum wage at at least $15 an hour. no one in america should work 40 hours a week making below the poverty line $15 gets people above the poverty line we have so many millions of people working 40 hours a week, working, and some with two jobs, and they are still below the poverty line our plan includes access to affordable child care. that's going to enable parents, particularly women, to get back to work. millions are not working now because they don't have that care all told, the american rescue plan would lift 12 million americans out of poverty and cut

child poverty in half. that's 5 million children lifted out of poverty our plan would reduce poverty in the black community by one third, it would reduce poverty in the hispanic fortunate by almost 40% i look forward to working with members of congress of both parties to move quickly to get this american rescue plan to the american people. and then we can move with equal urgency and bipartisan to the second step of our economic plan, the build back better, the recovery plan. it's a plan that's going to make historic investments in infrastructure, manufacturing, innovation, research and development, and clean energy, and so much more it is going to create millions more jobs, good-paying jobs, not minimum wage jobs. while we work with members of both parties in the congress, there are steps that we can and must take right now. for example, on inauguration day

i directed my administration to pause student loan repayments for interest -- the interest payments for americans with federal student loans until at least september. so they are not going to have to pay until september. they still pay the bill as it stands now, but it will not accrue interest, and they don't have to pay, begin to pay until september. and we may have to look beyond that, i might add. today i am signing an executive order that directs the whole of government, the whole of government effort to help millions of who are badly hurting. it requires all federal agencies to do what they can do to provide relief to families, small business, and communities. in the days ahead, i expect agencies to act. let me touch on two ways these actions can help change americans' lives we need to tackle the growing hunger crisis in america one in seven households in america -- one in seven.

more than one in five black and latino households in america report they do not have enough food to eat. that includes nearly 30 million adults and as many as 12 million children again, they are in this situation through no fault of their own. it's unconscionable. the american rescue plan provides emergency food and nutritional assistance for tens of millions of children and families to address this crisis. but families literally can't wait another day as a result of the executive order i am going to shortly sign, the department of agriculture will consider taking immediate steps to make it easier for the hardest hit families to enroll and claim more generous benefits in the critical food and nutrition assistance area. this can help tens of millions of families, especially those who can't provide meals for their kids, who are learning remotely at home, are not receiving their regular meal plans that they have at schools

for breakfast or lunch it's going to also -- we also need to protect the health and safety of the american worker. right now, approximately 40% of households in america have at least one member with a preexisting condition. just imagine you are out of work through no fault of your own. you file for unemployment while you are looking for a job. you find one and you get an offer but then you find out there's a high risk of your getting infected with covid-19 because of your condition and you and your loved ones have an ever even greater iske are of death and serious illness because of the preexisting conditions so you turn it down right now, if you did that, you could be denied unemployment insurance because you were offered a job and you didn't take it it's wrong no one should have to choose between their livelihoods and their own health or the health of their loved ones in the middle of a deadly pandemic.

because of the executive order i am about to sign, i expect the department of labor to guarantee the right to refuse employment that will jeopardize your health and if you do so, you will still be able to qualify for insurance. that's a judgment the labor department will make look, they are just two consequential ways that the action i am taking today will help people in need. another way to help approximately 2 million veterans maintain their financial footing, by pausing federal collections on overpayments and debts. another, make sure that federal contractors are receiving taxpayers dollars provide their workers with the pay and benefits they deserve. these are places where federal tax dollars are administered, are being made available to build things from ships to staircases and we let out the federal

government lets the contract and we are going to make sure that they buy american and are made in america. here's another right now, there are up to 8 million people that are eligible for direct payments from the c.a.r.e.s. act and the relief bill passed in december. they are entitled to those payments, but there is not an easy way for those folks to access them. so we are making it a priority today to fix that problem and get them the relief they are entitled to. look, i am going to close and summarize this way a lot of america is hurting. the virus is surging we are 400,000 dead, expected to reach well over 600,000. families are going hungry. people are at risk of being evicted. job losses are mounting again. we need act. no matter how you look at it, we need to act. if -- if we act now, our economy will be stronger in both the

short and long run that's what economists left, right, and center are telling us both liberal and conservative. we will be better and stronger across the board if we fact n-- if we act now we will be better able to compete with world if we act now we will be able to meet our moral obligations to people and others. i don't think the people of this country want to watch their friends and neighbors go hungry, lose their homes, lose their sense of dignity and respect i don't believe that, especially in the middle of a pandemic that has weakened and reeked so much havoc and caused so much pain on america. that's not who we are. the bottom line is this. we are in a national emergency we need to act like we are in a national emergency so we've got to move, with everything we've got and we have got to do together

i don't believe democrats or republicans are going hungry and losing jobs. i believe americans are going hungry and losing their jobs and we have the tools to fix it. we have the tools to get through this we have the tools to get this virus under control, and our economy back on track. and we have the tools to help people so let's use the tools all of them. use them now i am going to sign this executive order. let me conclude, again, by saying, folks, this is one of the cases where business, labor, wall street, main street, liberal, conservative, economists know we have to act now. not only to help people who are in need now, but to allow us to be in a competitive position worldwide and be the leader of the world economy in the next year and two and three and going forward. thank you. i'm going to sign this executive order.

>> president biden there just about to start signing a number of executive orders. he said we have got to act now quite a few times. why? because he said the crisis is deepening and america has the tools to act to prevent families going hungry, to prevent america hurting and saying quite clearly there, kayla tausche, interest rates are at historic lows, smart fiscal investment to spend, including deficit spending, to his point that america has the tools to act, these executive orders are a step they are a small step, though, relative, of course to the congressional approval that he is seeking at the same time for his $1.9 trillion stimulus bill. >> wilf, that argument for deficit spending with interest rates at the lows that they are is an argument that he made when he first rolled out the american rescue plan.

it is an argument that his economic adviser continued to tout today and an argument that janet janet yellen has said multiple times including on capitol hill just this week. it is full-court press not only to exercise the limited tools that the executive branch of government has to expand some of these programs around the emgs but calling on congress whole heartedly saying this is no replacement for comprehensive legislation and really issuing a call to action on capitol hill just ahead of a credit critical call that is going to be taking place on sunday. >> yeah at 3:00 p.m. between brian deese the corrector of the national economic council and a group of 16 senators that's clearly the next item that's circled on the calendar the administration made it clear this is not a final piece of legislation but also made it clear through this series of executive orders that it's going to keep wielding the power of the pen where president biden can. >> kayla tausche, thank you.

earlier today, uk prime minister boris johnson announcing some sobering news saying that new variant of covid-19 traced from the uk is not only spreading more quickly, but also may be more deadly. joining us now is former fda commissioner dr. scott gottlieb. he is a cnbc contribute and sits on the boards of pfizer and illumina dr. gottlieb, good to have you the me, that warning from boris johnson is only just a reason to speed up the vaccine distribution and administration even faster. is that happening? is there anything that president biden has done as far as executive orders and changes he has made that will speed it up even more so than under the trump administration >> yeah, i think right now the issue is going to become the supply i mean the issue to date be that distribution and having enough sites set up that people can access the vaccine and making sure those sites are set up in places where the people we want to reach are located so making

sure that we distribute them evenly around the country, get into urban environments, places where you have issues with a lack of access to health care generally. but as we set up more sites -- and that's been happening -- we are going to run into problems with supply. supply is going to become the issue. the one thank that the biden administration has done that could extend production in the near term is try get more needles so we can make sure the vials with extra doses in them you can withdraw the dose more carefully and presever those extra doses. the other thing that could happen is an inflection point that johnson & johnson's vaccine gets authorized. we will have data on that by the end of this month the company indicated. that could be filed next month and could be authorized quickly based on the enter rim data. if that vaccine comes on the market johnons & johnson said

they would have a significant supply by april. that could create an infleck point in terms of expanding access to the vaccination. >> we can only hope we get that inflection point are you worried the case count has seemingly plateaued in recently days or weeks >> i think we are going to see continued declines in cases around the country, declines in hospitalizations and we are going to start to see declines in deaths as well. we are probably seeing that right now. i think the risk is that in place where is this variant is has a higher prevalence right now, particularly san diego and parts of florida and miami we could see regionalized epidemics. if you look at the statistics from southern california and florida you are not seeing the same level of declines in cases as you are seeing in other parts of the country you need to sosome some sort of

a plateau or regionalized epidemic i think there is a risk we will see regionalized epidemics in the spring and summer in parts of the country where the variants get a foot hold i don't think we are going to see a confluent epidemic because of these new variants. that's a risk to the next fall and winter that the variants gain a confused hollywood around the entire country but there could be regions right now they are 1 to 2% of infections in southern california and miami if they are doubling over week in six weeks you could have 30% of infections comprised of b-117 or maybe even more in parts of the country like boston and new york and philadelphia even if they are doubling every week, it might be too little too late in terms of you get the seasonal effects of spring and summer which is going to be a back stop against spread and you also get rising vaccination rates. hopefully that's enough to create a back stop against these

variants from getting a foot hollywood in places where they are currently not prevalent. >> we have seen data that the vaccine protects against the new variants though dr. fauci did say the south african strain weakened the effectiveness of the vaccine. if for some reason we get a new mutation and i understand these viruses do appear to be mutating a lot, that does not work with the vaccine we are told by experts like yourself and fauci that go back to the lab and redo the vaccine. what's the process how long does that take? do you you have to have new clinical trials? how fast can that come on line. >> it is unlikely you would get a new variant emerge that would completely defeat the vaccine. it could defeat the antibody drugs. the south african strain seems to do that you would get reduced effectiveness. that would be the risk it could be substantially reduced. you can reengineer these

vaccines fairly quickly. i am on the board of pfizer, who is developing one of the vaccines the mrna vaccines the virtual of that fully synthetic process of developing the vaccines is base on the sequence changing you could reengineer that vaccine in a matter of weeks. the challenge is whether or not you need to put it through a full clinical development program. fda needs to implement a process where you can get approval on the basis of experimental evident and small compliments of clinical data. that's effectively what we do with the flu vaccine each year we don't test that on people each year because we have so much experience correlating the antibody vaccines with their efficacy we may need to get a similar approval for these vaccines. it is possible we may want to create a booster to give everyone a booster in the fall that's something scientists need

to look at if the variants get a foot hollywood here in the united states and there is a demonstration there is reduced effectiveness of the vaccines. right now we don't know. >> dr. gottlieb good to see you. thank you for joining us. >> thanks. coming up the inflation conversation jeremy siegel and david rosenberg have different opinions on the inflation outlook in, he ma. they will join us for a debate next. heading to the break here a check on bond yields ten-year at 1.09 we'll be right back.

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welcome back we have got the feds showing no signs changing its easy money policy any time town with the chair saying they plan to continue buying bonds and keep rates low. jeremy siegel warning in a new op ed that higher inflation is coming because of the response to the pandemic and bond holders will be the ones who get hearse most he joins us now for a debate along with david rosenberg who takes the opposite side of the argument

good afternoon to you both professor siegel the description we gave of our op ed slight low underwell. ed paired to what you just wrote, it is inevitable that bond rates will rise and rise more than envisioned by the feds and forecasters. explain to us why you think that is the case, professor,sy siegel and why it is different than last time out when of course great amounts of stimulus after the crisis didn't lead to inflation and rate ryes. >> the big difference is that what we see now is the fed expansion and the c.a.r.e.s. act has actually put money into bank accounts, checking accounts, savings accounts, payroll accounts, for greater than anything we did during the financial crisis in fact, if you look at the m 2 the broadest money supply, the increase in 2020 -- this is quite startling, is greater than

any single year in the last 150 years. we have data going back to 1870. 25% increase we have never had that as a one-year increase. and when we have never had a deviation -- normally, this money takes anywhere -- six, 12, maybe 18 months to really push into the economy and i think the rising inflation that we are going to see as the economy opens up this year is going to cause bond holders to say, hey, you know, i am not going to accept 1% anymore in my bond if my dollars are going to be depreciating in front of my eyes they are going the demand higher yields that is why i am a big bear on treasury bonds david, why do you disagree >> well, look, there is no question that we have had gargantuan monetary and fiscal stimulus

i would argue that without it we would be in a even bigger overall deflationary environment than we are in right now i really just think that the central bank is moving aggressively to prevent a horrible outcome i don't think that there will be inflation coming out of it i think there might be less deflation. you can't just forecast inflation with the fun supply. you have to take a look at the velocity of money. and the reality is that the velocity of money is declining one for one with the run-up of the money supply and that's why you have had a situation where this time last year inflation was running above 2% right now, inflation -- measured inflation is running little more than 1%. the bottom line is this, you have to have a supply and demand framework. it is not as if we are seeing this huge stimulus at a time of full employment. full employment is way out there in the future. we have an outlook app in the u.s. economy -- we are talking about the overall level of

relative capacity relative to gdp. the level is as acute now as it was in the fourth quarter of 2008 ultimately we got inflation five or six years later that's how long of the might take this time around. but we are climbing out a big hole right now this is not about promoting inflation despite what the so-called experts are saying it is about avoiding a japanese style outcome. >> jeremy, i would love for you to respond to that also my biggest thing with people like you who say there is inflation is parts of the economy are recovering at such different speeds sure, they may be in grocery prices because everyone continues to buy groceries look at real estate. manhattan real estate, there is no inflation there how can you say as an economy as a whole we are facing real inflation? >> manhattan real estate isn't doing well but i think real estate everywhere else is doing he can trmly well and we had year over year increases in home prices nationwide that i think

was the highest since 2006 it first goes into asset prices. but remember, people say the money going to asset prices but that doesn't make the money disappear. for every buyer there is a seller someone selling the stock at a higher price is getting that cash we here -- if you look at the statistics, even frommette chief executives the big banks, they say we are looking at people's savings accounts and checking accounts and we have never seen a build up in cash balances the way we do now. now, think about as the vaccine rolls out, as people gain confidence in that that money is there to spend furthermore, i think we are going to have a lot more pressure on the dollar, which of course impact one to one all the imports that we are going to get in terms of what their price is going to be. i am not predicting hyper inflation. i am not even predicting inflation like we had in 1970s but i think we are going to be

running 3%, 4%, 5%, and i think bond holders are going to be demanding much, much bigger yields to hold fixed income assets when we have that sort of inflation. >> david, i will turn to you with the final word. and keeping in mind that thing are very different this time and that a good chunk of the economy did not go through the depression that you are describing a ton of stimulus has been thrown at it, and there are expectations for growth of 5% to 6% this year even without getting another $1 trillion to $2 trillion of stimulus. >> hold on i never said it was the great depression but we have 16 million people to this day, even with all the monetary and fiscal stimulus, 60 million americans today aran on some sort of jobless benefit it is not the great fregs can. home prices don't go into the

cpi. residential represents do. in terms of hope ownership the multifamily sector is hurting bad. rents are 40% of the core cpi. vacancy rates in the multifamily sector are going up. that process isn't finished that means rental deflation is going to overwhelm fig you are seeing on the commodity said. the situation is everybody focuses on the dollar on the crb index because it is right in front of them second by second on their bloomberg screen. they don't see what is happening with residential rents they are disinflating. that's an impact on the core cpi. we have a situation warehouse holds are deleveraging all this cash and all the savings that the household sector has they are paying down debt we are seeing households paying down credit card debt at a bigger rate. households are deleveraging. we just came off three months of

r negative retail sales. who was calling for that nobody we have a total low different consumer picture here. the new york fed has given it to us on a platter. they said that 3/4 of these stimulus checks are going towards debt paydown and savings. so if you don't get the demand, and we are not -- we are getting what is called recurity and equivalence, we are not getting big demand out of this so-called stimulus it is really just relief to provide for social stability this is not stimulus in a classic sense that's going to cause inflation. we are seeing a much different state of affairs in the consumer sector when coming out of the pandemic, the saving rate is going to stay elevated for a lot longer and that's going to ultimately constrain aggregate demand and reduce framework for disinflation and not inflation. >> gents n one word each because we are up against the clock. david first, then jeremy based on those views what do you

buy? david? >> i think the growth stocks are hugely overvalued but remember if we are going back to -- >> one word. >> i would say long duration assets would be a good place to be, including 30-year treasuries. >> jeremy? >> i think the reopening we are going to see definitely argues for value stocks i think clig connected to commodities including land is going to be a real good buy. >> gents thank you very much appreciate night thank you >> thank you. when we come back, last chance trade is back stephanie link buying one of this week's big laggards in fact, the hint is it is one of today's big laggards. we'll be right back. thank you, sir. looking for $6. $6 over there! do i hear 7? $7 in the front! $7 going once. going twice. sold to the onion lover in the front row! next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowed-out loaf of sourdough bread.

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we are bringing back last chance trade stephanie link back with us. steph, you have got a big call to make on a stock that is down 10%. ibm, off of earnings last night. you are to the worried about the declining software revenue >> no. i mean, i think a lot of bad news is priced in. first and foremost, we are in very early innings of a transition away from legacy businesses towards faster growing segments, meaning cloud,

a.i., blockchain, data analytic. he have this a new ceo who is an expert at all this of those thing. he was instrumental in the acquisition of red hat and he is putting executives around him that buy into this strategy. the exceo of red hat is the president of the entire company at ibm back in october they announced the spinout of the managed infrastructure services division that's going the happen laid they are year. what does that mean? you have a simpler company, a faster growing company, and over time, i think that's a higher multiple company so you have got give them time the quarter is backward looking. and i was very encouraged about gross margin expansion, and the 11 to $12 billion in free cash flow they announced. for the year so i think at 11 times earnings with a 5/7 yield i think it is attractive here. >> there we go stephanie link last chance trade. two days in a row, what a treat. up next, game stop goes ldwi and a blue chip falls deep into the red.

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and interactive charts to give you an edge, 24/7 support when you need it the most and $0 commissions for online u.s. listed stocks. don't get mad. get e*trade and start trading today. >> announcer: the "market zone" ü is sponsored by etrade. trade commission free today with no account minimums. welcome back mine minutes left in the trading day. we are now in "closing bell" "market zone. commercial-free coverage of all the action going into the close. cnbc markets commentator mike -- mike santoli here to break down these crucial moments of the trading day. jeff golub with us as well well off the lows of the session at 3,849 on the s&p. you have recently changed your year-end target, jonathan; is that right what is it to? why? >> we moved to a 4,200 target

which represents about 14% returns for this full year and the story here is really simple the economic reopening -- and i know that there are problems right now with the virus and the vaccine -- but this economic reopening, once it occurs towards the middle of the year, it's going to be much more powerful than anyone thinks, which is why we moved up our numbers. >> let's hit intel shares are plunging today. josh lipton has the details. what happened here, josh >> so, sara, intel is on track here for its worst day since october. it's now trading about 20 off its most rene high the new ceo on the conference call saying he is going to keep most chip production in-house. we know the challenge for intel, of course, manufacturing issues, it now lags tsmc which remember makes chips for rivals like amd. in the enmootime as intel plays catch up here, investors wonder does it keep losing share to

that company on the other hand patrick more headquarters sees reasons for optimism guys, back to you. >> josh, thank you very much mike, intel had the momentum going into the quarter even during the prerelease, the stock initially went up on those numbers, the sales >> yeah, i --? what's the read now? >> i think you got a little bit of confused algorithms there when it did hit, and the quarter itself was leifly better than expected i do think the idea of not making a really bold comprehensive outsourcing plan is probably muddling the picture. the stock is back to trading where it did about ten days ago. it is going to remain very much of a show-me situation just pause when you get old tech, the stocks looked very cheap for a long period of time, but without

top line growth and a path to it it is tough to get investors excited. right now it is growth over real earnings what intel has is real earnings and cash flow overgrowth the market doesn't want that right now. >> a 2.47% dividend. do you think they can do well in the year ahead. >> i think semiconductors will have a great year this year compared the other tech companies because they are more levered to a reopening economy and you heard comment from for example -- i know it may not be a specific intel issue that they are having a hard time getting the chips they need as demand is strong for cars and other type kind of things that use all this semiconductor equipment. yeah, i think there is no reason why we can't see upside in these types of names >> game stop shares soaring as the stock continues a red hot start to the year.

let's get back to josh with the latest on this extraordinary short-term move. >> wilf, game stop is going through the roof let's pull up a chart on this one and talk about this name it was up nearly 80% at one point. that is just today it is now at more than 200% this year and get this -- 2,200% since its lows last april. maybe no surprise. this is the single most shorted name in the u.s. stock market. one winner though, ryan cohen, a young guy who cofounded chewy in 2011 when he was 25 years old. fast forward, six years later he sells it to pet smart for more than $3 billion 678 now he joined the game stop board his firm, rc ventures owns a 13% stake in gme when they purchased 9 million shares last year that stake was worth about 76 million. at the highs today, worth a whopping $705 million. back to you all. >> awesome, josh, thanks for that

mike, clearly percentage moves like that are just astounding. initially when this stock started to take off again if it was short covering it doesn't necessarily point to market frothiness has it gone beyond that point? is this a sign of exuberance in the market now >> it is a sign of that. it is essentially an orchestrated raid. people buying the options and forcing in a short-term way the dealers to keep the stock going up it is a mecke thickcal bull raid what happened is it is dislocated from anything going on in the company. there is good atmospherics, a new president on the board but this is much more about silliness and heavy will he shorted. you are seeing it in others as well --

>> wholesale increasing -- home sales increasing last month. >> the gain was the full year tally. 5.64 million home sales in 2020, the most since 2006, before the housing crash and the great recession. the only downside, a record high median price in december just over $300,000, and a record low 1.9-mont supply. 22% fewer homes for sale than a year ago that is great news for the builders except they are having trouble keeping up with demand we will hear the latest earnings from d.r. horton next week, that's the nation's largest home builder. >> the stock is working today. thank you diana olick. jonathan, is this an area where you continue to bet on, the housing stocks, builders, home depot, anything tied to the recover ree we have seen >> those are two different questions. i think that some of the home improvement names that have done so incredibly well as we were stuck in our homes are probably not the best place to play the recovery but we do think, you know,

cyclical stocks generally speaking are going to do well. that could be an auto company. that could be a manufacturing company a mining name. homes are a little bit of a different story with low interest rates and other issues driving those kinds of names >> we have just two minutes left in the session mike santoli joins us with the s&p down a tenth of a percent. >> improved throughout the day had a mini shakeout at the open. 3/2, highs swamping new lows that has been a consistent story. this week it has been more mixed after wednesday. look at the equal weighted version of the russel 1,000. top 1,000 stocks weighted equally n. white they had been outperforming the big cap indexes. this week they have taken a back seat to the market weighted s&p 500.

big growth stocks carried the market to this 2% gain so far this week. the volatility index, we talk about how sticky it has been in the low 20s, remains there basically not nothing much of anything a long period of time of flatlining since november. you would think it would give way more since the mark has been going slowly to new highs. still hedgeiness and nuttiness, which keep the vix higher than it would be. >> nuttiness all around. as we head into the close, just about a minute left. look at where we stand on the major afternoons dow is down about 139 points right now. we have been lower all day long. as you can see and there are a lot of individual stock stories home depot for instance is the best performer right now in the dow. better housing number. ibm and intel are the biggest weights. they are both down 9% plus the s&p 500. what is working today. defe defensive, real estate and util utilities. communication services also higher everybody else is lower.

nasdaq is higher, as mike said we have seen tech outperforming as theme all week long we continued to so that today as far as what is driving the nasdaq today we have got a mixed workday in sight. apple is higher. that certainly helps there goes the bell. shawl caps and tech nasdaq end higher on the day. the rest lower, but still up overall on the week for a friday, wilfred. >> indeed. enough for a record high for the nasdaq, albeit only just of course, anything positive there was a record welcome to "closing bell." i'm wilfred frost along with sara eisen and mike santoli. cnbc senior markets commentator. the s&p closed down .3%. well off its lows of the day the dow was down 179 points. the low was down 370 that was down .6%. the nasdaq eking out a slight gain and a record close by doing so a. nice bounce for the russel today, up 1.3% having slid in

recent sessions. real estate the best performing sector, coming up, the ceo of the national association of manufacturers on the poe attention fallout of president biden's decision to cancel the keystone xl pipeline jonathan gol up and christina fernandez joins the conversation mike, i come to you first. in what has been a pretty positive week overall, up 2% of course on the s&p 500, slight profit taking today, and bit of a push and pull between the classic big tech nays and the recent outperformers of the likes of the banks and energy. >> the benign way of looking at that is that some of the cyclical areas that had a great run for a couple of months have been able the pull back, able to cool off whereas the overall index stayed supported because money slides back into the big growth stocks that had done nothing for a couple of months that choreography can continue

that way there have been years where that happened we closed today this the s&p 3,841, less than half a percent above the top of the range it had been in before that. even though we got a 2% move on the week it is not escape velocity but without a doubt, keeping the general trend intact. >> jonathan, we are heading into the busiest week of earnings season so far, thing have overall been better in terms of beats, though we had doozies today with intel and ibm. how is the market treating -- punishing the loosers certainly, but are the beats good enough to sustain the positive momentum we have seen? >> sara, this isn't a good earnings season. it is obscene. the average beat so far is 23% in a typical earnings season a company is going to beat by 4% and you look at -- you know, so far it is very heavy in financials the financials are beating by

30%. and the non-testimonies are beating by 15. so it's like you can't even find the -- you can find an individual security that's not, you know, delivering, you know, huge numbers, but this is huge what we are not seeing, though, and this is a trend that's been going on for a while, the market is not really rewarding those that are putting up massive numbers. the banks surprisingly sold off on these unbelievable earnings numbers. and you know, i don't know how long that can continue to happen where you have massive beats and the market is not giving you credit before the market is forced higher on this. >> victoria, what's your take as to the factors that might derail the market in the short-term, including the latest numbers from covid cases and deaths? or are we now beyond that and looking at when the economy reopens? >> you know, wilf, i am not sure we are beyond that at all. the market obviously had baked in quite a bit of optimism in regards to vaccine rollouts, the

reopening trade and a larger stimulus package i think part of what we have seen this week is a little bit of consolidation we saw it in the treasury market, where ten-year yields had gotten into that consolidation pattern arc flag pattern, if you will, for the technicals with a a breakout possibly to the upside but i think it is going to be a good thing for the equity markets to do the same and have that consolidation, a little bit of a pause, because there is some uncertainty now are we going to get a $1.9 trillion stimulus package in probably not we already have some senators coming out and saying they are not going to be able to go along with that. we have got news from boris johnson today that the new strain in the uk is more deadly. we have more concern coming over reopening. are we going to get more lockdowns? i think there is concern there for us that means the equity markets are ripe for a little bit of pullback, a little bit of consolidation. i think that's why you are seeing this rotation from some of the value cyclical names we

saw doing so well back to the growth side this week. >> is that what you would be -- is that what you are doing as well, you go to growth names for defense? >> you know, sara, we have been tilted a little bit more towards growth even though we do have a barbell strategy as we talked about, we think clients need to have exposure to both i was on a zoom call with about 40 clients this week one of the things they asked is do we make that shift? i said, no, you have got to have both in your portfolio have exposure to both sides. but we think the longer term trends come with some of those gross games, in the 5g sector, broadband, data infrastructure those are areas we still like. we don't have to make a shift and try to chase the market at this point in time we are going to main tan our overweight to growth but still have some of the cyclical names there. >> jonathan, going back to your point about how the banks have performed following very strong earnings reports, does that not worry you it's buy the rumor

sell the fact type moment and all the good news is priced in >> first of all, they had done pretty well going into some of this but you know, all the trends that we are seeing that showed up in these earnings are going to happen not only this quarter but over the next couple of quarters they are going be releasing more reserves which means they are going to be delivering really got eps. they are buying back shares. low losses are coming in relatively low, which means peep are paying their loans m&a activity, fantastic. it is really hard to see an environment that doesn't look -- that looks any better than this for banks. so if we end up with earnings that are this good and banks are looking at results super cheap, you know, p is not going up and e is going through the roof, these things -- someone is going to come along and get the world's greatest bargain in these -- in banks. so i am not concerned, you know w this story i think in fact it kind of sets

us up for more upside. and this is my number one, you know pick, which is banks and financials i kind of disagree a little bit with the comments made before that, you know, there is bad news and this is a little bit of balance. i mean, the news flow almost couldn't be better if you look at earnings season, the stimulus that's coming yes, the near term is a bit weaker on stuff related to the virus, but the market is already looking out towards may and june and the summer when the reopening is going to be on fire and not what happens in the next six weeks. >> good debate there let's hit washington today president biden did sign some executive orders just in the last hour. kayla tausche with the details >> it is the latest in a series of kput executive actions the new white house has taken just this week. let's run through what the two executive orders signed this afternoon aim to do. first there is going to be an

expansion of food assistance programs, a 15% boost for food benefits for school aged children you will also see an expansion offist anding usda confused programs there is also an expanded qualification for who can get unemployment insurance this executive order would let people who don't want to go back to work because they are scared of covid exposure qualify for that as well it also tries to clear a path to those low income americans who don't file taxes, 8 million of them who have yet to receive their stimulus checks from last year it also erects a move toward a $15 mandatory minimum wage for contractors doing business with the federal government now the total dollar amount of today's orders is unclear. during the transition agency review teams did a top to down

study of all the existing programs that could be expand asked trump era policies that could be overturned. they made their recommendations to the transition. they were submitted to the d.o.j.'s office of legal counsel. so far this week, 27 executive actions in all and president biden said there is more to come. >> we have the tools to get through this we have the tools to get this virus under control and our economy back on track. and we have the tools to help people so let's use the tools >> of course, the tools for the executive branch is a stand alone for increasing dollar amounts is relatively limited. hence the coordinated plea for urgency on capitol hill from biden and his economic team, that they still need comprehensive legislation as well >> kayla tausche, thank you. on that note, mike, doesn't seem like the market moved necessary low on these executive orders as kayla mentioned. the real action here is the

legislation. and that $1.9 trillion in terms of stimulus. what has the market baked in as far as expectations at this point. >> it seems a general expectation that there will be more, perhaps not the full $1.9 trillion but there will be more in the form of direct support payments to households and businesses what is really interesting as the debate starts the coalesce, some say it is not targeted enough or that the size is bigger than needed if you pull apart on how wall street has been reacting on how this year is going to go, you would get the impression that wall street is saying it not need but it is nice to have because you have pent up savings and you have other things going in the right direction obviously too many unemployed. but in terms of the aggregate number wall street is saying we might be getting more than is needing especially with the fed

fully on hold and accommodating. >> victoria, if we do get a stimulus bill over the line how does that effect the market? >> i think we will see a bump because i don't think the two $2 trillion is priced in. it goes back to what michael was saying you have got that saving component for ummers right now it is great that everyone gets that check it does give a bump to conception there is a group that truly needs those funds to pay for food and to pay for rent the other groups in the economy right now put that in savings and use that for discretionary spending having that go out to everyone instead of having it more targeted will be a bump for the economy. it allows that consumg and that consumer to do well. we will see personal spending numbers actually come out next week we know retail sales were down in the last quarter. so we will see if these start to go up a little bit higher as people spend their savings in anticipating of the new stimulus package. >> jonathan, any sector or group

recommendation force stocks based on what is inside this stimulus, $15 federal minimum wage, for instance do you steer clear of the restaurant stocks? stuff like that. are you extrapolating anything there? >> before we hit that, sara, i want to comment on this stimulus and first of all, the market is going to love this because the market just like sugary drink. you know it just looks things that feel like a boost but the reality is someone is paying for this at some point in time and there is a real risk that we have an economy that overheats come the second half of the year. the reopening is going to be so powerful -- as mentioned before, the amount of money in consumer hands is so big, and the restocking that's going to go on is so huge that putting another -- putting in almost $1 trillion already approved and maybe another $2 trillion on top of that, you could be setting

yourself up with a really great next nine months then you get into next year and the fed is going to be forced to start to reevaluate how long they can stay with these interest rates and then you have the potential for some tined of a taper tantrum. how you play it, deep cyclicals, in industrials, materials, those are the areas that tend to have the most fixed overhead and benefit the most from a tick up in the economy banks do well. consumer retail does well. one last thought we have been spending a lot on physical goods and service consumption is really what has been down. the number one most important service that we consume is health care. we are all going to go to the doctor, the dentist, get our eyes checked that's going to be an interesting area that people aren't talking about as much as thing like retail. >> i have not gotten my eyes checked in a long time jonathan, thank you. jonathan, victoria, good to have

you bothan. when we come back, 2020 saw the rise of the retail investor and companies like robinhood racing in cash in. up next we will hear from a venture capitalist on what other mpieare coans set to capitalize on a new generation of retail investing products we are back in just 90 seconds what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley.

semiwelcome back average equity trading volumes surged so far this year, already surpassing volumes over the past two years according to piper sandler. this comes as retail investors continue to pour money into

equities today game to be was the stock in the cross hairs, driven higher, closing up some 50%. it was up as much as 70% during the session. our next guest says there is still plenty of room for players to get into the market joining us mercedes, thank you for joining us you have been monitoring this extraordinary growth in retail investor account openings, which apps and platforms they are using. do we have a sense of what percentage of the population that that relates to and whether we are just at the start of new entrants into the market >> i certainly think that at least when we consider the younger generations, millennial, gen z that they are still heavily underinvested compared the older generations. if you look at the percentage of household equity and mutual funds held by millennials it is just 3% of the $39 trillion. if you think also about millennials who in 2019 only 40 to 50% of millennials even had

an equity investment i think there is still a long ways to go as millennials come into the market and decide where they are going to spend or invest their money. >> presumably, mercedes, people who have only recently entered the market have only experienced gains, they haven't been through a bear market. will it lead to more selling once they have experienced a bear market period >> millennials did come of age, the older set of millennials during the last recession. i myself was working very briefly for the fed in 2009 and saw how much the financial recession had on millennials there is a tale two of millennials. the millenials on one hand who hold their money in cash and who are afraid to invest in the stock market because they have had that experience and the other side of the millennials who you hear about more today are the robinhood traders who

are chasing a thrill and spending money and excited about the highs they are seeing. i thinke both of these characterizations are a bit of stereotypes in some ways but i do think no matter how the markets go -- there will be a downturn, there always is, that millenials are still going to choose the invest somewhere. when you look at equity participation over the last couple of decades it is relatively stable n the plus or minus 7% even if people pulled back on their trading volume or pulled back a bit of their wallet share they are not going to completely abandon these platforms. >> which companies should we watch? we all use robinhood as sort of a reference point for all retail trading right now because it is so hot where else are you investing >> i think the next generation of investment products really need to think about the expectations of millennials and gen z for what they use has been heightened they are now thinking about user experience instead of competing on price

like they might have several years ago they are now competing on user experience so the new crop of products we are seeing are competing more on social and community experiences, companies like public, who are essentially you have a twitter or facebook feed, and your platform where it is all about investing. they are also focusing more on membership and perks how do you give users that sense of feeling that they belong and that they are more than just a number in the system so companies like stock perks and griffin are giving users that feeling then you also are -- we are starting so more products that are tapping into the desire to put your money where you know something about the companies where there is commerce and where you know something about the products so we are seeing alternative sites like oatis and vino vest, even our portfolio company at light speed group stock includes a product called one where you can do fractional investing in investment properties. we are seeing that brands are

having to think about too how do they tap into had investment mindset? the one other thing i would say, too, this isn't just the u.s this is really global. we are seeing the robinhoods of europe, like trade republic, flink starting to grow as well. >> do you think that the price war that clearly took hold nrnlly about 18 months ago to offer commission-free trading has now passed and that whether it is the new apps like robinhood or the traditional apps like charles schwab and others will be able to start to increase their margins a little bit in years ahead >> i think you are certainly right. it has become a race to the bot automatic and people aren't competing on cost anymore. i think people are going to become more and more creative, the companies, about how to earn revenue. and we are seeing people compete on earnings fx revenue, on order flow, of course. i think we are also going to start to see more partnerships with institutions, public

companies and private companies as potential monetization as well. >> tells like some of these new retail trading shops -- i am stereotyping but the whole game fix, the whole coinciding with the rise of sports betting feels very catered to males. i know one of your themes is female-driven platforms. where is that happening? and how big of a growth area is that when it comes to retail trading? >> you are completely right, sara i think about this as a woman myself women are not well represented across many of the trading pla platforms. if you look at the numbers it is 30% or more of some of the more popular trading platforms. i think there are a new crop of companies serving that have catered specifically to women. what they need to tap into, my personal view, is that they need to continue doubling down on making this a friendly user experience, and some of the

gamefication makes platforms more approachable. >> mercedes, thank you for joining us. >> thank you so much for having me. >> keep us posted on the investments. mer sids bent, an amazing name thank. up next, the ceo of the national association of manufacturers on how president biden's decision to resigned the keystone pipeline development will impact the economy and the industry a reminder watch or listen to us live or on the go on the cnbc app we are back after this these days, we want sophisticated but simple. cutting edge made user friendly. in other words, we want a hybrid. and so do retailers. which is why they're going hybrid, with ibm.

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president biden rolling out a number of executive orders focused on climate change during his first few days in office one of those orders includes rescinding the permit granted for the keystone xl oil pipeline by the trump administration. national association of manufactures ceo jay timmons pushing back against the move in a new statement saying manufacturers are quote disappointed in the decision and if not reconsidered misses an opportunity for workers. timmons says 10,000 employees

could be impacted. he jones us now for more on this issue. clearly, jobs are at stake we talked to richard trump ka of afl-cio yesterday. he says yes, but while energy jobs are impacted there will be more jobs created when it comes to clean energy and a lot of the other initiatives that will replace this do you not agree >> well, there may well be some jobs created in the future in the green energy space, but this recommend cents an immediate loss of 10,000 union jobs, pink slips willing going out unfortunately in the very near future but i think here's the challenge. you said it exactly correctly. this is a missed opportunity because this is not the project that president biden was familiar with from five years ago. in fact, it has changed fairly significantly. so today the project would be completely powered by renewable energy and that's the plan moving forward.

so in addition to losing those 10,000 jobs that would be impacted immediately, we are also going to lose an incredible investment in renewable jobs and green jobs in the future so that's a little bit disappointing because this was a great opportunity to show how we can actually do this as we build that bridge -- continue building that bridge to the future of energy >> so you are disappointed on this one what about what else we are getting as far as executive orders targeted around covid-19, so far around the economy? what is the manufacturer's point of view and expectations of a biden administraton after a trump administration, which did promise to prioritize manufacturers. sure we are very pleased with where the biden administraton is going on covid-19. we couldn't be more thrilled to have a leader like jeff zints in charge of that program we have been working with the biden team since the election was declared

we have been working with them in terms of producing ppe, distributing that ppe, producing the vaccine -- all of the thing that manufacturers do as the arsenal of democracy and now the arsenal of health. we are very pleased to so his announcement on immigration reform our proposal, a way forward, kind of provides a road map that's very similar to what the president has outlined there is a few differences, but those can all be worked out. we are very excited about that so i think we have a lot of good opportunities to work as manufacturers with this administration on those issues plus infrastructure overall, and trade and work force development. there's a lot of good opportunities for us to work with the administration. obviously, keystone xl was a disappointment to us but it was a promise that we knew he made during the campaign our job as manufacturers is to show the administration how this project has changed, has transformed, and will help meet many of the objectives that they want to achieve in creating this

bridge to the future of energy production >> jay, the manufacturing pmi this morning, very strong, 59.1. well ahead of expectations what do you think are the key factors that drove that strength how sustainable are they versus potentially being sort of a short-term jump after the election or ahead of potential stimulus >> well, you never know, obviously, wilfred as you said it was an unexpected high but here's my guchlt my gut is that ever manufacturers and frankly the entire business community is very, very pleased to see a focus on eradicating this horrific pandemic that has not only sickened our nation, but destroyed our economy, quite frankly. and so now, if we can build back, build back better, as president biden says, get through this pandemic by insures that we can vaccinate as many people as possible as quickly as possible and get on the other side of the pandemic, i think

that really bodes well for the economic future of this country. and i think you are going to see that in terms of optimism from not only manufacturers, but from other sectors of the economy as well >> jay, after the riots a few weeks ago on capitol hill, we covered your statement because it was one of the earliest, and certainly one of the most forceful that i have seen from business groups condemning the violence, the insurrection, but also calling on i think vice president pence to call for the 25th amendment why did you go that far? have you seen any repercussions for doing that >> look, what we did see 48 hours ago is we saw a peaceful transition of power that i think was greatly in question two weeks ago. the insurrection at the capitol was inexcusable. it is something that i don't think any us would have ever have predicted in our lifetime the good news is, the system

held, our government held, and we were able to move on. and president biden was able to take the oath of office without incident at noon on wednesday, january the 20th i think that's good news for america. i think that's good news for democracy. and it's good news for the message of freedom and our constitutional form of government that we want the rest of the world to be aware of. so i am very pleased that we did have a peaceful transition of power. and now it's time to move forward. >> jay timmons, thank you for joining us good to see you. >> good to see you both. up next, mike santoli will have a look at how much investor cash is really sitting on the sidelines, and the impact it could have on the market we are back in a couple of minutes here on "closing bell. i think financial illiteracy and inclusion is everybody's problem. and that's why we created rapunzl. the rapunzl app was designed for high school and college students to simulate stock portfolios.

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that connects them to technology, to each other, and to other agencies. that's why at&t built firstnet with and for first responders the emergency response network authorized by congress. firstnet. because putting them first is our job. stocks finished stronger for the week let's go facebook mike santoli for a look at money market assets mike >> sara, a big pile of money market assets a lot of people bullish on stocks say that's potential energy to be coming into the equity market the so-called cash on the sidelines. just under $5 trillion a spike up during the pandemic people saved more money. if you get down to the normal trend line, maybe that's $1 trillion that could arguably come back into investments

however as a percentage of overall equity market value we are closer to lows than highs. it doesn't seem as if that 4.5, $5 trillion is really all that material compared the how much the equity market has gone up. we are up $2 trillion in the u.s. stock market in 2 1/2 months it shows you it is not quite as much of a beforer as you would think. this is 2009, the low in the market money market assets 40% of what the total stock market was worth. you can take it from both sides. it didn't mean the market is going to fall apar but it means that's not really a key reason why we should believe it is going to be powering higher. >> more details on bank ceo pay. diamond of jp morgan yesterday came in at $31.5 million, held flat year over year. james gorman of morgan stanley coming out with his pay, $3 million. more than diamond. also an increase from what he got the year before. last year, he had $27 million,

which is in fact a decrease year over year. this year, 27 million, up to $33 million. hard to argue, really, with the performance of morgan stanley last year. jp morgan for example, saw share price fall in 2020 by 8.5% morgan stanley's shod up 34% last year. it was a year to be an investment banker not to be a retail banker. but morgan stanley's performance really did stan out particularly that run into year end, the final quarter. they announced the deal for eaton vance and had empty ricks. $1.5 million his base, $7.85 million his -- sfa till to come -- go ahead, sara. >> my only comment, which you know i am going to say, wilfred s the headline is going to be, millions of americans lose their

jobs, and bankers get a raise. it is just going to put more political pressure on them they are making so much -- the ceo pay to employee ratios are going to be astronomical again, and if you put that next to the loif numbers as well it is a tough pill to swallow. >> when you look at the big six the last time we compared all those ratios, goldman sachs comes out better on employ ee py to ceo >> i am not just you can about banks. >> sure, it was an impressive year for the investment banks. the interesting thing will be as well further down the line if you are in equity trading and you had an unbelievable blowout year do you get double pay or just get a small increase. we have to go to break and we will have the ceo of c ls ene meack.arot

time for a cnbc news update with sue herera. hi, sue. >> hello, wilf hello, everybody here's what's happening at this hour at the pentagon newly confirmed defense second lloydaustin has arrived for his first day on the job. he is the first african-american

to hold that position. the senate confirmed his nomination, 93-2 amazon has filed a motion to block a vote to unionize at one of its air houses in alabama it is the first union election scheduled at an amazon facility since 2014. exxonmobil has become the latest big supporter to pull its support of the eye it the rod dog race peta has called the event as abusive to caution who must run 1,000 miles in two weeks other sponsors who called out, include jack daniels whiskey. >> the former make a wish ceo has been arrested accused of taking tens of thousands of dollars from the charity that supports sick children you are up to date that's the news update this hour sara, i will send it back to you. >> sue, thank you. up next, disrupting the used car

business carlotz making its market debut via spac merger today. after the break. "closing bell" will be right back

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change crisis real group the deal, $2.6 billion, is expected to provide ev go with net cash proceeds including $400 million from have. ors including pimco, black rock, wellington management. they help set up the charging infrastructure and this marriage of evs and spaces continues into 2021 after nikola, quantum escape, so many the prior year. >> strong jump as well as has become the norm. speaking of spacs, carlotz began trading on the nasdaq under the ticker lotz. joining us now ceo michael bore lotz tell us how your business model is different from other used car resellers. >> sure. we are the only consignment to retail used car retailer

what we do is we sell vehicles for people instead of being a merchant which buys vehicles low and sells them high. we are a service provider to the car seller, if you are a consumer car seller or corporation that has vehicles the sell and we sell them through our omnichannel platform to used car buyers, the retail public. before we existed you may have traded your car in or taken it for a car buying service, or you could have sold it yourself on craig's list or parked it on the side of the road with us we take your vehicle, professionally merchandise, market the vehicle, recondition it, we sell it to the retail public through or on line channel or hub network and we stand behind the product. from a buyer's perspective, just like another used car retailer although we stan behind the product and offer a better price and for the seller they get more value for their vehicle.

>> your revenue i think we showed it on the side of the screen comes from a flat fee as opposed to a percentage of the sale price >> we have different models but most of our clients are on a flat fee model so whether you are selling a $4500 car or a $90,000 car our fee is the same. it is, because it is the same amount of work to sell both vehicles and we want to offer the same value to every type of car seller >> is that the value proposition, michael, for the consumer why would i go to you instead of just sell my car on craig's list or facebook marketplace or just the used car dealership down the road >> yeah, so the way it used to work and still does for those who choose to go that way is you can either go low value, low last hassle, trading it in at a dealership very easy. just give them your car. but you are going the get a very low value. or you can do-it-yourself, higher value but a lot more

hassle, time commitment, potential danger what we do is we marry the two and we provide you high value, low hassle that's because we do all the work we professionally market and merchandise your vehicle and we sell it to the retail buyer and net our fee, you are going to make thousands more than you have had you sold it yourself or traded it in >> it is been a good time to be in the used car business, for sure, we have seen it boom during the pandemic, mikele a. what hap -- michael what happens when we start using public transportation again and ubers and lyfts again. what does the business look like >> one of the things we love about this industry is it is stable there are millions of cars every year the peaks of the boom, the trough of the depression, each year you will see right around

40 million sold. it is actually a very stable market what does change is pricing. because of our flat fee model pricing doesn't necessarily impact us like it does the rest of the industry. whether we sell a $20,000 car in good tames or a $10,000 car when people are struggling a little more, for us, we are providing the same value to the seller, we are providing a great vehicle to the buyer and it really doesn't matter what part of the economic cycle rear in. >> how quickly did you make the decision and execute it to go public via a spac? were you surprised how much demanded there was, how simple it was >> i wouldn't say it was simple. it has been a grueling six to eight-month process but it has been really rewarding. you know, we started this business 3,585 days ago. my two cofounders and i were sitting in a room trying to figure out how to get this thing started. what we did was raise about half

a million from local friends and family and investors and decided we weren't going to raise more money until we got to either break even or profitable we did that. we did that again in 2012 with another raise. again in 2014 with another raise and again in we raised profitability, and talked to the bankers and we said that we are decided to go big, and national and we have proven it out in local, regional, and super regional and now we are ready to go national. so we spoke to bankers and talked about capital that we needed, and the spac option came out as leading option, and so it was august when we started to speak to a handful of spac options and we found several groups fantastic. we ultimately chose accumar partners who were a phenomenal group of experienced investors who have invested in and grown

multi million retail brands and with that, we went through the pipe process and then the despac process and closed yesterday and began trading today. >> congrats on the milestone, and it is good to have you on, michael. >> thank you very much, sarah. i appreciate it. >> up next a big week for plrnings. ape, facebook and a slew of names on the docket when the trades hit the tape straight ahead.

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♪ >> so good. who is yellen now. when president biden first announced the nomination of j janet yellen, he said that there should be a musical for her, and that musical clip is what they came up with. and so she did clear a key hurdle as the finance committee approved the nomination and she is on track to become the first female treasury secretary of the

united states, and it should be easy nomination next week and she passed the panel 26-0. it is so funny how "hamilton the musical" has made this position so cool and so relevant. >> it is no doubt. it is actually fascinating that first of all fifth in line to president, and nobody thinks of that and the secretary treasury sitting that way, and what a change to not necessarily dial it back to four years ago, but when "hamilton" was in the news, because the staff was rebelled against the idea that vice pence was in the audience and remember all of that flap, and now we have a little bit of the pat on the back for the new treasury secretary. >> and the question is, sarah, did you need "hamilton" to arrive to think that the position of treasury secretary was a cool one >> come on, we always knew. we always knew, but the musical is so fantastic, and so -- >> and by the way -- >> and she is. >> and not to be so wonky, but

ham tilton to normalizing the banking system and no fed back then, but he got the ball rolling in that direction and very necessary at the moment. >> he should do a sequel on the fed. we have under two minutes on the show, mike, but we are facing a massive week of earnings, and wednesday is explosive on "closing bell" because we have apple, facebook, tesla and a fed meeting that day, and throughout the week, really, some of the heavy hit hers 3m and j & j, and who are you watching >> the tech name, and it is going to be interesting if they can provide the huge reminder of the phenomenal businesses they have, and they have done it that the stocks do not trade directly off of it, but as we saw with netflix, it is an excuse for the people to rediscover the stocks that they have not done a lot in the last few weeks, but the cyclical and the industrial companies can give us an idea of how they are pacing.

i don't expect a lot in the way of the formal guidance, but maybe some color in there, and in general, corporate america a better time on the bottom line than we would have expected. the floor for profitability was higher than feared a few months ago. >> and looking at how we ended the year with facebook and netflix up 9% and wonder if it is segt up fraction harder for the banks than netflix. and we are out of time here, and "fast money" starts right now. i'm melissa lee, and joining us is jeff grasso and the rest of the guys. and so we are geared up for a huge slate of earnings in the week ahead. look at the big names reports, tesla, apple, 3m and facebook. and we are give you a key thing to watch when they report. and later, gamestop won't stop, and the stock is surging another 51% today but there is