it is 5:00 a.m. at cnbc global headquarters and here is your top five at 5 investors bracing for the busiest week of earnings season as the markets look for more fuel to hit fresh record highs breaking news out of the biden administration as we get new details of the latest executive orders from the president targeting american workers. we are live in washington with the latest there the head of the cdc issuing a stark warning on the federal government's grasp of the covid vaccine rollout, saying it's unclear how much of the vaccine

there actually is. as we mentioned, a big week for earnings reports with big technology in focus as new questions mount of the potential hurdles for their stock's continued climb. and super bowl xxlv is set. tom brady is back with another super bowl team. it's january 25, 2021 and you are watching "worldwide exchange" right here on cnbc good monday morning. i am dominic chu in for brian sullivan we start this morning with the victories by the kansas city chiefs and the tampa bay buccaneers both teams are heading to the super bowl after winning their respective conference championship games yesterday we will have more on those highlights coming up a big dueling battle coming up

patrick mahomes, a new-age quarterback, versus the steady tom brady. we'll check out how those games fare later on in the show. the global market, stock futures pointing to whatwe'll call a very flat open. look there, the dow jones implied higher by just five points the s&p by ten and the nasdaq higher by 128. the nasdaq assuming that leadership role in the markets in 2021 after taking a backseat for the final quarter of 2020. this after another report-setting week for the markets. the dow, the laggard among those major indexes only climbing 0.50%. the s&p and russell 2000 small cap index jumping roughly 2% the nasdaq surged more than 4% as shares of the big technology stocks pushed the index to a new all-time high. speaking of big technology, it will be a very big focus for investors this week as they prepare for the busiest week of

earnings season. we have 13 dow components and 111, approximately, s&p 500 companies set to report results, including apple, facebook, net netflix, microsoft, tesla, mcdonald's, honeywell, caterpillar, boeing. you get the idea now, according to data from bank of america, of the s&p 500 components that have already reported earnings, 73% have beaten on both their revenue and profit lines that's a trend to watch. also let's check out what's happening with the price of bitcoin. 32,980, a hair off the 33,000 mark on the coin-based platform. over the past month, up 35%. everybody remembers the moves we've seen off the record highs that was 40,000 at one point bitcoin prices still in focus. marginal upside today. take a look at the continued struggle by crypto

strategists at jpmorgan says the march back may face uphill battle in kite of decreasing demand from grayscale, the most prominent digital manager in the world. we'll highlight another crypto, hitting record highs, even though bitcoin is coming off its. worldwide, stocks in asia kicking off the new trading week on a positive note the hang seng and kospi in south korea leading gains in the region both climbing more than 2% investors in asia and around the world are watching comments from chinese president xi jinping on his keynote address at the world economic forum meanwhile, taking a look at the early trade in europe as well, we have seen a bit of a pullback from the positivity we saw earlier on right now you can see the german dax about flat the ftse 100 and the cac in france down 0.25 to 1% the director of the cdc is

warning the federal government does not know how much covid-19 vaccine this country actually has. in an interview yesterday, dr. rochelle whatalnensk said se did not know how much vaccine had, saying the expected introduction of johnson & johnson's vak son will help ease some ipo. kuaishou could raise $6.3 billion when shares are priced friday in hong kong. the stock is expected to begin trading some time in early february and facebook and amazon, apparently not afraid to open their wallets, at least when it comes to influencing

decision-making in washington, d.c. according to "the wall street journal," the two companies topped all the other u.s. firms in their federal lobbying spend last year. the journal says facebook spent $20 billion, that's up 18% from the year prior, while amazon spent about $18 million. that's up 11% from 2019. the moves come amid the new administration and increasing scrutiny from congress on the regulation of big technology companies. now to new details just crossing on president biden's latest executive order action. the president will sign the order being called biden's buy american plan, directing agencies to strengthen requirements so they acquire goods and services from american businesses and workers the president has previously pledged to make a $400 billion investment during his first term in federal purchases of products made by american workers and to tighten loopholes and

waivers that allowed federal agencies to buy products produced overseas among some other actions. the move comes as president biden kicks off his second week in office with plenty to do on his list for more on all the action out of >> reporter: good monday morning to you president biden wants people to only buy american and only fly to america if they are safe from the covid virus and its latest variants that have been discovered overseas. today cease signing off on new travel orders to back that up. there's a new strain of covid in south africa and nine u.s. citizens whotraveled there wil not be allowed in the u.s. under new restrictions president biden plans to sign today. he's also blocking visitors from brazil and much of europe, including the uk where there's another new version of the virus. >> the best way to prevent the

further evolution of these mutants is to vaccinate as many people as possible >> reporter: the biden team is efforting 100 million shots in 100 days they claim the trump administration left no plan. >> we need more vaccine, we need more vaccinators and more sites. >> reporter: biden spent an hour on the phone with eight senate republicans and eight democrats talking covid relief he's hoping to make progress before former president trump's impeachment trial starts february 8th. >> it will be a fair trial but move relatively quickly. >> reporter: lawmakers arguing whether trying a former president is constitutional. >> i think it's stupid, counterproductive. we already have a flaming fire in this country and it's like taking a bunch of gasoline and pouring it on top of the fire. >> reporter: the formal charge of inciting an insurrection due to arrive in the senate tonight. and the president has hired a lawyer out of south carolina to

represent him. the house managers say they are ready to present their case. dom? >> nbc news' tracie potts with the latest back to the markets and what could be a major gut-check for investors as three major events are happening this week. first, the busiest week of earnings season with nearly 120 companies reporting and 60% of those are on wednesday and thursday big week there, big days second, the fed holds its first policy meeting of the new year, kicking off tomorrow with a decision and news conference by fed chair jay powell on wednesday afternoon. third we get a report card on the state of the u.s. economy and whether it is recovering or stalling out amid the virus pandemic when the initial read on fourth quarter gross domestic product comes out on thursday. let's welcome in now gina sanchez, a cnbc contributor. the markets are at or near

record highs is there anything that can take this market down, even with a surge in covid we continue to march higher >> you're absolutely right and i think of the three things you mentioned, i think the last item, which is the scorecard, the gdp for q4 is going to be where all eyes are going to be, even given the number of earnings results we're going to get this year. i mean this week so, the reason i say the gdp is important is because we are going to likely see continuing acceleration but a slowdown. we're recovering but recovering at a much slower pace. in fact, there were a number of troubling indicators in december that basically shows us going into negative payrolls for the first time since april, slowing in consumption and a number of items we have to keep an eye on because i do think that's the

one thing that could spook the markets. >> what is the biggest worry you have we know the markets are not the economy and the economy not the markets. but there's a huge disconnect and one that's been looking like it's been widening since the pandemic lows. what's the biggest disconnect between the markets right now and what the economy could be telling us >> well, the markets continue to price as though the pandemic is going to be, number one, temporary and, number two, still fairly quick, even this intermediate 18-month time span. if we start to see continued slowdowns, if we have any trouble rolling out with the vaccines, the markets are not priced for that. they're priced for us to smoothly get through the next six months and reopening if we're not reopening by the summertime, the markets, i don't think, are priced to continued

to bear the multiples they continue to bear because we've seen earnings numbers drop even though we've seen them do reasonably well and they have beat expectations, they dropped dramatically, but multiples have not changed dramatically in many cases, multiples have continued to expand as though this is all going to be a bad dream and we have yet to get beyond pre-pandemic economic levels. >> we know that the folks in washington, d.c. on the congressional side are working towards getting a massive physical stimulus done we know policy makers will keep accommodative for the near and long-term future with all that being said, are there still opportunities in the marketplace to be long in this environment if we know all the positivity is already going to be there >> well, look, just because the markets are extremely overpriced doesn't mean everything is overpriced equally there are still lots of

opportunities still floating around this is going to be a stock-picker's year. if you look at most expectations for the s&p for the year, they're largely expecting flat to up to 2% for the markets. however, i think that is going to portend a lot of volatility and it's going to be a stock picker's market this year. >> gina, we appreciate it. when we come back on the show, the cryptocurrency hitting new all-time highs amid bitcoin's continued struggles. plus, president biden and british prime minister boris johnson taking part in their first joint phone call together. we'll go to london for the breakdown on what the two leaders discussed. and a record-breaking launch for spacex amid its continued push into the commercial space business we have a very busy hour still ahead when "worldwide exchange" continues after this break or s.

modern or reliable. we want both - we want a hybrid. so do banks. that's why they're going hybrid with ibm. a hybrid cloud approach helps them personalize experiences with watson ai while helping keep data secure. ♪ ♪ ♪ from banking to manufacturing, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. ♪ ♪ ♪ these folks, they don't have time to go to the post office they have businesses to grow customers to care for lives to get home to they use stamps.com print discounted postage for any letter any package any time right from your computer all the services of the post office plus ups only cheaper get our special tv offer a 4-week trial plus postage and a digital scale go to stamps.com/tv and never go to the post office again.

welcome back now to president biden's first weekend in office, taking part in his first call with his british counterpart, prime

minister boris johnson the two men touching a number much key issues between the two long-time allies cnbc's julianna tatelbaum has more from london good morning >> good morning. uk prime minister boris johnson and president joe biden spoke for the first time since the inauguration he gave his thumbs up with sleeves rolled up has been making its rounds in the british press. he said he warmly welcomed the president's decision to rejoin the climate and wmpbl.h.o according to a press release from the white house, biden conveyed his intention to strengthen the special relationship between our countries and reviolationize transatlantic ties underscoring the role of nato to our collective defense and shared values now, the british prime minister tweeted that he looks forward to

deepening the long-standing alliance between the two countries. dom? >> i'm also curious there, you know there is a lot of similarity and, perhaps, differences between the uk response and the u.s. response to the covid pandemic. can you take us through the latest there on what exactly is happening with lockdowns and protocols in place to help stop the spread of the covid vaccine -- or the covid virus amid the vaccine rollout >> so, dom, here in the uk we are still under a national lockdown the vaccination program has been going well, gaining pace in recent weeks we are still heavily restricted. over the weekend the narrative has begun to slightly shift. there's a lot of concern now around the uk variant. there is some evidence it is associated with higher mortality. the uk government told the public this on friday night. over the weekend, a lot of reports swirling around the implications of a potentially

deadlier strain in this new uk variant. so, a lot of concern this may mean it will take longer to lift restrictions even as the vaccine rollout gets under way. >> cnbc's julianna tatelbaum live in the uk with the latest. still to come on the show, big tech earnings on deck this week amid concerns of concerns for that sec to are. we lay out potential hurdles

dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere. hi, i'm a new customer and i want your best new smartphone deal. well i'm an existing customer and i'd like your best new smartphone deal. oh do ya? actually it's for both new and existing customers. i feel silly. but i do want the fastest 5g network. oh i want the fastest 5g network.

are we actually doing this again? it's not complicated. only at&t gives everyone the same great deal. like the samsung galaxy s21 5g for free when you trade in. these folks, they don't have time to go to the post office they have businesses to grow customers to care for lives to get home to they use stamps.com print discounted postage for any letter any package any time right from your computer all the services of the post office plus ups only cheaper get our special tv offer a 4-week trial plus postage and a digital scale go to stamps.com/tv and never go to the post office again.

welcome back there's a lot of highlights in the crypto market these days, potentially associated with bitcoin. ether on the coin platform, holding below the 1400 mark. the reason why it's important is within the last 24 hours, this cryptocurrency surged to record levels, 1,454 was that level, depending on which platform you look at. keep an eye on ether also taking a look at emerging markets etf, one of the better performers since the pandemic lows if you look at the russell 2000 versus the s&p 500, they have all been up higher now talk about the emerging markets, they have outperformed the s&p 500 since the pandemic lows you can see there, that move higher in the last three months, up 22% a key focus for many investors is the catch-up trade emerging

markets have performed over the last several months. finally, take a look at the ishares, the ticker is hyg, but seen by many investors as a proxy for the junk bond or high-yield debt market the reason why it's important is over the last few months, you've seen a steady uptrend in some of those particular moves in high-yield corporate bonds it's an indicator when quality credit starts to worsen, these types of etfs will fall. if people are looking for a reason to stay optimistic, high-yield bonds not yet signaling any kind of real stress in the credit markets. let's check on the other top headlines as well. francis rivera is in new york with the latest. good monday morning. >> good morning to you we start with a dramatic rescue in china a mine collapsed after an explosion two weeks ago, trapping crews 2,000 feet underground. 11 of 22 people were saved.

for the latest covid numbers surging, we may be through the holiday surge. cnbc is reporting governor newsom is expected to lift california's stay-at-home order today, according to a letter sent to the california restaurants association. there are promising signs that california is emerging from the most intense stage of the pandemic a formal update will come this morning. the chiefs had a slow start against the bills in the afc championship, but once patrick mahomes warmed up, it was over kansas city won it 38-24 for the first time ever, tom brady is a champ in the nfc. brady and the buccaneers knocked off the packers 31-26. the bucs and chiefs will face off in super bowl lv. more than 7,500 vaccinated health care professionals will be in the stands to watch all the action commissioner roger goodell gifted those tickets to doctors and nurses himself he did it over zoom. it was great to see the

reaction great to have tampa bay, hosting the super bowl and having their hometown team. >> if anyone had any doubts that tom brady is the greatest quarterback of all time, i grew up a niners fan in the montana era. i hold dear he was the best, but this performance by tom brady on a new team this year, going to the super bowl again, is massive. you've got to give props to those guys for sure. >> 100%. the coolest thing, after it was all done, after he won and gave the other team all the hugs and high fives , he went to the stands and asked -- he was like, can i just talk to my son? it was the coolest part there. >> absolutely. >> class aaccount. >> a total family man for sure thank you very much for that. on deck for the show, president biden kicking off his second week in office with another wave of executive orders, eos. we'll lay out the actions he's taking and break down how his agenda could impact your money and the global economy

want to save hundreds on your wireless bill? with xfinity mobile you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network. sure thing! and with fast nationwide 5g included at no extra cost. we've got you covered. so join the carrier rated #1 in customer satisfaction. and get a new samsung galaxy starting at $17 a month. learn more at xfinitymobile.com or visit your local xfinity store today.

good monday morning. futures pointing to a higher open as wall street prepares for the busiest week of earnings season. president biden set to sign an executive order today, focused on u.s. manufacturing. and lift-off elon musk's spacex launches a rocket and sets a new global record in the process. it's monday, january 25, 2021.

you are watching "worldwide exchange" and rockets right here on cnbc. welcome back to the show i am dominic chu in for brian sullivan here is how your money and investments are looking this morning. stock futures right now pointing to some solid gains, especially when it comes to the nasdaq. implied higher by roughly 131 points the s&p up 11 heading into the busiest week of earnings season. by the way, check out shares of gamestop, surging this morning. take a look at this one. it's huge. 390% gains on a year-to-date basis. yes, your eyes are not receiving you. that's just since the end of 2020 up another 38%, 40% in the

premarket trade as well. a lot of investors and analysts pointing to what they call a short squeeze or covering, purchasing of these shares to close out losing positions betting against this particular stock. it may not last long-term. still a 370% gain in three weeks' time. now onto other technology. jeff bezos and marc benioff are signing an open letter to president biden on climate change the letter published in "the new york times" reads in part it, quote, you can be remembered as the climate president who led humanity away from the cliff's edge also saying, quote, while the climate crisis presents incredible challenges, it is also the greatest economic opportunity for innovation, job creation, and investment in our communities. others signing the letter include business leaders, actors and activists as well.

a big letter from a lot of high-profile people. for more on president biden's first few days in office and what we can expect with his economic agenda, i'm joined by ham ton play founding partner and cnbc contributor, also stephanie kelly. thank you both for being here. stephanie, let's start with you. has there been anything that has really surprised you about the first week and a half or so of president biden's administration >> actually, in some ways it's been kind of what was promised, which is a hit the ground running, veryagenda, very focusn economic focus very much at home, trying to get this covid stimulus done. i think even the reactions we've seen in terms of the bipartisan pullback, it's so far as expected. >> you are a current insider, tony, and a former administration official.

how exactly would you be tackling the first couple of weeks in office for any president? what are the types of things they should be focusing on and is the current biden team focussing on the right things? >> i think so. they recognize the biggest problem they have is not just the actions they're taking on covid, which they are taking actions, but getting the unified focus on covid they know the pandemic is the key for them to get through this first year, to show competence on it and try to show a stark distinction with the previous administration, but also that unlocks this economy there's been a lot of chatter about whether the 100 million vaccinations in 100 days is ambitious enough if they carry it off, i think they'll exceed it. and i think this economy will look very different when we get into the summer because of that.

they're also going to earn confidence on it they're focusing on the economic plan, economic support this is the first time in a while we really feel like we have monetary policy support with jay powell's hands on the oars fiscal support is going to be there and help on the health side there's a lot for this government to do it's starting off an administration is pretty challenging, but they have a lot of experienced people and they seem to be running right now >> tony, stephanie, i want to add more context to what we're talking about right now. president biden is set to sign another executive order today, focusing on the american manufacturing environment. let's bring in kayla with more on what we can expect there. good morning, kayla. >> good morning. president biden has signed more than two dozen executive orders so far today is set to bring one more, tightening rules for domestic manufacturing where american government contracts are concerned. the administration says it

applies to some $600 billion in government business, refining what qualifies as american made and reducing the number of exceptions made through waivers. it creates a new role at office of budget and small businesses can scope out contracts to see if they're better suited than the company that's currently bidding or has already won the contract it's an issue the trump administration also targeted with executive action at least three times over the last four years. when asked how this action is different, biden administration officials said it will close loopholes left over by the trump orders, even as they raise the threshold of domestic content requirements justin trudeau in a call with biden on friday raised concerns about the impact of the new policy on bilateral trading and the intertwined supply chains. biden said there would be no unintended consequences between that relationship. over the weekend he held calls

with the leaders of mexico, uk and france, pledging cooperation, multilateral engagement you also have to manage they discussed a new travel ban, some new restrictions that biden is going to reinstate starting today on travel into the united states from the uk, europe and brazil as well as non-u.s. citizens who recently traveled to south africa. >> can you break down for us, it feels like deja vu, even though i know there's nuance here, but it seems as though the american manufacturing executive order seems to further stuff that happened during the trump administration what can we expect from the new biden administration that will be similar to what president trump did during his final months in office as well >> i think a lot of the trade and manufacturing policy is going to be quite similar. one of the things you saw the trump administration do on the way out, specifically was to try to crack down even further on china, to put more companies on

the entities list, threaten more action because they knew one thing the biden administration would not want to do from the outset was to appear weak on china and to immediately come into office and reverse some of these actions. to be sure, president biden has said, and many of his economic officials have said the policy on china was actually a pretty good move and that reversing those tariffs was not going to happen right away. it would be studied pretty closely. i think a focus on domestic manufacturing, job creation here in the u.s. and perhaps tightening the crews on some adversaries overseas, a lot of that could be very similar, even as we see this approach to engaging allies in that effort quite different. >> kayla with the latest from the biden administration, thank you for that report. now let's get back to our guest here stephanie and tony, you heard kayla's report just now. it seems like a no-brainer, stephanie, that you would focus as president biden on some of the wins that president trump had, like on trade, like on

china, like on big technology. what exactly will the biden administration look like in terms of its policy decisions when it comes to things like trade? >> i think this is where it's really important to distinguish between political multilateralism, which we've seen biden do a lot of, signing back to the paris agreement, signing up to the world health organization, those kind of actions, engaging with allies. that's different from economic bilateralism which biden said he's not an economic bilateralist he wants to sell this made in america manufacturing creation agenda what that means for trade policy, i think, is the tone might feel different, we're not expecting to have tweets with new tariffs come in, but for investors it's a volatile environment but it doesn't mean a more positive u.s./china trade environment. if anything, i think we'll see tensions ratchet up and nontariffs rise through this

administration, maybe more so to human rights than bilateral trade deficits the same kind of reality exists, which is the u.s. and china are on a path of strategic rivalry, not strategic alliship that's not going to change for investors and i think that's widely recognized. we might have a slightly smoother past as opposed to the volatile twitter we had in the past. >> tony, with your clients, what exactly are they asking you about, what type of volatily we could see with regards to, perhaps, policy tip of hands, so to speak, in the biden administration should we expect the same kind of volatility we saw during the trump administration >> no, we won't see those kinds of things. we won't be punching our allies in the face as we go about some of these policies. as stephanie and kayla both noted, a lot of these policies are very much the same the buy america provisions are going to be concerning to our

allies my clients don't like to see that they don't like to see this kind of sort of populous protectionism even though the tone is different. we won't see volatility in how policies are made. there will be a lot more process and expectation behind it. but the policy end game is going to be -- is not going to stray too far from it the trump administration on some of these big cross-border issues. but process makes people happier. they can plan for it, they can prepare for it, they know it's coming, they can provide information to try to mitigate the direction of some policies. >> a couple moments left what's the biggest risk you see in the next few months for the biden administration >> i think the biggest challenge they have to face is just the fact that, yes, there is a democrat majority in the senate but it is narrow they can't lose anybody. that means you have to have joe manchin on side and bernie

sanders, and those are two politicians with different views about how policy should go i think they'll get there. i think ultimately joe manchin will fall in line and you'll ultimately get a covid support bill and another net fiscal boost, but the process to get there might get a little ugly. >> thank you both for being with us here this morning with insights there. coming up on the show, a big tech, a big focus for investors this week. we have apple, faces book, microsoft, tesla, among others set to post quarterly results. we have a big week of earnings ahead. as we head to break, some other top headlines today. china overtaking the united states assist the world's number one destination for foreign direct investment, or fdi. ncr is reportedly nearing a deal to buy cardtronics for 39

bucks a share, roughly $1.7 million. they are outbidding two investment firms who previously agreed to buy them for $35 a share. but declined to raise their offer. spacex launching a record, a record 143 satellites on a falcon 9 rocket this past weekend. this is the company's first mission that had payloads from multiple customers on board one particular mission stay tuned "worldwide exchange" will be back

♪♪ hey you, yeah you. i opened a sofi money account and it was the first time that i realized i could be earning interest back on my money. i just discovered sofi, and i'm an investor with a diversified portfolio. who am i?! i refinanced my student loans with sofi because of their low interest rates. thanks sofi for helping us get our money right. ♪♪

these folks, they don't have time to go to the post office they have businesses to grow customers to care for lives to get home to they use stamps.com print discounted postage for any letter any package any time right from your computer all the services of the post office plus ups only cheaper get our special tv offer a 4-week trial plus postage and a digital scale go to stamps.com/tv and never go to the post office again.

you know what that animation means. welcome back to "worldwide exchange." as we have been discussing, this week will be a big one for earnings reports, especially for big technology companies apple, facebook, microsoft, and tesla are among those companies reporting their results. for more on what to expect, i'm joined by jason ware, partner and chief investment officer at albion that is a big, big list of big, big catalysts. what exactly is going to be top of focus for you on this big week with of earnings? >> good morning. as you noted, about 35% to 40% of the s&p market cap is reporting this week. a lot is in technology of course, microsoft and apple will be two that are on our list of importance given, a, we own

them for clients and, b, just given the weight they carry in the index. we expect a good report from both companies i think for microsoft, azure will be there for investors and growth i think if they do north of 40% that that's good and the stock has con so will lated over the last four or five months it's not extended. if we get a new number from azure and new products from xbo tick up, that will be good holiday quarter is important for apple. our expectation has been that we're in a new supercycle for the iphone, probably than what we saw with the 6 given 5g and the upgraded camera, four different iphones in that lineup services will also be very important. see how many subscriptions we get there and wearables category for growth we're optimistic we'll see good numbers. >> we're showing a chart of

apple right now. it shows in the past 12 months apple is up almost 80% during that time span how does a company the size of apple go up 80% in one year? is it fundamentals driven or just the idea that investor demand for apple stock is just through the roof these days? >> it's a great question and i think it's a little bit of both. we've had multiple expansion in technology, multiple expansion at apple we've had fundamentals going up because we've seen some new services rolled out at apple that i think ng investors are excited about. their wearables category is growing at 25%, 30%. it's becoming a big irpart of their business they're rolling out new products within that category that investors are excited about. of course, we have that big -- what we consider to be a supercycle in the 5g iphone 12 coming up. all of those things are resulted in increased investor excitement

meanwhile, there's a tailwind. we'll see a little better growth on the earnings line >> some of these communication services companies and big technology companies have been underperformers in the shorter to medium term we've seen a bit of that trend reverse itself in the early weeks of 2021. do you believe that this earnings season will be a positive catalyst for big technology and media companies or will it be a reason to take profits? >> hard to say over the short term what's going to happen to these stocks or any stock. i think the setup looks good and i think that's something investors can take solace in that we've had four to six months of fairly consolidation and it's been healthy these stocks haven't broken down if you look at them technically, they're holding fairly well. niece are typically good entry points for long-term investors

into these big technology companies. that tells us expectations aren't overdone, they aren't overcooked if they come out with pretty good numbers this quarter, i think that provides a new setup for these stocks to move higher. apple is already moving higher it's working through that channel, that base and broken out. some of these other ones are in the side long pattern. amazon next week, alphabet next week if we see those companies report some really good results, then i think given the expectations which everyone is going into value and cyclicals and tech is not going to work for a while, that seems to be the consensus on wall street, i think there's a potential for upside surprises and the stocks to work in the near term. >> positivity on big tech from jason ware at albion. coming up on the show, what all these big tech reports could mean for the broader markets this week. you just heard jason mention them almost half of the s&p market cap reports this week. if you haven't already,

subscribe to our new podcast "worldwide exchange" every day in audio format if you miss us here on the television check us out on apple or spotify or whatever your podcast app of orwi ehae"od "wlddexcng pcast we'll be right back.

no one likes to choose between safe or sporty. modern or reliable. we want both - we want a hybrid. so do banks. that's why they're going hybrid with ibm. a hybrid cloud approach helps them personalize experiences with watson ai while helping keep data secure. ♪ ♪ ♪ from banking to manufacturing, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. ♪ ♪ ♪

welcome back to "worldwide exchange." futures right now pointed to some solid gains at the opening bell, especially when it comes to the nasdaq. they're implied higher by 131 points the dow underperforming, only up 29 at the open with futures markets staying the way they are right now into the opening bell. joining me is lori, head of u.s. equity strategy for rbc capital markets. great to have you here first of all, congratulations because as your research note points back, you're fresh back from maternity leave let me ask you right now, how is everything going on that front as a parent? >> everything's going as well as can be expected.

the baby's sleeping 11, 12 hours a night. you can't ask for more than that i hope we all sleep well this year. >> i do, too i'm looking here because you call 2021 a year of resilience, recovery and realignment you've thrown right now a newly issued 4100 price target on the s&p 500. that's a 9% gain what's driving that bit of action here and why the positivity >> look, we think the path to economic recovery remains intact we think it's going to be choppy we think there are some potholes we're in the middle of one now, frankly. we do think the wobbles we'll see in the short term economic indicators like restaurant bookings will not do things that signal we're coming into a double dip recession we generally think the market will continue to be forward-looking. all that being said, we think that's risk of a pullback. it could be mild, 5%, or deeper, 15%. but we would be buyers on that weakness. >> buyers on that weakness, what exactly would drive that kind of

weakness here? is this a market where the fundamentals are still healthily constructed and healthy gyrations in the market, on is there something that could drive a larger pullback in the market overall? >> i think one thing we've noticed is if if you go back to 2018, we had crowded conditions from a bottom-up stock level participation and there was a lot of froth in the market on the basis that there was a tax cut package that had gotten passed out of washington we think the setup is similar right now. you look at futures data, aai retail investors, sentiment has gotten very frothy a lot of that has been generated by excitement over the stimulus plan we think investors need to take a little beat. we think the economic recovery will continue but we think we need to see further drivers. and we think markets will start focusing on 2022 fairly soon a lot of the good news from 2021 does seem baked in at this

point. >> if that's the case then, do investors and traders fall back on pretty much what's been working for the past decade? that's mega cap technology we know it's taken a break for the past three months but it seems as though in the early going of 2021 it's pretty much where investors go to. it seems to be the path of least resistance does that continue >> i think for 2021 as a whole, reflationary trades will work when rising inflation expectations are in place and valuations still look pretty good in the term term or while concern in the market is building, i think you'll see areas like technology, health care really do some outperformance as people want to stay invested in the market but do so in a slightly more defensive way. i think one thing we have to consider about technology stocks is the earnings outlook seems pretty bright. earnings always seem to come

through for those companies. while you have concern building on the virus front, concern over some of these short-term economic wobbles, and you have an earnings season where these numbers are probably going to be pretty good. it doesn't surprise me to see action where the tech stocks shine a little bit again, but we think that will be short term. >> let's bring in cnbc contributor larry mcdonald as well you're the editor of something called the bear traps report are you as optimistic about the 2021 market outlook as, perhaps, lori is? >> it's great to talk to you we have an institutional chat with buy side, you know, asset managers around the world. we have the largest snooulgts institutional chat the one sentiment i see from them, especially this morning and last week, is classic, classic tug of war between growth and value investors

and every time we see a little pick up in covid globally, more so the u.s. is better than the world over the last couple of weeks, that brings capital back. as you beautifully explained, into the faangs and the stay-at-home stocks. as we come out -- mark my words. as we come out of this covid fog, the first quarter, you're talking about a crescendo, near life-changing investment experience there's going to be a wall of capital leaving tech, leaving the faangs and moving into materials and reflationary trades to get them, you have a short-term reflation problem, covid, and vaccine execution at the end of the day, by the second quarter we're going to be in a much different market environment where the big -- the largest rotation of our lives is coming. >> that's a big, big words there, reflation for sure there as well. lori, larry, thank you both for

being with us this morning we appreciate your thoughts. that does it for us on "worldwide exchange. take a look at futures right now. the nasdaq pointing to some solid gains ahead of this very busy week of earnings season "squawk bo icongp xtx"s mi une for skin that never holds you back don't settle for silver #1 for diabetic dry skin* #1 for psoriasis symptom relief* and #1 for eczema symptom relief* gold bond champion your skin ♪ you can go your own way ♪ gold bond it's time you make the rules. so join the 2 million people who have switched to xfinity mobile. you can choose from the latest phones or bring your own device and choose the amount of data that's right for you to save even more. and you'll get nationwide 5g at no extra cost. all on the most reliable network. so choose a data option that's right for you.

get nationwide 5g included and save up to $300 a year on the network rated #1 in customer satisfaction. it's your wireless. your rules. only with xfinity mobile.

morning futures pointing to a higher open, a little higher, as wall street prepares for the biggest week of earnings season. breaking in the last hour, president biden preparing to sign a new buy american executive order. we'll take you live to washington. and the super bowl field is set. tom brady and patrick mahomes will face off in tampa not quite twice as old but not off by that much january 25, 2021

"squawk box" begins right now. good morning, everybody. welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. if you check out the u.s. equities, you'll see the trend we've been following dow futures indicated up by 31 points the s&p futures up by 13 the nasdaq up by 133 the dow was up for the week last week by 0.6% i think that was the fifth out of six weeks we've seen the dow closing higher the s&p was up a little bit more than the dow it was up by 2%. that's the third out of four weeks weave seen the s&p higher. then you had the nasdaq setting a new record high on friday.