welcome, everybody, i'm tyler mathisen seema mody will join us for the hour don't no call it a comeback. investors bet more on stimulus and a strong economic round, that in light of a fairly weak -- as binge firms drive the

later rally. later, waiting for the super bowl kickoff we'll talk sports and sports invests, about how it will be a streaming sunday this year "power lunch" starts right now welcome to "power lunch. i'm seema mody they're on pace for the best week since november, coming off a volume tim last week bob pisani has more on this turnaround bob? >> we're in the bit of a meltup. not just today, but really for the whole week the s&p 500 is up five days in a row. it hasn't done that since august first, the most important roll-out is accelerate ing of

course we have a second-half reopening. finally. most importantly, blowout earnings, that's really what moves the market here. the big stories, last week here, much quiet her gamestop may be iffy, but you see activision, blizzard, and the guidance they gave for 2021, well above estimates this is a story of two different game companies gamestop versus activision very different stories there guys, back to you.

>> as stocks do approach these report highs, what is left to guy down she's chief strategist, and ron asana is an analyst and commentator as well as a senior adviser at schroeder's are you feeling more sanguine about the direction of the -- i would say, tyler from the vaccines that are, you have to feel somewhat better about that and the quickening pace is good news as well for the biden team to infuse

more moan is all good news i'm feeling better obviously, you know, we can tackle valuation game all day long the fell committed to keeping them there. you i was struck by one note you said, the energy sector as a bit of a telltale on where the market and economy may be headed why energy i do think. >> announcer: is the place to go

58d also subject to a lot of regulation and i think your safe. i would almost use it as a contrarian position, if it can power ahead, the market is okay. i will say this. i think the higher yields do require some rotation into financials and into industrials, and industrials really have underperformed for the last few months i think some of longer duration assets could have trouble as they move higher >> what is the lesson of this reddit scenario. what can investors take away

from it intelligently and -- >> it really started with over-positioning on the short side you kind of needed that. but then, of course, you have people at home with extra sti stimulus i think the lesson i would like for retail investors, that -- very hard to commit new capital when proablers are grows you have to be nimble here wherever you're invested, those kinds of moves are dangerous, ultimately >> ron we don't see an overhiding job market, but you say that rising inflation and

rising interest rates, perhaps tied to all the money that's been pumped into the economy is something that bears watching. >> i think so, tyler suggesting that the bond mark, which was discounting 0.5% is now discounting better than 2% inflation rates. as the fed reserve suggested, some of this could be transtorrie, but you know, larry summers wrote an interesting op-ed in "the washington post" about potential over-stimulating the economy, and leading to an outcome where it accelerates to get this economy going, and get it back to full employment i just think we have to pay attention to it a little more

than we have in the past, and watch those break-evenis, and that may be the tell going forward. >> yeah, when you look at the total tonnage of stimulus already put in by the fed and the federal government, now the prospect of more, as a percentage of gdp, it's massive. we've trouble with lisa as shot, so we'll agood-bye to her, as well as ron. see you see. first we saw the app get trashed with negative reviews, and now the complaints are rolling in kate rooney looking at that side of the story he guess it's starting to get the attention of washington. >> seema, the federal trade commission saw a surge in complaints about robinhood last week as gamestop saga played out

the agency shared more than 100 between january 24th, and february 2nd that was up from just seven complaints the prior week. we read through some of the complaints against robinhood they show a widespread frustration. some talked about an inability to leave the robinhood app one user says they could deposit but not withdraw another said that their complaint was essentially sent into the void, as they call it quote, this customer said, i just want my money and i want to close my account so i can be done with this service we don't have comparable numbers yet for the other competitors. we will, of course, bring you that when we get it from the ftc, robinhood did respond, saying they're committed to improving the support. they say it's a top priority, and their hiring of customer service agents tripled last year this does speak to specify record growth we have talked about and the difficulty with keeping up with momentum

the app has more than 13 million users, by one estimate added 600,000 clients just last week seema, back to you. >> i was texting with a friend of mine who considers himself a reddit traders and seeking the counsel of his dad's lawyer to see if he can put a lawsuit together i know you're watching for data. you would think if gamestop, but it's not, right? >> not the case it shows that gamestop was not in the top ten, at least last month. that's despite grabbing the most attention online, it wasn't the reddit traders, institutional investors may have been the once drive a bigger portion plus power, which were also caught up in the trading frenzy, those two did make the top ten,

but it was big tech, facebook, microsoft, tesla, apple all making it into the top ten it does get back to robinhood. they have argued a majority of their clients are not really day traders. also some of those blue-chip names like apple back to you guys kate, i'll pick it up. it looksnice where you are. >> it's sunny, right >> we know that reddit sort of started that gamestop frenzy to crush the hedge funds, but we also know that some hedge funds cashed in as well. >> it god a little muddied this week, they were actually not big participants in gamestop

they were net sellers last tuesday through thursday, so who was the one buying much of that activity was driven by hedge funds covering their shorts and others riding the momentum higher and subsequently lower. the journal reporting realizier this week and we confirmed that one fund sunvest has been long gamestop for several mobs. bl blackrock, too, may be sitting on paper gains, some shorter-term institutional investors, whose position position positions have not been disclosed are also ted to be traversing this stock on the long assignment, but still, as we've been reporting, those short facing significant,

significant losses from the activity guys >> you know, leslie, this is to me, for the hedge funds, it's really a lesson in risk management and how exposed, as a percentage of your portfolio you are willing to be in any single issue or position, right >> risk management always comes down to statistics if you think about it, what is the percentage chance that any specific shortly go up 1,000%? i'm not a statistician, but i would say it's a very, very small, small chance if you're thinking about it from a risk management standpoint. now, we know after last week there are certainly lessons to be had about risk managed you should be. especially stocks that could be easily targeted for a squeeze. they're certainty drawing their

conclusions and lessons. and these retail traders are using, with the fact that robinhood is lifting more restrictions and you're seeing gamestop gamestop higher on the day. >> right they probably don't have the same kind of institutional guy who sits in the office whose job it is to make sure that the portfolio is up to snuff when it comes to risk management you're right, it falls to the robinhoods of the world. we saw gamestop halted a few times already today based on some of that volatility, and of course robinhood lifting the restrictions on the amount of shares that you can purchase. >> what you have here is -- i've got to wrap it, but a very unusual situation of a cr crowdsourced short squeeze have a good week end. >> you too wild moves in gamestop might

not be the only surprise that traders get this year. wait until they see their tax bill we'll explain that a bit week for bitcoin, as it edges babb towards 40,000. we're going to look what's been ow lchexone gains, nt "perun." how am i doing? some say this is my greatest challenge ever. governments in record debt; inflation rising and currencies falling. but i've seen centuries of rises and falls. i had a love affair with tulips once. lived through the crash of '29 and early dot-com hype. watched mortgages play the villain beside a true greek tragedy. and now here i am, with one companion that's been with me for millennia; hedging the risks you choose and those that choose you.

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bitcoin having a strong week, as the boom continuing last year, total inflows were $6.7 billion in the first five weeks of 2021. we've been seeing more institutional investors over the last three months. i'm wondering if the recent surge in bit counsel and other crypto cryptocurrencies, you would add that to the reddit >> obviously a lot of conversation about reddit, social trading i think tyler was talking about the first crowdsourced short squeeze. certainly what we saw in bitcoin

is not a short squeeze we really look at sentiment and sentiment really drives demand, and as you alluded to, a lot of interest in bitcoin is coming from institutions. when we look at trends on the trading side, on the structured products side, where we operate and manage $4 billion in et cetera a lot of the inflows are coming from institutions who are allocating through products or funds. there is retail participation, but nowhere near what we saw in 2017 where we are seeing the retail participation in things is like dogecoin and other smaller-cap currencies that lean towards more meme-ification, but to me it's a fundamental shift

blackrock is allocating to it, guiden haim. all of the make allocators are getting in. >> how long can this last when you have the likes of janet yellen, who just got confirmed as treasury secretary. one of first things said is there will be more regulation that the cryptocurrency industry should get ready for >> there's an alphabet soup of three-letter agency that already regulate the industry. we spend a lot of time on compliance in our organization, but look, i think what is happening is in 2020 it was a risk in 2021, it's a risk not to allocate microstrategy is soaring on the back of its allocation to

bitcoin. it's more than doubled its treasury reserves. they just hosted an event with over 1,000 corporate treasurers in attendance. we also have nation states starting to seriously look at what role bitcoin could potential play in the futures. it's not just institutions and retail it's also corporations, it's governments, the whole world, and i'm really excite d. >> i hear on you that point, blackrock and fidelity, even ebay and paypal offering more trading options, but be real with me, the dogecoin can't last, right? >> i think it's -- here's my crazy idea the most popular part of any video game is the market, and most people spend their time in

the marketplace. people are at home, learning about capital markets. a money printer was the -- and my friends are talking about short squeezes, like who knew this would be the world we live in in 2021 i think we see the same thing in cryptospace. people are concerned about the long-term viability of their savings. people are looking at what's happening to the money supply. janet yellen has expressed an intention to continue printing her way out of this crisis, so people are looking for ways to preserve that are wealth look, is dogecoin the way to do that most certainly not, in my view i think the fundamentals there are fairly flawed. but in general people are taking a bigger interest in capital markets and what it means for them in their lives. i think that's a good thing. now, there's obviously work that needs to be done around

education, but overall, i think this trend will continue >> and when you have the likes of elon musk and millions of twitter followers joining the conversation, it lends to a broader sort of narrative. we'll leave the conversation there, melton. good to have you on. >> thanks for having me, seema have a good one. >> you too still ahead, super bowl sunday is coming, if you hadn't heard. we're going to talk to the sports investor george pine about what is at stake and what makes this year's game so different? it's not that it's just in tamp ra -- tampa bay. it could make for an even wilder tax season that's next on "power lunch.

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despite the sell-off, some are still betting on gamestop. it's soaring as much as 60% today. following the reddit rally, these new traders are in for a big surprise, potential. robert frank has more.

hi, robert. >> hey, tyler, accountants and tax preparers getting news business, because they're getting their 2020 tax bills here are the most common surprises. stock held than less than a year are taxed at ordinary income tax. and the rule says, of course, you have to wait a month before the buyback, but many folks sold too early and now they're not able to use that tax loss finally lots of traders using multipal brokers unless you combined all those 1099 statements, one stock at robinhood, sold another at schwab, the actual tax bill will be higher when you net it all together one piece of advice, this could save you a lot

between now and april 15th, please elect mark-to-market for your 2021 returns. if you don't your capital losses you can deduct against your other taxes for this year is capped at only $3,000. if you elect mark-to-market, you can use the entire loss of any gains this year. gamestop is up today, but anyone who has lost money in the first month of trading, if he elect mark to market, they can use that entire loss for 2021. that could save you some money on the taxes >> let's say you lost $60,000 instead of $3,000, if you use the mark to market accounting, you can write off the entire $60,000 against other capital gains? >> that's right. against either, in the same year that's what's great about it if you don't do this, you can still use the loss, you have to

carry it out over 20 years or how long it takes. now, you have to have tax trading status, which is sort of a separate thing you have to do, a bit of bureaucracy, but given the savings, if you have a big loss in january that could save you money. you have to do it by april 15th, though >> by april 15th boy, i've been there on that $3,000 loss rule it pains me every time you have it it's happened quite a few times. robert, thank you very much. seema, over to you. ahead on "power lunch," streaming sunday, super bowl sunday is upon us. how much will the pandemic and cord cutting pay the way people watch? the jobs report coming in lower than wall street had hoped we'll hear from former new orleans mayor, all of this when "power lunch" returns.

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yankee stadium opened up today for members of the bronx new york's mayor says the city has the capacity to do many more vaccinations, but there aren't enough doses available yet meanwhile, the nfl is offering to make all of its teams' stadiums available as vaccine sites. canada has effectively blocked cruises to alaska until next year by bans cruise ships until february 2022. and jill biden has done a psa with champ and major, urging people to always wear a face covering, even when walking their dogs it will air on sunday's puppy bowl on animal planet. you are up to date, ty i'll send it back to you. >> you've told me something to watch. i didn't even know there was

such. >> it's so much fun. it's dorable countdown is on until bowl lv between the reigning champs, but there's an old one in there, tom brady. fewer fans, socially distanced pods, and many people will stream stream it. with us is george pine, the founder and ceo of bruins sports capital. nice to have you back, george. let's talk about streaming if i want to stream the game, and apparently about 3 million people did at the last bowl, don't you still have to have a subscription to some streaming service or app, whether it's hulu or youtube tv, or one of the others, to be able to stream

it and they will have had to acquire it is the rights or the rights to a cbs station, which is carrying it >> that's right. of course, that's correct, if you're watching it in the united states outside the united states you can watch it on gamepass last year 3.5 million people tuned in by streaming. i expect that number to be jump a great deal this year. >> this is directly tied to the number of people who have cut the traditional cable or satellite cord, right? they still have wi-fi by some provider, and they sign up, as i did recently, on vacation for youtube tv that has a somewhat limited number of channels, but it's got a lot i could watch all the games and in some cases more, and you can watch it in different locations. you can watch it in your car,

outside the home, so in a lot of ways, it brings the games closer to you, where you're at. so take my inside the numbers. what would a hulu have to pay to get access are they pays the nfl or cbs the rights to carry the cbs? >> cbs would be the group, because they paid an enormous feel to broadcast the game that's the way for them to retrieve their investment. cbs is the broadcaster, you have to go through cbs, but it's a good experimentation for the nfl, and the way media is being consumed is changing >> i wonder how this game between tom brady and patrick ma

homes, how that would generate more interest. i'm note the biggest football fan, but even i will be there on sunday watching this great rivalry to see who's going to win? >> a lot of things in sports are about matchups you can't have a better matchup than maybe the next greatest of all time those championship games rated quite well ratings in general have been softer in sports, not different than 2016. those championship games, they're as indicator it's probably going to be a good number of people watching on sunday last three years it's been around $100 million. for a stretch of ten years, this was about 110 to 115

to me this could be up to 115, which to me would be a strong number. >> may justify a new contract for jim nantz, by the way. i think this is a matchup between the most talented, patrick ma homes, verse one of the best competitors, tom brady. is the gambling take -- let's call it the take -- will it be up or down nobody i know is running office pools. >> it probably will be flat, maybe down a little, by the big difference this year versus other years, is there's 20 states with legalized gambling, so the winner on sunday will be the states generating revenue. god knows we all need retch in the state governments, so it's probably a good thing for state governments, probably flat overall. >> george, thanks very much. i know you have a stake in the game you're friends with the

president of the chiefs, so you're rooting for them. go chiefs! thank you. >> ty, same to you you're also in favor of the chiefs this sunday >> well, i think they probably have an edge their offense is as good as any i have ever seen bruce airance is a good coach. these are two very good coaches going head to head it's going to be fun. >> the fact that -- >> for someone who says you don't follow football, you're really good. i take your word for it. disclosure, i have a partner who is from kansas i therefore have much more knowledge on kansas than a year ago. tyler, thank you coming up in power movers, we'll explain, and hoops to

start to get back to normal. stick with us.

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time for today's power movers we're going to start with peloton. the stock down the reason increased costs to cut down delivery times wwe falling today, revenue were down 28% in the fourth quarter, as the pandemic made holding live events impossible shares down 10%. we end with magnite, an advertising company, paying for spot-x investors loving the deal, sending the stock up 22% despite the billion dollar-plus price tag. it's time for trading nation the u.s. is weighing the

possibility of a vaccine passport where passengers will have to disclose whether they have been vaccinated, this as the tsa says it will issue fines to travelers who fail to wear a mask while in transit. will the new requirements help or hurt the travel industry? we have a handful of travel earnings next week, so let's bring in craig johnson and danielle shay. danielle, what i found interesting is if you had to square up hotels versus airbnb, you would put your money with airbnb. >> i would put my money with airbnb i'm an active options trader i know the fundamentals don't make sure, but i like the chart pattern. you continue to trade in higher highs and higher lows, some consolidation on the lower time frame charts for me i'm looking for the consolidation to break out and trade up into the $220 price point. for me that looks perfect to

sell some, and also do a bullish fly, around $220 i think that right now people are using airbnb a lot more than hotels, and also a lot more than airplanes as well. so, you have a bit of macco backing, but i think the technical setup looks great. >> craig, one of the biggest competitors is expedia, vrbo is set to report next week. >> seema, if we check in on the start of expedia here, the chart looks good, higher highs, back above your 50, back above the 200-day moving average it looks like the stock still has more room to run if we look at it from an options per spect stiff, maybe you have 8%, kind of plus or minus coming up to this, and if i look back through history, you can see that, in terms of top and bottom line beats, they have obviously

has excelled well. that's one name to us that looks very good. look at the chart of mgm here's an example of a reopening trade, wanting to experience the world again. it's just now breaing on you to new highs. this stock seems very strong, and again they've gone another company that's done very well heading into earnings. >> mgm shares up 20% just this week thank you both head over to trcnbc.com ty, over to you. thanks, seema. the economy adding 49,000 jobs in january today president biden calling that recovery too slow and pushing for more stimulus. >> i know some in congress feel we have already done enough to deal with the crisis in the country. others think that things are

getting better and we can't afford to get back and do little or do nothing at all that's not what i see. i see enormous pain in this country. >> up next, much more on jobs and the economy, when "power lunch" returns after this.

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economic relief plan as the january employment report released this morning. 49,000 jobs added in january after a sharp decline in december that's the good news unemployment rate down to 6.3% what are those numbers not telling us 49,000 gains is good, but not

great. marc morial is the ceo of national urban lead league and the mayor of new orleans >> thanks for having me. >> behind those numbers are somewhat disturbing facts. number one is that we are really not even close to being back to where we were a year ago women in particular seem to be suffering. unemployment rates, as has been the case so often historically are higher for blacks and hispanics. >> so, ty, thanks for having me. i would point out that the labor force participation rate is down that accounts for much of the decline in the unemployment rate in addition to that, women seem to be leaving the work force in record numbers some 300,000 in the last month and that again has affected the unemployment rate. so the unemployment rate may not tell the whole story of where we are economically in the nation with people losing hope and

losing faith, particularly when they have been in the hospitality and leisure businesses. >> you know, i read an interesting article earlie today by neil irwin this the "new york times" in which he pointed out there really are two ways that economic pullbacks affect people. one it is a narrow focus on people in particular industry, hospitality, travel, performance arenas and the other is the broader economy. for much of last year, it seemed like the non-sort of pandemic-tied industries came back reasonably well right now we are even seeing job losses in durable goods. we are seeing job losses in the warehousing sector my question, i think, is where should stimulus be targeted? should it be tarted at those industries that have suffered the most, namely hospitality, restaurants, travel, and leisure and so forth, or should it be much broader than that

and how do you target it so that you put some recognition into the equation that the wealthiest among us probably don't need the help >> so the economy is highly interdependent one industry affects another industry because one industry may be a supplier for another industry so it's got to -- we have got to keep that in mind, the enter dependence i think the other thing is that congress passed significant stimulus bills last year and that stimulus and that ppp sort of buffed up, pumped up the economy. then in the fall, it began to run out. and the pandemic has not yet dissipated, so that the economy can come back to normal. the fastest way to, if you will, stimulate the economy is to put money in the hands of consumers. those consumers will spend that money on necessities, spend it on the things that they need, and consumer spending is two

thirds of the economy. to me, that's the important part of the stimulus, which is in checks in people's hands, enhanced unemployment, in addition to continued support for small businesses i think is a foundation of a strong and effective relief for stimulus plan >> you know, we look at inequality of wealth, inequality of income in this country. and i think you would probably agree that the federal reserve has pumped a tremendous amount of money into the economy through quantitative easing, the buying of fixed income securities and that has buoyed the markets. but the people who are in the markets, you know, the top ten percent control something like 90% of the market wealth that doesn't really help the people this the lower 50%. >> ty, once again, we see that the reality of wall street is not the reality of main street, america.

so it's always been deceptive to look at the performance of wall street and the performance of markets as a broad gauge of economic health and prosperity as i was told many times, you have got to put the jam on the lower shelf. in this instance, that means enhanced unemployment. it means enhanced snap or food stamps it means checks in people's who are working men and women so they can pay their rents, so they can take care of their children, so they can pay their mortgages. consider this -- >> right. >> if people cannot pay their mortgages, what will be the impact on financial services companies and mortgage com companies? it is a rippling effect. once again we see the interdependence of the economy the way to do stimulus is to get the jam on the lower shelf so people can survive, spend and invest in necessities.

that's the best way to get us through this pandemic. one of the important elements of getting us through this pandemic and through this economic downturn. >> all right got to leave it there, mayor -- >> go chiefs >> everybody is coming out for the chiefs today, seema. >> seriously red in kansas right now. thank you, cy tyler. check out this chart summing up this week's trading action the s&p 500 up nearly 5% that's a big move for the markets in just a week compare that to game stop's 80% drop "power lunch" will be right ck hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge,

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with a companion that powers a digital world, traded with a touch. the gold standard, so to speak ;) welcome back, everybody. lets' wrep wrap up the week. one of the best weeks since early november for stocks bradley. right now, the russell 2000 up more than 1% as the nasdaq, dow, and s&p 500 post more moderate gains. there is moment up on capitol hill for a robust stimulus package. and it looks like vaccination efforts across the country, while they are spotty are beginning to pick up some steam. >> the momentum certainly sems to be working. when you look at game stop, that saga continues once robinhood lifted restrictions you saw the stock move higher. it is up about 14%

there were two trading halts earlier today. of course the week -- the one week chart really tells you the story. down 82% the story doesn't seem to be over, ty >> yeah. it's -- we talked about it earlier. this was kind of a crowd sourced short squeeze there. we will see what the ultimate damage or wealth creation is that will be it for "power lunch" for a week. thanks for watching. great to be with you seema "closing bell" is up now thank you tyler and seema. welcome, everyone. to "closing bell." i'm sara eisen here with wilfred frost. stocks in the green again. what a rally we have seen this week stocks up every day, on track for their best week since november let's look at what's driving the action one hour left of trade an underwell ing jobs report. the labor department showing the picture looks welcome back weak. democrats moving forward in congress with a large stimulus