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tesla's recent backing as investors search for what could carry the crypto to the next big mark, maybe even 50,000 or beyond and salesforce becoming the latest company to embrace the work from anywhere mantra. it's wednesday, february 10th, 2021, and you are watching "worldwide exchange" right here on cnbc. ♪ you don't got to go to work comp title page -- work, work, work ♪ >> a song about work good morning, welcome, i'm dominic chu in for brian sullivan this morning, and here is how your money and the global markets are setting their day up stock futures looking to get back on track like we just said. you can see here the s&p up by about 13 points, 100 point gain for the dow roughly at the opening bell and the nasdaq gaining by about 65 points this thiis all after the dow and s&p snapped their six day

winning streak, dipping ever so slightly, the nasdaq sneaking out to a gain thanks to facebook, microsoft, and netflix shares, and you can see there over the course of the time period yesterday, just very marginal gains, but still the win streak is snapped. a pair of stocks to watch in the trading day ahead including twitter. those shares climbing following better than expected 4th quarter results but the company failing to meet wall street's user growth expectations and warning that figure could slow down as well twitter shares up almost 4% in the extended hours trade also watching shares of lyft fourth quarter results beating on the top and bottom lines while active writer numbers did miss expectations. signs business is recovering slightly from the virus pandemic as a result, those shares up a whopping 12% in the premarket trading. let's now go worldwide we've got shares in asia in the green as you can see there, with the shanghai jumping nearly 1 1/2%, and the hang seng and

hong kong nearly 2%. the nikkei hits a 30-year high let's see what's happening in europe right now, a mixed but muted session. the german dax, we'll call it just about flat, same with the cac in france, and the ftse up about 1/4 of 1%. to this morning's top stories, including robinhood ceo speaking out about the recent controversy surrounding his platform, frank holland has more on that in this morning's other top headlines. good morning, frank. >> hey, good morning to you, dom, in a new blog post, vlad tenev is defending the role they play in the market a crucial problem is many investors don't understand the quote unquote plumbing of how the financial markets work: the post comes after robinhood's decision to halt the purchase o the stocks at the center of the frenzy last month. huawei disputing its label as a

national security threat by the fcc last year, asking for an appeals court to review that ruling which blocked operators from accessing a fund to buy huawei products. martin despite the biden administration taking hold last month. and sales force is the latest company to embrace the permanent shift to the work from home lifestyle. the company announcing it will offer employees three different ways to work from home moving forward. that includes working remotely, and coming into the office up to three days a week. back to you. >> thank you very much for that. back to the markets now,m as we look to get back on track after a multiday winning streak. i'm joined by founder and financial adviser at new street advisers, delano, it's a snap to a win streak do you feel as though you can still be bullish given what we have seen in the markets over the course of the past week? >> hi, dom, good morning to you.

yes, i still do, and i think, you know, the markets, investors are optimistic we're seeing positive news across the board, vaccine rollouts are getting better. we're seeing optimism with getting back to normal with indoor dining, especially in new york, coming back to fruition now. there's a lot of things investors are optimistic about but the tech enabled companies and the big caps and growth companies are still performing strong, and we're still seeing that performance across the board, as you mentioned earlier in the show. >> all right so if we take a look at the way the markets are shaping up right now, so far this year and so far for the last few months, we have seen the covid recovery trade. the energy sector is going gang busters right now. fuel prices are on the rise. people are expecting people to travel more, that sort of thing. meanwhile, you've got defensive sectors, consumer staples companies, they're some of the worst performers out there does that trend continue do we see a rotation into the

idea that things get back to normal >> i think you see some of that. we were hedging when it comes to having that going back to normal play, especially with travel and leisure, but i still think the tech enabled story and some of the big growth story will still continue because that as you mentioned with salesforce, that trend, work from anywhere is still going to happen. i think you see a mix of both. you want to make sure you're well diversified in that situation. >> how exactly do you diversify yourself in this environment what are you putting on your shopping list as a financial adviser? >> that's a great question when it comes to the stay-at-home play,we're just past this pandemic we're going through, so we're in the stories that we believe are going to continue to perform well when it comes to, you know, well positioned as far as management to make sure their company is performing well past this, so you obviously mentioned some of the big firms, whether it's crm,

and firms well positioned. zoom i still believe is a company that's going to be well positioned past this you want to have exposure in other areas. you want to make sure you play in a diversified play but the etf covering those grounds. >> so then are there things right now that worry you are there things right now besides fact that the virus could flare up in certain way, that there are new variants out there. what exactly would derail things that are going right now in the market >> that's a great question i would think a couple of things i would think, one, continued speculation. you want to make sure if you're someone that's more trading and speculating, you're well positioned, covering that situation. that would be one of the bigger worries if the speculation continues. things are just, you know, not able to be really patterned out. that would be the biggest worry. there's a lot of optimism, but i think a lot of it is well

deser deserved >> there have been a lot of new trends t trends developing right now at least in the near to medium term with regard to asset classes, some financial advisers and investors would consider alternative, i think of things like cannabis, cryptocurrency, i think of the short squeeze type stocks sold volatile as of late. have you changed any of your asset allocations to clients to take any small exposure to any of these kind of emerging, if you will, type asset classes. >> great question, dom, and we have, and we're waiting for, you know, some of the institutions to allow, you know, advisers to hopefully custody that for clients, and clients are calling me and asking a lot more about cryptocurrency and that's something that a lot of people have been super interested in. there's so many trends in that area that are super interesting, and we're telling clients, yes, you should have exposure to cryptocurrency, based on research and understanding it. it's something that's going to

be volatile going forward. if your risk tolerance isn't up to par, you want to make sure your exposure is a lot lower, and you understand the assets of digital currency we want clients to be exposed, more adoption going forward, bigger institutions starting to warm up to it. that's something that we are saying a client should have exposure to. >> volatile to the up and down side delano sapporo, news street, we appreciate it. day two of former president donald trump's impeachment trial is set to get underway after democrats and trump's legal team made their opening arguments in those proceedings. tracie potts joins us from washington, d.c. with the latest there. >> hi, dom, good morning, everyone, so they'll actually start in earnest presenting the case today the house managers, the democrats go first, up to 16 hours, a couple of days to lay out what they call cold hard facts, focusing not only on the

speed that former president trump gave right before the riot on january 6th they will also argue that he spent weeks laying the groundwork for that attack this afternoon house managers began laying out their case against former president trump after starting monday's debate with an emotional video. aiming to connect mr. trump to the january 6th riot at the capitol. >> if that's not an impeachable offense, there's no such thing. >> the lead impeachment manager recalling his daughter was there that day. >> she said, dad, i don't want to come back to the capitol. >> reporter: trump's defense calling democrats overly dramatic. >> they don't need to show you movies to show the riot happened here >> but effective. >> we changed what we were going to do on account that we thought the house managers' presentation was well done. >> reporter: most republicans

backed the defense. >> president trump's attorneys made a pretty strong case for dismissal. >> reporter: one trump attorney admitted his colleague seemed disorganized. >> he hadn't planned on going. i'm sure they will be very well prepared in the future. >> reporter: in the end, six republicans agreed, it is constitutional to try a former president. >> they made a compelling argument. >> reporter: but will eleven more vote to convict >> presidents can't inflame insurrection in their final weeks and then walk away like nothing happened >> we shall stand in adjournment until noon tomorrow. >> reporter: it's an up hill battle with the trumpdefense arguing this entire trial is political. so here is what you can expect starting today at least eight hours of arguments today. that gives each side a couple of days to present their case so the defense likely to start on friday, and then senators get to

ask questions. there's some technical things that they have to deal with in the interim. we don't know if they will vote on witnesses or if there will be a request for those. dom, it's looking like this could stretch into early next week. >> nbc's tracie potts with the latest on the impeachment trial. bitcoin hitting new highs as investors weigh the next steps for the crypto's evolution we're currently trading at 47,000 per token plus, johnson & johnson ceo speaking out on his company's push for a covid vaccine what he's saying on the matter, and why you may want to think twice about that new home addition it's a big jump in lumber prices we're seeing right now. a busy hour still ahead when "worldwide eachange" returns after th is is brk.

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. welcome back to "worldwide exchange." let's get a look at some of the stock sectors, asset classes you need to keep an eye on this morning. first of all, in the previous segment with delano sapporo, remenwe mentioned emerging classes, one of them was cannabis, the ticker mj, it's up 9% the reason we want to highlight this is one of the recent themes over the course of the last few months here has been a massive surge in cannabis related investments especially publicly traded ones. this particular etf at the pandemic lows was a hair below

$9 per unit or per share, meaning at current prices we are now up roughly 225% in that time span since the pandemic lows of last year. cannabis a red hot theme right now. it probably can't maintain this kind of upward momentum. still something to watch maybe a pull back coming sometime soon. next up, check what's happening with platinum prices, we have been talking about gold. platinum, and platinum group metals like platinum and palladium have been surging as well over the course of the past couple of years, we have seen a move higher. platinum prices, by the way, if you go back all the way, it's the highest prices since about 2015 so platinum, and platinum group metals, another asset class to watch, and the digital side of things we mentioned bitcoin before. bitcoin prices did hit a record high in the last couple of days. at the pandemic lows, bitcoin prices, depending on which platform you want to look at were $4,000 per token or

thereabouts, meaning at $47,000 per token, it's been a massive move higher in those prices, but again, some concerns about whether that kind of momentum to the up side can continue without a rest for more on the rise of bitcoin, i'm joined by robert hackett, senior writer for fortune magazine the chart was staggering i'm curious about whether or not there's any kind of fundamental justification for the kinds of price movements we have been seeing is there a use case building for cryptocurrencies in general? >> there is a use case building, and the thesis that has taken hold right now is this idea that bitcoin is a sort of digital gold it's this scarce resource that governments can't mess with. right now central banks are printing lots and lots of money to counter the ill effects of the pandemic, and bitcoin, people are looking to, as something that is outside of that world that central bankers can't tamper with. >> if that is the case, what

exactly then do people look at with regard to putting a price tag on it. how much of it is out there, you mentioned the scarcity value, what's driving the pricing dynamic right now. how do people know how much they should be paying for stocks, you can use things like cash flow analysis, ways to forecast out and discount back future flows, it is not the case with cryptocurrencies. how then do you drive value for that >> there's a bit of alchemy involved, and people are still trying to figure that out to be completely honest, but there are analysts at big investment banks that have begun to put their price points on it analysts at j.p. morgan chase say they think it could be $100,000 for bitcoin this the long-term, which is a far way to go even though it may seem like bitcoin is so high already, and one thing that people are factoring in is if you look at the gold market, that is a

multitrillion dollar market, and if bitcoin can eat into that a little bit or grow in that same alternative asset space, it could justify itself at being a higher price. >> within the last three or four years, you know, even here at this network, we kind of have talked to people, business owners, those people who are crypto enthusiasts about actually using bitcoin to transact is there a possibility right now that we do see a resurgence in, say, real estate developers who will take bitcoin and payment for real estate or a bodega owner who will take bitcoin for the breakfast sandwich on the street how exactly does the use case evaluate the next round of bitcoin. >> bitcoin itself has a payment system involved but it's not very good compared to what we are used to, like the visa network being able to just sort of spend money on a credit card, that is way cheaper, faster,

simpler than the clunky system that bitcoin is. there has been a division in the cryptocurrency world where actually you've got these stable coins which are designed to maintain a fixed price, and those are actually making a lot more headway in terms of payments that being said, down the line, bitcoin, maybe it can be a better system, you know, its software, it can improve over time its technology is always progressing, and you've got people like elon musk and tesla now saying they're going to allow you to buy vehicles with b bitcoin, so they're expecting down the line it is going to be a better payment system. >> robert, can you take us through what the major differences are between the ethereum ecosystem and the bitcoin ecosystem, i have had cryptocurrency folks tell me that ethereum could be a better way to conduct certain types of businesses and transactions. take us through the main

differences there. >> that's absolutely right bitcoin, it's beginning to get this sort of reputation as a reserve asset class. it's sort of where you might want to park your money and it will store your value. now, that might seem crazy because of all the wild price swings, but hey, the markets are crazy themselves these days so bitcoin seems a lot less crazy than anything else going on, whereas ethereum, there is a ton of interesting activity going on right now, and it's kind of flying under the radar even though ethereum is hitting all time highs recently, and what's really interesting in that universe is something called decentralized finance. you've basically got these open source coding projects that are developing all of these sorts of tools, these lego building blocks that are basically reconstructing the plumbing of wall street, except without having a big bank involved instead, you are just putting it

all on software or on the block chain as people say. >> all right so a big move there, bitcoin and ether hitting prices robert hackett, appreciate it. the china chip crunch, we have a live report from beijing. february is black history month, and we are honoring some of our cnbc contributors as we head out to break here's cnbc contributor, james mcdonald with his advice for the next generation. >> the most important advice i could give the next generation of black americans is look at the success as example that's before you we've been a president of the united states. we have excelled in some of the largest financial institutions, and we have generated billions in those areas of finance that are the most complex you can do it too. go after what you want and be all that you can be.

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welcome back to "worldwide exchange," johnson & johnson and looking to get the thumbs up from the fda for its covid-19 vaccine. our own meg tirrell spoke with ceo alex gorand expressed confidence in delivering to the public. >> we remain extremely confident

that we'll meet our commitments in terms of the united states in providing 100 million doses by june of this year, and again, we're working around the clock to make that happen. >> all right health care exec tutives making news at that conference. don't forget to join us on may 11th for the next healthy returns summit register at cnbcevents.com check out that bit of information there. still ahead on the show, shares of twitter are on the rise as the tech giant warns of slower user growth ahead we're going to dive into those results and how the company can overcome its looming obstacles "worldwide exchange" is back in a moment

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bounce back, futures pointing toward a higher open this morning after stocks snap a six-day winning streak >> chip crunch, companies warning of a severe shortage of semiconducts in years. plus, why you might want to rethink plans for that new deck. the story behind the more than 100% run up in lumber prices just so far this year. it's wednesday, february 10th, 2021, and you are watching "worldwide exchange" right here on cnbc. ♪ ♪

welcome back to "worldwide exchange," i am dominic chu in for brian sullivan this morning, and here's how your money and investments are looking halfway through the 5:00 a.m. eastern time hour. as we mentioned before, stocks pointing towards a higher open with the dow implied higher by 85 points, the s&p implied higher by 12 points at the opening bell and the nasdaq higher by 61 points. one stock to watch this morning, cisco systems, those shares trading lower after the second quarter results showed continuing struggles in the top product segment, which is infrastructure platforms cisco beat on the top and bottom lines in guidance also exceeded analyst estimates, those shares down roughly 4 1/2% in the premarket. cisco's ceo will have more on the results when he joins cnbc exclusively at 9:00 a.m. eastern time we're already seeing jim cramer tweeting about it, the questions you want him to ask, everything else, chuck robyns coming up, 9:00 a.m. "squawk on the

street." frank holland is back with some of those headlines. good morning, frank. >> good morning again, dom, soft bank is making a $900 million investment in gene sequencing company pacific biosciences, the japanese conglomerate had a 6% stake in that california-based company. the buzz continuing to build around the prospects for an apple branded car. a new report filed with the california department of motor vehicles shows the tech giant more than doubled road testing of its self-driving vehicles just last year, and data on how many times a human driver had to take over, it suggests that the technology is improving. and speaking of cars, an electric vehicle start up backed by amazon and ford is reportedly looking to go public later this year bloomberg says rivian automotive, a valuation of $50 million or more. >> thank you very much, frank holland, for those headlines. we have been hearing a number of companies mentioning chip shortages there are a number of reasons

for that it's a topic we're going to dive into all day long on cnbc. we're going to start in beijing with eunice yoon you are looking on u.s. restrictions on chip sales to china, and why beijing is more determined than ever to develop its own semiconductor industry eunice. >> reporter: that's right, dom you know, beijing has had ambitious plans to grow a home grown chip industry. the u.s. clamp down in particular on huawei technologies served as a wake up call for chinese tech, and also as a stimulus to build up the entire industry which as you know is seen as a critical one to power all sorts of other types of gadgets beijing has made chips a priority in the next five-year plan, unveiled in march. the tech independence part is one of five fundamentals of the chinese economic development, and then the aim is to have 70% domestic production of chips by

2025 so that's versus 30% at the moment so china has also committed to investment and spending. they have already offered up tax breaks of 10-year exemptions and duty free imports for companies that are looking into pushing into chip technology they're encouraging listings, very aggressively. prioritizing them, especially for the shanghai market, and then for state funds state funds have been looking at new start ups and there are a lot of companies, dom, that i think are jumping in, and hearing this call. that's one of the ways that this is different from the push that we have seen in the past by the chinese government that it's only state companies that are trying to get in, it's a lot of private companies as well. >> so eunice, i'm curious because, you know, i've done some coverage over the years with regard to the super computing industry, and

technological stories with regard to that we know currently that the u.s. and china pretty much have a due oply on super computing superiority in the world they jockey back and forth who has the fastest one. is that the type of blueprint we could see in technology competition with the u.s. and china, what's happening with super computing, it's going to carry over and now it's going to happen with semiconductors as well >> i think that would be the blueprint. with semiconductors china is still very far behind. when you look at which companies are doing well or that people outside of china know about, probably the only one that most people know is snic, in memory chip technology and, in fact, it's at least four or five years behind the leader in the field, tsmc from taiwan, so you know, there are other companies, including huawei that are trying to move aggressively into more advanced types of chips, but very few have made much progress

at all to be able to complete internationally. though of course that is the hope that they would be able to sell, which they do, to a lot of the chinese companies, big market, and eventually hit global. >> eunice yoon, live from beijing with the next frontier in technology battles between the u.s. and china that is semiconductors, thank you very much for that. hardware to software, twitter's fourth quarter earnings and sales beating forecast as ad revenues jump 30%, user growth jumped 27%. that's shy the estimates the company warns the rate will slow as a boost from the pandemic fizzles out a bit twitter says it gained more daily users in january it folly doesn't give out that type of guidance but says it made an exception due to unusual circumstances. this is of course referring to the ban of former president donald trump from the twitter platform: on the earnings call, ceo jack dorsey saying quote we are a platform that is obviously much larger than any one topic or any one account

for more insights let's bring in richard cramer, managing partner and senior analyst the results from twitter, yes, maybe were disappointing in some regards. there's a reason why the shares have been so high as of late take us through what investors are trying to pile into with regard to the twitter story. >> well, i think the first point to make is that twitter is clearly losing market share in what's a buoyant digital ad market they can point to 31% growth but actually snap and pins added more in absolute revenue and had far faster growth rates this last quarter, and indeed, facebook added $7 billion of sales, which is twice twitter's annual sales base in a single quarter. and then as you noted, the user growth is slowing, so it implies that twitter has to find a different business model and that's where you have all of this what i call magical thinking around subscriptions,

the idea that they are going to just leap into the subscription market and find a huge conversion ratio among their hundred to 200 million monetizable daily activity users. >> richard, we're talking about charts that show a 60 some percent gain in twitter stock over the course of the past 12 month. what exactly are investors missing. you're saying there's a more tepid and bearish case to be made for twitter, yet the stock keeps going up to the tune of 61% this the last 12 months. what exactly do you think investors are getting wrong or perhaps you're getting wrong about that particular story? >> well, i think if you look at the wider tech market, it's clear that you have had multiple, multiple instances of companies that have been materially re-rated on sales estimates that were materially lower than they were at the start of the year, and indeed for the out year is much lower

you have had a huge inflation in tech valuations across the board. in this rmespect, you have to look at twitter's performance, against snap, others, who are performing much better if you look at the relative market share of investor dollars or performance, twitter hasn't out performed in thatmen rmespet there has been a huge amount of hype around the subscription business very few people thought through the implications of making that move and what it does for the user base, since clearly not everyone will subscribe, and indeed, a company that has a poor track record of managing it own technology road map is now tasked with a huge number of things they're rolling out in 2021 before they've even made a formal announcement about subscriptions. >> so richard, ceo jack dorsey addressed directly during their earnings call. the fact that donald trump, the president of the united states,

prior to joe biden has been kicked off the platform, taking millions of users along with him, does twitter recover from that is it a better platform now because they don't have donald trump on there as part of the ecosystem in. >> the other thing that jack dorsey mentioned, probably inadvertently on the conference call was twitter simply cannot do its own content moderation, which is why they have come up with a system to have crowd sourced content moderation the simple point about twitter is it is a cesspool of abuse and vitriol, and even taking out president trump and his supporters from that platform won't change that fact because you have anonymous log-ins, you have bot traffic, and you just have what in many reports would call toxic twitter, which means it's not necessarily a brand safe platform for a lot of traditional advertisers. the other problem you have with twitter relative to the other digital ad companies i mentioned is it just doesn't capture a large degree of time spent

people glance at twitter but they don't spend the kind of time and engagement they do with the other platforms. >> richard kramer, thank you very much for sharing your thoughts this morning, we appreciate it. twitter ceo ned segal will be on twitter, a must watch interview, 8:45 a.m. or thereabouts eastern time, so tune into "squawk box" for that coverage coming up on the show, we have big plans for home renovation. if you do this spring, you might want to check out what's happening with lumber prices: talk about sticker shock, the story behind that spike, and what this could mean for the broader economy, especially the ayusing one. st tuned, you're watching "worldwide exchange" on cnbc 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.

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is skincare from around the world better than olay? olay regenerist faced 131 premium products, from 12 countries, over 10 years. olay's hydration was unbeaten every time. face anything. find out more at olay.com welcome back to "worldwide exchange," we often talk about commodities like oil and gold and platinum, but have you which he could out what's happening with lumber prices lately. diana olick has, and she's joining us with eye popping numbers. it's staggering what the cost of inputs is especially lumber for home builders across the country right now. >> it really is. they are headed right back through the roof closing around 113% year over year, up 10% in the last week. and matching the 52-week high.

experts are telling us it could plow through by the end of the week what's doing it? three major factors. first, increased demand for single family housing has been much stronger than expected and that has the builders busy single family housing starts up 30% year over year in december according to the u.s. census second, remodeling, the pandemic has everyone at home, and all that money we used to spend on going out and traveling we're now spending on expanding and improving our indoor and outdoor spaces several indicators of builder sentiment and expectations for remodeling this year are high and gaining. and finally, rock bottom interest rates they're encouraging new home construction and fueling demand to buy new homes, and i want to throw in one other factor mentioned to me by domain timber advisers, durable goods are continuing to increase as individuals are buying large appliances and furniture this is all helping juice lumber prices because a lot of items are shipped on wooden pallets. what does all of this mean for

the housing market the nahb says the spike in lumber prices last year, added over $16,000 to the cost of a newly built home for consumers builder confidence in january fell with the spike in lumber prices cited as the biggest negative that they now face, dom. >> so diana, i mean, given these higher prices now for new construction projects, do you expect that buyers will be pulling back and sticking to more existing homes because of that because of the surge in lumber prices because it costs just so much more to build a new house >>. >> you know, they might want to because the price premium for a newly built home is large as it is, as it stands, but the problem on the existing side is prices are overheated there and a lot of people are looking at this very hot market and saying do i want to buy an existing home at the top of the market, and there's little supply on the existing side. buyers are looking at new construction a lot more because

they want those amenities, they want the high-tech they want new construction because they don't have to fix it up, and that's a cost savings there, so i don't actually think they're going to pull away from the new home market if they can afford it, and that's the question, only if they can. >> it's a supply issue as well anecdotally, diana, i have been getting postcards, asking you if you want to sell your home by real estate brokers out there. thank you very much for that story on lumber prices, a doubling more so in the last year for those prices. no national anthem, a pancake name change, and french lunches, frank holland is here with more on today's top trending stories frank. >> good morning. i didn't know you parlay view. mark cuban said he told the dallas mavericks not to play the national anthem for home games the anthem has not been played before any of the mavericks gaps

t games this season. they are allowing a limited crowd in the stands. pepsi coe and quaker outs rebranding their aunt jemima company to pearl milling, becoming the iconic self-raising pancake mix and employees in france will be allowed to eat at their desks in work. currently the french labor corp. prohibits them from areas dedicated to work. the labor minister will be making the changes as part of new covid restrictions as employees return to the office it could signal a change one french woman telling "the new york times" the amendment is quote a catastrophe. you sit in the vip section of cnbc, i don't know where you eat, but i sit up stairs me and picker another at our desks all the time i didn't know there were countries where you couldn't do

that. >> i think it's all relative the upstairs area seems to be the more exclusive one, you guys kind of hang out the reason why viewers, listeners, if you're wondering what frank is talking about, we have a socially distanced office but many of us for ages have been eating at our desks and it's a big thing for americans in general i'm not sure about france, why they took so long to do that. >> interesting development there. and of course the change in the pancake mix name, obviously a lot of backlash as we said in the story, and just the image itself outdated but i think it is still a popular product we'll have to see how consumers respond about a name change. >> it's one of my daughter's favorite things about breakfast, aunt jemima syrup. don't change mrs. butterworth. >> frank holland, thank you very much for that. still on deck for the show, stocks trading near record highs. we'll get you ready for the day ahead. if you have not done so. subscribe, please, to our new

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welcome back to "worldwide exchange," stocks looking to resume their winning streak after the dow, s&p as well did take a pause on gains yesterday, and your next guest says more gains may still be ahead he's keith learner, chief market strategist at truist sun trust advisory services. thank you very much for joining us here. are you scared is it a bubble right now are value raations so scary abo what's ahead >> no, we're not scared. we definitely see some pockets, some areas of the market are detached from fundamentals, no question, but overall from a broader standpoint, we do not see a bubble

in fact, i think what's really not discussed enough is the valuations for the s&p 500, they're elevated but they peaked back in june of last year. they have been moving sideways since then the 25% gain we have seen since june have been earnings driven and we continue to think that the earnings side of this market remains under appreciated. on the other side of this pandemic, companies are coming out leaner, meaner than ever, and we actually saw 2020 end with cash flow margins at a record level, which is just ama amazing. >> keith why is it on social media, twitter feeds, i see so many people talking about the fact that markets are overly inflated, there's bubbles everywhere, this is froth, this will all end badly what is it that they are saying, why do people say valuations are so elevated if you're putting things in historical perspective saying maybe they're not >> i think by any historical measure, valuations are elevated i would say for the broader

market, the s&p 500 specifically, i think you can justify somewhat higher valuations based on low interest rates but also the change in sector composition is a lot more towards tech and growth, relative to history as well. you have easier access to the market, cheaper access as well on a forward basis, as we look forward, the reason valuations look more elevated than we think they are is because earnings continue to move forward, and we think earnings will continue to snap back stronger than the consensus, and we're already seeing this earnings season is epic, really at the end of last year in december, for the fourth quarter, analysts were expecting a negative 12% earnings quarter. currently we're actually now positive, so think about that, the fourth quarter that we just ended will now be above earnings from the year before, which was the last period before the pandemic >> how much of that, keith, is really revenue growth, as

opposed to effective cost management, because some say that there's a difference, a notable one between driving earnings growth because the business is getting better as opposed to driving earnings growth because you're slashing jobs or cutting costs everywhere >> well, it's both, and what's interesting in this earnings reporting season, the revenue beat rate is about 78%, which is on track for a record. so it's companies becoming leaner and meaner but also the sales side, and if you think about it, there's a high correlation between economic growth and sales revenue we think economic growth in the u.s. this year will be the strongest since 1984 so think about that, more sales coming through with those better gdp numbers flowing through the bottom line. i want to take a step back we're positive on the market, but we certainly think we're moving to the next phase of the bull market after that initial snap back, which means much more moderate gains, some choppy waters, similar to what we saw in 2004, coming out of that

bottom, and 2010 as well we think it's going to be another solid year for the equity market, and we are already on a good pace for that. >> what type of company sector industries are the ones that do better in the next leg of the bull market, the choppy type one you may be referring to after we saw the bounce off the lows, is it still big cap tech, is it energy that's been the theme for the last few months now. >> you know, big cap tech is held in there really well. i think on the margin where we see more value is something like the financialsm financials are trading at a 40% discount the yield curve at the steepest level in over a year, so i think financials is a good spot, specifically the regionals, and we also still like some of the global industrials and also the materials, which should benefit from a continuation of the global gdp recovery. what's also notable in the u.s., we continue to see gdp estimates revise higher, unlike what we're

seeing in other parts of the globe like europe for example. >> have you had to change your investing strategy type methodology, tracking methodology for things like cannabis stocks, for things like cryptocurrencies listen, those are areas that are more speculative we're looking at areas where the fundamentals are, and earnings strength, that's where we're more focused with our investment strategy. >> before we let you go, what's the thing that scarce you the most about what's happening with the market right now >> at some point this year, it could be where we have all of this fiscal stimulus, and more fiscal stimulus coming through that things can overheat i don't think that's a this month concern but i suspect later in the year as the economic numbers start to accelerate, the market will start to think about, okay, when is the fed going to start pulling back, and that will inject some volatility into the market not a today story but something to think about as we move later into the year. >> keith lerner, truist sun

trust advisory >> great to be here. thank you. you can see the markets are going to take an up tick at the opening bell, the dow implied higher at 100 points, s&p 12, the nasdaq, 60 points. "squawk box" picks up the market coverage next. oh, you think this is just a community center? no. it's way more than that. cause when you hook our community up with the internet... boom! look at ariana, crushing virtual class. jamol, chasing that college dream. michael, doing something crazy. this is the place where we can show the world what we can do.

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well, good morning, futures pointing to a higher open, strange to try to get to triple digits not quite there yet. we'll get you ready for a busy day of earnings, economic data, fed speak, and a packed washington agenda. twitter shares finally now on the rise but the company raising a warning flag for the coming quarters, details straight ahead. lyft, shares are soaring after the company said it may become profitable sooner than expected, wednesday, february

10th, 2021, and "squawk box" begins right now good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin, and we've been watching the u.s. equity futures this morning. yesterday you saw the dow and the s&p 500 close down ever so slightly, and i mean ever so slightly, for the dow it wasn't even a tenth of a% for the s&p, it wasn't a tenth of of s&p 500 indicated up by 13 points, dow futures close to 100 points, and the nasdaq indicated up by 62 let's look at what's been happening with the treasury market it looks like the ten-year note is yieldin