welcome to "power lunch. contessa brewer will be with us. stocks you are surging we're at the highs of the session. the market shrugging off rising interest rates we'll tell you what is driving this comeback to stocks today. buying up the cryptocurrency sit. could the bank stocks be the next to dive into the cryptocrazy. later, a toy turnaround. and a strong consumer thank to more stimulus checks we will talk to the ceo of mattel, as "power lunch" starts right now.

the dow hit a record, even as the ten-year yield -- that's raising questions about stretch valuations let's bring in bob pisani for more hello, bob >> hello what's happened midday is tech stocks are joining a rally that largely was reflation stocks to right now take a look at the sectors that are moving your banks and materials that's what's giving you a big oomph in the middle of the day a bit of paw in the last two weeks, your big days, micron, nvidia, texas instruments, are doing okay, but they're being joined by salesforce adobes.

you can feel apple kind of wants to go positive they're still in the mix the opening stocks are also doing well the traveled stocks are doing well marriotts at a new high. that's dos well. the one thing i would point out. the reason they're down is they're getting very worried about the enormous comps that these companies will be facing in the first, second and third quarters, but it's a very brought radially, and tyler, one day we're going to see technology is going to be a leadership again not today, but it's getting there. >> robert, thank you very much

also taking -- things lie bogey and chevron, as value outperforms growth in tech, what does it mean for the market? and kathy entwistle. charles, do you think this is a trend that has legs and will continue >> absolutely. it beat the s&p 500 by more than 15%. this year, the 2000 values beating the s&p again by about 15%. and the reason it's doing it is because large-cap tech was so overpriced

whether interest rates go up, value by definition is making money in the next couple years >> so that's really an interesting point, charlie it's the idea of why are tech stocks so prone to have trouble when interest rates are rising you point out because their cash flows are on long-term play. when you discount them, they're worth less, right? >> right anden companies have durations that are more than 30 years out, which means the average period of time that you have to wait is more than 30 years so an increase of 1% in a discount rate will have a very

bit impact, frankly something like 15% per 1% increase in interest rates do do you agree with charlie's analysis >> i great with it so this is not unexpected and a way we've been looking to position clients' portfolios in the last three to six months if there are some that can outperform, where might they be? >> yeah, absolutely. a lot of the tech companies that have, you know, the work from home, we have looked at the ones

that utilized digital transformation, you know, ten year of this problem has compressed into six months i week more selective versus just going for overall indices can a rising stock market persist with rising interest rates? that's number one. number two, if the fed says we're going to keep interest rates down, down, down, can they really mostly what they control you are very, very shortest interest rates. the market controls the others >> thank you, tyler, for saying that

i 100% agree with the second part of that the fed can keep the fed funds rate down, but history has shown that governments, which often have an interesting in keeping long-term interest rates down, can't in the face of inflation if we get the upturn in inflation i think we'll see starting pretty soon here, i don't think we'll be able to keep longer-term rates down. i think they're going to start to see a 2%, certainly 2.5% cpi. in that environment, that will be a headwind for all stocks, but much bigger headwind for growth than value. >> charlie, kathy, thank you very much. >> thank you. >> thank, tyler. for more on the rising rates, let's get to rick santelli hello. >> hello indeed. we are looking at a type of exuberance that's showing up in

treasury rates, because we're potentially closer to the other side of covid. we had a time-year auction day look at this five-year chart of march, been are see on this next chart, 10s minus 2s, all the way up to a four-year high they could ramp up that 80 billion if they want rates lower. real quickly, our highs -- you really want to watch, by the way

the phet is one of the dovish. dovish, dovish. >> that was when stocks turned around coming up, as rates rise, you would expect that, and one top analyst for the banks, later, fda set johnson & johnson's vaccine is safe and 66% effective. details on how that new vaccine could get emergency use approval more "power lunch" after this.

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price of so do the shares. contessa >> with tech companies adapting quickly, the pressure is building on wall street to get into the bitcoin games s erica najarian and her team have been asking bank being cryo what are you finding out >> not many of the banks have the prerequisite technology to have cryptocurrenciy technology. out of the entire banks that are under our yearage, only 21% had

actual blockchain technology will have in use, that's about 40% of large-cap banks rather >> is there a strategy for getting in >> we had two answers about their willingness to adopt technology it was expensive to building the infrastructure, which makes sense. you said that four banks are further along.

we think those banks are farther ahead, and i would throw in city growth when we had those conversations with them, they already had robust examples for how they were thinking. for example, trade seattlements. s. >> we heard from the fed chairman jay powell talking about digital dollars, and that project will be top priority how would that -- do you have a perspective on how that might influence the strategy

>> having digital fiat currency is totally different if the fed does adopt digital currency that would allow for realtime statements. i think it's interesting to know that in july of last year, the occ, one of the big three regulators essentially called cuss tollia services as a modern form so actually cryptocurrency within a blockchain, i think they're waiting for acceptance or guide agfrom really moving forward. >> it seems to me an awful lot

of currency is already digital impulses moving across networks. am i wrong about that? >> so that's a great question, tyler. the way we're transferring fiat currency is very different from a blockchain it's essentially a because everybody in that chain has a record of those transactions, right? if i think about the application of it in the most vanilla form, where you have multiple counterparties, for example, there's no need for the 13 to have back-office confesses and

different types of ledgers that exist in 13 different things so i think the conversation between p. you know i think those are two different discussions. >> thank you for joining us and sharing a bit of what you learned -- thank you for having me dogecoin jumping about 8:00 a.m. because, you guessed it, elon tweeted about it when asked in a reply why he loves doge so much, he said i love dogs and memes, and really, tyler, who doesn't

i guess i wonder, so many people who are putting so much of their reserves into bitcoin a digital currency world $58,000 sunday night, $48now, and whatever it's worth now, that is a really volatile use of a company's capital. >> it is, but as the folks from square are pointing out, if it's 5 pushes, and that's money you're willing to risk and lose, the potential up side is significant.

>> it's the secret of the gambler,know when to walk away stocks making a big comeback, the dow up 400 points. it was -- yes, it is we'll have more on this market surge today, and still ahead, johnson & johnson could be the first company to get emergency use approval for a single-shot covid vaccine as soon as this week weavthe tas teth he osdeilafr is quick break.

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a. johnson & johnson is just days away from expected emergency use authorization, and if and whether that happens, it seems ready to roll out the doses, and meg tirrell has the details. hi, meg. >> that is a key step to the procedures for getting this onto the market

those documents came out reiterating the evocation. we saw in the clinical trials strong across different legions of the globe no hospitalizations or deaths seen in the trial on people, so four weeks in that strong protection if all goes well, the fda could authorize this vaccine all kinds of facets, and other recommendations about the vaccine. we learned today from the white house, they expect to have three 3 to 4 million doses ready to go next week if it gets the green light, ramping up to 20 million doses by the end of march. here's jeff zients from the white house covid response team.

>> obviously the project of a potential -- is very encouraging, and will help to increase the overall vaccine supply, which will allow more americans getting vaccinated sooner i think what you will hear from our doctors and from president biden, is as soon as it is your turn to get a vaccine, get vaccinated. so by the end of jut, that's more, you know, people than we actually have in this country, so vaccine supply will ramp up zients is maybe signaling there he understands people might have preferences, but the message is going to be get the first

vaccine you absolutely can guys >> i go the my first shot a week ago. i was really struck, meg, by how carefully written some of the disclaimer noise were. they were very clear this is not an approved drug they don't know the long-term side effects they don't what the efficacy ultimately is. on the johnson & johnson medication, do we know more about how well it performs over the long term? how well it performs in protecting against spread of the disease? >> there are some tantalizing clues in the fda documents, suggesting there may be signs

reporting in the right direction there. >> thank you very much. >> by the way, tyler, one of those -- one of the reasons why they companies may not mandate their employees get a vaccine is because they have been approved under emergency use authorization, which means if there's any dire effects on the employees, the employers could run the risk of being sued over it they may not want to mandate it the way they do a flu shot in the hospital until they go through the normal standard of the clinical trials, that this might be a while before employers really want to run that risk. all right. meg, thank you for that. >> all right away we go contessa >> you know, this one-second

delay is just killing us ahead on "power lunch," it's barbie world and we're just living it in why the 60-year-old brand is helping to revitalize mattel we'll talk to the ceo next ♪ technology enables the power industry to integrate renewable energy sources to modernize and improve the electric grid. emerson. consider it solved. turn on my tv and boom, and improve it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪♪ some say this is my greatest challenge ever.

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welcome back i'm rahel sol solomon. as today's white house covid briefs, dr. anthony fauci cited what he called an alarming study, indicating that symptoms from even mild cases can cause problems for a long time. >> approximately 30% of the patients enrolled at the university of washington reported persistent symptoms for as long as nine months after illness. fatigue was the most common reported symptoms and persistent symptoms were reported by one third of outpatients with mild disease. >> and the new cdc study talks about wearing a mask at the gym.

in chicago, covid developed in two thirds of people attending one fitness class in one week. on the one hand, yes, wear your mask to the gym. on the other hand i use it as a reason to go a little slower on my sprint. you have to find the silver lining. >> any excuse is welcome thank you very much. shall we look at the market? the dow jones industrial averages are up more, in report, s&p is 1% higher nasdaq coming back, but russell 2000, those smaller stocks have been hustling right along, russell doing the hustle with energy surges, the oil market is closing for the day. frank holland has the numbers.

frank? >> oil prices are moving higher again today. u.s. production fell by more than 1 million barrels a day, that dropped as the largest weekly fall in history, but in the weeks ahead, worries are report that opec-plus will discuss easing its supply curbs. the move in oil is helping the energy sector, now up more than 25% this month today's gainers include occidental, marathon oil and halliburton. back to you. >> thank you, frank. mattel is not toying around. the company holding a virtual analyst day in the midst of a brand revamp a reported solid earnings even amid the pandemic or maybe especially because of the pandemic, and the biggest boost

from legacy brand barbie let's get over to julia boorstin, who is joined by mattel's ceo >> thank you, contessa thank you so much for joining us today on the heels of your big analyst day presentation this morning. ives working on a turnaround from mattel for many years tell us about how you're making mattel as much as entertainment company as it is about producing toys >> first, will et me start by saying our strategy is showing strong results and we're starting to unlock the true value of mattel. over the last three years we've made significant progress, and we're now evolving or strategy we gave guidance for the next two years after that, and we expect accelerate sales growth

and market share globally. the mattel playbook is working, as you can clearly see our product is resonating with consumers in levels we have not seen in years. as produces as we are, we're even more excited about the future, this is all part of a multiyear strategy, that is tracking very well, which puts you in a very strong position in 2021 and beyond. our idea is key to that strategy. >> ynon, you have dozens of shows on development, movies in development, the barbie movies you're making, shows out of the uno card game, but at the same time there's obviously recognizable brands that have value. do you see mattel ultimately creating more about licensing your brands to make contact?

>> we own one of the strongest catalog of children and family entertainment franchises in the world. the opportunity were pursuing is incremental to what we can do with our toy business. there's tremendous value we can capture, and this is well under way. in addition, in the mid to long term, we have the opportunity to expand to highly critical business verticals that are adjacent to the toy industry and capture toy values in thundershower areas. think of film, television, consumer product and merchandise. advice i don't games, live events, music, anything that is driven by big brands, big known ideas that have built-in fan base this is where we have the opportunity to participate and

create success. >> it seems like there's an opportunity to grow the direct-to-consumers -- tell us about the opportunity to go more direction to consumer rather than many of the web sites that sell your product. >> that's right, we grew it significantly, as you mentioned. now more than a third of our global retail sales, but a direct-to-consumer opportunity is yet another engine of growth for the company. with american bureau we reached almost $200 million in direct retail sales this would be at the forefront of our strategy. in addition we are -- which is more curated, collectible, high-end product that's complimenting what we do with american girl. this is really the start of our strategy, to reach consumers directly with our own retail sales as a complementary strategy that sell our product

today in more than 470,000 doors globally ynon, you have a particular insight into the health of the american consumer, not just through your products, but you have global games and all these different things how do you anticipate consumer trends changing? on the one hand you have the opportunity to spend things -- and a lot of consumers are tr strapped for cash. >> in our business we see continued growth the toy industry as a whole grew last year significantly, and continues to demonstrate its resilience even if challenging economic times the industry is proving to be a strategic category for retailers, as parents continue to prioritize spend on their children and look for high quality products and trusted brands at affordable price

points in our universe, the mattel growth outpaced the industry, and we grew ahead of the industry, and continue to focus on what we do best, which is connect with consumers, off a high-quality product, leveraging our brands that resonate really well, and we continue to focus on growing our business, our sales, and continuing to improve profitability. >> well, yn:n, we have to leave it there, but your stock is up nearly 2% today, and up about 200% off the lows over the past years. thank you so much for joining us. >> >> thank you. and thank you, julia as well we have breaking news with issues happening with one of the federal reserve systems. steve liesman has the tee dales. >> the federal reserve saying an operational error brought down its entire payment system.

it says an operational error resulted in disruption of service in several business lines. we are communicating with ought customers about the status of operations a fed spokesman said they're instead in the process of restoring. it impacted fed accounting services, including retail cash and the fed wire, where banking transfer money electronically between themselves unclear what the overall impact has been, but it did not appear to suggest there were systemic concerns, especially since they believe the system is currently being restored the fed acknowledging that payment deadlines are impacted, and will communicate remade -- remediation efforts.

>> the natural question here, steve, is there is no evidence it was an outside hack, et fed apparently going out of its way to say it was an internal error, an operational error, which sounds like somebody got fat fingers. >> tile her, i think you're absolutely correct to note the comments by the fed is they are not suggesting this is an outside problem, this is a problem that originated inside the fed. it looks to be something connected with the richmond fed. >> all right steve, thank you very much steve liesman. the dow right now up about 400 points, gaining throughout the session and busting through old highs. disney is one of the stocks helping, hitting a new high every day this week so far check out the round hills sports betting etf, casinos making big bets on online sports gambling more and more states coming on

d.ar march madness just a few weeks away can't wait "power lunch" will be right back ♪♪ dad, i'm scared. ♪♪ it's only human to care for those we love. and also help light their way. ♪♪ it's why last year chevron invested billions of dollars to bring affordable, reliable, ever cleaner energy to america. ♪♪

we should get some good commentary on sports betting and march madness when a batch of casino and gaming companies report earnings. churchill downs after the bell today. caesars tomorrow, draftkings friday, bally's on friday. look at the performance of these stocks, i mean, like at that caesars up more than 1500% now caesars is close to closing a deal with sports book giants william hill is sold the bally's brand to twin rivers, and it's expanding the sports betting -- and the twin platform as well. you could see, the speculation is, march madness may clear $500

in wagers this year. big business, this sports betting. over to seema mody -- go ahead, tyler. how many of these sports books is there really room for in the united states? or is there inevitably going to be a consolidation >> inevitably. what you are seeing now is like a wild gold rush, everybody is rushing for those hills, trying to stake their claim they have their elbows out, but they're also starting to look around william hill was already operating, but for some of the seaters competitors as well. especially because the research shows -- there's some analysis that shows if sports betting we are legal in every state in the nation, you could see it be a

$15 billion business right now, you know, that's a ways off is there room for 10, 15, 20 sports betting companies unlikely. >> yeah. >> now let's get to seema mody for trading nation. >> the reopening trade continuing to work with disney hitting a report high for a third day in a crowd. steve, i guess do you think it's just gone too high, given the challenges it's facing with its theme parks and cruise lines >> it's interest it's a bit of both it's provided the company with some stability, and now you get

into this reopening phase. these are all tistsds we expect over the next year or so people will get back to it's a perfect example where they're coming out more productive i think there's a lot of stories like that across the market. >> bernstein points out that they're vowing even though disney plus has one third of the scribers as disney. >> i think the growth is strong. four-year subscriber base, proje projections, so i think that's something that plays into the fact there they also had some contact coming up. the new "star wars" series is coming in may. they also have some marvel

series in june that's something they're valuing, looking at disney >> thank you both. marriott, booking, all hitting fresh records today. tyler and contessa, back to you. other knitted sweaters jane wells is in maine with the story of some people who picked up farming as a hobby. jane >> reporter: yes, green acres is the place to be, and as americans are going back to the land during covid, investors like what they see that when we come back >> announcer: and now the latest from tradingnation.cnbc.com, and a word from our sponsor.

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shares of deere are higher today after the company raised its quarterly dividend to 90 cents from 76 and the stock up more than 200% from the march low and agco hitting an all time high as hobby farming has become a thing leading to increase in the purchase of small tractors jane wells is on the farm in maine. hi, jane >> reporter: and on the snow hey, tyler yeah, as people are moving out of the cities and into the woods so to speak for covid they are discovering gardening and farming andsales of smaller tractors are the fastest growing segment. out here in the woods in maine nick pinfield a banker has decided he has to have one >> this tree has some dead wood and this is probably from a deer eating it. >> reporter: he has relocated to his home, his weekend vacation

home in harbor side, maine, where he is now working from home and he discovered 28 wild apple trees. he is nurturing them back to health, planting new ones, starting with a deere mower and now wants to spend 25 grand on a tractor. >> i will say that once you plant a tree it is very addictive. you start to get the hang of it and hopefully get some good fruit from it. there we go. >> reporter: all right this is the new ceo of agco which has the massey ferguson line and while overall small tractor sales in north america were up 21% last year for abaco they are up 31%. they've had to scramble to reconfigure supply lines. >> we've got factories all around the world, supply chain all around the world, and we need to optimize that for the spike up in demand we feel really good about our positioning there, too >> reporter: now, as mentioned, agco stock hit an all time high today. on top of this, guys, for actual

real farmers, high corn and soybean prices are making them flush with cash and equipment makers are hopeful they'll go on a spending spree contessa >> it's remarkable my brother bought a small tractor in the woods in washington state and i can never get hold of him because he is out on the tractor the whole time you have to wonder what happens after the pandemic is over jane, looking good out there in maine. appreciate that. >> you bet let's look at the dow. you have it up almost 400 points now, up 1.23%. the s&p is following suit up a percent as well. and, boy, that russell 2000 as tyler said earlier, the russell on a hustle. ghba baknde quickre a b rit ck a on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

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i knew about the tremors. but when i started seeing things, i didn't know what was happening. so i kept it in. he started believing things that weren't true. i knew something was wrong, but i didn't say a word. during the course of their disease around 50% of people with parkinson's may experience hallucinations or delusions. but now, doctors are prescribing nuplazid. the only fda approved medicine proven to significantly reduce hallucinations and delusions related to parkinson's. don't take nuplazid if you are allergic to its ingredients. nuplazid can increase the risk of death in elderly people with dementia related psychosis. and is not for treating symptoms unrelated to parkinson's disease. nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms

or take other drugs that are known to cause changes in heart rhythm. tell your doctor about any changes in medicines you're taking. the most common side effects are swelling of the arms and legs and confusion. we spoke up and it made all the difference. ask your healthcare provider about nuplazid. welcome back stocks are near the highs of the session the dow up nearly 400 points was above it earlier after starting the day in the red. joining us for more on what is driving this big comeback is steve grasso i guess we can understand why energy is up and why financials are higher how much longer can stocks keep going up as interest rates go up >> let me tell you we had a 1.94% ten year before back in november, 2019 i don't think that is the issue. it is how high can value go?

the way i'm playing it, and then ge has been a long term holding of mine as well. now you flip over to the growth side look at the spacs. wpf. bft. stpk grossly under valued they've been thrown outbaby with the bath water. it is not doing it justice look for the spacs that have great management teams and companies with earnings and a future in front of them. don't throw them out just because they're spacs. i'm still playing it with value. look at the names. they've more than doubled and i think they'll do again >> we were talking about it earlier and charlie says the same thing that value is going to be the big trend this year. we have about 30 seconds final thought. >> we've had growth outperform the last 15 to 20 years and now we are looking at value out performing for the last five months people are asking how long can

it go? it can go a heck of a lot longer people are only talking about growth because it is the only names they know. they're going to start understanding it the more names they know in value stay with value. >> great to see you. happy new year i guess it is never too late to see it we appreciate it contessa great to be with you. thanks for watching "power lunch. "the closing bell" starts right now. >> thank you, tyler and contessa and welcome everyone to closing bell i'm sara eisen with wilfred frost as always. stocks higher and value is out performing growth again but everything is working today. dow is up around 400 points. let's look at what's driving the action right now yields putting pressure on big growth stocks again. we have seen a rally since the open, near session highs as we speak. nasdaq up a little more than 0.5% johnson & johnson moving closer to emergency authorization of the vaccine candidate. that is part of the story helping reopening plays and cyclical groups like energy names, industrials, travel