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 stock, boeing is up 7%

while mortgage applications did plummet we did see a big jump in new home sales as the housing market remains red hot bitcoin is back near 50 k. tesla is up more than 4% and small caps out performing up 2%. 59 minutes left of trade >> very strong performance 2% as you said nearly 2% as well for some of the value sectors. on today's show pot stocks higher they've cooled off since the reddit fueled rally earlier this month and we'll discuss the outlook with two major players the ceos of aphria and tilray plus george kurtz striking a blow during the solar wind hearing on capitol hill. he'll join us to discuss the security lapse and who is to blame. president biden is expected to sign an executive order surrounding chip supply chains we'll speak to analysts who say there may not be much the government can do to address the shortage in the short term at least.

joining us to talk about the wild moves in ev stocks this week is tim higgins from "the wall street journal. mike santoli, let's start with you and the broader markets. very strong rally basically since 10:15 a.m. yesterday >> pretty good follow through today to yesterday's upside reversal we kind of popped back into this long term up turn. you can't really see very well yesterday's intraday drop and recovery as well on here but it looks very much like what happened in late january back then s&p had the air pocket and backed down to previous round number levels in that case 3 3700 similar here went back down about 3800. recovered. now all of that looks like it is very lock step and like a clock work thing it might continue to be but i do think it tells you that there is still a little bit of risk of some friction in this transition, this realignment of the market we have in the direction of value look at some of the sub sectors what has and has not been working as well. so this is financials and

transportation on the upside you see those guys have continued to go up in the past few days here you have some of the growth leadership cloud stocks and software. that is the kind of scissor move you see right here i think one of the issues we might be coming up on is things like financials and industrials starting to look short term and very over bought looking like a buying panic. look at the valuations right now of the industrial sector on 2022 forecast profits not this year next year. financials basically 15 times year ahead earnings. that's the top of the range for the last decade. this looks enormously high 25 or so now you have to say part of that is transports. airlines are in there. it is going to be massive recoveries in these earnings and probably these estimates have to go up. you do have to ask yourself just exactly how much we've pulled forward here in terms of anticipated boom time economy, 6% gdp, and the profit story that might follow along with that i'm thinking maybe you have to cool off a little bit in the

short term and reassess, guys. >> mike, i totally get your point particularly on those banks as you say they are not expensive yet but not as cheap as they looked before. energy does remain pretty cheap despite being the leading sector so many of the recent trading days. >> it is certainly cheap in terms of absolute market value relative to the overall market it looks cheap also relative to the move in commodity prices it has lagged a little bit but it is not necessarily cheap based on what they're earning this year. you have to obviously do the math company by company. but i think right now it is just a grab for anything that has leverage to a very fast acceleration in the underlying economy as opposed to people being very careful about figuring out what these companies are earning in the next few quarters. >> mike, thanks so much for that switching from energy names to shares of ev company fiska surging today on the backs of a deal within apple's main iphone maker. tesla also on the move today

after more than $120 million stock was bought on tuesday, recovering some of the recent losses still down 9% over the last one week shares of work horse which make electric vehicles for last mile delivery down more than 50% on the week after losing a contract with the u.s. post office to oshkosh. joining us to break all of this volatility down tim higgins from "the wall street journal." good to see you. thanks for joining us. i mean, i guess some positive moves today for the likes of tesla but down on the week the work horse story as well is that a sign that people are starting to think all ev players can't be winners and there is just going to be a handful that win and the rest might be left on the sidelines >> i think it is about the potential of growth. without that contract i think a lot of investors are saying what's under the hood? with tesla there has been some distortion on the market because of elon musk's comments. there's been some confusion not

the same growth talk we've heard in the past but what fiska would suggest is planning for huge growth the bet is the world is going to change in the coming years and electric cars will be the winner. >> does it have to be the independent electric car stocks that take part in the victory or can the traditional players start to grab more of the market and take some of the wind out of the sails of these valuations? >> i think right now what you're seeing is this bet that the upstarts are the ones that are going to be the winners. that's been the frustration of detroit and toyota city over the years that they are not getting the credit they deserve for all of the manufacturing muscle they have that gets at kind of the trouble and the challenge these start ups have one of the bets fisker is making is it could get into production by having these partnerships and would kind of put them on the

road in an easier fashion. >> how do investors find the next tesla, tim? >> that is the question. that's why if you're seeing some of these crazy valuations, presumably crazy, and some of these companies aren't even selling cars yet you look at lucid potentially going out with a spac to be public in coming months and the argument there they're making essentially is it is a lot cheaper to get into us than tesla at this point and you look at the people behind lucid, the ceo was the chief engineer for the model "s." and look what the model "s" did for tesla. >> who are you watching the closest, tim, in your reporting? who do you think is serious in terms of execution and management and a real promise when it comes to the future of evs? >> i think a lot of people in the auto industry right now are looking at ribbian they have a lot of money and have hired a lot of talent

a lot of people are looking at lucid as well given the fact they have a strong team there and they appear to be ready to start production of their vehicle. that's a key thing they also have orders. those are the kinds of signs that, you know, you're a little bit more serious than some of the other start ups out there that are earlier in the stage and still need a lot of money to put a car on the road. >> i would imagine, tim, the whole spac mania has only complicated the question around valuations and execution do you see that cooling off at all in this space? >> you would think the question i was just talking to someone the other day is why are these companies valuing it this way they haven't even had revenue at this point that is part of the big bet these players are making and these investors and it oz, you know, what is the value here if you look at tesla, it took them years and years and lots and lots of capital to get to the point where they get the

model three out and still not at the price point that generates the kind of sales elon musk was hoping for the bet on making a car company is very challenging to value because there is such a long runway until you become successful and start generating revenue. that a lot can go wrong. >> tim higgins thanks for the perspective. we appreciate it fisker up almost 40% after the break a potential shot in the arm for the recovery america getting one step closer to a third covid vaccine the latest details on johnson & johnson's road to approval, next you're watching "closing bell" on cnbc. dow is up 417 points don't go away. ♪ ♪ (upbeat music)

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almost 45 minutes left of trading. big rally on wall street the dow up 1.3%. 413 or so points the strength boeing adding

almost a hundred points to the dow's rally by itself. goldman sachs, visa, also contributing to the rally. what is not working today? home depot is down for a second day in a row after earnings yesterday. apple is slightly lower. nike, walmart also down at the bottom of the pack you've got a real bid for some of the reopening, cyclical plays. energy, financials, industrials at the top of the market getting breaking news here on the fed. steve liesman with the details >> thank you the fed's payment system which shut down entirely earlier today, well they're back up and running the fed saying in a statement the fed wire fund service, wire security service and national sentiment service have resumed processing and are operating normally earlier today they said they failed due to operator error which was i think a specific effort on the part of the fed to say this was not something outside or some kind of hack or terrorist attack but something that happened inside of the fed. those systems now up and running and they say it is going to take a little time for all the back

processing to clear now. >> great stuff thank you very much. we're up 1% on the s&p 500 the fda is one step closer to approving the latest coronavirus vaccine for emergency use which means a third shot could soon be available for americans. we have the latest on the johnson & johnson vaccine. meg? >> reporter: this would be the first vaccine that only requires one dose on the u.s. market if it gets the green light as soon as this weekend. this morning we got the fda briefing documents that showed how the regulator is thinking about the data from j & j's clinical trial ahead of the meeting with advisers it will have on friday and reiterated the efficacy we saw a couple weeks ago when j & j presented the interim top line look at the clinical trial results showing the protection really starts to kick in around day 14. i think we have a graph we can show that shows that the protection reallyemerges two weeks after getting the shot you can see the blue line there is the vaccine group this is the number of cases or

incidents of covid in the trial. the placebo group starts to separate at two weeks. really strong protection against severe disease no hospitalizations and deaths among people who got the vaccine 28 days after getting that first shot in terms of safety the fda is saying no concerns that would preclude emergency use authorization. things you might feel, things like injection site pain, headache, fatigue, muscle pain there were rare events of hives and one hypersensitivity reaction but no anaphylaxis that they saw in the trial at all so friday fda's outside advisers start to discuss the vaccine the fda could authorize this over the weekend the cdc's advisers meet sunday and monday to discuss any considerations about what they might recommend for the vaccine and if it gets the green light, 3 million to 4 million doses going out next week. the white house confirming they are ready to distribute and that

is enough for 3 million to 4 million people because this is a one shot vaccine guys >> which is all good news. everything you said. we desperately need any number of vaccines that can get on the market and be safe, meg. but 20 million shots by the end of the month isn't all that much for 10 million people. hasn't j & j been working on this for a long time and ramping up production in anticipation of this approval? why does it feel like the supply is a little short? >> reporter: well, there have been reports that j & j ran into manufacturing delays the company had said they are on track to meet their obligations, which are technically a hundred million doses by the end of june and that is what they are saying they will hit. 20 million by the end of march since it is a one shot vaccine that is enough for 20 million people so they can actually go further with less vaccine because of the strategy they undertook. but there have been reports that it is a little slower than had been hoped and so that's an open question

but it seems like they're on track as of now. sara >> good at least at 20 million thank you. meg tirrell. bitcoin prices are rebounding after a two day sell-off wiped out more than 20% of its value up next we'll talk to the ceo of a regional bank making it a lot easier for customers to buy crypto from their accounts as we head to break check out today's top search tickers on cnbc.com tesla is always up there apple, ten-year note yield has been there as we see yields reach a one-year high. square off of earnings and of course more bitcoin investment and churchill capital topping the list ♪ but entrepreneurs never stopped. ♪ and found solutions that kept them going. ♪ at u.s. bank, we can help you adapt and evolve your business, no matter what you're facing. because when you close the gap, a world of possibility opens.

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square is up and down on bitcoin announcing $170 million worth of the crypto is added to the balance sheet. square's ceo appeared earlier today talking about the growing demand for the digital currency. >> people transacting bitcoin through cash up in 2020 and 1 million who are new to bitcoin in january we're going to be disciplined in our approach and ultimately customer led as we see the ecosystem evolve >> reporter: a locally owned bank vast bank in tulsa, oklahoma is looking to cash in on bitcoin transactions. the bank provides cryptocurrency services and enables customers to buy cryptocurrency directly

from bank accounts thanks for joining us. >> great to see you as well. thanks for having me on the program. >> tell us exactly what you have started doing and when you did the level of interest from customers. >> we are the first bank to enable this from a single bank account and we are managing and protecting those assets on behalf of our customers. coin based s.a.p. are partners in providing the service and we've seen a lot of interest in this specifically we've had people contacting us saying they've been waiting for a national bank to reach oust and be able to offer the service. >> i have so many questions. the first, has this led to lots of new account openings for you or just simply people that already had accounts deciding potentially to buy or sell bitcoin? >> great question.

we are doing this internally we had two shareholders. we are a family owned bank so our first shareholders that actually did this. it is internal and then we will be rolling it out to the general public here over the next 60, 90 days to do those things. >> so it is not yet available for all of your customers. >> that is correct right now. we are a regulated entity, national bank, so obviously a lot of things we want to do to make sure that it's safe and sound and that our customers can trust that we are doing the right things to protect their assets >> so how are you looking? are you looking to distinguish yourself, brad, here isn't this sort of where paypal and square are going and eventually don't you think all the big banks will go there too? >> i would think so.

we started this process about five years ago this is a complicated space so we started to transform our core banking product, chose s.a.p. as our partner to do those things i think eventually other banks will get there but the fact is that you need to have world class partners to be able to offer these types of services out there. and so it is not something that you just do overnight. we've got a modern platform with great integrations with these partnerships and, you know, we're looking at what our customers are asking for and we think this is going to be something that is really important for us to be able to offer. >> when you say you're the custodian what exactly do you mean will you therefore take responsibility for things like if someone forgets a password is there a route back to getting their bitcoin? >> that is another great question and you're seeing that in the headlines all over. so through our partnership with

coin base we will have what is called a three key capability so any two of the three would be able to access that on your behalf as the customer so, you know, we get the question on the custodianship a lot. think about it in terms of safe deposit boxes right? vast has a safe deposit box. we own that box. you have your assets sitting inside of the safe deposit box which you can access but we have the security infrastructure surrounding it of which s.a.p. and a.w.s. and coin base are part of that infrastructure and so maybe that is an analogy that people can get their heads wrapped around >> brad, just finally, two part question will people be able to buy and sell individual parts of bitcoins or will there have to be a whole bitcoin will you be able to pay your bills with your bitcoins or will

it be more case that you have a sort of separate sub account and you can move cash into and out of bitcoin >> so to start with, partial purchases are going to be fine so that i believe was the first part of your question. then the second part of your question in terms of being able to transfer or make payments and those type of things we anticipate being able to roll out those type of things but not initially. that is not one of the initial offerings. >> brad, thanks for joining us good to see you. >> thanks so much. take care. still to come shares of spotify have surged over the past year as the company doubles down on podcasts but our friend josh brown says it's not immune to competition >> one of the hottest podcasts on the planet right now is the joe button show. joe very i think astutely pointed out that creators have too many options for this spotify debt star to really take over the whole podcast game. >> ahead we'll speak with

podcast star joe budden just mentioned and the ceo of spotify competitor patreon about their business model to help creators get paid more for their work as we go to break ten year yield touching 1.4% earlier in the session. now 1.384. back in a couple we see breakthrough medicines getting to patients in record time. at emerson, our automation software is empowering pharmaceutical companies to accelerate their production of critical vaccinations for the world.

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end cyber attacks. from endpoints to everywhere. 30 minutes left to go. strong rally here to the close s&p up individual market movers shares of upwork are jumping today on an earnings beat. the online market place for freelance work seeing strong customer retention and also gave up guidance the stock up 3%. shares of uber lower on a report that the chinese riding company dd plans to debut in western europe and the report sats didi could potentially go into france, germany, and uk by the first half of the year and also offer food delivery services

uber is down a little more than 3% check out shares of travel stocks all jumping today adding to sizable gains for the month airlines, cruises, hotels, airbnb ahead of earnings participating in that rally. one more to point out which is gamestop having a surge here in the final hour of trade i think up more than 30% so clearly catching a bid i haven't seen any news. haven't checked the reddit board. up now 38.5% >> starting again. >> never a dull moment i'm not sure i can take it again. just maybe for a day or two happy for it to happen but don't let it snowball. time for a cnbc news update. >> hi everyone i am rahel solomon with your cnbc news update at this hour. president biden and vice president harris met with congressional members from both parties today to talk about fixes to u.s. supply chains. among the problems a shortage of computer chips that has forced temporary shutdowns at some u.s.

automakers out west the sheriff of los angeles county says the car crash involving tiger woods was purely accidental and no charges are planned. medical experts say that the golfer faces a long, difficult recovery from major fractures in his leg, suffered when his car rolled over after leaving the road the head of the pga also says that it is far too soon to even think about when woods might play golf again. at 7:00 p.m. eastern tonight shepard smith will talk to an orthopedic surgeon about the golfer's surgery and what will be needed for his recovery i'll send it back to you >> thank you for that. just under 30 minutes to go before the bell here is where we stand in the market. more than 1% rally for the s&p and more than 2% for smallcaps every sector higher except utility. energy is leading the way. we are near session highs. the dow is up 1.4% 440 points up next, the ceo of crowdstrike weighing in on the solar winds hearing tells us the one area that could be their biggest target for a cyber attack this

year they just put out a new report on it. plus we'll break down the marijuana trade with the ceos ahead of their planned merger in a cnbc exclusive coming up on the show 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, 24/7 support when you need it the most and $0 commissions for online u.s. listed stocks. don't get mad. get e*trade and start trading today.

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increased bullying and hate. - let's put an end to discrimination so everyone can feel safe. - the more you know. top executives from solar wirngsds microsoft, crowdstrike, and fire eye all testifying in front of a senate panel this week about the big solar impact hitting nine federal agencies and at least 100 companies the executives warn additional victims have yet to be publicly disclosed and called for greater transparency about breaches. joining us by phone is someone who testified, crowdstrike's ceo george kurtz thanks for calling in. obviously everyone is trying to figure out who is at fault here. none of the blame goes to you because it sounds like you came in afterwards to help solarwinds clean up but you did seem to point your finger at microsoft

why? >> well, when you look at these attacks obviously they are very sophisticated. we talked about that in our testimony and all of the witnesses did a great job there. part of the challenge that we saw in these attacks is identity and the ability to become someone else and bypass authentication, two factor authentication which many of your viewers may be familiar with these attacks moved from on premise networks to the cloud and there is a lot of complexity in the microsoft architecture and their environments and, you know, we pointed that out. there are things that they can be doing better and as an industry zero trust is one of the areas we've certainly pushed and promoted which is why we did an acquisition of preempt late last year. >> so, george, what is it that we still do not know yet about this hack at this point and why? >> well, we don't know what we don't know when you look at the

sophistication, a big part of the overall goal of the threat actor was to remain undetected and fortunately it was detected. fireeye found it and credit to them for coming out with it. as an industry it is a very difficult task when we think about supply chains. they were actually infecting a software supplier tan makes it really hard to find those but it does highlight not only to governments but also boards of directors how persistent these threat actors are and how sophisticated they are there is a lot of effort, a lot of people power that went into this to make this particular attack successful. so what else is out there? probably the tip of the iceberg but that's why we get up every day and work on protecting our customers 24/7 >> in terms of not so much what else is out there but what might be next looking at a couple recent reports you guys have released do you think the health care sector including specifically vaccine related

information and data could be next on the target list for attackers? >> we do and we've seen that over the last year as you might imagine, anything related to covid, covid vaccine, therapeutics, of high interest for a variety of reasons and we've seen that targeting. one of the other areas we talked about was also big game hunting. that was directly targeting companies to profit from things like ransom ware when we look across the spectrum we break it down into nation state actors, into e-crime and i'll tell you, e-crime is booming. so much so that we actually created an e-crime index just to track how it goes up and how it goes down. mostly up at this point. because they're making so much money in that area >> solar winds was obviously a major reminder for organizations both government and private that they need to be doing more what's been the impact on

spending in your sector, george, for your company and broadly as an industry as a result of what happened >> i think when you look at the industry and you look at the sort of events they are watershed events and i think people continue to take notice and security unfortunately is a little bit like the house getting robbed people tend to get alarms afterwards they tend to add more insurance afterwards and then forget about it these events remind us that we have to be vigilant and remind us that the threat actors are very sophisticated, very persistent and in many cases it is the average company is out gunned you're talking about nation state adversaries focused on individual companies folks like crowdstrike and others are focused on being able to protect these organizations but it is a difficult task and many companies are out gunned and they need to make sure they have the right level of security up and down the organization >> george, are you done on the acquisition front for the time

being or might more take place in the year or two ahead >> we were really excited with the humio acquisition. it helps us accelerate what we call the xdr space extended detection and response and sin they sighs is network -- also provides a fuller picture to our customers. we continue o know a weekly basis. we are always looking at companies and there is a really high bar which is why humio hit that and we're excited about it and the speed and scaleability we've looked across the entire industry in this space and we haven't seen anything as exciting as humio in terms of speed, scaleability, and the ability to answer questions that are really hard for our customers. you know, really excited about it >> george kurtz, thanks for joining us >> thank you so much >> should just mention by the way gamestop up 70% plus looks like it's just been halted but surged even further during the course of that interview that block of the show

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15 minutes left in the trading day. commercial free coverage of all of the action going into the close. cnbc's senior markets commentator mike santoli here to break down these crucial moments and we have wealth management ceo josh brown with us as well good afternoon, josh let's kick things off with the broader markets. stocks rallying. the dow is on track for a record close. believe it or not the s&p 500 higher for a second straight day and the nasdaq positive for the first time in three sessions gamestop surging and halted up, back trading again up 86% and amc up 14% as we speak before we get to those individual names the key stands out tesla is recovering as it

did from 10:15 onwards yesterday. apple not up, it is lower. >> still heavy in terms of the largest tech stocks. the market itself today did start off tentatively. around 10:00 a.m. eastern time the ten-year yield at 142 the high of the day. then it backed off not dramatically but stopped making new highs that allowed the nasdaq to gather its feet and it became just a kind of a follow through recovery day equal weighted s&p 500 so kind of the average stock at a new all time high so impressive resilience we keep pricing in incrementally a sooner and faster recovery and will see if that comes to pass right now the messages of the market are very difficult to really cast a lot of doubt on the overall trend. >> josh, where are you on people holding portfolios with a lot of exposure to the high growth names, the faang names, the nasdaq groups in light of what is happening with interest rates and the fact that we're seeing the highest treasury yields in a year is it reason to be concerned and

reposition >> for most investors it is not really a reason to be concerned. whether it is a position to reposition depends on who and what you are what you do for a living if you are someone who answers to end clients or investors about 90 day time frames and whether you are plus or minus a few hundred basis points above the s&p then yeah you're probably obsessing about that all day long for the vast majority ofpeople watching this now they don't really have a lot of exposure to the 30 times sales hypergrowth no earnings yet software and cloud plays we talk about a lot because they are not on the indices. they're in the russell, you know, in the russell 1000 growth they're not in the s&p 500 so most people benchmarked to the s&p don't really end up owning these things at least not yet until they become profitable. and get added. they have a lot of tesla exposure and yesterday tesla was

below the price that was added to the s&p 500 that might be like somewhat of a concern but i just think it is two parallel things happening. most people who own assets that are benchmarked to the s&p were to a lesser extent the nasdaq or the dow. they were getting the benefit of the stocks that are working even if the names are taking a pause. anything valuable, anything cyclical, small value roaring up 2% energy is on fire. these stocks are in the index. not gigantic but you definitely get the benefit if you are diversified. i think that is most people watching >> speaking of game stop, at the center of the robin hood trading frenzy proposing a t plus 1 trading cycle versus t plus 2 to shorten the business time to one business day on bar stool sports last night they were talking about how robin hood handled its trade.

>> if you really want to protect the firm and protect the customer, you wouldn't have stopped it it is that decision basically had to crater the price and left a ton of your customers holding the bag. >> i understand how you feel that way and how customers might feel that way but i think we have to also protect, i mean, customers buying meme stocks rests on a foundation of our business being able to operate which rests on a foundation of the financial system working right. >> i think it was harder for him than the congressional testimony. as we've been mentioning throughout the hour check out gamestop it soared in just the last few minutes or so up 103. #9, was halted and reddit favorite amc also is moving up double digits jumping on the back of the gamestop surge up 25%.

explain the significance of the settlement, why it takes two days to settle and what that would do and why it is of note here >> first of all as i was saying i remember it was five days and went to three days the industry has been moving in this direction as technology gets better and they try to streamline the process then it went to two days a few years ago. i don't think there was ever any doubt that the industry was going to attempt to quicken this to get somewhat closer to real time settlement. it is very difficult because you want to be able to have trade executions automatically and then figure out, you know, funding and all the cash changing hands and you have to correct for errors and you need that time for the entire system to reconcile yes we should get it to one day but i think it probably has taken an out sized amount of focus on this issue because robin hood chose to essentially scapegoat the clearing system for its issues the fact it didn't have any capital even though every other firm operates on the same rules it just didn't have as many customers all piling into the same incredibly

volatile stocks at the same moment and creating the outside risks as we got to an options expiration a lot of specific circumstances i think probably cat liesd an acceleration of the industry intention to get to a faster settlement. >> josh last time we were here gamestop doubled in the last 15, 20 minutes, last time we experienced this in january it eventually led to quite a big, broad market pullback. are you worried we'll run into that again >> i just want to say a couple things first of all i absolutely love the fact that bar stool sports has become 60 minutes and dave portnoy, leslie stall, who are the anchors? i just love this. >> mike wallace. >> mike wallace. i don't know i'm not old enough to have a working knowledge of all of the anchors on "60 minutes" but i like the fact that the kid showed up and answered his questions. by the way, portnoy is right if there hadn't been a halt in buying or if an announcement came out we're going to raise

capital now so that there is no halt in buying, this might have all resolved differently the other thing i want to say very quickly, if you stage short gamestop from 400 something down to 40, you really didn't learn your lesson the first time the real lesson is this is a five, what, $5 billion there are people who have so much money right now that for them to just buy this company for $5 billion as a goof, like they might actually do it. it's like the joke in austin powers when dr. evil goes like this and he threatens the world over a million bucks it is nothing. there are people buying digital assets that have no value for a hundred million dollars just to make a joke about it on twitter. that is what's happening right now. if you are staying short something because of cash flow or whatever understand that these are not big dollar amounts

for the meme driven fed liquidity driven economy i would not -- this thing could just get taken over by the chewy guy with a consortium of two or three private equity executives that say you know what we don't care if it ever makes money. we're going to use it to market things to the customer base. so i would be very careful here. staying both long or short any of these stocks caught up in this maelstrom >> tweeted a picture of an ice cream cone an hour or so ago which coincided with that surge. gamestop up. amc up 20% news on gm related to the global chip mortgage. general motors says the worst is over the ceo making comments at a wolf research conference over the last couple weeks as we talked about this being a volatile situation we've actually seen the situation get better for us. at this point i would say we're highly confident about being able to hit our guidance that we put out to the street, end

quote. i didn't mention when the quote started. my apologies i hope you picked up on it we're also awaiting video, a signing by president biden related to the chip shortage >> two segments you want to watch for nvidia one is gaming. remember where the chips are use today improve video game performance in pcs and notebooks also benefiting from cryptocurrency mining the street wants $2.4 billion there then the other big segment the data center business analysts forecasting $1.84 billion in the quarter. rbc's mitch steefs has actually focused more on the q1 guidance the forecast from mitch nvidia still a buy, pure play on a.i., gaming, and calls it the best sector long in semis nvidia reporting as you mentioned the chip industry facing its most serious shortage in years the biden administration is now signing new executive orders to help create more secure and resilient supply chains for the

semis specifically now sending out these formal reviews which can then become the basis for future action. back to you all. >> josh lipton, thanks so much for that josh brown, what is your view on the broader space, nvidia earnings as well to come, and the level to which these stocks have run up? >> i think nvidia is going to be tough from here just because they had such an incredible set of quarters and blow out raise in guidance. a lot of times you could see companies victims of their own success. i've written 30 and 40% multiple drawdowns. i understand it comes with the territory. right now it is a price to sell of multiples like 18 nobody who buys it here should think that all of the company's fabulous success and more is not already priced in. that being said, i am trying to think in terms of like multiple year and decade long periods and i just keep coming back to the

idea that nvidia's platform not just the chips but the software, too, is going to be so central to everything from machine learning to a.i. to autonomous driving to gaming to data center i just can't not be in it. so if they have a quarter that doesn't meet sky high expec expectations and the stock retraces it is a portion in the portfolio where i can live with that volatility. i don't need it to be the best performing stock all the time. that is the way i think about the handful of names like this that i am involved with. >> mike, i just want to point out shares of gamestop because they've seen this incredible surge. just when you thought things had calmed down, after what, the stock ran up in january, all the way into the high 400s, came falling back down to earth, it's been calm over the last few weeks. amid the congressional testimony and everything else. and here we go just on a quiet afternoon in the

3:00 hour of trading surging. 103.9% and getting halted. what are you seeing, mike? is this a meme >> there is nothing we can point to keep in mind 24 hours ago the cfo announced it was resigning since that moment, there's been some color coming out saying the board forced out the cfo maybe he was seen as impediment to the transformation of the company. whatever the strategic plan is for this company and a little bit of a germ of something like that is probably enough in a market with a lot of house money and a lot of people still focused on the stuff that is going to move the fastest and all the memes to get it going. i'm not going to pretend i have any sense of why it is up at this level at this moment. also, you know, i don't know exactly what the real time short interest is. nobody really does but you can guarantee it is lower than it was when all this started in late january, in mid january. because there was a lot of the shorts got cleaned out and people in general are short a lot less stock across this market so, you know, it is unclear how much would be behind it if it

were not for this little spurt of course it is taking up a lot of the oir kind of adjacent stocks we got used to talking about as a single group. >> the other question of course is whether the change in cfo will lead eventually to an equity raise which might hurt the shares if that does materialize. a lot of ifs there we'll return josh to gamestop and amc just after the close so much still to discuss on that story. it is up a hundred plus percent as we speak. mike, two minutes left what are the internals telling you. >> positive all day. i mentioned the equal weight s&p has a new high, out performing all day. more stocks um on the new york stock exchange than down about a 2-1 margin for most of the trading day. that is relatively consistent for a while here one area if you want to look at the kind of rate plays on either side of it, housing related stocks home builders have actually had a little bit of a pressure this week, down on the week, down

about 1% home builders, of course banks were flying. this is not because the data on housing is a trouble actually great numbers on home sales. it is more a matter of rates it is a reflex move. the vix, it didn't really register a lot of panic yesterday in the sell-off and got up into the mid 20s. here we are back under 22 again. nothing much to see here it is basically where it's been for quite a while and now at the lower end of the nine or ten month range. >> taking a look at the major averages as we go into the close, we are seeing strength. big day for rebound. even though value is out performing growth we're seeing growth off the worst levels. the dow is up 1.4% boeing is the biggest contributor to the gains 436 points near the session high. the s&p 500 up 1. -- almost 2% 1.8% most sectors higher. utilities under perform pg the cyclical groups are going the strongest. energy and industrials there is the nasdaq up 1% as we have seen this rebound in

technology even though names like apple have been a little soft today. and treasury yields are also higher today the russell 2000 index, small caps doing the best of all four up 2.45% really strong day for the small caps gamestop after being halted doubling in the final hour of trade. never a dull moment there. we will discuss it on the other side >> indeed. gamestop up 104% amc up 18% welcome. i'm wilfred frost with sara eisen and mike santoli cnbc senior markets commentator closing with the dow up 424 points off the high 470 but a very strong session at one .4%. s&p at 1.1 nasdaq 1%. russell 2000 t energy continues the recent surge up 3.6% today 9% so far this week as we mentioned gamestop up a massive 104% investors are now set for several big earnings reports

booking holdings nvidia, teledoc all set to report. coming up the ceos of aphria and tilray discuss more states legalizing and the pending merger of their companies. sarah has $350 billion of assets under management mike santoli first of all before we get to the craziness of gamestop in the final hour or so of trade, pretty impressive to see two of the major averages higher for the week. only the nasdaq down now and that sort of last 24 to 36 hours bouncing off the lows. >> sort of looking like something of a gut check in retrospect there is nothing that changed the overall environment or the character of this market just yet. it is in a bit of a sweet spot does anybody not recognize that we're in a bit after sweet spot in terms of treasury yields going up to pricing better

growth but not yet high enough to jeopardize equity valuations yet. case counts going down a lot j.j. vaccine coming online the fed chair in congress two days in a row says absolutely nothing new but all that does is reiterate the fact they'll be extremely slow to look for reasons to tighten i think it is a matter of when we have these sort of mini bubbles and subsectors and mini crashes does the over all market absorb that? so far it has and more or less has stayed in this kind of orderly trend. a lot of crazy stuff up and down netting out to a pretty orderly kind of behavior in the s&p 500 as a whole >> so, 1% move higher and the nasdaq was under performance and that has certainly been the trend over the last few trading sessions has it made you rethink any of your tech positions? >> well, there are two key themes playing out this week and that is first of all inflation which we think is more of a fear than reality and then this rotation from growth to value. we do think that has legs because we're seeing global,

synchronized growth, earnings growth, stimulus, and a vaccine all of that to be very positive for cyclicals at the expense somewhat of technology companies. within tech we think you need to look for those companies that have more reasonable valuation and switching back to inflation powell came out yesterday and said we're nowhere near targets for interest rates or inflation levels and also the labor market has a lot of slack all of that should keep a lid on inflation for now and maybe make it more of a problem in 2022 or 2023 >> josh brown weigh in on gamestop cut you off early. my apologies >> well, clearly, this is the biggest economic issue of our time i would just say it is strange to me the company didn't even attempt to do any kind of secondary offering amc did. they did a convert where somebody was able to -- somebody was able to convert. game stop the first time around

didn't seem to get the benefit of the mania maybe this time they are about to capitalize on it and news is pending and we'll see. i don't know anything. i'm not involved with this stuff. one interesting idea would be just to put reddit in charge as the cfo like take the first ten comments made about the stock each morning and have the guide to corporate policy, stock price could get to i don't know 50 to $ #o $60 a share on that news this is the market we're in. too many people have made so much money not saying it is a bad thing but you'll see people use easy money they've made in ways they wouldn't if they had earned it by showing up at a job every day. it is a devinifferent type of my when people play with house money they play differently than with piggy bank money. expect more. that is pretty much the last comment i'd make on that >> if we do see a repeat mike of sorts here we go again what will we be watching

robin hood to see if they've dealt with their issues >> the most heavily shorted stocks. >> basically they are not as much of a short base to go for this crew to go and attack that there was a month ago. what caused disturbance in the overall market was the fact you did have massive volatility on the heavily shorted stocks it was destabilizing long short portfolios. people need to just get smaller in general in terms of risk profile. i'm not sure we have the exact same set up as we did back then so it is not clear i don't want to over anticipate what is going on this is after all a $6 billion company after it doubled in a few minutes here or whatever it is it is not as if it alone can drive things but if it create the ripples through the market that is what you want to watch if it does all of a sudden become the game in the options market to play crazy out of the

money calls to see if this goes again to the moon, then yeah maybe we have something else to talk about you know, we talk about whether the company should have raised equity intuitively, sure. why didn't they? a good question. i also think it is worth asking why didn't they because maybe there is a good reason whether the financials were unsettled or this is an amc situation where they really have a solvency issue ahead of them. it is just a business that's had its struggles and are trying to transform. they have 5500 stores. what are they going to do with the money if they get it in the door it is not like there is an obvious way to go out and use >> there are not as many obvious stocks with short interest sending out small cap stocks tell us what has been happening with arc and the slew of funds there. not small cap. quite the opposite. >> the other game that has been going on obviously this fabulous run. it's been this self-reinforcing situation where a lot of the disrupted tech holding not just tesla but a lot of others have been leaders of this market, created tremendous inflows

everyone knows the firm is much bigger than it was a while ago then yesterday they had one of the biggest outflows and you saw some of those stocks i think come under attack. i think there is a game going on right here people are figuring out what the pattern is going to be in terms of whether the firm has to or wants to sell things, what they might buy and prioritize and what stocks they might defend. that is going to keep going on i think as a kind of a skirmish. as a proxy war here in terms of the growth value trade as well as just in general people who think that there are over heated parts of this market and trying to make a run at them >> we've got an earnings alert on bookings holdings seema modi with the details. >> shares of booking holdings pulling back from the record high and hit in today's trade but a beat on earnings and revenue. a loss of 57 cents versus the expectation of a loss of $4.28 revenue came in higher than expected other big numbers to take into account $7.3 billion in fourth quarter bookings down 65% year over year and room nights booked

down 60% year over year. booking does have a larger presence in europe and expedia and we know travel across europe did get impacted by the lockdowns and travel restrictions that were reintroduced in late 2020. as for the road ahead we'll look to the earnings call at 4:30 p.m. for guidance for the first quarter but glen fogel does say in the press release in recent weeks we've started to see some improvement in booking trends we'll continue to monitor. fogel joins us on "squawk on the street" tomorrow morning back to you. >> thank you seema modi you are a big shareholder of booking holding. what did you hear and why are you in the stock >> well, booking is really in the sweet spot of the ecosystem of travel and they have an advantage because it has a low variable cost model. really as the world returns to normal with restaurants, car rentals, andhotel bookings the booked almost a billion hotels before the pandemic in 2019. bookings should have upside to the numbers as it'll probably

take us until 2022 over the summer of 2022 to return to normal there should be a lot of ramp for bookings going forward we love the light house model they have. you don't have to take the asset risk that hotels and restaurants have to take. >> another one crossing teledoc. >> reporter: got a mixed report for teledoc on the bottom line an adjusted loss of 27 cents a share. that was better than their guidance it was wider you can see shares are ticking down a bit a lot of that driven by the integration and compensation costs that were associated with the completion of the merger but on the top line revenues at $383.3 million well above estimates as well as the high end of the company's own guidance up 145% year over year and if you take out lovango the organic growth was up 79% actually ahead of expectations revenue guidance for the current quarter and full year both above estimates. some highlights from the quarter

total visits up 139% strength in employer membership. up 10% sequentially from the previous quarter. 41% year over year to 51.8 on the consumer side we saw a little weakness. the fee only side. although they were up 10% year over year to 21.3 million that slipped from the prior quarter of 21.8 million. the ceo told me that they are not generally seeing a decline in telehealth which some people had predicted since the peak of the pandemic on the employer side they are benefiting from cross sales. and on the consumer side mental health up 500% year over year. jason gorevic on "squawk box" tomorrow morning back to you. >> thank you very much viacom earnings out. julia has the numbers for us on a stock up 76% year to date. >> reporter: that's right. big gains year to date but now

we see the revenues coming in just a hair light of estimates 6.87 billion in revenues versus 6.89 billion estimated and earnings coming in 1.04 adjusted versus $1.02 estimated the company really stressing the growth of its streaming business giving us new numbers here saying the domestic streaming subscribers for their paid services grew 71% year over year to 19.3 million and both access and showtime ott delivered their best quarter ever in sign ups and pluto tv which is their free service domestic monthly active users grew 34% to 30.1 million this is all in focus because in just a few minutes viacom is going to be hosting its analyst investor day presenting its streaming service which they are debuting in march so a big focus on the growth in revenue and also usage of streaming guides back over to you

>> thank you don't miss the first on cnbc interview with viacom ceo tomorrow morning on "squeak on the street." we are getting breaking news on moderna. let's get to meg tirrell. >> reporter: major news out of moderna on how it is planning for the variants of the coronavirus and its vaccine. the company saying it has plans to test booster doses of its vaccine both the original shot and one that it has updated to tailor it to the b.1.351 variant found in south kafr. it has already shipped it to the nia to prepare for the study and says it will also combine that vaccine tailored to the variant with the original vaccine in what is known as a multi vaccine and test the booster shot of

those together in addition to testing just a third dose of the original vaccine they're also going to be testing, giving the combined version and the variant specific version in folks who don't have antibodies already so testing boosters, testing the new variant vaccine, and the combined version of the vaccine all to try to make sure they are staying at pace with this virus. also announcing some updates in manufacturing capacity, putting in investments to boost capacity in 2022 and saying they are now increasing the base plan for this year to 700 million covid vaccine doses globally this year up from 600 million as a base trying to get up to a billion doses this year and the capacity they say they are building now should get them to 1.4 billion doses next year. it gives them flexibility to address the variants guys, they are testing lower doses of these booster shots than the currently used doses. that would mean if you need half dose for example just to boost,

they could get up to 2.8 billion doses next year. this really shows moderna is thinking about this as an ongoing business guys back to you. >> just to be clear, meg, this would be a third shot. it is going to go to the nih for trials does it have to go through approvals again? what is the timeline for potentially getting this booster out in the market? >> reporter: yeah, so this is the first one we are seeing. the fda just provided guidance on how the companies should work through the regulatory process they need to evaluate safety and the immune response that the vaccines generate. it is just as we were looking at phase 1 and phase 2 data in the antibody levels you see from the vaccine that is how they'll be evaluating these booster doses and we'll see if it ends up being needed if the variant becomes more predominant in the u.s. so far it is the b-117 variant from the uk we are more worried about and the vaccines still

show strong levels of neutralization against that one. >> thanks very much. great hopes of course coming as well with the j & j vaccine. haven't had a chance to ask you about a couple individual stock picks in europe that you picked out for us can you quickly go through them? >> sure. outside of the u.s. you'll get more cyclicality in europe so companies like air bus similar to booking a play on travel they can take market share from the boeing 737 prepandemic travel was 65% higher than where we are now then also not your old telecom company of a decade ago, this is an infrastructure, digital, health care automation company continuing to shed businesses and cut costs. the sum of the parts of seeman's is much greater than the stock price today. >> thanks for joining us always good to talk to you >> thank you >> josh brown good to have you here as well still ahead on the show pot stocks till rey and aphria rallying today continuing to post huge

gains this year. up next the ceos of both companies discussing the outlook for the industry as more states ckeg pot lal ba in 90 seconds here on "closing bell."

new projects means new project managers. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home. welcome back let's quickly check on gamestop after hours trade of course it gained 104% in the session mainly in that last hour of trade. last half hour of trade adding a further 30% as we speak in the after market so talking about

130%, 140% net for the day as it is in full but really for the last hour, sara, 140% gain >> on no news. no reddit post that we can tell. someone check on roaring kitty cannabis stocks surging today. green across the board earlier this week new jersey became the latest state to legalize and decriminalize marijuana use and possession after governor phil murphy signed legislation into law. joining us now in an exclusive interview to talk about the state of the industry and the crazy stock prices aphria's ceo and tilray's ceo good to have you both on the show i saw you put out on the website today about the merger is that a sign things are still moving forward between you two >> things are always moving forward, sara, you know, we're excited about it and tilray got their numbers out last week which were very good and the

teams have been working together to put the companies together. we have filed with the sec, the proxy, waiting for our comments back and hopefully we'll start a mailing and we're ready to go. these two businesses together will create the largest retail sales cannabis company in the world with great foot prints in europe, canada, and a business in the u.s we'll be ready when legalization happens in the u.s. and with our balance sheet, with our knowledge, and with that we just want to get this done and move forward. >> we just showed gamestop which is moving again. cannabis stocks did get swept into the retail mania a bit and did get some love on the reddit boards what is it like watching your stock price which has been on an even crazier ride than normal for cannabis >> there was a bit of ptsd based

on experience back september 19th of 2018. to go through it again someone described it as post traumatic short disorder you know, we try not to pay attention to day-to-day volatility i've been in the industry 11 years and i really take a long view that is really what led us to this combination, the combined company will have a leadership position in canada, a leadership position in a great foundation for a massive market in europe, and a foothold and foundation for whatever comes in terms of legalization in the u.s. >> how hopeful are you that full legalization comes through in the u.s. in the foreseeable future is it still a five, ten year type event >> listen, ten years out i'm not

sure i hope it is in the next two to three years. even without legalization, you know, we'll have a great business in canada you know, europe, which you know europe quite well with over 600 million people will have a strong international business in the medical business there i'm a big believer that legalization may happen in germany and portugal and some other countries before the u.s and we'll be one of the largest cannabis companies in the medical world in europe. in regard to the u.s., listen. we have a great beverage alcohol business in sweet water beer manitoba harvest we will look at other acquisitions in the u.s. i think the safe bank and i think medical cannabis will legalize here over the next couple years i think there is going to be an opportunity to ship product from canada into the u.s. from a medical standpoint and with the safe bank act it will bring lots of dollars the big thing is, you know, with the aphria and tilray combination we'll be the only company out there in the

cannabis that has a foot print throughout the global part of the world and we'll be able to do something in the u.s. once we know what we can do. and right now listen there's a lot of unknown what will happen with the u.s. but we'll have the balance sheet, the knowledge, the brands, we'll have the technology to be able to make a major impact once legalization happens. i say full legalization in the next two to three years, wilfred. >> we're starting to see it in states i mentioned new jersey at the top, brendan, and governor murphy signing new legislation there. how do you guys as canadian companies and eventually one company play in that space can you sell in new jersey as a canadian company right now and if not what is the plan for gaining more of a foothold so you can be a player as more states legalize? >> so in terms -- >> currently -- go ahead brendan. >> i was going to say, in terms of entrance into the u.s. from a

thc perspective what we can do now is build a foundation with sweetwater and manitoba harvest. we have cbd products available in the u.s. at manitoba harvest. more importantly i think prohibition ends in the united states in the next 12 to 18 months i think that around the world we export medical cannabis products to 17 countries. in all of those countries those products are available in pharmacies we've done i think six, seven imports now from canada into the u.s. with dae and fda approval so i do think there is a very likely probability we will be able to import medical cannabis into the u.s. in pharmacies for medical distribution in terms of being able to sell for use in a state like new jersey we need the federal level. that is what we are expecting relatively soon, 12 to 18 months new jersey obviously a huge step in the last 48 hours

i think we'll likely see an adult use measure in ohio in november we'll also start to see states such as new york, connecticut, rhode island legalize adult use through the legislative branch and executive branch which we really haven't seen much in the u.s. and so i'm optimistic about being able to deliver products into the u.s. in terms of the thc market over the next two years. >> when you guys have your deal, you've got your website now as well as we mentioned do you think there will be much more consolidation to come across the industry in the years ahead? >> i think absolutely, wilfred, i think consolidation in thinned, canada alone there's over 500 lps i think, you know, you got a lot of msos in the u.s with that, i mean, you know, sara question before how do we play a part in new jersey or connecticut? we can easily parlay other

products in the consumer products, alcohol products that ultimately have the opportunity to convert to cannabis products and thc. we have a strong medical business in canada we have a strong medical business in europe i think medical cannabis is something that will legalize very shortly and will be a big player in -- we'll be a big player in it and ultimately it will allow us to move into recreational once it is legalized. there is no reason tomorrow we cannot expand upon our manitoba harvest or sweet water business and doing drinks with cbd or food with cbd or hemp or just get go-to distribution out there with the products when it is permissible that we can go into those different areas with thc and those products >> what about the stock price? does it put pressure on you to do more acquisitions

and also how do you think about the path to profitability given expectations are so raised now for these companies to come together >> great question. when the combined kms will have somewhere between the 12 to $15 billion market cap company, as we say, forget about the stock is very important but how do you build a good company? and together we will build a lot of ebitda. i'm a big believer in building on cash. we will drive a lot of cash out of this business there's over a hundred plus million dollars of canadian dollars and synergies that will come out of this business. we'll do over a billion dollars in sales with the combined company. yes, knowing me i will do other acquisitions that will make sense and strategically set us up when cannabis is legalized either from a rec standpoint that we can parlay these businesses into the thc or medical business when that happens but yeah acquisitions

will be part of our growth >> we know your playbook thank you very much. >> thank you very much >> thank you >> nvidia earnings are just out. thank you. and the stock is moving. josh lipton with those numbers josh >> reporter: sara, nvidia reporting q4 eps $3.10 street was 2.81. revenue also a beat. q1 looking for about $5.3 billion in revenue and also about $4.5 billion if you look at the segments 2.5 billion gain in the quarter. the ceo saying in a statement here q4 was another record quarter he says capping a break out year for nvidia's computing platforms. he says the pioneering work in accelerating computing has led to gaming becoming the world's most popular entertainment to super computing being democratize today all research and to a.i. he says emerging as

the most important force in technology stock had been under recent pressure but still up more than 100% over the past 12 months and up about 200% from the march low that conference call kicks off at 5:00 p.m. eastern >> thanks very much for that let's get to julia boorstin who has some more details on reddit which appears to be down for some users >> reporter: it does appear to be down. it is certainly not working for me here in los angeles there are widespread reports reddit is down down detector reports a spike in those problems since just 4:00 p.m. eastern over 52,000 outages reported to down detector since 4:00 p.m. eastern. it is unclear how widespread this is but it does come of course amid a spike in trading of gamestop which is of course a favorite of those wall street bets, traders on reddit. we reached out to reddit for comment. they haven't gotten back to us yet but did tweet investigating. we are currently investigating this issue so many people wondering what is

going on here wilf we'll get back to you as we learn more. >> thanks very much. up next mike santoli looks at how much demand investors still have for equities. we see smarter software delivering cleaner power. emerson's breakthrough technology enables the power industry to integrate renewable energy sources to modernize and improve the electric grid. emerson. consider it solved.

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an update on news we just told you about that reddit is down we can tell you that reddit says it has identified the underlying issue and systems are beginning to recover we'll keep you posted if we learn anything more. an odd series of events after gamestop doubles in the final hour of trade, gets halted a few times, and now reddit goes down. >> craziness once again. nvidia out with earnings moments ago joining us now to discuss, our guest. good to see you. thanks for joining us. first take on the numbers. >> numbers look great. it was a pretty strong quarter, pretty close to a blow out both in the quarter as well as the guide. gaming very strong which we expected i mean, they're selling every part they can have made for them right now. even some upside in data center, gross margins look good. we'll see how they sound on the call but everything looks really solid here at first blush. >> clearly a great run and it is

up after hours because of the strong numbers and guidance. your price target at 575 i guess says it all in terms of whether there is much more room for expansion in the short term. >> they just guided massively above the street so presumably numbers will be going up i mean, we'll see. don't take the target price at any given moment, the stocks had a massive run as you said and things can tend to get out of whack in short periods but in general, you know, they guided well above everything that i can see at first glance at least looks just fine looks very, very strong. we'll see how they sound in about a half hour when the call starts >> just wanted to broaden out a little bit there is other chip news which is the biden administration signing an executive order to review the chip shortages among other things this is obviously a pretty acute issue right now for auto makers and electronics makers but it is a longer term structural one isn't it

how do we make chips in the u.s. in a more productive and affordable way >> so one of the few bipartisan areas of agreement right now is to try to increase the u.s. base for semiconductor manufacturing. the shortages right now have nothing to do with any of that that would be happening regardless especially in automotive would happen regardless of what the u.s. manufacturing base looks like. the auto shortages are happening because of canceling all the orders in the midst of covid last year and it takes the supply chains a while to adjust. we've had some whip saws that would be happening, not the semi guys' fault but to the extent the shortages themselves are focusing attention and jump-starting the debate on what we should be doing in terms of semiconductor manufacturing in the u.s. that is where the discussion can be useful biden is putting out an executive order, you're right, not just for semis but a variety of strategic technologies at least for now to review the supply chains and try to

identify the areas where there are critical bottlenecks and try to address those it will be a very long time. we won't be building massive amounts of semiconductor capacity in the united states on a dime instantly not only do you need to spend a lot of money much more than they're talking about right now you also have to get customers and train employees to work there and it is a huge holistic effort that probably needs to happen if we are serious about it this is a start. >> aim he sure we'll be talking to you about it again soon thank you for jumping on still ahead popular podcast host joe budden finding a new home after leaving spotify coming up we will ask him and patreon ceo about how they are building a platform they say will more fairly compensate content creators as we head to break here is a look at stocks that drove the os umo tn y higher today and cledp reha400 points is almost at the finish line what a ride! i invested in invesco qqq

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we see increased efficiency connected to more comfortable homes. emerson's energy star™ certified sensi™ smart thermostat uses geofencing to simplify how homeowners manage comfort and costs. emerson. consider it solved. take a look at shares of gamestop this is after hours. they're surging again 42%. popping after being halted twice in the final hour of trade the stock was up more than 100%. some reports resurfacing about activist investor ryan cohen pushing out gamestop's cfo we know the cfo stepped down yesterday. we'll continue to follow the story for you mike and wilfred but there is that sort of i don't know if you want to call it a fundamental case but there

is an activist investor there. he has built up a large portion of shares. he has a few board seats he won in january it really helped spark the whole short squeeze. and now the cfo is out but i'm not sure what triggered this crazy move just in the final minutes or half hour of trade today. >> there is no saying what triggered it necessarily maybe we'll find out something some foot steps we can read. but yes. there is a fundamental case for the company being a survivor and being able to turn itself around when the stock was in the single digits, in the teens once it got up to a certain level, above 40, it really did catch flight as this meme momentum story yes, could it transform itself maybe. can it get out of 5,000 store leases i don't know all it has to do but what really matters is there is a spring loaded instinct to kind of let's try to re-run the game and this is what it is. re-running the game. you have new lives let's see if we can make it work lessons might have been learned, theoretically short sellers

looked at melvin capital and had a therebut for the grace of go go i moment. and said i'm not going to size a short any where near the level that could take me out if it goes wrong presumably there are people who are less aggressively short and we'll see if that changes the dynamics as people get more involved. >> we were going to keep this discussion going but instead let's quickly get to president biden about to sign an executive order addressing semi short ajs. >> as well as our national security the resilience and reliability of our critical supply chains. this is a critical area where republicans and democrats agreed one of the best meetings we've had so far and we've only been here about five weeks. it was like the old days people actually on the same page good, bipartisan work has already been done. the leaders of this operation, house, and senate, have already done great work. i want to thank them for their

leadership we're here to build on that and the bottom line is simple. the american people should never face shortages in the goods and services they rely on whether that is their car, the prescription medicines, or the food at the local grocery store. and remember, the shortages in ppe during the pandemic, that meant we didn't have masks we didn't have gowns or gloves to protect our front line health care workers we heard horror stories of doctors and nurses wearing trash bags over their dress in order to -- so they wouldn't be in trouble. because they had no gowns. they were rewashing and using their masks over and over in the o.r. that never should have happened and it will never happen again in the united states, period we shouldn't have to rely on a foreign country especially one that doesn't share our interests or values in order to protect and provide our people during a national emergency that is why one of the first

executive orders i signed as some may remember was to ensure we're manufacturing more protective equipment for health care workers here at home. and today i am shortly going to be signing another executive order that will help address the vulnerabilities in our supply chains across additional, critical sectors of our economy so the american people are prepared to with stand any crisis and rely on ourselves. this is about making sure the united states can face every challenge we face in this new era pandemics and also in defense, cyber security, climate change, and so much more the best way to do that is by protecting and sharpening america's competitive edge by investing here at home as i said from the beginning while i was running we'll invest in america we're going to invest in american workers then we'll be in a much better position to compete beyond what we are doing now. resilient, diverse, and secure supply chains to help revitalize

our domestic manufacturing capacity and create good paying jobs not $15 an hour which we need to do some day and sooner is better in my view but jobs that are at the prevailing wage. we'll spare -- spur new opportunities for small businesses, communities of color, and economically distressed areas i will drive new investment in research and innovation and our work force investing in training and university partnerships that are going to lead to new technologies and new solutions all of this won't just strengthen our domestic policy but unleash new markets around the world and grow opportunities for american business to support their goods we're going to be making these are the common sense solutions all americans can get behind workers and corporate leaders, republicans and democrats. it is about resilience identifying possible points of vulnerabilities in our supply chains and making sure we have

the backup alternatives or work arounds in place remember the old proverb for want of a nail the shoe was lost for want of a shoe the horse was lost and it goes on and on until the kingdom was lost all for the want of a horseshoe nail even small failures at one point in the supply chain can cause outside impacts further up the chain. recently we've seen how a shortage of computer chips like the one i have here, you can hardly see it i imagine, it's called a semiconductor it's caused delays in production of automobiles that has resulted in reduced hours for american workers. a 21st century horseshoe nail. the semiconductor is smaller than a postage stamp but has more than 8 billion transistors. 10,000 times thinner than a single human hair in this one

chip these chips are a wonder of innovation and design that power so much of our country, enables so much of our modern lives, not just our cars but our smart phones, televisions, radios, medical diagnostic equipment, and so much more we need to make sure these supply chains are secure and reliable i'm directing senior officials in my administration to work with industrial leaders to identify solutions to this semiconductor shortfall. and work very hard with the house and senate they've authorized a bill but need $37 billion short term to make sure we have this capacity. we'll push for that as well. we all recognize that the particular problem won't be solved immediately in the meantime we are reaching out to our allies. semiconductor companies and others in the supply chain to ramp up production to help us resolve the bottlenecks we face now. we need help -- we need to stop playing catch up

after the supply chain crisis hit. we need to prevent it from hitting in the first place in some cases building resilience means increasing production of certain elements here at home in others it means working more closely with trusted friends and partners, nations that share our values so our supply chains can't be used against us as leverage it will mean identifying and building surge capacity that can quickly be turned into and ramped up production in times of emergency. and it will mean investing in research and development like we did in the 1960s to ensure long term competitiveness in our manufacturing base in the decades ahead. the order i'm about to sign does two things first, it orders a 100 day review of four vital products. semiconductors, one. key minerals and materials like

rare earth that are used to make everything from harder steel to airplanes. three, pharmaceuticals and their ingredients. four, advanced batteries like the ones used in electric vehicles there is strong bipartisan support for fast reviews of these four areas because they are essential to protecting the strength of the american competitiveness. second, this order initiates a long term review of the industry basis of six sectors of our overall economy over the next year these reviews will identify policy recommendations to 40 of our -- excuse me, to fortify our supply chains at every step. and critically to start implementing those recommendations right away we're not going to wait for you to be completed before -- for the review to be completed before we start closing existing gaps as we implement this work my administration will draw on a full range of american talent

including labor and industry leaders, policy experts, scientists, farmers, engineers, to get their input i'm grateful for the members of congress who came to see me -- republican leaders as well as democrats. they're leading the way. we're going to stay in close contact with members on both sides of the aisle and keep advancing our shared goals everyone has a role to play to strengthen our supply chains in our country. this is the united states of america. we are better prepared to meet the challenges of the 21st century than any country in the world. there is nothing, nothing, nothing we've ever failed to achieve if we work together. and that's what we decided to do today. that's what we're going to do, work together. so i thank you all i'm very optimistic about the meeting we had today with our congressional colleagues and now i am going to walk over and sign that executive order.

thank you all very much. >> mr. president, are you disappointed more of your cabinet nominees have not yet been confirmed by the senate >> i am but i don't so much blame it on the senate i blame it on the failure to have a transition that was rational as you know, previous administration had a significant number of their cabinet confirmed before they even were sworn in that is the tradition. but we're doing fine

i think we'll be in good shape >> what about you -- >> thank you i'm going to be talking to them. i haven't spoken to them yet [ inaudible question ] >> what? i'm sorry? >> have you have you read the j khashoggi report yet >> yes >> doesn't look like he's going to take anymore question he's talking about an executive order, a view into the supply chains of key products like semiconductors and rare earth minerals important for u.s. industry and for national security kayla, it's a bipartisan desire to be more self-reliant. this doesn't do anything, right, with regard to federal spending? it's just looking into it, right? >> it's just studying the system and seeing where weaknesses

might be the progress of this as a stand alone issue signals it's a high priority for the white house it's going to be a 100-day study. many chips take up to 26 weeks to produce so a company feels like the estimate that they have for their demand signals that they need to be investing they need six months from now, they need to go ahead and make this decision this executive order seeks to reduce reliance on places like china for manufacturing. that's going to be costly for the u.s. government to try to get some of those companies to build plants here or onshore, because in some cases it's about 40% cheaper to build those plants in other countries because of the extremely lucrative government incentives offered by other countries that's been the obstacle in the past whether or not bipartisan support can get over that hurdle, that remains to be seen.

we will see exactly where they go the president's national security advisor has previously suggested a stress test similar to what banks go through we'll see what they come up with a hundred days from now. >> long way to go, as say. up next, more on the wild ride in gamestop shares up a hundred percent in the session, surging another hundred percent. it was 40% moments ago in the last two hos,ur it has more than triptripled. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't.

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welcome back there it is again, only up now 91% in after hours trade of course, 104% during actual trade was up 10 or 15% more than that we know it's not a huge market cap. we know that it can be volatile. but this is as crazy as it's been, particularly when you factor in the case that there was huge shortage. >> of the same mag feud. it's a shorted stock compared to the average one, but it doesn't

seem as if the setup is perfectly right the way it was a few weeks ago. it probably tells you that people, you know, kind of got used to this mechanism people are wbidding up the they're paying huge premiums to bet on further momentum to the up side. the dealers are going to be pricing them very aggressively, presumably, so they really do have to pay up and make a huge bet on this. however, a lot of the adjacent stocks are moving, too you have to imagine that people who create these bots will try to seize on the opportunity and ride along this is by no means the same kind of slow building organic stampede that we saw come to fruition in late january, i don't think. this is much more about a hair trigger. they let them hatch, to mix a

metaphor >> it's not just gamestop. we're seeing action in some of the other people stocks, stocks associated with game stock mc is up after hours 20% it was up 22%. nokia up a little bit. bed bath & bond as higher, 7%. what is the interest in these stocks that was sort of the perfect scenario, mike -- >> yeah. >> -- when gamestop surged in january. what's happened since then >> the short interest in general has come down. we only get official short reportings every two weeks some try to calculate it on a more day-to-day basis. these are still shorter than average. blackberry got in the flow of a lot of stocks in the same kind of cluster

it's not all short squeezes. it's a lot of neglected names, low share prices in many cases i think it might be almost as simple as that one thing that has been consistent message out there is that the excitement coming from smaller retail traders was not going to go away it's going to move place to place, but it seems as if this is a long lasting wave that we're riding right now and it's going to create lots of disruptions and excitement in different parts of the market. >> mike, thinking a little more. tesla, the volatility is playing out in bigger cap names. >> right and if you look at others like apple, which was not able to add to the ganins yesterday. people feel like it's fully

valued you just don't have that much connection or gearing to a recovering economy that's really what you're getting penalized for in favor of people just chasing after anything that seems it's in the value index or its cyclical. viacom/cbs, you couldn't give the stock away for two years now at 16 times earnings, people are feasting on it that's what you're seeing cross the board. >> did growth momentum trade gets a little bit of a test tomorrow key earnings out sales force has been one of the big winners. sc has been the resingle yent of the boom, we'll see if that momentum can continue, mike, because i would say some of the outlooks have been cloudy on all sorts of companies, which is to say it's hard to predict what it's going to look like out of

the pandemic >> i think they're difficult dent about that. you don't have to be can clear you can get a mulligan everyone is playing the macro. if it's a reopening play, it's going. after the earnings report tonight. >> we've got, what, five seconds left don't forget to tune in 8:00 p.m. eastern time for the special report for now, we hand it to "fast money. >> i'm melissa lee and this is "fast money. tonight, call it the arc affect, the cathy wood effect. plus shares of moderna on the move after the company laid out its plans for vaccine against the south african coronavirus variant. >> he or she will make their case