the dow under pressure as the fda and cdc pauses the use of the johnson & johnson vaccine. the nasdaq is higher. we'll have more on that in a moment bitcoin hitting a record high of $63,000, as coinbase has a debut

tomorrow "power lunch" starts right now welcome to "power lunch. down about it%, as the u.s. puts the vaccine on hold. the company sell will delay its roll-out for more on the market impacts, let's get to bob pisani for the details. bob, the nasdaq under pressure. >> it's interesting. the market is saying it's a bit of a problem for confidence, but not much pretty modest reaction yes, they're modestly lower. but they start to move around a lot. meantime stay-at-home stocks, they were up at the open, but again not

that much. fairly modestly, and you can see a couple numbers still on the down side here, but i would say these rules pretty modest here microsoft, nvidia, oracle, all at new highs there's your market leaders. of course, jpmorgan leads the way tomorrow, but they are normally weak. banks typically will underperform as they start recording and for a week or so after. so, no brought implications for the other vaccines those cti reports this morning that we got, there's some inflation, but it's under control. and there are very, very high expectations people are expecting to hear very positive guidance about the reopenings, no highs behind, we don't know what's going on maybe the big concern is expectations are a little too high

stocks are too high, even on decent earnings. that may be th thank you very much, bob for more on the johnson & johnson vaccine pause, let's bring in meg tirrell talk us through what the government has done and what the effects may be the fda and cdc have reports of six rare but severe blood clots. as they look further into these cases, a combination of a blood clot with a low platelet level, both for patients to know about this for people who have been vaccinated, also for doctors, because they do recommend a

different way of treating this condition than you would normally treat a blood clot, which is with a blood thinner, heparin. now we know the cdc group of outside advisers is meeting tomorrow afternoon to discuss this in more detail. we heard from dr. fauci that they're hoping to drill down more, better understand the profile of these cases they're all women between the ages of 18 and 48. daytime at the same time, as dr. fauci said they have not seen the same threats from moderna or pfizer, we also hearions here in the u.s. here's what he said. >> thisannouncement will not have a significant impact on our vaccination program. we have more than enough of

supply for pfizer and moderna to continue the current pace of about 3 million shots per day. >> so, guys, that is the message from the white house right now they say it should not slow down the u.s. vaccination effort. at the same time, they are ms.ing that regulators acted very quickly on a very small number of cases, which they say should bolster confidence here in the safety of the vaccines we are getting. >> obviously they'll be looking at these six particular cases to see if there's commonalty in either the medications the women used or anything in their medical histories. these were cerebral clots, as i understand it, affecting the brain. were any of these fatal? >> there was one report of a fatality among these six cases

so we have also heard about a similar reports in europe for the astrazeneca vaccine, not related to the j&j vaccine as they have followed that there, they established a risk/benefit profile of the vaccine that neighenabled europn regulators to still use it, and recommended a change for people until 30, because their risk/benefit profile is different. we may see similar things shake out here as they better understand the profile of who might be predisposed to this or just make sure that people are aware of them. maybe this will also involved a

re-labeling of the vaccine so some of those now known risks are really printed on the label, and of course there are lots of medicines that we take that have risk of fatality, risk of really severe side effects that occur in very few cases. correct? >> all you have to do is watch cable tv and get to the ads and hear that minute-long list of risks. lots of drugs have risks associated with them everything is a risk/benefit consideration. of course, you are giving vaccines to healthy people we have other vaccines in the u.s. they have a lot of supplies of the mrna vaccines. >> thank you very much, med material

cort >> thank you, tyler. how will all of it put together affect the reopening of the confidence steve liesman has been looking into that angle of the story hi, steve. >> hey, courtney, just for that reason wall street has been doing their own estimates of vaccinations all along, and several we contacted today say they expect the johnson & johnson to have little bearing on their forecast for matt vaccinations by the end of may, and a full reopening of the company by early summer. you can see it's been growing just in the last leg there, about 12% in the past weeks of all vaccinations, but economist dan striden tells me that the at most, if theemoval of the j&j was -- which he doesn't

expect -- in the goldman model, he says supply of mrna vaccis continue to ramp up. morgan stanley's matthew harrison tells me it doesn't impact the overall time line both of these guys tell me we'll have enough months before the government approves administration to them here in the u.s., the concern is it could fuel further skepticism of vaccines in general, which is running high compared to order countries at 25% to 30% of the population courtney >> yeah, there's a lot to unpack here, steve. i believe you said the goldman economist does not believe it will be pulled altogether, but what would happen. what would the government do then what's the going thoughts? >> right first of all, these guys have

about as much information as we all have, and they did applaud the transparency here of the government they rely on what's happened with other situations like this in the past. they suggest that perhaps what happens is a warning label is put on it, certain demographic groups, for example, women may be told not to use it, but it is not their expectation given the information that's public, that the vaccine is pulled altogether mostly we hear between pfizer and moderna, we're okay. the bigger risk is we had some redundancy in the process, possibility that one of those redundancy could be removed, putting more pressure on moderna and pfizer. >> i know we have to go here, steve, but isn't the bigger concern that we have as much as 30% of the country that is very

wary of taking the vaccine at all? >> it's a huge part, and we are higher -- we have more reluctance than other countries, courtney that's an issue. you can see how officials are struggling and laboring to maintain that the transparency and the confidence in the vaccination process through the public -- the press conference they just had and all the other methods, keep confidence up and get people to get those vaccines >> steve, thank you very much. see you soon. >> a pleasure. for more on the medical side of this unfolding story, let's bring in dr. john torres welcome. good to have you with us i assume you've been listening to the foregoing conversation. do you have anything to add to what this pause means? >> you bet i think this pause is something

that people need to understand exactly why they did this. one is the overabundance of caution, which to me gives me good insight into what the fda is looking at and the fact they're taking safety extremely seriously. they're pulling back on these six cases, and 190 million vaccines have been given out and we have six cases of this rare type of blood clot that's happened don't even have a direct connection, but they're looking into it. they narrow it down to the group of women that happened so they're going to look at it and find exactly where they need to go with this. i understand there's hesitancy out there and it will cause even more hesitancy, but looking at the fda, what they do and how serious they are taking our safety measures, compare that to the actual coronavirus itself and getting covid and how dangerous that can be. so, you know, i think that puts it in perspective, hopefully.

>> medicine is a question of risk versus of reward so often, and the grave risk of coronavirus is one thing i take the point this would add to vaccine hesitancy on the other hand, i think i heard dr. fauci say in truth, look at it the other way the fact that the fda jumped in as quickly as it did, six cases out of nearly 7 million should give you confidence that they're paying attention to what's going on in the field, and don't be hesitant 678 >> exactly like you said, there was no red flags with the other vaccines, pfizer and moderna with this one they're not sure of the connection and they're looking into it. i wouldn't be surprised if they come out with a label change, like there's a specific subgroup, maybe women with certain mel histories or taking

certain medications, shouldn't be taking this that's the thing that the fda does we're in the middle of the pandemic, so the vaccines came out earlier than usual, but they didn't take any shortcuts or safety breaks. none of these showed up in human trials but it's the system working, and it's exactly what the system should be doing. taking this pause, this step back to find out why, and then moving forward again. >> dr. torres, i have seen you on "today" show many times when it comes up which vaccine should i take, and you say whichever one is available if i was your patient, would you say, yes, courtney it's okay to

take the johnson & johnson if that's the only one available? >> at this stage i would definitely still say that. one, right now the only ones that are available is moderna and pfizer when johnson & johnson does come back i think the fda will say it's okay for everybody to take it, because it's so rare, or there are certainly people that shouldn't be taking this, it will be a very small number of people, but they're going to give us more information so i have confidence in the fda that they are going to give us the information they need to still say the first vaccine is the best we know the complications are much, much higher than any of the complications from the vaccine. >> dr. torres, we appreciate having you with us today. still ahead, we have more on what the pause means for reopening of the economy we'll speak to a restaurant

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welcome back to "power lunch. check out the price of cryptocurrency right now bitcoin getting ever closer to $64,000, ethereum up about $2300. perfect timing for coinbase to go public, isn't it? it's going to do that tomorrow big questions remain, what will the regulatory policy look like? and will the s.e.c. approve an etf linked to bitcoin. kate rooney will get us started. hi, kate. >> this is a big moment for the industry c coinbase will be the first company to go public, but competition is so far one of the headwinds. the list of competitors has gotten a lot longer recently

mainstream names like paypal, square, robinhood allow crypto-trading it was started back in 2012, the company now has 56 million users. its competitors are looking for a slice of that high-margin trading business coy coinbase is already all entirely from trading fees. reliance is also about afocus. analysts i'm talking to say order are likely to try to come in and offer cheaper guys, back to you. >> thank you very much, kate stick around with us we want to talk about the

regulatory policy might look like the cryptocouncil for innovation hopes to answer some of those questions. gus, thank you for joining us. there's a lot to talk about, but we're all focused on coinbase going public, potentially a $100 billion valuation, which frankly blows my mind. does this make sense to you? >> well, thanks for having me on it does make sense, because what we have seen over the past six months to a year is crypto is at a mainstream inflection point. it's very exciting, but it's hit

the public consciousness in other ways you have seen the crypto art on the front page of the "wall street journal". bitcoin hit an all-time high today, and major institutions have filed with the ftc, so this has resulted in a massive amount of attention and spike in the number of users, and just ordinary people who are sbld in crypto >> so will that etf ultimately get approved this is still a relatively new area of investment >> you know, we are hopeful that the folks that president biden have brought into the s.e.c., including gary gensler, who has been focused on cryptocurrencies

at m.i.t. for the last several years will give the applications a full and fair hearing when they come before him. >> kate, if i can bring you into the conversation, i know in your report, you talked about a race to the bottom. if coinbase's revenue structure is based on the fees, but robinhood is already offering trading for free, what does that mean for the sustainability of a coinbase model >> robinhood had the same effect on the brokerage industry. they came in, offered free trading. in this case they get rebates from some of their trades partners, so they make money on the back end they charge a lot more than what people would charge for stoke trading. for example, right now it does make bitcoin trading more expensive. they may need to trade that for things like security

versus the new -- offer the same thing, so that's a big thing security, custody, things they say right now are proprietary make that a better option. >> what is it that investors need to worry about? >> there are many. thanks for raising the issue one of the reason at paradigm formed with digital assets, square and coinbase is because all of these organizations are very serious about the provenance of crypto, and dealing with regulators not just in the united states, but around the world, on getting on the same page about crypto's promise. one of the issues we have to deal with is misimpressions. crypto has been around for ten years, but even though it's in

the public consciousness now, there were times when it would hit the public consciousness was generally in times of hacks or other problems one of the things that crypto council for innovation is poised to do is clear the fog of those misimpressions for regulators. tyler, one of the ways we did that is by posting a paper by mike morel, a former director of the cia just this morning that debunks a lot of the myths around bitcoin being used for illicit purposes, in fact, turns that around and mike finds that the brought chain that bitcoin is on is an under-utilized tool. saying it's better for governments -- for people to use transactions on blockchains than with cash. >> is that because it creates a

permanent indelible record that is acceptable? >> 100% right. part of our reason for being is to sit down with regulators at the same table and say, okay, there's a mode of regulating that's been around for 100 years. if we try to shoehorn this brand-new technology into that regulatory form, it's trying to regulate tesla with laws designed for the model t instead, we have to do what you just suggested, find the new technology, utilizing the blockchain and how we get governments what they legitimately need, which is the ability to make sure that illicit behavior is pleased, but also leave running room for the incredible technology to be developed in the united states we don't want to crush it with

opaque regulation. >> is it easier to hide the end user's identity in the blockchain than other forms of exchange. >> if you compare it to cash, there's no i.d. requirement when passing a briefcase from one person to another. >> fair enough yeah >> if you look at what the government has done over the past six months to a year, there's indictment after indictment that suggests that the fbi is very, very good at analyzing blockchains. so i think that technology has developed quite a bit. thank you for your time today. >> thank you. johnson & johnson vaccine is put on hold. we'll have more risk to the reopening trade we've been talking about. april, financial literacy month,

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welcome back here's your covid vaccine update there have been no reports of similar issues in south africa, so their pause is precautionary. tomorrow marks the start of the countdown to the summer olympics a top ioc official is fully confidence that the games will go forward despite increases

cases. >> all theprotocols have been put in place, to ensure the public, the athletes and all the others participants take place. and west virginia is registrations for vaccination. courtney, back to you. restaurant stocks are lower today, as fears surrounding the johnson & johnson vaccine puts reopening at risk. with vaccine uncertainty, rising covid cases and labor shortages, could the restaurants face more tough times ahead. head chef and owner of red rooster here in new york, marcus samuelsson, thank you for being

with us here today what are your expectations for what will happen in the summer at your restaurants. what are you seeing right now? >> thank you for having me yes, 2020 was a very different year for restaurants, but you also saw a level of togetherness, right? restaurants coalitions were created, and as we -- the east coast with warmer weather, outdoor patios are now going to be busier than ever. so i do see consumer confidence coming back. i see people going out, and indoor dining is still a struggle, but i do think that outdoor patio, we will seen it better than ever

it's also giving life to the city. >> have you seen a correlation with the vaccine rates and patronage at your restaurant i have to tell you, i'm still kind of nervous to go out. so i haven't done it yet. >> it's definitely -- the vaccine and consumer suggests confidence are very much linked, right? especially with the outdoor value to this, but, you know, as she w chefs and we have -- you know, in our restaurants we created matching fun, you know, independence restaurant coalition got together, so there is some sign of hope, though

there is ---ing there some sign of light at the end of the tunnel it's very challenging, very difficult, but i think chefs and restaurant deurs are -- i do think my community is able to do it let's talk about, if we can about labor i was a server once myself are you able to attract enough servers to serve the customers that are coming, or is that a bit of an issue now with the extra extension to the unemployment benefits? >> well, to me it's not -- they're not necessarily linked i think the package was needed, it's helped a lot of people, but

the labor pool out there, you know, you've got to figure out different ways of working it there's more steps to service today than there was pre-pandemic, but like we took a position to not be open for lunch, right we focused on one shift, the dinner shift, only, and everyone is figuring out what is best for them takeout has been a big part of revenue centers, where there's so i think everyone is thinking about how to work. our restaurant, our community, our staffing, yeah, it's tough times, but i know -- i'm always going to bet on my restaurant

comm community. >> i like the positivity marcus samuelsson, thank you so much. >> court, get out. be brave it's all good. we went out the other night, we have a little date, my wife and i, lovely. >> ooh, nice. to the bond market we go hey, rick. >> hi, tyler let's look at an intraday of 30-year bonds. right around 7:00 eastern, you can see the effects of johnson & johnson. at 8:30 eastern you see the effects of the data. you see a huge effect. that was the drop in yield, because we had a solid 30-year auction. you can see where we need to go, right around 160 if you open up the chart to the

end of january, you can see we started consolidating just in the last three weeks we were going up pretty much right to the end of march. 160, we haven't closed below since march 11th also had a lot of action this morning. look what happened at 6:00 a.m. eastern there. if we move that chart to three days, you can see we have to hold at 92 well, we haven't we traded underneath it. so right now we're the close at the current level, it would be a 3 1/2-week low tyler, back to you. >> rick santelli, thank you. the the pause in the johnson & johnson vaccine, we are seeing bigger declines, wer,n the airlines like american and delta we'll tackle the airlines next on "power lunch.

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welcome back american and delta are the worst performers. i'm curious how this j&j news could be. >> i would take a deep breath. the united states along with the uk have been among the best performing countries 75% of 65 and older. and we diversified our risks among the three major vaccines j&j represented roughly 5% of doses so far

sorry to have to interrupt we're going to listen to president biden. >>it's been a painful week, yo know with the losts we've had. to lose reed haysings, it's losing a piece of me and also daunte wright in minnesota, the shooting that resulted in his death, and in the midst of an ongoing trial with george floyd and we don't know what the verdict will or will not be there.

when we took office, i talked to jim about this, i signed the executive order has had a focus of dealing with equity not a joke not only -- but wealso have an and you have lot of things we have to do cedric said the thing that would always drive him crazy is everything wanted to talk about equities, wanted to talk about prison, that's part of it. but -- but it's about earning a living, being in a position

where you have economic opportunity, so i look forward to discussing after these priorities and the goals of for the community, but the goals that are good for every comm community. >> and i think we can make a significant changes. in the last bit of legislation, we reduced child positive significantly. anything, we have a lot to talk about, and i'm looking forward to this meeting with the congressional black caucus i think we'll get a lot done, so

thank you all. >> thank you thank you. >> reporter: what can you deliver -- >> a lot, and i'll tell you later. let's go people on the vaccine is i told you all, i made sure we have 600 million doses of the -- not of either johnson & johnson and/or astrazeneca. so there's enough vaccine that is basically 100% unquestionable for every single, solitary american thank you. >> all right president biden wrapping up with an answer on the vaccine news of today, reassuring the population that there are going to be ample vaccines for everyone. he's meeting with the members of the congressional black caucus during an extraordinarily timely time as the country confronts

continued racial unrest, traceable back to the shootings in the minneapolis area. as we move on now, earnings season really kicking off tomorrow with some big banks goldman sachs, jpmorgan, wells fargo. we'll also hear from pepsi, delta, united health on thursday expectations are sky high can the numbers live up to the hype that's next on "power lunch. and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> some people say buy and hold investing is dead, but there's nothing wrong with that strategy as long as you this buy and forget about it. it's important to make sure that your portfolio doesn't become overly concentrated in one stock or sector due to market appreciation so don't forget to rebalance your portfolio every six to 12 months to maintain your target allocation i'm randy frederick, and schwab is the better place for ads. trer

earnings season is upon us and the expectations are really lofty. the s&p 500 maybe see its strongest earnings growth since the third quarter of 2018,

projecting a surge of 25% from a year ago, with the biggest owth coming from consumer discretionary and financials our next guest says the u.s. economy is flat-out booming. let's bring in lawrence gollub more than 35 billion in capital under management lawrence, always great to see you. you see this as an incredible blowout quarter for earnings what are you looking for >> we see from actual results in january and february the biggest earnings growth year over year we've seen in our entire index so for the first quarter that implies public companies will be even better because the march 21 over march 20 comparisons are much easier because march 20 was covid impact it's a boom. it looks like a post-war economy and the victors optimistic free-spending environment. we're seeing margins increase. you still have certain sectors

badly impacted by covid. they're not going to be blowout compared to last year but they're improving as well. >> you see hospitality and travel among those, among those that might not participate do you see -- i guess we can guess what's driving this resurgence it's the reopening and the better position that we're in. do you see this profit growth as sustainable over the next several quarters or even longer term >> i think it's definitely sustainable for this year. you've got almost $2 trillion of excess savings since the beginning of covid from people who continue to receive income or receive government benefits and weren't spending you've got the $900 billion stimulus bill that came in in december you've got the $1.9 trillion biden stimulus bill which is barely starting to hit the economy at all there's probably some double counting in there, so instead of calling that $5 trillion, call

it $4 trillion that's an enormous stimulus. we have seen time after time when gasoline prices come in some consumer spending goes up. extra discretionary spending where people the $1,400 per person is like every american is getting their gasoline for free for the next 12 months. it's going to have a very substantial impact on demand and it's going to lead to very fast growth the one caveat is will companies be able to staff up to take advantage of it from a labor point of view. >> lawrence, i feel like there has to be more than one caveat you're talking about a lot of positivity as we look at the economy continue reopening but there have to be some risks. what about inflation we got the cpi number this morning. how are you looking at or factoring in how inflation plays a part in the economy right now? >> well, today's report is in

some ways almost startling i think if we didn't have the j&j news we might be talking about it there's an annual rate of 7.2%, hig highest since 2009 when you hear the words inflation at 7%, sure, it's one month but that's really enormous on a year over year basis we're 2.6% next month it's going to be higher and that's just math. it has nothing to do with what's going on in the economy. a year ago in april of 2020, cpi was actually down about 0.7% we know it's not going to be down with march up 0.6%. w we easily are looking at 3.5% and possibly as high as 4% inflation for april. will that kick off wage inflation? we've got a lot of bottlenecks in the economy

think about the increase in shipping costs and concern about logistics that came from the panama canal being closed just a few days it's not just shipping, it's it's corn, up 40%. soybeans up 50% in price the economy is booming, but that doesn't mean we have price stability. so we really have three paths that could happen here one path is everything works out fine the other is the fed steps in and impacts that. >> lawrence, great insights as always fabulous to see you. see you again soon, i hope. >> okay, thanks. thanks for having me. >> we appreciate your time today. let's look at the markets as we get ready to hand it off to sara and wilf. the dow has been taking it on the chin but it's really just a little nick. it's a shaving cut, not a punch to the chin. it's just a little nick d down 0.14% the russell 2000 down a little bit. earnings season gets way under

way tomorrow as we look at some of the banks, court. >> that's absolutely right, and financials are the biggest losers when we look at the s&p sectors ahead of that but we'll see what they have to tell us when those earnings cross the tape. >> courtney, always good to be with you thank you for joining us today >> good to be with you. >> "closing bell" starts right about now. sara, wilf, take it away. >> it certainly does welcome to "the closing bell." i'm wilfred frost along with sara eisen a mixed picture on the back of key inflation data which came in above expectations the nasdaq around 1% hire higher johnson & johnson is weighing on the dow after the cdc recommended a pause in the administration of the company's vaccine out of an abundance of caution following blood clots in six women who received the jab that's leaving investors weighing the stay at home versus