we really appreciate it. well, that does it for "the exchange," everybody thank you for your time. before you start your weekend, "power lunch" begins right now ♪ good afternoon, everybody, and welcome once again to "power lunch. as kelly just said here's what's ahead this busy hour power up, because the energy sector is getting a boost to start the fourth quarter, coming off a big september. goldman sachs ramping up its already bullish forecast for oil and nat gas. we will talk with the analysts. plus, what's next? clean energy investment a multiple trillion dollar global movement but many of those stocks have been faltering we will tell you how to play it. energy, a tale of two cities. and the great outdoors the pandemic pushed people outside, pushing up vista outdoor's stock. the ceo will join us to tell us

about his companies next i do love the whiz vibe today. here's how markets are starting the fourth quarter, on a strong footing. dow up 450 points. merck up 9% at last check is helping the blue chips the s&p up about 1%. merck adding seven points, 9.5%. the big winner after its experimental covid anti-viral drastically reduced hospitalizations and deaths. this is a pill you take it over the course of several days, twice, maybe four times a day. you can see the effect across the vaccine complex. they are sinking today moderna down 2%. novavax down 15% pfizer and astrazeneca down. it also sent classic reopening plays higher including cruiselines and airlines 17% gains for united 4.5% for royal caribbean let's begin with the muse out of

new york, whether it is a game changer in the fight against quid meg tirrell. >>cally, these results blue expectations out of the water. scott gottlieb this morning calling them phenomenal, a potential game changer for really the psychology of how we think about this, that there could be a drug that's easy to take early on in the course of infection that could have a big impact the impact was that it reduced the risk of hospitalization or death by almost 50% in people who took it within the first five days of symptom onset this was strikingly positive in a the independent data committee overseeing the trial said you have got to stop this and you have got to file with it the fda. merck said they checked with the fda, which agreed is they are going the file for emergency use authorization as soon as possible how do they measure that 50% improvement with the drug? they enrolled about 775 people and took this interim look after about a monday from the onset of symptoms in taking

either drug or placebo, 14% of people this the placebo group were hospitalized or died compared with 7.3% of those on the drug the safety profile looked to be similar to the placebo group in terms of supply, the u.s. has struck a supply deal with merck to supply 1.7 million course of treatment. they paid about $700 a course. merck is in talks with other governments around the world you would take it twice a day, 12 hours apart four cap actuals in the morning, four at night. and you take it for five days. >> wow you know, we should still point out, meg, that i think it was 7% of the population taking this did still ends up hospitalized chance drops by half, but it's still there. doesn't go to zero on the mild to moderate side of

this, are there implications for that part of the population who might not be vaccinated because they think they are healthier and would want to use this as a fallback treatment in or is this designed for a totally different purpose? >> that is such an important question in order to be in this trial, you had to have at least one risk factor for severe disease age or some kinds of underlying medical condition or health risk and so for folks who might not fit those criteria, it's not clear it will be cleared for them you are going the hear a lot of public health folks emphasizing that vaccination is the best way to keep yourself safe from covid. >> that's a really interesting point. you know, who is actually authorized to receive this treatment, and if you have one of the risk factors, that is a key part meg, thanks as always for your reporting. meg tirrell with the latest. ty >> kelly, from today's hot stock to the year's hottest trade. that would be energy the sector is higher today the only group to finish september in the green the surge in oil and natural gas

prices supporting energy stocks, conventional energy stocks, i guess we should specify with oil near an three-year high opec considering boosting production when it meets on monday. there you see the charts damian corps vallen is head of energy research at goldman sachs. this week he raised his year-end price targets to $90 for brent and $87 for wti. damian, good to have you with us before we get to your price target and what you see ahead and whole question of distributed energy, i want to see whether i am understanding correctly what's going on in the marketplace. we've got supply problems in many, many, many parts of the global economy is supply fundamentally the reason -- lack of it, fundally the reason why energy price versus gone up as much as they have and why you see them continuing to be at this level are there supply constraints in the equation

>> that's an important question, tyler. if you look at energy, i would differentiate power, gas, from oil. in the case of oil, we have opec at capacity, they are not quick to ramp up, but it is still there. on the energy, gas and power side it has been supply to come extent, outages in coal, lng the most surprising driver has been the demand side when you think energy and covid you think people are not flying, not drivings, but the mirror of that is people at home consuming more electricity less services, more industrial activity so, really, power demand this year has surged ahead. chinese power demand year to date is up 13% relative to last year so that faced with some supply issues is really propelling prices higher. now, what is key, though, is supply will become an increasingly bullish factor in the years to come. what we are starting to see that

binding underinvestment. take lng we need that gas, it takes five years to develop the project that's next leg of that energy move from a winter seasonal shock to a more persistent reflation of energy prices for the whole economy. >> energy -- let's talk a little bit about energy underinvestment. in other words, because -- i would guess, because of the push toward cleaner energy, toward non-fossil fuels and esg, there has in the been an incentive to develop projects like the one you mention mentioned which are development and exploration and drilling projects. and i suspect there has been a similar dearth of projects on the utility side i don't know when the last gas-powered plant was built in this country after a period in the auts and in the early part of this decade when that's all that was going on.

>> that's a clear and important driver we have seen investors shifting their portfolio to target esg criterias and goals. and that has less investment for your traditional hydrocarbon sources of energy. that's the first one you can think of it as it's a higher cost of capital you need to attract invests with higher rates of return to compensate for this structural reallocation it's actually only however the second driver in terms of importance over the last several years because this underinvestment theme has already started already, in the previous decade. reflectingmining companies and energy companies overspending for decades. you think about oil and shale it was targeting growth for growth's sake not shareholder concern. so you already had that driving

underestimate. >> let's get a quick thought on pricing. i know you have got a $90 price target on oil. that stands by itself. demand driver. no worries about supply because there is surplus but natural gas you say is in for some volatile days and as we move into the prime heating season, the shortages may make those prices at least be volatile and maybe go higher? am i understanding >> that's right. we are not in winter yet, and yet gas prices are record high around the world that's because we are heading into this peak seasonal demand with historically low inventories. er with not running out yet but it doesn't take much in terms of winter weather to get us to that point. what are gas prices to do? initially, they have to try to look for substitution. keep in mind, energy is all substitutable. we tried coal, run out of that, switch to oil. there is not much you can switch the risk, what we are seeing in china is you would run out of

gas and then have to resort to blackouts. that's a real risk and that even takes even higher gas pricis when you think about the supply risk from russia, normal winter, that's quite conceivable >> yeah. damian, thank you very much. have a great weekend we appreciate your time. kelly. >> with more startling headlines today now coal prices at record highs. after a strong run in 2020 the renewable energy stocks have been sitting out names are down more than 20% this year. joining me now is amitt thacker. it is great to talk to you tell me why solar companies are no longer a terrible investment like they generally have been over the past ten years or so. >> thanks for having me on

we think that, looking at the solar sector we think the value proposition to customers is substantially improved in the past it was really consumers having a preference for green energy when we think about things in terms of kinds of price versus what they paid to their current incumbent utility, value in terms of if they are going to invest in an electric vehicle that's going to substantially increase their electrical usage, and more importantly, as we have seen frequently, frequency and duration of outages have increased across pretty much every utility service territory. we think that people are interested in taking a look at solar and installing a battery system that increases the value of the solar system itself and the reliability aspect of it as well we have people who walk our neighborhood and push solar panels i say how much time do you have

and i ask them all of these questions. because it really is fascinating but hasn't been a great investment a lot of people are bullish on the inverters. why do you think sun run and sola could be a good investment here these business models haven't traditionally performed well >> i think it really comes down to price i think that's one of the things that we wanted to highlight in our report when we think about decarbonization we are not just thinking about removing carbon from energy usage. if you lock at some of the states these guys operate in, they are substantially cheaper now in terms of what the incumbent utilities. and we also think that utility rates are set to rise substantially from here. i think the value proposition is getting better finally, we really do think that having a battery in your home to kind of pair with your utility -- with your pv system is a game changer for the industry it is a reliability product they

couldn't offer before. >> yes. >> that makes a big difference this time. >> tesla now in order to get a power wall i think you have to do a tesla installation of solar broadly speaking the other big name on the market i believe is lg, with its own battery, a little bit smaller, can't hold as much, but obviously a lot cheaper. it has been the one that a lot of companies are using i guess i think about flat panel tvs and how those manufacturers are typically not a great investment i guess i don't know enough about matter makers treschly but where in the solar panel creation chain do you think the most value will be created for investors? again, new entrants have such an advantage to the manufacturing space it is hard to be a good steward of capital the resident, the financing structure, there is a lot of elements going on there. is it the battery names? is that where you think we can really have, you know, huge returns to shareholders? >> that's a great question i think when we thought about

kind of what stocks we wanted to recommend in an energy transition we really wanted to to focus on companies that have products and services that impact end user customers. so in terms of kind of somebody like solar edge or an n phase, yes, they make a battery, but their core product an inverter, which is a high-tech part of a solar panel. i has become the brains of the solar ev system. when you think about ev adoption, if somebody has an electric vehicle, a battery storage product or smart appliances, that is a part of the pv solar that is going to basically integrate all of those different devices. and then in terms of kinds of service, people want kind of high touch your utility doesn't offer you much more than just power and billing. that's where we see the opportunity for sun run and sun

nova >> i am curious to see what happens after this alarwinter it may hasten elements of this transition thank you for joining us today to talk about it we appreciate night thank you. >> amitt thacker on some of the energy transition names. coming up, the outdoors business have saw increases during the pandemic. vista's ceo is here to talk about his next adventure. plus, mek,rc is it still a buy. >> our traders take positions. you can act quickly. that's decision tech, only from fidelity. you can act quickly. hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene

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the outdoor recreation economy has seen big growth during the pandemic. sales of camping equipment, golf clubs, and bicycles spiked you couldn't get a bike this time last year there has also been an increase in the number of people who hunt and that is benefitting a few publicly traded companies. josh lipton has more. >> if you are a hunter, then this is the time of year you live for starting in the fall, millions of americans pick up their rifles and search the woods for big game deer, elk and bear are on the menu vista outdoors says its so-called shooting sports segment which includes rifle scopes to duck calls saw its q1 revenue rise 39% to $463 million. american outdoor brands says its

q1 revenue jumped 20% to 6 $1 million. b riley has a buy on both names in part because more americans are hooked on hunting n. 2020, 18.3 million people hunted with a firearm, a jump of 6%. 6.9 million people hunted with bow and arrow. that was an increase of 15%. matt dunphy of the wildlife management institute says this isn't just about the pandemic and socially distanced activities important cultural changes have been happening, too. for example, more americans maw want to know where their food is coming from. dunphy bets we will continue to see an increase in hunting participation as more americans find themselves and their values, he says n the outdoors kelly, back to you. >> josh, thank you very much, josh lipton. vista outdoor has seen its stock rise about 94% over the past year now they are expanding into golf with a recent acquisition of

joining us is ceo chris metz first a word on golf we know there was an explosion during the pandemic. tell me about your play here >> the interesting thing, kelly is that we are big players in golf technology with our bushnell brand we are the leaders in laser range finder technology. so looking at foresight was a natural extension for us it was a big acquisition, half a billion dollar acquisition, but you don't get many opportunities to buy a leading technology company in a space that's growing 20, 25% at super high margins. so we jumped into it it is going to be a great addition for our bushnell business if you saw the ryder cup last week you saw just about every top pro on the range using the quad system which is the leading product from foresight so really exciting acquisition for us, and really positions us as the leaders in data sec following in the golf space. isn't realize although i did see that shot where it went

right around the lip of the cup and then it came book out. it was brutal. i wanted to ask you about this trend. there is a netflix show, meat eater that people are following with such interest we remember when facebook's ceo mark zuckerberg said he was only going to eat what he himself hunted that year this has been a big trend. tell me how it is helping the grow your business >> steevl runella who started meat eater, i give him credit and others who started podcasts and brought organic farm-to-table out into hunting in what we call field-to-table and people embracing hunting for their meat and embracing meat that they know is not hormone -- not injected, fresh grass raised beef you think about the numbers. they are really staggering josh talked about it a little bit but we have introduced 3 million new hunters last year to

unprecedented levels we have got about 40 million hunters that have applied for licenses and this year, it's up even more off that strong base. >> wow. >> what all of our data is telling us, it's a very diverse audience so we have got a lot of millennials that are very experienceal oriented that are bracing getting out into the field, getting into the forests, and hunting for birds and wild game so super exciting for us. >> but is this the kind of thing, chris, that makes a lot of sense in a pandemic when there is nothing else to do and you are like all right i will give it a try versus something people are going to integrate into their day-to-day lives for the next generation to come? >> that's the interesting part about it we have been back to so-called normal for the past number of months kids are back in school. some schools are wearing masks, some are not people are going back to work. people are traveling so we are seeing people use their recreation time into the

team sports activities and everything else they have always braced yet we see hunting increasing we can't produce enough product. we are opportunity that we have some of the hottest hunting loads in the marketplace like terminal ascent from our federal brand. but we think this is a trend that is here to stay a lot of it is things like netflix and the podcasts that that are getting millions and millions of followers. precovid is when this started and people embraced it and we don't see it going backwards at all. our demand for our product we see well over a year of backlog from folks who can't get it today but want to get into the sport. >> from farm-to-table, it reminds me of high homecoming dance dinner at my boyfriend's house, and i put into a turkey and put into a buck shot and

thought i broke my tooth. coming up, building a dynasty, from the business world to professional sports s a strong partnership the secret sauce to creating an empire? and how long can it last plus, the united stocks of america. equity holdings for american households reaching a 70-year high where is all of this money mi from? where is it going? we will tell you when "power lunch" returns

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welcome back i'm rahel solomon. here's your cbs news update. >> a suspect is in custody after a shooting at a houston secondary store. right now we are hearing at least one person was injured but no students were hurt. once the vaccine is fully approved for different age groups, gavin newsom saying in a news conference in the last hour that a mandate will go into effect for grades seven through 12 after the government updates its current vaccine recommendations. no ruling from a federal judge who heard arguments todays

as the federal government tries to block the new abortion law in texas that authorizes private seasons to sue providers but nbc news says based on the questions the judge asked the judge maybellining toward issuing a preliminary injunction that would stop enforcement of the law while the court case continues. >> thank you very much. let's get a check on markets. we were up 400 points a short while ago. now the dow is up more than 500. 506. a 1.1% gain. merck is contributing today. s&p up 175%. narkds up two thirds of a percent. wti up 1% today. nat gas taking a breather, down about 4% again we have seen more forecasts will crude heading higher not to mention nat gas heading into the winter. let's get to the bond market which hit key levels itself this week rick santelli has the latest for us >> kelly, you know, this morning we had some important data the august read on personal income spending.

one of the fed favorites, overrear core consumption expenditure and inflation gauge. it is the highest in 30 years. you see the chart going back to the spring of 1991 it had the effect of steepening the curve a bit if you look at 30s minus fivest, the 30 year, it's steepened today on the week, 30 years are up we are at 1.48 the ten-year is only up 2 on the week you can see the drop in rates after yesterday's close is bringing the dollar down a bit all things equal, the dollar is still up 3/4 of a percent on the week tyler, back to you >> rick, thank you very much have a great weekend ahead on "power lunch," everybody, welcome to october. thank goodness september is over, and the start of a new quarter. what are some of wall street's favorite stocks going into the fourth quarter we will lay those out next we will discuss the market's direction with two of the best we'll be rig bk.htac

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wall street analysts starting the fourth quarter with

their sights set on a number of stocks they say can rally from here cnbc pro identifying names where 70% of the analysts have buy ratings on the stocks. the top ten right now include gm, paypal, jenner act, aes, and nike joining us with their outlooks for the quarter, ron insan, and michael fehr i am usually flamboyantly wrong but as we go into the fourth quarter i have got my eye on a couple of things of someone rising inflation two are shortages, of almost everything, including energy, which might add up to a very expensive winter rising rates across the board. i am -- and the supply chain mess that means you can't find what you want to buy

michael, am i overdramatizing the problems the economies and the markets might face no, i think you have got it. all of us in this business are either in that camp of having been humbled or are about to be humbled. that's life of an investor i have been flamboyantly wrong several times. no, those are the issues this inflation issue is a real issue. it's running hotter. the supply chain, chips could be out two years before automakers can make the chips they need we have wage inflation that's going up, it is just going up more slowly than price inflation, which means that the end consumer is losing purchasing power you also -- i think the one you forgot, tyler, is this remarkably dysfunctional congress they are fighting within each party. and it is ugly in washington, d.c. as a life long washingtonian, these folks are so angry when

they pat each other in the halcion how they are going to get anything done. october 18th is a crucial date coming up for the government to continue to be able to be funded and not go into default w. all that in mind investors have to try to schedule of down the noise. as they say in the fish market, ignore the screaming and yelling and pay attention to price of fish. >> ron insanaa, react? you have been writing about pan-flation. >> if you dial back to the prepandemic environment where the unemployment rate was 3.5% inflation was still below the fed's target all of the supply disruptions all of these price increases that we see, as far as i can tell are not fully a function of monetary or fiscal policy. they are literally the result of a pandemic distorting the economy in ways we have not seen probably ever. when you look at 72 ships off

the coast of long beach with 500,000 containers cumulatively sitting on board waiting to get unloaded that's not a monetary or fiscal policy issues. when look at disruptions to the labor force. has to do with the pandemic. this pan-flation probably doesn't go away until we conquer the pandemic i think that's a health care policy issue almost more than anything else. i am concern that it lasts longer as jay powell indicated earlier in the week. i just don't think that the typical tools that we would use to counter it, higher interest rates, tapering or some sort of dial back in fiscal policy would have any meaning until these other issues are resolved. >> we have got some breaking news we are going to need to get to that michael, i know you have two stocks you think can make headway against the head winds one of them is abbott and the other one skips my mind. tell me about them michael. >> abbott and donaldson. abbott has pulled back about

10%. donaldson, 15% they make filtration systems for heavy machinery, trucks and everything as we continue to have this reopening, i think you are going to continue to see infrastructure do very well. and abbott labs of course. terrific pullback in that price and a good dividend as well. and jane wells is doing a special on those container ships that are piling up off of california that ron mentioned. i think that's going to be fascinating. i can't wait to watch jane wells report >> jane will always bring something to the party gentlemen, thank you very much have a great weekend, ron insanaa, michael fehr. breaking news out of the fda. meg tirrell has it >> hi, tyler, the fda's advisers are going to be having a missy month. they scheduled three different advisory meetings for the upcoming weeks over the course of obligate to look at moderna boosters, johnson & johnson boosters and the pfizer vaccine for kids ages 5 to 11. the dates are october 14th for

moderna's boost. october 15th for johnson & johnson's boost. they are also going to talk about an hin study that mixed and matched the boosters to see if you could get the pfizer on top of a johnson & johnson then on october 26th they are going to talk about the pfizer booster for kids -- sorry, the original vaccination series for kids ages 5 to 11. that of course coming in before halloween kids might be able to get the pfizer vaccine >> meg, thank you very much. boosters coming your way, perhaps. up next, whether it is a corporation or a sports team, what makes a dynasty last? how do you get sustainable excellence strong product cornering the market or is it all about who you you surround yourself with the team up next, we will speak with seth wickersham about what bill belichick and warren bfet veufha in common. we are back in two

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returns to new england for the first time as a tampa bay buccaneer facing off against his former coach, bill belichick under brady and belichick, the patriots won six super bowls, 17 division titles and created a successful sports relationship and business relationship. one that would make any ceo envious, and it certainly did, for the ceo of the patriots, respect kraft. senior writer at espn, seth wickersham wrote about it in his new book, it is better to be feerds it is going to be one of the big books of the year. it hits shelves on october 12th. we are happy to have seth with us seth, welcome. >> good to see you >> what i am interested in here -- it is great the see you. seth and i used to be neighbors, i should point out i'm right now sitting across the street from your old house anyway, what interests me here is the sustainable excellence that belichick and brady and robert kraft were able to create as a team. what made their business

partnership work a la buffet and amonger? a la gates and allen and so forth? >> yeah, i think the thing that made it work most of all was obviously the single devotion -- the single and ruthless devotion towards a goal, that was winning a super bowl no matter how often they got on each other's nerves they knew that each of them represented the best chance for the other one to accomplish their goals, which was to win super bowls i really think that was the driving force there. i mean, look, these guys, they were, you know, extremists within an extreme profession, a spectacularly unhealthy profession they they figured out a way to make it work because they were united in that goal. you mentioned buffett. there was also this notion of simplicity, the patriot way, within that simplicity there was a willingness to adapt and leverage any opportunity >> let's not liken belichick to

buffet too much. belichick is a notorious curmudgeon, buffett anything but. but you talk about those three men and you say they got on each other's nerves it wasn't just brady and belichick. it was the ceo, robert kraft, who had some, in your book, very peppery thing to say about his coach, belichick he kind of doesn't like the guy. >> well, belichick sometimes doesn't make himself out to be the most likable person. i think robert kraft's role in this is interesting. generally speaking he did a masterful job at it. he tried to keep the band together as long as it could you see these other dynasties, the dallas cowboys, the chicago bulls, even. they can't last as long as these guys did and he did it by always hearing the other one out and acting as a buffer but that doesn't mean that it didn't occasionally come with some managerial challenges

at one point in 2018 he was at a business conference in aspen he was in the lobby of the hotel. he said you hang out here with the most brilliant minds and i have got to go to detroit to be with the biggest he having a hole in my life, my head coach only he did not use he having and he did not hughes a hole. >> seth, it's kelly here this might be -- >> i -- >> sorry, ty. >> go ahead, kell. >> i was going to ask if you could quickly, what would you say to those looking at the performance of brady with tampa bay versus belichick without him who would ask, is this a dynasty or is tom brady just a uniquely talented person. >> well, it's both back to the earlier point. they all worked together because it served the greater need to do so, until it didn't. and like the bill walsh 49ers

and like many businesses, the patriots can be emotionless when they make decisions n. august of 2019, months after the patriots had won their sixth super bowl, tom brady wanted a contract extension to carry him through age 45, his long-time stated goal to play that ong long it was a contentious, very contentious contract negotiation. at one point he considered leaving training camp in protest. and he finally signed what was billed as a two-year teal but was really a one-year deal that allowed him to be a free agent at the end of the season he knew right then that 2019 was going to be his last season with the patriots and we have seen, obviously, that robert kraft and bill belichick, who more than anybody, should know better than to underestimate tom brady, did just that. >> fascinating the points that i take away here are the idea of, why do good

partnerships work? it is joint and single minded focus on a similar goal, on a singular goal. number two, the ceo listened to both people very well until the band could stay together no longer it was like the beatles breaking up, folks. and the game on sunday night is going to be fascinating. seth, i look forward to reading the book it is out i believe october 12th it is called "it's better to be feared". >> i am looking to both of those things as well, tyler. big news from numbers cnbc today from jim cramer delivered right to your inbox with cnbc investing club you can see it right there jim will be sending daily emails write for website appearing -- how does he have time to do all this, appearing on videos on line all to give you unique insights into the market so you will have a front row seat to what jim is trading in his

charitable trust his goal has always been to be a teacher and the investing club allows him to do just that. >> to educate, teach, and recommend -- you can say that one is too risky, it has dividends that i like. we rank everything, we rank what we are about to sell, what we don't like, price targets. kind of like a brokerage house but we don't want your commission we just want to you learn. >> he poentsz out that the club comes at the right time because this whole new class of investors has been flooding into the market. >> it is really good for the younger generation, the robinhood generation that want so much to have fundamentals what are nunds why does something requestg up why is something recommended it is the why? i think the why has been lacking and the club is going to give you the why. >> you can sign up to find out more at cnbc.com swlash investing club or point your phone at the qr code on the screen get all the details there.

after the break, vaccine makers are in the spotlight following merck's anti-viral news looking forward which names are the best bets? our trading nation team will discuss. a quick check on stocks, which continue to edge towards new session highs. we are just off the 500-point mark for the dow back in a moment sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.

welcome back to "power lunch. merck is rallying almost the mirror image of moderna today on promising results on the covid pill that news also sending the vaccine makers lower we ask the team how you should trade this right now craig, which of the names here are you a buyer of >> i got to tell you we're underweight the sector at this time. representing 41% of the space and we are seeing absolute price moves up but poor relative performance against the market

and i'd mention the smaller bio tech looks like a chart that's consolidating sideways and not ready to break out and not a fan of the space. >> that's an important i think analysis because so many investors have been bullish on health care. michael? >> hi, kelly we couldn't be more opposite start with demographics. the population is aging faster than ever and the longevity of life is more expanded than ever and which means that people are more dependent on the pharmaceutical space we have amazing breakthroughs on the vaccine and other drugs tha we'll have the break throughs because of the population. let's move to technology in the space and growth and value rotation from a fundamental standpoint

many of the companies are trading in single digit pes to low double digit pes with dividends with interest rates low with the demographics that we have and with people so dependent on the pharmaceutical space we just see there's much more upside than not and especially coming off the laggard of the space for so long. >> michael sees upside craig sees sideways. we thank you both. for more head to the website or twitter. tyler? >> still ahead, americans are stocking up on stocks. equity holdings are at a 70-year high is that a good thing or not? more on that next. >> and now the latest from trading nation.cnbc.com and a word from our sponsor.

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session highs. a new report from bank of america says that u.s. household equity holdings at a 70 -- please tell me 70-year high pre-great depression stuff >> 70-year highs crazy, right >> yeah. >> the rising stock market had ripple effects and one is growing importance of the stock market to the american household financial well being data from bank of america says that stock market holdings make up around what of total financial assets in the american household, highest level in 70 years. to put that in perspective that's share back in 2009 during the depths of the financial crisis the exposure closer to 34% then go back to the 1980s. the stock market holdings as a percentage of assets is 25%.

you can see that steady climb. the overall rise in the market got a lot to do with this growing share. there's more attention paid by retail investors with the surge in account openings at robinhood, other free trading platforms and what it comes down to is that when we talk about many americans didn't talk about the k-shaped recovery, if more households have more exposure that might bode well down the line right? >> ty? >> dom, do these stock holdings inc include mutual funds >> absolutely. >> so it is not just individual shares >> no, no, no, no. this is stock market holdings overall as a share of the household net worth. just about a couple weeks ago there was a big report on a record 142 trillion. the bulk of that gain was in

increases in stock market values and real estate and stock market value rises were the biggest contributor. >> great and makes you wonder if it will go down again. 70 years ago was 19 50 been a pleasure. have a great weekend thank you for watching "power lunch. "closing bell" starts right now. thank you. welcome to "closing bell." happy friday i'm slns major averages up. we are sitting at the highs of the day in the final hour of trade. >> a wild session in the right direction for once i i'm wilfred frost. good afternoon merck surging after posting positive results for the anti-covid treatment the nasdaq looking to snap a five day