with the mega cap trade, it's been apple, microsoft and alphabet that have done really well one notable one that's not mega cap-wise is tesla still down for the week. >> thank you >> thank you for watching "power lunch." >> "closing bell" starts right now. welcome to "closing bell." i'm wilfred frost. the dow and s&p on track for their best two-day stretch of the year. >> a celebration i'm sara eisen let's look at when's driving the action technology leading the charge. nasdaq up almost3 paterson with gains for apple, tesla and intel more on those straight ahead. dr. fauci saying omicron is quote almost certainly not more

severe than delta and glaxo said the treatment is effective oil marching higher today with a boost to the energy sector up now more than 3% for the week. >> we will be all over the rally throughout the show and also ahead two retail ceos give us a look into the consumer, supply chain and inflation. we'll speak about what they see in stores and online and given looking forward so much is the pitch is up there, ian bremer will join us with the first take on the meeting between president biden and p putin. >> let's straight into it. strong comeback. mike santoli tracking the action and josh lipton with the rally. >> mike, start us off.

led by technology. >> it's very inclusive with a rally it is all hard for the big technology stocks not to participate in there if you take a look we are back on the trend somewhat. raced right back to the levels of november 5th. strong jobs report and riding the streaks and seemed like time to cool off. it cooled off with this challenge we have been in for a while. that's arbitrary and kept to it as we have gone through the little rebound off 5% pullback a couple things didn't happen. we have not gotten incremental worrisome news ant the severity of the new covid strain. we have not seen the forced liquidations that we saw late last week continuing into this week and so oversold that the absence was enough for the springback all things together, credit

markets improving. things are place and all we have done is a round trip in about four weeks yes it is a tech driven rally today but i'm interested in the global recovery trade. home builders with help on the rate side and demand for homes semis, huge run today. seems like too much of a hot chase in semiconductors today. up 40% and then the commodity index up almost the same amount and checks the box saying how oversold is the nasdaq showing this chart of nasdaq stocks that are down either 20% or more 50% half of stocks down 20% from an all-time high and then 30% of

all stocks down 50% on the nasdaq compares very favorably with the sell-off in 2018. doesn't take us up from alm-time highs but burned up like the rally of this week. >> pretty much everybody up right now. mike, if you look at the wall of worry, concerns out there, omicron variant, federal reserve changing the policy and the tune, china, the debt ceiling. so many that it feels like here we go again. the markets climb the wall of worry and major question marks. >> always. there's literally every moment in time you could give me a list and the best thing for a bull market often is the threat overstated or effectively not powerful enough to cause issues. keep in mind if the market's

down 5% it means it's taken trillions of dollars of market cap off the top of the market and not saying that means it's resilient to all the threats i think the direction of surprise on omicron is if it is causing restrictions and lockdowns. >> thank you up 3% on the nasdaq as we stand. let's get a break down of what the movers are there josh >> let's start there with apple. morgan stanley weighing in here raising the price target to $200 saying apple should benefit from a flight to quality especially as upside from new product categories gets priced in. apple hitting a new high in today's trade now up nearly 30% in 2021. tesla worth watching ubs hiking the price target

saying that stock we know the laggard rg 15% of the november high intel confirming plans to list global eye and the stock is starving for catalyst. year to date up about 5% back to you. >> thank you for more on intel and the big chip rally let's bring in ed schneider on the news line what is mobile eye worth >> that's a very good question probably talking given the valuations and heard with the stories which include autonomous driving probably in the $40 billion range. it is a smart move on intel's parts. so capital intensive and need to strengthen the balance sheet. >> what kind of investment will mobileeye be i remember when they were public

before intel took them out and there was excitement around the ipo. >> any firm whether tesla or any firm doing significant work in electricificatoi n of vehicles is getting -- you have enthusiasm in the bull markets it's a smart move because valuation inside the company is a nothing. it is not really core to the business model doesn't really contribute. $300 million in revenue a quarter and not getting juice from it internally so monetizing it and strengthening the balance sheet which they need is a smart move. >> i get that, ed, but for how long just a one off share price jump? already off the session highs or a long term revalue waegs of the

multiple applied to the entire stock? >> well, you are not going to get a revaluation of intel until they show some material financial progress towards a turnaround and can't happen in the next year or two and refreshing your memory trying to rekindle the fire they want to try to at least achieve parody if not take lead and three years behind easily and falling behind in process wars and want to be a foundry. that's huge orders really difficult to do especially for a culture like intel and what you face is massive sea change in the intel fortunes that requires a huge amount of cap x. they don't have it and don't have the money now and can't generate that capital so they have to monetize mobileeye

i wouldn't hold my breath for a revaluation in 12 to 18 months but if they get there they have to get more capital and this is the way to do it. >> this is a bigger financial cushion to invest and catch up i guess. what kind of cap x levels do we see in the industry? how much does it take to catch up >> they forecast 50% increase in xap x next year. it won't be a one-year thing they have to do it for several years after that intel has not shown proclivity to retake the lead once it's lost and can defend one or they could and lost that eighty so there's question marks spending the money is one thing. executing on the plan is another. they have not shown an ability to do that so in my view and a lot of analyst's views the question mark is just because you spend

money does that translate into parody much less a lead? we are skeptical we'll see. >> very quickly, ed, broad thoughts on the massive nasdaq strength today >> yeah. kind of amazing really people are breathing a sigh of relief of course it remine me i was there in '97 through 2000 when the bull market occurred and saw the pattern then lows followed by higher highs and the valuations echoing that now too. i'm fairly skittish of the big picture overall but you can't argue with the bull market for as long as it lasts and lasting into 2021. >> nvidia up 7% right now. all of the stocks are soars. which one got the biggest discount amid the selling in the

last few weeks >> think about this. what's the retail component of the nasdaq at this stage very high. and you have seen this year alone some of the things that had gone on that's crazy you get people playing the rebound from covid with the personal funds between that and the computer trading you see the stocks just rocket off of bottoms. the question becomes do you have the economic strength and the financial strength to support the valuations if times get tough? i would take you back to covid or even before that. quantitative tightening of 2018. the highest valuations hit the hardest. bread and butter names texas instrument is not a high flying stock that people talk about a lot but in terms of blocking and tackling and really

solid cash flow and financial performance is one of the best look at the stock through covid and through the quantitative tightening so from our view what's happening now is getting bubble valuations, a lot of euphoria. people looking to make great gains off of what are historic sell-off the question is will it last when things get tough what will happen with the valuations you got to be wary about this. >> thank you for joining us. good to see you. >> my pleasure. after the break cathie wood's ark innovation it of down sharply on the year. about the new etf she just announced next you are watching "closing bell" on cnbc.

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welcome back cathie wood's ark innovation etf jumping. however it's been anything but smooth sailing this year down around 20%. today wood is announcing a new fund focusing on esg investments. kate rooney has the details. >> this is the second new etf in the past few years ark transparency etf it starts trading tomorrow this is a play on esg investing.

you won't have a cathie wood stock pick in there it follows the transparency index a list of 100 companies scored independently on transparency. ark says that those companies that rank highly there lead to more consumer trust and more long term growth potential and will have zero exposure to chemical or fossil fuel industries alcohol, tobacco and gambling is excluded you have cloud flare, bloom energy, tesla, spotify and nvidia it's a rougher patch for cathie wood they're bouncing back today why year to date all but one in the red as investors rotate from growth back to you. >> tesla's on the top of the transparency index >> it is an esg play. >> i know. this is a transparency play? >> you could argue elon musk is among the more transparent

might be too transparent. >> you couldn't argue but i wouldn't take that side. >> nike, too it is interesting for cathie wood not necessarily her picks but index tracking esg plays. whether to trust the strong two-day rally and where the s&p is heading into next year. later rare interview with american eagle ceo jay shottenstein apple takes the top spot rallying almost 10%. 10-year yield up there and higher as investors sell the safe havens. intel up off the highs and s&p 500 overall makes the debut i think. ro is up 2% today having a stng day best since march we'll be right back.

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stocks are surging for the second straight day today. s&p 500 and nasdaq on track for their best daily performances since march. joining us is laura. first and foremost, your take on this very strong rebound over two days is it too much too fast or the start of a nice run into the year end >> look. it's hard to trust a move in the market this late in the year we have the thanksgiving holiday spoiled. if you're a longer term investor i think the news flow is reassuring in tells of the omicron variant and had a 5050 target on the s&p for next year and told people to be patient. we think the virus is pressuring value. we ultimately do expect a continuation of this value outperformance trade into next

year the economy still looks like it's set to be hot and we think investors buying the dip are responding to that. >> are you fearful of a big pullback some point in the next 13 months? would that be more likely than not? >> so look i would say i'm not in the doom and gloom camp we worry a little around volatility in forecast season in january and february and investors start to price in risks late december. we flag to people looking at the supply chain expectations most investors are expecting mid year improvement. if they talk down that expectation it can generate surprises. i don't see any kind of material growth scare coming up. >> it says here in the note your supply chain scorecard shows modest signs of healing. what's the investment to make

off of that? >> we are look ing at a lot of things commentary and sentiment and news stories and social media posts and seen that flip from negative to mostly positive. modestly positive. mostly positive. we see if you look at the regional fed data the delivery times are worsening but with the black backlogs they're moderating we flagged on freight rates is tends to be driven by covid trends globally and we said impro improvement on the freight rate side the virus worsening could speed boo the outlook. >> what do you say the people that point to where market valuation multiples are at or

market cap to gdp levels that people point to and raise the question as to whether we're far too stretched to the upside in an environment to see both yields rise and stocks fall at the same time? >> i think if you any about equity market positioning is it is all-time highs relative to history and tends to core late well with cpi. so the backdrop is supportive of high equity positioning for the time being valuations are tricky. we still think stocks are the best game in town. if you look at equity valuations relative to the fixed income market our favorite stat is tracking at 46%. it's not as favorable a test as a few months ago

>> laurie, good to see you thank you so much. >> thank you for having me. shares of starbucks are popping today and tomorrow a key vote count in the employee unionization effort. the latest is next latest dr. vin gupta who advises companies on the late ets on the omicron variant and how to navigate the virus 1.48 on the 10-year.

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welcome back shares of starbucks rallying today and tomorrow is a big step in the effort by some employees to unionize. kate rogers has the details. >> siding with workers looking to unionize in buffalo, new york, allowing a vote count of the 81 worker just starbucks wanted this to go to a regional vote a move to typically favor the employer the ceo kevin johnson said we feel strongly that all partners in buffalo should have a voice in the elections this is a level of uncertainty and respect the process and independent of any outcome in the elections we stay true to the mission and values workers united accused starbucks

of straying from the values. if successful this would mark the first unionized location of star bugs in the u.s starbucks ceo will also be on "mad money" tonight at 6:00 p.m. eastern. back over to you. >> we certainly will be tuning in to that thank you. speaking of cramer, jim is hosting a special event this thursday to share the 2022 outlook. join the investing club. or scan that qr code on the screen. >> did you see the kellogg's workers keep striking. the deere workers made a deal but the effort to labor is picking up steam. time nor a cnbc news update. >> thank you let's talk ant what's happening this hour. the outages caused by amazon's

aws clouds service appear to be getting worse and trying multiple solutions and cannot estimate when services fully recover. reports say the problems are halting delivery operations and leading warehouses and drives offline. kellogg's saying it is forced to hire permanent replacement workers after workers rejected a new labor contract the shares down a percent. former trump strategist steve bannon will go to trial on contempt of congress charges next july. and some robbers having sec thoughts about the holiday heist. an 8-foot christmas tree stolen over the weekend

this morning the tree was returned with an apology note and said they were sorry for the immature act and signed the note idiots sara >> that's an unlikely ending. >> yeah. it is. >> thank you we have just under 30 minutes to go before the bell. very strong rally. best day for the s&p since march. for the russell 2000 up 2.5% best day since july. a rare and exclusive interview with the chairman of american eagles outfitters and weathering supply chain disruptions and much more. a check for you on bitcoin up today. almost 3%. back above the $50,000 mark after voluntariatile days of tr over the weekend

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retail certainly taking part in the broader rally xrt retail etf up almost 2%. the names is american eagle outfitter. rallying by nearly 40% let's bring in the chairman and ceo jay shottenstein joining us in a "closing bell" exclusive interview. welcome. >> thank you. >> you've had a strong run coming out of the pandemic the stock, the performance, thanks to consumers getting back out again. just remind us where you are in terms of the activity and the sales relative to 2019. >> we are stronger this year up around 42% comps. we just came off a great third

quarter. record earnings and record revenues, too. >> airy is a big part of the story. love the positive body image this is not a new question but perhaps it is new in light of the fact that victoria's secret did really well as a public company. is that a consideration for you? >> right now we are one whole company and plan to stay one company. so it's working well together. >> do you think investors are realizing the value there of the brand which is growing faster than the core? >> we try to -- when we have the earnings call we try to spin it out to have a better understanding of it.

as you said we were part of the body positivity movement and great company and culture over there. >> talk us through what you doing on the logistics side. >> well, you know, we're very excited about that area. we are acquiring a company called quiet logistics, a game changing company in supply chain area and basically what we're going to do is take an expense area and turn it into a profit we see a big opportunity in that area. >> is it going to happen soon enough because the supply crunch is happening to you and everybody else now you are impacted by the vietnam closures are these okaacquisitions going

help >> we have been watching for a long time. i would say 98% of the merchandise the way we want it and new merchandise coming in there. if you go to the stores they're full and look great and great selection and fresh goods coming in we didn't get too badly impacted by the closing of vietnam in the far east we're fortunate. >> more broadly -- >> -- impacted. >> more broadly, do you feel like the worst of the supply chain issues and perhaps any price pressures that might create is behind you or bumpy quarters ahead >> in this business the last three businesses every time you think something is behind you something new pops up. the future i don't know. but one thing we did learn is to

be agile in this business. you have to make decisions and move fast and we have the team and the last two years demonstrated the ability to get things done in all types of circumstances. >> i never bought so many jeans in my life i had to throw out the old news and the silhouettes and the trends totally changed how long does that last? >> i think it's a last for a while. one thing we did at american eagle over 30 years is really become the leader of the denim business and the ladies denim today is number one brand. 15 to 25-year-old and also number one brand so we work hard on that. we brought great designers in there. the latest finishes and fabrics and latest silhouette styles and

it doesn't change. we add to the mix. and fashion changes very fast right now. it's a very exciting too ime fo fashion. >> no doubt. i was watching the interview of april predicting like many we talk about the roaring '20s coming out of the pandemic and i wonder if you still feel that's the case given the consumer and economy is strong and also bee hurt by inflation and supply chain and these new variant concerns. >> i think that the amazing thing is despite what's going on everything is strong but imagine if all the stuff is behind us how strong it could be it is amazing how strong everything has come out and it shows the strength of the u.s. customer look i think we are very close to

having between the new pills coming out and some of the new vaccines coming out to have this thing behind us in a safe manner and people will be comfortable and get back to normal. >> does the mall survive >> i think the mall has survived despite what everybody said. people find out that if you are an online business strictly you need retail stores it is our job to get designing experience whether it's online or in the store exciting experience and part of the challenge, a good job on is seamless between the online and in store business. >> jay, good to check in with you. thank you for joining us. >> thank you. >> ceo and chairman of american eagle. a c suite shake-up of american airlines.

that's next. cnbc is hosting the financial adviser summit look at the key investment themes for the year ahead. to register go to cnbc events.com/fa-summit we'll be right back.

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year and dr. vin gupta advising amazon and others will join us how companies to navigate the latest vaccine man date just a lot to come in the second hoir of the show but first with 12 minutes left we are in the "closing bell" market zone mike santoli is here to break down the trading day and steve weiss from short hills capital, as well. good afternoon to you, steve stocks rallying. tech out performing. nasdaq up 407. earlier today goldman sachs ceo discussed the outlook for the economy and the impact from the virus. >> we are going to continue to find a path past the pandemic broadly. this will be indemonsic

>> in terms of what we see with the market rebound wow do we get back to record highs this week. >> most of it is back. that's a crucial point here. mostly flat for much of the day. that's worth keeping an eye. >> steve, are you a buyer on the weakness >> i have not -- well, i haven't been a broad based buy every i cut my position down a week before only place i bought was in financials i bought goldman sachs, for example. and then i also shorted the bond because when you got down to 1.35 yield that was just way too low. so that's the moves i made haven't made any others. i don't think we're out of the woods yet and got the -- >> overall market?

>> both those can be very damaging. >> what are the chances do you think of a 10 to 20% pullback in the next months? are we past that people took some changing positioning. we lost steve there. maybe we got stooe back. have we lost him >> one air pod is out. one is in. >> i was getting a lot of feedback it turns out it was your end and not mine there it is again. >> what are the chances of a 10 to 20% pullback in the short term >> i don't think they're very great at all 10% to see and not fell swoop. you have to be rumplestiltskin to understand that the fed is not going to increase the velocity of the tapering and

then forward rate hikes so i think that could still dislodge the market a little bit for people sleeping but overall it is okay. returns won't be as they were going forward but i think they can be robust given where rates will wind up. >> let's hit intel jumping today after announcing the plans to take the self driving mobileeye unit public. intel ceo joining cnbc "squawk on the street" to discuss the merits to list separately from the parent company. >> this is leading in a powerful technology category and built a full stack of silicon, systems, software the mapping software the whole risk management system they have been unquestionably creating this category and the

only company close is tesla. in terms of capabilities. >> clearly the market likes it shares responded well and maybe sold into strength a little bit there. there's the core business to deal with and a great move to monetize this and could be worth $40 billion. >> sure. >> still got to deal with the cap x, spending needed to get intel on track with the competitors. >> absolutely. it makes so much sense $212 billion is intel's current market cap su super cheap. never going to get the market to reflect the value of mobileeye in intel and makes sen where shareholders participate in the upside of mobileeye. who knows what we'll see down the road maybe see ibm carving red hat

out. but the market doesn't really give you credit for it. >> american eeg grew aerie so fast is that value realized inside american eagle >> at a scale that might be a better question. >> let's talk airlines pulling back in the last half hour or so american airlines announced the ceo doug parker stepping down at the end of march. hey, firl? >> for 20 years doug parker is the ceo. the last eight american airlines but parker announcing to step down as ceo on march 31st. he will be chirm the replacement is long time lieutenant robert isom to be the ceo of american airlines

starting march 31st next year. prior to that he's been the president of american airlines since 2016 and if it seems like a long time to be president before being elevated parker said the retirement would have happened a couple years ago were it not for the pandemic a year or two? >> most likely we wanted do get through the integration. the last thing to do is a labor contract done in early 2020 and then the pandemic came and had to get through that and we are. >> if you take a look at american airlines shares back to when it came out of the bankruptcy in 2013 why are we doing that? because doug parker ceo of u.s. airways at time brought american out of bankruptcy, put them together and ceo since came out at $25 a share and now it's trading at just under $18 a

share. back to you. >> phil, thank you steve, interestingly travel stocks broadly pulled back in the last half an hour. most of the airlines now in the red for the day what's your take on the sector and american and the ceo change? >> first of all airline stocks you don't invest in them with a high cost fix base and just capital expenditures are just -- they make them rentals not ownership. in terms of the pullback, the market's driven by the variant that's thought to be benign. and that's not known i think it's premature to go back to the airlines and apparently the market thinks the same i would like to be on the sidelines for those. there are better areas of the

market to play. >> yes airlines, hotels and casinos lower right now with the omicron rebound yesterday. restaurant stocks getting a boost. jack in the box taken to buy after acquiring dell taco. mkm upgrading starbucks to buy and then advises vef investors to buy weakness in the stock and tim horton's and justin bieber collaboration with limited edition flavors of donut holes and merchandise like tote bags and fanny packs. pulling a page out of the mcdonald's travisscott seen the restaurant brands partner with celebrities bieber had successful ones like croc. >> $17 million in market cap today?

not sure about that. the stocks are coming in quite a bit. going to grab some consumer names at a discount here 15% off the high casual dining stocks, brinker for example is hurt bad. >> just in terms of the overall market levels we are positive now for the month so far for the nasdaq 100 ne nevada thought that a couple days ago did we get the flush out for room to run? >> mostly reflects how stretched we did get and comprehensive the sell-off was it was spring loaded because of i think people clenched up into the weekend. mechanical factors the market on slippery footing seeming like the deleveraging going on and once that lifted epa you have the seasonal

factors. they're still having people to think to reload for a year end run. again, we are flat basically since 10:30 this morn jg repriced higher. we'll see if there's more to it and burned up the fumes of the oversold condition coming into the week. >> internals as soon as the headline? >> just about. slipped slightly a lot of people have monitored the up versus down volume for a 90% upside volume day and not quite going to get there but still very, very good and absolutely a strong breadth day. inclues i rally. mega cap nasdaq stocks doing more than the share today. two-year note yield is worth glimpsing with a high for the year which does mean a few things one the market's fully pricing in a couple three hikes by the

fed next year. two, time is passing and two years from now is getting you fully into the period when rate hikes are in and the market seems to handle that piece of it at least even long term yields did not come up. volatility index falling in line down 13 points off the high from last week and a good spike on the chart. should ease lower if the market stabilizes into year end but going up it can only go down so fast. >> having pulled back in the final hour of trade we are now rallying again a little bit into the close. highof the session up nearly 600 and now 500. 1.4% nasdaq up 2% nasdaq composite up 3% technology comfortably best sector today all 11 sectors are higher once again two days in a row. energy, consumer discretionary,

financials around 2% and a resoundingly positive second day in a row rebounded after last week's volatility. yields higher today. we have got decent gains in oil. up another 3%. up 8% now across two days. as the bell goes the s&p 500 up 2% dow up 1.4%. the nasdaq up over 3%. ♪ strong finish to an overall strong day of trading. welcome back to "closing bell. i'm sara eisen with wilfred frost and mike santoli coming up on the show earnings from toll brothers, stitch fix and how big business to respond to the omicron threat. talking to a top doctor that advises companies about how they should be reacting first up on the market steve weiss is still with us

mike, best day for the spp since march. is this a technical bounce? or something better? >> it is possible to be both because it starts at the first thing and got into the zone and things are washed out enough and had to bounce. back to back strong days with broad rallies tends to reinforce the idea that let's say the lows of last week under 4500 in the s&p probably in place for the moment we saw something similar in march. did continue on to new highs and then a few weeks later you have a rollover and chopping around so maybe that's ahead of us. i think again that we have quickly gone to, hey, this thing we were afraid of, omicron unknown, looking less scary and then the direction of surprise is maybe worse than we thought and have to deal with something

imperfect in the market but a threat toothless is what it takes to reset expectations. >> strong day for the beaten down cloud stocks. the group down 14% in fact past month. joining us is greg branch. greg, is this a great buying opportunity in general for this sub sector of the tech space or rebounded too much over the last couple days? >> what this space offers us is security on the top line which is something that i'm looking for meaning there's tech names that shown sustainable demand growth here even with a variant whether omicron or the next one to force retrenchments these names have powered through. we have top line protection and

offer bottom line protection not su sceptible to the wage pressures or raw material cost and they have the pricing power to maintain margins throughout the year we have seen this at work, within adobe with 46% and i expect continued margin expansion there. microsoft with 45% there we see this in cloud businesses like google that's given 1500 basis points of margin expansion. so we don't know what the macro environment will be and the next variant. we are pretty clear on what the fed actions will be. i expect the supply chains to be damaged a while longer i want the top line and that bottom line protection this is a good level and continue to eat at the names. >> steve weiss, you have cloud

names in the bracket of overpriced tech you don't want to be buying with the prospect of raising rates >> yeah. look there is some protection from microsoft but on so many other things there is no bottom line how do you find protection where they sell at 50 to 100 times revenue? sure they continue to grow through there's also no margin for error. docusign still growing fast but they said the growth is going to slow down a little bit so this is a momentum market momentum on the way up and down. let's not mistake fundamental and valuation analysis in some of the cloud names for momentum. that's what's driving them i don't think they're safe at all. i own microsoft and amazon with longer term businesses that you

can predict. these onew byes forget them. >> amazon with the weird outage today affecting the big companies like disney plus and netflix. no real impact on the stock. greg, want to get you to respond about what steve said. >> i don't think we disagree here steve made an important distinction. in a rising rate environment you will have growth sell off but it's the unprofitable growth because what causes the sell-off is we have to discount those future values because the money being used to fuel that future growth costs more now. that's not a problem with the names that i mentioned borrowing costs don't input what we see as the future value i agree with steve i would stay away from speculative names and focus on names to demonstrate demand

growth and also demonstrated even in the most challenging of environments to protect the margins and give us expansion. and so i think actually stooefr and i agree on this. >> you like microsoft. >> kumbaya. >> we like the disagreement. it is more fun stitch fix earnings just out the stock is sinking tell us about the numbers. >> dropping more than 20%. a mixed bag for the online personal shopping. the company lost two cents per share. better than the street expecting with a beat of $581 million. but growing concerns about slowing growth and just over the past year shares fallen 50%. what's heating the wire is the number of stitch fix active clients lighter at 4.8 million and the company's guidance is

also much lighter at $505 million when the street hoping for $585 million same situation for full year rev nigh guidance. the street anticipating an increase of 16% and seeing the shares drop 20% right now and did have the ceo and like to -- this is a quote from the ceo who spoke to lauren thomas just a few hours ago. we are in this big learning phase of on boarding new clients and there's this broader supply chain backdrop we wanted to make sure to be appropriately conservative for the year and so that was when the ceo asked about the lower guidance shares still falling and i'll throw it back to you. >> thank you down almost 22%. it has been a volatile one on earnings up days too and stock is down.

seeing 19% revenue growth. but if that user growth disappoints and guidance in a stock like this, i get it. >> it is a little over $2 billion market cap and the question is, is this a feature or a service or a public company? i think that's an unanswered question. >> thank you for joining us. >> you know what i love? when ceos say -- go ahead. >> no, no. we are coming to you for the final pick of the day. greg, our thanks for joining us. steve, let's get the final pick of the day and give the final thought on stitch fix, as well. >> sure. on stitch fix i love when ceos say we're learning come back when you graduate. learn with somebody else's

money. volkswagen porsche the humors are out there and hired bankers. to separate porsche from volkswagen porsche could be worth according to some reports $50 to $100 billion as a stand alone company. ferrari is $66 million and porsche sells about 20 times as many cars and bentley and your favorite so with the market cap at 125 billion i think you want to own this it is very cheap even if they don't spin it out incredibly cheap. >> which one is your favorite? >> i wonder if bentley continental gt not ferrari. >> i like ferrari. >> no, no. i will get a bentley continental gt when i win the lottery one day. >> thank you always good to have you. >> right.

>> we appreciate it. up next, ian bremm er weigh in on the lktas of president biden with president putin "closing bell" back in two minutes. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. hey businesses! designed to help you keep more of what you earn. you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like ones that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing customers our best deals on every iphone, including up to $1000 off the epic iphone 13 pro.

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or get started with internet and voice for $64.99 per month with a 2-year price guarantee. give your business the gift of savings today. comcast business. powering possibilities. welcome back we have news on the biden-putin meeting of today. >> the biden administration working with congress and european allies has a package if russia acts. it could pursue sanctions on the pipeline sending natural gas from russia to germany. >> it's not leverage for putin indeed it is leverage for the west because if vladimir putin wants to see gas flow through the pipeline he may not want to

take the risk of invading ukraine. >> a challenge for the administration officials sizing up the options and finding sanctions that have a material impact on russia's economy and mitigating the affect on the west the white house say it is first objective is diplomacy wilf >> thank you we'll discussing this with ian bremmer. great to have you with us. maybe there's progress made over the last 24 hours. that remains to be seen. i just wonder to what exteptd you feel like even the build-up of troops and the seeming threat from russia towards ukraine once again has similarities to back in 2014 which followed the west not really a taking a hard line on syria given the events in afghanistan this summer. >> i think that the most thing that's happened in the last 48

hours is that the americans have met with and coordinated with all of the top european allies, the uk and in the eu, before the putin and after the putin call and that makes the u.s. a lot more credible when it says that there will be severe economic sanctions that russia will have to pay if they do indeed reinvade ukraine jitd's also clear that the united states isn't prepared to defend ukraine. despite the fact that ukraine would like to join and the big problem here and it is a serious problem is the russians aren't planning to invade ukraine and won't make it that easy for the united states and its allies if they're going to take action in ukraine it is much more likely to involve informal,

litling green men to plausibly deny cyber attacks against kiev the kind of things that make it harder for the americans and yirns to maintain a united front z i would say that the markets should be calm more than coming into the call. >> so what likelihood do you put on russia seizing some of ukraine's territory? it is not goinging to a full-blown invasion but seizing territory in the next six months. >> very unlikely for many reasons addition additional territory would be tripping the line. and the territory that russia occupies, those areas are the parts of ukraine with

populations most inclined to support moscow any further territory to take is going to have a population to resist and much more costly both in terms of economics epa lives for the russians and not popular inside russia so i think the danger an acy metrical warfare. >> gold prices did go up today never know exactly why i wonder how much geopolitical hedges to tell investors to take given the situation in russia and ukraine and possibly taiwan and china and hot spots that you have been watching and playing out into next year. >> i think if there is a geopolitical reason for oil prices to be coming up right now it is neither but iran that's because we are not going

to get a return to the iranian nuclear deal and they every four weeks away from nuclear breakout capability with the increased stockpiling and enrichment levels of the uranium. that's a problem and the u.s. withdrew from the nuclear deal under trump. biden wants to get back in we can't do it and a likelihood of israeli sabotage. clearly that would have an impact on energy prices and beyond that i would suspect over the next couple months most of the political impulse is on the negative side on energy prices and that has a lot more to do with omicron variant and travel restrictions and difficulties of supply chain coming from what will certainly be the dominant variant. hopefully not as severe as

daeltd but we don't have that information yet. >> ian, how significant was it that this week the u.s. announced a diplomat boycott of the beijing olympics i guess that's a punishment itself not that significant but the very fact to decide to go to take any punishment and with it see the white house make a statement that quoteding on genocide and human rights abuses it seems like a really big step that perhaps we haven't focused on enough because if the white house is saying genocide why are all punishment not on the table? >> we are stopping at that level because we are trying not to create a crisis between the united states and china and not punish the athletes going over there. that's not just a democratic point and also because they try

not to have major economic backlash from the significant exposure to the soon to be largest economy in the world china. leave all of that aside. the biden administration has not been trying to throw the china relationship under the tracks. over the last few weeks we have seen that the u.s. and china announced to start cooperation in coordination with climate policy and the united states invite china to coordinate with the u.s. on the release of energy from the u.s. strategic petroleum reserve and the chinese did the same and seen the best u.s. meeting with the chinese over three hours long between biden and xi and said it was construct ifrive if you put them in the context of a boycott it was announced later than the public pressure is coming against biden from the

republicans that will punish him if he is seen as soft on china and even with the democracy summit coming up in the next 24 hours which the chinese take exception to a taiwanese cabinet member invited to that and we are in a significantly more calm place overall on u.s.-china relations than two months ago, for example. >> should we be i guess is my question i don't know how significant it was to have that white house statement but it felt like a bigger acknowledgement than seen before and the point is no one wants escalating tensions. when you talk about genocide aren't all bets off? >> ray dalio would disagree with that statement when you say should we, if you talk about most american investors and bankers and financiers they would take the other side of the trade. if you talk about the biden

administration as a whole the state department, secretary antony blinken, would take a harder line decision take the politics out of this. the reality is that china engages in very serious human rights abuses that we are uncomfortable with as the united states on the other handthe united states engages in human rights internationally and at home. canada would be uncomfortable with and the level of dependence on the u.s. economy means they can't do much about it it's hard to make the kind of stanlts towards china or the mba to make the statements or bankers. easy to do that to russia because we are not dependent on them opposed to the germans or others with more at stake in the

russian economy. >> we'll leave it there. thank you. >> thank you. let's get back for the numbers now from charge point and pager uty. >> we have a lot to go through posting a los of 21 cents a share on revenues of $65 million. q4 guidance slightly higher at 73 million to $78 million and a company with ev charging stations in north america. in europe a partnership with mercedes benz and since july added 50,000 extra charging stations for a total of 163,000 points and this number is as of october 31st the stock is trading at a percent higher switching to pager duty. a management firm with the earnin earnings posting 71.8 million.

q4 guidance higher on the top and bottom line. seeing the stock react positively to the guidance and shares up almost 12% back to you. >> nice pop there. thank you. a touch break retail having another very strong session. talking tothe ceo of columbia sportswear we'll be right back. this is your family room slash gym. the guest bedroom slash music studio. the daybed slash dog bed. the living room slash yoga shanti slash regional office slash classroom. and this is the basement slash panic room. maybe what your family needs is a vacation home slash vacation home. find yours on the vrbo app. ♪♪

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retail having a strong day s&p retail etf higher by little over 2%. columbia sportswear joining in on the rally fennished november in the red. the ceo tim boyle joins us now for a "closing bell" exclusive welcome back. >> thank you really appreciate you inviting me here. >> last time you were on the complaint is not consumer demand but supply chain disruptions are things look any better >> i say that the merchandise that we have ordered is coming in, dribbling in we are much closer to being fully received now but still issues with the port just the

bulk of the issues in the united states and the west coast of the united states so the rest of the world seems to be weathering it in an improved manner over the west coast. >> what about consumer spending and consumer appetite? has that held up >> it has. you know, the demise of brick and mortar retail i think is early. we have seen the centers where we have stores have had good traffic and we have been the recipient of the traffic which is terrific. i guess everybody what thought that brick and mortar retail is dead was premature but the e-commerce business is also good and so we're pretty excited about how things are playing out. >> what about on the pricing side what sort of pricing power do you have right now and what is

it like? what are we talking about in terms of increases >> it is interesting that you talk about inflation because the bulk of our products having deinflationary for almost 30 years and had to really stress to our teams that a period of time when inflation is going to be present certainly and hopefully in the raging but way more than in the past we have to look at how we price the merchandise and how we build product to take advantage of the pricing and the pricing strength that we have so as you know pricing product is really more of an art than a science so we look at the areas of strength and there are many and we are going to be taking prices up. i think our retail and wholesale partners, we can talk in the range of what the fed is talking

about in terms of inflationary pressures so it won't be too dramatic but will be price increases and it will be interesting to see how long those things last and how impactful they will be with the excu consumer this is the seasonally strong period how does it look relative to prior years? >> i think consumers have been trained by the information out there that there are shortages and happy to move faster, buy merchandise quicker so we have been a recipient of that move forward, as well i think people buying merchandise now are going to get the pick of whatever they want people that wait that won't have all the sizes and colors that they otherwise would have in prior periods. >> who's thestrongest wholesal

partner right now? the death of brick and mortar is overrated. you sell all of the place. where do you see the most strength >> we have great partners all over the world and seen good results in all of those. we monitor the sales of the products around the world and pretty excited about what we see and wholesale partners have had good results and you can see by the results that people like dick's have posted that business is good for them. >> yeah. all right. don't expect you to name a single one but i tried thank you for joining us. >> thank you appreciate it. >> don't miss the interview with kohl's ceo michelle gass tomorrow on "closing bell. we'll talk to her about the pub by the activist investor and the

holidays tomorrow right here on "closing bell. time for a news update with shep smith. >> sara eisen, thank you here's what's happening now. the president will meet with ukraine's leader the white house says that mr. biden will hold a video call on thursday with him on the heels of the meeting today with vladimir putin the two likely to discuss a diplomatic solution to the rubans. the defense rests in the trial of jussie smolle the t. he testified insisting there was no hoax. close arguments tomorrow if mark meadows fails to show tomorrow for a deposition before the congressional commit tie it will recommend congress to refer him for criminal prosecution that from the chairman and vice chair from the

committee last hour. hope you join us tonight for the facts, the truth, the news right after jim cramer 7:00 eastern cnbc back to you. >> all right see you then thank you another big rally day for the market cowan lays out themes to watch in 2022. later what companies should be doing in the fight against covid with dr. vin gupta especially relating to the new omi omi omicron variant. we'll be right back on "closing bell."

stocks surge today the s&p and nasdaq posting the best day since march ev names swept up in the rally karen research out with the top themes to watch for in 2022. joining us is bill bird, head of thematic content of cowan. thank you for joining us. >> thank you for having me. >> firstly tell us what the thematic content guides you guys

on in particular is this a headline top down way to try to guide you towards stocks and sectors >> no. just for context the themes 2022 which we published this week is handbook of growth opportunities for the year ahead and what we run through are the 14 disruptive theeps in the report which are important because they have the potential to reorient industries in terms of process it is a bottom up process to leverage the collective insights of analysts, 60 of them and researchers atry to identify the areas of the market that offer the most attractive risk adjusted growth and the raw materials is the ahead of the curve series where the thematic work is expressed throughout the work. >> let's diver in and hit energy

transition it's clearly a theme broadly that we are all aware of and wonder if the old energy names are so attractively cheaps relative to the expensive names. >> the perspective is that we are at a tipping point in the transition to a low carbon economy and only recently have renewables become cheaper than carbon based fuels we believe many different segments benefit from new invest $70 trillion between now and 2040 to meet climate goals build back better infrastructure and bipartisan infrastructure deal are clear positives and we see opportunities in areas such as solar, next gen materials and infrastructure and not to say that the incumbents will get passed by but they need to evolve in the direction that the

energy market is moving to survive and come at it with capital and some ability because of that evolve the business model. >> a theme is post-pandemic consumer we are kind of in this period where it's a rising tide lifts all boats. what do you think changes out of covid and who benefits the most? >> what was really fascinating about covid is the number of behaviors and preferences tipped in the covid and the social impact epa sustainability on purchase decision why now important to 80% of 18 to 34-year-olds very important sub theme to find in the work is the gen-z this is a long tail theme and a very early stage of development

with significant head room growth their behaviors and preferences are different and sets up growth opportunitiesing if traditional brands to attract them and grow with them. companies act i is costco where shoppers graph tate to club stores we highly frugality. nike which has high loyalty and thorn at the intersection of health and wellness. >> i think you like poshmark, too. next time we'll talk about aspen aero gel insulation thank you for joining us for now. >> thank you. toll brothers just out diana? >> came in with a nice beat. $3.02 versus estimates

what's interesting here is the pricing that we see. obviously the luxury builder we see prices soar more than expected signed contract value up 10% but contracts down 13% that comparable is difficult because last fall is the peak and seen prices come down since then and demand is strong. the ceo says that the housing market continues to benefit from solid fundamentals and like the rest of the economy constraints are delaying delivery. the average home value for this quarter was projected in their guidance 840,000 $per home and

came in at $922, 100 inflation across the home builders back to you. >> market likes it thank you. s&p 500 up around 23% since president biden took office by mike santoli heads to the t telestrator with a look at why the pridt'esens second year in office hasn't been as kind to investors.

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let's get to mike. >> the presidential cycle is well-known well studied historically the first year of a president's term especially a new president's term is strong biden with 25% much better than the average this orange line is typical first year of a new president. what you also see is the second year just in general here tends to flatten out and have downside chop and this is conformed the last couple of cycles. if you go back and had very strong first years going back and last weak first year is 2001 second years have been tougher take a look at the last time around 2017 and '18 shall have had a year like this one. in 2017. in other words very few pullbacks. 5% up close to 20% for that year. and then that was the peak

so we rushed up into early january of 2018. mostly range bound one little push to a new high and then the sell-off. many factors of course come into play aside from the fact of a midterm election year and a thing along with decelerating earnings growth and perhaps the fed looking to tightening mode has people assuming that we'll have more downside test than this year. >> christmas eve sell-off? >> yeah. >> i remember it well. >> unless we get a change in leadership which is good for the markets, right >> tends to be good but that only happens at the end of the year if you get there. and i think it's mostly a thing to keep in the back of the mind. you put it into the whole matrix of indicators you think about. it is not a reason to be incrementally bullish. i think the presidential cycle

maybe as becoming smudged over the years and something that people watch. >> mike santoli sounding bear oish on the outlook. >> just keep expectations low but stay involved. >> that's good all right. see you soon up next, the debate of returning to work. what companies should be doing right now amid the rise of the omicron variant. we'll be right back.

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with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities. new york city mayor deblasio announcing an expansion of the vaccine mandate for all private sector workers but businesses push dak partnership for new york city representing the biggest employers says it was blind sided by the announcement. joining us is dr. vin gupta from the washington school of medicine and adviser of corporations like amazon and t-mobile thank you for joining us >> great to be here. thank you for having me. >> the complaint of business on the new new york city mandate is it's going to be tougher to hire and could be disruptive for business as a doctor, is deblasio making

the right move >> i worry about mandates and lack more than anything is trust in the institutions and the highest health care leaders and a problem. mandating the way out of this pandemic trying to increase take rates for the vaccine is a short term taking of the vaccine it's a short-term fix. i've been talking to federal contractors for the government in d.c. right now and they're going to be mandated to get the vaccine by january 4th but you still need toengage. i encourage all corporate employers to still engage with their workforce. internal communications is vital. they frankly need an assist from the cdc. we need clearer communication about what acceptable risk looks like we need to fully define what fully vaccinated is. we need some help here but there are opportunities to more effectively message to a

workforce so we can increase take rates >> on the subject of advising to companies, what are you telling the businesses you advise to do about the omicron variant? should they delay plans for return to work >> you know, psychologically if you already have a corporate workforce that's largely work from home, stay that way until april, may there's no reason to bring back a corporate workforce until april, may, when psychologically we'll be past cold and flu season we're plateauing at 10,000 weekly deaths from covid so there's no reason to disturb a good equilibrium now if you have a company that's already back in person, make sure it's a vaccine bubble make sure that everybody has three doses of the vaccine so there's an opportunity to lead here with science and clear communication. if you don't have to, don't go back until april, may. >> to what extent are you saying that, based on the fact that

we've got the winter coming or based on this omicron variant? because just a few months ago i think optimism was significantly higher than the tone of your response just there. and dr. fauci said recently that, quote, it's almost certainly, end quote, the case that omicron is less severe than anything we've got out there at the moment. >> the reality is that despite the optimism, despite this new variant we're still very much in the throes of a psychologically devastating winter 10,000 deaths week over week coupled with an unknown flu season that makes the next four months pretty tricky. scientifically if you're fully vaccinated and my definition is you're three shots in, you're fine if you create a vaccine bubble, that's perfectly acceptable. many companies have created vaccine bubbles and they have done just fine in terms of not having any outbreaks and that feeling of safety.

if you have a largely work from home employee base, there is no reason to bring them back until we're past the worst of it and that's more psychological than scientific. >> so how do we get there? how do we get to under 10,000 deaths a week and to an endemic phase of this virus where it does not become the economic headwind that it is and of course a scary health one, more importantly. >> you know, sara, it's time cold and flu season, cold, dry air, that's why we're seeing 10,000 weekly deaths week over week respiratory viruses like cold, dry air. so it's going to take that four to five months to get past it. also people will have some degree of national exposure to this virus or decide to get vaccinated perhaps the federal mandate for the vaccine will have taken effect lots of things potentially can change here. seasonality is our friend. it's important for your viewers to really note here we have to

start thinking pragmatically about what acceptable risk looks like three doses of the vaccine, two doses of the vaccine, the purpose of a vaccine against a contagious respiratory virus is to keep you out of the hospital. that's exactly what we're seeing here most of the cases spread across the united states, folks that got it despite being fully vaccinated had mild symptoms were or asymptomatic that paradigm is success so we need to revisit what the concept of success looks like here that's going to be key when we define what getting out of this pandemic looks like. >> with that in mind, dr. gupta, what would you say to people who say we're now at a stage almost two years in and where we have these vaccines available where people can have three shots so that they're well protected as you just outlined, this is now about personal choice, that we shouldn't have governments or companies dictating what people should or shouldn't do if you want to have your third shot, go and get it and the rest

is up to you. >> i think the problem here has been messaging, though, fundamentally. people don't understand. i cannot tell you how many times i've got the question do the vaccines work because we need an additional booster why are people testing positive? we focus so much on this concept of vaccine breakthrough illness we haven't given proper context about what people should expect and shouldn't expect we need to give clear anticipatory guidance and that will help increase take rates. i like the longer term strategy of building trust through communication and not mandating our way out of this because that's not a good long-term solution when we face the next health threat. >> it's interesting you put that trust on employers and corporations to build that within their employees dr. gupta, thank you for joining us it's good to have you. >> thanks for having me. the head of instagram will be on capitol hill tomorrow to talk about the app's impact on atung people wh to expect from that when we return

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julia boorstin with the details. what can we expect, julia? >> well, it's his first congressional testimony and a hearing on protecting kids online, held by the same senate subcommittee that interviewed whistleblower frances haugen you can expect bipartisan attacks. senators marsha blackburn and richard blumenthal saying they want to address instagram's powerful algorithms. the question is whether they are placated by moves instagram announced today, a push to different topics and to encourage kids to take a break with parental controls set to launch next year guys >> thanks so much. we look forward to that testimony tomorrow mike, final thoughts resoundingly positive two-day bounce. >> probably wouldn't be surprising to have it be digested a little bit but for now it's pretty persuasive that this is real demand.

you have very broad rallies two days in a row means the low is probably to be respected that we saw last week and see how much -- >> we're how much of away from a record high right now? >> like 1% to an intraday high. >> after a very volatile period. >> absolutely. >> that's going to do it here on "closing bell. have a good evening, everyone. "fast money" begins now. live from the nasdaq marketed place, this is "fast money. i'm courtney reagan in for melissa lee. guy adami, tim seymour, karen finerman and nadine furman the bulls are back in a big way. the market soaring for the second day with the s&p posting its biggest gain since march we'll be joined by mike wilson for his thoughts on why you should be bracing for more volatility ahead. plus a semi surge. chip stocks soaring to a record close today. every single name up more than 2% but is it too late to