fills up, we can transport patients to beds elsewhere this week, we'll send dozens of ambulances to new york and maine because the covid is spreading very rapidly to help transport patients our doctors, nurses, hospital staff have gone above and beyond during this pandemic the strain and stress is real, i really mean it it's real. and we'll have their backs, though we have to let them know we have their backs. finally, we're making sure that covid-19 no longer closes businesses or schools. last week, a federal court reinstated my administration's vaccination or test. vaccination or test rule for businesses with more than 100 employees. the rule requires employers with 100 hoar more employees to protect their workers on site and indoors with a requirement they get vaccinated or tested each week or go home

these rules are going to keep workers safe and keep workers safe will help keep businesses open if people are vaccinated or tested, they're much less likely to get sick and less likely to spread it to others. customers are more likely to come in and shop because they know it's a safe environment i know vaccination requirements are unpopular for many not even popular for those who are anxious to get them. my administration has put them in place not to control your life but to save your life and the lives of others. 400,000 americans died from covid this calendar year, and almost all were unvaccinated almost all were preventable. the rule is legal and effective. it's going to save thousands of american lives we must also keep our k-12 schools open look, the science is clear

and overwhelming we know how to keep our kids safe from covid-19 in school k-12 schools should be pen safety is increased if schools require all adults who work in the schools to get vaccinated. and take the safety measures that the cdc is recommending, including masking. i got congress to pass billions of dollars in school improvements, ventilation and social distancing. school should be safer than ever from covid-19. and just friday, the cdc issued a test to stay guideline so schools can stay open and kids can stay in class even if a class mate tests positive. covid-19 is scary, but the science is clear children are as safe in school as they are anyplace assuming the appropriate precautions have been taken, and they have already been funded.

let me close with this i know you're tired. i really mean this, and i know you're frustrated. we all want this to be over. we're still in it. this is a critical moment. we also have more tools than we ever had before. we're ready. we'll get through this as we head into the holidays, i want us to all keep the faith. i want to sincerely thank you for your perseverance, your courage, your countless acts of kindless, love, and sacrifice during these last two years. throughout our history, we have been tested as a people and as a nation, through war and turmoil, we didn't ask whether we would be safe, whether it would be okay whether we would get back to who we are we have always endured because we remember there's no challenge too big for america. i mean this from the bottom of my heart

no challenge we have come through better and stronger because we stay together as the united states of america. that's what we have to keep doing today. we can do this together. i guarantee you. may god bless you all and may god protect our troops, and happy holidays god bless. thank you. >> on testing, sir, you said we have to do better. but public health officials have been saying for months, you need to surge rapid tests for just this moment. is it a failure that you don't have an adequate amount of tests for everyone to be able to get one if they need one right now >> no, it's not because covid is spreading so rapidly, we know this just happened almost overnight just in the last month

so no. it's not a failure, but i don't think anyone anticipated this was going to be as rapidly spreading as it did. and so the question is, we have a lot of people who have access to tests, you can order them, you could have your insurance pay for them, et cetera, but all of a sudden, it was like everybody rushed to the counter. there was a big, big rush. and i knew that was coming, so what i tried to do is meet with the companies and use the defense production act to get a half a billion more tests and figure out how to get them to their homes, get them on the shelves in the store so that's what it's all about. yes. >> what's your message to americans who are trying to get tested now and who are not able to get tested and who are wondering what took so long to ramp up testing? >> come on, what took so long?

>> i'm hearing that from people who are trying to get tested now before the holidays. >> well, what took so long is it didn't take long at all. what happened was the omicron virus spread even more rapidly than anyone thought. if i told you four weeks ago that this would spread by a day-to-day basis it would spread by 50%, 100%, 200%, 500%, i think you would have looked to me and said, biden, what are you drinking but that's what it did we don't know what's going to happen from here there is some evidence in south africa where a lot of this started, it's dropping off quickly, too we don't know, but i do know that we're not going to be in a position like i said where remember we were having a problem with masks and gowns and the like i said i promise you, remember the -- i got questions from some of you, why are you still paying for all these masks and gowns. why are you stockpiling them

we don't know. turns out we need them in the back. >> sir, will you reverse the travel ban now that omicron is so prevalent here in the u.s.? >> i'm considering reversing it. i'm going to talk with my team in the next several days look, remember why i said we put the travel ban on. is to see how much time we had before it hit here so we could begin to decide what we needed by looking at what was happening in other countries but we're past that now. and so it's something that is being raised with me by the docs and i'll have an answer for that soon >> the importance of keeping your word of trust do you believe senator manchin kept his word to you, and how do you rebuild trust with the progressives in your party to advance your legislation now >> you know, i told you before, you have heard me say this before some people think maybe i'm not irish because i don't hold a grudge but i want to get things done. i still think there's a

possibility that we can build back better. what i don't want to do is -- and joe went on tv today, and i was told he was speaking to a liberal caucus in the house and said joe biden did this, so look, i'm not looking for -- let me say something you saw what happened yesterday. all the talk about how my build back better plan was going to increase inflation and cause debts and all the like what happened? goldman sachs said if we don't pass build back better, we're in trouble because it's going to grow the economy, and without it, we're not going to grow. and what happened? stock prices went way down it took a real dip if you take a look, everybody thinks because i quoted 17 nobel laureates saying this was going to help inflation, think about it in terms of you're a

hard-working person, and you're making $60,000 if you're alone and you're a mom or just on her own or making $80,000, a mom and dad, $90,000 like a lot of people do. and you're worried about inflation. you should be worried about it because it's a devastating thing for people who are working class and middle class folks it really hurts. where is most of the cost now? the cost is finding in gasoline, even though i was able to bring it down 12 cents a gallon and it will come down more, i believe we talked about the cost of food prices going up, et cetera but look what's in build back better child care we can reduce it up to 70% a big difference between 20 million people back in the work force being able to go back if you pass it. we're talking about health care. insulin, we have 200,000 kids with type i diabetes you know it costs between 10

cents and $10 to come up with a formula a while ago. right. know what it's costing on average? $560 -- $640 a month up to $1,000 a month what do you do if you're a mom and a dad working with minimum wage, busting your neck. you look at your kid, and you know if you don't get that vaccine for him -- i mean, excuse me, if you don't get that drug for him, if you don't get that be able to take that, what happens? he could go in a coma, maybe die. not only do you put the kid's life at stake, you strip away all the dignity of the parent, looking at their child i'm not joking about this. imagine being a parent, looking at a child, and you can't afford, you have no house to borrow against you have no savings.

it's wrong but all the things in that bill are going to reduce prices and costs for middle-class and working-class people it's going to reduce their costs. what's inflation having to pay more than the money you have because things have gone up it will bring down all those costs from child care, the child care tax credit, but i'm not supposed to be having this press conference >> mr. president, did senator manchin break his commitment to you when you announced the framework, the white house says that all 50 senators were believed to get behind it, all of the democrats senators. did senator manchin break his commitment to you? >> senator manchin and i are going to get something done. thank you.

>> welcome, everyone, to "closing bell. i'm sara eisen here with david faber, in for wilfred frost today. president biden outlining new measures from the administration to fight the fast-spreading omicron variant here in the united states, which currently makes up 73% of cases according to the cdc, including shipping 500 million tests to americans for free david, something that a lot of countries have done, and many have said is a long time coming, but the administration is going to do that, along with deploying military doctors and nurses and testing sites in places like new york city. we desperately need them here. you have seen the lines all over the streets. >> yeah, interesting, though, he ended up, of course, focuses on build back better and kind of venturing into our world quite a bit with quoting of goldman sachs and that report yesterday in terms of lowering i think the gdp forecast to a certain extent as a result of build back better, not looking like it was going to get passed, given joe

manchin's opposition >> no, it was sort of trumpian t tactic he pinned it on the market and the economy, which it's true that yesterday, a big chunk of the sell-off was attributed to the fact that gdp downgrades were coming as a result of the lack of a deal, when manchin said no on build back better goldman sachs taking gdp down for most of the quarters of 2022 on that by half a percentage point or so. and the news a lot of people thinking the news last night that senator manchin and president biden were talking again about this actually helped stocks rebound, which is very much what we're seeing today, whether it's that or a bounce for the first time in four days, we're looking at session highs >> he did end the press conference by saying we're going to get something done, which was unexpected and i'm not sure if people necessarily think that will be the case, but much of the market sell-off yesterday, just like the press conference just now, was focused on omicron and for that i want to bring in

meg tirrell to get more on what the president just told us meg. >> hey, david. well, a lot of focus there on the fact that people who are vaccinated, the president saying, you're doing things right. go get a booster if you're eligible a lot of focus on the fact that hospitals are likely to be stressed given the spread of this variant, but only or predominantly by people who are unvaccinated really trying to make the case there to folks who are unvaccinated that it's a duty to themselves, their families, and he said it wouldn't be popular to say it, but also to their countries to go out and get vaccines that wasn't the only thing he focused on there was also a focus on backing up hospitals, making sure they have the supplies, the personnel, the space they need and also that focus on testing including setting up those federal testing sites. they said before christmas, that will happen here in new york city, which is very important, as we have been seeing these testing lines and turn-around times stretch ever further also trying to increase the availability of free rapid tests

by making 500 million available starting in january, but a lot of criticisms from the public health world that that is too late to help with the surge we're in right now, and a lot of the questions from the press corps there to the president is this a failure, should this have happened earlier he claimed it wasn't because omicron spread so quickly, and indeed, it is spreaded very fast, guys, but those will continue to be questions back over to you >> meg, yesterday, i brought up with you the idea that we would see very imminently fda approval for the two oral antivirals pending. one from pfizer and one from merck. i thought perhaps they would do it today to give biden yet another thing to potentially talk about now i'm hearing and have been that it will probably be tomorrow that we get those fda approvals. but those two are also going to prove to be important, of course, in fighting this latest variant, aren't they >> yeah, absolutely. i love your intel on this, david. we also had seen some reporting from bloomberg today from a white house reporter that they were expecting those two dual

approvals of both of these drugs at the same time or authorizations this week so we expect that the supply will be limited and probably limited to the highest risk patients we also know there's one antibody drug that retains its efficacy against omicron i spoke with the ceo just a couple hours ago, and he said they're trying with their partner to increase the supply of that, so with these three tools, that will be helpful, but guys, we have to get the testing infrastructure in place for people to know that they're sick and get these early. >> yeah. >> no doubt. meg, thank you meg tirrell. >> the president also as we mentioned speaking about build back better. he received a number of questions on that. and his conversations with senator joe manchin. let's bring in eamon javers on that angle eamon. >> yeah, you guys are right to focus on that sound bite at the end which is going to make all of the newscasts, i think, which is the president saying senator manchin and i are going to get something done very optimistic sounding, upbeat he clearly feels like there's a

path forward here or at least he wants the rest of us to believe there is a path forward here in terms of salvaging this legacy piece of his administration's agenda we'll see whether that's the case or not, but it's always political when presidents decide to talk about the stock market, and it was just there, too the president attributing yesterday's sell-off in the stock market to the fact that a lot of people felt that the build back better program was now off the table entirely, not necessarily as to what a lot of market observers say, which is omicron. the president said it went down because of the build back better news and he cited that goldman sachs report that you guys were just mentioning i have that report right here that goldman put out late sunday what goldman is saying as a result of what seemed to be the failure of build back better at the time, they say that they're lowering their overall gdp expectations for next year as a result because they had assumed it was going to pass in some form they say in light of our changed fiscal assumptions, we're l lowering our real gdp for 20222%

in q1 versus 3% prior with the biden legislation. 3 prs % in q2, so the assumption now, goldman sachs saying there's a chance congress will retroactively extend the child tax credit with some modifications although that is less than even at this point goldman with a pessimistic note, talking about gdp pullback, the president would like suggest that's the entire reason or most of the reason the stock market declined yesterday of course, those omicron concerns were out there as well. so the president liking what he saw from goldman sachs yesterday. we'll see whether he likes what he sees from them tomorrow guys >> it was definitely in the swirl of the news yesterday. eamon, thank you let's turn now to the market mike santoli taking a look at what is driving these moves higher today mike, everything that got hurt, the cyclicals and tech on top today. >> yeah, it is obviously a little bit of a catch-up instinct there incrementally t seems like people are taking heart in the

sense we have a fast-moving surge in omicron it doesn't seem like it's going to create severe restrictions on consumer and business activity at least that's the overlay of a narrative here but also, the market just shuttled back down to the lower end of this range yesterday. and from 11:30 a.m. yesterday, we mentioned here, 24 hours ago, that look, the most of the selling was done by yesterday morning. s&p up 2.5% or almost that since about 11:30 yesterday morning. so you do have this basic rebound effect, and it doesn't look so terrible it didn't go back to those lows of early december. something similar here when you get a little bit of another pullback it doesn't go back as far as the prior one. that's a net positive. it makes the s&p look relatively resi resilient. below the surface, really a lot more damage. take a look at the s&p over the last year. compared to the equal weighted version of the russell 1,000, so that's kind of your average, larger cap stock, and then the microcaps really got smacked from this latest round

look how much they were up in the first quarter this year. one of the kind of speculative areaoffs the market that really has come in for some pain recently this is some of the makings of the catchup we're seeing a lot of the harder hit groups are rebounding strongly, the arc funds are up 3%. it could be just dead cap bounces but it's contributing to the idea that maybe there's a little relief in the market and somehow we got somewhat sold out. small cap versus large stocks, the russell 2000 outperforming today. that's against the top 50 stocks in the s&p 500, going back a couple years so yeah, that looks like a pretty nice bounce into this morning. looks a little better right now, but a lot of ground to make up in theory if it's just going to be about mean reversion higher, so i guess still more to prove, perhaps, from the smaller stocks, david. >> mike, thank you joining us now for more on small caps which mike was just talking about is carrie hall, head of small and midcap strategy at bank of america securities what do you think, jill.

is next year going to be the year we see that outperformance that it feels like strategists like yourself have been calling for for quite some time? >> thanks for having me. i think next year could be a good year for small caps we actually could see a good decade for small caps. i think we have been in this environment where small caps have lagged. we have typically seen them do better at this time in the cycle than we have and you know, despite the economic recovery, we have seen so far, that hasn't really been reflected in valuations, and now with some of the covid concerns, the relative ratio of small versus large caps is now collapsed to extreme lows below where we were during covid, so i think a lot of the bad news has been reflected, and if we are in an environment where omicron doesn't derail the recovery, small caps are more exposed to services spending, they're more exposed to cap-x recoveries in the u.s., so we think it could

be a good year for small caps. >> all right, so it's spending, it's the collapse of the pe. whatenti else are the engines he are those the main ones you're banking on to think perhaps next year is a better year for small caps >> small caps are more sensitive to u.s. gdp growth, so assuming the continued recovery there and that services recovery since everybody was spending on goods during covid, but now we're expecting that services rebound to continue. cap-x spending, which could be furthered by infrastructure and more broadly the reshoring of u.s. manufacturing these are bullish themes for domestically oriented smaller companies. and then i think, you know, if you look back at historical cycles, the last time that we saw, you know, what pe ratios and valuation multiples today are suggesting is that if you're a long-term investor, large caps

right now are very expensive versus history the pe multiple is now suggesting we could actually see negative annualized price returns for the s&p 500 over the next decade. last time valuations were suggesting that was in 1999. and whereas in contrast for small caps which are now no longer expensive versus their own history, multiples are surging we could see high single digit annualized returns over the next decade for small caps and if we look back to 1999, that was actually, you know, what we saw was it was a negative decade for large caps and a very strong decade for small caps so obviously, not something that happens often, but you can have a period of time, you know, even as much as a decade, where small caps see positive returns when large caps are down. >> but the problem, jill, and one of the reasons they're selling off harder than the rest of the market lately is as you just said, they're super cyclical, tied to the health of

the u.s. economy, which is not expected to grow as fast next year as it has grown this year in fact, there are downgrades of the economy coming like the one we just mentioned if build back better doesn't pass. so if we are in this environment of slower economic growth, especially if the fed starts raising interest rates, doesn't that hurt the case for small caps >> i think, you know, it's important to watch number one, covid, because that was omicron news was what we saw coincide with the recent small cap sell-off, and what we found this year and really since the initial vaccine news in 2020 was that small versus large cap performance has been very highly correlated with new case counts. so that's something that we continue to watch, and we'll now see with omicron if infections are perhaps less severe, could the severity and hospitalizations be more important than just cases, so i think, you know, a more dire outlook on covid could certainly be a reason to be more cautious

on small caps, if it leads to further shutdowns, significant cuts to gdp, derailment of the services recovery. but what's interesting is when you look at small cap performance this year, obviously, covid, as i mentioned, has been a big driver, but looking beneath the surface, it hasn't necessarily been the covid sensitive sectors that always got hit hardest during the small cap sell-off, so health care, where you have also seen issues around lower quality companies, you know, the ipo boon we have seen, a lot of that has been in health care, biotech. biotech has been one of the biggest drivers of russell 2000 underperformance this year and we have actually seen a historically extreme divergence between the two small cap benchmarks if you look at russell versus s&p, where s&p has much less health care and biotech exposure you have also seen this focus on quality, and high quality stocks were one of the biggest

explanatory factors of what did well versus poorly when you look at the recent sell hoffs we have been more cautious in health care in small caps for that reason. >> jill, thank you appreciate it. >> thanks. >> when we come back, disney's chairman, bob iger, speaking out about the company's relationship with china we're going to play a bit of my exclusive interview. we call it his exit interview. that will be next. digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work.

welcome back bob iger spending his final days as chairman of disney, of course, he stepped down as ceo in february of 2020. one key part of his tenure as ceo for over 15 years for the company was china. building shanghai disney was certainly something that was very important for iger and in fact involved some 40-plus trips to china so no surprise during a long interview in which we had a chance to talk about his career, he did discuss the importance of

china to disney and his concerns about the relationship between the u.s. and that country. >> i believed in the future of china for this company which obviously is evidenced in some of the investments we made, including building disneyland in shanghai, which is something i'm extremely proud of that's on a personal highlight reel it's still doing, by the way, extremely well i am concerned that the relationship between ourselves and china is such that growing in china, doing more business there, is tougher today and probably will continue to be so if you're asking me whether i'm the optimism that i once was, i think some of that optimism has eroded. >> sara, iger did admit as well to me if he had been asked, he would have become ambassador to china. he was not asked but it was certainly i think he was happy to have considered should it

have been brought to him and probably would have done but yeah, china important for them, and you know, not a place right now that is that easy to be doing business for a u.s. company. >> for so many u.s. companies, obviously, disney has a lot at stake with shanghai disney world and the tough issues that come with free speech, which isn't treated necessarily the same way in china, over movies and i saw the release of the simpsons omitting one episode that was sensitive. it's like nike which we're going to talk about in a little bit and so many other big companies. there's so much at stake economically, and these companies are getting a little bit of grief from u.s. investors and critics in the u.s. media that say, why aren't you being hard on china? but it's such a tough act because it's not a government going up against a government. it's a company with a lot of profits at stake and an economy that is very intertwined >> without a doubt, and we talk about it all the time, whether

it's apple or tesla or starbucks or nike, as you mentioned, of course and disney as well by the way, we're going to have a lot more from my interview with mr. iger later in this program, sara. >> yeah, looking forward to what he says about streaming. i know you talked to him about that we'll have tin the 4:00 hour time to get a cnbc news update with kristina partsinevelos. >> here's what's happening at this hour. chicago will soon require proof of vaccination to enter many public indoor spaces this includes restaurants, bars, and gyms it's part of efforts to curb the surge in new covid cases the new rules go into effect on january 3rd. >> nhl players will not be going to the olympics. this according to espn the league and its players union reportedly making the decision in light of rising covid cases so far, the nhl has postponed 50 games due to covid outbreaks on teams. walmart and cvs are joining walgreens in limiting sales of

at-home covid tests. walmart is restricting online purchases to eight per customer. cvs has set a six per customer limit. and germany's new chancellor seeking to curb the spread of covid before new year's eve. private gatherings will be limited to ten people. it's a matter of weeks before the omicron variant becomes the dominant cause of covid in germany. back to you guys >> thank you when we come back, economist david rosenberg here to explain why he thinks upward momentum in the market is fading and why the odds do not favor a strong year again in 2022. >> as we head to break, we check for you on bonds the ten-year yielding around 1.48 the market no doubt is in a better mood today. stocks are having a strong run the dow is near session highs, and bonds are selling off, pushing yields higher. 1.48 still a lot lower than people thought they would be heading into a potential rate hike

at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner.

what does a foster kid need from you? to be brave.

to show up. for staying connected. the questions they weren't able to ask. show up for the first day of school, the last day at their current address. for the mornings when everything's wrong. for the manicure that makes everything right, for right now. show up, however you can, for the foster kids who need it most— at helpfosterchildren.com 23 minute of trading stocks are bouncing back from yesterday's sell-off with the dow up more than 517 points here going into the close for more on the rebound, let's bring in david rosenberg from rosenberg research he joins us by phone i don't think people will be surprised to hear that you're negative on your views on the economy and on the markets, but look, we are starting december off pretty ugly with the nasdaq down for the month and a seasonally strong period what do you see continuing into 2022 why do you see it continuing

>> well, look, i think you hit the nail on the head, sara because the real commentary is we're in a highly volatile market backdrop. and up 500 points one day, down 500 points in the dow the other day, but the reality is when you take a look at the charts of the overall situation and you look at the s&p 500, because that is the benchmark, you know, we have been flirting around 4700 on the s&p since the beginning of november november, december, these are seasonably the strongest months of the year historically that's telling you something about the market is struggling, and the cumulative events, the timeline measure for the nysc peaked back on november 12th so when you take a look at the timeline of what's happened, the transports peaking early in

november, the small caps peaking early november the market is giving you a real sign here that it's pressing the pause button, and historically, you don't end the bull market with a thud. you go through a classic formation. and that's really what we have been seeing for the better part of the last couple months through the intermittent daily fluctuations >> what do you see in the 2022 forecast that leads you to believe it will continue because, and i know you're not in the consensus, but a lot of the strategists out there from the big firms, jpmorgan, goldman sachs, credit suisse, are pretty bullish next year on the s&p on the idea that earnings will continue to grow, the economy is not going to go into recession, and even if the fed does start raising interest rates, it's not going to be too aggressive >> right well, look, i think it stands to reason if you don't go into a recession, you're not going to go into a fundamental bear

market but that said, i do think that the market is going to struggle in the coming year you know, we didn't have a recession, if you remember, in 2018 it was a decent year for the economy. but the reduction in fed liquidity, and remember, this happened, you know, just in the aftermath of those epic trump tax cuts remember how difficult that year was. we peaked in january of 2018, and it was a struggle ever since, and everybody was bullish at the time. we didn't have a recession we didn't actually have a fundamental bear market, but let's face it, the last few months of the year were pretty brutal all i can really say with any degree of certainty, bought what do we know about next year, i sense that the pandemic is going to morph into an endemic, and i think that's a reasonable assumption this is going to be something that is new for the markets. it will be great for society,

but i think we have to say, and this will sound a little callous and insensitive to say, let's face it, the pandemic was great news for the equity market because of what it meant for fiscal and monetary policy, and you talk about earnings. there's a lot of earnings that are baked into the multiples and most of this rally was really multiple expansion. you know, off the march 2020 lows so we have a year, i would say it's a year transition pandemic into endemic. great news for everybody, but i'm not so sure that's great news for the market because at the other end of that, there are going to be fiscal and monetary policy headwinds that will place the tailwinds that allowed for that dramatic multiple expansion in the past couple years that's the way i come out of it. the fiscal withdrawal we're going to see, and you can see how the market, i mean, the futures are up sizably this morning because apparently the two joes had a phone call with each other and hope upon hope

that we're going to get the fiscal bill on track for next year i still think that is probably not going to happen. but the degree of fiscal and monetary policy support that's been underpinning most of the expansion in the stock market, you know, that's coming to an end. remember, the fed hasn't stopped tapering, but in march they're done with the balance sheet and who knows what they're going to do with interest rates, but policy will be a headwind next year so that's what i come out the other side, that's going to have an impact on the multiple, and the multiple has a much bigger impact on the market than earnings does. that's the big impediment for next year. >> david rosenberg with an opposing cautious view thank you for jumping on the news line. always appreciate it >> thank you, sara happy new year >> happy holidays. >> david >> yes, happy new year, everybody. >> shares of micron seeing a pop after reporting earnings last night. we have comments from the company's ceo on supply chain.

that will be next in the market ne

what is... an overpass? come on! question, is that an “s” or a “5”? think it's a 5... i thought so. argh! frustration...loading. [sfx: laser sounds] nobody wants more robot tests. but we could all use more ways to save. chai latte, for “rob ott.” for “rob ott.” error human. [sfx: laser sounds] switch to geico for more ways to save. power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools, and interactive charts to give you an edge, 24/7 support when you need it the most. plus, zero-dollar commissions for online u.s. listed stocks. [ding]

get e*trade and start trading today. 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 in futures contract prices around. get e*trade [ding] and start trading today. we have got a great lineup coming your way in the second hour of "closing bell. coming up, bill nygren will weigh in on the market and give us his top three picks for the new year we'll have more of my exclusive exit interview with disney's bob iger including his thoughts on whether people will keep going to the movies. and cloudy with a chance of m&a, a look at the big deals that could happen nebs year, at least in the software space. by the way, also mining for crypto what next year could bring for bitcoin and beyond

sara >> but first, david, 14 minutes to go here in the trading day. we're now in the closing bell market zone. markets commentator mike santoli here to break down the crucial moments of the trading day, and also paul hickey back. welcome, paul. we'll kick it off with the broader market stocks are rebounding nicely from yesterday's sell-off, dow, s&p, and that dacon track to break a three-day losic streak nasdaq up 2% dow is off session highs, lost a little bit of steam here into the close, up 453, though, right now. paul, the rebound today, is it just a bounce after getting sold for the first up day in the last four for the overall market, or do you read into this something more positively? >> i think the market was due for an up day, like you said, it's been a slow week, but for several days now, all we have been focusing on is what's wrong with the market. you have covid, where the omicron variant has been a

seemingly making another long winter, the fed being more hawkish and suddenly viewing all of covid developments as inflationary rather than what they were, deflationary in the past you have stimulus going into next year, which is going to be nonexistent, seemingly, and these factors create a tough environment where valuations are high but the key is here, if you're selling the market based on the headlines everybody is talking about, and everybody has been talking utthese headlines for the last several weeks, usually not the best way to generate oult performance so instead, we like to focus on with these problems, what could possibly go right? and with covid, even president biden's comments today, if you're vaccinated, and you do get a case of this, it's not going to be that bad, is what he was essentially saying i think that kind of viewpoint and increased optimism from people that hey, maybe we won't

have this long winter. regarding the fed, the fed's bark is always worse than its bite whatever the market is expecting usually comes in less so and valuations, while they're not necessarily attractive, relative to all the alternatives, i mean, they do look better. so i think we're hardly banging the table on equities right here, but i think it's more positive than what you can look at outside the equity space. >> mike, i want to turn to you and ask a simple question, sort of what stood out to you today so far in the trading. >> david, i think the real beat-up stuff that's getting a little bit of a lift we first got to this level of the s&p 500 on november 2nd. from that point, earnings estimates in general are up a little bit the market is down by 2% on a headline basis but there's been such damage done underneath the surface. today's small cap growth as an etf is up 2.7% maybe that's just some dumpter diving but it's worth noting that some of the worst hit areas are getting a bit of a break

>> nike is certainly a winner today after investors are digesting what were better than expetted results here are some highlights for you. north america on fire last quarter, up 12% on revenues from last year. margin improvement investors were happy to see that it speaks to the ability for nike to keep prices high supply chain issues, while still hurting nike, are improving. vietnam was the big issue for this company on production now, capacity we learned is 80% back online, and product is slowly moving. but it was a culprit along with other covid disruptions like rolling shutdowns for weaker china sales. that was the one weak spot in the report it is a key growth market for nike sales there falling 20% from last year. on the conference call, ceo john donahoe says the brand, nike, in china is still strong. listen >> our brand tracking tells us that our brand is still the number one cool and favorite brand in all 12 of our key

cities around the world and it's strengthening. and strengthening against our historical competitors in fact, the only people coming close are technology companies and so that continues to be one evidence but i think even more fundamentally and longer term is the foundation of having a direct connection with the consumer >> he also specifically mentioned they were the number one brand in their category and doing very well in china so investors are looking past the weaker sales analysts writing it's transitory, and they chalk it to up some of the supply chain issues, and that nike's brand continues to be strong, as donahoe says he said this competitive position for the company is stronger than it was 18 months ago. and importantly, the company did maintain guidance for mid single digit growth for this year remember, though, last quarter, that guidance was lowered on some of these production and transit delays mike, when it comes to nike stock, i think a big part of the surge today, up 6.3%, was up even more earlier, is the fact it was an underperformer for the

year on some of these supply chain headaches like vietnam and transit issues nike is susceptible to the macro issues but for what it can control, it's very strong, that direct to consumer business that has just ballooned continues to serve them well. that's what they're getting credit for today >> definitely had also about a 10%, 12% pullback in the last six weeks or something before the report, so it was prime to have this kind of bounce you know, i think you can take everything to heart that john donahoe says about the power of the brand. i think also you have already gotten credit for that largely in the valuation i look at companies in this elite status of this super high 50 times free cash flow forward free cash flow like lulu, chipotle, nike, estee lauder i mean, it's actually more expensive than microsoft right now. i think the brand is a tremendous piece already of what's embedded in this stock. >> mike, we're also keeping an eye on chip stocks ubs naming nvidia its top pick,

saying the company has wide motes its in markets it's also had a pretty good this year, hasn't it, as you look at the move up. take a look at shares of micron, surging on the back of what was an earnings beat bank of america also decided that was enough to upgrade the stock. based on that improving outlook. this morn on "squawk on the street," we were joined by ceoma here's what he said to say about supply chain issues. >> supply chain is easing in certain pockets of the market, because of a lot of investments in the semi-conductor industry, including micron, have poured into the supply chains we expect supply chain to continue to ease gradually all throughout calendar year 2022. some shortages may still continue, but there's new products, new technologies getting introduced into the market it's possible some shortages will still continue, but some shortages are improved >> somewhat encouraging words there as part of that interview, and given omicron and a lot of the unknowns in terms of what

its impact will be and certain parts of the world where chips obviously are made, kind o encouraging at least from mr. mehrotra >> yeah, when you start to combine what micron was saying with what nike's comments were, both have exposure to asia with the supply chain, i think it sets up an optimistic tone again, getting back to what i was talking about earlier with optimistic tones about covid these things, the supply chains are starting to get better, according to these companies with very large exposure in that area so i think that's an encouraging aspect plus, you see the stock rally 10%, reacting to earnings like micron has it's a good sign for the overall chip sector. and the chip sector is the life blood of the digital economy these days i think it's a positive sign at the margin here. >> how much of a bellwether is micron for the broader

semi-conductor industry, mike? and nike, for that matter, for consumer stocks? because both seem to be really lifting their prospective averages today >> micron, obviously, for its chunk, memory in general, it's obviously the bellwether for that subset. sometimes i look at the semi-conductor group, to paul's point about it being sort of this life boat in a digital economy, on a 3, 5, and 10-year basis, the semi-conductor index has doubled the s&p 500 total return on all of those time periods, you have to go back to the worst entry point ever, which is the end of 1999, over 20 years, it matched the s&p 500. i wonder at what point you're going to be at risk of kind of overthinking it when it comes to semis, and maybe that point is soon when it comes to something like nvidia which has given itself credit for tons of future growth it's amazing all you had to do is know semis were going to become more important over the course of time, and you have been rewarded for that simple

observation. >> let's hit general mills sitting out today's general rally. the company missing on earnings per share, but did beat on revenue and raised its full year sales forecast it's still dealing with higher input costs and supply chain disruptions and those shares are getting punished, down 4%. this has been the problem, paul, with all of these consumer staples, specifically the food stocks not so much on the food retailers, but because of where they are in the chain, they are absorbing all of these costs on labor and transportation and commodities and input costs and just their sales are not a problem. they're up, and they're raising sales guidance, but punished on profitability. how did the stocks look? >> yeah, i mean, have you seen the size of a box of cereal these days you could maybe fill two bowls before it's gone it's shrinking but consumer staples sector in general has had this, you know, amazing run over the last weeks.

the reading for the sector over the last three days has been the strongest going back to 1990 when you see investors flocking to the consumer staple sector, it's not always the most positive sign for the broader market that's something to focus on when you see this strong of breadth in the consumer staples sector, you have never seen it this strong, but similarly strong levels, the returns for the s&p 500 have been slightly better than average. and one year later, they're about 1300 times the s&p was higher every time. so i think it's maybe not necessarily the scary trend that some would interpret it to be last year. >> although given the stats you shared about semi-conductors, i might want to gravitate towards those rart than consumer sc cyc cyclicals. >> i think the one thing that consumer staples do maybe have going for them at times is that almost no one ever likes them. in terms of on a portfolio

basis, if people want to be defensive, they might say more likely health care or something like that. i think sentiment wise, you sometimes get things working to your advantage the stocks aren't cheap at the moment, but it's tough to make the case unless you're really a dividend investor and are willing to ride out these bumps when they don't seem to really have the leverage in this kind of an economy. >> so we are near session highs. we took a little dip a few moments agoas you can see, a blip off the highs and closed back up to the close up 565 on the dow. less than two minutes to go. what do you see? >> it's been strong all day. quite overwhelmingly so if you look at the market bread th figures. they have been above 85% upside volume for much of the day overall volume is pretty light, often the case when it comes to the end of the year rally days, but nothing to sneeze at there did want to take a look on a

longer term basis at a couple of bellwethers, the cloud computing and ipo index having very strong bounces today. but that's the path they have traveled again, very important peaks in the speculative parts of the market including spacs and these types of the area in january maybe a bounce, maybe something more volatility index is finally receding further, down to 21 looks like a pretty good spike on the chart that's usually a good thing when you spike up and come back, but still above 20 when the market overall is kind of calm and 2% from its highs shows you people still remain a little on guard for what might be to come out of omicron. >> as they perhaps should. it's funny looking at that ipo etf you just brought up there, i notice shares of rivian having their first good day in a while, this after the company's first earnings report. of course, it was an incredibly successful ipo, which has not been the case in the after market for many of these new

issues this year not just spacs we talked about it often, after the first trade, it's typically been a good time to potentially consider selling but overall, not a lot of selling today, as we look at the broader indexes. the s&p up perhaps as much as 1.8% at the close, and the nasdaq inching closer to a 2.5% gain >> even more for small caps, up 3% there on the close. strong finish. welcome back to "closing bell. i'm sara eisen here with david faber, who is in today for wilfred frost, and mike santoli, cnbc senior markets commentator. coming up, bill nygren says two sectors in the market are really cheap right now. find out which ones they are as well as his top three stock picks for 2022 >> first up, paul hickey from bespoke investment group is still with us, but mike, i'll turn to you on a rebound day that really finished nicely here into the close, with small caps

up 3%, oil bounced 4% today. treasury yields up to close to 1.50%. what does it all say to you? >> yeah, obviously, there economically sensitive trades did well today a little bit of a lifting of what had been build up about the possibility for this slowdown, this idea that somehow the market was going to be in this pinch between potentially disappointing growth in the short term and then of course you have the fed putting the markets on alert i think a lot of that has started to dissipate, along with the fact that parts of the market had gotten nicely stretched in the downside. you got some spring back keep talking about this as so far being like a two-month trading range where the market has reset expectations lower we didn't get the magic end of year final flourish to the upside over the course of the last couple months that i think has been a good thing for rebuilding a little bit of concern in the market, and now we're above the middle end of this -- the middle of this trading range and just about 2%, 2.5% from the record

high so it's kind of sideways, the tape looks okay. but it's hard to necessarily know what changes too quickly to get it galloping again >> paul, a bit of momentum today. always the question is will it sustain? what do you think? >> you don't want to read too much into a day like today or a day like yesterday you're not usually on during this hour, david, but sara will know the strong close, i mean, we haven't seen one of those like that in quite some time especially the last few minutes, making it back to the highs of the day. you like to see that kind of strength the rise in the ten-year yield, you know, and then with the strong rally, we constantly hear so many people talking about an increase in rates is going to be bad for the market and bad for technology but today, the ten-year is back to 1.5% or got close to it early on and the market did just fine so i don't think that's necessarily something to be overly concerned about and then the second half of

december historically has been a very strong part of the month, as you have all discussed a lot. december is a back end loaded month typically, so it's common to see the most of the gains right before and right after christmas. >> yeah, we just saw rates, of course, up rather sharply in fact, given we were well below -- well, not well below, but below 1.4 for some time. crude oil also rebounding after a sharp decline as well. we have there, of course, fears of the rising omicron cases, perhaps dampening economic activity let's brin in victoria green from g squared private wealth. what do you make of the move up in oil and do you think it's sustainable? >> i do. i think you should have more faith in the santa claus rally come on, you gotta believe in it so i think we can see that continue on here in the oil markets. i think the omicron variant oversell was a little overdone you saw 20% pullbacks from the highs in the 85s, and now you're

seeing stability in the mid-60s that should be a support there going forward. and then wti in the 70s and 80s is good for a lot of companies a lot of companies we're looking at, their break evens are lower than that in the 50s, even if we stay in the 70s to 80s range bound which is good for the markets, good for the economy. oil in the 100s, then it starts to drag higher, you have higher gasoline prices and that hurts the consumers. we think the 70 to 85 area is a great range for us to trade in >> all right, and given that, what is the name perhaps that you consider well positioned to benefit? >> you know, we like a lot of the emps that are cash friendly. you have seen a lot of them start to do the 6-plus variable dividends. we like the faangs, diamond back, and then eog eog recently raised its base dividend after q3 to $2 -- i'm sorry, $3 a year annualized. that's a huge, huge, like an 80% hike in their base divtened, but they're going to distribute 50% of the free cash flow as a

variable dividend and you're looking at buybacks. they have great sense tiv teand you're looking at potential 10% to 12% yield on dividends without looking at share price moves and a lot of their prices are either hedged or they're in the low 40s and 30s on break evens because they're mostly in the permian area which is a great acreage to have. we look at that, we look at the shareholder friendly companies i'm not agnostic to the esg trend, but we look at what we want to own in 2022, how do you not want to own cyclicals? how do not want exposure to oil and energy prices in this market >> one reason people don't want that, beyond omicron, is the fed getting ready to tighten, shrinking its balance sheet potentially tightening interest rates three times next year, according to their forecast. what happens to oil in that kind of environment especially if we see a stronger dollar continue. >> you could, but we took these companies have good balance sheets so we feel like they could add on data if they needed to cheaply. you're not seeing a huge

expansion in capital expenditures if you look at who gets hurt more by a rising discount rate, is it tech nergy financials benefit directly and correlate to a rising fed interest rates, but we don't think oil will be so disrupted what i see is if opec got meaner next year, that could be difficult. iran's maybe coming around, if you look at what could be difficult for the oil market those would be the two things i'm on the look out for. the energy sector can absorb hikes in interest rates because they're well positioned and they can also pass on some of these costs. they are seeing some costs, devon increased 10% to 15% for their labor and raw materials cost, but they can continue to benefit, to be hugely cash flow positive and in a stronger oil environment. >> you know, mike, we just mentioned rates, of course i do notice banks reversing what were losses earlier in the week. i would assume in part because of that move up in rates we saw today. >> yeah, for sure.

i mean, there was a touch and go for a little while on the long end of the treasury yield on the ten-year kind of almost at risk of sinking wback into this zone where it was the old lows. so now we popped up toward 1.5% on the ten-year, and actually resteepened the yield curve a little bit i think enough for relief on the banks. they really had been tossed out along with a lot of other sectors for a while there. so that's why it feels like there's just a lot of pent-up potential for just mean reversion from a lot of laggard groups that could be under way, and that doesn't require necessarily the indexes to do much because if mega cap growth doesn't help out, it's not necessarily going to be a big index move it seems like a lot of stuff that had been discarded was picked up today. >> yeah, financials, industrials, if you look, paul, at where some of these groups are off the highs, financials, about 5.25% off the highs, industrials, 4%. victoria's favorite group,

energy, about 7.5% off the highs. if you want to jump in with that cyclical exposure right now, which sector do you like the best >> i like energy the sector she was talking about dividends of eot, the sector yields about 4%. companies have been disciplined in their production, and you have a federal government where the regulatory environment is not conducive to more exploration, so that should help keep a floor under prices. i think as far as the energy sector is concerned, and the receding covid trends, overall those three factors should bode well for the sector going into 2022 >> you've got some agreement there, victoria. thank you for joining us good to see you, victoria green. >> thanks, guys. >> before we let you go, paul, we want to zone in here in the market zone on urbest idea single best. what are you picking >> so i think not for the faint of heart, but coinbase is a

stock for people who want exposure to the crypto space people tend to think of coinbase as just another bitcoin play, but it's the entire cryptocurrency space the company says that the cryptocurrency environment is in 1998 what the internet environment was. so no one's guaranteeing bitcoin will remain the dominant player going forward, but even if it isn't, coinbase, it will be traded on coin base, so i think that's a way to somewhat hedge your bets. it's not only a cryptocurrency play, coinbase it's also building out an nft marketplace and it also has exposure to netta verse. those two reasons aren't necessarily reasons to go out and buy the stock on their own, but they're nice added bonus if you're looking for exposure and an easy way to gain exposure to the crypto space and also, energy, when we talk about valuations, the sector

based on next year's earnings is one of the cheapest sectors relative to the ten-year average of any other sector. so that's another thing working in energy's favor. >> all right mike, i'm probably not going to be here the rest of the weerk at least at this time, so i'll take this opportunity to ask you, these handful of trading days that are left, i know, we never know with what's going on, but right now, i'm not planning on being, but with a handful of trading days left in the year, what should people be thinking about given what we have seen in the past in terms of the last few days >> well, the one thing to keep in mind is that the seasonal script hasn't exactly been followed to this point that being said, there's a disclaimer, you start to enter this period which overwhelmingly in the final several days of the year, early part of the new year, tepically, it's very strong, and the reason people have studied that very brief stretch of the calendar is that if it isn't strong, it usually was kind of an indicator of potential trouble down the road, if somehow it didn't live up to its strong seasonal buy.

we'll see if we get it it's unusual i think to get to the last week or so of the year and have a lot of the market being like kind of washed out the way it is right now or at least on the defensive, so we'll see if that's enough of an excuse to get a little bit of a push higher in at least some of the beat-up areas of the market before the end of the year >> the santa claus rally i mean, jim cramer thinks it's still happening, right, david? >> yeah, yeah, he did. he's been pretty positive, yeah. that's true. >> maybe it will start it's still odd with the nasdaq down 1.3% on the month paul, thank you. always good to have you. >> take care we're just getting started here on the second hour of the "closing bell. banks, as we have been mentioned, have had a strong year, but up next, value investor bill nygren explains why he still sees big opportunities here, especially in one under the radar financial name >> plus, cloud stocks have come crashing down to earth over the last month coming up, an analyst weighs in

on which cloud stocks look cheap after that sell-off and he'll also name nas penmeonottial future m&a r financial plan. bill, mary? hey... it's our former broker carl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl. look forward to planning with schwab. schwab! ♪♪

stocks rebounding from yesterday's slide. with the dow finishing near session highs. energy coming in as the best performing sector on the day, closing higher by nearly 3%. for more on where he's finding opportunity right now, let's bring in noted value investor, bill nygren. bill, welcome back to the show the whole notion of value versus growth kind of has been scrambled lately there were high hopes for value, and then now some questions about growth into next year. how do you think that age old battle is going to shake out next year? >> well, we think really long term and if you look back over the past decade, it has been a great decade for growth stocks and that's not so much because their fundamental performance has been so much better than

inexpensive stocks it's because their pes have expanded so you see the s&p 500 today selling at something over 20 times next year's earnings but there aren't a lot of stocks at 20 times earnings there are a lot over 50 times. and then there are a bunch of them down around ten times at oakpark, we're estimating growth stocks multiples will come down a little bit and the low pe stocks will provide good hunting ground for investors today. >> so give us some examples. some names that you see that >> sure. one of our largest holdings in oakmark is ally financial. ally stock sells in the upper 40s. consensus earnings for next year are over $7. you're talking about a pe under seven times. they're the leading auto lender. most of the large banks have moved away from anything except prime customers so margins have

gotten better for ally ally trades at about next year's tangible book value. we think it's an incredible opportunity at this price. another companyerse charter communications stock is down almost 200 points from its high earlier this year. it doesn't look super cheap on an eps basis, but that's because noncash amortization goes through their income statement if you add back the amortization, it's selling less than 15 times earnings we think of it as an infrastructure play. we think it should sell at a multiple more like the other infrastructure companies or cell phone tower companies. and those trade at twice the market multiple. so those are a couple of examples of where we think people have walked away from really attractive situations this year. >> walked away from charter in part because there's concern about overbuilders, concern about their ability to obviously

add subscribers at anywhere near the rate they had previously when the stock was responding quite positively you don't share those concerns about, let's put it simply, sort of increased competition for what they do >> sure, in terms of the subscribers, david, i think everybody realizes that there is a pull forward during the covid lockdowns, and nobody really expected them to maintain those rates. but we think if you look at the two-year or three-year stack subscriber growth on internet subscribers, not video, it's still very strong. and we think the companies are advantaged enough that the wireless wi-fi is not going to be a solution for people we think there will be limited competition for wired wi-fi. >> i want to move over to another name, back to the financials, because i believe you also like citi, and citi is notable in part because it's been the real lone mega bank

underperformer this year and i even call it a mega bank, i'm being generous it has a market cap below that of goldman sachs down 3.7% this year. their previous management bought back a lot of stock higher than this what appeals to you about citi >> well, i guess to a lot of investors, the underperformance is a reason to not like a stock. for us, that's a reason to get excited about it citibank at its current price is at a significant discount to its tangible book. we like the new management led by jane frazier. we think the focus is going to be on areas where citi is very competitively advantaged like their treasury services business jane has set a goal of reaching a 15% return on equity if they get anywhere close to that, we think this stock will sell at a large premium to book value. and it's not expensive on what they're currently earning. even though the returns are somewhat disappointing you're still talking about a

stock that's around ten times earnings pays a good dividend, and using most cash flow to repurchase shares so there are a lot of names in the financials we think are really attractive. >> i wanted to go back to ally for a moment because consumer lenders have not really been in favor lately, bill investors are worried about what the credit comparisons are going to look like when fiscal stimulus wears off, what the profit margins are going took l look like when interest rates rise why is that appealing? >> a small rise in interest rates is actually good for almost any bank that we own, including ally the liability side of their balance sheet is consumer deposits, and nobody is taking those rates down below zero. so the first 100 basis points or so that we get in treasury rates should help the profitability of companies like ally, capital one, citi, all of the financials that we own.

credit has been great this year. i think with the jobs picture as strong as it is, where you're seeing tremendous increases at the low end for hourly rates for employees, and lots of availability of jobs, we think the credit will stay strong. and the experience of auto lenders was not that bad, even during the great recession people were much more anxious to turn in the keys for their house than to forfeit their car, as that saying goes, you can't drive your house to work >> bill, you know, obviously, we talked a lot about financials in this last five, six minutes. what do they represent as an overall weighted of your portfolio? do you ever get to a point where you're making them larger as a percentage than you have in the past, and is that all from a risk perspective more of a danger >> financials to us represent

about 30% of our portfolio but it's not all just banks that have a lot of lending. that would include companies like aig, the trust banks like state street and bank of new york so even though it's 30% of our portfolio, and that's a lot more than it is in either of the s&p or the russell, we think the risks are spread out across enough different types of businesses that we don't believe we're being at all imprudent and yes, 30% for us is a high number that's up significantly from where it's been at some times in our past at oakmark. >> bill, always enjoy speaking to you appreciate you taking time thank you. >> thanks for having me. happy holidays >> and to you. still ahead, we'll have more of my interview with disney's chairman, bob iger, as he prepares to exit the company >> up next, his thoughts on the future of movie theaters amid, of course, the increase in home entertainment options.

>> plus, shares of crypto miner block chain have fallen nearly 30% since the company just went public back in september coming up, the company's ceo on that recent volatility and the volatility in cryptocurrencies and where he sees the biggest opportunities in t n yr. ayitusheewea nkorswim even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim web. because platforms this innovative, aren't just made for traders - they're made by them. thinkorswim trading. from td ameritrade.

the living room slash yoga shanti slash regional office slash... 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. come on everybody, let's get to work. johnny, you're gonna be sla working withome. the number one choreographer in redshore city. wrong. i'm trying, he's freaking me out. tippy toes, tippy toes, i don't see your tippy toes. if you could just give me some dance lessons you would be saving my life. ♪ sky full of stars ♪ ♪ i think i saw you ♪ [ cheering ] that's my boy.

welcome back it is time now for a cnbc news update with shep smith >> here's what's happening a strategy session for democrats on the agenda for tonight as lawmakers try to salvage build back better plan and voting rights legislation >> nbc reports the senate majority leader chuck schumer wrote to colleagues that the meeting tonight will address how to pass a revised version of the build back better plan, after senator joe manchin essentially killed the current plan. schumer telling democratic senators that they will vote on a revised bill and that they will keep voting on it until they get something done.

>> shortening the quarantine time for health care workers dr. fauci says that's under consideration as omicron surges. right now, it's ten days for those who are asymptomatic dr. fauci says public health officials want to make sure that those essential workers aren't kept out of action for too long. if they don't have any symptoms. however, he says the ten-day guidance will still apply to most americans for the near future >> and the slowest population growth in the country's history. that's the word from the census bureau, looking at data from july of 2020 to july of this year covid looming large in the numbers with more than 800,000 deaths, along with delayed pregnancies and less immigration. it's the first time since 1987 that u.s. population grew by less than 1 million people tonight, battling anxiety and depression among doctors and nurses we'll speak with the doctor in charge of a new trial to see how psychedelics may be able to help on the news, right after jim

cramer, 7:00 eastern, cnbc david faber, back to you >> shep, thank you >> want to get back to our interview with bob iger, of course, the outgoing chairman of di disney a 47-plus-year career at the company, 15-plus years as its ceo, the last year and a half or so as its chairman, and during that period, during the period of course of the pandemic, a lot has changed in terms of the viewing habits of people in terms of their willingness to go to the movies and/or choosing to perhaps stay home and watch the various streaming services that often are bringing them movies right away i asked mr. iger whether in fact the movies will stay sorpt of as a cultural touch stone for many in this country. >> people like to go out that's not going away. i happen to believe that people will continue to want to go to movie theaters to watch movies now, the question is, how many and i think what we're seeing today is a result of a few

things one, more competition for entertainment in the home. and more volume, meaning there's more to watch at home. and the pricing is really good whether you're subscribing to netflix or disney plus or hulu or some of the competitors, those are good deals you're getting a lot of quality, a lot of volume for a relatively inexpensive price. i worry that the cost of a movie ticket is becoming more of a problem for people, particularly in inflationary times which we have been experiencing >> what does it mean for a company like this one that was built on the power of movies whether they be animated or otherwise. i look at this, this incredible franchise started with a movie in 1977. >> yeah, it did. look, i think, first of all, thanks to technology, we can make movie quality television today, and we are. if you think about what george

did with new hope, which wasn't called new hope in 1977, versus the mandalorian. >> right >> you look at the quality that's on screen, espespecial effects, you name it >> does it have the same cultural effect. you have written in your book about "black panther" which was an important moment in your 10 >> one of my most memorable moments. >> if it doesn't open in movie theaters does it have the same impact >> i'm not sure. i don't think so i think the impact of a large screen experience, global sometimes, you know, same release date around the world, the world going out to a movie, experiencing larger than lifetime characters on that big screen, with other people. i think there's something very, very powerful about that that probably has an impact that does have an impact, not probably, on how that resonates. and i think that migrating

completely away from the big screen experience would be -- would not be something i would necessarily advise, but that won't be my decision i would -- >> seem like you're glad you don't have to make that decision >> no, i'm not glad -- look, i'm perfectly comfortable with my decision to step down. to suggest i have been relieved because i don't have to make tough calls anymore, i have been making tf calls for so long, i never got tired of that. it became sort of the way of the world. but i would probably have stuck with some large screen global release strategy i would not necessarily -- the window would be different. it would be short. but i think there's some value to it. >> you know, sara, still an important question, of course, and you do know any number of disney films did go right to disney plus during the pandemic, when people were very unlikely

to go visit a movie theater even if they could. but it continues to be a key issue for the industry not to mention, of course, the fight that disney got in with one of its big stars, scarlett johansson. >> i do wonder how much of this is blown up because of the pandemic and because that halted production for a lot of these movies and just they weren't able to release maybe as much content as they would. and they didn't have as much maybe on disney plus as they normally would, whereas if we get back to a normal world of production, and the ceo has said that he's increasing -- he's really spending a lot of money on trying to boost that production library, if this becomes a little less of a scrutinized issue. i don't know, david, what do you think where some will just go to the movies that are meant for that and some will go to the streaming site and it won't be as dramatic about which one and for how long because they'll have more to work with

>> they very well may be the case, and they're spending $30 billion on content at disney plus to make sure they have a more robust offering, but it still will be ablancing act. this is a company the franchises of which have depended in part on getting audiences around the world to really love them. would star wars be star wars if it had just been on tv to begin with it's unclear would any of the marvel movies as well or the characters that have come up hard to imagine that as well it is an interesting balancing act and one of course that current ceo bob chepeck is going to have to approach as you heard his predecessor say. >> yes yes, who actually has been running the company for a while now. >> yes >> david, it's great stuff, and i love the background, and it looked very crowded in that disney park. up next, an analyst who is predicting an m&a frenzy for cloud stocks he'll name names he thinks could

be acquired. >> later, the ceo of a crypto mining company on whether bitcoin wi slloon bounce back following the recent sell-off. move your money to sofi and feel what it's like to get your money right. ♪♪ ♪♪ move your money to sofi. download the app and get your money right.

it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. a new survey from wolf research says 41% of investors view the software sector as more

attractive going into next year relative to 2021 that bucks a multiyear trend of overvalued sentiment joining us with bet bets and m&a estimates is alex zhukken. start off with me on this survey and what it says to you. >> david, so the survey is really interesting it was 123 institutional investors, and look, what they're saying is that there's clearly a shift in focus from just growth to margins and efficiency i think a lot of people are very interested in the sector there's a lot of thoughts about m&a, thoughts about the right themes to be playing, whether that's data, the rise of the future of work, which names, which thoughts and names are played out we were really thankful to get the kind of participation we were able to receive on this survey >> what does it sort of say to you or how does it change your thinking in terms of what you're recommending or not?

>> yeah, look, we're still very positive on the sector, but we think things are changing in 2022 we thing investors are going from focusing on just growth to really focused on are these good businesses is there cash flow, is there efficiency and so the two things that stood out to us was with digital transformation can't happen without trust and what we're seeing towards the end of the year around security, whether we see the vulnerabilities, whether we see the outages you know, these names, we think, are poised for a meaningful comeback and some of the largest upsides we have in our price targets are actually security names. cybersecurity names. and then on the other side, all of our top picks have really strong cash flow multiples, free cash flow profiles we think that's such an important focus going forward because it's not just about growth anymore >> one of your top picks is salesforce i think you have a high price target on that name and expected to make another big deal next year didn't the market want

salesforce to stop making big deals after slack for a little while? >> yeah, it's a great point. we said at the end of the year, we think that salesforce is just super well positioned in this environment. we do think that, you know, the team that they have assembled at the top starting with bret taylor and marc benioff with amy weaver at cfo, with, you know, is just the best one they have seen in years. they're all aligned. we think they have a lot of great trends in terms of driving revenue growth we think that the slack acquisition is going to position them well around where the future of work is going, and ultimately, it's a focus, a renewed focus on margins we think they're going to continue to surprise the street positively on putting up better free cash flow, better margins every quarter. but we don't think they're going to stop doing deals, whether it's next year, whether it's, you know, two years from now, we think the right deals and the right strategy, and we think similar to what microsoft, you have seen them focus on with security, we think salesforce is not going to be far behind

we talked okta as a really strategic and transformational acquisition. that's the largest one they have ever done, that again, kind of doubled down on this notion of trust around identity, around really can't have a single view of your customers without it so while it's not necessarily something we think that's going to happen over the next few quarts, we do think unlocking the margin potential of salesforce enables them to have a better currency to drive better confidence from investors and ultimately continue to make growth accretive acquisitions. >> i would point out antitrust is going to continue to be an even bigger obstacle to big deals. the bigger they get, the more attention they get regardless of whether they should draw red flags. let me end on crowdstrike. i notice you're also favorable for the future of that stock it has been a brutal year, and very recently as well. why do you like it >> look, we ran a vsurvey with 9

chief security officers. the data was clear ransomware is the number one security concern headed into 2022 edr, which is what crowdstrike provides, remains the number one priorities for next year, and crowdstrike remains not only the member one ranked vendor in edr, but the number one ranked vendor across 32 of the top public and private players in our survey. we think crowdstrike is going to show really strong upsides, number on top line, and they're a very free cash flow jenerative company and business so great team, right where you need to be to solve the pain points of the moment, with a great free cash flow story equals a great stock in our opinion. >> alex, thanks for joining us putting yourself out there on some of the names and predictions. we appreciate it >> up next, the ceo of crypto mining company argo blockchain, on whether he thinks ethereum could eventually overtake bitcoin as the prominent

cryptocurrency >> plus, a big plane sale and a bullish analyst call fueling boeing's big gains today we'll have details later on "closing bell. wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

when it comes to autism, yeah... oh. finding the right words can be tough. finding understanding doesn't have to be. together, we can create a kinder, more inclusive world for the millions of people on the autism spectrum. go to autismspeaks.org

bitcoin has been hitting a rough patch lately despite today's rally, bitcoin is down 23% over the last two months joining us is peter wall, ceo of argo blockchain. which mines bitcoin. peter, thanks for joining us a lot of people are looking at

bitcoin and the recent performance and putting it into the category of spacs, unprofitable tech companies, meme stocks, all of the places in the market that seem vulnerable when the federal reserve is trying to reduce liquidity in the marketplace do you agree >> hey, sara thanks for having moo eon the show first, i never want to bet against bitcoin. it's been, you know, knocked over the years so many times, and it's always come back and it's always proven its worth and proven its importance. so yeah, it's obviously been a volatile year in my book, volatility equals vitality to quote michael sayler, so i think the bitcoin is doing what it does it's still important, it's still around obviously, ethereum, other coins have had a great year. bitcoin has also had a good year a great last year and a half so i would never count bitcoin out. >> what should we be watching as far as what might drive the price of bitcoin from a

regulatory perspective, or fundamental perspective into 2022 >> i think what we have seen in 2021 is going to be what drives the price of bitcoin in 2022 from a mining perspective, we have seen this year the industry go from being essentially teenagers at the start of the year, uncertain of themselves to a very confident young professionals in their 20s now to use an age analogy and looking into 2022, i think the mining company and the mining ecosystem is starting to become like 30-year-olds, well established, credible, access to lots of forms of capital that weren't available before i think that kind of speaks to the sector as a whole. we're seeing everything mature quickly. not only capital markets but regulatorerieors are now takinge space more seriously you have bitcoin ceos, cryptocurrency ceos going in front of congress, meeting with senators, and getting attention. they're having conversations

so we're seeing this whole thing mature quickly and that can only be good for the space. >> so bitcoin prices around 49k. what price do you need it to be, peter, to be profitable as a miner? is there a level >> you're going to like this number our margins for pretty much all of 2021 have been record margins. they have been in the 80s. and that's just not for us that's for a lot of our peers. we're looking at a price of let's say between 5,000 to 10,000 depending on our cost of power and a number of other factors. we are extremely on the profitable end of things right now, and looking ahead to 2022, we're expecting to see more hash rate come online there's going it be more and more miners adding more and more machines margins are still very strong, and we're on the extreme end of profitability right now. >> i was going to ask you whether it's more difficult to mine bitcoin right now, just because of the supply and because it resets every few weeks. and what that's like for you

dealing with that challenge. >> it's been an interesting year for miners because of course in the middle of the year, we had this unforeseen event which was the chinese banning bitcoin mining, and that meant half of the network hash rate came off line, and no one saw that coming it was expected to go the other way. more and more hash rate was expected to come online. more and more machines were coming online, it was so profitable instead, we had this big dip of hash rate and that meant for miners like ourselves, our margins continued to be really strong even as the price of bitcoin softened looking ahead, it's going to continue pto be a profitable business, but it will be less profitable in 2022 than in 2021. >> and what about the sustainability problems with your business, with mining specifically i know you have been out front in trying to come up with solutions for this industry. are there any besides just buying carbon offsets?

>> yeah, i think the first and foremost most important solution is to not use fossil fuels to create bitcoin and like you said, we have been at the forefront of that we have been a very esg friendly miner starting up with setting up in quebec, using hydroelectric power. we're also building a large facility in texas tapping into a grid with an enormous amount of renewables, namely wind but also solar. they're looking for renewable power. some of them are trying to follow our lead and become carbon neutral or even carbon negative but if you compare bitcoin mining to other industries, we're still far ahead using more renewable power. the majority of power being used to mine bitcoin is coming from renewable sources. that's not something that has creeped through into the popular consciousness so far, but that's the message we're out there telling, because it's a true message. >> tell elon musk he can accept

bitcoin again. peter, thank you for joining us. >> thanks, sara. >> peter wall of argo. >> up next, mike santoli is going to look at whether dividend and buybacks will continue to benefit the companies that put them in place in the broader market in 2022.

an update for the market today. first in the last four days. let's go back to mike who is looking at buyback dividends and the impact on stocks >> yeah. kind of quietly this year, this theme of buying has outperformed you see a couple of etfs based on buyback company or those that have a blend of dividend and buybacks worth noting pure dividend strategies have not really outperformed. at least on a price basis. a lot of banks in there. those buybacks have been new record levels. take a look at the overall yield from companies sending cash out to shareholders. in other words, dividends plus buybacks as a percentage of total market value it is on the low end of the historical rate. it is around 3%. just above where we were late '90s so it's not so much that

companies are not in record numbers buying back. they are it was at a trillion-dollar annual rate. the market is so high right now, it's not as big a piece. and therefore, the ability of buybacks alone to really drive returns, probably not that great. a lot of people looking at this would say on the bright side a 3% shareholder yield as this is sometimes called is better than you get from bonds right now. with everything, the scarcity of yield is another way to consider whether something looks expensive or not in this environment. >> yeah. mike, amazing. you never cease to give me interesting statistics, even at this late moment >> i try >> incredible. it really is hang in there. we're all rooting for you. >> i'm holding down the fort alone. >> let's get back to the markets. boeing, a driving force behind the rally. fi ondut why the stock was flying high. this broker is your.

let's open your binders to page 188... uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab. ♪♪ in boxing or any other business,

one day, you're gonna take a hit you didn't see coming. do you stay down? or do you get up? [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪

boeing, one of the big winners in the dow today phil explains why. >> david, a big order for boeing today. ups ordering 19 767 freighters

with boeing's producing of the 767 right now at three per month, you do the math that comes up to six months worth of 767 production. for boeing, this caps what has been a huge year when it comes to cargo plane the orders they've racked up relative to 2019 and 2020, look how they've shot up. 28 and 23, the previous two years. 80 cargo planes ordered this year so for boeing, it's been a nice year when it come to the freighter orders cargo freight traffic is up 8.7% compared to 2019 and that is one reason more companies, ups, others are saying we need more of these planes one other thing to keep in mind with shares of boeing. rbc named boeing a top pick for 2022 and as a result, you put that together with the order news, it a good day for boeing by the way, rbc saying commercial traffic should remain strong entering of commercial airlines,

news within the last hour. delta ceo along with the chief medical officer, dr. henry teague, have sent a letter to the cdc requesting that the cdc take a look at their guidelines when it comes to quarantining for people who have breakthrough cases. people who have been vaccinated but have had a break through case of can have they believe the current quarantine time of ten days probably should be reduced down to five and they back up their suggestion with some medical facts, as you would call it. so that is a letter that delta's ceo has just sent in to the cdc. again, from delta's ceo along with the chief medical officer implications there, that if you have a much shorter quarantine time, people who are testing positive will be on the sidelines for a shorter period of time. back to you. >> very interesting. health care workers also come into that equation, one would expect as well, given concerns right now about potential

shortages. thank you. >> sarah, some final thoughts from you as we get to the end of the show >> it was a strong session the corporate earnings really trickled down to none tomorrow, basically. as a major company so we get into this period where we're watching the seasonal trends which as you've noted, haven't necessarily lined one history going into the last two weeks of the area with a loss for the nasdaq and the s&p 500 that just went positive for the month today. so what are you expecting? >> not perfect this time of year, although i don't think you can say therefore it will stop working. there is a chance that you get on this upside air pocket because the market has been sitting down from the day before omicron came on the scene, s&p is down half a percent.

one way to lead this bounce today, since midday yesterday, a sense that it is not going to ahead to heavy restrictions. that the world is kind of living with it and we might burn through this wave and be in a decent spot on the other side. maybe that's too hopeful but that seems to be where the market is heading. >> thank you, and nice to be here as well sarah, that will do it for us on closing bell i'll see you tomorrow on "squawk from the street. >> i'm melissa lee and this is "fast money. tonight on "fast," a secondhand surgery. tom lee is here with his outlook for 2022 why he thinks the biggest games may not come until q3 of next year what the block ceo had to say about the next generation of networking and what it mean for the stock involved and k-web, is it time to jump in or should you continue to tread lightly? we start with a big bounce for