columbus, ohio, biggest city by 2045 the oasis. would you be leslie picker 2 exactly the same vr? >> no. >> impossible. >> i don't have the power of a perfect memory. >> i remember that. >> sleep less. you would like that, too. >> impossible. thank you. thank you all for watching "power lunch." "closing bell" begins right now. ♪ it does. thank you. welcome to "closing bell." i'm wilfred frost at new york stock exchange major averages rising. gaining steam throughout the session. on record close watch for the s&p 500. >> for the 69th time of 2021 welcome, everyone. i'm sara eisen consumer discretionary stocks up today as new data showed the strongest pace of holiday sales growth in 17 years

energy making a move higher. wti crude back above $75 a barrel the nasdaq outperforming big tech stocks leading higher and semis doing the heavy lifting today. 59 minutes left to go in the session. every sector is green. >> quite comfortably we'll speak with the ceo of check point about the vulnerability and how companies protect themselves and supply chain challenges and opportunities with the ceo of fathom making the spac trading debut today. >> first up let's focus on the big stories this hour. mike santoli tracking the market action and leslie joseph with the latest on the headache facing the airline mike, what are you focused looks like energy and technology

on top which is unusual. >> somewhat unusual. it's a pretty broad rally. i would say a deferred fomo. november and december were choppy given how strong the market was going into november a property of preselling anybody who had to or wanted to really bring down risk levels they did so and why the average stock did so poorly. coming in at a record high is the formula for the bulls running up the score that's in the s&p today. we're 1% above the prior intraday high. seems like we levitate we going sideways point to point. three years, really s&p 500 has been amazingly rewarding more than doubled from the intraday low late december of 2018 remember, that was that big near 20% pullback and in fact we have

almost if you drew a line from that very furious rally we are exactly where you expected to be despite the crash in early 2020. the market doesn't owe us very much here. compounding at 28% for 3 years doesn't mean it's over because late '90s you tacked on more from there did want to weigh in on this talk again "the wall street journal" pointing out today it seems like the market is top heavy. a handful of stocks driving things and added more market cap than most others but looking at the chart with the equal weighted s&p against the regular s&p 500 as well as the reverse market cap weighted s&p with the smallest stocks with the highest weightings they performed in line the average stock has done okay relative to the index even looking at the aggregate dollar

market added the largest added too much. >> pushing back against the giants driving all the action. do you pay attention to the year ahead forecast from the big strategist this is a year where we are up so far on the market, 27%. last year up double digits 2019 up almost up 30%. way above average returns, aren't they? what's the 2022 forecast >> i do pay attention to the strategists' forecasts to take the temperature whether expectations are ahead of themselves or moderate the consensus is a 5% upside year in the s&p 500. the average year after a 20% or more gain in the prior year is like 10% it's good we don't get ahead of

ourses '95 to '98 did the same as the last three years i don't predict it going up but good when people don't necessarily extrapolate the good f times in a straight line. >> when you are here in studio doing the market checks you have a modern piece of tech what on earth is that tech behind you >> oh, that's the latest in clock radio technology 50 years ago. so the clock doesn't work but the radio does and i listen to ball games, sometimes mickey mantle at bat when i listen. >> i thought maybe it's a small microwave. >> no. >> thank you mike - >> not a metta verse. >> later in the -- >> exactly

your dad is from the instagram posts very forward thinking. >> yes >> oculus gift in the stock. airlines lagging today after issues led to cancelations leslie joseph here to discuss where things stand this hour one thing that i thought was interesting is clearly a high percentage of cancelations at a busy time of year and not perhaps the full fury of passengers being upset and many able to work from home. >> this isn't like a blizzard of 2019 and 2018 with getting back to work and messed up the plans for the week people are flexible now and travelers putting off the trips for most of the pandemic 13 million screened by tsa week

ending yesterday on sunday that's almost double from a year ago. still below, 15%, below pre-pandemic levels. people are happy to put off the trips but tens of thousands of people stranded and plans disrupted is not what the airlines need right now. >> what is the big problem is it just omicron and the high number of people calling out sick >> there is some weather but what we have heard from airlines, delta, american, alaska, that omicron is affecting the crews. they have to stay out for quarantine they're pushing the cdc to lower the recommend days from ten days to five. so that is something same way that covid cases have gone up and affect crews and you need people to fly the plane.

>> have these stocks been hit hard by omicron as if this was going to be an issue that would really derail the earnings or have the stocks been resilient and looking through to the other side >> they have been. the stocks came off the lows today. the shock. we saw the mass cancelations summer into fall and seems like it will get better throughout the week and throwing money at the problem and giving cabin crews, pilots extra money to pick up shifts and stabilize the operation a little bit but we did see stocks drop a lot when omicron came out and detected after thanksgiving lots of concerns about the international travel just starting to get going again. lifted the rules in november and then pull back travel restrictions all over the

world. airlinings are sayinging it's the international side affected by this but they go into a lull. there's questions still about business travel creeping back and will businesses continue to push back the return to office and put limits on business travel but the outlook for 2022 is pretty good a lot of trips over two years business and leisure and supposed to come back in a really big way. >> and just quickly on the cancelations, what about passengers do they get credit how do the airlines handle that? >> if the airline canceled the flight you are entitled to a cash refund and passengers are as far as we know getting those. if you aren't you should ask the airlines trying to rebook as many as possible put them on other planes with connections but they might be

more flexible than they would be in a -- not allowed to work remotely as much as they are now. >> leslie joseph, thank you. all the airlines off today and off the lows of the session. find more at cnbc.com. up next, the game changers for your portfolio brandon ross will give us the top video game plays for 2022 and a win on christmas you're watching "closing bell. s&p 500 good for a gain of more than 1% and another record close.

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metaverse winning christmas this year. meta had the most popular app on apple's app store on christmas day. joining us how to play the video game stocks in 2022 brandon ross of lightshed partners. thank you. my brother-in-law whether's kind of nerdy software guy got the oculus and we played with it and my 4-year-old son is a no-no don't do that to the kids. here's my biggest question. >> sure. >> it was fun. played basketball in the metaverse. but do you need a vr headset by facebook to engage in the metaverse? you don't have to do that are roblox. >> i don't believe you do at all. i think that it's natural for facebook meta the lean into vr

because that's the asset that they have that will be a part of the metaverse going forward but i think it's one way that people are going to interact in 3d space in the future and you're still mobile -- playing a big role in that people won't have headsets all over the world where technology lags and you can tell me what you thought but any of us really feel that comfortable to sit and wear a headset 24 hours a day like you do in "ready player one" or a dystopian film. >> definitely not. 15 minutes and i was good and getting dizzy and feeling a little lonely with people around me what is the single best stock play for 2022 if you are bullish on the space >> we are bullish on the space i think facebook is going to

have a place i think that vr will be a tool but roblox is the really one company that has built out the building blocks of the metaverse at this point. where there is a true developer flywheel with thousands of experiences being created to hang out in interactive space and going to be able to gradually age up as some of the developer tools get more interesting and see real photo realism in the experiences. >> my question with the big caps companies that are worth hundreds of billions, will any get behind any missing the next stage so wildly we see huge market caps collapse >> no. if you look across the mega caps

they all will have a role in the quote metaverse if that ever does exist amazon and microsoft are a very important part of the communications infrastructure. even cable companies probably going to have to update the plans providing the broadband pipes for these experiences. and facebook as we just said has oculus which we believe will play a role and apple's devices have massive market share and will continue to. >> because you really like roblox i was wondering if -- how big the first mover advantage is or if the pioneers of the internet like the aols are not the rulers right now. >> we wrote maybe a month ago to compare roblox to aol.

the difference is that roblox while closed ecosystem is built to scale that ucg and now professional creator flywheel in place continues to create new and bigger experiences which are onboarding new people on to the platform we believe that epic games when they launch fortnite and meta will have a place and may cut roblox off at the knees in terms of aging up. roblox needs to move quickly on that but we think where roblox has a strong place and could be a multi hundred billion dollar company. >> thank you so much for joining us. >> thank you we have 41 minutes left. we are set for a record closing again for the s&p 500. still up by over 1% in today's

session. the ceo of firm check point talks about the latest hack and how firms can protect the networks check out some of today's top searched tickers apple, tesla, 10-year treasury, w industrials and s&p. we'll be right back. and give lisa a break while you find someone online who can help. slack. where the future works.

welcome back the swift spread of the omicron variant throwing a wrench in economic forecasts for the new year hi, steve. >> hey, good afternoon between the flight cancelations and forecast, the virus is spreading, they warn sending the forecast the numbers are a work in progress depending on the spread of the virus. gdp expected to be near 7% and

marked down a bit. the general trend is that growth is pushed into the second quarter. joe brusuelas writes despite risks, the american economy will push right through the impediments on the back of rising employment and solid income gains headline inflation seen peaking this quarter gradually coming down over several quarters the virus surge could worsen inflation for goods. another shift away from services more spending on goods and hurting the supply chain wilf >> i can clearly in the short term omicron is a big swing factor as to what people expect next year and this quarter what are the other big swing factors when weighing the gdp forecast what the fed does? whether build back better comes through? >> build back better

the child tax credit expiration is that dip in the first quarter, a big part of it. build back better with tax and spending implications. that's a part of it. the fed when and how much it ends up hiking is a big part of it overall the inflation story is maybe the biggest part some people optimistic and others like larry summer over the weekend didn't seem optimistic to bring down inflation over the next year. >> thank you. after the break, go daddy higher today getting a big pop in today's session briefly positive for the year what's driving that move plus a check on bonds. yields mixed across the curve today. we were at 1.49 on friday. little bit lower yields. a mixed curve. we'll be right back here on

"closing bell.

31 minutes left of trading check in on the individual market movers. shares of casino operators in the red this afternoon why companies falling in the trade falling amid questions of travel demand those stocks both down less than 2% activist investor starboard

acquiring godaddy. 8% higher and basically year to date on godaddy while starboard not saying much ant the investment if you study jeff smith and starboard he's gone after domain registry companies before and i would assume here the story is it's a good business. recurring revenue model why the stock underperformed and the company. so will be interesting to see what they push for in terms of any changes in management or the board. they lost a battle to box and ultimately won that war because the stock is up 40% so far this year. >> yeah. we'll have to see the deal $800 million position so far and maybe grow in due course

stock up 8% as you said. time for a news update hi, rahel. >> hi. france is tightening covid restrictions with a record for new cases. public gatherings limited to 2,000 people indoors and 5,000 outside and no curfew for new year's eve. a croatia thousands of people waiting in line for covid vaccinations a significant number are russians seeking western vaccines getting certificates from the eu for travel and a brit that traveled to get the j&j vaccine not available in uk. crews believe they found a second time capsule as the site of a removed statue of lee

might include a rare photo of lincoln and the coffin the governor said it won't be opened today and we have to wait longer to see what's in the box. >> wow quite the find thank you. we have got about 29 minutes left in the session. near the session highs and set for another record close on the s&p 500. which is up 1.2% pretty close to the session highs in fact now. dow up 0.8 nasdaq up 1.2. after the break preventing hack attacks. talking to the ceo of check point about the vulnerability leading to upwards of 100 hacks per minute oh no.

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a new cyber attack vulnerability is throwing the world into a cyber pandemic. according to cyber security company check point cyber software companies within a week they've seen attempts of nearly half of all corporate networking worldwide to explain the vulnerability and means is check point founder and ceo gil shwed. thank you for joining us tell us about the latest threat. >> good afternoon. this is one of the worst vulnerabilities we have ever seen on the internet it loves data and available,

pretty standard. available on every company saw almost 500,000 developers that choose this package almost every company in the world is using that and makes it very dangerous because it's very infectious you send a stream with the wrong message and then you get into someone's system and when it's everything from ransomware and basically running every call a hacker would like to run on pretty much every corporation around the world >> how are you fighting back against that more broadly, are cyber attackers smarter or are you guys able to fight back better than any point in the last decade >> the hackers are becoming smarter. we have seen a few hours a

couple days more than 60 variants of attempts to exploi the industry reacted pretty well we have seen almost all the companies with publishing protections. i'm proud about check point. i think the only vendor that automatically through the ai technology to prevent it before it was known and identified some rogue attempts and stopped them on relatively new software and protecting web services around the world. >> i was curious about the differentiator the stock wasn't exciting over the last year. another shot straight up as everybody is increasing the i.t.

spending why what does that look like for you with microsoft in the game and growing fast? >> first we are in a hot industry very competitive industry. it's a confusing industry for customers and competitors that have very strong sales and marketing machines what we have been busy is preventing against fifth generation cyber attacks building infinity, the only platform to protect against the attacks and doing very good job on the technological side and been able to secure the customers in a significant way the sales of the infinity platforms almost tripled in the last quarter and customers are migrating into that. i think we can do better and

deserve to grow faster and invest in sales and marketing with the technology that we have. >> do you think that the valuation multiple suffers because you are not the newest company on the block and i guess in the meantime will you just continue to focus on significant buybacks of the stock? >> i think it's not up to me to say, to analyze people's valuation and one of the very few companies making money that has been growing steadily since the ipo for 25 years again i think we should do better and invest more in the sales machine and optimize the way and grow much faster there's no doubt in my mind that we can do more >> do you see i.t. spending on security growing in 2022 broadly from corporates from 2021?

>> in general yes. everybody says that it's a top priority the investment is growing. we need to be worried a little bit about that and i think that cyber is going to continue to be critical to the world future because we have seen unfortunately the dependence on the internet is much higher. we should be very proud people in our industry and the internet kept working and securing the world and a few things that kept working in the world when most of the physical world was shut down was the internet and i that trend will continue. the working from home, reliance on digital services and entertainment will continue and only to be secured.

>> gil, thank you for joining us with that outlook. we appreciate it. >> thank you very much. after the break, retail rings up a holiday victory and chip stocks powering the nasdaq. those stories and more when we take you inside the market zone. watch or listen to uli os ven the go on the cnbc app "closing bell" back in a moment.

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welcome back we have a great lineup in the second hour of "closing bell." top airline strategist breaks down the sector and how it compares to the previous outbreak the media stopwatch list for the

new year fathom ceo will join us. it is down on the day. we'll talk about the situation in america on inflation and whether anti-trust enforcement could be a tool. first we have 15 minutes here to go and we are now in the "closing bell" market zone mike santoli here as always to break down the crucial moments today we have got jim le camp from morgan stanley. stocks are rallying today. all 11 sectors are in the green. on track for another record close and something on thursday. if you look at when's leading there energy up 2% and technology talking the chips in a moment. crude oil prices up 2.6%

is this more than just seasonal and this is about sort of news on the omicron variant and how long and how hard to hit the economy? >> i think it's a combination. seasonal part of it does make sense that the winning groups follow through and continue to tack on gains. that's the case with energy and technology looking at what's moving the s&p nvidia contributing and disney and amazon as a drag yeah we're coming out of this period where for as much as the case numbers are alarming we don't see a lot of lasting impact aside from the one off closings and deferrals and you have energy, crude oil back to the lower end of the range and a lot of things at a relatively comfortable spot resetting expectations through november

and december. >> jim, what's the outlook for next year? is it hard to see similar returns to this year >> i think it is you see tame expectations. a reflection to be late in the cycle. i don't know the inning. not the first inning may not be the ninth inning but the late innings if you want to look for high expectations for next year you find 9% and then get down to morgan stanley looking at a drop of 4%. i think it is tough but the reality is interest rates are still really low even though the fed plans to raise them. we don't know for sure that the fed is going to raise them remember plans can change and they did in 2019 they went from hiking and tapering to cutting by march of '18 of '19

there's no guarantee to be too aggressive and the treasury boards send that signal why when the yields remain contained and the curve invert i think the market is okay because there's a lot of needs for returns from big pools of money and can't get it in the bond market. real estate cap rates are low. i understand valuations are high and going to be a stock market -- stock picker's market rather than an all in or out type of market i think returns are harder to come by but going to be there to be had as long as you're in the right sectors. >> the semi etf hitting a record name today josh lipton with a break down. josh >> check out the smh etf that tracks the chips on

track for a record close unabout 15% in the past 3 months more than 40% this year. some names in etf, amd and nvidia up 50% this year. broadcomm hitting new all-time highs. investor demand is strong. investors sound optimistic where's the smart place for investors to commit call in 2022 back to you. >> thank you mike, to the point with the nasdaq not a record high again but the semis are. if you look at one-performance, pretty much every sector looking at 4% or so of gains other than real estate and utilities. this is risk on more than sector rotation. >> largely yeah. i think the market kind of bent

a couple of times. once it seemed the pullback is not going to go deeper than 4% there's relief off the lows of the lows of 4500 now a year end grab for risk and set -- the scene was set by the liquidations from a lot of crowd and sort of speck lative positions and semis in the sweet spot with the secular thick working and what's fascinating is biggest specific call is semi group as an etf is up 40%. i do wonder if there's going to be a mean reversion within some of the hot sectors opposed to being the same winners. >> it is amazing nvidia up 140% or so for the

year so big divergence there. amd up more than 60% does that continue are they must own for 2022 as well >> i think it continues. if you look at the industries that everybody points to, we are going to have to see a big ramp up of car manufacturing. that takes a lot of chips. but looking at the sectors that wall street points to whether it's space technology, medical technology, artificial intelligence, cars that have better drivability in terms of auto drivability, all these things require chips and we've had a shortage trying to ramp that up and coming along slowly and we really like the sectors whether it's space

will every chip stock go up? no intel is a good example of a company maybe not in the aefr yeahs that wall street prefers the chips be in and the leaders volleyball in nvidia and advanced microdevices. i think there's a number whether it's the equipment companies or the manufacturing companies, there's a lot in the sector to like here. doesn't mean you like every one in the sector. next year will be a picker's market and the semiconductor are maybe not a favorite sector but one of the favorites and looking at the industries they service you got to be bullish. >> that's a tease to the later section of the show. don't tell us your favorite sector we'll hit travel stocks.

seema mody with a look at the biggest movers. >> typically a peak time for travel but staffing shortages, bad weather sending shares lower led by united airlines down about .75%. also debated the knock-on effect on hotels. does this lead to a lower check-ins? after posting big gains last week, four ships with covid on board. no cancelations. just cut short and that's key. >> also i wanted to ask you. i was reading about the cruise lines and how even though they don't have crazy outbreaks but the fact they do makes it hard to disembark on the stops planned because the locations don't want them to get off the ship so how do the companies deal with that

>> so far the cruise lines since restarting have been able to disembark despite passengers testing positive on board. in 2020 a lot of cruise ships with people that tested positive and had a hard time to disembark. that situation changed and addressed in the protocols with the cdc and the ports but of course if we see more pushback from cities and importants that could be a biggest issue. >> thank you so much mike, travel stocks corrected somewhat off omicron fears but never as significantly and bounced quite quickly. >> it guess it depends how you slice it as a group the reopening hotel, restaurant, travel type names

peaked in march and a couple lower peaks and not as if they got washed out the omicron sell-off a reflex. a what if and nobody prepared to completely shift expectations toward a prolonged impact so that's why the stocks never did get that slingshot effect. >> retail stocks with a strong session after new data show the surge in holiday spending. hey, court. >> hi there. the xrt up just shy of 1% after holiday sales grew 8.5%. 11% growth online. department store sales grew 21% according to the report. shares of macy's, dillard's and nordstrom up 2%. apparel sales with department stores up more than 47%.

ralph lauren, american eagle up. and sales of electronics up more than 16% shares of apple up 2%. best buy higher by 1%. amazon and target with a share of that pie. back to you. >> thank you so much jim, do you think the consumer remains as strong as it has been, as resilient next year >> i do? you can take this in a lot of places if you look at the dip buyers it indicates people have cash looking at retail sales it indicates people have cash estimated $4.7 trillion on the sidelines and had we not hadth flight cancelations i think you would have seen people travel and spend money. looking at bars and restaurants what activity is pretty good and

suggests that people have cash unemployment rate is healthier than it was. not perfect. looking at the u-6 rate is pretty good and close to how they now define full employment. so i think that the consumer's really in pretty good shape. there's still uncertainty caused by covid and the omicron variant and not new hospitalizations compared to delta and the others and certainly not a lot of deaths there and we are going to be a jalopy and consumers are in pretty good shape and the american economy is very resilient here. >> what a lot of the bulls on the consumer pointed to is the savings in the pandemic. stimulus checks went out people collected unemployment. the polls said we have the

elevated savings last week the personal savings level went back to 2017. >> that is a little worrying it is not -- ultimately at the end of the day to your point a savings rate of 6% is where you would find perfect consumer spending but the evidence shows that consumers are still spending and the jobs numbers are really pretty good i think unless this -- we have a new variant or this is worse than it appears to be right now you continue to see improvements and one other thing i like about the consumer is jobs quit rate so it's going to be interesting to see what happens with personal incomes in the first quarter of next year an enmight

show something that surprisingly healthier than what we have seen. >> we'll watch it. two minutes to go. what do you see in the market interims internals long one >> yeah. strong one so it's pretty strong. not really stellar nasdaq is weaker it is the mega caps outperforming on the day quarter to date health care. bio tech is a weak point in the market volatility index record highs. kind of coming in, cracked below 18 at times. a premium because you never know what virus headline and not far past from the selling squall of a few weeks ago. >> 30 seconds left of the session and set for a record

closing high and the session high as things stand approaching the close. 1.4% of gains for s&p 500. 342 points for the dow which is a session high and 1.4% gain for the nasdaq s&p though taking another one out. record closing high up 1.4%. all 11 sectors higher, sara. very strong finish as you say session highs and another record close for the s&p 500. 69th of 2021 welcome back to "closing bell. i'm sara eisen with wilfred frost and mike santoli coming up this hour, 3d printing company fathom with a trading de de debut today what about streaming

giants first up jim lecamp is still with us. mike, a nice run-up into the close. talk us through the seasonal impact here at work. today is the start of the santa claus rally. is it not? >> it is yeah starts today will run through the first days of next week in the new year and represents a period up over history 80% of years and pretty pronounced way after today up 1.2% to start offer and in a head start and the usefulness of the period is a strong tendency to be up that if it isn't it's tended to mean a rough patch for stocks in the next month of the new year and beyond that. it's like a little bit of a negative checkoff. if it goes up that's what it should do and if it doesn't be on alert

>> jim, what's your view towards the mega cap tech names for next year >> if rates rise it's a great question i think it's one of the magic questions and that is where are interest rates going to go if rates rise i think they're vulnerable and i think the market will shift to the value look and the market may finally after years of false advertising, the market may finally rotate back into value this year it did some degree this year and spotty fashion but value stocks are now trading at about 19 times earnings so growth stocks they still are catching a bid because the earnings growth is still there and the much advertised rise in interest rates hasn't really happened yet with the 10-year treasury where it is i think you will see rotation into the financials, industrials

and energy so i do think that that is something to watch and will be one of the key themes for this year also if you want to look for places to watch the markets in terms of warning signs watch that yield curve to your point and high yield spreads intact leading indicators or economic -- coincident indicators showing an economy and still showing that we have growing. rates aren't running away from us i think that's a pretty healthy mix. if rates move up we have to consider rotating into the other areas. >> s&p 500 closed at a record high once again despite the surge in omicron cases but the next guest said the market is susceptible to shocks and a specific way to position joining us is cameron dawson

cameron, thank you for joining us my first question is similar to what i posed to jim. do you think valuation multiples might come down next year? >> i think that is currently a risk for this market earnings backdrop is solid with good economic growth but given the fact that we have seen this very ultra loose, ultra accommodative interest rate policy environment supportive of multiples the risk is rates go up and it is really rates going higher and a biggest rate for growth stocks here. as rates fall in 2018 all the way down to negative 1% today, whiff seen growth valuations go from 17 times to 34 times today as jim said. so the challenge that we have if

you're way overweight growth is seeing the real rates move higher you could see multiple compression so despite what's going on in the earnings environment, despite the fact it's names with strong secular growth tail winds we could see choppily trade for growth names because of that multiple compression. >> so it sounds like you make the case for value stocks, cameron. what do you like in that environment? >> so we do think that we need to move to becoming more balanced between value versus growth we don't think that we are ready to a call of saying overweight value. we'd need to see a much weaker dollar and sustain bring and a much steeper yield curve and the higher real rates but what we like within value is we want to de-emphasize the financial parts

of the value sector. we see weak areas of banks, insurance. relative performance trends are weak in financials seeing things we like of value is real estate good things within materials and health care as well. moving overweight the financials and overweight the real estate, tirls and health care of late cycle moving into this cycle. >> jim, do you agree avoid the banks? >> i think there's some po possibilities for them this year there's no money velocity in the economy. people think there's a positive multiplier but over 140% debt to gdp government spending has a

negative multiplier. why? the revenues go to debt service. i think the economy's okay but not running away from us i don't think interest rates go up too far too fast. if that's the case hard to be bull irn on financials i won't be heavily weighted there until i see the whites of their eyes of interest rates going up and the fed is talking it but the 10-year treasury is not signaling it. >> mike, i was going to ask you how consensus of a call that's becoming more and more people on cnbc like cameron talking about value over growth and valuations will be hurt of tech companies. the russell is 8% off the highs as the s&p 500 makes new highs so what does that tell you >> it obviously is definitely a plausible call and the reason

people call for it is part of the cycle where money tends to look for predictability and relative value i could see it playing multiple different ways within and between sectors. we also are going into a year with overall earnings growth decelerate a bit that often means that the companies with more predictable earnings are the ones that do well so i can see it playing both ways people say emphasize quality right now. the interesting thing is the quality indexes are jammed with things like faang stocks because that's what represents a lot of the predictable and high profit margin companies out there. >> a quick final question. what are you telling the clients to do with the bond holds? >> we think that losses come on

a real basis and not necessarily on a nominal basis so if you have a bond portfolio we don't really see a big step up in interest rates because there's so much debt interest rates need to stay low and the challenge you have is that the losses then come because inflation likely stays higher from here and you get losses on the real side of the portfolios and you get again pushed up the risk curve have to take on interest risk. so it's not an easy answer because you might not see that big uptick on a nominal basis and look at the statement say i have losses and comes on the real basis as interest rates are expected to continue to stay low. >> cameron, thank you so much for joining us today jim, before you go we want you to zone in on the best trade

idea for next year what are you going for >> i gave you one. semiconductor and then energy. if you look at california they're way behind on the goals for esg. how do you get theres the policies have backfired. we use more coal now than two years ago and the infrastructure for solar and wind is not capable of handless our energy demands and hampered fossil fuel production and why they use coal and doesn't make sense from a policy stand point but i know this we need energy so i would focus on permian basis. companies with good assets go to the majors with the big dividends or domestic companies. i like energy and starting to

look at uranium closely because i'm bullish on what's pragmatic and that's where the devil's in the details and the supply and demand forces behind that are very bullish for energy particularly fossil fuels. >> we have seen prices run up and back up, jim they get corrected in omicron and now heading to 79 and 78 >> yes. >> last time you heard president biden talking about it and releeszing the strategic petroleum reserve and the impact on inflation and americans do you worry about policy moves to fight these higher prices politically? >> yeah. so they released the strategic petroleum reserves the amount is tiny compared to daily usage and production

they haven't done -- in fact, his energy secretary didn't know the answer, how much production was in the united states and how much we were using every day they don't have a grip on it if you look at the moves in oil and gas what happens is the end move is always an examggerated move in may of 2020 crude went negative because the futures traders took over. that's what happens on the upside in 2014 spiking up to 140 is because the speck tailors had taken over usually the bull moves are driven by the futures traders and have a spike move. not a move to roll over at the top. i'm expecting the same for energy here.

i don't think the governments around the world, not just our government, realizing where we all want to go from where we are and how difficult that is and what it will entail. >> jim, thank you for joining us. >> thank you. we are just getting started on the second hour of "closing bell." we talk about the cancelations over the weekend and whether the carriers face more issues into the holiday. plus michael pachter looks at stamg names to buy now we're back in two minutes.

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give your business the gift of savings today. comcast business. powering possibilities. airline stocks lower today after the omicron varptdiant let headaches over the weekend let's bring in sheila from

jeffrey's. thank you for joining us how much damage does this do to bottom line earnings expectations if we have two weeks in total of quite severe flight cancelations? >> thank you for having me, wilfred. it is hard to tell it's 17% below 2019 levels thanksgiving weekend about 10% below. you could say 5% of the hit is due to omicron and remaining 5% is cancelations. we see cancelations as high as 10%. somewhere 5% they should be sub 1%. i don't think this goes away because we turn the page to 2022 and bottom line the airlines are not only confronting demand risk but inflation headwinds with the workforce and labor is tight and paying folks if they quarantine.

>> in the very short term we are talking about cancelations medium term what about bookings? have they been hit by omicron? >> it is hard to tell. in the season everybody wants to hit the road and travel. we see bookings that we track down about 9% month over month to give you a picture leisure is 10% off 2020 levels in the u.s we are waiting for corporate recovery that's very staggered and european recovery. >> i don't know. haven't the tsa numbers been strong last week 2 million people passed through tsa every day some numbers as strong as normal, aren't they? >> they are. they're only off 10% below 2020

levels but normalizing you see some falloff we saw this with delta and down about 5% due to the impact of the delta variant. it is hard to see the numbers given so late into the year. highest tsa numbers you should be seeing and have to wait to see in january and february and i think it will be more of the same u.s. domestic 10% below 2019 and won't see the recovery and what we are hoping for is international down 45% in q3 we were hoping to get to down 30% below 2019 levels in q4 and might not happen and stay at that mark for two quarters. >> sheila, you have american, united and southwest as holds and delta as a buy why is delta a standout buy? >> a few reasons we like a premium carrier.

people gravitate to the premium carrier and able to get price. in the u.s. market is seeing a flood of aircraft come in and increasing capacity about 20% above 2019 levels and hard to get price and we like delta for the pricing premium potential and two hoping for a transatlantic recovery and corporate recovery 50% below 2019 levels and delta has the exposure to business. >> airlines down 2% for the year so far thank you for joining us. up next, 2022 streaming playbook key names to look at as we head into the new year. around streaming while many companies struggled with supply chain issues fathom has cashed in on that

disruption the ceo will tell us what's in store for the company making a public debut tofd today. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

subscription growth slowed

in the last quarter and with omicron spreading our next guest said this will accelerate streaming consumption next year. joining is michael pachton thank you for joining us we hope omicron will be temporary but you think streaming subs will grow significantly next year in part because of it. >> work from home is a permanent state of affairs returning to the office is three days a week i think. not service workers or delivery people have a luxury to work from home. probably two days a week people like we five days a week and we have a couple hours a day of additional free time and will use that free time to consume entertainment. so yes i think we consume more television in general and we're now seeing a trend that content

is flowing to subscription services and not as available on broadcast tv many, many series like "1883" and "mayor of kingstown" and getting people to subscribe to watch the shows. >> so, michael, how would you play it? which stock? >> i think that it's kind of a tale of two consumers. you have the wealthy people to pay up and subscribe to three or four or five services. netflix is saturated and bodes well for hbo max and disney plus and then the late adopters who really don't have the money, aren't tech savvy enough and good for guys like roku as a search function.

really good for guys like redbox that's the last tech holdout who can't figure out where anything is and he knows what redbox is and gets a coupon. advertising video guys will thrive they're a tiny share and capture 3 to 5% of share of eyeballs and see redbox do really well. >> on activision blizzard there is so much drama with the companies and employee walkouts. i think three in five months since the company was sued in july how's the company been responding to the upheaval from employees in the ranks and the

questions after that "the wall street journal report" alleging they knew about it >> i love bobby and an awesome ceo. among a favorite of all time i don't want to discount the seriousness of the harassment that went on absolutely a dozen or more women harassed that has turned into every single employee who was alleged who have been a harasser is gone they have a zero tolerance policy and a manager that doesn't report it is term rated. going forward they're in good shape. the walkout looks to be a solidarity move. i haven't seen high profile employees walking out and the quality assurance testers. analogous to the janitorial workers at an amazon facility. easiest to replace

i don't see a serious problem ongoing at activision. i think it's fair to say bobby acted too late and he probably didn't do enough early enough but didn't participate and addressed everything as he heard about it and the lateness of the policy is holding the stock back will go away people will forget about it. they will recover. they make a ton of money a favorite stock in 2022. >> really? didn't know that. >> really. >> down almost 30% in the year. >> activision will make four bucks next year. $5 of cash and trading at a 13 or 14 multiple they have earnings growth. i would say 20% a year for 5 years. >> michael, thank you for joining us. >> thank you.

coming up, the newest spac on the street fathom making the public debut today how's the bottom line impacted by a big supply chain issue? we'll talk about it with the ceo next a look at shares of didi new reports of restrictionfos r shareholders, again. all the details when "closing bell" comes right back new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria.

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or live chat at calhope.org today. time for a cnbc news update with brian sullivan. >> at this hour the nrl delayed three more games due to covid concerns and will resume tomorrow after the extended holiday break with the new postponements 70 games delayed due to the wave of cases. add milwaukee to the places suffering long lines for tests demand soared. on the news tonight, preparing for the covid spread to speed up before it slows down again and the changing view of

what new year's celebrations might look like this year. join us. in colorado a court date is set to reduce a trucker's 110-year prison sentence. on january 13, prosecutors will seek 20 to 30 years for the man and the part in a fiery highway crash that killed four people. the sentence drawn outrage including an online petition for clemency with 5 million signatures back to you. >> brian, thank you. spac deals notching another record in 2021 latest name to start trabding is fathom under the ticker fath. hit the public market today after a deal fathom customers include tesla, google, amazon and 3m. joining us is ceo ryan martin.

thank you for joining us congratulations on the deal today. looked like the stock finished lower. remind us what you do for companies like google and amazon. >> sara, great to be on hire and appreciate the opportunity i want to thank all of our employees for hard work and dedication to get us here. thank the partners core industrial and everybody working so hard to make this incredible day possible for fathom to be a publicly traded company today. fa fathom accelerates product innovation they access the manufacturing capabilities across 12 capabilities and leverage 3d printing, machining, unjex molding and precision sheet metal. a way to understand what we do,

there's no product to pick up that will say fathom but you interact with thousands of products we have an impact on. smartphone waking you up the coffee the food you get from the fridge the car you drive. the plane you get on the products fathom has a direct impact on leveraging manufacturing capabilities. >> have you been able to step up in the supply chain crunch when the parts gotten hard to get or hard to ship or transport? >> yeah. i think what we hear from the executives we talk to every day is looking for more responsive, more on demand and agile partners and a couple examples that we have where we have stepped in to mitigate

significant supply chain challenges for the customers an example is we have a long term relationship with a largest agricultural equipment maker and came to us on a tuesday at noon and will have the line at 4:00 a.m. on a wednesday and within an hour we designed a part they had a shortage on. made over 500 in a 10-hour period they chartered a plane to outside walk and putt the parts on the manufacturing line at 4:00 a.m. on a wednesday morning and one of hundreds of examples how the customers leverage the capabilities across the facilities. >> wow very quick turn around is it always that quick? complicated parts that take long every? what is the pricing difference

cheaper for them or otherwise everyone would shift to you. >> depend on the part. another example to work on is a world's largest atv manufacturers with a shortage on a $10 aluminum casted part from an international supplier impacting the ability to recognize nearly $20 million of revenue so in this case they worked with us and within 24 hours we redesigned this highly precise part, leveraging our capabilities and took a month and produced over 2,000 and allowed them to recognize over $20 million of revenue because of that. depends on the part and the component. some cases 24 hours or a couple weeks but it is really all about understanding what's the outcome the customer's looking to achieve and provide that solution whether it's 3d

printing or 25 other processes we have. >> ryan, final question on spacs. this is the year of the spacs. most of the companies that wept public via spac are down from the listing price. we also saw another 3d printing company since going public desk top metals. i'm curious why this is the avenue you chose. >> we looked at the spac as a vehicle to take the company public why what different yates the company is we're not a start-up we have been doing this over three and a half decades we have strong relationships we'll have b over $160 million in revenues this year. we really viewed hps as a strong sponsor for us and a vehicle for

us to be able to take the company public and focused on is continuing to execute against the strategy quarter after year year after year and we believe it drives shareholder value solving real problems for the product driven companies in the world. >> you have to come back and talk about the supply chain. thank you for joining us. >> thank you thank you so much for having us on and we appreciate the opportunity. thank you. coming up, mike spent some quality time with the charts to break down a popular investing strategy combatting pricing increasing by the biden administration to tackle inflation concerns. "clongel bk tsi bl"acinwo ll pr? reduces inflammation?

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welcome back let's get over to mike for a look at quality stocks mike >> yeah. wilf, it is common for people to say that it's too many for investors to consider privileged the so-called quality stocks with strong balance sheets, more steady income streams opposed to more volatile, aggressive, cyclical stocks and there's overlap between the groups performed

against berkshire hathaway one would expect them to basically encompass those things with the mix so it's interesting to see to perform pretty well. roughly in line with the s&p 500. saying buy quality here is not saying buy low but don't consider the more riskier type stocks look at the chart from jpmorgan showing that low volatility stocks, sleeve of the s&p 500 whose stocks have been the least volatile, the premium valuation over value this is another way to say value is cheaper relative to growth than for sometime and brings up a question of a neglected opportunity but what investors are meant to in this point in the cycle.

>> hmm thank you up knicks, the big inflation fight. looks like president biden is turning to anti-trust authorities to combat rising prices we'll discuss how that strategy ulwo with a top economist when "closing bell" comes back - super excited to open up my diploma from southern new hampshire university. - i'm nervous, i'm excited. - [man] okay, let's see it. let's see it. - oh my gosh. - as soon as she saw this, i did it and it's here.

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welcome back we have got some news from apple. josh lipton has it for us. >> so some news on apple new york city stores will shift gears and do pickup only so in other words, not open for browsers or passersby due to the covid spike. you can't go into the stores apple runs about 12 stores in new york city. apple saying in a statement we regularly monitor conditions and will adjust both health measures and store services to support customers and employees and committed to an approach for the teams with regular testing and employee and customer masking, paid sick leave. apple has about 500 stores around the world and not first

time to adjust policy. for example, doing same day delivery in some temporarily closing some stores. tens of thousands of people here are paid regardless of when you see the changes in policy. nobody is furloughed investors care because the stores are important points of sale often a first point of contact with a product and apple managing this challenge for a couple years and also has a strong large online presence, as well back to you all. >> thank you so much for that. not hugely surprising news shares of didi slipping today. what drove that move and whas next for the company "closing bell" back in a couple.

welcome back we have some new guidance from the cdc. if you do test positive for covid-19, previously the guidance was to stay at home and isolate for ten days that is now being cut to five days though some conditions are attached to allow you to step outside of your isolation after that shorter five-day time

period if you have no symptoms or your symptoms are resolving, you can leave your house you must, though, continue to wear a mask around others for an additional five days but that quarantine being cut, sarah, from ten days to five days, is the headline of this new set of guidance from the cdc. >> something that will come as a big relief to ceos and businesses, dr. vin gupta is a pulmonologist and affiliate faculty at the university of washington and advises big companies like amazon. dr. gupta, do you agree with this new guidance, does the research back this up? >> sara, thank you for having me, a pleasure to speak to you guys i do what's interesting is that it applies to everybody, not just the fully vaccinated, which is where i think you might have some disagreements arise in the public health community.

what we do know is if you test positive and you have a case of breakthrough positive test after you're triple vaccinated, you may have mild symptoms, but you can test positive, and that positive test can go away in 72 hours. that does not necessarily apply to somebody who is unvaccinated, sara so the kinetics of the virus in an individual who is unvaccinated are very different from those that are triple vaccinated but i do think this is a great move for individuals that are fully vaccinated and for those who are unvaccinated, this will be met with some confusion, and i think some disagreement in the public health community >> why this change now, do you think, dr. gupta because clearly for a long time, the rule has been ten days now we change it to five days. might it suggest to some that the isolation period was always too long or has it got something to do with the current dominant variant being less severe?

>> it's multifactorial we're learning as we're going. we know if you're triple vaccinated, even if you test positive, your infectious period is very, very limited. so within 72 hours at most in many cases, especially if you have -- if you're otherwise healthy, lack serious underlying medical conditions such as cancer this is a good move for individuals who are triple vaccinated who might get exposed, now we're realizing that breakthrough cases are all around us, that this is the new normal, that the goal of vaccination is to keep us out of the hospital this is an important move. but again, to align with our ultimate goal, which is increased vaccination across the country, get as many unvaccinated people vaccinated as possible. i do think having a separate set of policies for the triple vaccinated and a separate set of policies for the unvaccinated would make more sense, it would more greatly align with the science as it is today what i just mentioned does not

apply to the unvaccinated. again, i think that's where you'll see disagreement in the days ahead >> so you think it should be, if you're triple vaccinated, then five days after a positive test you're good to go, but if you're unvaccinated, it should be ten, that's what you would have recommended, something like that >> i wouldn't have changed the guidance for the unvaxed, because, sara, what we do know is those individuals still could be potentially infectious for many days on end nothing has really changed if you're exposed and infected by omicron, you're a danger to others and infectious for others for longer than five days, you could very well be infectious outside of that five-day window. the fact that there's not a two-track approach is a little confusing. i'm sure we'll get more details. but this is absolutely the right move if you're triple vaccinated we have to normalize the concept of breakthrough infections, bring down the temperature when

we're talking about it, what it means, it will be much more common helping protocols in place will help normalize that. having a different set of standards for the unvaccinated still makes sense. a one-track approach, if anything, it's going to cause greater confusion. >> finally, dr. gupta, i wanted to get your take on the latest information that we have on omicron. i guess we've got quite a lot of data now from places like the uk to add to south african data and now a bit of u.s. data as well are you encouraged that it is significantly less severe than delta? >> all this data, wolf, is early, for viewers out there if we're unvaccinated, we don't have a lot of great data about what omicron does. what we do know is you get more of it in your nose and more of it in your nose if you're unvaccinated for delta, or even flu, it correlates with increased

severity of systmptoms i'm very hesitant to say if you're unvaccinated, that omicron is not a big deal. what we do know is if you're triple vaccinated, if you have that breakthrough case, it is mild, which is fantastic news, it aligns with why we get vaccinated with a contagious respiratory virus, you get vaccinated to keep yourself out of the hospital, that's what the data shows. that's what we need for consistent messaging >> thank you very much for your guidance, always valuable. dr. vin gupta, we appreciate last-minute advice for more on the economic impacten this change, the former special assistant to the president during the trump presidency joe, we'll have you back on another time to talk about inflation. >> sure. >> and antitrust because on this, i would think it would be somewhat helpful,

stimulative for companies to get workers back at work at a time when they really need to >> that's right, we have a 4.2% unemployment rate, roughly 2.5 million more job openings than people to fill them. so anything that gets the economy moving back in a safe way, the cdc says five days, that's great it means people can get back to bisusiness quicker. it's a supply side story i think it's great news. >> joe, i know that you have a slightly more bearish outlook for the economy next year. does this change in guidance affect that at all and outline why you're more bearish than consensus >> this is good news, it will keep the economy hopefully more operational than otherwise my bearishness stems rather from the fact that much activity was pulled forward because of the

extraordinary fiscal stimulus that gave us a boom in 2021 but unfortunately likely a bust in 2022 >> joe lavorgna, we had to keep it short for the breaking news, hopefully we'll have you on soon >> happy new year. >> happy new year to you mike, we closed at the session highs. we make a lot of the santa claus rally, and the seasonal factors, it is a real thing, as you indicated. where does that leave us heading into the rest of the week? >> we're obviously -- you have a cushion now, so that may be over the six days of this span, it would be tough to give it all back the 2000 example isn't necessarily the most comforting because 2001, you were kind of already in the middle of a bear market maybe that discounts the applicability here because we're just kind of running up the score, as i said before the stuff that's been winning continues to win

really benefiting from this shakeout that we had over the past couple of months. i think that's really important, you're not barrelling into the new year, when everybody is all in, everybody is very bulled up. we've almost preemptively forestalled that possibility, which is a net positive. >> mike, given the strong week or so that we've had since that pullback last monday, we've expected the vix to soften more than it has? >> perhaps i think it will take a little bit of time just because we're not so far removed from that little spurt up into the mid-30s when we did really have a little bit of a stress event in the market so it should dissipate out there. you also have to keep in mind maybe there's little bit of a premium baked into the volatility market because in theory we're a virus away from another air pocket that's relative to those years when we would drift down toward

10 >> "fast money" is next, but at 6:00 i'll be hosting a special, "your money 2022," plus we're taking your questions, tonight at 6:00. stay tuned all this week, in fact, because sara is hosting it later in the week, i'm starting off the week thanks for watching "closing bell." "fast money" is next tonight on "fast," nightmare after christmas. flight cancellations mounting from coast to coast. we'll break down the fallout for investors. plus the holiday season the strongest in 17 years. stick with this trade as we head into 2022. we're going shopping for opportunity. and later, a fast pitch. one of our traders is throwing out his best idea, why he thinks this chemical stock is a home run investment