it is 5:00 a.m. here at cnbc global headquarters. here's your top five at 5:00 one down, six to go as the year end santa claus rally sees the best start in more than 20 year this as the cdc updates its quarantine guidance for those who test positive for covid-19 but will it be enough to ease the shortages? one major retailer in new york city is forced to close its doors in store with no reopening date in sight. holiday travel headaches going strong as airlines rack up

hundreds more cancelled flights. and one giant joining the likes of nike, coin base and more with a big bet on the metaverse it's tuesday, december 28th, 2021, you're watching cnbc's "worldwide exchange. good morning, i'm seema mody in for brian sullivan at this hour kicking off your tuesday morning with a look at u.s. stock futures after stocks hit a record high yesterday. the dow up 91 points, nasdaq higher by 77 and the s&p 500 also trading in positive territory. this again after a very strong start to the final week of trade for 2021 with the dow gaining some 350 points, or roughly 1% in yesterday's trade, the s&p surging 1.4% to its 69th record close of the year. the index is now up four days in

a row for the first time since its eight-day winning streak since back in early november year-to-date with s&p is up 27.5%. if it ends up more than 28.8%, that would mark its best annual performance since 2013 not to be outdone by the nasdaq, coming off a big day, closing up more than 1.3% for its fourth positive day in a row, its longest winning streak since early november when it rallied 11 sessions straight the nasdaq just over 2% below its all time high. sector specific, real estate, tech, health care, all trading in record high territory, big years too. outside of stock, treasuries, had a tough time getting above 1.5% for the ten year, and same story for today, at 1.47%. let's look at oil. of course, just days away from capping off its best year since 2009 and we're trading in the green at $76 for wti crude

ice brent at 79. crypto currencies have been volatile in recent week. bitcoin back below the $50,000 mark mostly green overnight in asia all trading in positive territory. europe just getting started, markets in the uk closed for boxing day and it's green across the screen about .8% for italy as the country reports upwards of 200,000 new covid cases, the cdc late yesterday making a major adjustment in the amount of time a person infected with the virus must quarantine, silvana is here with the details. good morning. >> good morning. that's right the cdc now says those who tested positive are symptomatic or no longer showing symptoms can shorten their isolation

period from ten to five days that comes as most coronavirus transmissions happen one to three days prior to symptoms another blow to air travel after canceling more than 1,500 flights, into, out of or within the u.s. sunday and another 1,400 yesterday, airlines have already cancelled more than 600 flights this morning with that number rising by the hour. with case counts high in the northeast, apple is closing 11 retail stores in new york city for an undetermined amount of time the move which impacts stores in manhattan, brooklyn, the bronx and staten island does not amount to a total shutdown, however, as customers can still visit them to pick up online orders >> staffing shortage is real thank you for joining us >> you got it. back to the markets. the santa claus rally getting off to a great start the s&p 500 rising about 1.4% yesterday, that is the best

first day of the santa claus rally since 2000 according to the stock trader's almanac, it's the third time in 40 years the s&p gained 1% to kick off this period let's talk about the markets with malcolm altridge. good morning to you. >> good morning. the market's performance in recent days would suggest investors are less concerned about ridsing covid cases tell us why, why is the market looking past these challenges? >> i think it have more to do with what you just ran through which is the santa claus rally the santa claus rally we could expect it to be a little more on steroids than it normally would be, because we'd be spending that money to fly and travel and visit relatives and those things but for the folks that said i'm going to sit this out and let

omicron have it, so to speak, you feel guilt not being there in person so it allows you to have more to spend in those retailers than you would have spent on travel and going to be with folks in person and so, we may be seeing a little of that play out in these numbers over the rest of this week, you know, to close out the year. >> from what i'm hearing from you, malcolm, you expect this to be a positive week for the stock market as we saw yesterday and futures indicating a higher open this morning is that the case, specific trades, stocks you want to buy that you want to get into to capture those gains? >> i don't know necessarily that any one stock is going to do it. but i expect the retail sector to do really well, especially those who have a solid, online -- an online fulfillment platform, so obviously an amazon but another one to keep an eye on is maybe a best buy, which doesn't necessarily get the respect it deserves trading at just 12 times forward earnings

at this point. but best buy has done a lot in the last couple of years to address the covid situation and reformatting some of the stores to help with curb side pickup and those things we know that best buy is a great consumers electronics play to allow people to pick up drones, gaming cameras and everything else for the little ones in their life so i think that's probably a really good way to play that space, to take advantage of this santa claus rally. >> although best buy has underperformed the markets this year an article that stood out to me looks at the amount of record cash and capital major corporations have raised this year via debt, stock, loans, about $12 trillion, do you think this type of market dynamic changes in 2022 as the fed eyes three interest rate hikes? >> i do and i know for a fact that cfos are pretty pragmatic people so if we see cfos say we better

get while the getting is good and raise as much cash as we possibly can as quickly as we can, because we don't know how long this party is going to last, that should be a signal to the general buying public, retail trader, that these corporations don't necessarily expect the fed to be their friend the same way it has for the last couple of years at least. where it's very cheap to borrow, sti still even right now because we haven't had any raises yet, even though they've been announced and telegraphed. that's a clear canary in the coal mine situation if i'm a retailer trader looking into 2022. >> notes i have here say you're interested in one name, go daddy. >> we were interested in it before the recent activist interest in buying up shares in the last week or so, simply because the trend that we're seeing to self-employment for millions of americans over the

last couple of years, folks leaving their jobs and striking out on their own, go daddy is actually the number one dominant name brand player in the domain registration place as the newly minted small mom and pop type of businesses look for web hosting services and everything they'll need, as they continue to grow so will go daddy's market share of these newly created companies that are needing a place to host their site and show off what they have. so we expect that to be a really great play for 2022. >> we're looking at go daddy shares up about 24% in the last four weeks a stock we will keep an eye on great to see you this morning. have a great day. >> thanks. when we come back on "worldwide exchange," much more on the updated isolation guidance from the cdc, including pushback from some health care workers. we speak with one doctor on the front line plus let's get meta, the google of china making a play

into territory already explored by the likes of nike and later a cnbc exclusive with christopher ailman, he runs the world's largest educator only pension fund and is worried about much more than omicron a very busy hour still ahead when we return to be on autopilot. and to be prepared if anything changes. with ibm, you can do both. your business can bring data together across your clouds, from suppliers to shippers, to the factory floor. so whatever comes your way, the wheels keep moving. seamlessly modernizing your operations, that's why so many businesses work with ibm.

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suggesting a higher open as well, up 90 points after a record day on wall street. nasdaq 100 gainers here in premarket action, led by nvidia up 1.5%, marvel, advanced micro and tesla at $1,100 a share. to the metaverse in 2021, that became the hot word for companies from facebook, nike, and ferrari. and b aidu said it will wade into the act joining us now is tech futurist kathy hackle, ceo and chief metaverse officer at the futures intelligence group a pleasure to have you on this morning. >> happy to be here. >> it was a month ago when facebook rebranded the company to meta and it's hard to understate the powerful effect that had on this industry. i think it pushed more people to really take a serious look at this market.

since then, major developments from your perspective, and what are your thoughts about a big chinese tech company also getting in on the action >> what we've seen after the rebranding is millions more people introduced to the term metaverse a lot faster than we envisioned that's been from an awareness perspective, more people are asking questions what is the metaverse or if you're a brand, they ask how can i be involved in the metaverse so you see nike, forever 21, tommy hillfiger jumping in and with baidu launching that virtual world during their developer's conference, that is a big signal that the metaverse isn't necessarily a fad or hype, that large companies are embracing the term and embracing what the future of the internet could look like. meta had the most popular app over christmas, that is the

occulus app, suggesting a lot bought the app, what is your thought about more americans using it at a time when the metaverse -- there's a lot of investment but the applications, the things you can do in the metaverse is limited >> i've been working in metaverse related companies for the past eight years, the type of thing we dreamed of happened this last christmas. a lot of people got their occulus put it on, played with it i do a lot of vr and spend 45 minutes max. it's not something you wear all day. what i tell most of the clients i work with is, vr is an entry point to the metaverse it's not the only technology, it's only a way in, it's not the only way in. >> it's not, yet i'm curious what you would say differentiates occulus from the other virtual reality hardware

we've seen hit the market in the past couple of years, whether it's google glass, snapchat's goggles. those didn't takeoff so can occulus have a different trajectory >> it's lighter than the other vr headsets out there. you're starting to get a lot better content so i know a lot of people for the new year is going to start for working out. a lot of people might have gotten it for gaming but also working out. the difference is this is virtual reality, it cuts off the real world and some other devices are augmented reality. so a device you can see through, like glasses, is going to be harder that's why i'm excited to see what happens in 2022 with, for example, example coming to market with an augmented reality glasses. >> so you talked about some of the opportunities, what's the

biggest risk facing the metaverse industry, whether it's pricing, competition, perhaps the eventual regulation this industry will have to face >> i think it's a lot of uncertainty. we're still facing a lot of uncertainty, no one really knows where things are heading i talk about the fact we're on a high speed train destination metaverse but we don't know the stops or where it's going. there could be regulation on the way. i do imagine capitol hill once some of the tech ceos get interviewed in the next year there will be questions about the metaverse. i think it's something that a lot of lawmakers understand they need to know what it looks like. but definitely regulation is uncertain. >> cathy thanks for lending your expertise. still on deck, energy is tos kicking off the best year since

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let's get a check on this morning's other headlines. phillip mena in new york with the latest

good morning, phillip. >> hi, good morning. we start with breaking news five people are dead, including a suspect in what colorado officials are calling a killing e spree. it all started in denver three people were shot and killed across multiple locations. denver police say the suspect disabled one of their cars before driving into nearby lakewood and causing more chaos. another victim was killed in lakewood a police officer was shot and needed surgery the suspect also died but it's unclear if he was killed by police a massive investigation is under way. western states are getting walloped by winter weather the sierra mountains getting hit by white out conditions. the area has seen several feet so far in washington state, people are prepping for an unusual cold snap across the u.s., 25 million americans are under winter

weather alerts as the cold makes its way from coast-to-coast. next week the fifth circuit court of appeals will hear the texas abortion case. earlier this month the supreme court refused to block texas law sb-8 but did allow providers to proceed with a legal challenge in federal appeals court oral arguments will be held on january 7th in new orleans the law bans termination of preg pregnancy at around week six before many know they're pregnant it allows private citizens to sue anyone facilitating abortions. since the law took effect, thousands of texans have been denied access to abortion care. how about jumping the tax bracket before the year is out no winners for last night's power ball drawing that means tomorrow night's will balloon to $440 million, the third largest

of the year. back to you. >> phillip mena, thank you still ahead the omicron surge not dissuading one of llwa street's biggest banks for returns to back to office. we'll be right back.

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plus the exclusive with christopher ailman, his take on esg, global equities and top risks for stocks ahead. and later backlash against the cdc's guidance when it comes to quarantine and mask wearing it's tuesday, december 28th, 2021 you're watching "worldwide exchange" on cnbc. welcome back i'm seema mody in for brian sullivan. futures halfway through the 5:00 a.m. hour here in new york dow jones up 88 points, nasdaq higher by 84 suggesting that this market rally will continue. investors betting big on the santa claus rally. we're already off to a good start with the s&p jumping 1.4% yesterday, its best day one of

the santa claus rally since 2000 when the s&p gained 5.7% during that period. the s&p is setting the 69th record closing of the year led by shares of apple, the stock rising closer to the $3 trillion valuation watch. outside of stocks we continue to watch -- well outside of broader markets we're watching airlines, higher mostly despite cancellations around the counted. airlines have cancelled more than 660 flights today alone this after they were forced to cancel nearly 3,000 flights since the holiday. back to the interviews you can't miss here on "worldwide exchange," brian sullivan caught up with someone who was

outspoken with investing in 2021, a theme he's likely to prioritize in the year ahead >> we are pleased to be wrapping up the year with one of our favorite and most important guests and that is christopher ailman, chief investment officer of calstrs we have appreciated your wisdom and insight on investing and everything else. thanks for joining us on "worldwide exchange. >> it's always a pleasure. i really appreciate it, thank you. >> thank you niceties done. loet's get to it you manage $320 billion just under 50% is ektties do you have a macro view for what we might expect in 2022 and are you -- i guess you can't foresee any surprises thus they wouldn't be a surprise but are there things that you are worried about next year? >> yes a million things i'm worried about. i do actually foresee some surprises. everybody is talking about omicron right now. but there's another virus out

there, but a digital virus log 4 j, i believe is its technical name hopefully this is just something that will come and go in the internet world but it's starting to pop up all over the place as a serious malware problem. because we've forgotten about the internet we rely on it totally yet it is susceptible, the virus is too we'll see. i worry, it's tough to forecast 2022, except because you have the omicron virus, except you have the central banks pushing money out. even though our fed is backing off the gas pedal, they still are pumping the money and they're still very accommodating. so we're constructive on equities around the world but you're going to get more volatility for sure. >> it's interesting because scott miner, he also thinks cyber security may be the greatest threat to the markets, not omicron, not the next variant, not whatever it is, so you guys in had california

certainly tech focused on that let's hope that does not become a thing. so you're pretty optimistic on equities, that's what most of our audience trades. i notice you have sold some stock in apple and microsoft is that because you have to make adjustments to their size weighting in your portfolio or is it that you don't like them as much as you used to >> your first answer, brian. you know we're very indexed. so we tend to, as a big, giant fund we tend to be passive and actually hold an entire market for a country as a single block. and then rebalance and apple and microsoft were, you know, part of the tech, big winners so as you rebalance when you get to year end and readjust that index, you become, thankfully, a seller of some of those huge gains and rebalance in the mid caps and small caps but we basically hold the usa passively, non-u.s. more active

but there we're going to hold the whole world in market cap order. >> adding snowflake is that single stock specific or cloud playover all >> no. single stock specific. we're too big to get down into individual trades. while cnbc loves traders and trading, we're investors so we're going to hold for a five year period or even a ten and 20-year period so those adjustments are around the fin of that. one of my predictions rolling out this week is that japan is likely to see an equity boom i think there's a lot in favorite of the japanese equity market historically. what parts of the world do you find most interesting right now? >> when you and i talked a year ago i probably said the emerging markets because they were cheap. and you know what, they're still cheap. i think the roast est of the woi

going to provide opportunities non-u.s. stocks trailed because of tech and the federal reserve. you could be right about japan, they've been challenged to get their economy to grow for decades. this might be their year i'm not going to pick individual regions of the country -- the world, pardon me, because it is so tough they're all so central bank dependent yet intertwined how things go. and japan could get caught up in the u.s.-china give and take back and forth i think the real mega trend, beyond the viruses is going to be climate change. and that's where the world is going to be really challenged. >> you know what's interesting about climate change as well as the markets that it is creating, specifically i've been doing a lot of trying to understand and dig into the carbon market,

pricing of carbon, carbon credits, you've been investing in that market tell us why and how the best way r for you to invest in a market which is still difficult to understand for a certain beloved financial news anchor that you might be speaking with right now. >> i might be. you know, they are difficult for people to understand and follow. but i think they're absolutely critical to help us solve climate change that's a bit controversial to those who are absolute zelalouts on climb change. if you don't want to destroy certain countries or industries, you need a smooth transition, so a carbon market. you need someone burning carbon and can buy credits to offset somebody else who is getting rid

of carbon. that's like the carbon tax, not a big fan of regulations but you need the incentives to push the system forward i said it before, you pay a fee to pay of your waste water, your garbage waste. we need to pay a fee of the gas waste we create. there's a price to it, and that's the carbon market setting that price to what it costs to burn and use carbon to generate electricity, power plants and all kinds of different systems >> managing the goals and the transition in a rational sense i think europe is learning the hard way, maybe not thinking through some of these things we appreciate your hard thinking you have a big job, 2022 constructive on equities overall, chris we appreciate your views as always, have a happy new year, here's to a great 2022 for you and employees and the pension holders.

>> as i said last year, let's hope in the future next year we're doing this in person >> we will chris, thank you very much be well. our thanks to brian sullivan and christopher ailman be sure to catch citi's tomorrow right here on worldwide exchange let's get to the top stories back to silvana. what's up? >> goldman sachs is standing by its return to office timeline despite the nationwide surge in new cases and to aid in the return, starting in january all bank employees will be tested twice a week for covid-19 and starting in february it is requiring that all employees and visitors to its u.s. offices receive covid-19 booster shots over the last 7 days the average number of cases in the u.s. have surged 55% to over 205,000 new infections per day, that's according to "reuters. watching shares of didi after it

hit record lows yesterday. allowing some early investors and insiders to sell or exit their stakes in the company, likely at a loss the stock is 62% below its june 29th i.p.o. price. and riot games has agreed to pay $100 million to settle a 2018 gender discrimination lawsuit with california regulators and more than 2,000 current and former female employees. under the agreement, riot must also set aside $18 million over the next three years to fund diversity, equity and inclusion programs seema. >> thanks. turning to the coronavirus pandemic the cdc now says those who tested positive and are asymptomatic can shorten their isolation period from 10 days to five days with five days of wearing masks around others. a person who is a close contact,

received a booster shot, will not have to quarantine at all. people who have received two shots fall into the same camp now as though who are not vaccinated and have to quarantine for five days after exposure it comes after the cdc issued similar recommendations for health care workers that shortened guidelines for quarantine periods to five days if they are asymptomatic this as case counts hit records in states across the country. new york seeing hospitalizations cross 5,500 for the first time since february and hospitalization rates for children are up. from the beginning of the month. joining us to discuss is dr. bruce lee from the city university of new york school of public health. dr. lee we appreciate you joining us the cdc's new guidance, the shortened isolation period is drawing criticism. curious where you stand on the

cdc's guidance, will it help or hurt our fight against covid >> thanks for having me. the concern is while some people may not be infectious beyond five days there's uncertainty. there's studies that have shown that some people are infectious beyond that, ten days, and studies of people being infectious beyond that the concern is this may be a bit short sided and allowing people to return to work and mix while they may be infectious still is a concern. plus having people wear face masks for five days afterwards there's questions will they wear it properly, really prevent themselves from spreading the virus. >> the hope is the new guidance

will aleave yacht staffing shor shortages. but do you think this leads to higher cases will this backfire and lead to moriza more hospitalizations? >> that's the concern. people may be spreading the -- transmitting the virus at work and also it's -- the intent is to alleviate staffing shortages in many cases with health care personnel but health care personnel are also exhausted right now and tired. if you're trying to send people back too quickly, that certainly may backfire. >> what's your read on why more children are -- who are testing positive for covid are getting hospit hospitalized, is it because they're unvaccinated or something else >> that's one of the issues, when you look at the percentage of people who have been vaccinated, children between 5 years and 11 years are lagging because naturally the authorization came later and -- than for adults.

plus there's still a significant vaccine hesitancy among certain parents. so we don't have children covered as much. plus this virus seems to be more transmissible and more contagious so it is spreading quicker and faster than previous variants. and we know that children, in many cases, especially when they go to school, can be super spreaders because they contact a lot of different people, they interact with each other, and they probably aren't as good at social distancing and maintain precautions. >> biggest piece of advice for those who are worried about this new guidance and trying to figure out how to conduct their daily lives? >> well, the guidance is simply guidance it's not strictly enforceable in every location and for every employer so i would suggest being more conservative, because you have to keep in mind that it only takes one or two infectious cases to really cause an outbreak so if you're an employer, you

want to be careful you have to look at the longer run, the bigger picture if you suffer an outbreak that can set things back rather than move things forward so i would be more conservative about isolation and quarantine guidelines again, these are guidances they're not strictly enforceable, so you want to be careful about your own situation. >> you raise a great point watching how the companies respond to the guidance and the cdc will be very interesting dr. bruce lee, thanks for joining us today. >> thanks for having me. coming up we look at the closer look at the top forming s&p sector of 2021 and see which stocks can keep the rally going in 2021. (swords clashing) -had enough? -no... arthritis. here. aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.

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it has been a banner year for nearly every corner of the market and none more so than the energy sector. it's the top performing sector in the s&p, up nearly, get this, 50% mirroring the rise in oil prices with just four days to go in the year. the energy sector is ready for the best year on record since its inception in 1989. let's talk to janine way, u.s. oil and gas exploration from barclay's. >> energy was not expected to be

the top performing sector when we started this year, why do you think it's rallied so much and can it continue. >> thank you for having barclay's on we do think there's healthy upside from here with the stocks it comes back to the fact we're tra transitioning to phase two of energy's show me story that means we're establishing attractive cash payout yields to investors. that means that investors can start capitalizing future dividends, buybacks into valuations to cause the stocks go higher. these payouts will lead to solid sponsorship in the sector which we think is lacking right now in the stocks in terms of how much it can go, if you look on a valuation perspective, our stocks, they're discounting still 18 to 21% disconnect from where the commodity is right now so we think there's a fair amount of

upside here. >> oil went from $45 to 76 for wti crude, you expect prices to go up more and every part of the energy trade worked this year, the drillers, refiners, producers, which part of the energy market do you like best going into 2022 >> we cover the upstream producers and again we think there's pretty good upside from from there it goes back to the show me story for energy phase one is complete, solid, free cash flow and having good cash return frameworks that's table stakes for large caps now, which is attractive for investors we think going forward the payout yields will matter more, that makes sense, now given all the free cash flow in the sector for upstream, investors are being paid handsomely to sit on the stocks. >> it looks like your top stock is hess, is that right >> we have a lot of names we

light overweight in terms of payout, overweight in pioneer, marathon and devin. >> back to other macro headwinds, shifting the narrative around energy, opec we saw one production cut, are we expecting more in 2022 >> we'll have to see our oil strategist saying he's positive on the oil market in 2022, that would hinge on opec plus maintaining discipline and showing good behavior, which we think continues. >> supply chain didn't stop the rally, if anything it pushed higher because it brought up questions around the demand equ equation do you see shortages becoming an issue in 2022, has the supply chain congestion eased in weeks as many retailers are saying it has? >> we vhaven't seen the supply chain issues show up in upstream what we think will be a meaningful headwind in 2022 is inflation.

arguably that could be tied to supply chain but on inflation we think investors are holding their breath on that it's rampant in every sector you look at in the s&p most investors think inflation in upstream will exceed the 15 to 20% companies have been talking about on earnings calls. however inflation concerns may be real, the sector companies are committed to capital discipline because they're committed to that, we don't think that the companies are going to chase growth at the expense of returns and that should still be a positive feedback loop for the sector. >> interesting in oil and wti and brent both trading higher by a percent right now. thank you for joining us >> thanks. as we head to break, check out shares of apple as the company is forced to shutdown 11 stores across new york city due to surging covid cases no reopening date announced but they will be opened for online

order pickups. apple also closing in on a $3 trillion price valuation, the price to watch $183.36 currently trading at $18.01. if you missed "worldwide exchange," check us out on apple, spotify or other podcast apps and don't miss my conversation stn relen fogele at 10:00 a.m. eaerhe on cnbc "worldwide exchange" is back after this

i lost 26 pounds and i feel incredible. with the new personalpoints program, i answer questions about my goals and the foods i love. i like that the ww personalpoints plan is built just for me. start the new year with three months free. join today at ww.com. hurry, offer ends january 3rd. welcome back from the infrastructure bill to rising inflation, it's been a choppy year for the material sector for a look at 2021's winners and losers, christina is joining us with this month's sector nomics. >> like you said with be the material sector has been a laggard on a year-to-date basis with an etf tracking, xlb up

just over 20% in 2021 while you can see the broader s&p is up more than 25% as we head into the final sessions of the year so you have a mix of names that have dragged the sector lower including many of the paper and packaging names like west rock, and packaging corporation of america. seeing underperformance in glass. and chemistry giant fmc. for investors potentially looking for an opportunity in materials, all five of these names are trading at a discount to their mean. but from a stock performance perspective, there are outperformers in the sector this year the prices for metals like copper and aluminum soar we saw metal and mining names, freeport posting strong games and fertilizer players, like cf industries and mosaic among the

leaders. those companies saw the prices of raw material jump as well then you have a big player in the lithium batteries needed for electric vehicle revolution, that has had a very strong year, up more than 50% and you have inflation and raw material costs that are a big part of the sector in 2021 and, of course, we're talking about it across the board. but we will, and i promise in about 40 minutes we'll take a deeper dive into more names and that's coming up on "squawk box" back to you. >> looking forward to it let's bring in someone on the buying end of the cyclical names, john. it's great to have you on. there's always this play defensive growth versus cyclicals. one would say if you're bullish on the market, on the economy continue to do well, even an environment where rates are going up where would you put your money to work within those three areas? >> we're going to stick with

cyclicals here, cyclicals over defensive. so we want to overweight the cyclicals. we also want to own information technology favorite sectors continue to be information technology, consumer discretionary, financials and industrials. tech financials and the -- the consumer discretionary happen to be in the top five this year with the top two sectors, of course, energy and real estate, which are relatively small sectors with a better economy, we want to be sure to own technology, which is deeply embedded in the lives of both companies, as well as in the lives of the consumer. and we're going to want to own consumer discretionary because you don't want to bet against the american consumer. >> let's size up the opportunity within technology, because you have the s&p 500 technology sector back above 3,000 we're on $3 trillion watch for apple as it trades around the $181 mark

the nasdaq is less than 2% away from hitting a record high when at what point does valuation become a concern for you? >> we think within the technology arena, what we want to do is go with the big companies, the core companies, the ones that do -- that are involved in our daily lives, both in business as well as consumers. we're looking for the best of the lot for conservative in investors. those that pay dividend and have good, strong cash flow and an opportunity through their innovation to keep moving forward and ahead. we don't think technology is anywhere near hitting a plateau as it did during the tech bubble years ago, which we remember quite well having been in the business for over 38 years, can't believe it. >> there are different, overlapping conversations why the market continues to

outperform, defy odds and work through inflation and the supply chain shortages. do you think inflation becomes something you will pay more attention to in 2022 >> we most certainly think so. we're already paying plenty of attention to it, because it has been much worse and it has always been stickier than we had expected we think some of that is due to the supply chain disruption, of course, the fact that we've had sort of a jump forward, then a couple of steps backwards in terms of some reopenings within the economy. overstimulation we think from the congressional side of the -- of the aisle, so to speak. but we do think the fed is doing the right job and the fed has been extraordinarily sensitive to both growth as well as lack of growth ever since the financial crisis we call it the legacy, and we

think jay powell believes in that >> it's so far worked for the market john we appreciate you joining us and lending your expertise on this market with a couple of days left in 2021. we'll take a quick look at futures pointing to a higher open thank you for joining me here on "worldwide exchae. quk x"s xtng small businesses like yours make gift-giving possible. now, comcast business has an exclusive gift for you.

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good morning maybe christmas wishes coming true, santa claus rally is off to its best start in 20 years. i'm going to show you what's moving right now the cdc cutting the isolation restriction for those infected with covid from 10 days

to five. we'll tell you what's behind the new guidance, and some major retail stores shutting down for in-store shopping in new york city with no reopening day in sight. it's tuesday, december 28th, 2021, and "squawk box" begins right now. good morning, that's frightening, just me welcome to "squawk box" here on cnbc i'm not kayla tausche, but i will be soon i'll be with joe kernen. becky and andrew are off today looking at u.s. equity futures to start we'll have kayla when we get things squared away. stocks off to a strong week. you can see adding to some of the gains we saw