mike santoli, the company is still seeing big losses.oftware sales are declining a lot to prove with the turn around but they have a new management team in place from ryan cohen the founder of chewy. what do you do with a name like this >> first i think there's so many unique circumstances surrounding the company and made it to become the phenomenon. we know about how crowded it was as a short so many retailers were priced to extinction it wasn't just this one but this one is as a social phenomenon unique and i think that people have tried to replicate it. remember the silver squeeze movement people thought it was easy to squeeze the shorts they get by and no debt and will survive but the 4,000 stores still i think. there's not much way in the progress and people that rushed in and paid $400 a share at this thing will they be bored or let it wallow with other retailers >> probably most of the searches in the first quarter of the year made it into the top five. gamestop up an astounding amount year to date more of that countdown to come i

. >> let's focus on the big story just mike santoli is tracking the market action. josh lipton is tracking chinese tech and seema mody with guidance on cruises. mike, start us off with the broader markets. nice steady rise. >> yeah. kind of a gentle lift. same percentage gain on the s&p 500 as yesterday .7%. led by some of the relative laggards and a mean reversion playin the large caps and smal caps today the former facebook as well as amazon not performing well as the growth names at the top of the s&p 500 and chinese tech, spacs, recent ipos up a lot. seems like the liquidations perhaps finally run the course they want to take a look at the divergences in stocks in the same industry that have di verged this year look at this a 50 percentage point spread citi is poor performer probably due to business and geographic mix but when you get a new tax year and performance year for professional traders starting soon, maybe there's convergence that might be due. another one, amd versus intel. this is about intel really not doing anything in a strong year for semis. amd wi

. >> mike santoli is tracking the market action and sara has more on the amazon fine mike, let's start with what you are focusing on. >> the market regrouping after going up 3.5% in 3 days to start the week powerful rebound the low of last friday can probably be considered the low for a while but what's the head room here? that remains a question. so again nothing surprising about taking a pause but just a one point above 4701 not one of the five closes at high as 4705 starting to look as a barrier until proven otherwise for the market this was another kind of pretty powerful pullback february into march and then make a new high roll over, test. never did go back to that oirnl pullback low it is the plus 25% year to date level. s if worth noting. maybe a mental accounting thing for the markets. s&p 500 is outperformingi everything in the market you did get a real strong bounce in the rest of the market as the s&p did but it's sort of rolling. that's broken growth stocks and small caps in terms of nasdaq it is concentrated again nasdaq 100 which itself is top heavy with the top five hol

. >>> let's pivot now to the broader markets as the dow looks to extend its winning streak mike santoli'sracking all the action for us. mike, what's the latest? >> yeah, wolf. market continues to kind of hold steady here at the highs lots of mixed action under the surface. some of the big winners in the nasdaq like nvidia and and if you look at the s&p 500 year-to-date and connect all of the highs since about march, it creates this kind of nice straight-line angle that would basically project up to just a little over 4,800 on the s&p, in other words, we're very much in the bumping toward the upper end of that trend channel there. again, not too super overbought, but it sort of shows you have reasserted that trend. whether the market is inclusive enough, how does breath look is it just a few stocks driving things it's kind of a yes and no answer to that. if you look at how the top 50 stocks in the market, the largest 50 have clearly outperformed, they'd contradicted much more to the total upside than the rest of the market but the russell 2000 as a whole has done just fine it's more or les

mike santoli tracking the action and josh lipton with the rally. >> mike, start us off. led by technology. >> it's very inclusive with a rally it is all hard for the big technology stocks not to participate in there if you take a look we are back on the trend somewhat. raced right back to the levels of november 5th. strong jobs report and riding the streaks and seemed like time to cool off. it cooled off with this challenge we have been in for a while. that's arbitrary and kept to it as we have gone through the little rebound off 5% pullback a couple things didn't happen. we have not gotten incremental worrisome news ant the severity of the new covid strain. we have not seen the forced liquidations that we saw late last week continuing into this week and so oversold that the absence was enough for the springback all things together, credit markets improving. things are place and all we have done is a round trip in about four weeks yes it is a tech driven rally today but i'm interested in the global recovery trade. home builders with help on the rate side and demand for h

mike santoli, up 50% this year i mean who are you talking to?ng homebuilders are going to get weak any time soon this is unbelievable >> yeah, it is i mean it is certainly technically the charts look like they're pretty encouraging, so that does tell you there's a lot of sponsorship for this general theme in the markets even on the retail side, if you look at home depot and lowe's recently, they've been the strongest retail stocks in the market, maybe aside from costco. so obviously it is something that's not an unrecognized, you know, bullish case out there i do think you have to ask whether the supply/demand story longer term is a pretty good debate going on actually as to whether there is a genuine enduring shortage of homes out there. it is kind of like they're not in the right places. i think you have to give the benefit of the doubt to the trend, but i'm alert to the right, look, they look cheap but cyclical groups like this look cheap on earnings when things are basically as good as they're going to get so i would say, you know, you have

. >> first let's focus on the big stories with mike santoli and a closer look at the volatile tech sector mike, the broader market's up 1.3%. >> respectable we responded to what's building up as an oversold market the average stock down more than the indexes. a reason it seemed that we didn't get a forceful buys of the dip last week is not knowing to deal with two week's worth of unknowns and omicron and i think there's some stress point in the market that we weren't sure of a forced liquidation to come this morning said maybe not. at least for the moment so we bounce it is a process. it is not a moment i do think it's important we held around the september highs and the 50-day highs and where the market should have bounced we have to see if there's a mode of is eselling rallies. look at the s&p. i like to look at the vanguard extended market index. just look at this massive sell-off right there really a dump of not just small cap stocks but growth stocks not in the s&p high up in the index is square, uber, snowflake, zoom. you see a lot of the froth purged from the market it is maybe not

>> second go round in a year let's focus on the big stories we're watching today mike santoli is trackingll of the market action. meg tirrell has more details on pfizer's news. mike, start us off what are you focusing on today >> we're holding the gains i think that's your main takeaway from the overall index action today s&p 500 kind of up to 1% of the all-time high. november 5th was when we got to the 4690s, effectively the current level. right before thanksgiving, before that black friday pull-back. and now after this shakeout, it's kind of interesting we're just kind of hovering right there. a lot of the internals are saying it's a net positive day as you mentioned small caps have some traction. also what i would call the victims of the speculative stock purge of last week are starting to get a lift out there. you're seeing a lot of the zooms, the docu-signs, they're kind of getting picked up and running down 50 or 60% from their highs. so, maybe a little bit of that energy flowing through the market apple's gone almost vertical again. it doesn't seem to be necessarily particularly ne

. >> let's focus on the big stories of this hour mike santoli tracking the market action steve liesmanith a look at the jobs report. mike, what happened? things were looking solid this morning. >> the pressure built throughout the day and emerged from this intense liquidation type growth. docusign is sort of right at the epicenter of that and seemed to create more of a purge in broader nasdaq names now it is destabilizing the overall market s&p 500 held together. it was mega cap and emerging tech specific and now a new low for the week 100-day average right where that trend line would go. we sort of chopped around there october and almost there, 4490 or so right now. nothing magic about the line but cracked below former support levels there's some hallmarks of the activity this afternoon that seems like forced selling. vix futures in this upside down mode and seems if there's portfolio stress people getting forced out of this market into pretty distressed positions that's the way that the activity looks at the moment. wanted to take a look at bellwether groups that held up better with

mike santoli has more on that. >> julia, bouncing today, some e-commerce stocks, a lot of beaten down areas, more of a reflux look how the etf that tracks online commerce plays, and clicks, long online commerce, short physical stores have done. this makes it look like e-commerce is in free fall what it is doing is giving back a big chunk of outperformance we had. seems like this is what happens when you had a covid surge in a world doesn't seem intense locking down nobody thinks it is indefinite dynamic. these stocks are getting hurt on net basis, still retaining up side i will say they have travel related stocks in there, not pure shopping at home. one final element, seemed like a play run too many times, rushed for the textbook stay at home plays when things go soft in terms of macro economy that seems like it is not that much of a tight linkage as before. >> i wonder how much of what we're looking at is e-commerce, how much direct to consumer. i look at stitch fix, peloton, they've performed in the past period of time, few weeks or month. looked at shopify, commerce play but more o

. >> bring in mike santoli, talk about the nose bleed trade there's multiple contraction going on now sure. it has been under way for awhile obviously worth noting there was a huge surge in multiples at the time when you had the greatest flow into the ark, into higher prices there's a lot of room between all of this, this was a bubble, it burst and is done forever and these are reasonably valued companies. i think by definition in a portfolio like that, if kathy is i am sure correct, they're projecting ahead they get to faang-like multiples does that mean 30 times forward earnings, does it mean under ten times sales, or if amazon way below that maybe. i think now the portfolio of ark innovation fund is ten times next year's revenues bottom line is their own activity in their concentrated names got valuations to a point that made them a high hurdle rate to make money anytime soon. unless you're thinking of it as a venture portfolio or small handful of mega winners down the road, essentially pay for a lot of bets that don't go well, 300 plus stocks in the portfolio, 75 across the ark fu

. >>> and i'm mike santoli in for wilfred frost.et's look at what's driving the action today consumer confidence data out this morning showed an improvement from november's reading on the covid front, pfizer getting emergency approval for its antiviral pill. and hospitalizations from omicron are comparatively low. tesla leading the s&p 500 today after elon musk said he sold enough stock by now. sara >> for the s&p 500, tesla right up there coming up on the show, mohamed el-erian is here to weigh in on the market >>> first hand funds, kevin landis will join us with the stocks he thinks could outperform in the new year >>> first off, let's focus on the big stories of the hour. mike santoli is watching the stories of the hour. and meg tirrell will talk about the antiviral pill that received authorization this hour. >> today, unlike yesterday, it's a little more of a top-heavy rally, but definitely probably constructive that we got some follow-through after a 1.8% gain yesterday. it continues to look like the market migrating to the upp

mike santoli tracking the market action and leslie joseph with the latest on the headache facing the rline 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 ove

and mike santoli tracking all the market action. let's kick it off with you, meg, and this news this afternoon, which did send stocks lower. >> yeah, sara, so the cdc, the san francisco department of health all confirming the first case of on"options action" has been identified there in san francisco. tested positive on november 29th we just learned from a briefing from san francisco that the patient had been fully vaccinated with the moderna vaccine but had not had a booster dose the person had mild symptoms and san francisco's public health department says that person has recovered. they're doing contact tracing. we heard from the cdc that all contacts that were identified as close contacts have tested negative so, of course, the u.s. becomes just the latest country of more than 20 now around the world who have confirmed cases of the omicron variant. public health officials would not be surprised to see more potentially here in the united states as our surveillance has been ramping up. dr. fauci was asked at the white house press

the head of five below ahead on solid results >> let's focus on the big stories to watch today mike santoli with a closer look at the rally and jon fortt with the apple demand story why mike, the broader markets up. >> not give on the steady rebound rally i would call it. the market looking oversold. we talked about it yesterday maybe signs of short term capitulation things look so bad they look so bad they're good and expect mean reverse higher s&p 500 spent the day between yesterday's low and high so even though it is up a lot, up 1.6%, the range yesterday in the s&p was something like 150 points or so so essentially we are just carving out this area. testing both directions. nobody's sure if it will hold and probably a net positive to lift off the lows and not an end of day selling squall that i think is relating to adjustments. in particular, hardest hit is small cap growth area. basically flat for the year and a dramatic one-month sell-off here compared this is large cap growth small versus large cap growth. s&p 500. this here is the small cap value. so essentially it is still a good v

. >> mike santoli is tracking the action and joining us is peter catchici mike, what is happening onhe surface and beneath today? >> kind of a well earned pause from the low a week ago monday we were just above 4500 on the s&p 500. coming into today up 5.7% in 6 trading sessions a sprint relatively broad i have been pointing out that there's wear and tear under the surface. that was catch up moves by many stocks out there and pushing a 30% total return hard to begrudge the market for taking a pause nvidia is pulling back tofd. profit taking. weighing a little bit at the index level. came into today looking overbought a way to measure that is s&p from the 50-day average. we have gotten to the overbought level matched this year four or five times typically it's been in the vicinity of when the market has flattened out, stalled, taken a breather and pulled back it is tough to fight the upside trend but that's the setup going into the final days of the year. wanted to take a look at the retail brokers it is an incredibly busy year for individual investor activity and look at the incumben

mike santoli joins us now. , nasdaq sort of on the flatline, now turning slightly into negative i should say but what's been happening the last few days is interesting if you want to blame omicron, you might want to see the state home names catch a bid but that hasn't been the case we mentioned zoom at lows we haven't seen since last year >> exactly it doesn't fit too neatly into this idea we're migrating back toward lackdown type economics and privileges those stocks that did well during that period of time i do think a part of the reason for that is this new wrinkle in the economic outlook and the covid outlook came as a lot of those stocks were really almost in liquidation mode. there had been this period of time where people felt as if they were willing to give the benefit of the doubt to these software tech companies addressing huge markets. we know what happened from january really we had these lower waves of enthusiasm rolling through those areas. now it's sort of like keeping it on a shoert leash. a lot

apple is seeing the biggest gain up 3.5%, adding 70 points to the nasdaq 100 mike santoli has more. head trying to figure out if it's a knee-jerk reaction to rates but there seems to be not as clear of a connection as normal. >> no. the rates thing, that's loose tether at this point it's always been a little over played as a direct causal aspect of why tech goes up or down, especially when yields are in the zone they're low, come in, been here before n a range, they're not telling us a whole lot incrementally new. today is a fomo day, fear of missing out and staying in harm's way i think some of the big nasdaq names are familiar ways to grab on i think very importantly similar to what jon was saying, only apple among the biggest drivers of this nasdaq 100 rally are at a new high if you look at nvidia, it's 7% off its high even microsoft still 4% off a high amazon, even more than that. essentially it seems smarter, maybe, to buy nvidia at 330 at this time around as opposed to when it was at an all-time high at 330 you've seen as if you've pulled the slingshot back a little bit. that'

eamon, thank you let's turn now to the market mike santoli taking a look at what is driving these moves higher today mike, everything that got hurt, the cyclicals and tech on top today. >> yeah, it is obviously a little bit of a catch-up instinct there incrementally t seems like people are taking heart in the sense we have a fast-moving surge in omicron it doesn't seem like it's going to create severe restrictions on consumer and business activity at least that's the overlay of a narrative here but also, the market just shuttled back down to the lower end of this range yesterday. and from 11:30 a.m. yesterday, we mentioned here, 24 hours ago, that look, the most of the selling was done by yesterday morning. s&p up 2.5% or almost that since about 11:30 yesterday morning. so you do have this basic rebound effect, and it doesn't look so terrible it didn't go back to those lows of early december. something similar here when you get a little bit of another pullback it doesn't go back as far as the prior one. that's a net positive. it makes the s&p look relatively resi resilient. below the su

doing even if the markets get unsettled by some of the fed talk and of course the variant. >> mike santoli, and all that money coming into stocks have had a big impact on the bond market after a slow start to the morning, yields have taken off in the afternoon from santoli to santelli in chicago. rick >> tyler, it really was one of those mornings where everybody was scratching their head. you saw the equity markets have some power in the u.s. you saw some of the overseas markets with the same strength but yet whether it was bunds, treasuries, tea they weren't going anywhere even the short maturities aren't going anywhere they were getting all the action over the last several yooeks flattening the curve today the curve is steepening. look at the difference between the intraten-year and the intra30 on the right side. how much more aggressive as you go down the curve the selling has gotten the catalyst of course -- well, there are several. the equity markets are a big catalyst look at what's going on overseas two-day bunds. you can see, nowhere near the horse power there even though their equ

mike santoli is watching that. >> an uneven mark that way it's breaking down in terms of some of the big, more defensive names within growth and then the rest of the market. if you kind of look at how it has set up over the last several months a lot of talk on how the top handful of names in the nasdaq have been disproportionately responsible for the overall year to date gain in the broad composite. the separation opening up between the nasdaq 100 and the nasdaq composite, which normally would be a lot closer. you see just back earlier in the year it was actually much more in sync and then the cloud etf. that's really been kind of the epicenter of where a lot of the high growth, high expectation stocks falling apart iwo is just a general small cap growth category. kind of interesting of how cloud, small cap growth have basically gone in sync over the last several months and shows me it is mostly about the modulation of the risk appetites and the kinds of stocks whether we're betting on the future and high cash flow stocks. that has been the question very fair to say after last week's

joanne feeney, mike santoli, thank you. >>> tunk to the omicron variant, according to a report out irelands planning to impose new covid-19 restrictions on the hospitality industry and home visits due to stark advice from health officials this as the u.s. reports the number of vaccinations in the u.n. climbed to the highest single-day total in the last six months our meg tyrrell is here with more >> hey, jon. this has more to do with delta than omicron ireland looking at a dramatic spike in cases which are very most likely driven by delta, as are so many of the spikes we are seeing across europe here in the united states, perhaps the fears of omicron driving people to get vaccinated and boosted in larger numbers. we are seeing a lot more kids getting their first shots in the 5 to 11 age group. today we had six additional cases of omicron confirmed in merced nebraska there was one traveler who returned from nigeria and it seems may have spread the variant to five household members, and only one of those six people was vaccinated. none of them are in the hospital, but the cases across the co

about pfizer news and what it means for the market and stocks and the days ahead we head over to mike santolieal big two-day burst higher, more than 3% in the s&p 500. it seems like that might be the most once the pfizer headline hit keep in mind, two weeks ago, none of us heard of omicron. we assumed three doses of the vaccine were very effective against covid. now we know the same things, it seems, against the new variant and we're back at the exact same levels on the s&p 500. we also have been digesting a kind of hawkish turn at least in rhetoric from the fed if terms of accelerateer their end of their bond buying and all the rest of it net-net, we are flat right at this level is that we've kind of first hit the first week of november we had a great jobs report november 5th that was first higher. it closed. we have been oscillateing even under the surface a. lot of liquidation has happened a. rickier stock just yesterday, you started to see some bounce hard an indication that some of that forced or aggressive year selling, take a look at the bond market, it's a similar story, two-year trea

the dow tracking for the a best week since march s&p and nasdaq for the best week since july i'm mike santoli in for wilfred frost. price index climbing 6.8% year over year, highest since the 1980s. tracking some big moves on earnings and pops for broadcom and oracle and a new report on the firsthandful of omicron cases in america mostly mild with one hospitalization and no dearths. dow up about 100. >> coming up on today's show brian deese to talk about how the white house aims to tame inflation. plus the ceo of fintech giant klarna tells us how inflation concerns drive kcustomers to a buzzy payment option mike is tracking the market action and steve liesman with a look at the cpi number there what are you looking at? >> i would say a steady performance in the face of the cpi number, perhaps less bad than feared and opening pop in the shall have popped at this familiar point we have lost maybe a third of that opening rally starting to get the look of this real like kind of a ceiling right now. it goes back to november 5 at this level and been a lot to go on along the way huge correction ongo

mike santoli, thank you. >>> coming up, the surge in covid cases driving up dep manned for covid testso the ceo of one company currently sold out of its home rapid tests it's a different kind. it's pretty cool as we head to break, an update on flight cancellations. more than 700 flights have been canceled into or out of the united states or within the united states, that's according to flight aware. just horrible when that happens. "squawk box" will be right back. "squawk box" will be right back. >> and thinkorswim trading™ is right there with you. to help you become a smarter investor. with an innovative trading platform full of cu>omizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do. thinkorswim trading™ from td ameritrade. because we take trading as seriously as you do. ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potent

mike santoli is with us looking at what stocks have had an outsized impact. let me guess it is the megacaps, also some divergence in the performance among that group >> absolutely, d two of the big megacaps that really have pulled more than their weight are microsoft and alphabet year-to-date. alphabet up 66, 67%. microsoft up 60% together. adding a $1.6 trillion or so to the overall market cap of the s&p 500. clearly, that's not necessarily something you would have predetp predicted a year ago without those two stocks, we would have been several percentage points lower. it has brought renewed criticisms that the market is too narrow there's only a handful of stocks carrying things. that's not quite true. i think the very huge stocks, when they compound at this level, they're going to have more than their share responsible to them. but if you look at the average stock in the market, it's up plenty you mentioned divergences. you look at microsoft and alphabet compared to amazon on a yore to date basis amazon has done almost nothing however, i don't think there

let's bring in mike santoli to talk about the market cap on the overall index.th, maybe extremely overbought in the short term >> yeah, i think you're looking at the s&p, for example, nas dam 100 really getting up to levels where we've seen it a few times this year. so, it's not something that, you know, kind of cosmically stretched to the upside. but, yeah, the momentum is definitely taking the index to the point where we have to say, we usually get a pause, let it cool off a bit i would say the that average stock is there, that we have talked about so much with the selling going on a lot of the more profitable names, and got washed out. the nasdaq 100 up a couple percent, 2.5% or so this month the equal-weighted versus of the nasdaq basically flat. the 100 outperforms by six percentage points. that's a significant change considering that the 100 is a huge portion of the market cap of the overall index so it does tell you that the giants have, you know, continued to pile on market value. though, interestingly, tesla and nvidia are two of the top-five contributo

up 7% a bit of a reopening feel here as well even though it's different from yesterday's fomo mike santoli said that's how to think about this moment. ark innovation certainly higher. 6.5% just today. you can see a steady build as we move throughout the early afternoon and bitcoin and related assets are seeing gains. bitcoin, ether, those are gaining, not huge. ether's up 2%. the bitcoin still up about in the 4% range let's get to what's driving today's gains and what our guest s says is the next big trade the next big trade, have you look looked at the markets today? >> absolutely. thanks for having me happy holidays >> thank you for joining us. could you offer a quick thought on the two-day action we're putting together here before we dig into the trends we're seeing what do you make of the feel in markets right now? >> very impressive we were very oversold in the marketplace for the last week, two weeks. it was almost like everything had, even if it was good, it was bad. it didn't matter what it was it was bad so now things are turning around and we've got a little better tone to the ma

you know, not mike santoli there.at rivian with us now is bank of america analyst john murphy who initiated $170 price target this morning. john, welcome. >> thanks for having me. >> okay. i don't get it in the sense that, yes, very promising but isn't execution and being able to ramp manufacturing a huge, huge part of the challenge here? plus the marketing, the branding, all of that stuff that a name like tesla has built, why does a name like rivian get nearly $100 billion market cap, i think it would be well over that at your price target, without having to prove that much of anything >> well, i think this company in the early days proved a lot. it's already producing vehicles only about 1,000 this year and little over 40,000 next year they have unbelievably good product. they have unbelievably good strategy that goes beyond sort of the tip of the iceberg that traditionally automakers and some cases tesla are looking at. that is sort of life time revenue target that's almost 2x what most traditional players and tesl

the dow tracking for the a best week since march s&p and nasdaq for the best week since july i'm mike santolihe 1980s. tracking some big moves on earnings and pops for

normalcy >> rob, maybe if you chock it up to omicron relief rally if you want to pin it at that mike santoli is looking at things today and saying it's just a pause, and it's a breather is it enough for now when you've come so far in such a short period of time and now we're at the low end of the year and you've gotten window dressing and you may get more from 2022. the landscape is going to get tricky once you turn the calendar >> yeah, i think it is we're holding cash going to year end. investors looking to put cash to work were encouraging more of a wait and see the fed has told you they're data dependent and to some extent we're data dependent. i think we're hugging our old positioning, though. we're in cyclicals and value with quality tech not changing that i think when we get into next year we'll see that growth supply is to the upside due to the supply of labor and we think incomes will be up quite significantly on that. the question is does that income growth overpower inflation >> i think the consensus that it does and we are uncomfortably in the con sense us in that stance. so we s

not looking for something to blow you out of the water in terms of a huge rally to year end, but mike santoli is with us and seasonality enough how do we look at things now, mike given where we were and now where we are >> i would say seasonality, scott, is a help we've shown the last several weeks, though, that it's not magic and it's not automatic but i think the one thing that does put the market on decent footing, relative to when we first reached these levels on the s&p not only the day before thanksgiving, but also november 5th. i mean, we've really been kind of going sideways since that point. 4,700 has been a little bit of a ceiling over that period one thing that changed is positioning and sentiment. we've got a really good scare. we've got a really good kind of liquidation type event and a lot of strategies and funds. volatility had an outsize move which in itself catalyzed a lot more of a purge than you might otherwise expect on a 5% high to low pull back500 all else being equal, that is probably a net benefit to the market as you have a test, you pass the test and people are a lit

of your thesis is a big departure from a lot of people you're saying underweight tech and our mike santoli put out an article that microsoft and alphabet alone are 20% of the gains in the s&p this year how do you go underweight tech with that? >> well, i think the important thing here is that you're not getting rid of your tech holdings you're not getting rid of your growth holdings that you have at all. you're just balancing out the portfolio. when you look at the overnames and we are participating in the upside of all of those nim,ame,t come around the summer team we decided we needed to trim some of the names back into the cyclical or value names because we do think that going into 2022 even though growth will come down a little bit and even though earnings will not be quite as strong as what we saw this year, we think the people are underestimating what the fundamentals will and be that cyclicals will do well when we talk about the cyclicals, we look at the consumer discretionary names and you have to be choosy and financials are the space that we hold dearest to our heart going into n

so what speaks to the chinese contacts and mike santoli talked about this at the beginning of the showhe chinese names, they are still despite the sell-offs still huge they have huge market caps like alibaba. they've been one of the worst performers, guys and we'll see how they do next year and i will see you back here tomorrow we'll do it again. halftime report starts now >>> all right. thanks so much welcome to "the halftime report." front and center, surging stocks and the s&p on the best record run ever and the dow into the end of the year, as well does it make our committee more bullish about 2022 or more nervous that we're pulling too much forward we'll ask them and we'll debate it joining me for the hour, jason snipe, jenny harrington and jon najarian, co-founder of market

mike, thanks mike santoli let's stay right there that sellout triggered by some comments by the fed chair yesterday. our next guest says that testimony was the disclosure of a colossal blunder from powell who has been critical of powell and the fed for a while now. sven, what did you make of yesterday? >> it was long overdue, carl a lot of pressure from a lot of voices asking the fed to taper in a very inflationary environment. and the fed used to claim to be data dependent and they ignored the data all year long that kept surprising them on the upside in terms of inflation and now caving to the pressure and the big implication for me here is that this was, you know, hidden emission that they'd overdone it. basically what i've been saying for a long time. they put too much liquidity into an inflationary environment and now they're trapped because they are maybe at risk here of having to press the foot on the pedal here would rather take the foot off very quickly and that can cause issues while unemployment is still not at full employment and yet price increases have filtered significantly

mike santoli at the nyse looking at what has changed. >> yeah, john, the s&p 500 this morning basically completed a round trip from two weeks ago, the day before thanksgiving. but in this shakeout and this little scare that we got and also kind of a broader flight from risk that you saw in some of the more aggressive growth areas. here's what has shaken out, actually the nasdaq 100 you see it's down just a little bit. more flat this year but semi conductors have sort of reasserted leadership within the group. this is just over that two-week span and, of course, at the expense of software and more targeted cloud players in the dow side looking at yesterday's action in the semi conductor group we're seeing a lot of kind of aggressive, urgent grab for exposure a lot of hot money rushing in. it's definitely bullish. probably i think a lot of folks say on a longerterm basis it shows you that investors are very urgent and rebuild exposure to that area, even if it gets a little bit ahead of itself in the very short term, guys. >> that's such an interesting chart showing that leadership at an e

so i actually tapped into the wisdom of our friend mike santoli about some of this i really wanted toat the analysts were so positive on the stories here but the stocks were doing the exact opposite he said, look, it is stories like stitch fix that really haven't been compelling that shy people away. and they can invest in names like shopify or square that still sort of play on this e-commerce boom or the boom of small and medium-sized e-commerce players but they don't have to wait for this profitability engine to kick on as the capital expenses just continue to grow. >> i ask mike everything, personally courtney -- >> he knows it all. >> he's got it all courtney, thank you very much. >>> still ahead on "power lunch," will the lights stay on this winter in texas in months after the state's deep freeze, the grid could be tested again is it ready? we will dive into that next. trading isn't just a hobby. it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim trading™ is right there with you. to help you become

. >>> and i'm mike santoli in for wilfred frost. from november's reading on the covid front, pfizer getting

so what speaks to the chinese contacts and mike santoli talked about this at the beginning of the show some of the chinese names, they are still despite the sell-offs still huge they have huge market caps like alibaba. they've been one of the worst performers, guys and we'll see how they do next year and i will see you back here tomorrow we'll do it again. halftime report starts now >>> all right. thanks so much welcome to "the halftime report." front and center, surging stocks and the s&p on the best record run ever and the dow into the end of the year, as well does it make our committee more bullish about 2022 or more nervous that we're pulling too much forward we'll ask them and we'll debate it joining me for the hour, jason snipe, jenny harrington and jon najarian, co-founder of market rebellion.com. let's talk about the streak that we've been on, 70 record closes and the dow going for its seventh up day in a row. jenny harrington, i pose the question to you that i posed at the very top as we intro the show it's hard not to be bullish given the run we're on and does it make you ner

starting the week off with another ugly day in the market >> yeah, sarah i'm mike santoli let's looks weighing on investors. covid-19 cases spike and the fed seems to beintent on tightenin still. staup staples are holding up the

let's bring in mike santoli with much more on the market action and mike, happy holidays >> you as well, frank. in terms of evaluating the character of this bounce and whether it's something that you really want to buy into, i think yesterday went a good distance to saying that the market responded as you might want to see it at those levels there's been a two-month trading range here and we've not sort of challenged the lower end of it and you've had a lot of the negative headlines and the market navigated them at least to this point, a very broad rally yesterday and it was a combination of some of the most beaten down and formerly hot speculative growth stocks that really have gotten swamped over the last several weeks and the cyclicals that seem to respond to an economic recovery theme. one of the biggest determinants of whether the stock did great and led the way this past couple of days was down the most year to date. on some level this was a reflex bounce and maybe that doesn't continue and in general the fact that the overall market has been able to stay within this range and sho

i don't know of another group as volatile mike santoli, that goes to the trade.e rhythmical trader, you put an algo in every time you any them, you start to sell them you buy certain other stocks this has become like a dumb pattern at this point. >> right and it kind of works until it doesn't. there's absolutely very much a headline sensitivity to that group. it really has been mostly a proxy for, you know, the outlook for reopening type activities over the next six to eight weeks. i think longer term it is a tougher road if you are looking at the cruise lines, obviously we know they had to raise a tremendous amount of capital, both equity and debt if you look at coming out of previous crises or crashes like the tech bubble crash or the global financial crash, that group at the epicenter had a huge bounce but wobbled for years afterwards >> i wonders, delano, i wonder is it investing or gambling with the cruise lines because you don't know what is going to happen >> you really don't. it would be more, as mentioned by the panel, making trades as based on the headl

let's kick things off with mike santoli. >> good to see you, kelly.ind of calm markets been flirting all day with the 4,800 level. unclear if that's a stall point for the index. the year-to-date chart looks rather healthy we did keep in kind at 4,700 really get stuck there november into december. not to say these hundred-point intervals necessarily matter that much. but we are basically at the 30% return year-to-date level. a lot of folks saying another percent up from here would kind of get you up to the top end of this rally path that we've been on since about april when we've kind of accelerated higher i did want to take a look within the nasdaq nasdaq 100 versus the equal weighted version of the nasdaq 100. a lot of talk about is the market too narrow. both of them are up, both the market cap weighted and the equal weighted versions. but definitely outperformance among apple, microsoft, broad com, to some degree, really contributing on a year-to-date basis on the s&p, pretty much the average s&p stock has done as well as the index. now, today you'

nasdaq now down nearly 5% in the last month our senior markets commentator mike santoli looking at key parts, tech, ipos and big draw down for cathie woods. >> those are the areas that has been the most aggressive, high stress, surrender of early gains that we saw built up into the early part of this year. that's why i wanted a two-year chart showing the nasdaq 100 and the ark innovation flagship and the ito and amazing amount of convergence and how people got nuts with the secular growth sector back in the early part of this year. now, obviously, this is mostly about loss of price momentum initially, loss of fundamental momentum in expensive stocks that is what you see in docusign and zoom and peloton and then becomes portfolio stress people who are taking big losses in those names also own other stuff. they also own other bigger tech stocks and that's why i do think you have the pressure that is spilling away. even though and can we finally put to bed that when yields go lower tech rallies story because it doesn't always happen we've seen that in the last couple of weeks. i do think

mike santoli joins us.ning to you. >> morning, will yes, pretty much holding to form here, upside drip, lower volumes, really got sold out in this market tore a large degree with the latest 5% pullback, which actually did not conform november was weak because we did get that omicron scare also worth keeping in mind, september was another weak month. that was another thing the almanac would have told you, the seasonal tendencies did hold in that sense i think right now you are seeing a bit of tension release based on the worst fears out of omicron, still a little bit of a defensive leaning of investors right now into this latest phase of the uptrend just take a look at the consumer staples group. utility, healthcare have been big outperformers in september it's hard to separate out the message of this, seeming like people are maybe handicapping the slight patch in economy or returning an economic cycle, separating that theme from the idea that laggard groups in december might have catch-up to do they have ce

mike santoli joins us mnow with more, and we turn around from relative weakness this morning, mike, and the first step you had five sessions in a row where you had at least a 1% move in the s&p 500, up or down last time that happened, late october, early november of 2020 when the market was thrashing around after a correction and ultimately did eventually recover from there the market, i think one of the steps it has to take for the s&p is to make a new high that's higher than the prior day. we haven't done that in a little while. that's just tactics now. i think the jobs number matters a lot, perhaps as it informs the current fear on the fed front. take a look, though, at what's happened to commodity based inflation recently maybe a silver lining of the new growth scare is that if you look at this dbc, the broad commodity index, really has given back most of its gains. we're back to where we were in the earlier part of this year before you got a lot of intense concern about run away inflation. maybe there's help on that front just as the fed decides they have to signal they're more att

i'm carl quintanilla with morgan brennan and mike santoli live at post nine of the new york stock exchange morning off. the blue chips continue to outpace tech with the dow up better than 1% the nasdaq in the red. busy week ahead as we continue to balance headlines from omicron and the fed. >> that's right. busy and uncertain we're 30 minutes into the trading session. here are three movers we are watching this morning. rivian is higher things morning on a slew of initiations the street positive on the stock overall. deutsche bank, webb busch, piper sandler and rbc all calling it a buy. morgan stanley's adam jonas says it's, quote, the one that can challenge tesla. you can see those shares are up almost 1% right now. another ev name, lucid motors plunging after the sec subpoenaed the company for documents related to its spac merger with churchhill capital those shares down about 13.5% right now. finally, check out bitcoin that's trading below $50,000 after falling as much as 17% over the weekend we're going to get into that a lot more a little bit later on in the show, mike. >> all right dp

i'm here with leslie picker er d mike santoli there you go we're down on the dow, down on the s&p, marginally higher on the nats gab our road map this morning starts with the bull market of 2021, the s&p 500 on pace for its third straight year of gains with the energy sector leading the way. >> plus it's been a wild ride for ev names rivian and lucid motors joining the crowded field. >>> and warren buffett refusing senator bernie sanders's request to enter -- intervene at a strike at a berkshire-owned company. >> we do begin with the markets, of course. what a year it's been. s&p for the year, up 27.2%, that is the best year for the s&p broad stocks since 2019. >> remarkable. i don't think a lot of people ants pailed quite this much up side at the index level. just a few observations of kind of the path along the way is, you know, it wasn't's easy as it seemed arguably, not to say you didn't have pullbacks. you had multiple kind of boom/bust, you know, cycles within this market i not visible on the s&p chart it was the first quarter l.a. years, all about ipos, spacs, ark, speculative growth,

1.8% lower joining us now to discuss is morgan stanley wealth management ceo lisa shillette and mike santolido you think is the key driver of this market activity we're seeing today so many headlines over the weekend, the market is digesting all of them. how do you make sense of that? >> look, i think that, you know, we've been calling for a 10 to 15% market correction really back since september, believing that markets, you know, had to really finally make this mid-cycle transition to a regime where maximum accommodation both from monetary authorities and the fed and fiscal authorities if washington was going to take a downshift. we got, you know, step one of that with the fed confirmation last week that they, in fact, were prepared to accelerate tapering and move forward with at least pencilling in through their own forecasts as many as three hikes in 2022. that's the beginning of the tightening of financial conditions then obviously we got this bomb over the weekend, you know, from senator manchin that suddenly he's, you know, going to push away from the table. and reduce the likelihood o

when we need to bring mike santoli in on his day off, that's a sign. mike, we've missed you as always it's great to see you face on that picture and to hear from you. what has been your take from afar this past week? i mean, we've had a pretty volatile -- we got a nice bounce in the middle of it. it seemed like we took the fed's pivot in our stride at least temporarily. >> for sure. i mean, i think there's some value, unintended value in actually unplugging a little bit and looking at what has changed and what hasn't changed over the course of a week or several weeks. in terms of overall market levels, believe it or not, not that much changed. the s&p is where it was at the end of november. it's where we got to six weeks ago. the surface, the market has been punishing anybody who is comfortable in their positions, and so i feel as if there's been a tremendous amount of internal damage the market getting kind of sold out. and incrementally investors almost giving up the idea of just staying in for the sake of the year-end rally notion. i think that's all