michael santoli has a plan >> i'm okay with that. yeah >> always with a plan. i'm in the market looking for a discount all right. that sounded like a song l.a. officials announcing the creation of an urban air mobility partnership as a way to get folks used to seeing drones in the sky it comes after the faa loosened restrictions on flying drones in high population areas and at night. it means home deliveries from the sky, things like food, drugs, packages, toilet paper no longer just a far off fantasy. some big players ready to cash in like amazon, walmart, u.p.s contessa brewer, i believe you're up there in the country here's my problem with the drones by the way, a lot of this is done at my alma mater virginia tech go hokies they're loud dogs bark. this is not a perfect solution it's a leaf blower in the sky. >> i mean, your dog barks at a drone? what does your dog do about the amazon delivery guy coming to your door? it seems to me like a drone -- >> loves it because he brings treat. >> a drone that takes off is a lot -- well, all right you have a very speci

it's time for rapid fire, here with their takes, jon fortt, deirdre bosa and jack santoli.s set to take over intel next month, he's replacing bob swan who has experienced big blows since taking the reins back in 2019 including massive chip delays and the end of a partnership with apple it shows on the tape as well intel down 3% in the past year other chipmakers as you can see, big green arrows they're soaring. nvidia up 119% is this the beginning of the end of intel's pain? >> boy, hard to say, dom that is the question pat gelsinger, here's a guy who almost literally grew up at intel. he was a teenager in rural pennsylvania before he came to intel literally as a teenager, spent 30 years there before leaving, now he's coming back. and a couple years ago i basically suggested that he would be an interesting candidate for the top job at intel. and he said no thanks. responded to me on twitter and said software is the future. i think software is the future in the chip space as well given what's happening in the enterprise and in the cloud. i'm really eager to hear what his game

mike santoli we discussed this one briefly last week.ssentially chopped around flat for most of the second half of last year >> coiled up around the $500 a share mark first hit there last july. i was mentioning it early quer if you go back to when the streaming era began, 2013 for netflix, you have had had multiple sideways periods where it has gone nowhere for a year or year and a half and then goes up of into the next up leg it seems like the stock is in a bunched up range although thea lot of glow has been stolen by disney+ and roku you don't have to own netflix for that purpose. >> netflix always talks directly about competition in their share how woulder letter we will see what they say with it two minutes to go in the seg mike, what do you see in the internals? >> two to one upside to downside it is relatively broadly participation in this rally. it doesn't seem like the average stock is out performing because you have the mega cap tex leading the way. but it seems pretty well supported by breadth in there. if you look at the high

mike santoli, i will come to you first.ade-offn the final 30 minutes of the session, last hour or so, i guess taking the gloss off of what is otherwise a big rebound from yesterday. >> it is still jumpy and uncertain. we talked about a you will the margin calls happening at the retail level that's when it happens, in the final hour and a half or two hours of the day i don't think today told you anything necessarily definitive about where next even aside from a lot of the wild moves that are happening in some of the sort of fad stocks the short squeezes that are chopping people up you did have a market that was losing a little bit of internal momentum, some things were starting to roll a little bit. simply as a matter of routine. up 18% from october 30th to a couple days ago. you had sentiment and positioning get pretty excited on the upside. i don't think it is really a surprise if in fact we are in a little bit more of a choppy zone in the market. >> peter you have been write being the risk of a correction in this market h

game stop, reddit and the short squeeze that took traders on wall street by storm joining us, mike santoli, kate rooney, and list l-- leslie picker mike, start us off with the broader market. >> still unstable footing out there. the s&p 500 bounced off its lows around 1:00 p.m. twice was below 3700 found its footing there. then we have had a modest bounce what it did with the pullback. it got to a 4% decline and took us all the way back to early december levels. it is surprising that you could have swept away that murch of this grinding flael that short amount of time but that's how this usually goes the prospect for a pullback builds and builds and then you get it so far we are challenging the 50 day moving average assistant uptrend intact yes, it is, but it wouldn't be surprised to see things chopping around a little bit more we have portfolios adapting to the idiosin of the contractic source of volatility i want the look at the bond market i think it is refusal. here in white is the high yield bond etf really not a lot of volatility here it has been steady around zero line all week. thi

thank you, sir, mike santoli there. are we starting to see real cracks in the real and what a real it's been let's talk about that, what could be some of the causes, katarina sim nettie joins me now, senior vice president at morgan stanley private wealth manager and doug ramsey is with the huthol group welcome to you both. let me start with you. for some context, we're coming off a two-year stretch in which the nasdaq is up 80% and the s&p i think up 35. so in done the text of -- for months we've been talking about how the fear and greed indexes are at all-time highs and we know what's going on with valuations and look how much zoom is down from the exa. the software names have definitely been telling you that some kind of correction is coming, but what kind of correction do you think this is if it's more than just a one-day reset? >> kelly, thank you for having me on the show and happy new year i'd be really surprised, of course not we've had quite a big rally. a lot of large-cap names, specifically specifically in ten

tom lee joins us welcome, tom first to you, mike santoli, on this record-setting day. many of us are wondering, with questions out there, what is the future of democracy, and the two-party system, and what do the next 13 days look like until inauguration investors aren't asking questions. they are just buying. >> sorry it will take a second. >> investors are playing offense. nothing that has gone on in drk is undermining the process of the transition the market is willing to set aside some of the unsettle issues because it is getting exc acceleration at the same time, i think people are grabbing for risk. yes, the economically sensitive stuff moving, the small caps, the villes the banks, treasury yields going up. the rest of it bitcoin flying, tesla fridaying almost every day, no explanation. asset momentum at this point both those things happening at once, starting to run a little hot again on that front. >> tom, where do you stand on things running too hot in the short-term, the bitcoins of this world and the s&p 500. >> i would be in the camp that i think there is s

mike santoli is tracking the market action. kayla tausche has details on the president's upcoming executive orders on the economy. and better that coops has information on vaccines. mike, let's start with you markets essentially flat. >> churn underneath the surface netting out to not much action on an index wide basis today on a one year basis, look at the angle we came into 2020 on right there, we had a very strong fourth quarter we came in in this very kind of orderly uptrend. it is similar. if you were to extend that out you would have a basically parallel line. the mark has been bumping up against that and hugging it. if you wanted to draw this one here, it is a 3% range that's all we have been in for a while. so far even this pullback are a high we had a couple days ago didn't really change the equation so far you have a lot of rotation happening under the surface. not much damage just yet to a market that still looks overbought out and overloved the global picture very long term wanted to highlight the all country world

santoli has turned on its lights people are queuing in front of the clubs into the pub every hero one of the biggest music events in europe takes place here. if you are interested and you come and trendsetter you definitely have to visit in september for the band festival during 4 days there are plenty of concerts with musicians and bands from all over the world. this. concert hopping in hamburg 600 concert. $100.00 stages in just 4 days much more than the most avid music lover can manage. the 1st rate fast of all took place back in 2006 the annual event has grown to become one of europe's biggest pop festivals. here it's less about big name acts than discovering new ones from around the world. concerts lively we go to the different clubs and see who turns out. we did just in case someone was playing piano it was really client phones were switched off here you can have everything d.j.'s on stage there's something for everyone. i'm going to the mall itself to meet the young british band. i joined them backstage. the i made the james and i'm thinking of. this is this is this is true tha

unrest in washington and how businesses should react first to the big stories we are watching mike santoli is tracking the market action. ylan mui has details on whether the covid relief pack can get through congress. >>> mike, the market is flat. >> muted reaction in the big cap indexes right now. the s&p 500 operated below last friday's high for the fire four days but it has been going sideways we have either russell 2000 case or nasdaq 100 days today is a russell 2000 day. large cap growth, source of funds all the action is happening outside the big cap indexes in the racier stocks, the high concept names, speculative stuff, new stuff that's where all the buying seems to be. we talked about the fiscal stimulus is it baked in is it not? look at discover financial, ally financial, an auto learned, discover credit kad cards and paid etf they happen to be up exactly the same amount over this stretch. above theirpry covid highs these are levered to whether we are going to get $2,000 checks whether there is going to be investment in infrastructure this angle tells you the market has been movi

also something that has gone a long way and consolidating it seems, guys. >> all right, mike santoli, thanks >>> josh, want to get your thoughts >> i think that is a really great chart that michael put up. i know michael is a fan of animal spirits and they were talking about where is all the capital for these mini bubbles coming from? well, the faang stocks which is $6 trillion worth of market cap are flat for six months. so, you have money coming out of stocks that have stopped moving and that's what is fueling probably a lot of the activities and stories like bed, bath & beyond and when you talk about $6 trillion. i know we throw trillion dollar numbers around all the time, but this is a huge, huge pool of capital that could continue to leak out of the market cap stocks as they continue to trade sideways or even down and find the home in some of the 5 to $50 billion companies that seem to be the new leaders in this market i think there is a lot to that story and a trend that could continue for a long time it's not surprising that small caps to lead us out of a recession. happens alm

first the big stories we are watching mike santoli is tracking the action for us. steve liesman has the latest information from fed officials on the state of the economy. and kayla tausche has details on new covid-19 guidelines. mike, let's check in on the mark the s&p bang on flat. >> under the surface, though, strength more stocks up than down equal weight s&ped doing better than the market weighted version. if this is the way the market cools down over a somewhat overheated state it is benign i would say. you had this lift up here. the past four days the intraday high in the s&p has been between 2 3800 and 3820. i want to take a longer look at the s&p 500 to capture two prior post election years. 2015 and 2017. they didn't let you in the you were waiting for the pullback. be careful that you don't exclude the possibilities that we have one of those calm uptrends developing in 2021. you had the same thing in 2017 you had this sort of chop, chop, chop, a little bit of a surge at the end of 2016. then this was little peak at the beginning of 2018. low volatility, u

i'm wilfred frost along with sara eisen, and mike santoli, cnbc senior markets commentator.loss force each of the major amples the last 20 minutes of trade taking us into the red .2% down on the s&p. the russel down a hib more, .6%. in, erls the, and utilities at the bottom tech, communication services and real estate at the top dollar a little bit weaker oil a little bit weaker. gold as well investors awaiting earnings fromst in, starbucks, texas instruments, amd robert nobles joins our conversation mike santoli first to you. this performance, s&p flat essentially. of course we did just recently have record closes underneath, what are things standing to out to you, whether it is the vix or the breadth the breadth has softened we have basically gone sideways about a week in the s&p 500, which is probably not the worst thing in the world considering again a lot of the parts of the margaret that had really led the way in november, december, the cyclicals have been cooling off. so there has been a little bit of a helpful kind of rotation, market managing to stay supportive i th

one as mike santoli was talking about, a 5% increase until that settles back down, that's one to watch. good to see you as well. that does it for "power lunch. "closing bell" starts right now. >> thank you welcome to the "closing bell." i'm wilfred frost along with sara eisen the first trading day of the year turning out to be a wild one. record highs at the open quickly giving way to the significant selloff you can see behind me. the major averages around 1.5% as we look at the final hour of trade. investors closely watching georgia ahead of tomorrow's special elections. the outcome will determine which party holds the majority in the senate and could have a major impact on president-elect biden's agenda the selloff is sending money into safety trades, gold and silver both moving higher, and the virus, of course, remains top of mind. uk prime minister boris johnson set to speak this hour amid talks of stricter lockdown as cases there hit record levels. of course, may the u.s. follow, a question investors have in mind here. sara >> the beard goes into 2021. nice we'll have much more on

starts right now >>> you heard it we have a big hour a wild day of trading to start the week mike santoli has more. mike >> morgan, a bit of erratic action this morning. we had a bit of a quick sell-off, but right now this is a long-term view, which is relatively elevated. we're above 20 times forward earnings that goes back to about 2000, 2001 one of the way the people rationalize these things one of them is bond yields are very low if you looked at p.e. ratios, compared to treasury yields. goldman sachs says we're not even down to the overvalued levels we saw back in the '90s, so maybe this is okay. it doesn't necessarily mean that long-term returns will be all that great just because compared to bond yields, which is versus low, things will be fine the kinds of companies that are big in the s&p 500 are phenomenally dominant and profitable. so maybe these valuations are more sustainable >> yeah, mike, it is interesting. we've had a couple notes out, goldman comes to mind to where we're seeing frost in the market right now. when you talk about valuations, i realize we're going to talk ab

not much of a reaction mike santoli.attempting to brush aside any major concerns of how this is going to impact our economy. >> at this point in market terms relatively distant hypotheticals because we have the tailwinds of pretty much universal expectations you'll get the spring load recovery, once you get through more vaccinations and obviously financial conditions are very easy it is not surprising the market can stay supported from here but as the market goes up the burden of proof probably keeps going up on the bulls to figure out what could continue to take it higher that's when those questions might come in. >> two particularly stand out factors of this of course to make it so unprecedented one is the fact it is the second impeachment but the other is it is coming right at the end of a presidency when a change was due in seven days anyway and that of course does alter how much impact it will have on policy making and leadership and another factor as to why markets have been relatively speaking unmoved. we will con

one hour left of trade mike santoli tracking the market action we have a team of reporters tracking down the corporate blowback from trump from some of the country's biggest companies. mike, we will start with you and the market the comeback we have seen from energy at the top of the list. >> the cyclical sectors, ones tied to the economy are holding the whole market together. t'was there was a little bit of a shakeout this morning, the s&p down almost 1% in the early going. the dip was very much bought the low for each the last four weeks has been intraday on monday i guarantee people know that i am betting people are betting that could be five in a row. this acceleration last week threatened to get thing slightly overheated not so much but you are watching out for something like this, one of these spikes that puts in the end of a rally it is hard to say if we are there now because the s&p, the broader market is absorbing a pullback in some of the high momentum names and some of the solar stocks, among others that so far is holding together. the treasury yields have had no give whatsoev

let's catch oun a few stories on the radar, and it is time for rapid fire to break it down, mike santoli and julia boorstin and mike from cme strategies. and now, upgrading from american eagle, and they say that the new brand is the most compelling growth story in retail. they are raising the stock to outperform the price target of $20 to $33 and declaring that the growth is real. and american eagle has been flying under the radar, and their shares are up 266% from the 52-week low. and mike n this day and age in the context, it is worth noting that it has 16% short interest. >> yes, like a lot of the mall-based chain stores and this structural bets against it thinking that it is a declining business and not only up that much off of the lows and it is outperforming the s&p, and as has abercrombie and it is not looking terribly cheap, and not overvalued if arie can have this line. and it is a comeback story when people least expect it. >> mall-based brand and i thought why are you bringing that up. it is not a good time to talk about the mall-based brands, tim, and yet, we are seeing among

i'm andrew ross sorkin along with becky quick and mike santoli.on this tuesday morning as we get a flood of earnings reports coming in. the dow looks like it would open higher, 64 points higher the s&p 500 up 2 points. the nasdaq though in the red looking to open down about 6 points right about now becky? >> andrew, we've got some breaking news on regeneron i want to get back over to meg tirrell. she has details on that. meg? >> reporter: hey, becky. we know regeneron has this antibody drug. just like lilly, they were testing this antibody in prevention people who live with somebody who's been diagnosed with covid. they are releasing these prevention results right now on their antibody cocktail, combination of two they say in this analysis of 400 people in the trial, they were able to prevent 100% of symptomatic infections prevent everybody from getting the disease in people who live with somebody with covid and we're able to cut down by asymptomatic infection or transmission by half the numbers on the disease part are pretty small eight people in

mike santoli back at hq.et to sue herera for a cnbc news update. >> here's what's happening at this hour. senate minority leader chuck shumer is calling for president trump's immediate removal from office soon we will hear what president-elect biden and house speaker nancy pelosi have to say about the capitol riot biden is scheduled to introduce his justice department team and pelosi will be holding her weekly news conference >>> british prime minister boris johnson said today, president trump was, quote, completely wrong to cast doubt on the election >> unreservedly condemn, encouraging people to behave in the disgraceful way they did in the capitol. all i can say is i'm very pleased the president-elect has now been properly -- duly confirmed in office and that democracy has prevailed. >>> czechoslovakia's prime minister has changed his social media profile from a red hat modeled from trump's maga cap to a photo of him wearing a mask with the czech flag. he's also condemning yesterday's invasion of the capit

santoli has turned on its lights people are queuing in front of the clubs and. every year one of the biggest music events in europe takes place here. if you are interested and you come and trendsetter you definitely have to visit in september for the band festival during 4 days there are plenty of concerts with musicians and bands from all over the world. this. concert hopping in hamburg 600. concert on 100 stages in just 4 days much more than the most avid music lover can manage. the 1st read up on fast of all took place back in 2006 the annual event has grown to become one of europe's biggest pop festivals. here it's less about big name acts than discovering new ones from around the world . cup. concerts likely to go to the different clubs and see who turns out. we did just in case someone was playing piano it was really client does this with style and you can have everything d.j.'s on stage there's something for everyone. i'm going to the mall itself to meet the young british band. i joined them backstage. the i'm a james. and i'm thinking oh. this is this is

santoli has turned on its lights people are queuing in front of the clubs in. every year one of the biggest music events in europe takes place here. if you are interested and you come out and trendsetter you definitely have to visit in september for the band festival during 4 days there are plenty of concerts with musicians and bands from all over the world. this. concert hopping in hamburg 600. concerts on 100 stages in just 4 days much more than the most avid music lover can manage. the 1st read up on 1st of all took place back in 2006 the annual event has grown to become one of europe's biggest pop festivals. here it's less about big name acts than discovering new ones from around the world . cup. concerts lively we go to the different clubs and see who turns out. we were just in hollywood someone was playing piano it was really client does this which start here you can have everything d.j.'s on stage there's something for everyone and. i'm going to the mall itself clap to meet the young british band king not. i joined them backstage. i'm a james and i am th

'd santoli has turned on its lights people are queuing in front of the clubs. every hero one of the biggest music events in europe takes place here. if you are interested and you come out and trendsetter you definitely have to visit in september for the band festival during 4 days there are plenty of concerts with musicians and bands from all over the world. this. concert hopping in hamburg 600 concert. on 100 stages in just 4 days much more than the most avid music lover can manage. the 1st read 1st of all took place back in 2006 the annual event has grown to become one of europe's biggest pop festivals. here it's less about big name acts than discovering new ones from around the world. it comes out slightly if you go to the different clubs and see who turns out. we were just in hollywood someone was playing piano it was really client does this with style here you can have everything d.j.'s on stage there's something for everyone. i'm going to the molex of top to meet the young british band. i joined them backstage. i'm a james. and i'm theater we're ok. this

i'm sara eisen here with wilfred frost and mike santoli, cnbc senior markets expectator. street dow slipped into the red in the last second or so despite intel coming out early, ahead of the bell, with its earnings after a media network seems to have broke ten embargo. the big beat, surged 7%. but the dow did finish lower chevron, wall greens and boeing, the biggest losers s&p 500 did eke out a small gain a record closing high. technology consumer strugs and communication services which typically march together were the three sectors that are higher energy lagged. nasdaq did well, up half a percent. record close tech had a very good day, the faang names, momentum names all working. the russell 2000 index of small cams lagged after running up to record highs of its own. down almost 1% there we are moments away from ibm and csx earnings intel numbers looekd early we will have analysis of all of the numbers coming up. >>> plus we are awaiting a white house briefing from president biden coronavirus ased a vier dr. fauci to give a briefing on the covid-19 strategy. we will joi

mike santoli tracking the market action as always for us. >> kind of a resumption of the trend since october 30 which had been on pause for a couple weeks. one year the s&p 500 shows really steady, basically the same angle we've been operating on for a while here's what we've been talking about. for about ten days to two weeks the s&p was sort of stalled out and consolidating and perhaps today with mostly the help of the very large nasdaq stocks netflix kind of clearing the way for people to rediscover faang and faang related stocks is what is carrying the s&p right now. look at a four year glimpse of the s&p 500. this obviously captures the trump presidency and what is really interesting is not necessarily the overall performance, which was certainly good 15% a year or so, annualized i'm looking at this right here, this acceleration into january of 2018. that was after a year of anticipating the tax cut bill and things like that that doesn't look too different from this angle here this is not -- this doesn't show all percentage gains the same so this is not quite as steep as it woul

santoli has turned on its lights people are queuing in front of the club's end of it every hero one of the biggest music events in europe takes place here. if you are interested and you come and trendsetter you definitely have to visit in september for the band festival during 4 days there are plenty of concerts with musicians and bands from all over the world. this. concert hopping in hamburg 600. concerts on 100 stages in just 4 days small the most avid music lover can manage. the 1st rate festival took place back in 2006 the annual event has grown to become one of europe's biggest pop festivals. here it's less about big name acts than discovering new ones from around the world. concerts lively we go to the different clubs and see who turns out if. we did just that someone was playing piano it was really client phones were switched off and you kind of have everything d.j.'s on stage there's something for everyone. i'm going to the mall itself to meet the young british band. i joined them backstage. the i'm a james and i'm theater. and this is this is this is true and it is 2nd time a

. >> yeah, and michael santoli, how much does it matter to the market as a whole?well, it is not acting as a bell wewether or leading indica, because what is fascinating is that the stock has gone nowhere for seven or eight months, but over the course of the last 7 or 8 years when it was the streaming era, it has had three of the periods where the stock went sideways for more than a year, and then started to ramp up again. so it does tend to consolidate the gain, and the investors sort of revise and reset the expectations, and now it has lost the scarcity value, because you can buy the roku and netflix has yet to prove that it is losing the growth edge just yet. >> all right. well said. moving on, topic two, the chinese luxury goods market apparently benefiting from what some people are calling revenge spending. with the drop in travel, mainland china growing the sales by 48% to more than $50 billion to put them on the market for luxury by the year 2025 and robert frank, i am afraid to ask what exactly is revenge -- revenge of the lockdowns or the pandemic >> yeah.

santoli has turned on its lights people arguing in front of the club's. every hero one of the biggest music events in europe takes place here. if you are interested and you come and trendsetter you definitely have to visit in september for the band festival during 4 days there are plenty of concerts with musicians and bands from all over the world. this. concert hopping in hamburg 600. concerts on 100 stages in just 4 days much more than the most avid music lover can manage. the 1st fast of all took place back in 2006 the annual event has grown to become one of europe's biggest pop festivals. here it's less about big name acts than discovering new ones from around the world. concerts lively we go to the different clubs and see who turns out. we were just in hollywood someone was playing piano it was really quiet tones were switched off and you kind of have everything d.j.'s on stage there's something for everyone. i'm going to the mall itself to meet the young british band. i joined them backstage. the i'm a james. and i'm thinking. this is this is this i

that wall street shouldn't be proud of >> so, you know, that's a perfect segue to bring in michael santoli who's been looking at this, as you'd expect what i love in the note to us today which says the side show is getting wild. the question is, does it disturb the main event it's the exactly point that joe just made. do we need to worry about what' happening here in a spillover effect in the rest of the market or what it signifies about where we are more broadly? >> so far, it has really been off on the fringes and not necessarily changed what was going on and doing this back and forth for a few weeks. starts to seem more erratic when everybody is focused on the movers and maybe it creates other portfolio shifts around the edge i don't think right now, we're at that point where we say, this is the market. we've always had these short squeeze stam ppedestampedes, al these kind of hype fests of particular names not always the name brand stocks or multi- bibillion market caps nobody is making money traded most of the volume between 196 and 150 and where is it it burns itself out on a certain

so let's look at the markets and for that, we turn to andrew santoli. >> thank you, andrew. the market found the footing and mixed if you are looking up versus down, and so far, modest moves in the indexindexes, and a shift in the cyclical shifts and back to the nasdaq 100 and the old mega caps, and you see the spread there, and naturally these are much bigger in the s&p 500, and those types of stocks and that why we have more flatness on the index level. take look, too, the banks versus housing, and the treasury yields have taken a pause in the rise this week, and come off of the highs and the banks are consolidating the recent gains, but housing data this week, and the consumer seems strong, and the home builders are up more than 8%. and quick snapshot of semiconductors on the intraday basis are suffering. intel coming off of the pop of the earnings before the close last night, an nvidia is down, and leadership group is coming off of the ties, but a little crack of a high there, andrew. >> mike, thank you for, that and we will see you in a little bit, but it is not the equ

let's get the very latest now with mike santoli. hi, mike. >> the market is repricing in a moment for higher economic growth, better cyclical growth nasdaq up from a negative opening and outperforming the russell 2000 by 5% right now take a look at treasury yield. a huge part of this story. they have clicked above 1% on the ten-year yield one way to think about this the yield move has been it's gone from 1.5% before the covid crash. it bottomed about half a percent, and you've gained a bit more of half of that back. past the halfway mark of getting back to what used to seem like normal is.05% right now it has been small caps over tech it's been banks over tech. the yield move is helping the financials as well look at the xlf compared to the technology sector. what's fascinating here is, yes, this is dramatic right here, but it's been going on for months this rotation has been in motion and the senate results and the perception of what that means have added torque to that and then old economy stuff, infrastructure, we'll be building

mike santoli tracking the market action, unusual trading activity in names like game stop. meg tirrell has updates on the coronavirus vaccines, mike, kick it off into jumping activity around the story stocks. but it is netting out on the index level to more of the same, a retation into growth stocks out of some of the cyclicals and it is keeping the s&p in this steady orderly channel earlier this morning when we did get a downside air pocket in the s&p it kind of broke out of this upper range but reasserted it is without much trouble mostly because of apples of the world with a we are seeing is a layered story of call option speculation that's been going on social media crowding into certain names and attacking the heavily shorted stocks this is a picture from deutsche bank the call option activity. bullish bets, short-term usually, low cost bets on further up side in stocks. the blue line here is small orders in other words, only a few contracts or a single options contract look at the volume flows, how it has surged over the last few months in that type of act sift wherea

all right, santoli thank you. liz young, thanks. always good to have you on the program.focus, i think. we get through tomorrow, get some vaccines and then we'll see. thanks >>> we will talk more about the banks in the next hour when goldman sachs reports. we'll get that going for us, becky. which is nice. >> we haven't talked much about covid but we are seeing the vaccinations continue to roll out. cross your fingers on that getting close to 1 million vaccinations a day my parents got appointments, my mom february, my dad march looking forward to that. these are things we keep waiting on. >> the more jabs the better. i don't think -- if you are walking by and they say, hey, we've got some in the bottle of this vile, go on in. >> did you see that there were -- they think thousands and thousands of doses have been thrown out because doctors have been afraid to give the extra doses, the ones left at the bottom somebody doesn't show up they'd rather throw it out than actually be in the situation of being accused of somebody j jumping the line. >> the screwups, you know, it's

let's get to mike santoli for a look at the markets. was it something he said, mike we were lower heading in >> i can't pin point anything in particular he said really just a status quo story in terms of what message he delivered there. the selling started before him we've been talking about a lot of the wild action in some of the trendy story stocks. the question was would it cause portfolio stress elsewhere and a need to reduce risk across the board. that seems to have taken hold this morning because the wild stocks have just continued to spiral higher and it seems like it is prudent to take some money off the table more in general. i've been talking about this really sort of tight, orderly uptrend since late october we haven't had anything more than a 2%, 2.5% pullback this is a little crack in that trend. we are now below the very short uptrend, 20 day moving average if you care about the short term tactics this is a sit up and notice that maybe in fact we are no longer in this very sort of calm backdrop even though we haven't reall

santoli has turned on its lights people are queuing in front of the clubs in the. every year one of the biggest music events in europe takes place here. if you are interested and you come out and trendsetter you definitely have to visit in september for the band festival during 4 days there are plenty of concerts with musicians and bands from all over the world. this. concert hopping in hamburg 600. concerts on 100 stages in just 4 days that's more than the most avid music lover can manage. the 1st read on 1st of all took place back in 2006 the annual event has grown to become one of europe's biggest pop festivals. here it's less about big name acts than discovering new ones from around the world. cup. it comes or it's likely to go to the different clubs and see who turns out if . we were just in hollywood someone was playing piano it was really client phones were switched off here you can have everything d.j.'s on stage there's something for everyone. i'm going to the mall itself to meet the young british band king on. i joined them backstage. i made the james. an

one as mike santoli was talking about, a 5% increase until that settles back down, that's one to watch. good to see you as well. that does it for "power lunch. "closing bell" starts right now. >> thank you welcome to the "closing bell." i'm wilfred frost along with sara eisen the first trading day of the year turning out to be a wild one. record highs at the open quickly giving way to the significant selloff you can see behind me. the major averages around 1.5% as we look at the final hour of trade. investors closely watching georgia ahead of tomorrow's special elections. the outcome will determine which party holds the majority i

>> i was limpistening to mike santoli.rned about what's going to go on in georgia, which could be a change in the way we view all of washington i thought that your interview with senator cramer was very interesting. i would come to the following conclusion about him i'm not related to him >> you just want to make that point clear? >> yeah. i just want to be sure i've met him long before he was a senator. i checked the family tree. there is quintessentially no relation which, by the way, after that interview, i'm quite proud >> because you're concerned about what some senators are doing at this point to say they want to look back into this, they want to continue these claims of election fraud >> let's move on let's just kind of move on with democracy. the idea that senator cramer says there was no pressure, i think that even president trump would have to admit that there was tremendous pressure. so the disingenuous nature of these people is fine everyone -- there's nothing in the constitution which says you can't be disinge

mike santoli is here to break down the crucial moments of the trading day and we have chris a varone as well energy came to be the best performing sector by a big margin, crude prices up past $50 for the first time since february earlier in the session, just below that level at the moment but the energy sector up about 5% so far today. mike, clearly the energy sector had room to bounce the bounce today significant and enough to drag up the indices, even though it's a fairly broad rally overall. >> yeah, it seemed like the whip end of what was going on today, definitely a move toward the more cyclical stuff. no follow through to the downside after this morning's selling attempt. it seems like getting into a more neutral spot prior to the election in georgia and other events people might view as having two-way risks the market continues to remain at levels where it's hung around for a month, where parts of the market have kind of cooled off when they seemed to have overheated a few weeks ago we'll see if that's enough to get things stabilized and set for another run as we get into this

the wealthy are cutting the line >>> first, let's starts with the market and send it over to mike santoli, with the question that everyone is asking today, amid all the down arrows -- are stocks cooling off >> mildly, at least right now. the question coming into the week was are we supposed to overheat the s&p 500, nothing crazy going on here, in fact, if anything, a very persistent orderly up trend, then a few like 2% to 3% that get bought right around there was a threat, that it was going to put in one of these pieces, and get very over-bought and have a reckoning right now what you're seeing is some of the more overheated parts of the market, tesla get clipped, a lot of it getting skinned, the real economy stocks are doing just fine today. take a look over the past few months like the junior qqq, and the s&p 500 up a very respectful 50%. the high bea, the most volume at this time jumping, and micro caps all of that to suggest you have well up risk appetites, and can both those things go on indefinitely for a long period of time, you need some consolidation/rotation that's what we're ta

mike santoli tracking today's volatile market. wilfred has a report on the big banks and john rodgers mike, first kick us off with today's softness what is driving it >> definitely some needed action i think a lot of the cyclical stocks that had been driving things came off a lint this morning. obviously the banks. but also the muted economic data didn't help either we have been consolidating we have been operating the entire we can under friday's closing level. this morning at the lows in the s&p 500 we tested theier to date break even level it was more of a short-term uptrend. it seems like the market is trading back and forth at the index level juice the try to digest its gains we will see if we need a deeper pullback unclear whether that's the case right now. been talkingall week about all the actions happening outside of the mega cap indexes this is the s&p 500 along with the russell 2000 we know how strong small caps have been. the s&p completion index is everything in the u.s. stock market except the s&p 500. it is us thous

now, let's dig deeper into the markets and on a friday where it is one of the weaker weeks, mike santoli that we have seen, and maybe some disappointment around the stimulus, and what work? >> well, brian, the markets are due to have a little bit of the slippage after coming into the year hot. and a half year decline to the broader s&p 500, and the small caps are down 1.5%, and the whole week is fatigue with the mega cap stocks and hyperactivity coming off of the boil. and today, the intraday off of the s&p 500, and where we are finding a little bit of support here around 37.50, and that is the year to date and break even level to the short term trend line. so buyers came in before people had to start to ask the question if this is a larger breakdown. and obviously, you have to see how the rest of the day plays out. and also, some of the recent hot ipos and manifestations of the speculation fervor is giving back. and you can see here the big percent gain from the ipo prices and the slide of the pash m-- poshmark, in petco. and looking at the run there and the improvement in the banking s

he'll join us but we'll start with the markets this hour mike santoli has more on that. hi, mike. >> hi, kelly markets are moving kind of in lock step all across the index yesterday they were down a percent and a half pretty much in harmony shows you regaining a third of yesterday's losses. look at the s&p 500 over the last few months. little shakeout we got yesterday didn't disturb what's been going on for at least a month or so, december 4th closed at 3419 and january 4th closed at 3700 under the surface a lot of churn and stocks down a fair bit from their highs so maybe this has been a refreshing in consolidation or start of a new choppy phase energy material this, stuff is moving crude is higher above $50 a barrel, wti, opec meeting, but also there's been a global reflationary sentiment and sentiments going up and we do have all commodities running, especially miners related to cold and silver and take a look at treasury yields you know really good ism number, nunging this hard, .96 this was your high back in november .88 as a close so pretty much that trend remains

welcome to "squawk box" here on cnbc i'm becky quick along with andrew ross sorkin and mike santoli.ss we're playing because of game stock, get it, a little bit of a stretch but i get it let's take a look at what's happening with the u.s. equity futures at this hour you're going to see right now after a mixed day yesterday, there are some slight give backs this morning dow futures down by 1% s&p futures off by about 5, and the nasdaq off by about 34 yesterday, the dow was down, but both the s&p 500 and the nasdaq rose to new highs. part of that because of what

we soap up the santoli playbook after the break. coming up right when we come back >>> plus, what to expect when big banks start reporting earnings loss. "squawk box" coming right back ♪ you can go your own way ♪ it's time you make the rules. so join the 2 million people who have switched to xfinity mobile. you can choose from the latest phones or bring your own device and choose the amount of data that's right for you to save even more. and you'll get nationwide 5g at no extra cost. all on the most reliable network. so choose a data option that's right for you. get nationwide 5g included and save up to $300 a year on the network rated #1 in customer satisfaction. it's your wireless. your rules. only with xfinity mobile. ♪ >>> welcome back to "squawk box. i want to get mike santoli what has more on the markets. >> yeah, markets ratcheting higher the s&p 500 it's kind of paused a bit. taken a bit of a breather. but this is very significant after this choppy sideways period where we hashed a lot of things out before and after the elec

mike santoli has a look at what past years might show.hing for everyone in the market here. looking at the headline over the column here. similarities to the 2010 recovery we've been talking about it quite a bit. break this down. >> exactly we have the post recession forces the 60%, 75% gain matches up almost perfectly from what we saw more like the late 90s all those things have to play out in different parts controlling interest rates to where they might be. the market bottom of 1942 before it was clear what the out come of the war would be all of those things in the mix getting the better upside. how hot is too hot for the fed to handle. >> we kick off the new calendar market maybe it is the right thing to do. >> when you go down and we've seen the rotation underfoot as you see the reopening recovery trades is there more room to run in that just after seeing what was lost in that performance. how does that happen is it because banks and industrials see it happen. we also see a lot of activity and people are on board psychologically or

and let's talk about the behavior of the markets yesterday, this morning and the days ahead mike santolins us now. kind of weird yesterday. i kept checking the dow to see what was going to happen, and it was a little odd and there's a lot of liquid clidtclity >> and the market did come off its highs exactly at that moment when the folks went inside the capitol building it's not as if the market was oblivious. what the market has been doing for months is hunting for indications there will be an acceleration in the economy. it found plenty in the democratic retaking of the senate arguably, and yesterday it just sort of continued on the premise that that was going to be the case and there was going to be an early transition in the white house. very steady uptrend we have seen recently yesterday's high, by the way, is something about 37.80. as it's indicated, you open below yesterday's highs. that's talking around the edges of it. in terms of the market, how it's trying to price in the economic acceleration, take a look at the russell 2,000 against the nasdaq in the last six months there's a

cyclical tilt to the markets, financials, materials the best performer tech the worst performer mike santoli is with us as well. mike, the dow jones still closed at 30,829, at a record all-time high, up .4%, 437 points, off its high of 600 points ultimately the market relatively resilient in the face of this violence today. >> wilf, gains moderator but the market started the day aggressively pricing in the policy implications of likely democratic control across all three branches, based on more stimulus, based on faster economic growth. and, for the most part, that conclusion has lasted through all this the premise has not been challenged it's just a matter of moderating some of the confident risk appetites we saw a couple of hours ago. if you looked at the s&p 500, it fwaned back about half of its daily gains in the last couple of hours the volatility index had really receded quite a bit in the market strength has come back. i don't think it changes the overall story, but clearly just very much people sort of pulled in some of their horns after a very good run in the market. >> shep, the ot

mike santoli has been studying the charts we had guys say we go higher for the year but maybe at somey it forward trade comes home to roost and the frost comes out before we go back up is this the start of anything today, mike? >> it's too early to say that. down 2/3 of a percent in the s&p future what's been going on instead of an across the board declines is just the sort of rotation. some groups cool off and pull back you can see here since the end of october your pull backs have been limited to 2 to 3% for the high you want to take a look at how steep and aggressive those short-term peaks were in june and august not quite the same situation although right here if you looked at how technically over bought the market was on september 2nd relative to its longer term trend, you're pretty close right here the makings are there. what's interesting is what's going on inside the market take a look at this chart. over the last couple of days what you might call the leading frontier of risk appetite. obviously we're looking at bitcoin having a steep decline small caps have been recent leade

and you know who can take us even into the weeds about the market this santoli character a sharp selloffto kickoff 2021. i want to talk to you at the end of this mike >> yeah. >> i do. because i'm trying to figure out the consensus for the year and it makes me uncomfortable that everyone sort of feels the same way, that we're going to be up mid to high single digits. has anyone said we're going to be down for this year after we already sort of got the reopening trade? paid forward and we're going to get stimulus so we're just guaranteed to go higher it just makes me uncan recall th uncomfortable that's so prevalent. >> right it is also not unusual at the beginning of a year to have everybody clustered in exactly that spot. so i don't know it is necessarily two bullish, two bearish or just the way it is that everybody kind of looks fur that high single digit or 10% gain, which almost never happens in a calendar year look at the one year of the s&p 500. after yesterday's little shakeout now it is hard to say if it was a change of character. not yet a change of trend but really just kept th

cnbc senior markets commentator mike santoli joins us now. 200 points off the all-time highs. >> welle last eight or nine months we have had a constructive cooling off period maybe i think if you loved the market longer term, you might be hoping for one now markets are starting to run a little bit hot and the choice is chill out or overhead. this is the s&p 500 along with bolinger bafrp e er band. you see the s&p on friday's close nosed above the other one. that was the peak in september, 10% correction you nosed above it in early june it's not a prediction, it's saying that the market has essentially gotten a little bit stretched relative to its own behavior on the s&p 500. one of the reasons the market has been so strong and powerful and starting to heat up, you have the reflation trait, cyclicals and all of that flying at the same time as the fin techs and all of that. this is the more volatile, cyclical semis, banks, things like that, they have been flying iwc is micro cap stocks. this is over the last couple of months you see how they've taken flight splv is lower volatility risk