Data from the late stage kile of its Covid Vaccine and could reveal that data on how things work very soon were keeping our eyes on shares of southwest the airline saying it sees a deceleration in revenue improvements for the rest of the year, carl jim, well start with the balance between these covid numbers and the expectation that winter is going to be tough. But got to say some of the encouraging headlines out of curavac today saying that this might not be something we need every season because the mutation peers less frequent and more stable at basically refrigerator type temperatures. Look, im convinced that the people evolinvolved in this, i n well get good news from all these companies. Havent stopped the times. I expect good news from moderna. I expect good news from j j. I speexpect good news from glaxs behind, but astrazeneca. Here is the problem, carl, i keep thinking what happens, when do we get it when do we go to walgreens and just get it . And will everybody get it . I just think that it is just not i first thought it was going to be march, april i lowered my expectations to may. I think that may is when im pretty confident that i can get it because the distribution, washington is playing curious role, david, in distribution, dont you think . Not playing a role. It is unclear what role theyre playing right now. You, you,you are genius thank you im going to keep that on tape and just play it every day for myself when im not feeling good. Doesnt it make you feel like thats that thats not necessarily the way it should be no, it shouldnt be we want a National Plan for distribution plan. We want a plan. Youre funny. Ive been hear ive. Ive been hearing different things, march, april, may. It is coming it is go to be a very tough couple of months coming. The numbers are staggering i use the global covid19 update and they have a bit different numbers, but, whatever, 149,000 yesterday, texas had over 12,000 cases, illinois had over 12,000 cases. Some states are starting to suffer well keep our eye on hospitalizations as high as they have been since the peak of the pandemic in april. And thankfully as we pointed out many times, death rate is far lower, we know how to treat this much better. Thats not necessarily drugs, thats just actual doctors understanding how to treat and so thats a great thing. Nobody wants to end up in the hospital it is unclear where we end up here in termsof further restrictions, not necessarily lockdowns, but further restrictions on the ability to go out and do things because we do know, jim, how this spreads and that is indoors, people not wearing masks. What is incredible is that we know, no ventilation, indoors, viral load, we know these things but we are not really were a nation of rugged individualism that does not necessarily want to be able to say that you can tell me anything, you cant tell me that i should do contact trace, you cant tell me to get tested, you cant tell me to wear a mask. Thats the american way. And i think the american way is not so great on a pandemic cool when it comes to the rest of the things. When i look at these numbers, what i think of is at what point when you have cuomo saying it is going to be you got to close at 10, what point is it 9, 8 i ishave a company on tonight, cisco, they claim the restaurants are still okay at what point does it get too cold and then the the absurdity is a lot of thelinkedn what if we get to thanksgiving and the super spreaders come back, the kids who dont know it it is so lumen that i think we cant even pretend the numbers go down. I dont see it going down. Ever is a long time, jim. I meant this year thanksgiving and christmas and yeah, right and thats why dr. Gottlieb says his familys thanksgiving is not going to be the way it has been in years past. I see Morgan Stanley takes costco to 400 today, keeping it overweight on that sales strength if we continue to see the share go away from restaurants back it grocery, on your question, guys, about retail delivery of the vaccine, Morgan Stanley has a note out today, we would expect the u. S. To have enough doses to vaccinate the entire population by the end of q2 more interestingly, though, guys, is we believe the uk could be on a similar timeline while europe would be 3 to 6 months behind the u. S. And the uk so it is a global issue, and there are going to be some who are not first in line. Wow europe is europe is a frightening place in the sense that people keep saying they tell me masks so much, europe, they wear masks, no enforcement over there spain was able to get it under control when it cost you 800 euros if you were caught outside. You want to get serious, you adopt a spain plan but then they relaxed and once they relaxed they came pack with a vengeance. We all know where the virus is coming from. It is families that get together and with someone who hasnt been with them in a long time, and when you go to the restaurants, but i think that what can happen is there is kind of an ennui to it. A level of complacency, no doubt. It is very hard not to be somewhat complacent. It has been a hard eight months already for so many people and it is just difficult to continue to modify your behavior the way you need to, to make sure you dont get the virus or transmit the virus how about in china, they completely changed their in china they managed it much better many countries have. Im looking at germany, which has seen 20,000 cases as fiveday average of 17,000 thats bad for them. Lets not forget 12,000 deaths there versus 247,000 i believe here in this country so even when you adjust for population, nothing remotely close. But, jim, the vaccine is coming. And, you know, youre in an age group where i think you get it sooner than may. Thats what i thought hopefully thats the case. 90 number is a great number and we can see what moderna tells us and what we get from some of the other trials as well, there are going to be vaccines the fact is it is not that hard to be immune from this we know that, there are so many people that have it that dont know they have it. Modest changes in antibody levels seem to have a Significant Impact on the virus. It is just a matter of waiting, hanging on. Carl, i think that the big issue again, i come back to washington, the issue is they dont know whether they give it to super spreaders first, younger people, or to people who are more at risk and we dont have a plan about which one to give it to. So when you go to ive gotten various doctors telling me various youre not the super spreader section, youre going to be early in line, thats why ive come back to think it is a may issue. But i think what it really matters for the stock market is you had some momentum coming, you had southwest saying good things you had a disney meeting where i thought we are going to hear good things. Disney is going down ahead of the good meeting so im beginning to worry that there are companies that had your had their hopes up and their hopes are dashed but there is nothing replacing it until this amorphous may period southwest. Youre referring to the comments out of southwest today that they have seen some of the booking strength lose steam in recent weeks they point out, jim, it is hard to distill it from seasonal patterns is it related to the spike in covid cases, even the company doesnt know but i see what youre saying. Right phil lebeau talking about the race to go to florida, look my wife, who is moving to florida, in order to avoid the virus. Really . Yes airbnb yeah airbnb has benefitted from this it didnt appear that would be the case initially. And theyre going to come public and you want a piece of that. Yeah, start a road show very soon. That will be the best deal between new and year end, i think. Because airbnb was supposed to in march, people are thinking air they did the big layoffs. It looked like the value of the company was inpaired nobody was going anywhere. But then people want to stay somewhere they have full control over and not share people hate elevators there is a pathological fear of elevators. And until every what are you laughing about it is a funny line. A fear of elevators. I flew in from l. A. And my arms are tired otis is doing what do you mean, take your wife, your wife is going to florida anyway. She doesnt want the infection. I know florida has a ton of it where it is warmer, there is a sense that you can go outside more a lot of people are barbecuing i had clorox on recently kingsford fall it is getting chilly and it is nasty out and i just think that what happens is you tend to do things indoors and when you do that, we have to go back to the clorox economy the other side. Not the kingsfords, but the clorox wipes of which do not use on your face i made that mistake yesterday. So, this is the period here where you snatch up kroger and albertsons and caloric rockies and t clorox and the ones we talked about in april and may. Good rx has a deal with kroger costco has lanes where you dont feel like youre threatened. Socially distant you have a racetrack, lanes can handle two you know how much space there is have you ever been to costco no. Youve never been to costco. I did once. I went and visited with the ceo years ago when i was doing a documentary. I shopped it is a different experience but, when you recommend costco, what you recommend is the safest retailer because they were the first one to demand masks, and imlook for a special you dont want we want darden to be we want olive garden how the bars are doing, when we closed our bar, you cant have people at the bar. Theyre not allowed to be at the bar. It was kind of oxy moronic we have a bar but you cant be there, and now you cant be there after 10 00. Back to the big picture market move we were talking about, a few days ago, we got the great news on pfizer, we saw the move, suddenly out of the big stocks, the megacaps into value. We said this is going to last a day. We saw the banks explode, remember we saw a number of wow, the airlines explode is it a was it a oneday or twoday phenomenon and it seems like thats the case because of the tenyear, the 20year. People are talking about the idea that rates are going to go up i had Rocket Mortgage on last night. Theyre the largest. Rates arent going anywhere. Not going anywhere look at the rates today off the cpi. Geez, were back i guess jp ill mackke a prediction i think this stock at 117 and dropped to 114, i believe this thing is going to go to 110 today. What is going to go to 110 today . Jpmorgan. Jpmorgan. Yeah, 117, two days ago we had double digit gains in the big banks. That was wrong. Wrong. Carl, it is wrong. Not a lot of Economic Activity if everybody is afraid to go out. Docusign, i guess. I know what youre saying it was 102 on november 6th not that long ago. Your point about core cpi ismcp flat claims were a little better than we expected. Jim did mention rocket, talk about the economy last night on mad money. Quick listen to that the changes that are happening in the Work Environment were not going backwards, there is efficiency there is better quality of life. I imagine people will work in the office part of the time. Theyll be working from home part of the time and thats why home is more important than ever and we dont see that changing anytime in the near future here. Yeah. Right in line with your thoughts, jim. Yeah, jay is really terrific. They are by far the largest. Their goal is to have 25 of the mortgage market. Theyre all digitized, just the way they do things in china. What i thought was incredible, the value of your home used to be dictated by a price, look a zillow price during the heyday of zillow. It is now where you learn, it is your school, it is your office, and it is indispensable. And i think therefore the house, that whole move from the from city to suburb got reignited you know what you need when you do that . You need a car i cant wit to tell you wait to have on tonight. Youre not going to tell us now . Ford. Jimmy car car. Jimmy car car my biggest interview of the year im not kidding. He wants to make cars that are profitable i know. I think we get an assist for yesterday having you go on that very long i knew i had him, but you werent supposed to talk about it that was a building a buildup. A tease, a buildup. You know tv things farley is just, hes dynamite. Farley is dynamite we have to go to break someone says that in my ear. Lets do that, jim. We have got calls today on home depot, nvidia, snap, gm. Powell speaks in 15 minutes. Dont go anywhere. The cavalry is coming here vaccines are going to have a major positive impact. Theyre going to start being implemented and deployed in december, and as we get na the early part of the year, it is going to be january, february, march, more and more and more people are going to be able to be vaccinated. If we can hang in there, do the Public Health measures were talking about, were going to get this under control, i promise you. Thats dr. Anthony fauci with some pretty encouraging comments this morning on abc news he also said yesterday he expects mrna to start to have data to work with within about a week and said he would be surprised if it wasnt as effective as the numbers we got out of pfizer. I thought that was terrific i think it is going to be a rolling situation where you get good news from all these pharmaceuticals because you havent heard any of the trials. And what you want is good news, plus as honeywell said, that they have the vials to send. I think that is a very compelling story i want it to be like polio, we beat polio, were getting the shot, it wasnt up to us, we just did it. I think that can happen here i think you have to go off what dr. Gottlieb said, dont go anywhere until you get to vaccine. You get to vaccine and we can beat this. The message i think doesnt sit well with america. It doesnt. Many people are resistant to that you see it even now in states where unfortunately it is out of control, out of control in so many states now. But it is coming, we know that there say side effect profile question, moderna and pfizer vaccine, are there more side effects, is it a higher dose, the higher load, so well keep an eye on that there is the question as to how many people really will be resistant to taking a vaccine, which we discussed before. Typically it is a fairly small percentage of the overall population, and it may be a bit larger now, given how much tension has been given to this vaccine and concerns about whether it has been rushed, the companies themselves have been very transparent throughout. But, we have to keep an eye on that too 90 is probably the best news that we got. Given so many people seem to expect a far lesser we all got the flu shot the flu shot is, all right, i probably had a 50 chance of i thought it would be like that. 90 means just take it, carl go take it it is a twopart it is a twoshot situation you got to go twice. Vigilant about that. I just wish that we already the military involved, we know where it is supposed to be kept in terms of freezers what we lack is when you know that cvs and we know that walgreens are going to deliver it i just would love a timeline. We all would. We all would i wonder dr. Mark osterhome is proposing a four to six week lockdown in this country, which, of course, as david was saying may not fit with a lot of americans view on what needs to be done. There has been some work done on israel, which does have a lockdown of a few weeks and brought their case load down fairly substantially but this is just one doctors opinion. Well, look, i think that was the president current president ran on the idea that thats what the democrats would do and america doesnt want a lockdown i agree with the president , america doesnt want a lockdown. It has to be dr. Gottlieb has got this right has to be done by you. We have to ourselves do it you want to put yourself at risk, be my guest. Dont put yourself at risk dont go to places outside your ecosystem. The guy has been right from the day he started talking and if i were if i were biden, i would say, klain, go speak to gottlieb. You got to pay him a lot of money if you want to get him to speak. He charges big money, not to us, thankfully but how do you know that . Zw i know what his rates are wow. Hes a good guy. Hes great. Good for him i dont know if hes if you want an hour with him he tells a covid joke what does he do at the beginning . Gives why edyou advice aboutt of different things. A break, a look at futures here opening bell in seven minutes. Dont go away. 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All right lets get to a mad dash before we start trading for the day, less than two minutes from new salesforce, i dont think you know much about this company, jim. I know enough to know there is a fellow by the name of keith wise and hes at Morgan Stanley. Hes betrayed us all he downgraded salesforce from buy to hold, talking about maybe some larger problems, but it is really if you read the piece entirely, it is that hes basically drawn a line in the sand that growth valuations have gotten too high, the actual issues here, talking about a few years from now, the company may not be able to grow as fast, well know there is a law of large numbers. This is a dow stock. When i read the piece, i get the overall feel that hes saying it is over, it is over, this idea of paying too much for these different companies. So keith, if this market goes down big, it is on you all right keith wise felt i would highlight he goes home and his family and says, hey, listen on national television. Im not trashing him. You havent trashed him hes questioning multiples which is an acceptable thing to do in an environment like this we have done it a number of times. I had plenty of guests come on and talk about apples multiple. I think this is an important piece. You want to challenge your assumptions here we have been paying a lot of money for a lot of stocks. This service now service now. The workdays, and we have to worry about snowflake. We do. We have to worry about crowd strike we have to worry about cuoupe k. We have to worry about these. Do i need to worry about kupa yes, you do. Okay, im worrying about kupa now. I feel for you, david the opening bell here and see if we can make it any better. Some individual calls today, deutsche goes to 500 on nvidia from 450 and we did see some nice outperformance on the chips yesterday. I have to tell you, this happens every quarter to nvidia. These guys raise numbers, raise numbers, raise numbers and nvidia comes out and cant it the whisper is trash by these guys, theyre giving you the whisper number and jensen, they just cant eat with all the hype. I wish these guys would knock it off and let the quarter happen rather than get people buying it and then lose a quick 30, 40 when all nvidia does is shoot the lights out theyre saying, listen, theyll shoot the lights out you need to keep expectations down theyre not doing it theyre in thenot playing ball sometimes you just it i remember when it was approaching 100 and we were, like, wow, inindividualia is getting to be a pretty big company. It is going to dominate the ga gaming, almost all High Performance computing. It is going to dominate in automatic driving. A lot of domination. Have you ever seen, you cannot tell the difference between a human that is drawn by nvidia and thats why these video games are i dont know, when you play the video games, have you noticed they look exactly it is hard. A younger person a 7yearold doesnt know that it is not real yeah. It is incredible the graphic ability. Im forgetting the term, you know it, but what they have been able to do nvidia is heads and shoulders above everybody else, lisa su, sorry to say that, when it comes to this one part i think nvidia, if they get arm, will be what we used to think of intel. Intel is a shadow of its former self. These are the stories that play out over time in our markets and we tend to not to follow because were so day to day. Market valuable of 200 billion nvidia is 330 billion. It is far larger and when you look at these with two companies and trajectory over the last five years, to your point, it is very interesting the decisions that are made by management and intel had a series a number of different managers at its helm it is not a great manufacturer anymore not run by engineers it is run by a very good guy, but in the not an engineer. We talked about apples battery life, 18, 20 hours, they ripped out intel. I remember when intel begged to get in, 20 years ago, they ripped out intel, like, hey, guys, sorry, you hear the specs of the new batteries, wow. Im on the huno longer on the h plug. A nice breakdown, a reminder of what we heard earlier in the week in terms of specs, it doesnt seem like there was no friction in going back internally on the m1 all sectors are red. A handful of dow names green, home depot to buy today, 315. I guess it is the reverse of what we were talking about on monday. Not saying it was fatuous, i like home depot, but one of these calls where, hey, i like home depot come on. You got to have a data point there was no data point. We dont have a lot of data points now in the middle of some kind of weird part of the earnings season. You got to have something that i have im writing a piece for tonight for mad money, singles day. It turns out to be unbelievable for nike it was incredible for levis and it was blow outfout for est lauder skin care. Skin care youve been definitely on that bandwagon. Skin care band waggen ive been right Everybody Knows that masks are horrible for your they bring out the pimples in you right you need more skin care to help treat them. Cant use soap and water. It is not working. Right you know that your point, estee lauder has been big in china for a long time, made that a key market years and years ago. Singles day, it was la mer that did it. La mer got it. La mer. Got it. They like nike and levis. What is la mer . No idea i thought you were saying the sea in spanish it was a product by estee lauder one of the more expensive. He doesnt know la mer do you know joe malone i remember moses malone as im sure you do this is joe malone, sold a huge amount of joe malone, huge markup product he doesnt know joe malone. There is enough to know im trying but, no. I know that name at least. The other thing, the c i dont know. They make a lot of money off of it. And singles day was estee lauder day. Thats my take. Referring to china, and boeing did give us their 20year commercial aviation outlook, and which they say that china is on track to become the biggest market they see them acquiring 8600 new aircraft for 1. 4 trillion, 1. 7 trillion in services, jim. So the point you were making a couple of weeks ago and that is how chinas recovery has shamed every other Global Recovery all around the world, and we remain in a period where American Companies will count on it it is ironic, right President Trump ran on and acted on the notion that china should not be the triumphant colossus, it is going to be United States, but the virus laid us low, it did not lay them low. It is important that someone reestablished relations with china. Ive been hardline on china but boeing stock is down today off that i think boeing stock is an incredible buy, but not if southwest is saying that things arent good. By the way, southwest is a key client of boeing we know thats been not a friction free relationship guys, yesterday, jim, you asked about spacs, another feature here today some sad spac stories. What is a sad spac story . As you know, we have been talking about spacs this often this year because there are so many of them they have been raising so much capital. 174 by our count so far in 2020. Gross proceeds, 63 billion has been raised average about 365 million, much bigger ones over a billion ackmans out there with the biggest spac hasnt done anything yet, unclear what the universe is you have so much money chasing these potential companies that would look to go public you wonder if the quality will decline or if theyll look in different places sometimes you may have a funky Ownership Structure or some other things that are not necessarily conducive to a public offering, the traditional way that allow you to go the spac also want to align with one of the responsers wsponsors who hae in a particular area and can be additive to whatever deal it is that you are doing with them but that said, sometimes things also dont go particularly well. Now, why are we seeing so many it is a Pretty Simple answer again, to use one of jims terms, sotta vocce, you hear people say free money. Thats what it is. Just free money. You issued a spac, ten bucks, investors can say no, you can basically get have to refund, but if they do a deal, you as the spac sponsor are getting some percentage of that company. Andrew sorkin asked Barry Sternlicht earlier on squawk box, theyre dngoing a new dea today, sternlicht didnt answer the question, but youre seeing so many of them. The opportunity is simply too good for investors across the spectrum to walk away from the opportunity being to take a large percentage of a company if in fact you can find the deal. Again, when there is that much money, chasing deals, sometimes the quality can start to decline and we can see some blowups. There have been a few. It is still well above the ten bucks. If you did get in on the actual spac, youre still a double. Certainly it has been down from where it was new ceo very serious. All right thats the first positive thing ive ever no, the guy could be a hitter this is your typical spac they were not ready to go public the traditional way. They did and they had the support of jeff, he was at value act, at that point but then there have been others. A global transaction that had to get completely reworked because the business got caught up in the travel slowdown. And then youve got multiplan, which i talked about many months ago and they announced this deal, this is one of the churchill family, remember, one, two, three, four, and five and another serial spac raiser, but multiplan hasnt gone that well yesterday there was a no doubt from a noted short seller, muddy waters, went on and on, i suggest people read it if they have any interest in this. A lot of the focus was on a Company Called naviga are rd, a competing business, formed by United Healthcare and they say that mpln is in the process of losing that client because of that competitive edit in the form of navigard and revenue in 2002 could decline by as much as 23 . As you might imagine, multiplan responded forcefully to this, they moved their earnings up from after the close today to this morning we have some of this for you as well their ceo talking on the conference call, specifically rebutting this contention from muddy waters saying united is not leaving multiplan. Take a listen. United is not leaving multiplan. This has been an extraordinary customer partner and Industry Leader we have worked they have worked with us continuously since 1994 and are continuing to grow their business with us. Navigard is a Helpful Service and not a replacement for the sophisticated suite of products that multiplan provides. I dont have did that say miller tabak or mark i hope it said mark. There is a lot more we need to go through and people need to. But it just goes to the point that these bear watching closely. The questions and Due Diligence by the spac sponsor. And it is all a promotion. Everything is they dont want to come on they all want to come on constantly to promote, they want to get the stock price above 10. Did Barry Sternlicht say how much no, andrew asked, is it 80 million . Hes putting in 50 million of his own money. We should go to rick. Lets go to carl. Yeah. Being led lower by some cruise lines and casinos. Rick, well get to you as well good morning good morning, carl. If we look at what happened with long dated treasury today, 30 year, you see it spiked down at 830, we had cooler than expected cpi. We also had initial continuing claims, both lower and we spiked lower. But now we spiked lower than the 830 lows, losing momentum, we do have a 30year bond option today. Look at a month to date of tenyear even though were still close to the top of that range, we are losing momentum. You want to pay particularly close attention if we get below 9 0 basis points were below 170 in a 30. If we look at the yield curve, 10s to 2s, coming off the steepest levels in three years finally we talk often about the dollar versus the chinese currency here is the chinese yuan versus the japanese yen the yuan is close to year to date highs and finally a threemonth of the dollar index. You can see we have had a 2. 5 cent range in the bottom third of that current range. Carl, jim, david, back to you. All right, rick, thank you very much. As jim said earlier, the good rx ceo is coming up in a bit here the Detroit Free Press reporting that detroit schools are going to go to Remote Learning not a surprise, not the first city that has done this as we see a rise in covid cases. Were back in a moment dont go away. Keeping your oysters business growing has you swamped. You need to hire. I need indeed indeed you do. The moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventyfivedollar credit when you post your first job at indeed. Com promo and unmatched overall value. Together with a dedicated advisor, youll make a plan that can adjust as your life changes, with access to taxsmart investing strategies that help you keep more of what you earn. And with brokerage accounts, you see what youll pay before you trade. Personalized advice. Unmatched value. At fidelity, you can have both. More than this good rx out with Third Quarter earnings this morning. Doug hirsch, a disrupter, joins us now doug, always good to see you your excellent letter to shareholders, you Say Something that pretty for too many healthcare in the u. S. Is expensive, complicated and confusing. Every year americans pay more out of pocket costs and face more insurance hurdles and restrictions what are you doing about it . Honestly, we are here to help americans get the healthcare they need at the price they can afford it what has been driving me for over a decade. We want to build americas leading healthcare consumerfocused plat foreign minister platform and so proud to be doing it were running all sorts of new services to help people during covid and continue to help people get the care they need, whatever they need it. We have done a whole bunch of new work with Mail Order Services and were just super excited to be able to continue to deliver on what we promised, helping americans figure out this very complicated Healthcare System we have in this country. What if you were president elect biden, called you in, and said, look, this system, even within obamacare is nuts how would you fix it what would you say it is hard, right we had we never have been able to come up with the right solution what im trying to do is give consumers all the knowledge they need so they can treat their healthcare like buying anything else, buying a car, buying travel consumers should be able to make a choice of what healthcare is best for them. Americans spend 4 trillion in this country there are so many ways if consumers take action, they can bring that cost down and we can do it ourselves. I hope politicians will help we have been around for a decade and waiting for better policies and things to fix. But im just going to keep giving consumers the tools they can do it themselves. You say 50,000 a year for medicine that was generic. That only one company made and it was not my Insurance Company would not pay for it how are you able to find prices for something im paying 50,000 a year for that ended up paying 12,000 a year for i think you know, pharmacy is just broken. Pricing and healthcare is so wacky. The Million Dollar drug. What we do is try to bring all the information together every day we get more than 200 billion if you can imagine this price points and sift through all those and various ways consumers can save and find best price for you, regardless if you have insurance we try to bring rational thought back to an irrational industry it is a pleasure to help americans save over 25 billion and now delivering drugs to their doorstep when they need it, providing telemedicine services, dont leave the house during covid were trying to fill any gap we can fill and healthcare pricing is irrational, well do what we can to fix it. Doug, it is david on that subject, building on jims question of a moment ago, what are your things like delivering meds to the house, seeing a doctor online all of these things are exploding. Working on this over a deck a aid. We are here to work with it whatever administration to make sure we find administrations wherever we need it. People will hit the stock and know we are at a loss. You have to explain to people that there were costs to going public and you never did impede the profitability. Im so excited to fill in these gaps i have all of these incredible tools to roll out. Even though before, they reached out. Well continue to invest and the whole of the pandemic with prescriptions too. Thank you for being with us you were with us at the beginning when you were a disruptor. Thank you for coming on sqwawk on the street. Carl, back to you. In the meantime, you see the dow lower. Mondays intraday low was 29,130 we areac bk to 3,555 on the s p. Dont go away. Sales are down from last quarter but we are hoping things will pick up by q3. Yeah. Uh. Boss doug . Sorry about that. Umm. What. Its. Um. Boss you alright . [sigh] [ding] never settle with power e trade. It has powerful, easytouse tools to help you find opportunities, 24 7 support when you need answers plus some of the lowest options and futures Contract Prices around. Dont get mad. Get e trade and start trading today. Yesterday goldman took his yearend target. 4,600 for the following year well talk to him at the top of the hour about that call when qwk t see ces back do you have a Life Insurance policy you no longer need . Now you can sell your policy, even a term policy, for an immediate cash payment. Call Coventry Direct to learn more. We thought we had planned carefully for our retirement. But we quickly realized that we needed a way to supplement our income. Our friends sold their policy to help pay for their medical bills and that got me thinking. Maybe selling our policy could help with our retirement. Im skeptical, so i did some research and called Coventry Direct. They explained Life Insurance is a valuable asset that can be sold. We learned that we can sell all of our policy or keep part of it with no future payments, who knew . We sold our policy. Now we can relax and enjoy our retirement as we had planned. If you have one hundred thousand dollars or more of Life Insurance you may qualify to sell your policy. Dont cancel or let your policy lapse without finding out what its worth. Visit conventrydirect. Com to find out if you policy qualifies. Or call the number on your screen. Coventry direct, redefining insurance. Lets get to jim and a talk trading. Microsoft and this gem. I think it is great. A lot of people think the security functions arent as good as so many others the security business during the cloud to the giant business. I thought this piece made me think less of the other companies. Very, very thoughtful. I urge people to get it if they can. All right, joe. What about tonight jim farley, i think ford will return to its roots. One of the most popular stocks of the robin hood crowd or the people who trade on robin hood what hes about is cars. I know that sounds silly but a lot of these people are not run. Look at intel, bob swan is not an engineer. Jim farley is about making cars and making money about making great cars and trucks. I cant wait to talk to him. Hes a breath of fresh air he doesnt like what he does this guy is about passion. I wonder if we get back to a discussion even for a short period where we are talking about factory floors having to shut because of covid cases and supply and demand. Really good point one of the reasons is they shut down very eloquent about it you are right. Ive got to ask him again. Well see you at 6 00 always. We work our way through the week good thursday morning. Welcome to sqwawk on the street. With us, it is a stayathome over that value trade once again. The dow is down 179. Not quite to that low of the monday rally but we are talking about closely. Beginning with a big call on s p 500. Goldman sach upping their target for 2020, 2021 hospitals are nearing capacity as covid cases reach record levels. How the medical community is handling these circumstances and moderna has enough data for the latestage trial of its vaccine awaiting the trial of its effectiveness. Making headlines yesterday with his call for yearend targets. An epic note that got so much attention and the narrative that will normalize and yields will rise feels like it is almost too perfect. That you view will be the extreme. More important for the normalization of the economy it is important. It is essential. It is a medical crisis situation that disrupted the societies it needs to be a medical solution there may be a light at the end of the tunnel. What we are thinking about, that leads us to Earnings Growth roughly 30 . Pandemic depressed levels as far as earnings. Next year, and then looking at 2022 as well that is the forecast our view but also relative to consensus. Where do we think that consensus will be going. Our view is about 13 higher than the other strategists on the street and about 5 perts higher than accumulation of all the analysts why do we have this view others going more rapidly. The opportunity set inside the market is where are their opportunities and about the investment for growth. Rates are extremely low. The market are paying for the cashflow your view that investors will get Better Bargains that will come to fruition. There is vl u trade look at the profits. The level of profits in 2021 next year. The market and the typical stock is going to have Earnings Growth next year around 7 higher than it did last year if thats what the typical stock is going to do, there is a bunch of value stocks where the expectation for profits next year is like 50 percent less thats where the opportunity lies those opportunities lie and will be associated with the value story. You are right, in the next several months, it is going into the winter season associated with a lot of concerns in terms of increasing the infection rate, et cetera. There is a rough patch coming. Ultimately, the normalization would suggest those are the value to focus on. You can call them a return to work a lot of airlines and Industrial Companies that are the beneficiaries of the vaccine the value opportunity and then on the growth side, ultimately the economy is growing at a more modest rate and arguably the Growth Companies health care v from a value perspective. Lower than in 40 years you look at the early part of the administration, obama a decade ago also where you get some of that information historically that would be so cheaply valued right now. The market likes to look ahead im investing for a year out and a lot of people will expect progress a year out. On the short term, are you expecting volatility of what you call a rough patch and how should investors be squaring on the positive news and rising case counts and hospitalizations and freezer trucks taking the place of morgues in some cities. There is the medical situation and ive spent a lot of time understanding the probability. From that perspective to take time and vaccinate a good part of thepopulation there is a view that it would be Getting Better that should retain if republicans, youll have probably less. Some understanding of the policy in contrast, if you have the democrats win those two seats and get the majority in the senate, you have some in a different direction. Some singularity that is associated with a higher valuation in the markets the fed is on hold for five years. On hold but is supportive of a higher level of equity market in our forecast on that point, finally, the fed is on hold but the 10year rises moderately what if you say, well, if the economy is going to normalize, well talk about how long we let inflation run high that would suggest that the opportunity for rates to go higher on the short end of of the curve is pretty remote they are not going to do that any time some steepening of the yield curve. Those are driven by earnings and valuation. Multiple and the valuation is that rates will ultimately stay low. 130, 140 next year still historically, extremely low and from relative valuation of valuation relatively valuable of gap is between our earnings estimate and consensus, i think thats where the positive revisions come remarkable note always great to have you fill if out for us coming up, how to distribute a vaccine that needs to be kept at nearly 100 degrees below zero well speak to carrier next. You can go your own way its 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 thats right for you to save even more. And youll get 5g at no extra cost. All on the most reliable network. So choose a data option thats right for you. Get 5g included and save up to 400 dollars a year on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with xfinity mobile. It was pfizer earlier in the week now on the look out for news from moderna. Yesterday, we heard from moderna that they expect to have results soon enough cases had been seen in the trial for the independent data monitoring to take a look and tell us whether the vaccine is working of course as case levels have taken off. I talked about why release this information. He said he knees people are paying very close attention and didnt want people to be surprised that they have more than 53 cases here dr. Fouchi kind of he stoeld their thunder and about how effective he expects to see that vaccine. It just makes logical sense if you are dealing with a candidate vaccine that is almost identical, in fact, identical in many sense to the pfizer product, i would be surprised that we would not see a high level of efficacy. We may not see high 90 but it will be up there setting a pretty high bar pfizer and bion tech setting the bar high the idea gnaw that it is stable at Room Temperature for 24 hours and you can chill it. What would that mean for that . Pretty concerned about how cold you have to keep that the Moderna Vaccine doesnt have to be kept quite as cold but this presents problems theyve devised a way to ship this in a box with gps tracking. The ability to have a vaccine that could be stored and shipped at normal temperatures could be helpful forgetting the vaccine out and around the world getting people out to wherever they need to go. Leading perfectly in to our next guest mentioning it, distribution would be a key challenge the very low temperature, you have to keep these doses carrier ceo. That is a company that knows something about this good to have you back. You heard meg talking about these low temperatures can varies a bit they have need to have very cold storage. You guys are in that business. Are you ramping it up. What are you doing in terms of preparing for this yes cold chain distribution for pharma is difficult even in normal times you have a clock ticking and an Expiration Date and several hand offs with covid, youve made that even more complex. One is the scale we are talking about with a flu shot, over a billion people get that a year we are looking at up to 10 billion. And then talking about the temperature requirements for all the vaccines that get distributed, you are in the 2 to 8 c. With two of them here, we are talking minus 100, minus 125 degrees c. Public and private industry coming together and new capabilities that will help with the solution how do you get something down to minus 20 cell seous and do you have enough for all of these units youll need to be shipping youll need to add complexity and capacity out there dealing with minus 70 you are dealing with dry ice theyll have selfcontained packs of dry ice you can extend the life of the dry ice by 2 x if you put them in a broader container at minus 30 degrees c you can see the container over my shoulder. We have these you would see on ocean barge. We have pods that can store at minus 0 degrees c. That container can store 1 million doses. If you can put that into a broader minus 30 degree c, you can extend that dry ice by 2 x clearly well need more capability at that minus 30 degree c, which we have. You do have that capacity my next question would be what is that capacity using it for other things like perishables and whether we could see constraints on the food supply today, looking at transport, we have 1. 2 million cooling trucks or trailers out there there is a lot of capacity out there today. Well need to scale that up. If you go to the end pharmacies, you look at their capacity with freezer capabilities, you look there or at hospitals. Some parts of the country or the world, youll need to add temporary storing like you see here that can consistently cool it at minus 30 degrees c how do you add that capacity . Is is it something the supply chain needs to get cranking right now to do that are there any obsticles or capital . There will be no constrains on our end well be adding capabilities to our infrastructure. And more demand to our units with more pods in the broader eco system to be part of that solution we know this wave is coming. The good news is between the cdc working with distributors, its nice to see the public, private industry to come together to be part of the solution it is a real global phenomenon half of the world today lives in populations with insufficient glor al storage. Well need to make efforts to support africa and other parts of the world with the cold chain. You and i have been talking since the pandemic began i remember when you were talking about not spacing people out you just said it, we are in a really bad part of the paepd right now. Are you worried about the factory floor and the ability to produce these types of units i think not, we look at the athens facility, outside of france and prague. We are ready to go we were scrambling to keep things go ping. We have learned how to deal. That important issue you are closely following and taking our time thank you. Looking at the etf shares ticker mchi, alibaba reporting record sales for singles day event. Continuing pressure over recent weeks. Also facing pressure since the postponement of ant groups ipo. You can hear more about that next hour coming up. We love our new home. Theres so much space. We have a guestroom now. But, we have aunts. Youre slouching again, ted. Expired, expired. Expired. Thanks, aunt bonnie. Its a lot of house. I hope you can keep it clean. At least geico makes bundling our home and Car Insurance easy. Which helps us save a lot of money oh, teddy. Did you get my friend request . Uh, ill have to check. doorbell ringing aunt jonis here for bundling made easy, go to geico. Com. Hello . Its a thirteenhour flight, tfifteen minutes until we board. Oh yeah, we gotta take off. You downloaded the Td Ameritrade mobile app so you can quickly check the markets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. Were committed to making college more accessibley, by making it more affordable, thats why were keeping our tuition the same through the year 2021. I knew snhu was the place for me when i saw how affordable it was. I ran to my husband with my computer and i said, look, we can do this. [narrator] take advantage of some of the lowest online tuition rates in the nation. Find your degree at snhu. Edu. And sweetie can coloryou just be. Gentle with the pens. Okey. Okey. I know. Gentle. Gentle new projects means new project managers. You need to hire. I need indeed. Indeed you do. The moment you sponsor a job on indeed you get a short list of quality candidates from our resume database so you can start hiring right away. Claim your seventy five dollar credit, when you post your first job at indeed. Com home. New daily covid cases continue to hit alltime highs us cases topping 140,000 putting a strain on medical resources. Well talk to the ceos of two systems in texas and wisconsin getting close to capacity in a moment wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. He. Welcome back, everybody. Im sue herera a federal Appeals Court has upheld the Harvard Universitys use of race in admission tens of thousands of people are at risk to potential of disease. In pursue people are protesting the please after the ousted president there. Some pictures there hospitals are facing capacity concerns as new daily cases continue to rise joining us now from one of those regions dr. Mark boon. Houston methodist ceo. Texas has reached a milestone. More people that are infected than live in the capital city of usa. Positivity rate 12 . Topping the nation in deaths and 1,000 persons currently sitting in houston hospitals how did we get there and what do you foresee as the future and new restrictions coming down the pike texas has had a challenging experience, particularly in summer upjune and july were difficult in urban areas what we are seeing now is those places that didnt have that second surge are now surging el paso, the panhandle the urban areas are ticking up none of us were quite significant as back in the june, july time frame. Really up ticking now in the last week or two with positivity rates and admissions we are concerned about where things are going and seeing potential for the challenge in the next few months if we dont manage to back this back down. Would you say the Hospital System is prepared over the next few months of projections. This summer, we had almost 40 of our beds and over a third of that now. Watching that go up again. Weve mabaged that taking care of patients without covid and the screening and physicians essentially harming patients like in that march april time frame. All of our plans are in place to keep the and the manage of our patients with covid and to care with all of our patients without that is our obligation to the people of houston. Doctor, im curious back in the spring it was easy to find the places where federal assistance or volunteers could go because it was so localized on the coast and the northeast. Now so widespread in the midwest. How would you decide who deserves to get external assistance to do that. Thank you for having me on today. You are right. It is widespread across the urban and rural hospitals. We have a Field Hospital set up in milwaukee for all practical purposes everyone is on their own and trying our best to keep our staff safe and at work what do you mean and how much worse do you think it will get in the areas you are serving thats a great question in wisconsin, our big surge was last april and mae, now the second surge, since we didnt have our large summer surge is quite a bit more severe. We are having approximately 7,000 new cases a day across the state. You look the those 50 have occurred in the last month including half of the deaths weve experienced. We are finding all our hospitals are reaching their limits in capacity both covid and as doctor boone mentioned, those with illnesses that havent gone away be it cancer, and other diseases i wanted to follow up on that an unfortunate feature has been people deferring medical care for other illnesses. Weve seen death rates beyond the covid death rate that is that a concern for you always a concern. Part of the period that we were staed fastly experienced to in this difficult winter period we have to make sure to care for the patients without covid we cannot let what happened in march and april, people afraid to come to the emergency room. What we yousa is that it can b done now that we have adequate ppe, we understand and have made so much advancement it is a stress but their duty is to care for people they are stepping up i would tell one of the most meaningful letters i received was in august where they said they had seen us speaking about how critically important it was to get Critical Care they had delayed a mammogram by a month and instead of it being six months and unfortunately was diagnosed with Breast Cancer that had a good out come following up, in north dakota, they argued that they are having to let nurses that are asymptomatic but have no symptoms continue to work. Is that a common practice . So we have not reached that level of Desperate Measures yet. Hopefully we dont get there there is no surplus staff to deploy to other hospitals to help each other out. We are trying to equal the low and keep patients local. Right now, we are very diligent in screening our employees who are sim toe magnetic and trying to limit quarantine looking at people who are asymptomatic and test negative to bring them back to work. We are short staffed all the time would you say people are able to get a test if they want one. To ensure that they are knowledgeable whether they are positive or negative not to spread to other people great question. From a Health Care Provider perspective. We do not have enough to test asymptomatic individuals the government has stepped in with the National Guard for people who are asymptomatic and want to have a test. The university of wisconsin has done a great job of testing its students the university of wisconsin has a positive test rate under 3 . Sometimes quite a bit while the General Community is up over 30 positive test rate wow eight months in and still unable to test asymptomatic people in this country thank you both for sharing your perspective on the ground and in your states massive implications and on real estate, robert frank has a report card on that. After more than a year of declines, new rentals in manhattan actually increased one month does not spark a turnaround finally luring young renters back to the city landlords are now offering two months free rent as an incentive. 2,900 rentals account for more than twothirds of that marks the first year over year increase in sales since the pandemic 16,000 unrented apartments in october. That is a record the vacancy root in manhattan that is normally around 2 is up over 6 . The high unemployments and budget affects in the city a lot of New Buildings coming on adding to that oversupply. Take a look at this apartment in the financial district had been listed at over 14,000 a month now just over 10,000. But there are 24 other apartments for rent in the same building a lot of empty commercial space and store fronts and a lot of moving trucks. Some are looking for man at an rentals and others looking for a second home. It should come no surprise that people are choosing to do that from the spots they generally vacation sales are soaring and we have a look the a the hottest spots the area around bend, oregon cape cod coming from san francisco, new york city and boston regardless where people are buying, they are buying big. Homes with second kitchens and second entrances jumping to 15 of all sales. Up 11 according to a new report between vacation homes and larger home, people are paying more the average sale price about 70,000 higher believe it or not, a large percentage buying these homes having never seen them in person thats amazing. Thank you. We are keeping our sighs on shares of snap today why not. Up over 7 Deutsche Bank maintained the buy rating and snap is still down more after this. China may be the only market that will show growth in 2020. Raising concerns about investing in the main land well unpack that. More sqwawk on the street coming up. The Financial Sector is the worst one today. Lagging with names like hurts republic and one of these etfs restrakts. Kre posed for the second straight day of losses and Still Holding on to gains. This all comes as we keep a close eye on interest rates. The benchmark yield is moving a bit lower today after some multimonth highs. Now, ill send it back over to you guys welcome. Many stocks that have been crushed this year. Before we talk about taxsmart investing, whats new . Audreys expecting. Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. Weve been following the marijuana story closely. The results were a green sweep with canibus becoming a new venture. The revenue and positive cash flow for the Third Quarter frmt welcome. Thank you for having me comps are running 65 how planning changes for you now . No surprise to us there is universal acceptance as the use of cannabis as a way of well being across the country. We see cannabis as a massive industry in the United States. We think this is the next American Growth story. Theres a decade of annual compound growth rate how is it that sgna is running roughly flat i would imagine if youre going to keep up with that growth, its going to cost something definitely is going to cost something. Its not going to stay flat. There is some anomalies. We look at the cash sgna it will ramp up. We talked about it it wont ramp at the pace of revenue revenue is a symbol and reflection of demand there is a tidal wave of demand for wellbeing and wellbeing through cannabis you saw it in the green sweep. It is happening every day. Thats what is leading to the 56 comp stores. These are dramatic that is not happening in Consumer Retail and its happening for cannabis because consumers are choosing it. So should investor be thinking about this, the picture you paint if not another state were to ever legalize. I mean is volume going to grow from the existing base or is it really a bet on either national or further state legalization or something external, something in international, for example at the right here in the United States and both is its here these are all the places we operate. There is a massive industry that is half of the country by population so we dont need new states. Business is on the way to being over a billion dollars but its right here in the United States and its very important to understand its u. S. Operators and its not foreign operators doing a similar kind of business. Ben, its leslie picker you mentioned a whole host of states facing Budget Constraints as it pertains to the pandemic which has in a lot of locations has really stretched their budg budgets to the limit are you sfoeg any lawmakers turning to cannabis legalization as a potential revenue driver . Weve seen that come to fruition especially in the Gaming Sector with casinos and so forth. Do you expect the same to take place with cannabis . 100 . Its on the docket right now, right . As being talked about. Governor lamont is talking about legalizing we have one of four licenses in connecticut and one of to nur new york and Governor Wolf in pennsylvania is loud about it. They want the tax revenue. Were a massive growth engine, hiring people, putting in hundreds of millions of dollars of capex in places where there are no jobs. It is happening 100 you mention a great parallel, on line gaming. It is very similar there are several Popular Online gaming you talk about Sports Gaming and gambling on line its complicated these are state run regulatory bodies this is what happens as markets legalize and if you look at the metrics to our business versus those, its dramatic. It sets up well for investors watching its a very interesting time to enter the space. People want jobs people wasnt wellbeing they dont want overdoses from opioids and painful hangovers and several other positives from cannabis. Finally, ben, obviously its a story we talked about for a few years here and when we have the giants of Consumer Products on the last couple of years, some have been they signal interest others have said were willing to wait. Im talking about the cokes of the world, obviously the constellations and so forth. When do you think the Tipping Point comes where they all express the fact that theyre in their opportunity cost is different risk reward than others there is need for federal clarity. To operate in the United States. That is a defined mote around our business and the greatest investor of all time talks about a mote. We have a defined regulatory mote when the mote comes down or the draw bridge comes down, theyre going to come. They need consumer growth. Whether its companies you talk about sugary carbonated benches or cigarettes. Were right here building a massive business, building brands that resonate with the American Consumer in the land of the brand United States. And were really excited about that ben, we hope to you have back obviously story is not going away by any means. Congratulations on the quarter thanks for the time. Thanks so much, carl. Thanks, everybody. As we wrap up here on squawk on the street this hour, coming back to spac, something weve been talking about for months, one of the features of the market over last year has been the just incredible issuance of special purpose acquisition corporations and then the deals that they do. Earlier this morning you saw barry sternlicks new spac they announced the deal. And so we follow these not just when they are issued in terms of the 10 level with the warrants that typically go along with them but when they announce the deal and after and certainly that brought us to multiplan which weve been focusing on because it has been the subject of a short seller report in some ways similar to the impact that nikola was the result of a short seller report. And multiplan did report earnings this morning. Real quickly, muddy waters is the short seller here. A long report. Very much focused on what they say is multiplans largest client by the way, the clients are typically the Large Insurance Companies who they help in terms of the out of pocket reducing the overall cash pay that they have by introducing a great deal of data and analytics into the whole process in terms of what things should cost muddy waters says that United Health care is going to significantly cut its business with multiplan in part because its launching its own service that has fewer conflicts of interest and that saddled many multiplan members with out of pocket expenses. This is the charge at least theyre leveling it on muddy waters carson block, of course, we know who has done that, you know, multiplan response and says not a chance you know, were not seeing any reduction in our business with United Health care and they maintain that things will be strong there and Due Diligence was done by the spac responser, churchill. And that theyre confident in the long terminate of the contracts. David, well watch it with your help. Thank you. Were going to go to break here. We do so, keep an eye on names like zoom and teledoc and amazon the stay at home stocks get a bit of a boost after an initial selloff earlier in the week on the positive vaccine news. It extends to costco and workday and activision, too. New projects means you need to hire. Gers. I need indeed. Indeed you do. The moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. Claim your seventy five dollar credit, when you post your first job at indeed. Com home. Good morning, its 8 00 a. M. At instagram headquarters in california 11 00 a. M. On wall street and squawk alley is live