Trade pl galactic, can it keep soaring. Tim and dan go man ho y manno and fed pecks. You decide who wins. All that next 60 minutes we start with another record day on wall street as the snazzy animation says the s p 500 and nasdaq closing at alltime highs. The dow up gold up. Oil up real estate up guy. Yes, sir. Whats up bonds under u. N. Changed a repeat what weve been talking about. We led with apple last night whats the deal. We talked about the price action should have been worse karen and tim spoke about this we talked about the suppliers. Kor various. Skyworks werent down as much as they should have been. The look at the stocks today apple up big the flows come in. Bad news discounted you could say the fed has our back i dont know but ill tell you gold rallies Newmont Mining rallies thats a concern if you want to continue on the bull thesis in the s p 500. Look at the u. S. Dollar 3. 5 year to date look at the fact you get this move higher in gold. You get some of the call them defensive trades at the same time today semiconductors, that which two weeks ago werewere running into global cyclety again alltime highs up 2. 5 on the smh etf tracking the semiconductors what we are see something the bar bell trade people reach for one side of buying growth. Other side buying Value Industrial kind of beaten up plays or utilities reits thats working. Both sides of the ledger with rates here and the fed not moving, thats the dynamic. Yeah, i would say this. When you think about 2019, almost 30 gains in the s p 500 we know a lot of that came from multiple expansion if you came into 2020 and you said this is the year we get paid getting that high Single DigitsEarnings Growth, what the coronavirus tells us no matter what you think when its over and when the kwarn teerns are done and china as factory to the world is back online, you just lost q12020. Thats a fact here the notion that you think that were seeing this vreversal whether accommodative policy or pentup demand. I think its lazy commentary i see that permeating a lot of investors and financial media. I have to tell if you you go two years with multiple expansion, i think that becomes dicey when you see rates where they are and all those things you mentioned you know, why is fowled up why is utilities par bol ib, bitcoin up 40 on the years . There seems to be a disconnect if you look at the s p 500 equal weight you say its maga. Microsoft up 18 google,ism amazon and the other one, apple all up teens. Thats where we are right now all this other stuff making sense to me is act being like restrictive off. But then those names are risk on yeah, i mean to your point, the vix which normally like a day like today i would have thought would have come in a lot more its not its 1438 i think it closed. Id like to buy more protection because im always long. I feel like this is getting frothy i was hoping the vix would come in but its not. To your point i think there is signs of i dont know. Lets go through the numbers looking at my screen im looking at the numbers throw some numbers you want numbers well throw them out the nasdaq 100, four stocks tesla, amd metrica doubled in 17 months only 17 stocks down in that time about 70 stocks up more than 20 in a year. I understand the concept of multiple expansion i get it but can we have multiple expansion for everybody . I dont know. I think to look at the last year, though, i think that coming in and looking where we were february of 2019. Things were depressed i think that multiples should have expanded from there because they were too low. Because the december 18 collapse. Exactly. A lot of that is climbing out of the hole. Exactly even when you get out there is still at what point like a waistline and belt too small. Why do you look at me. Im tapping my stomach here his own middle. At what point does the expansion get too much. When i got to a 36 waist, i said. S its the end of expansion. Expansion is over. You rented ironman. Got down to 30. To answer your question, at a certain point the passive investing ends miserably stocks take the stairs up a and elevator down. We can talk about wework if that were publicly traded down 807 over the course of three months we talk about it every day to think individual stocks cant do that is foolish but as long as the market believes the fed has our collective back and passive investing is the rage market goes higher. This is the point with lower rates. Whether a dcf model or weighted average cost of capital, the lower you push the rates the higher the multiple. And i like to point out that whether its price to sales, ev, ebidta pe numbers we are back to 2000 levels but not with the same rate environment we had. And its all about Central Banks and fed. If we had any other conversation we wouldnt tolerate it. When the 10year treasury brakes breaks the 2012 and 16year which it will in 2020. That dcf will go out the window. Because those were generation. Dc fflt woo. Discounting cash flow, the ban are, the graphic said is a correction coming. Is a correction coming this year sure. Yeah. Of course its going to be a correction this year how do you define correction. 10 peppers from the highs, definition. Especially when you consider we went up 16 on the s p of course we should correct because this was a qe 49 inspired markets. Yes i think we get it. Since the nasdaq did the incomes and unone hundred hit a record high today and since yeah at the nasdaq seems like a good idea to bring in the president and ceo of the nasdaq, adenna friedman thanks for letting us be in your house. The landlord. Youre the negotiator im the ambassador. She is the landlord. Thanks for having us in your house. You guys continue to do deals. Especially under your tenure we think of the nasdaq first off as cnbc and fast money. Its an exchange its a marketplace. Indeed. But you keep doing the deals. One report esg reporting derivatives. What is the nasdaq today in. Well today the nasdaq is a Technology Company that serves the Global Capital markets and including our own. But also making sure that we provide technology and services that help Companies Navigate the Capital Markets. And we provide the technology to 130 other markets around the world. So we really are enabling the Capital Markets around the world with technology. Can you talk about derivatives transaction today or getting into the part of the Derivatives Market everybody says the nasdaq has always had New York Stock Exchange envy. But when i see this i think are you going after the chicago mercantile exchange. What we do is provide the technology to allow other people to go and compete against other exchanges or create new markets. I believe what you are talking about is the fact that we are the technology underpinning a new effort by airbus to create a Derivatives Market for Airline Ticket prices, making it so that airlines and ticketing companies as well as the travel agencies can hedge risk against the highs and lows of the Airline Ticket prices so thats a new thing. And they came to you and said can you build this for us. Thats correct. They came and said we have in cool idea. And we have some really great executives that know how to operate these types of exchanges. But can you be the Technology Partner to us to develop the trading system, make sure we can help them connect in as well as provide potentially post trade and surveillance capabilities to them as well thats the first. Is it the first of many . Do you see other industries coming in and getting in on this in terms of vertical for revenue that could be a huge market for you guys and gals we see that as a big green fltd for us. In terms of other industries thinking differently about how to create realtime pricing for goods, hedging out risks in terms of the underlying risk that mind might underminimum their industry how do you east the products to make it to hedge the risk better as well as having fun . We are provider a of technology into the Sports Betting arena. Thats and the more fun area where we a lot of our technology is relevant in that space as well. Let me ask you about the ipo pipeline and what you see and does it look different than where we were a year ago this time when you had lyft and uber and. Actually its so far this year we have in more ipos so far than the First Quarter of last year and i think that it last carrier we had a great year overall. 188 ipos listed on nasdaq. 78 win rate in new listings and raised about 35 billion across the ipos appear nasdaq this year we are etting off to a faster start and the pipeline is just as robust just different names but really Interesting Companies coming to market. Adenna, here we are talking about the market and a lot of people talk about 2000 and bubblitious times. From the perspective of nasdaq, the perspective also not just the ipo but the quality of companies coming through and the valuations you see youre not a trader but you see the market in a unique place at the nasdaq how do you call whats going on right now. I actually was at nasdaq in 2000. I remember that. Yes and so it really is in my opinion a very different environment. The average price to earnings ratio of the nasdaq back in 2000 was 100 times plus today its 26 times. So it isnt and the companies that were really the Largest Companies of the world back then were more traditional industry companies. And today all five of the Top Five Companies are listed on nasdaq youve got kind of the much more established companies on nasdaq as well as a lot of big growers. And innovators and disrupters. So i do i think think its a more varied group, more established group at the top and some interesting innovators. But they are Companies Making revenue. You know. Making money. Making money and coming out on attacking the Public Markets in a way oh enable growth. Its exciting. Adenna, i look at your stock and the company and high Single DigitsEarnings Growth expected the next couple years, consensus expectations, midSingle DigitsRevenue Growth you talked about who sits on top of the highest market Cap Companies in the world. The way you compete, acquisitions you make. Should investors think of this as a stealthy cheap technology play or is it a fintech play or just in the bucket of a pretty niche sort of thing which is exchanges . We actually definitely see ourselves in the fintech space as operator of the exchanges we are Big Technology operator ourselves. But then we also do Sell TechnologyEnterprise Software is our business and data analytics. I would say were a company squarely in a good space where growth resiliency and predictability is good. Stocks up 31 in 12 months not only are ooltd of Good Companies you yourself the nasdaq have done well to dans point. Something we talked about, guy and i talked about here. With dollar volumes of etfs surpassing the dollar volume trading the equity market, do you see any risk to this explosion Michael Burry one of the sellers of the wig short and everything he says he believes its a passive bubble ending in tears i think that we have to look at the fact that the Public Markets today still have a wide variety of participants. Youve got every day retail. Youve got very advanced retail. Youve got the mutual fund world, the Institutional Investors and the types of vehicles that they can trade in or invest in are both the underlying etfs options and futures. Its a very rebouft market process but the level of aum into into coming in the etfs and passive funds are definitely theres been a real trend there. The question is do we continue to have the right balance of active and passive and can we continue to make sure that there is the ability to arbitrage against any sort of what i would say herd mentality that might exist and making sure that people can express themselves in terms of having an opinion like you guys do every day, about how which stocks are really the right ones to get into or which strategies are the right ones to get into, which funds are the right ones to ge and so apersonally believe we are we are a very in place. You have a lot of levers in place just by the variety of the participation. Real quick, one quick question esg is the raws rage you guys and gals made acquisition earlier this month can you speak what you are doing to make sure the you are esg friendly for lack of better phrase. Nasdaq itself we have been working hard to make sure we manage our cashin footprint. Now net neutral. Carbon zero in terms of our costs and employees costs. But the same time we have a great opportunity to partner with companies all over the world to help them manage how they report esg, do it efficientlily effectively. Make sure investors understand them and thats what the acquisition was, is its a great reporting tool you report in your information once you can propagate it to the metrics providers and the investors. And make it so everyone understands how they are managing to changes and progressing in the esg area. Let me can you, a lot of candidates talking about a transaction tax. And what would that do to your business would that really put pressure on trading well, transaction taxes have been attempted in the past in europe you can look at the affect they had. I would say they werent successful and most of the country actually all of the countries backed away from that because it did impact liquidity and participation in the market. And so one of the great rate assets of our country are Capital Markets and robustness of Capital Markets and the variety of participation as we talked about so you want make sure you maintain that and that you have an ability to have liquid access to capital all the time. And i do think a transaction tax as we know will put essentially some sort of barrier there and our personally belief is thats not the right place to put put put a burden on the taxpayers. I think that it would be and you can look at examples where it hasnt been successful in the past. When you read that the New York Stock Exchange was going after ebay did you spit out your coffee fall out of your kmar what did you think did you think . What, what. I didnt have that kind of reaction i think that i think that its really interesting to think about different marketplaces we with be nasdaq look at it as a Technology Provider. So how can we enable you know consumer marketplaces to be more efficient, to be able to make it so they can create new market models, run auctions differently . Nasdaq as a Technology Provider could be a Technology Partner to a lot of different industry verticals including consumer marketplaces what they wanted to do to own ebay thats a different population. You can buy stocks and use socks on the same exchange. You could. dina ceo ft. Nasdaq. Stock up 31 this year appreciate your time and thanks for letting ologies apologized to all the people for us bothering them. They love it. Never had a crowd like this here except for when guy brings in the dell barton lacrosse team. The randos on the street. Thank you very much. Thanks. All right everybody can breathe a sigh of relief its fine a new biggest bull on nvidia nothing to do with crypto. Seemingly unstoppable stocks, tesla on a tear but why today . Whats new anything by the way you can always watch or listen live on the go from anywhere on the app d you havent downloaded it can bean, download it today. Back after this. Announcer the cnbc Program Sponsored by invesko qqq you got to accenttchuate the positive eliminate the negative slow it down a little and latch on to the affirmative its okay but dont mess with mister inbetween wheneveryone is different. A, which is why Xfinity Mobile created a different kind of wireless network. One that saves you money by letting you design your own data giving you more choice and control compared to other top wireless carriers. Now you can choose unlimited, shared data, or mix lines of each and switch any line, anytime. No one else lets you do that. Design your own data with Xfinity Mobile. Its wireless reimagined. Simple. Easy. Awesome. All right welcome back to fast money. There is a brandnew nvidia biggest bull on the street your call of the day bernstein slapping the outperform rating on a so 360 target on nvidia, saying a cryptofree gaming profile and new graphics card products cycle can push the stock higher. The new price target highest on the street implies 15 upside. Dan nathan, two questions. Is the chip rally Getting Started . And if so could nvidia lead theway i. 15 could be there tomorrow sully. This is an analyst been on the right side of the trade and working his estimates up you know, listen a lot of things that crypto is so 17. If you think about it. But from 2016 to the highs in the 2018 nvidia rallied 1,000 then cut in half in 2018 now its up more than 10 oh making new alltime highs. So, you know, this is where one where investors have short memories this is not one i think you want to buy on this sort of breakout here its trading at a rm reasonable multiple if you tetrahydrocannibols a and autonomy and maybe crypto, if tom lee is right and you haveo at 20,000 this will be at 400. Certainly nvidia has been a poster child for momentum in the chip space but looking at fisk alq4 they put up in terms of data center up 43 a billiondollar business and the expecta