Microsoft both helps to lead higher the vaccine for 1. 5 billion, a top analyst will tell us what it could mean for that stock. Power lunch starts right now bob pit sannist is watching them tlim toward new reports theyre trannen bond yeels, a very, very heavy week of auctions bob, lets start with you. Were not doing it in the way we thought, weve been having this rotation go on, not really happen today its largely tech. Remember on you banks, energy, stocks, industrials have been leading recently health carele lagged a bit russell 2000 is not doing much here, either qualcomm and broadcom with new highs. Apple is not far from a new high its not just tech, there are some consumer names consistently holding up kimberlyclark, for example, colgate, target, lowes, but dont kid yourself this is still tech driven. All of the big regional banks are down 2 , 3 or 4 . We did it yesterday we are not far from that, folks the intraday high, just 3393 well see what the final hour does to the market today rick is tracking the action for us rick yes, bill, as you look as an intraday chart inflates was pretty hot, and we made our yield highs right on the data at 8 30 eastern it has slipped ever since. Those that stepped up for the record size 38 billion action, theyre looking pretty good, at least at the moment. That could have been the as they hovered around 44 basis points the difference between our yields and their yields is starting to grow a bit remember, its supposed to go up, but that isnt necessarily the case sometimes trading logistics and position trump whats going on with fundamental economics maybe look for more slippage in some of those gold and silver charts melissa lee, back to you. Thank you, rick santelli. Will you keep buying tech or will there be a reckoning . Lori and kirk, thank you for being here good to see you both kirk, ill start with you. In the past couple days, we had a taste of what a rotation could feel like, look like, do you not buy the notion were due for this sort of rotation out of the higherflying stocks, into the more cyclical stocks its hard to argue that the megacap stocks are not overvalue ed but its interesting a number of clients are asking you to continue to own growth but in terms of individual investors, like the qqq, which are up 20 off the table, and cut back a bit, i think that makes some sense. What is the biggest risk, kirk, in the eyes of the Institutional Investors . Better vaccine news, i would presume, would really put some fuel under the fire of the rotation that could happen. Well, no question about it. I think the biggest risk is what i call a moderna winner, meaning weve been through the virus in good weather where you can dine outside, exercise outside. My big concern Institutional Investors as well is in the fall and the winter hopefully theres a vaccine thats widely distributed and works, but thats the big risk to the market. Lori, youre a bit more cautious you see risks around the election you know, just to touch on what kirk had said, technology, why do you think that technology is overvalued at this point when Interest Rates are so low . Look, we see it on the p. E. Multiples. Or institutions when we back up and look at the broader mark, we see massive concerns for the market as a whole. We are start basically we are ripe for news, and its one of those possibilities. We are frankly worried that the expectations are way too high. The valuation is at the core of it. A biden win in and of itself is that a risk total market . I think its more of the blue if you look at analysts theyre expecting the senate to flip if you look at the statebystate data or betting market data, were starting to see the battleground states really go infavor of both biden, and then youre starting to see some concerns about the senate flipping and the mainstream political commentary thats out there we dont think investors are prepared, but there sure are a lot of concerns about what biden wants to do and some things that could rattle investors if the senate flip, those things could become a reality kirk, how do you view it . The thing that im curious about, will a Biden Administration be more favorable in terms of china and world trade and less tariffs, which i think could be good for the economy, so i think its mixed i think the key is the senate. The senate is going to control, you know, taxes, tax policy, and a lot of those things, so i think it will be interesting to watch. All right thank you very much for your thoughts speaking of the election, wall street executives, a handful, at least, have been cheering joe bidens pick of m Kamala Harris. Brian, good to see you good to see you you canvassed a handful of wall street executives after he announced Kamala Harris as his running mate what did you find . We found out they were very happy to see her get the nod we know people at global, an advisory form. As soon as she was announced, they sent out a memo to their clients that there really should not be any wore Going Forward about joe biden or his potential administration going too far to the left that sentiment was resonating from the people we spoke to who work at hedge funds, private equity firms, lawyers who are on the corporate side, and some bankers, who also see this pick as something that were basically proves that biden will not shift too far to the left in what they see as progressive policies, and shes going to be key to raise ago lot of money for joe biden as we get to the final stretch with just under 90 days. We talked about this last hour lets face it if biden wins, hes going to inherit a huge budget deficit, much larger debt because of the money thats being spent on covid one way that you fix that is by raising taxes. Even biden has been talking about that at some point you know, he may be a centrist, a moderate and stay there with Kamala Harris, but hell have to do something fiscally, and wall street cant be happy about that i dont think theyre thrilled that taxes will go up. You know, i think even those who would consider themselves, i think this also come down to right now at the immediate time, they just dont really want to see trump in the white house anymore. They have done well with their Business Model, you know, again people in the financial sector, as you know, have done well with donald trump they dont see this in the wake of covid that trump really is the right leader to bring there is talk on wall street about this idea that their taxes in all like ly to see donald trump no longer be president as melissa just said, the trade maybe be a wild card, that might be more favorable to some companies here in the United StatesElizabeth Warren is not vp, but theres a lot of talk that she could be chosen as treasury secretary. Could chef some sort of role in the white house how about markets respond to that is another big question mark as we move toward november. 83 days until november 3rd. A lot of time left brian schwartz, thanks see you later. Coming up, the race for coronavirus veeck vaccine is on as the u. S. Has now spent 9 billion on potential treatments and research a top analyst will tell us which company he thinking will come out on top some of the caribbean islands are in dire financial straits, but 14 have now opened their doors to the u. S the Prime Minister of st. Lucia will be here to explain how he is jgluging the travel rink and reward much more power lunch after this break i am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. Now you can trade stocks and etfs for any amount you choose instead of buying by the share. All with no commissions. Stocks by the slice from fidelity. Get your slice today. Stocks by the slice from fidelity. Its totally not the same without you. Were finally back and cant wait until you are too. Universal orlando resort. Buy now and get two days free at the parks. Restrictions apply. You may have heard the government has reached a deal with moderna to buy 100 million doses of the vaccine whenever its developed that stock popped on the news initially, but then lost most of those gains. Meg has more that agreement, about 1. 5 billion, that implies a so this whole story is about expectations if compare that price per dose, its pretty well in line. , but, of course, hasnt taken any new develop. Moderna has gotten an almost additional 1 billion beyond this contract. Importantly last week they set sort of expectations of the price of this vaccine, saying it would instrument small volume deals. Of course, 15 is a lot less than that. And putting out a note today, saying theres negative implications here. We should note, though, that moderna stock is up year to date so its already had a huge run on these prospects the mel . And they were expecting so a dispoint on the price per dose a raid for covid has a lot of competition. From an investors standpoint, which is the best chance for succeed . With us is michael yee always great to speak with you which candidates look most promising . Well, were putting our bets behind moderna as one in the near term, were telling people october or november, you will hear about it being positive we do think the pfizer at the data will be positive as early as september we could see that announcement if that happens all i think all these stocks pop to be clear, the novavax data had strong data, potentially best in class, a few months delayed. Was there disappointment whether it comes to the pricing or the implied pricing of the moderna pricing . I think we look at it in two ways one is that whether its 15 a dose or if you include all of the funding thats been going on the last few months, they got a billion just before this its 25 a dose, so it depends on how you calculate that out. I think all of that is generally in line with where people are thinking whether its a couple dollars or not. I think in the Bigger Picture, there is important point, one, of course theres a lot of other countries still out there for all these companies to go after. Moderna did have 400 million in orders from other countries already in july. Importantly we should ask ourselves, will we have this disease with us each year, and do people want a vaccine each year and have protection if thats the case, is this more than just a onetime stockpile order. So it sounds like you have questions as to how long this idea of a vaccine will keep contributing to moderna or any of the these Companies Bottom lines. Are we even clear at lets just say even on small batches, is moderna actually going to make money . If you just look at what theyre being paid for per dose on the vaccine side yeah. I think that in the idea of are they going to make a lot of money, the cost of goods for the actual vial, the glass, the actual product, is fairly small. There is modest profit here, and thats both with what pfizer has said, right there at 20 a dose. They say they are making some profit, and moderna as well make some profit. I think the Bigger Picture beyond the profits and the 30 billion market cap, is really about whether both for pfizer and beyondtech and moderna, are there other vaccines, other programs, other pipelines beyond it that well hear about if 100 Million People took your drug uhoh. I think were having and i had a burning question. Are we going to get him back there are so Many Companies that are developing vaccines right now. Lets siem all of them come to market how do we side which vaccine how is that competition going to work how its going to be distributed, i think, is a big question obviously there wont be enough vaccine produced to inoculate the entire population. But from an investor standpoint will this be money made year after year and very key is the international play as well our thank to michael yee of. The gold run taking a breather a top technician seems something in the charts that spells even more pain ahead. Plus uber says the ridesharing giant may have to temporarily shut down business in california as it fights that states bolauilar wst. Weve got those details and much more power lunch after this quick break. You may be learning about, medicare and supplemental insurance. Medicare is great, but it doesnt cover everything. Only about 80 of your part b medicare costs. A Medicare SupplementInsurance Plan may help cover some of the rest. Learn how an aarp Medicare SupplementInsurance Plan, insured by Unitedhealthcare Insurance Company might be the right choice for you. A free decision guide is a great place to start. Call today to request yours. So what makes an aarp Medicare Supplement plan unique . These are the only Medicare Supplement plans endorsed by aarp because they meet aarps high standards of quality and service. Youre also getting the great features that any Medicare Supplement plan provides. You may choose any doctor that accepts medicare patients. You can even visit a specialist. With this type of plan there are no networks or referrals needed. Also, a Medicare Supplement plan. Goes with you when you travel anywhere in the u. S. Call today for a free guide. Welcome back to power lunch. Pretty touch week for the precious metals, as they reverse course gold slightly recovering while silver dips after 10 decline yet. What exactly is going on in this space . Does it present an opportunity matt malley and michael will be talking fundamentals its your trading nation team today. Maybe more pain ahead, matt . I think so. Ive been very bullish on gold all year, but last week, we just saw some signals that tells you even though its longterm fundamental picture looks intact, times you see a reversal you look at silver, it got to the most extreme level since 2011 the rsi chart on gold got to the most extreme level and it measures bullishness among futures traders, and it got to 93 bulls last week so we just have these extremes that everything is on one side of the boat and have nowhere to go butt lower. It takes more than just a few days to work off i think youll get a 50 retracement, and silver i dont think will retrace quite as much, but i think it pulse back 24 before you still back up. I like it longer term, but theres some shortterm movement to work off. Michael fundamentally, i think its going to take a pause for a few different reasons. I understand its become the best performing sectors this were, but a lot of that was forced by the macro environment. Not only is it a regular, but the inflation adjusted place is off the charts as well we would look on other alternatives, who will limit the volatility and not correlated to the rest of the markets, but if you must own something in the strategy, so you feel like you dont miss out, the gold miners is probably the best way to play this space for the near future theyre mining, doing other diversified in the spate i just think the actual gold and silver has just run up too far too fast for no real fundamental reason very good good to see you both thank you for joining us today for more trading nation head to our website our follow us on twitter. Ahead on power lunch, caribbean nations opening their doors to american tourists despite the risk of spreading covid. Why . Because not doing so could crush their economies. We will explain. Plus a movie night rewind. The last blockbuster in the entire world could be available for you to rent for a sleepover. Well have the details and lyft reports after the bell what new regulations mean for the stock. All of this when power lunch returns. Stock slices. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. An army family who is always at the ready. So when they got a little surprise. Two . They didnt panic. They got a bigger car for their soontobebigger family. After shopping around for insurance, they called usaa who helped find the right coverage for them and even some muchneeded savings. That was the easy part. Usaa insurance is made the way liz and mike need it easy. Usputs its customersde the waa wiin charge . Rierd it well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with xfinity mobile. Call, click or visit a store today. The budget deficit of the federal government falling in july, but adding 63 billion about half of what it was last july and below most estimates. Saving from tax date from april to july, however the deficit is at a record 2. 8 trillion, expected to approach 4 trillion by the end of the fiscal year in september. The big 12 conference will play sports. Its been announced with each school playing, and an open date for a tenth game against an opponent outside the conference. The first game will be played on september 26th in florida, a man has arrested for living in a stadium luxury suite for nearly two weeks. Hes also accused of helping himself to food and merchandise. He was caught after a cleaning crew found blanket, a raider and shaving cream in one of the suites i havent heard much about whether he with netflix or other streaming. I wonder if he called for room service or something. How did they get that food is my question . Why would you shave does anybody have that question . Why shave in youre hiding out in the stadium in thats the outstanding question im disappointed you didnt point it out. Some people have standards, you know. Apparently. Youre squatting in the stadium, youre going to shave, look good. Maybe taking selfies or doing zoom calls either way, he was definitely socially distancing. And he looked great in the perp photo thank you, leslie. Thank you. To the markets weve a pretty good day up and down, but back up again. The s p just points away from alltime highs the nasdaq is up more than 2 , so technology is back with us in the mix today. Meantime, the oil market closing near its highest level since march. To dominic chu. Im trying to remember if i shaved this morning. Yeah, i did. Well, closing out today with the