Amd to buy xylinx. Is there more room to run on amd . Well explore that one when power lunch begins right now earnings season is supposed to be a report card for companies. Lets go to bob pisani for more on this lack of guidance bob . Kelly, once again, the Fourth Quarter, another quarter with the lack of guidance its a bit of a problem because the analysts again having a hard time figuring out what the right numbers are. Remember, the earnings numbers have been coming in very well, generally weathering but again, big companies, no guidance from caterpillar, 3m, xerox, Stanley Black and decker. Others like Harley Davidson didnt give guidance either. Raytheon, corning. No guidance from companies. Analysts have a tougher time and theyve been very conservative and wrong so far fortunately wrong on the conservative side. Look at all these companies out there. 83 are beating for the Third Quarter and theyve been beating by almost 20 . Its an amazing beat and shows you the analysts have been way, way too conservative look the cummings today, they make truck parts, truck engines all over the world they had numbers no analysts had. They were 40 above the consensus numbers. Amazing blowout numbers but the stock is barely moving thats the problem were having so far were almost halfway through earnings season. Not translating into big price gains. Thats a problem remember, weve all got that stimulus vaccine and election issues that are completely messing up the analysts ability to figure out what the right prices are on top of no guidance back to you. Thank you very much, bob. How do you navigate a market with less Company Guidance in an election a week away, uncertainty around the path of a pandemic lets find some answers from m Samantha Azzarello also wonder, what are analysts good to if theyre actually so far off with their estimates well, i mean, i think in this environment the lannists probably are relying a little bit more on their models and inputting economic numbers which really have been all over the place. So lets cut them a little bit of slack one thing we do at Asset Management is we do natural language processing. Well check the underlying sentiment within a great deal of earnings outlet calls or transcripts. Through those sentiments and tracking the changes in the language, we can actually get an idea of where things are heading on a top down level. Samantha, i asked that question to evan to be a little provocative and frankly be a little bit of a smart ass. But be that as it may, i am struck by the fact that the predictability of Company Earnings is so difficult right now because those companies dont know what the futures going to hold. So how can you as a portfolio strategist, as a guider of people putting money to work or putting money to work yourself, how can you make decisions about where to go . I mean, its a fantastic point. Were not even remotely out of the fog. I remember when we werent Getting Company corporate guidance and then we started to get some and we thought that would be like harking back to the way things were before and now were looking again and youre right, were not getting guidance and i would just add consensus estimates improve a massive amount between q2 to q3. But i dont blame the analysts if were looking at how much the picture is changing, theres so much uncertainty i guess when i look around, theres a lack of stability in the data thats translating to a lack of conviction. Were sticking to the plan until we know more i think a waitandsee approach is good until we know more three years from now will it be uncertain or will i be happy that i followed your advice, stayed the course and made some marginal trims in my portfolio am i going to be happy in three years . So, i dont think we need to necessarily wait three years theres always reasons so not invest and stay on the sidelines and events that emanate uncertainty. Were not advocating for waiting it to be totally clear but i think were all in agreement, were in the second phase of the recovery theres a lot of muddling. Were kind of meandering right now. We need a vaccine and then we need the vaccine to be widely distributed. Once we get those two things and arguably all the data suggests that will happen at some point next year, then i think we can feel more comfortable knowing that, yes, things have changed because of covid but we can go forward with more clarity. In the meantime, asset allocation, diversification, maybe we want to have growth and make sure were picking you on some of the cheaper names. All those tweets we can do otherwise we do want to stick to a diversified portfolio. Thats how we get our clients in terms of meeting our financial goals. You say a blue wave outcome, evan, would be the most positive for markets in the near term because it the one outcome that guarantees sufficient fiscal report later in the new year, a blue wave becomes yet a head wind for u. S. Stocks because of the prospect for higher taxes. I think thats right. In the current environment what we need is to make sure that the economy has enough stability to it and the blue wave really is the only one, the only outcome where you know youre going to get that necessary fiscal support. But investors who fall in love with the blue way outcome may come to get a little more cautious as we enter the new year theres an underlying assumption that many investors have that, oh, biden wont raise taxes too much, its too recovery biden and Kamala Harris see this as a moral issue they want to be moving in the direction of redistribution. We could very well be looking to the taxes being hiked as planned across both corporates, highincome individual, Capital Gains taxes. That doesnt speak to divesting from the market but that speaks to making sure youre adequately diversified between the u. S. And international markets. Sloks you have that international exposure, youre not as exposed to the tax risks and still play the broader cyclical recovery. You used a word if biden does prevail, and i think it will be a lot and its redistribution. But redistribution by another name is simply the graduated income tax basically but thats how the money gets redistributed. Evan brown, thank you very Samantha Azzarello, thank you for your time. We appreciate it kelly. Shares of facebook, twitter and google all higher ahead of tomorrows senate hearings, where their ceos are set to appear virtually ylan has more on what Mark Zuckerberg is going to say ive obtained a copy of the written comments of Mark Zuckerberg he says without section 230, they would perhaps field the risk of constant litigation as they try to remove potentially harmful content as well as misinformation however, he does acknowledge that the debate about section 230 shows that people of all political persuasions are unhappy with the status quo. And he strikes what sounds like a more conciliatory tone saying that i believe congress should update the law to make sure it is working as intended he said he supports ideas around transparency, collaboration and some of the bipartisan proposals and looks forward to meaningful dialogue he said he looks forward to public scrutiny, says i know we will be judged by how we perform in this pivotal time and live up to the trust that people have in the platform there you have the written testimony of ceo Mark Zuckerberg, being more conciliatory, acknowledging there could be changes to section 230 the company my suppo support. How would you compare so far what weve heard from zuckerberg to the approach that jack dorsey is taking . Yeah, dorsey appears to be a little bit more combative here you know, arguing that if section 230 were somehow weakened that it would actually entrench the current players in the marketplace and make it harder for smaller startups to find their footing in a very competitive landscape. So it will be interesting to see the personalities of the ceos at play tomorrow and how they perhaps take different approaches weve seen different approaches in how they moderate the content on their platform, taking down certain items and certain its yells allowi item still stand or stand with restrictions. Theyve taken different strategies within their own companies. Well see how that plays out tomorrow yeah, i wonder how much of it goes back to facebooks size and scale and ability to moderate content if they need to in some kind of new paradigm ylan, thank you. It will be a very interesting day on capitol hill. Oil down as the sector continues to lag a top lanalyst, our fave, will join us. And eli lilly ends its hospitalized drug trials and the latest on the Companies Fighting coronavirus, working on vaccines and more. More power lunch right after this welcome back, everybody. Time for our power rundown we start with the latest coronavirus case counts as the sevenday average in the United States has risen now to a new record meg . Hi, tyler that record is just approaching 70,000 case as day in the u. S. Thats of course higher than the peak we saw oaf tver the summerd the spring its really being driven by cases in the midwest but were searing cases rise in all regions in the country really concerning is hospitalizations are rising, too. There are almost 43,000 americans in the hospital with covid19 and the number of deaths reported each day has started to tick higher as well were now at about a sevenday average of almost 800 daily deaths from covid19 now, theres a lot of talk about were doing more testing, doesnt that mean were just tushing turning up more cases . Well, the test positivity cases is also rising were doing more testing but also picking up more infections so as a country, were up to about 6 or 7 positivity in terms of those testing numbers. Our next topic is earnings from the big drug makers like pfizer, merck or eli lilly which has stopped a test of one of its ant bo antibody drugs for hospitalized patien patients it was a missed for pfizer and mixed. It was a big beat for merck actually analysts in general saying nothing too surprising in any of these quarters youre seeing, essentially maintaining or tightening all of their 2020 outlooks its always interesting to hear how that are looking a the recovery pfizer saying essentially the peak of the impact was not as severe as they feared but the recovery has been slower one really interesting thing about listening to all these Conference Calls today, the thing nobody was really asking about, the election. Four years ago all you heard about was people being afraid that Hillary Clinton was going to come in and lower drug pricesthis yeprice prices this year the election is not even on the radar. Maybe because all these companies are working on Covid Vaccine and drugs. We come back to eli lilly and its trial of an antibody treatment hattlted whats the news there . Last night the nih and eli lilly saying it looked like it wasnt going to work for the patients this trial had been paused a couple weeks ago and this is just the conclusion of that. Elie lilly says it is hopeful the drug will still be useful earlier in the course of the disease. Thats an update on the drug front. And over on the vaks vaccine sw got an update from pfizer. We are not seeing results yet, we may see them soon butly wel before the election. There had been so much talk about election day and vaccine results. Probably not before november 3rd, ty. Thank you very much kelly. Lets bring in aletha young, an analyst at kanter fit gerazg. Whats the most important takeaway for investors i think the most important takeaway is theres not going to be a one size fits all to a covid treatment. And antiretro vie wa retrretros its going to take all different kinds of therapies for herd immunity if youre investing, theres a lot of people, i actually get asked pretty often from people about the vaccine stocks and whether theyre attractive again, i never know what to say on anything like that. But in this particular case, for all the people who are interested in saying, okay, how do i invest, what do i do if i want to get in on this vaccine trend thats coming, i mean, what do you do now some of these stocks have had massive runups this year, the smaller, more speculative ones but what do you do now i think you can look at some of the ones that arent vaccine like a gilead and regeneron. When you look at regeneron or gilead, its still a broadbased business story but the facts are gilead probably we estimate could sell a billion dollars this quarter of remdesivir and regeneron is approved for emergency use, that could be a dig driver for earnings. We dont know sustainability and how long covid revenues will last but feels like this situation is going on far longer than we expected it might be a boost for the next year or two. Thats interesting. So if people are realizing that there isnt going to be this kind of magic pill vaccine coming in the next few weeks and were flipping a switch in a different paradigm, if the reality is settling in it could be another year or two where we need these treatments as basically a primary way of dealing with the disease, then all of a sudden regeneron and gilead are potentially more attractive stocks . I would agree i think so the things we wrestle with are should we model 3 million for the next ten years or one year or three years i think, you know, the sentiment overall is this is a protracted fight were having in 2019 and were not going to be done with it in 2020 and 2021 and 2022 there could be further treatment and stockpilingi dont think it its going to be a one and done. Its going to take a while to thread the needing on 320 million americans. Its too bad. Theres other companies in the mix, eli lilly, astrazeneca, are those other that people should look at here i think all of them i dont cover them directly. The Companies First with the vaccine are likely the ones that will benefit with data theres a lot of different methodology about how vaccines are developed. We have to see what data comes out of some of these updates, some of the ones in early, mid november to get a sense of how the market is driven thank you so much thanks for joining us today to walk us through all of those developments tyler . Thanks, kelly still ahead, is the bitcoin boom back well tell you whats driving the crypto currency to its highest level in nearly three years. Plus, amd, one of the best performing stocks over the past year does its deal to buy xylynx solidify its place on top much more coming to you next. Its real very additive to the amd modelfirst of all, it is it immediately accretive upon closing. It brings significant Margin Expansion as well profitability and Free Cash Flow generation, but more importantly than that, we really believe that together we can define the future of highperformance computing amd shares sinking even after the Company Topped estimates on its top and bottom lines and raised fullyear guidance. The trading nation team, jc ohara, mark tepper. A strong Earnings Report from amd, strengthened pc, gaming and data center yet the stock is selling off down 5 . Tell us why. I think its a buying opportunity. First and foremost shareholders are being diluted but for really good reason. Theyre going to have just an absolutely much Better Company if you think about it, amd with this xyzilxilinx we bought it because of its data center, pcs and gaming theres two new gaming stations coming out, a new playstation and xbox and guess whose chips are in there not nvidia amd. I tried to buy one for my son and theyre all sold out now you add in the programmable chip, it gets them into that booming 5g cycle as i said, shareholders are being diluted. Youll be better off because you have an excellent end market your thoughts on how the market is responding to this 35 billion deal and how it compares to other deals in the Chip Semiconductor history . Any time theres a deal, stocks directly involved always experience choppy trading over the short and intermediate term. Often more time is needed for the technical trends to fully emerge i think its a good idea to look back at a relative proceeding deal for potential analog for this situation if you remember back on june 1st of 2015, its not apples to apples, that was an allcash deal versus allstock for amd. In 2016 there was a decent threemonth correction of nearly 25 immediately after that deal was announced. Time was needed to incorporate the new information and reprice intel. In august it was able to resume up trend rallying into 2016. The moral of this is give amd so time so a trend can formally develop. Thank you follow us on twitter kelly, back to you seema, thank you very ahead, is there a risk to the Energy Market heading into this election plus new results from cnbcs allamerican survey. Do voters feel theyre better off since President Donald Trump took office . And microsoft earnings after the bell a top analyst will break down the three most important things to watch, all coming up right after this break announcer and now the latest from trading nation. Cnbc. Com and a word from our sponsor. In a few moments, Rackspace Technology will enter a new and exciting chapter. Across muticloud, apps, data and security, we focus on solving the business problems of our customers with technology we are a type of company the market has not seen before. Going public will further invigorate our mission to embrace technology, empower customers, and deliver the future. Welcome back, everybody, im sue herera a senior white house official reportedly saying medicare will cover the cost of the yet to be approved Coronavirus Vaccine for older americans. The official toll the associated press, the policy change will be announced soon in philadelphia the Police Commissioner says there will be more officers on the streets tonight. This is in anticipation of further unrest following the Police Shooting of a black man on monday. In the english channel, a boat carrying migrants has capsized killing at least four people, two of them children fr