One of the hottest stocks in the market, General Motors dives in and the ceo will join us in just a moment power lunch starts right now welcome to power lunch. Im dominic chu. One bright spot is the Housing Market you have restoration hardware, williams sonoma, theyre jumping and then you have trex, which makes decking and railingtype products for homes and two Retail Stocks hitting new highs, will brands a the a 52week high, target at an alltime high yet again today after its big blowout Earnings Report yesterday. And, kelly, you mentioned the electric vehicle trades tesla a the at a new high is up 20 in just this past week kelly. All right, dom. The dow sliding today and heading now for a down week. Lets go to bob pisani for the action the markets are still having a hard time to figure out on what to focus. Do you focus on the spring reopening in 2021 and Second Quarter or on the covid winter right now . Today a little more focus on the covid winter the good news is tech which has been a little wobbly this week is holding on. Its not lets ignore tech on a day were worried about covid. Facebook is kind of flat but most of these stocks have been flat this week, which is an okay performance given how far theyve come same this evening with the workfromhome companies, slacks had a good week and zoom has had a good week. Thematic tech etfs young people love buying these in packages. The Cloud Computing with wcld, ark innovation, the big investment in tesla, shes been a big success this year, and social media, socl, the one on the bottom people buy thematically these days huge volumes and creations of these etfs throughout the year and its happening this year tremendous volume in anything value related, Small Cap Value etfs getting tremendous value. Nobodys cared about that for years. Suddenly theres real momentum behind these i dont know how long its going to last. This is the first time in a long time ive seen real active trading in some of these value etfs thank you, bob. Despite all the head winds heading into the year, our next guest is raising his 20 price target for the s p 500 to 3800 from 2850. Tom, i wonder, if theres any time in your professional history that seems like this is today. I cant think of one during mine well, i started off in 93, so i experienced seven years of a bull market that morphed into i think stock pes are really cheap against equity risk premium and theyre super cheap against bonds. I think theres a feeling because stocks moved so much since march theyre topping. We have to keep in mind we went through the biggest stress test for stocks in five lifetimes and they survived. I think that really argues pes are going to expand pretty dramatically in a couple years my real question or issue is i remember the dotcom boom, i remember the mortgage crisis and the recoveries from both of them none of them are like a pandemic where a market is, again, at record highs how exactly do investors navigate this knowing full well were not through the worst of covid19 but put markets at record highs yeah, i think the reason markets manage to get to here, which is record highs, is because 76 of the s p is a growth i decndex, which means is not that economically sensitive. And, in fact, they benefited from stay at home because these are category killer, dictionary killer stocks like facebook, google, amazon but it not like the economy did well i think just those things going back to their old highs is 200 points in the s p. Tom, its kelly here. One of the things supporting that 7 call as you outline is that you talk about how the covid19 third wave could be slowing. Without delving into the science there right now, what happens if it reaction sell ratcelerates . Wave three is a huge wave across the country every state is being engulfed by covid. I dont think people should think they arent witnessing in their on back yard the worst six states, wisconsin, illinois and texas lk liook like that are rolling over. That might be the part good news the bad news is it doesnt mean cases can erupt in the east coast, new york, massachusetts, connecticut have been kind of largely spared in this wave. If it gets bad, wave three is going to grow. So were somewhat optimistic that theres some signs its rolling over in the signs that get hit really early in wave three but it doesnt mean its over one more question, tom, about the election irregularities were continuing to hear a lot about. Does that at some point morph into a front burner concern . Right now markets have been marching along, more or less ignoring those issues and focusing on a Biden Administration and what it knows about the senate at this point does the election become a big are problem . In the short term it certainly would. I dont think anybody would say that 2021 would be worse if trump is president , and i dont think anybody would say the markets would go down if bidens president in 2021. So i think its really the uncertainty and the repositioning people would do around that. So i think people need to watch it closely i dont think the market needs to price it in because its not a central outcome yet, but of course its a tail risk. Tom, before we let you go, a 7 move from here into year end implies that the leadership of the s p will be with the biggest cap companies. Is that still your thesis or does the rally broaden out to other value sectors as well . I think that the hand of the market is going to be revealed this week. Weve had the s p really trade lower for ten days weve made a new high ten days ago, yet the epiaccecenter and e stocks have advanced a lot my guess is between now and december 31, the rotation is going to be into these economy reopening epicenter trades out of the utilities i think the mega cap, growth faang will track the market but if you want to perform it will be through the epicenter thank you very much we appreciate it kelly. Dom, thank you. The cdc today saying it strongly recommends people not travel for thanksgiving this year lets go to meg for the latest this was one of the rare briefings weve gotten from the cdc and they used the opportunity to try to warm people before the thanksgiving holiday. In addition in recommending against travel completely, if people do decide to travel, they want them to do that as safely as possible, wear a mask, distance, wash your hands. They say theres reason to hope with the vaccine on the horizon but its not here yet. Weve looked back to see the pace of the brieflyiings, they r holding them a few times a week, 7 in january, 7 in february and down to three in march and own sporadically over the rest in the spring and summer, we had one last month. They did say they plan to start communicating more regularly thats what Health Reporters expect in a middle of a Health Imagine to hear front and center from the cdc one could argue the covid White House Task force started to take over critics would argue it is not the same level of information as you get from the cdc now, we talked about that vaccine, it not being here yet we did get some new data overnight from astrazeneca in oxford this is phase two trial data this is not the efficacy studies from pfizer and moderna. And they saw side effects less common in people over age 56 this vaccine was halted as they investigated some safety signals in the trial kelly and dom, back offer to you. Meg, what about the latest case counts . We were just talking a little about with tom lee about this. What do we know . Theyre bad were more nthan 150,000 new casing every day on the seven day da daily average the numbers of people dying every day is increasing as well, up now to 1,800 yesterday. Thats the highest level weve seen since may and people are really worried about travel over thanksgiving, putting people in the hospital around christmas so thats why youre seeing this recommendation from the cdc today. Yup all right, meg, thank you. Kelly, coming up on the show, tesla hitting a record high as the ev stocks are on a tear and General Motors wants to be taken a serious competitor in that industry president mark royce joins us now with their latest push into the electric game. Plus hotel stocks like marriott and hyatt both down more than 20 so far this year and the American Hotel association out with a very stark warning, more than 70 will close in the next six months without some kind of federal assistance weve got those details. Much more coming up ahead on power lunch keep it right here we love the new apartment. The Natural Light is amazing. Hardwood floors. There is a bit of a clogging problem. clog dancing at least geico makes it easy to bundle our renters and car insurance. Yeah, helping us save us even more. For bundling made easy, go to geico. Com welcome back shares of tesla hitting another alltime high today. The stock up 500 this year. Its nothing compared with nio up 1,100 . Lets get details of todays announcement from our own phil lebeau hi, kelly this is a big investment General Motors is making a and a big commitment to do more in regard to electric vehicles it was plan on insisting 20 by 2025 now theyre saying add on another seven. They will cut the ev battery pack costs by 60 . Thats a huge goal by mid decade and selling 1 million evs worldwide by the middle of the decade General Motors cut in Development Costs with the battery pack, thats a huge deal so is the commitment for cutting the Development Plan for the vehicles look at the gmc hummer, electric Sport Utility truck on the way in 2022. Gm said we cut the time for developing of this vehicle and other evs and well continue cutting them in half they need to move quickly. When it comes to ev sales, they lag the competitors. Here in the United States, this is yeartodate u. S. Sales, no comparison here. Tesla sells four out of five, gm a very distant second here in the u. S. Lets bring in mark royce, the president of General Motors. He is joining us from the companys tech center in warren, michigan you know the reality of whats going on when it comes to electric vehicles. Youve made big commentments in the past, and you are miki maki commitments now. What has General Motors saying its not enough, we got to do more good afternoon, phil. Thanks for having me today is a further demonstration of our commitment and acceleration to electric vehicles this isnt something that, you know, weve been on for a month or two weve been on it for a year and a half, two years and we really took a step back and said that we are going to have a vision of 000. So zero emissions, zero congestion and thats a big deal for us that commitment is manifesting itself in the way we have brought our battery chemistry and manufacturing, our joint venture with lg and our pack itself and then the vehicles these are all new platforms, dedicated platforms, very different from in the past with vehicles like the volt or the bolt that weve done in more recent history this is a dedicated platform and propulsion system. When we get over the first hurdle, we can see we can cut that in half because were doing it ourselves. The speed and agility is there for us and the commitment is there. On paper nothing is arguing this doesnt make sense that, General Motors doesnt haves the assets and will to do better but you know, youve been talk about this and laying the groundwork for some time why should people believe that gm truly has the horses to catch up and pass tesla . If you look at the synergy that we have across the country, we make combustion engines you look at our launches oaf the la over the last few years and they look very, very good. That industrial might and fight is something were bringing in the space. I dont think anyone will be able to do what were doing. Theres people, including some of our competitors and that vertical integration into the cell and pack production theres nothing like product and so for each product that we bring out and the commitment behind that and the scale and the manufacturing, were going to have to show people and we will. And doing what we say were going to do is everything and we will do that mark, its kelly here theres been a lot of speck l s speculation about gm spinning out its electric Vehicle Business does todays announcement take that off the table nothings forever we looked at the synergies we have throughout the manufacturing and the engineering and r d pieces of General Motors, those are across internal combustion engines and electric vehicles. That scale in mess and we announced we were going to hire 3,000 more Software Engineers we have today that that synergy which comes with putting something into a separate unit, that energy can be very costly on a and we have to get to the point where our battery chemistries have made a big leap from 60 of the cost. Theres more to come on that and weve got a clear road map to do it that doesnt come from some different place, finding it out and trying to execute it the sin were ynergy and amount y are critically important the business changes, the market changes but for now that synergy is incredibly important to go as fast on things that we can on things like hummer and were bringing the cadillac lyric ahead nine months. These are big, important things and creating the disc synergy is something were just not prepared to do we studied it, oo and our Human Resource expertise we have in General Motors i believe is a real competitive advantage our people are the best. Youve been with gm since the mid 80s. Youve seen this company go through a lot of changes you know how long it takes to develop a new vehicles generally speaking a little over four years and thats if everything goes well what gives you the confidence to say we can do this in half that time we can develop an ev in two years as opposed to four years i think if you look at our recent launches, in many cases theyre quite a bit less than four years, phil weve been taking time out of that for quite a while now if you look at the tool celts, the simulation, the crash models, those are a very highly developed place. The simulation of Battery Power density propulsion, anything that we do that touches a car and the ability to engineer, validate and then finally make a physical property, weve honed that over the years. So that expertise, we know exactly what we can and cant do and where we can go to production tools with our supply base right out box in terms of the math we create for Something Like a hummer and lyric and go right to production tools and, cute t execute. The only thing left is few physical properties for our engineers. I have a lot of confidence, ive done a lot of car programs ive been here for i think up said maybe too long but a long time and i have all the confidence in the world. Mark royce, president of General Motors i know youve got the hummer behind you someday well get a chance once we get past all this pandemic stuff to get in the hummer i want to try out the crab walk in that vehicle. Thank you for joining us kelly, no doubt this is a very ambitious plan General Motors has laid out today now can they deliver on what they laid out today . Thats the big question. The devils are in the details. And our own phil lebeau, thank you as well. Gold do you more than 10 from its record high we saw pack in august citigroup is out with a new call saying a move back about 2,000 is inevitable. But dpo the charts agree plus, Indoor Dining set to close in new york as restaurants across the country brace for a very bleak winter. We have the telast details more pour evwer lunch after t break. Oh. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now youre binge learning. See how you can become a smarter investor with a personalized education from td ameritrade. Visit tdameritrade. Com learn aflac now tell me, what does aflac do . August break. With unexpected medical bills. And is Aflac Health Insurance . No, but it can help with expenses Health Insurance doesnt cover thats right. Are there any questions . Coach yes . Can i get one of those cool blue blazers . You know i cant play favorites. Alright lets talk coverage. Its go time get help with expenses Health Insurance doesnt cover. August break. Mmm hmm get to know us at aflac. Com 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. Welcome back to power lunch. Gold is down 10 since its august peak. Citiis o is out with a bullish. This part of a secular trend for the metal, high as 2,700 at citi your trading nation team is here to debate that today mark, ill begin with you. Where are you on gold . So, kelly, weve seen some nearterm consolidation since the beginning of august. That did directly correlatewit yields starting to bottom out. When you see yield rates rise, you do see gold start to sell off. In this case we saw a little bounce in the dollar and rates rising so gold sold off my thinking is we can get under 1850, see further consolidation and weakness in december so near term i think its still right to avoid buying dips too aggressively intermediate term basis the stocks look compelling we moved from august of 18 into august of this past year and the weekly trend still looks quite bullish and one would want to really buy into any sort of pullback we see over the next month. Im looking at 100 lower, 1560 as being a very attractive area to buy gold and that should coincide with the gold rolling over and be an excellent time to buy dips and holding on pore foe tensi for potentially highs next your. We dont agree. We think it stopped. Gold used to be a hedge a