And it is beginning to look a lot like a socially distant christmas as the rock center tree lights up and as we all mask up and get in line. It is thursday, december 3, this is Worldwide Exchange. Good morning, good afternoon or good evening and welcome from wherever in the world that you may be watching. Im Brian Sullivan thanks for joining us. Here is how your money and Global Markets are setting up their day. Futures not giving us a lot of clues. Were pretty much mixed. We had more gains for the s p 500 yesterday. Yes, another record. Your 28th of the year if you are counting at home the nasdaq 100 also hitting a new record today though, we also focus squarely on oil. Opec and its allies meeting today to try to hammer out a deal to extend production cuts through march. They could not get a deal done on monday. Today rush 1sia and other natio join the talks if no deal is made or they reduce the cut instead of extending the entire thing, oil prices and stocks could take a big hit, that meeting kicking off at 8 00 a. M. Our time. Well have more later on in the show and all day here on cnbc. Speaking of us a tree heaus the opec, we saw hang seng rise, shanghai was down, europe is down across the board, but the losses arent that big slight losses in germany, theu and france overall of course, it has been a very strong few months for equities the best november in decades if not 100 years for the s p 500. And the momentum has carried over into this month and Credit Suisse says it is not done yet the firm raising its target price on thes p 500 to 4050 indicating they think that it could rise another 12 in 2021 joining us now is patrick palfrey, senior equity strategist patrick, what are the primary motivations behind that fairly bullish call the real driver behind that bullish call is the fact that were returning to a more normal world. And the goal in trying to figure out where well end 2021 is trying to figure out what the world will look like in 2022 and as we look ahead over the next 12 to 18 months, we see something where covid is hopefully beginning to fade as vaccines get rolled out and we are returning to a more normal environment. The Economic Activity is continuing to move forward, although we are beyond the bounce at that point, we are still continuing to have good economic momentum. And those two ideas should carry equities higher as we once again return to that more normal world that we used to live in. And we will get there, it will be a tough couple months. But weve been talking a lot when the idea of the roaring 21st a2 2 and 22 and i think 2022 could be one of the great consumer led economies in hisser to as we bust out and pent up frustration. But does that necessarily mean stocks will follow because isnt the run were seeing right now pricing so much of that already in well, it is a good question and i think the run that were seeing now is pricing so much of that in for cyclical sectors so right now what were seeing is when we have days where we have positive vaccine news or for example janet yellen nominated for head of treasury secretary, that cyclical rotation is incredibly pronounced leadership is energy in financials, and those are the two groups along with industrials and others that benefit from this positive backdrop but many of those sectors, energy, financials, industrials, materials, are beginning to assume this normalcy into their estimates. And our expectation is actually to see leadership from technology throughout much of the year because in reality, that is where the opportunity is for those companies to continue to grow their businesses the cyclical rotation is already being baked in we would still continue to have people look at Technology Even though they look expensive now, their businesses are just so robust so that is where we think leadership is going to be. If you look at consumer spending, good spending is very high right now as many people remain at home i think that well see a big shift to services spending, you think about restaurants and other forms of entertainment hopefully over the next 12 to 18 months that tends to be less positive for the market because many of those are Small Businesses think of your restaurant on the corner so well see a huge move in consumer spending. Whether or not that is directly impactful to the market i think needs to be seen because services tend to be less equity sensitive. Who cares what the suddenly vans do, but sullivans have already booked a number of trips for next year. And there are other factors at work i understand that covid and the vaccines get all the attention as they should, yesterday really was lifechanging news in many ways but weve got Interest Rates, weve got a potential stimulus package, we have broader fiscal stimulus, maybe an infrastructure bill. How do the financials look to Credit Suisse . Because they have been laggards, they have been a bust and frustrated many investors now for years. Yeah, and i think financials is the one area in that pro cyclical group, financials along with energy, materials, industrial, financials is the one area where you have that opportunity. The Economic Activity has been so powerful, so industrials and materials has really rerated, has really come up higher because activity has been so strong Interest Rates havent risen nearly as much as they should have and we think that they will continue to move higher over the next 12 months and the backdrop will improve. And so that will drive profitability for the Financial Sector and banks specifically. So financials is really your opportunity within that pro cyclical group to continue to find areas where it is going to work and that is where we would encourage investors to look is within financials as opposed to the industrials and materials complexes, which have already really rerated on the back of the optimism around some of the stimulus packages which you just mentioned. Are any sectors of the market that you dislike ones that maybe have made a little bit of money . Like you made the money, sell the stocks, move to somewhere else like the financials defensive sectors and they are typically your utilities, your staples, your reits, those are areas where you have you often own those stocks because you like the dividends yield if Interest Rates continue to move higher, you just have a better relative opportunity within many other sectors in the market and were actually underweight many of those traditionally defensive sectors. So that is where we encourage investors to maybe sell and move into areas like financials or perhaps technology for those people who have a longer time horizon. Overall though, a bullish view of the market s p 4050 by the end of next year, a 12 gain patrick, thank you very much well see you soon when we come back here on Worldwide Exchange, is a stimulus package getting closer . And there may be bipartisan support growing on one plus i have my reservations about taking it yet given the shorts time frame that has been undertaken in terms of testing britain celebrating the vaccine new, but cautiously. But rightfully Julianna Tatelbaum taking to the streets with that news and is google spying on its rks . Woer the feds seem to think so. [ whispering ] whats this . Oh, are we kicking karly out . We live with at t. It was a lapse in judgment. At t, we called this house meeting because you advertise gigspeed internet, but we cant sign up for that here. Yeah, but im just like warming up to those speeds. Youve lived here two years. The personal attacks arent helping, karly. Dont you have like a hot pilates class to get to or something . [ muffled scream ] stop living with at t. Xfinity can deliver gig to the most homes. Welcome back here is a look at some of the other big stories on this thursday vaccines are on the way and they could not get here fast enough because more than 100,000 people in america are currently hospitalized with covid. We reported more than 2700 deaths as a nation yesterday, setting a grim new record. Many countries in europe are seeing similar spikes in cases and hospitalizations on capitol hill, nancy pelosi and Chuck Schumer are endorsing the 908 billion stimulus plan. The two lawmakers are urging Senate Majority leader Mitch Mcconnell to use the bipartisan package as the base for relief talks, but mcconnell quickly shot down the proposal after its release on tuesday standing by his 500 billion plan. Staying with congress, the house has approved a bill that would ban shares of Chinese Companies from u. S. Stock exchanges if they continue to deny regulators access to their audits under the measure, Chinese Companies would have three years to comply with the inspections before a trading prohibition would take effect. The bill now heads to President Trump who is expected to sign off on it. Still on deck here, the potential economic wind fall for the uks progress on the vaccine. Well speak with one Business Owner will what it will mean for her business bottom line. Todays big number 1. 57 trillion that is the total amount of outstanding federal student loans, more than twice its level tial a decade ago according to naon student loan data system ca Academy Sports outdoors started as a tireshop in San Antonio Texas in 1938. Our vision is to be the best sports and outdoornretailer in the country with a mission to provide fun for all through strong assortments, value, experience over the years, weve given customers not just great products, but outstanding experiences. We cant wait to have customers natiwide have fun out there. Welcome back. It is the news that might have just changed the world the uk approving a vaccine yesterday, millions may soon be able to take it and hopefully get their lives back to a semblance of normalcy. Still, it is a big reason to celebrate, albeit a little cause hisly. Julianna tatelbaum has hit the streets of london to find out what people are thinking im not kidding, i got a little emotional inside because i thought we can see the finish line, a ways to go, some people are skept skrepts cal scepticae it what are people saying i think the message from the British Public is that we are optimistic, were hopeful, and we feel relieved that is what i heard when speaking to people last night in a bustling part of Central London we heard from Boris Johnson last night and he praised the scientists, but he urged the public to continue to be cautious it will be a long few months before the bulk of the population is vaccinateded, before even the bulk of the most vulnerable are vaccinated. Take a listen to what members of the public had to say when i asked them how they were feeling. Im just very pleased for everybody. And just doing these christmas tours around and other cab drivers have been doing the same thing just to make some money. Seeing the children obviously from a distance, but nice to see peop people you see a lot of people around, everyone wearing masks, so well done we also have our masks here. But you can feel the joy people are very happy because weve been all very limited. So people clearly happy to have a vision where they can picture a return to normality to some degree. And it is worth mentioning that the big news yesterday came gist as the country emerged from our second full lockdown so our world looks a little bit different today with the retail shops reopen fogts first timer e in several weeks, but still facing heavy restrictions in much of the country. And what does this then mean for Business Owners and restrictions that have impacted their shops . You said that there was a reduction of the lockdowns yesterday, but youre still not out of the woods thats right. So the full National Second lockdown lifted yes, but now we have entered this three tier system where areas of the country have been bucketed into three different groups and the bulk of the company is in the two groups with the most severe restrictions here in london, were in tier two, so right in the middle. Which means that nonessential shops have reopened. We also have hairdressers and gyms reopening but still restrictions on meeting with other house holds for example. You can only meet with people up to six people and it has to take place outdoors so still not allowed to mix with other households indoors it is still a very different world to what were used to. And as we heard from the Prime Minister last night, it is going to be like this for quite some time the deputy chief medical officer last night speaking along side the Prime Minister urging that uptick is of critical importance this vaccine is only as useful as people are willing to take it, so urging the public to take the vaccine when given the opportunity. But it is raining so some things do remain fairly consistent Julianna Tatelbaum, thank you very much. T have the umbrella ready, chap. Lets talk to a Business Owner, Alexandra Miller is founder of eat, live and nourish. They have beautiful pink wall, delicious sweets and believe it or not, i took my wife and kids there is a few years ago to one of your locations. So it is a pleasure to have you on gorgeous shops by the way. Were showing some video right now. You are a Business Owner, eight locations. One outside london you have been struggling like so many what does this vaccine news mean to you i think that the vaccine will definitely build confidence for the public back up occurring the first lockdown in the uk, people were much more fearful of the virus as it was a complete case of the unknown now fast forward to the second lockdown and things have been slightly different while of course people are still careful, london in particular has been slightly busiest in terms of foot fall and increase in sales which is great. So we were quieter than usual, but we had a positive about the line but i think the vaccine will be helpful in instilling some confidence back into people to be able to go out and just enjoy life again and your lockdowns have not been nearly as string gentd entm of ours. Here in the northeast, businesses were mandated shuts down by the government for months how have you stayed afloat over these difficult 6 to 9 month period, what are some tips that you can offer other businesses here . Because we probably have a few months still to go obviously this has been an incredibly challenging year for all industries, particularly f and b. And the lock down also has brought us great opportunities that we were able to leverage on as a business. Even during such an uncertain period, we were fortunate to be going through an aggressive expansion. So like any other business, our ongoing costs had to be controlled we put measures in place to be sure we coukocould operate safey we were able to streamline our menus and the labor line and we were able to negotiate rent with landlords. But i think what has been paramount and really key for us has been our digital platforms we have over 500,000 social media followers and a 5 million reach. So as a brand, it was really important for us that we use our digital platforms to operate and push ourselves online. We have a merchandise line throughout the lockdown which replaced a large sum of our total Sales Revenue precovid. And to allowed us to operate while the cafes were closed. Were actually showing some by the way videos of cakes, im so hungry right now looking at this stuff it looks so delicious. Please ship some in your pink packaging this way when you look in your crystal ball, is there a date which because the vaccine news, you are able to say i think, you know, on whatever it is, march or june or august, that we will be fully, quote, back to normal . Do you have any kind of visibility on that at the moment, no i think everyone is really skeptical of what is happening and where the vaccine will take us but were still quite confident. I think that this has been such a challenging time for all of us, that we can no longer pl predict what will happen in the next hour let alone the next month or two i did say to a friend of mines other day that someone did ask me, you know, five years ago where did you think your life would be in five years and im pretty sure that ive got this one wrong. So i just choose not to look into a chris al ball and just have hope and faith that we all come through the trying an ted testing time and you are not the only one. I think most people did not necessarily see this coming. I mean, so what are your plans then the next few years . There are businesses as im sure you know some business own, especially a very competitive world of your, of coffee and sandwiches and snacks, that are not going to survive that will not make it through. Empty store fronts is there a part of you that thinks youll be able to grow and expand out of this weve been really lucky throughout the lockdown period, we made a decision to completely restrategize our expansion model. So now we will be continuously opening sites in the uk with a Franchise Partnership model for businesses overseas. Luckily weve been extremely successful in negotiating and identifying National Partners so open up over a scheduled Development Period of around four years so hopefully for us 2021 will be a big year for the brand and were just trying to keep pushing forward and think, you know, limitlessly here about what we could do within the business so fingers crossed well, listen, the one thing i do know, and i dont know much, is that 2021 will happen we will get there. I dont know if it is too early to say merry christmas, happy holid holidays, but ill say it anyway look forward to getting back to the beautiful pink and see you guys in london best to you and your team. Thank you very much.