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tv   The Exchange  CNBC  December 4, 2020 1:00pm-2:00pm EST

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market for slack is large and undersaturated so i think that similar to the tableau acquisition it seems like they paid a lot of money but crm is a buy here. >> got to be real quick, jim. >> salute to the general, general motors. >> rob, real quick >> dollar story, catchup story. >> thanks, everybody "the exchange" is now. >> thank you, scott. welcome to "the exchange," everybody. i'm kelly evans. we're on breakout watch, the dow and s&p hitting new records as yields jump, all despite slowing job growth in know we'll dig no this seeming disconnect plus, home buyers are coming back for second. more americans are buying two houses these days can, and we're going to look at names that could benefit from that trend and petco goes public again. uber wants to be essential and options trading is the new sports betting it's all ahead this hour, but
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let's start with the marks and some of the records. dom chu has more fours. >> a whole slew of different records. mentioned some of them out, the dow industrials, the s&p 500 gold star, nasdaq composite gold star, each have hit report highs so far in trading and you can see right now the dow industrials half a percent gain and same for the nasdaq and 3692, last trade on the s&p 500. speaking of the last three another key part of the market that we've been watching that hit another high today, and that's the small-cap stocks, up here to day% the spdrs up 50% and as you can see that white line closing the gap there with the s&p has a long way to go to catch up with the nasdaq stocks. s&p stocks record high and check out this stock, snowflake, cloud computing up 16%, taking off
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ever since the mixed earnings report a couple days ago, but as you can see here, this company, given the gains we've seen today, 227% since the ipo, is now worth a whopping $109 billion, and kelly, just for perspective, that means that snowflake is roughly the same size as ibm, roughly the same size as lows just a hair below microdevices, bigger than american express as well questions about valuation at these lofty levels back over to you. >> i mean, it was a superlative ipo and a super la trif performer. why is it up 15% >> some of the mixed results coming from the earnings now there's a question of whether or not there's an issue with the upcoming lockup coming up will it be a short squeeze for some of the shares snowflake catching a bit of the bid, really is exten it had. by the way, as many of our viewers n.o.w. know and you do as well. two of the biggest shareholders in snowflake, warren buffett's,
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berkshire hathaway and as well. >> right. >> so keep your eye on those particular shares. >> that's right. i forgot that was one before berkshires's holdings now. dom, we appreciate it. see you again soon let's tick into the jobs report for a movement positive news on the unemployment rate this morning. there was continued job growth last month but that was offset about concern about falling labor force participation and more permanent layoffs versus temporary ones let's talk about what it all means for the economy and whether the covid bill that seems to be make its way through congress can help to addressterm joining me is michelle meyer, head of global economic research i read one figure that says we're down 4 million jobs from this time last year. there's a huge portion of the labor force that's sitting this one out. >> that's exactly right. that's one of the considerations when you look at the unemployment rate, 6.7%. it's great and much better than where we thought we'd be at this
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point in the cycle, but that's in part due to the fact that people have left the labor force as a result of the covid pandemic, and they are only coming back slowly in fact, when you dig into the numbers you see prime working individuals, particularly female prime working individuals kind of sitting out a bit from the labor forks and i think that that is a function of the covid pandemic, so whenever you're looking at the advocate numbers it's crucial to dig deep ter and think about the drivers behind these figures. >> right, and we've seen obviously the politicians responding, chuck schumer saying some of the worrisome signs to this report add urgency to the stimulus talks my question from where you guys kind of approach this is what's in the covid bill the kind of thing that's going to help continue healing this labor force? >> well, i think it certainly could help, absolutely i mean, you core where some of the job cuts and weakening are coming from, leisure and
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hospitality and, of course, restaurants, a big part to do with the rising covid cases which have led to restrictions but the extent to which fiscal aid can come in and target the small business and target the parts of the economy that can be hit the hardest certainly can help bridge the gap and that's really the goal. the goal here is just to continue to buy enough time with aid from the fiscal front until we get past this shot, the vaccine is implemented and we can see a true and more underlining support with strength in the economy. the idea is to have a nice handoff from public to private sector but we're just not there yet. >> i saw someone on the street the other day saying if they do pass a covid bill let's round it up just say 1 trillion in size, that that would add a percentage point to fourth quarter gdp. can you give us a sense of how important the passage of that bill would be to gdp, maybe whether it's this quarter or if that ewest coast would be -- i could be mistaken, might be the
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first quarter of next year but that's a quarter that we know right now is looking pretty weak. >> well, that's right. yeah, i don't think it will matter much in the fourth quarter of this year kind of already been baked in, by the way, it has been coming in pretty strong, track that for a 6% gdp event in the fourth quarter this year. i think stimulus will be important for q1 and beyond and the immediate impact upon passage would be provide income for the unemployed and hopefully to stem some of the rise in jobless claims and keep people in the labor market and that will support purchasing power, consumer spending in q1 and then state and local aid and some off the more medium term spending initiatives will help to sustain the recovery and reinforce what would likely be a pretty big bounce in economic growth in q2. what we saw from the cares act, my read of it, is that the stimulus impacted the economy very quickly and largely through the consumer
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>> and quickly, michelle, where does that leave the fed. are they expected to do more here does it just depend on what we actually get passed out of congress. >> so i think the fed in the upcoming meeting is very likely to make some tweaks around the trajectory forward for the program, the balance sheet program in particular in the sense of really tying the balance sheet to economic outcomes and making it very clear that the fed stands by both with interest rates and with the balance sheet, very strong forward guidance but i don't think they need to change their current policy and the economic data is supportive of that have and the fact that the fiscal front is progressing in terms of the stimulus front, hopefully is progressing in a way that allows the fed to kind of sit tight with this accommodating stance and act when necessary >> all right michelle, thanks for your time today. really appreciate it >> thank you, kelly. >> let's turn now to the markets. after everything we've been discussion you might have
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thought we'd see some weakness today but another day of records as dom mentioned right off the top, the s&p, nasdaq, dow, russell 2000s setting highs. the ten-year yield is trying to break above 1% and getting pretty close why are all of these breakouts happening if the labor market news is as concerning as it is joining me is the ceo of zoe official and the senior portfolio manager at jpmorgan asset management andres, why do you think this timing is coming today is it just kind of cleared the way for everybody to refocus on the progress that seems to be happening on the covid front >> yeah. i think the -- the underperforming jobs numbers kind of reminded us that the market look as bad news and good numbers as good news right now, and what i mean by that is bad news basically means that there's probably going to be more fiscal support, more
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monetary support and good news is great things actually are going to be potentially a v-shaped recovery, and there's no way monetary policy will change any time soon >> fair enough diana, where does that leave you as an investor then? does it say, you know, we have to wait and see what happens out of congress, or do you feel like you can move forward regardless? >> i think markets can move forward regardless and investors can actually move forward regardless because of a few things, so the data today was disappointing but not necessarily as michelle was pointing out, not necessarily by enough to force the fed's hand show we don't expect the fed to await the maturity of the balance sheet in december but it does underlie the fact that we do need a fiscal deal from congress and the statements that we've heard since the data actually do point to the fact that we're likely to get that out. we do expect to see softness on
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the hemisphere because of the shutdowns but the rest of the world momentum growth looks pretty strong so we think next year as the vaccine gets rolled out we're likely to see a strong recovery across most economies and for investors you need to take the medium-term view so while the data today was disappointing, i think the outlook for the global economy is going to be a pretty repromising one. >> yeah. andres, how important is it if the pen-year breaks above 1% and what happens if it does? >> i think that it could signal two things someone that reflationary trade, if you will, with the idea that fiscal policies are coming that means more inflation and potentially you've got to remember the yield not only signals inflation but growth, right, so i think it could be a combination of kind of the signal, the market expecting more inflation and more growth, but then one thing we haven't talked about that's important to keep in mind especially for the
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stock market is that the markets care about earnings, and we're 95% of the way done with third-quarter earnings 81% of companies beat earnings usual lit average is around 71%, so when you look at all-time highs throughout everything that we've seen on the economic side, which hasn't been as strong as we just saw with the jobs numbers. earnings do basically what they have done the last couple of years which is deliver >> and diana, same question for you. i mean, how important would rising rates, you know, 1% yield be i know you guys are really focused on investments outside of the u.s. so perhaps in that sense watching the dollar is more important here. >> totally so 1% yield from a u.s. perspective is probably a level that we'll see certain groups of investors start to look at getting back no the treasury market or increasing allocations just given how steep the curve is so when you think about
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japanese investors where they have had breaks for a long time, actually if you can get 1% with hedging costs as lower as they are, it's much, much higher than the rates. as far as the outlook for dollar we do expect modest weakening into 2021 which will be supported for investments beyond the u.s., so if you look at pockets of emerging market, we expect china growth to be at 8% and that's going to have a positive impact on the rest of the space, and yields are much higher than they are in the developed markets. we do expect to see numbers move to us in the market economies. >> yeah. makes sense. we'll see what it brings diana omoa and andres, thanks. another day of milestones. still ahead, coming back for seconds. home buyers are increasingly buying second homes amid the hot market names that could benefit. and the debate begins about
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who should be considered an essential worker when it comes to the vaccines. do uber drivers qualify? and third time is a charm. petco is looking to ipo again as the pet industry explodes and demands this year, but are they the right bet this time around it's all coming up in just a moment ♪ ♪ ♪ ♪
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welcome back not just first time home buyers in the housing market. purchases of second homes could be up as much as 65 year on year so who is best advantaged and positioned to take advantage of this trend with us is steven kim of evercorps isi. we've seen the phenomenon of vacation towns and who is buying all these second homes >> i think what you're seeing here is folks of means are coming back for seconds here, and you are seeing that in -- across this market the higher end buyer was really absent or certainly weaker than entry level segment of the market for four or five years and that's completely changed i wouldn't say the high end of
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the market is stronger than the market but they are fully participating in the smorgasbord here we think it the higher end of the market actually has a lot of legs and sustainability to this demand because of the fact that they don't have affordability concerns so even as home prices are rights and there are home equity rising exponentially they have even more buying power so we see a trend with some legs. >> that's what i was going to ask, if the trend was a one-time thing that would be in the rear view mirror or not who in your coverage space does this most benefit. >> the builder that comes most readily to mind is toll brothers and they are reporting are earnings on monday we expect them to have very good things to say. my estimates on earnings are up 40%, higher than the straight consensus for next year and 70% higher for 2022 so i think they are going to please the street with things they have to say and certainly things that will deliver over the course of the next year. >> how are you 70% higher than
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consensus? what is everyone else missing in this story is it just this second home boom >> no, it's more than, that kelly. what we're seeing is people are failing to incorporate an understanding that home prices are going to be moving up significantly over the course of the next year. they already are, which is amazing that people are not willing to sort of project that forward, but i here so many people say my goodness home prices are up so much nobody can afford the homes which sounds a little bit like yogi berra says nobody goes there anymore because it's too crowded i would point out affordability is enhanced by the fact, you know, these are all repeat buyers who basically already own homes already and, therefore, their home equity is giving they will greater buying power. people really miss that so when had you have home prices moving up the way they are, which is basically almost like we saw in the housing had bubble of '05, the builders take a lot of that and it goes right to gross margin and drives their earnings power, and i think that's what people are missing
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>> and it's interesting, and obviously i can see how that would benefit all of the builder stocks on a longer time frame than just this year, so because you brought up the analogy it's what i was thinking of at what point, if at any point, is it just so different that this didn't trouble you because it's so unlike the housing bubble or at some point is there a psychological effect from hour prices that we need to be worried about. >> well, when you ask the average person, home prices are going up, is that bad or good? most people will say it's good and most people are owning a home the only person for whom that's actually bad is the first time buyer, but the first time buyer is benefiting from the fact that you have very low mortgage rates you know, the savvy investors, you know, on wall street knows that the ten-year treasury yield has been going on but average person on main street doesn't care about that, they look at the mortgage rate and even thought the treasury yield is up 30, 40 basis points, the 30-year
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mortgage rate is basically on its historic lows, historic lows of 2.71% you're seeing the low end of the market benefiting from affordability and the high end benefitting from all the things we just talked about the outlook i who think is very good as well because there's such a scarcity of homes on the markets and you can not change that quickly some people say, well, gee whiz, if people decide to move and put their home on the market, doesn't that add supply? not real because they are buying a home, too, so maybe you're adding a home for sale but you're taking up one but it has no impact on the inventory of homes for sale so with such an an historic low of inventory on market, you're seeing this demand with nowhere to go and it pushes the prices up that's why this is very different than what we saw in the housing bubble of '05 when what you had was the ridiculous levels of demand and supply was not particularly scarce. >> fascinating, and if people
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buy second homes it makes the inventory even more scarce >> all the more reason to look for numbers next week. still to come, covid-19 vaccines could be coming to a grocery store near you plus, the week's winners you may have missed including this stock up more than 11% the name and what's behind the gains is next. hi, my name is sam davis and i'm going to tell you about exciting
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welcome back to "the exchange." we're near session highs with the dow up 192 up 178 right now and look how steady the gains are across all the major indseerksz up .6 of 1%, haven't seen that in a while. let's check all the investigators where energy, materials and industrials are your biggest leaders there's the opening tilt utilities and discretionary are the two sectors in the red energy up another 4, been like a 10% move this week some of the other individual names we're watching including shares of docusign which are higher after it beat on the top and bottom line and also had better than expected guidance. new customer additions a tailwind there as demand for electronic signature reactions remains strong amid the pandemic the stock has trip-related in 2020. >> shares of stocks are low and management expecting business to moderate due to an elocated holiday season
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shares of stitch fix are lower on a downgrade to sell from neutral at mkm on valuation concerns they are also pointing to execution and profit margin risk from their executive compensation structure about a 4.5% slide for stitch fix. let's goat leslie pick per now for a cnbc news update. >> a call for action following this morning's disappointing economic data. president-elect biden calling the jobs numbers grim and evidence the economy is stalling that he says underlines the urgent need for a new coronavirus relief package he's encouraged by barb efforts in the senate on a $900 billion bill but warns it won't be enough and congress will need to act again in january. house speaker nancy pelosi sees momentum towards a relief deal and explained why democrats are willing to come down from their previous demand from a $2 trillion package. >> with the democratic president committed to a scientific
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solution for this with the idea that we will have a vaccine that's a complete game-changer from them. >> also changing, how americans are shopping for christmas trees. some are still pick out a tree and putting it on the roof of their car can, but many others are getting trees delivered and getting them earlier than usual which could lead to limited supplies later kell, i hope you already have your christmas tree and are all step to go on that front. >> leslie are, i guess you didn't see rapid fire the other day of my charlie brown, sad christmas tree that's sitting on the dining room table with the tag still on it. >> that kind of tree is better than no tree at all. that's what i say. >> just wait until i get the lights on it sometime in the next three weeks. >> ta-ta. >> a strong week in the markets with the s&p and nasdaq hitting records for four straightdays and the dow hitting a record today. since it's friday we thought
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we'd take a look at the movers this week that don't get attention. rio tinto and bht, two top mining names rio in the green today, up more than 11% and bhp moving higher today, it up about 11% this week these moves come as the dollar has slumped to a two and a half year low bolstering commodity prices like copper copper hit a seven-year high this week. you may recall stan druckenmiller recommend both of these names rights here on the show in early november they are both up 20% since then. coming up, pets are so hot that one company is now going public for a third time. that plus the auto stock that could rally another 25% and a movie theater chain's plea to investors. that's all coming up in "rapid fire" after this (♪ )
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welcome back let get you caught up on a few stories on your radar today. here to break down the headlines, dominic chu, leslie
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picker and mike santoli. petco looking to go public again. it reportedly plans to raise $will hundred million in the ipo and will trade on the nasdaq under the ticker woof, of course this is its third time going public petco last traded in 2006. this couldn't come at a better time because people are spending big bucks on their pet pet care spending is expected to hit a record $99 billion this year, nearly 67% of u.s. households now owning at least one pet. that's the highest level on record and pet owners are expected to spend $38 billion on food and treats alone and it will be a very happy holiday season for our furry friends consumers will spend $9 billion on pet gifts and supplies this year dom, listen, is this the best of -- you would think a brick and mortar store wouldn't be that well-position right now to go public, but what do you think about petco? >> it's one of those situations
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where many of these types of stores not only have that brick and more tore presence but omni channel distribution as well where you can order online, pick up in store or curbside or anything else. what's striking about this just how popular pet ownership has become during the pandemic and the reason why the iron is hot for a company like petco to do this what it comes down to is whether or not it's sustainable. now, the pet lover and owner in me, the animal lover in me hopes that these trends can continue, but what i fear -- i'm an optimist when the pandemic goes away what, happens to those pets? do the same types of things, do the trends continue or do people put them back up for adoption, do shelters fill up again? i'm worried that this kind of thing is not sustainable so for me i would love to see this company do well in the public markets? >> leslie? >> i mean, i -- i was not one of those who adopted a pet in the pandemic i had a little baby, so i had -- enough to worry about and to
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take care of in the pandemic, but, yeah, this is not the first time that petco has gone public. they first went public in '94 and then again in 2002 they tried to go public in 2015 by wound up doing a sponsor-to sponsor transition and acquired by two other public equity firms and are now going publicing with what i would argue is the best ticker symbol of all their prior attempts and that's just me being biased with the word woof. definitely a pandemic play here. pretty much every ipo we've seen here in the last nine months of 2020 has been a pandemic play, where you've seen the kind of stories stories benefiting their business that's clearly been the case with petco, but this is one where you've got triple classes of stock you've got $3.3 billion worth of debt so dom's point where you have to comfort future and consider whether they are timing this ipo to their advantage is one that could still play out in the years to come.
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>> yeah. no at least the kids. you don't have to change diapers after a few weeks, the dogs, you've got to pick that up. >> absolutely. >> in addition to all the other challenges, there's chewies and you have this player out there that's very well-positioned to capture a lot of the growth and very crucially has a shareholder base that will tolerate losses as far as the eye can see and will fun the market share gains. if you're petco you have all that debt. it's going to be a different shareholder base that's a little bit tougher. by the way, great ticker symbol. first time they tank a quarter and the stock goes down, everyone will be putting that in the headline, woof. >> that's true. >> we'll leave it right there. next let's talk about irish, the big story today. they want to jump the queue. the company requested that its drivers be registered as essential workers. its drivers provide critical
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transportation including rides for other essential employees to get to work. their food delivery allows other people to stay home, people who may be vulnerable and people getting at risk of exposure to the virus. uber shares up 3%, up more than 80% this year. dom, i'm totally sympathetic to the case they are making the question is just how -- where do they rank in the -- in the universe of people who need access to this vaccine, so it's not so much on its own merits as, well, if they get it, then who doesn't? >> it's all a matter of relativity and the point here being, like you said, is this notion that even if they are categorized as non-health essential workers were, one who can facilitate commerce and miss, facilitate the logistics of getting health care workers to their positions, it still puts them behind in line, behind two very critical groups of people those are the first responders and health care workers themselves and also the elderly and sick who are out there already, so even if they do get this designation, they are not going to be anywhere near close
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to what's happening to the top of the line. by the way, if these forecasts for distribution are accurate, it may not matter that much because there's a chance that everybody by the course of the middle-of-next year will be able to have access to these vaccines so maybe is not a big deal for them right now, but i can kind of see why they are trying to make the point. >> less lyrics seems that the bigger issue would be the stores and those who are fighting to be declared essential uber is probably going do business the way they have been doing business, the fact that they have been doing it all along f.people don't have an alternative to uber they will probably go with uber even if there's a small risk because they haven't all been vaccinated. >> absolutely, and i think the question, too, is if there is a jockeying for kind of getting ahead in the queue an for getting a vaccine, every workplace wants their employees vaccinated to be back in the office and more productive
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even the people who have been working from home during the entire pandemic but like to give the workers the optionality of coming back to the workplace i can see why uber would like that for their drivers which we should mention are contractors and not full-time employees, but it's worth noting there isn't much of a moat to become an irish driver to begin with let's say that you work on wall street, you know, for your career, but you may want the vaccine a little bit earlier who is to stop you from driving uber and be cons tuesdays in an uber driver and get that earlier. it's fuzzy how they can constitute their workforce to even cut that queue to begin with. >> yeah. >> great point we see it on the one hand people who want access to the vaccine as quick as possible and others in the population worried about getting it at all. a car chase on wall street, i call it a car chase because
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jeffries is offering a bar on carvana, kind of chase the move we've already saying this year yes, they are seeing the used vehicle market is ripe for this market but shares are already up more than 150% this year, one of the biggest winners. still, mike jeffries thinks it can double from here if the trends continue. i mean, does -- does this remind you a little bit what have we were talking about yesterday with some of the upgrades, you know, goldman's call on tez la, that sort of thing. >> it does in terms of what you have to assume. >> no doubt about it, that this company will be getting market share. incredibly friendly, two customers who want a way to buy a used car they only take 1% as revenue, so it seems as if it's just not clear how well it scales they are talking about cash flow margins long term. their target is 8% toss 13%, you know, from minimal, still cash flow negative at the moment so that's if you do have huge market share gains
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look at ebay at 25%, 30% cash flow margins today. it's about the tolerant shareholder base for a company that's address an enormous end market and how long that patience lasts is real the big story. >> dom, it was fascinating to hear phil tell us yesterday the used car market is so hot right now, there's, for example, some used pickup trucks going for a higher price than the used ones right now. >> the carvana story right now sounds like beyond meat in the early stages i would just say this. there's a disruptive element to this whole process, whether or not it's fully priced in is a huge question but i do know people personally who have done transactions on carvana an couldn't speak more about the process and the ease with which they could buy or sell a carl. i've never done it before, haven't experience it had but it could be a game-changer, but, again, a huge move in the stock that's probably already priced in to a good extent right now. >> looking across, i've got the
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people right across the street there who love the ford explorer that they got on carvana, and they are not the only ones nearby interesting to see the -- the analysts kind of catch up again with what they have been doing this year. >> finally, amc has a plea to investors, bay our stock or we might go bankrupt. the movie theater chain is working to sell more than $700 million worth of shares in an effort to buy itself time as the covid vaccine rolls out which amc hopes will make people feel safe to go to the movies again amc they could have a total loss of shareholder values, shares down more than 50% am i right to feel bad for them? >> sure. >> i do. you know, whatever the balance sheet, whatever the operational issues going into this, who could have ever foreseen this? >> nobody it, and i don't think that necessarily even if they were to have to go no bankruptcy, it's not through
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strategic missteps, even though it wasn't the best set of perform apsz what's fascinating here is the game they're involved trying to do the huge security offerings very big to the current market cap. the existing shareholders, basically saying if you don't describe to this deal, what you have already could be worth ofless and then, you know, even if we do raise this money we don't know what comes next very difficult no good options right here hand most of what they are dealing with is out of their control. >> leslie, is it our patriotic duty to go buy shares of amc >> based in my hometown in kansas so, you know, i'm not going to go tell people to buy the stock but i think it's interesting -- >> maybe buy a move ticket they should sell movie tickets like, you know, december of 2021, raise some money that way. >> that's a good idea. >> wasn't that a move pass, didn't we do in a? >> i'm actually surprised there wasn't an institutional investors that's coming in with some sort of rescue financing
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with them like what we've seen from some of their peers interesting that they have to actually go this route of dilution in send are $700,000 worth of shares. >> i don't think they should rule out a gofundme. it will be sad without the theaters dom chu, leslie picker and mike santoli, great thoughts as always that's it for "rapid fire. today is the deadline for states to outline their plans for the first round of phizers's covid vaccine. we'll get those details including how a grocery store in the south is getting set to register with this one. jeffries is predicting a covid reversal next year we'll tell you which names the firm sees as opeutrformers coming up. like other etfs. but inside... there's advanced research, modeling and refinement. constructing funds that don't simply follow an index. but explore new terrain. helping you fill portfolio gaps. connect to client goals.
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welcome back with pfizer's vaccine rollout potentially a week away, states are facing a key deadline to let
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the government how much they need and where to send t.meg tirrell joins us with the very latest meg? >> reporter: the government calls these micro plans for where the first doses of vaccine should go in every state, and those plans are due today. the first amount of vaccine that will be available from pfizer will be enough for 3.2 million people that is part of, you know, a dose regimen that's 6.4 million dozes. by year end operation warp speed says there will be enough for 20 million people in the month of december and this rollout, depending on when it comes couldn't come at a better time considering how bad the pandemic is right now if you look at trends and hospitalizations, the dark yellow states there are the ones seeing the biggest increases week over week and what we're seeing now is it's the coasts starting to get really hit hard as the midwest has already been through a really horrible period and are still in it, and so we're starting to hear from states about their plans for these vaccines, including what they expect in that first
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shipment new york, for example, says it is will get 170,000 doses in the first shipment and california 327,000. small states like rhode island 10,000, and wisconsin says 50,000, and already, kelly, we're starting to hear from governors like the governor of wisconsin, tony evers who wrote a letter to secretary alex azar for wisconsin to be prioritized in terms of the vaccine outlay saying essentially given the outsized impact that covid is having on the state it's critical that wisconsin be prioritized for vaccination distribution you are starting to see states and as you were just talking about with uber, companies lobbying for earlier vaccine access kelly? >> meg, also since we said that fda approval is expected next week, i mean, is it actually going to come that day that they are meeting? >> we don't know
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so on thursday it's a meeting of outside advisers so the fda will meet and talk about every facet of these vaccines and we're going to get to seat data, too it should come out on tuesday so that's a key date for people to keep in mind and then at the end. date the committee is likely to vote on what they think about this vaccine after that the fda could act immediately or it could take some time. it could take days to weeks. there's a ton of pressure on it, so you would expect it would be sooner rather than later but they want people to know they are being very thorough. >> i thought it would literally be that day. that's interesting i hope they can go as quickly as possible while taking it all into consideration meg, thanks. we appreciate it meg tirrell. with that vaccine around the corner either way, how will we distribute it once it hits the broader population grocery and drug stores think they will have a big role to play and joining me to discuss that is the evp of pharmacy and fuel operations at food city parent kvat foods.
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mickey, it's good to have you. first of all, are you targeting your involvement to be in these early weeks or once there's many more doses available to the broad population >> well, first of all, thank you for having me. we've literally prepared ourselves to be ready for whatever role we need to play. we're ready to go with the federal allocation when it rolls out, and we've also offered our services to the states should they deem that they need to count on us to help in that population as well. >> what advantages does a grocery store offer in this distribution process, because i've read, for example, you have wide and long store aisles where you can safely distance people as they wait and that kind thing, but we spoke to the head of the new jersey hospital here earlier this week and i asked him what he thought about grocery stores and drug stores distributing the vaccine and
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didn't think it would be a very good idea because you guys wouldn't be able to track populations after receiving it to make sure, you know, how they are doing it, in the days, weeks, months, years to come what would you say about that? >> well, vaccine would be given in our pharmacy area, and, you know, we -- we have -- the big thing that we can offer that maybe some of the other entities that will be given the vaccine is accessibility you know, our pharmacies are located in our grocery stores. our customers, patients, access those several times a week for other essential items such as food. >> finally, mick, haey, have you been told whether you'll definitively be playing a role yet? >> we've done all the documentation for the department of health and human services for the federal allocation which will come in phase two again, we have been in constant
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communication with the states that we operate in, and we have made sure that they realize that our services are available if they deem it necessary to utilize us to -- to get the first phase out. >> fascinating mickey, thanks for joining us. mickey, thanks for joining us. we'll check back in as we all learn more about this process. >> mickey glazer >> jefferies is calling for a covid reversal stocks. here are some californiexamples, boeing, citigroup. now, as sports teams deal with delays, cancellations and shortened seasons and people are stuck indoors due to the pandemic, there's been an uptick
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welcome back to "the exchange." young retail traders have been pouring back into the market they're looking at one particular trade because it has a particular payoff structure to sports bets. bob? >> options trading has become the new sports betting millions staying at home have discovered trading and it as spawned a huge subindustry and options trading in tandem with an increase in equities trading that shows no signs of letting up look at this trading and equities options hit new highs in november, continuing a trend that began earlier in the year equities options trading is 50% above last year's levels, year to date on all of the major options platforms. much of this trading activity has curiously occurred in out of the money call options with much of it in day trading, buying in the morning and getting out in the afternoon. analysts say that may make some sense. for example, if you're a retail trader, you only have a very
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limited amount of money to invest, buying cheap options at say $1 or $2, may make more sense than trying to buy a tesla or amazon or apple equity in trading that if the fox move, say, 5% in a day, the value of many options may also move a similar percent. so you can make the same percentage with much less outlay of capital so it may not be totally irrational to get involved here. what could go wrong with this rosie scenario the markets have been in an uptrend and that has made call buying very profitable if that reverses, this type of trading is not going to be profitable and those people are going to be in some trouble, kelly. >> yeah, and that is going to be the one interesting thing to watch or maybe sports will reopen and they'll drift away natural naturally. how did they learn all these plays in the first place >> a lot of it was because of educational material i talked to td ameritrade. they have enormous amounts of
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educational material about how to trade options and they said viewing of that material has gone up three times compared to the same level of last year. a lot of them are actually just watching the educational information that's out there you know, one interesting question is how long this goes on and aside from the fact that the trend may go against them, some of this may have a limited shelf life, kelly. if everybody goes back to work, for example, assuming a lot of people are doing this trading at home, some of this trading may eventually die down and of course eventually you're going to get a new cycle you're going to get some kind of down trend 10 or 15% and we'll see how that shakes out with this new round of day trading that's been going on kelly? >> any other words of advice, bob, for this new breed of trader >> you know, aren't you -- i am really happy that more young people are getting involved in the markets. we auchl want that we want more people to own the stock market there's too much narrow ownership of the stock market by
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wealthy people younger people coming in, i think it's fantastic i think robinhood is great and the whole thing. we're long-term buy-and-hold people and i think we all know that's the best way to deal with things hopefully they'll figure that out sooner rather than later >> i'm day trading during the show every day, bob. i don't know what you're doing, but i got index funds in my 401(k) i'm like the most boring investor on the planet >> boring is good. >> that does it for "the exchange" today. stick around for "power lunch. the former new orleans mayor will weigh us. i'm see you after this short break with tile tyler mats --
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geico's got you covered! like a blanket! houston? you seeing this? geico. expect great savings and a whole lot more. good afternoon, everyone welco welcome to "power lunch. glad you could join us on this wintry friday. the stocks are down, nasdaq russell are at record highs as investors shrug off a weak jobs report and wait for more stimulus out of washington plus let's talk a little bit about disney's record run, the


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