tv The Exchange CNBC December 16, 2020 1:00pm-2:00pm EST
>> good to note. okay joe t., the man with the etf, what have you got? >> scott, three weeks ago i brought you tractor supply, tsco position is working. i'm buying more. >> okay. everybody's picks are in the green today. market trying to hold on to that as well. jim, thank you again. >> great day, guys. >> "the exchange" begins right now. thank you, scott, and hi, everybody, welcome to "the exchange." we're just an hour away from the last fed decision of 2020 in what's been an unprecedented year for the central bank. how unprecedented? well, this year the fed's balance sheet has grown by more than $3 trillion, cut rates to zero on a rare weekend move back in march, went into uncharted waters buying government bonds and state and local government debt and announced an unprecedented main street lending program, and the fed is still buying about 120 billion in bonds every month, and they have announced a new approach to inflation to keep policy loose
now, all of this has certainly had an impact on the markets stocks have soared to all-time highs. the nasdaq is up more than 40% this year and the dollar has dropped. the dollar index is at the lowest level since april of 2018 actually and on track for its first down year, the ten-year yield down 1% as they buy up half of the massive government bond supply. so, given all of this and with that decision about an hour away, where do we go from here joining me now brian belski is chief investment strategist at bmo capital management and julia coronado joins us and the head of rate strategist at society generale scott, i'll start with you on stocks here and expectations for the fed's announcement let us not forgot. even if they don't do anything new, they are still pumping a ton of liquidity into a market that's roared back from the lows with an economy still growing and a vaccine that's being
administered now >> right, kelly, and thank you for having us. that $80 billion number continues. i think the fed has basically done two very, very big things that's not what you say, it's what you do. they have been very clear that they stand at the ready, and this notion of what happened in august was a real big deal in terms of changing their focus from inflation to unemployment, and i think that really set the market ablaze in terms of higher prices now, going forward clearly on a near-term basis it's about stimulus and what we're going to see from mr. biden and miss yellen in january and february so this could be one of those things, one of these meetings where it would be the most meaningless meaning in an unprecedented year as you said in the onset, but fed is going to continue to purchase, and i would think they are not going to see any big deviation from that program. >> right, but this is a huge program, julia, so, you know, i think it's what, 80 billion in treasuries and 40 billion in mortgage-backed securities you know, again, all of this was
instituted when the crisis was at its apex. although the case count is still bad, it's very, very different economic situation is it still justified to keep these programs going the way that they, and do you expect any changes today? >> absolutely it's justified we're still actually very much in the thick of the worst second wave that they had imagined. the vaccine is great news for the horizon, maybe mid-2021, but in the near term we see the economy slowing. we see that fiscal support running out and activity shutting down because of the virus spread, so i actually do think that they are going to come to the table. their asset purchase program is pivoting from market stabilization to monetary support and what we're going to get today is guidance that reenforced their commitment to continuing these purchases and we do expect them to extend the maturity of their treasury purchases as part of that have pivot to monetary support.
>> yeah. that ladder one is the change we potentially could see today with the fed buying more on the longer end what impact is that going to have on bond yields, and what impact has it been having already? i mean, it is pretty remarkable that the bond market, while it's up off the lows, is still, you know, has a ten-year sub 1%? >> yeah, and that's the reason why i think i disagree with julia. i don't see the need for the fed to announce a weighted average mature year one extension in the portfolio. conditions are easy, interest rates are at lower than 1% and the yield curve is not as steep as people think it is, so i really don't see a fundamental need for the fed to extend the average maturity of its portfolio. what they should really do is stand pat and use this as a tool sometime next year when they are really going to taper asset
purchases, very much similar to what the bank of canada is doing which is tapering asset purchases and extending its average maturity over its debt holding so i think using the weighted average extension at a later time would be useful >> so people will kind of know what we're talking about with this tool, basically one concern and understandable concern is, that you know, longer bond yields, ten-year, 30-year, could start to rise. you know, if we turn the corner, the outlook looks better you know, the vaccine is getting distributed. we kind of get through the worse of the pandemic and then you would think at some point that the ten-year goes to 2%, 3%, something that have magnitude and then at that point if the fed stepped in and bought more of it may be they could push the yields back down now, there are plenty of people who are skeptical that that would even work, but at least they could kind of direct their firepower that way it does seem a little strange for them to unleash that firepower now. >> i'm in complete agreement
with you, kelly. i think that like you mentioned i think that, you know, interest rates are very low and the communications channel from the fed has worked out really well the ten-year yields are not rising we're seeing a very sharp rise in inflation expectations and yields are declining quite sharply so the messaging from the fed is working out from an inflation expectations perspective but nominal yields are still well below 1% so, you know, for me, they are way better off using this tool at a later time the when interest rates start rising, let's say they get to 150 or 175 in a very short amount of time, that's when they should be using the wand extension tool. >> yeah. brian, he had me turn back to you with some of the other developments you know, we talk a lot about what stock prices have done but obviously, you know, the weak dollar is supporting a run-up in commodity prize. silver is up 40% this year we've been talking all week with people who are really bullish on commodity prices and think they will keep rising from here so, you know, talk a little bit
about that i mean, are these price gains which include everything to the u.s. housing market starting to become unjustified from your point of view? mean, are we building up risks in the market as the fed at some point will have to start thinking about this taper? >> great question. you know, i think a taper tantrum is coming but not any time soon. as early as maybe late 2021, 2022 i think the dollar trade is clearly a momentum trade in that downward direction much like other asset prices we would say that we would want to taper that dollar weakness, and there's no doubt that when and if we get another big stimulus package, the dollar is going to weaken but that would be the low, we really believe, that especially given the fact that corporate profits in the united states will be up 35, according to our models, and with respect to continued fundamental volatility, emerging markets in europe, it's kind of the tail wagging the dog i think the emerging markets in
europe have seen strength because of dollar weakness you never want to buy an asset because of currency weakness you want to buy an asset because of fundamental strength so we would be very, very careful using any kind of dollar denominated strategy to only buy that asset because of dollar weakness, and we think a bottom is going to be more likely than not. >> what about bitcoin, brian i mean it seriously. it's above 20,000 today, and it would seem more on fundamentals that relate to the world's largest asset and money managers piling in than dollar weakness per se. >> again, another thing that really worries me from a momentum standpoint, you know, and any time i see the bitcoin marker in the bottom of your screen, too, that makes me nervous. i think that's a contrarian signal, by the way, that it's become -- it's become so exciting that we're watching bitcoin but i'd be careful there, especially if bitcoin is supposed to be non-correlated with gold and they have been positively correlated so i would much rather be a gold owner than bitcoin.
>> well, that's because you're old school you've got to get with the times. i'm not going to ask you your thoughts on bitcoin, no worries there. a lot of people who are buying bitcoin if you looking a the big uk fund manager that did, they are pointing to their concerns about currency debasement and financial market instability the european bank is projected to buy more than all the government debt that's issued this year and, again, you wonder from a rates point of view, i guess it works for now i guess that's how german bond yields are still negative, but that doesn't seem sustainable. >> that's absolutely true, but that's the way that they are approaching to stimulate the economy. clearly the difference between the fed and the ecb is that the fed is buying quite a lot but not nearly as much as the amount of supply that's going to hit the market, but in europe they are buying quite a lot of the new supply that's coming into the market that's why we think they have joined the chorus of 2021. the yield differential between treasuries and bunds is going to
widen. ten-year yields are going to underperform bunds as yields rise so that's at a paradigm i think that that is going to be very much in play. also inflation in general in europe is very, very low so the ecb is trying its very best to stimulate the economy as well as increase inflation expectations. >> all right a final question, julia, to you before we go the what else should investors have top of mind as we await the decision in an hour's time, and then they will marks fromfed - the remarks from the fed chair today? >> this is the fed chair that said an ounce of prevention is worth a pound of cure so i do think that chair powell wants to reinforce exactly that reaction function that we've been discussing, that's been supporting markets and doesn't want to wait for the yield backup in order to -- to step in, so i think that what we're going to get from the guidance
on the asset purchases is meant to reinforce that new reaction function that they rolled are out in september with their interest rate guidance, so how they roll out that guidance on asset purchases is going to be very important for thinking about markets going forward. >> all right we'll leave it there for now there's going to be a whole lot more in 50 minutes time the thank you all on the fed decision and these markets. speaking of the government's pandemic relief efforts, there seems to be continued momentum on capitol hill to get another relief package down. ylan mui is here with the very latest at this hour. ylan >> reporter: well, kelly, another covid relief deal is within reach as leadership from both parties say that the negotiations have entered the final stages >> we are close to an agreement. it's not a done deal yet, but we are very close >> we made major headway towards hammering out a targeted pandemic relief package that would be able to pass both
chambers with bipartisan majorities. >> now multiple sources tell me that package would be worth $900 billion as democrats give up on their demand for direction funding for state and local governments and republicans relinquish liability protections. instead, the deal would include another round of stimulus checks which have been a top priority for the white house, some republicans and progressive democrats. i'm told the amount would be about $600 a person though that number could still change and that the deal would still include enhanced unemployment benefits at the same time lawmakers also appear to be on track to reach a comprehensive spending agreement that would keep the government funded through the next fiscal year that would be a $1.4 trillion piece of legislation and, kelly, if all goes well, the house could be ready to vote on this combo package tomorrow before the government runs out of money at midnight on friday. back over to you >> very, very interesting, so the stimulus checks are back
this would be half the size of the previous round in the last bill the sort of tit for tat was, okay, well, we'll do the stimulus checks but not extra $300 a week nun employment benefits, so forth extended benefits you're talking about, is would that include a boosted payment now or not >> that's what it is sounded like right now, kelly. of course, we've not seen all the final details of this agreement and it does seem like there is some openness to doing a $600 stimulus check versus a $1,200 check we've heard already from both senators bernie sanders and josh hawley who have been behind the push to include stimulus checks in this deal they say that's a food start and, of course, want to see more money. so this could be that thread of the nodl that allows congress to get something passed and can make all sides happy, but, again, we're waiting for the final text but it looks like they are closing in on this deal after so many months
kelly? >> all right ylan mui, snowy washington thanks so much. come up, biotech's breakout the sector etf the xpi is on pace for its best year ever, up 52%. can the rally continue into 2021 jeffries says yes. they will join us with their top buys next. and another day, another ipo but something missing today is the huge first-day pop we're going to look at what's going on with wish down 13% right now right after this stay with us which ar it's been a tough year. and now with q4 wrapping up, the north pole has to be feeling the heat. it's okay santa, t's workflow it. workflow it...? with the now platform, we can catch problems before customers even know they're problems. wait... a hose? what kid wants a hose?! fireman? says "hose" it says "horse"! not a "hose"!
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welcome back to "the exchange." it has been a banner year for biotech stocks the s&p biotech etf taking profits today after being up more than 50% this year on track for its best year ever among the big winners in the space, twist bioscience, a diagnostics company, up more than 500% this year. fate therapeutics working on cancer treatments, up more than 370%, ultra genics pharmaceutical, a biopharma up more than 270% its biggest holding is moderna whose code of 19 vaccine could receive emergency use authorization this week and is up 600% this year. so you would think, well, it's time to take some profits, but my next guest says the rally can continue into 2021
with me is jarred holtz, jeffries' health care strategist it's good to see you again the first thing to point out before we get into your call for next year it's not just the vaccine names that are doing well this year i mean, the companies are up in a host different areas. >> certainly, kelly, thanks for having me. really appreciate that yeah, it's a broad-based mix of companies. there are a bunch of diagnostic companies, testing companies and, you know, innovative life science companies that comprise the xbi so even though the vaccine stocks have been, you know, obviously a very big component of the performance this year, there are so many other facets within the biotech complex that have made for, as you alluded to, the best year on record for this index, so i think it can keep going. it's very, very difficult to parse out the effect of moderna, novavax and other vaccine stocks and even if we strip them out
we'd still be looking at a 40%, 45% year which, you know, obviously is very good. >> why is it that you think all of a sudden a lot of these names have seen the success that they have i mean, is there just the timing of a lot of o & d coming to market this year in a successful way? has there been some change on the policy or political front? you know, what -- is there a common thread i guess between all of these outperformers >> it's so difficult to know i think there are several components or more facets that have led to this sort of performance this year. i think the first is that biotech has finally gotten some momentum behind it we've been talking all year about the fact that the tech sector seems to go up i respective of what the broader markets are doing very consistently and over, you know, a five or six-year period going back to 2015, the various tech indices are still outperforming biotech by 2-1, 25% on average
on a year-over-year of compounded basis so in my mind biotech has time to catch up. we've been writing for a while we think it's been getting better, the trump administration, if nothing else, was very noises and provided a lot of what i considered to be unnecessary volatility we're not exactly sure how the biden administration is going to shake out on drug pricing but by and large it will be a much more quiet four years ahead for it. >> although you do think there could be a wave of deal-making, is that right? >> m & a is always a big component. i mean, we've seen a couple of transactions this week astrazeneca buying alexion, you know yesterday eli lilly made a small transaction in the space we think this will keep up there's really no reason not to. i think all of the pharmaceutical companies and large cap basically, you know, suffer from, you know, similar consequences which is the larger they get and the larger their drugs become, the more significant the loss of exclusivity on key major branded products becomes and it's almost
a circular reference in terms of their need to go out and find targets that will enable them to grow again, so m & a - i would venture to guess that 2021 is going to be very active here again. >> yeah, but bottom line, you think this -- this whole sector can do well, even if there's profit-taking in moderna and the other vaccine names because they are big components >> definitely. i mean, that's been -- that's been the sort of -- the shakeiest ground in this entire index has been the vaccine stocks and a their weightings and how to look at sort of the xbi components, you know, i respective of what's happening in the vaccine landscape, and i feel like once all these stocks
rebase, moderna and novavax and come in a little bit as well as other high fliers, we've seen massive moves in oncology as of late, doubles, triples, even more so over a very, very short period of time, i think they will also come in. we've been talking about maybe a little bit more bias towards value-oriented biotech companies for the first time in a while post the alexion deal so i think all of these, are you know, more bullish signals than not as we head into next year. >> yeah. it's fascinating it and a good reminder of what else has been going on in the biotech space. certainly putting the tech into it from a trading point of view in the perform a. jared, thanks for your time. appreciate it. >> jarred holtz of jeffries. one state accusing robinhood of gamefying the market and manipulating customers those details coming up. first, check out this mystery chart. it's flying high, speaking of deals, on a deal of its own
today. we'll reveal who it is in stocks to watch next. i have an idea for a trade. oh yeah, you going to place it? not until i'm sure. why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator.
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driver's seat. tech up half a percent and consumer discretionary a third of a percent and industrials and materials on the flip side are lagging. here are some of the movers this hour shares of tilray are lower the cannabis companies will combine in an all-stock deal to create the biggest cannabis producer and aphria will hold 50% of the company. twitter neutral on expectations of a jump in online advertise something and shares of chipotle, 52-week highs today, up 5% on an upgrade to buy. they are pointing to resilience during the pandemic and said brand is el with-positioned to increase from customer mobility in 2021 and have a $1,500 price target at chipotle up five bucks to 14.12 let's get to sue herrera for a
cnbc news update. in paris 14 people have been found guilty for their parts in the 2015 attacks against the "charlie hebdo" newspaper and a kosher supermarket the sentences ranged as high as 30 years. also in paris, a former vatican ambassador to france has been convicted of sexual assault. the 76-year-old ventura was given an eight-month suspended sentence for sexually assaulting five men between 2018 and 2019. back other at home in new jersey, a food line stretching for more than two miles, volunteers and ymca staff load each vehicle with 40 meals at this location alone, they are giving away 200,000 meals per month. that is nearly triple what they gave away during the summer. and the s.e.c. is easing reporting requirements on payments by oil and mining companies to foreign governments. the move addresses a
controversial part of the dodd/frank act that was supposed to make it easier to spot corruption you are up to date that's the news update, kell i'll send it back to you. >> sue, did they say where that food line in jersey was? >> you know, there are several of them. this particular one is more towards central jersey it's a smaller town, but it's a part of new jersey that has been hit very, very hard with layoffs, you know. people have lost their jobs. >> yeah. >> and it has gotten worse since the summer, so, unfortunately, is they are giving out basically more meals. >> like getting in the car and cleaning out the pantry. two miles long, triple what it was this summer is a horrifying sight. appreciate it. >> you got it. >> coming up, exxon gets more love on the street, bitcoin bursts through 20,000 and wish goes public without the ipo pop and how about a spac for a person that's all coming up on "exchange. don't go anywhere. i think financial illiteracy and inclusion is
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headlines we welcome michael santoli, seema mody and bob pisani first up is the tide turning for exxon? goldman upgraded exxon mobil today to a buy and is raising its price target from 52 to 42 setting the firm's bullishness on crude that you heard here on monday and it's the second upgrade in as many days. yesterday wells fargo raised exxon to overweight saying it's, quote, the most eyebrow-raising ratings change, an overweight but exxon is already up 20%, my, over the past 20 months. >> yeah. the market has prompted some of this re-evaluation of whether in fact the worst was priceded in a couple months ago and now we can price in higher volumes in terms of fuel consumption and then we see is the higher prize. it's very unclear as to whether in fact this is going to be a long-term renaissance for exxon. still questions around the dividend policy and all the rest of it and just on any long-term basis it looks like the pendulum is swinging back in a mean reversion way in favor of energy
for a little while and probably will continue to be a reprieve for this group. >> bob >> yeah. that's why i would say -- i agree with mike. it's about mean reversion. that's why i don't think this is such a bold cold they talked about ulti-year underperformance this stock is down 40% in the last ten years, one of the worst performers in history, at least 40%. i think it was $70 ten years ago. it's $40 think about this now in ten years it goes from $70 to $40. that's pretty outrageous how many companies do you know that have almost exclusively sell or hold by the entire analyst community? that's what exxon does right now? wells fargo and goldman, that's why i'm saying it's not that bold a call overall, and the only reason the stock has been rallying is because they cut cap "x" in 2021 to protect dividend. a good reason for the stock to real but just bear in mind what's going on here we're talking from a very low pace. >> yeah, maybe a good reason to rally in the near term doesn't look that great. longer term, seema and then they have the headwinds of
disinvestment in the space over the next, you know, forever, whereas people just don't want exposure but that's partly why there's a bull call. jeff curry, the goldman commodity strategist on earlier this week says it's like a multi-year run and disinvestment is one reason. also in general there's more demand than supply right now >> could be, and it's also interesting the timing of this goldman call, kelly, right as president biden coming in january, he certainly made clear his prioritization of clean energy policy, so you wonder how that will work into the thesis that exxon mobil, despite that will continue to thrive. you know what this call also reminded me of, rex tillerson, where did he go? he was secretary of state of one year from to 17 to 2018 and prior to that he led exxon mobil for ten years. i wonder what he's up to these days >> that seems like so long ago it really does if you told me that was 15 years ago i who believe you.
if you want more analysis on goldman's upgrade on exxon go over to cnbc.com/pro and they have more on that. bitcoin finally broke above 20,000 that level has been eyed by buyers of the cryptocurrency ever since late 2017 we're well above 20k right now up 6%, 7% on the session, and, again, over the last 24 hours. the thing never stopstrading the excitement has even caused major cryptocurrency coin base to suffer connectivity problems and network congestion seema any reason for this kind of particular 24-hour move >> well, i think look at bitcoin purely through the lens of that price chart can sometimes be a little less still late, but when you look at it in the context of other things that are happening, whether it's the u.s. dollar which has declined about 11.5% since mid-march and the expectation that it will continue to depreciate into 2021 and also this idea of inflation moving only higher into the next year and what that could mean for investors, their desire to continue to diversify their
assets beyond equities and even gold and perhaps there is a case there, but no real signal this time around. jerome powell in the past has mentioned cryptocurrencies it will be interesting to see if it comes up in today's fed meeting. kelly? >> and, bob, i'm looking at all the big money that's pouring in, so you've got the uk fund manager that's put $750 billion into bitcoin all following mass mutual last week did 100 million. widely seen as kind of the sort of the tip of the sphere for institutional investors to all do the same thing. if you've got everybody putting half a percent of their portfolio into bitcoin, jpmorgan says that's $300 billion that could go into it. >> right there's still not a lot of money there and a lot of move to move up why has bitcoin been moving? look at the chart. put the chart up again started moving in october. that's when paypal and square started talking about buying bitcoin for their money transferring services. okay so that answers one question what is bitcoin, a means of payment? everybody said, no, it moves around too much and when you
have companies like that yeah, maybe it's becoming more of a means of payment potentially. what about as a storfer value. that's another purpose for money. well, you've got people, stanley druckenmiller, pull tudor jones, bill miller starting to say positive things. that helps people believe that maybe there is a store value associated with it so it makes had a little bit of accepts. you want to see an ultimate move here it's a new closed end fund that just started around cryptocurrency the bit-wise index fund tracks the index of the largest bitcoin currencies this is a closed end fund. it's not an etf. it's trading a huge premium to its net asset value. people should know that but it's a sign of a huge end when you get a closed-end fund trading at a gigantic premium, that's an indication of a lot of demand. >> oh, yeah. often buy them at a discount michael, last word here? >> one thing to add, it just
caught the same gust of speculative forces that has been pushing up a lot of different assets and gotten people excited about digital money as a concept and it's happening in the absence of real world transactions or even technological use of the block chain. it's created a specialtive asset class and it's been working as one and we've been asking for years why anyone wants to put money in gold and that's the same kind of question that you have to ask about bitcoin. >> if you think bitcoin is speculative. wait until you hear hour next store to we'll do wish first and then spac. >> the commerce firm which does business as wish started trading today on the nasdaq. this is a different story from the ipo, the airbnb, the doordash, this one is priced at 24 which was the on the top end of its range from 22 to 24, a trend we're familiar, but instead of popping today, the stock opened below that price and is down i'll call it 13%, so curious real quickly, bob, i mean, what does this tell you?
is it specific to this company being lesser known people just kind of staying, look, i already got my hits with airbnb and doordash, i'm going home now what do you think? >> there may be some company-specific and just general exhaustion on the ipo space. remember, an enormous amount of money was spent buying doordash and arab birbnb recently and gin all the publicity around airbnb it's sucked up the oxygen in other weeks. i'll tell you what's important about this, kell de. this is the 20th big i'm yost year the 20th unicorn evaluation, float of initials over $11 billion. never had a year with 20 unicorns in fact, last year there were only nine so look at some of these names here these are the big ones, airbnb, the amount they raised initially. doordash, you can see all these numbers here h.snowflake, warner music and it goes on and on. rocket and unity software, 20. i mean, it's crazy
if you would have told me in the beginning of april that this would be the second biggest year ever for ipo, i would have told you you're crazy, but it is. if you look at numbers here, we'll raise $78 billion this year in ipos so facts and circumstances the record was 2014, it was 85 billion. that was the alibaba year, to 14. >> wow. >> look how close we are this is crazy. seriously, kelly, in april, would you have ever thought we'd have the second biggest ipo year i would have said you were nuts. >> never if you told meet nasdaq would be up 40% on the year i would have said you're crazy. if you told meet market would recover its march loss, i would have said no way it's one of many things that has surprised everybody about this year and all i know about wish is i saw them on an nba jersey patch. i don't even remember what team it was on so maybe it's a little bit of lack of retail familiarity with that one but speaking of everything that bob was just discussing, not just the ipo market that's hot but the spac space if you combine those two proceeds that's where we'll getting records and the prolific
record-maker aria bergoff what is talking about this boom if you thought it was crazy before, he said you could start seeing spacs take people public. listen >> it's frothy, it's flush, but there's definitely talk of any athlete or any individual or even the kardashians having an income stream or blond that has cash flow and, you know, 360 models around streaming and other forms of brand and merchandising and e-commerce, it's not just an individual that's walking in the street it's an individual that has a business plan around it that has a brand and that business plan can go public. >> what do you think, mike, kardashian spac? >> it would sell there's a scarcity of cash flows not necessarily correlated with the rest market. several years ago we saw some attempt in this market remember fantex, an exchange
would let you buy the future income stream of athletes, arian foster of the houston texans was one that did it, so this is not a unique idea, but i do think that things have gotten to a certain scale and liquidity is such and people's reseptembertivity to new ideas is at a certain point and why not. >> seema, agree. seen this story before the fantek one that mike brings us, never goes anywhere. i don't think we'll see people what do you think? >> i don't know. tiktok and instagram have clearly demonstrated that certain influencers can bring in a lot of money and monetize their own brand. i guess the question is ultimately whether they will be investor appetite. i could imagine a scenario where you tell robinhood traders you can buy kim kardashian stock or spac and you see a flurry to that remains to be seen what happens from here. >> last word, mr. pisani >> think about what a spac is. i always say it's basically trust me, i'm famous and i'm going to be the responson of your spac. i'm a famous name.
you know me. why can't you have intellectual property why can't individuals represent essentially what the brand is and what they are selling and have that go public? think it's going to happen in 2021 there's a bold call for you, kell been the kardashians have an accounting problem you want stable, reliable, consistent cash flows, right does anyone guarantee that >> look, bowie did it. he sold his. bob dylan essentially monetized himself just recently. >> you have to attach it to a defined set of rights or licenses that you can actually keep analyzing as opposed to, you know, whatever kim decides to do next year. >> right, exactly. we'll leave it there, everybody. mike santoli, seema mody and bob pisani joining us for "rapid fire" today. still ahead, we're a little less than 20 minutes away from the fed's last decision on interest rates in what has been a wild and you precedented year. bring that to you right at 2:00 p.m. eastern, but first
telehealth stocks are tanking as one tech giant may be looking to e deilar the space thtas e next on "the exchange." good to know. like where to find the cheapest gas in town and which supermarket gives you the most bang for your buck. something else that's good to know? if you have medicare and medicaid you may be able to get more healthcare benefits through a humana medicare advantage plan. call the number on your screen now and speak to a licensed humana sales agent to see if you qualify. learn about plans that could give you more healthcare benefits than you have today. depending on the plan you choose, you could have your doctor, hospital and prescription drug coverage in one convenient plan. from humana, a company with nearly 60 years of experience in the healthcare industry. you'll have lots of doctors and specialists to choose from. and, if you have medicare and medicaid, a humana plan may give you other important benefits. depending on where you live, they could
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humana, a more human way to healthcare. welcome back to "the exchange." telehealth stocks are sinking today on a report that amon is taking another step into offering its own health service. bertha coombs joins us now with the latest bertha >> reporter: kelly, it's no secret that amazon has set its sights on health care and now the giant is looking to expand its employee amazon care this is a telehealth program that they had launched last year now they are looking to launch it for other employers amazon care is this virtual care program that includes home visit. they launch it had for their employees in seattle about a year ago "business insider" reporting it has been reaching out to other employers about offering the plan now, officials at zillow confirm to cnbc that they did talk to amazon about this, but at the
moment they are not going to move forward and that's where that stayed. nonetheless, the news hitting telehealth firms like teledoc and amwell hard. they have targeted employers and health systems to provide similar primary care services. one competitor in the space went public this year also would be a potential competitor good rx is also lower after today expanding its services beyond pharmacy discounts to offer members virtual doctor visits amazon recently launched its own pharmacy as we know for its prime members. that includes a discount program, but that came after three years of acquiring pill pack it takes a while to build these things up and it could also take time to establish virtual care service. you know, obviously covid has made both providers and patients much more willing to use this service, but at this point it's still very early and very
competitive. a spokesperson for amazon says they don't comment on speculation but she added amazon care is a health care benefit pilot for amazon employees right now in the state of washington kelly? >> and bertha, i didn't catch that until you mentioned it, that goodrx has now launched telehealth it's surprising to me. i don't know if it was expected. >> it's one of those things where all of these firms are trying to expand beyond just doing the one doctor visit, so for goodrx it makes sense to move into this space because oftentimes when people are looking for a lower cost alternative one of the things is to have access to telehealth, but people no longer want just a one and done sort of urgent care telehealth call forks you know, when your kid has an ear ache and might have an ear infection. to be able to have a bit more of a relationship so that when you call you're not just talking to a doctor who is a stranger
someone who knows your track record that is the holy grail right now. amazon is looking, it seems, to try to offer that in that amazon way for other employers. >> yeah. the. >> it's fascinating. bertha, thanks for bringing that to us. our bertha coombs as we watch those stocks under pressure today. coming up, massachusetts filing suit against robinhood alleging it manipulated customers and used aggressive tactics to attractotti penal visitors >> you can always watch us live on the cnbc news on the go app we're back in a couple (upbeat music)
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welcome back massachusetts regulators have filed a complaint against robin hood, accusing the popular trading app of failing to act in the best interest of its users kate rooney has more for us. >> massachusetts regulators are accusing robin hood of what they call aggressive tactics in marketing inexperienced investors using gami fiction
the state highlight's robin hood payment for order flow it says it drives that startup to offer trading to new investors without properly screening them in one example robin hood all allowed a massachusetts user with month experience to make more than 12,000 trades in just six months regulators also important to incentives like confetti popping up on screens after trades and offers for robin hood customers who are more active on that app to move up on wait lists for new products this was the first enforcement was a massachusetts fiduciary rule which they started enforcing in november. galvin told cnbc that robin hood was too focused on growth at whatever cost. >> it's very clear this is a reckless company when it comes to these customers they're interested in expanding their market base. not in servicing their investors. >> robin hood plans to defend the company vigorously they worked to scale up those
systems after outages. they say they made improvements to option products and added more safeguards. kelly? >> yeah, it seems like the first of a wave that could be coming from different states and people directed in robin hood's way kate, thanks. that does it for "the exchange." we're moments away from the fed's latest rate decision lemais fn tyr thenor "power lunch." digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work.
welcome to "power lunch. i'm tyler mathisen let's start you off with a check of the markets as we await the final decision of 2020 from the federal reserve in what has been, by all measures, an historic year stocks are hovering near record highs. the nasdaq hitting one today and the russell turning slightly light per mona is senior investment strategy with alio in and john bellows from western asset management david kelley is the chief global strategist at jpmorgan asset management a lot of asset managers here, so let's talk about what the fed
may do david, i don't expect you expect them to say anything other than rather dovish, benign things, but the more benign they speak and the more benign they act, what are they setting us up in the future >> i think event lip there's going to be a tightening here. i think for the moment the fed's going to express concern about the worsening pandemic, that vaccines express optism they'll get us out of it but in their view, they don't have to rush this yes, eventually there will be problems down the road but as far as the pandemic is raging they'll keep monetary policy as easy as can be. >> john bellows, what do you expect them to say or do >> i think the direction is the same as what david said. they'll be accommodative for a long time, the balance sheet and continue to buy bonds throughout next year, potentially longer
and the commitment will be to be there during the recovery, to make sure the u.s. economy gets back on track after the pandemic it's not clear they can do all that the next few months but they're very focused on being there for the recovery and i think that's going to continue to be the message today. >> mona, low rates, maybe a lower dollar what does it mean for american equities >> yeah, absolutely. i think generally we feel like the backdrop for 2021 looks okay for equities if rates remain low, if we get this reacceleration in growth we expect after the vaccines truly roll out, and now if we get additional stimulus, not only from covid relief but perhaps fiscal spending from the next administration as well of course, they'll be watching for inflationary pressures, especially toward the second half of the year which may prompt action or dialogue from the fed as well. >> david, what are you looking for as we look in 25 seconds,
for the economy to do in the first quarter? >> i think it will slow down, maybe 1% growth, and it will reaccelerate the second half of the year. >> folks, we'll take a pause as we await the 2:00 hour and the release of the fed decision here as we look at the s&p, the nasdaq was at record territory let's go to steve liesman now. >> thanks very much. the federal reserve leaving rates unchanged at zero to 0.25% and continuing to project zero rates through 2023 i can give you a little detail on that. only one fed official projects a rate hike in 2022. five forecast rate hikes at 2023 bottom line, very few are predicting anything to happen through 2023 it's leaving the long-run funds rate at 2.5% it sees a somewhat better economy,
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